In 1916, Paramount
set up Artcraft Pictures to primarily handle Mary Pickford Productions.
For some reason, Artcraft didn't utilize the
existing Paramount distribution system and instead developed a
separate system of film exchanges.
By early 1918, Artcraft had 25 exchanges operating
independently of Paramount before Paramount came in and incorporated
them into their exchange system.
Artcraft continued distributing films until 1921.