In 1921,
Walt Disney was contracted by Milton Feld to animate twelve cartoons, which he called Newman's Laugh-O-Grams. On May 23, 1922, when Disney was 20 years old, Laugh-O-Gram Films (LOGF) was incorporated by him using the remaining assets of the defunct Iwerks-Disney Commercial Artists from local investors. LOGF produced nine of the requested 12 films with little income. Encouraged and inspired by his shorts' popularity at the theatre, Disney decided he wanted to make his own animated versions of fairy tales too, and invested six months on his first attempt at
Little Red Riding Hood. Disney's employees on the series included several pioneers of animation:
Ub Iwerks,
Hugh Harman,
Friz Freleng, and
Carman Maxwell. The company had financial problems and by the end of 1922, Disney was living in the office and bathing weekly at
Union Station. During the studio's sales manager Leslie Mace's stay in New York, where he was looking for distributors, he ended up signing a contract for six animated shorts with Pictorial Clubs, Inc. of Tennessee on Sunday, September 16, 1922. Pictorial agreed to pay for the cartoons, which were supposed to be shown at schools and other non-theatrical places, but only paid $100 in advance. The rest of the payment would have to wait until January 1, 1924, when all the shorts had been delivered. When Pictorial went bankrupt only a few months later, the studio never received the rest of the payment, its financial problems became even more serious, and the staff ended up leaving. When the local Kansas City dentist Thomas B. McCrum, from the Deener Dental Institute, contacted Disney and offered him the job of producing a short subject about dental hygiene intended for the Missouri school system, he brought together some of his staff again and made ''Tommy Tucker's Tooth
, which earned the studio $500. Instead of paying off his creditors, the money was invested in the live-action/animation demonstration film Alice's Wonderland, starring the youthful Virginia Davis. Disney had noted how popular the Out of the Inkwell'' series from the
Fleischer Studios was, which had animated characters interacting with the real world. By reversing this gimmick and using a real-life character in a cartoon universe instead, he hoped for a hit. Virginia Davis's contract with Laugh-O-Gram was signed by her parents on April 23, 1923, with terms giving her 5% of the ''Alice's Wonderland'' film's receipts. Looking for a distributor for ''Alice's Wonderland'' on May 14, Disney wrote to
Margaret Winkler, a New York film distributor. After finishing the raw edits of ''Alice's Wonderland
, the studio filed for Chapter 11 bankruptcy in July 1923. Disney finally made some money by shooting a film of a 6-month-old girl named Kathalee Viley and selling his movie camera, earning enough for a one-way train ticket, moving to Hollywood, California; he brought along an unfinished reel of Alice's Wonderland''. The bankruptcy trustee was able to force LOGF's erstwhile distributor and debtor, Pictorial Films, Inc., to pay LOGF's agents the sum owed while agreeing that Pictorial could exercise its contractual distribution rights for LOGF works and to purchase several of LOGF's films:
The Four Musicians of Bremen,
Jack the Giant Killer, the
Lafflets series, and ''Alice's Wonderland''. The studio building fell to ruin and efforts were made to restore it by a non-profit group called "Thank You, Walt Disney". The Disney family promised $450,000 in matching funds for the rights to other Disney memorabilia and to tell the history of Walt Disney's life in Kansas City, a movie house to exhibit original and restored Laugh-O-Grams, and an education center for animation workshops. On July 30, 2021, a black
Dodge Charger struck the building and caused significant damage to the exterior. The incident occurred early in the morning, the driver fleeing the scene, though authorities subsequently found a woman's driving license and a margarita within the vehicle. Butch Rigby, who launched the campaign to save and restore the building, described the incident optimistically: "The bottom line, it's a bump in the road, but it could have been worse". ==Inspiration for Mickey Mouse==