In January 1920, Disney and Iwerks well-formed a short-lived company called, "Iwerks-Disney Commercial Artists". However, following a rough start, Disney left temporarily to earn money at the Kansas City Film Ad Company. He was soon joined by Iwerks, who was not able to run their business alone. [34] While working for the company, where he made commercials based on cutout animation, Disney became interested in animation and decided to become an animator. [35] The owner of the Ad Company, A.V. Cauger, allowed him to borrow a camera from work to experiment with at home. After reading the Edwin g. Lutz book Animated Cartoons: How They Are Made, Their Origin and Development, Disney considered cel animation to be much more promising than the cutout animation he was doing for Cauger. He eventually decided to open his own animation business and recruited a fellow co-worker at the Ad Company, Fred Harman, as his first employee. [36] Disney and Harman then started creating cartoons called Laugh-O-Grams. [37] Disney studied Aesop's Fables as a model. The first six of the new Laugh-O-Grams were modernized fairy tales. [38] They screened their cartoons at a local theater owned by Frank Newman, who was one of the most popular "showmen" in Kansas City. [37]Laugh-O-Gram StudioMain article: Laugh-O-Gram StudioFile: Newman Laugh-O-Grams (1921). webmNewman Laugh-O-Grams (1921)Presented as "Newman Laugh-O-Grams", [37] Disney's cartoons became widely popular in the Kansas City area. [39] Through their success, he was able to acquire his own studio, also called Laugh-O-Grams, [40] for which he hired a number of additional animators, including Fred Harman's brother Hugh Harman, Rudolf Ising, and his close friend friend Ubbe Iwerks. [41] It was opened on May 18, 1922. [42] However, the studio profits were insufficient to cover the high salaries paid to employees. Unable to successfully manage money, [43] Disney's studio became loaded with debt and wound up bankrupt, [43] [44] whereupon he decided to set up a studio in the movie industry's capi
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