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Disney was quite confident when he went to negotiate with Charles Mintz in New York. He wanted his fee to increase from 2250 dollars per short to 2500 dollars per short. Instead Mintz wanted Disney's fee to decrease to 2000 dollars per short. When Disney refused, Mintz had some announcements to make. He didn't need Disney anymore. He had secretly met with a number of Disney's employees including Harman and Ising and had signed them on contracts of their own. As the distributor Universal held the rights to Oswald and they could make their own cartoons with him if they wanted to, Disney returned to his Studio in defeat and along with Ub Iwerks and the remaining employees he started working on a new project to replace Oswald as Disney's star.
This meeting was very important for the history of animation because of its consequences in the long run. It is well known that Disney's next project was Mickey Mouse but there were other developments spawned from the meeting. Charles Mintz wasn't idle either. He continued to provide Universal with Oswald cartoons, produced now in a new Studio under his brother-in-law George Winkler . Thanks to Harman and Ising, now chief animators, the 25 shorts produced till mid- 1929 were of the same quality as those produced by Disney's Studio.
But then Carl Laemmle decided to create an animation department for Universal and hand the rights to Oswald to it. The new Studio would be run by Walter Lantz and would later spawn even more famous characters like Woody Woodpecker. Ozzie of the Circus, released on January 5, 1929 was the first in a long series of shorts produced by Lantz' Studio. As for Mintz and Winkler, their Studio and their careers were over.
But Harman and Ising weren't even started yet. They found employment again creating a partnership with producer Leon Schlesinger. Together they created an animation Studio on behalf of Warner Bros.. The short Sinkin' in the Bathtub, released on April 19, 1930 was the first of a long series of cartoons called Looney Tunes that would spawn more famous characters like Bugs Bunny.
Ironically enough, Oswald, the reason for these developments, has long been obscured by characters later created by the Studios formed as a result of his creation.
Returning to Disney's new project, his company claimed that it was the blowing of a train's whistle that inspired him to create Mickey Mouse. Apparently the whistle blowed "A moooouse! A mooouse!" It seems likely that Mickey evolved from a more pragmatic conversation between Disney and Iwerks. Mickey in fact was little more than a truncation of Oswald, round ears instead of long ones, and so forth.
It has also been said that the name Mickey came from Disney's wife Lillian who disapproved of Disney's choice of Mortimer. The name itself came from an occasion when a young Mickey Rooney walked into Disney's office whilst on a visit; Disney showed Rooney some pictures of Mortimer Mouse (as he was called at the time), and it occurred to him that the name Mickey would have a better ring to it. A tall, strapping Mortimer would appear later in a Disney cartoon attempting to woo Minnie away from Mickey.
He continued this inventive film making with Mickey Mouse. Mickey's first cartoon was Plane Crazy, in a story inspired by Charles Lindbergh. The best-remembered today, however, was the first "talkie" cartoon, Steamboat Willie.
Disney found out that his distributor was stealing from him, so he broke away from them. Lessons learned from this experience would later prompt him to distribute his films with his own distribution company, Buena Vista. But Disney's distributor persuaded Iwerks to leave Disney and work for them. Iwerks owned one third of the Walt Disney Studios. He eventually returned to Disney and worked for him in R & D creating such historic inventions as the multi-plane camera which created three dimensional backgrounds in animated films. But his choice back then to leave the studio and sacrifice his percentage of the company cost him countless millions of dollars. While Iwerks's contribution may be overlooked by most people, among Disney historians his name is as well known as any Disney character.
Mickey's films were successful, but it was in merchandising the studio became truly lucrative. Starting out with Mickey Mouse pencils and then expanding into watches, comics and toys, the Mouse created a true financial empire.
The shorts also had success with their musical scores. The Three Little Pigs was so successful when it was released in theaters that it was actually billed above the features. The title song, composed by Frank Churchill , was a huge popular hit, subsequently covered by other artists like Benny Goodman.
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