Tuesday · November 3, 2026
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American history, reported as it happened
Made for the 250th
1923culture

Walt and Roy Disney start a cartoon studio out of a Hollywood real-estate office

Roy signs on the morning after leaving a tuberculosis ward, betting on his brother's deal with a New York distributor.

On October 16, 1923, Walt Disney and his brother Roy founded the Disney Brothers Cartoon Studio in Hollywood. Roy was recovering from tuberculosis at the Sawtelle Veterans Home when Walt showed up late at night to tell him a New York distributor named Margaret Winkler had agreed to buy a series of short films called the Alice Comedies. Roy agreed to join him and checked out of the hospital the next morning. The two set up shop in the back of a real-estate office on Kingswell Avenue, Roy ran the money and Walt ran the ideas.

Hollywood, California
The American Throughline

A hospital bedside handshake between two brothers became the founding act of the twentieth century's largest entertainment company, built from nothing but a distribution contract and a borrowed back room in Hollywood. The arrangement they settled that night, Roy on the ledgers and Walt on the stories, set the pattern for American studio filmmaking: creative vision backed by disciplined business management.

Did you know
QWhat was Roy Disney's job before the tuberculosis diagnosis sidelined him?

Roy had worked in banking, which is precisely why Walt wanted him in on the deal rather than just a loyal relative to split the work with. Walt needed someone who understood contracts, payroll, and the kind of financial discipline that a twenty-one-year-old artist with one distribution agreement did not yet have. That background shaped the entire structure of the partnership: Roy handled money and management for the rest of his career, while Walt never had to learn it. The arrangement outlasted both men and shaped how the studio split creative and business leadership for generations.

QHow many films did Margaret Winkler's original contract actually commit the Disneys to deliver?

Winkler's deal called for six Alice Comedies outright, with an option to pick up two further series of six episodes each if the first batch sold. That meant the entire studio, at its founding, existed to fulfill an order for exactly six short films, with no guarantee of anything beyond that. Winkler herself had built her reputation distributing Felix the Cat cartoons in New York, and the Alice format, a live-action girl interacting with animated characters, was unproven when she signed off on it. The option clause is what gave Roy and Walt room to grow past that first six-picture commitment.

QWhat happened to Roy's health after he walked out of the veterans home that morning?

Roy's own account of the decision notes that he never suffered another relapse of tuberculosis after leaving the Sawtelle Veterans Home to join Walt's venture. He had been convalescing there for an extended stretch before that late-night visit, and by every measure the disease should have kept him under care far longer. Instead, he walked out the next morning and spent the following decades running one of the largest entertainment companies ever built, logging the long hours that a recovering tuberculosis patient would have been warned against. The relapse never came.

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