1st Animated Story

Fantasmagorie (1908) - Emile Cohl

Fantasmagorie, by Émile Cohl, is considered to be the first animated story in film. Though "Humorous Phases of Funny Faces" by J. Stuart Blackton pre-dates "Fantasmagorie" by 2 years, it did not serve as a narrative other than simply showing various facial expressions via the technique of hand-drawn animation.

http://www.imdb.com/title/tt0000682/