Thomas Edison

Thomas Edison ran a film labratory where the kinetographic camera and kinetoscope were invented. He developed the 35mm film strip that came to be the industry standard. He also eventually developed the projector to play.

The Lumiere Brothers

The Lumiere Brothers shot the film
'Sortie d'usine'.

Edison worked with The Lumiere Brothers and produced short films that were once long, static, locked-down shot. Motion in the shot was all that was necessary to amuse an audience so the first films simply showed activity such as traffic moving on a city street. This can be in the film 'Sortie d'usine' (1895) by The lumiere Brothers.

Sortie d'usine - ( http://www.youtube.com/watch?v=EXhtq01E6JI )

initially there was no story and no editing. Each film ran as long as there was film in the camera. An example of which is; 'The Miller and The Sweep' (1895) by G.A. Smith. 

The Miller and The Sweep - ( http://www.youtube.com/watch?v=WO6M5Axalkc )

The magician was the first
person to think of
in-camera editing.

George Melies

George Melies was a magician who had seen the films the films that made by The Lumiere Brothers. Melies saw at once the possibilities of a novelty more than just motion itself. He acquired a camera built a studio wrote scripts, designed sets and soon he discovered and exploited the basic camera tricks we all know today. In 1886 he made 'The Vanishing Lady' using a technique known as in-camera editing.

The Vanishing Lady - ( http://www.youtube.com/watch?v=f7-x93QagJU )

G.A. Smith

In 1899 G.A. Smith made 'A Kiss in The Tunnel'. This film is said to mark the beginnings of narrative editing (creating a story). Smith felt that 'some extra spice was called for' in the then popular 'Phantom Ride' genre. He took advantage of the brief onset of darkness as they went into a tunnel to splice (cut and then stick two pieces of film together) in the shot of the couple.

A Kiss in The Tunnel - ( http://www.youtube.com/watch?v=91jwTCcXW2Y )