Who Constructed the First Toy Cear Called the Teddy Bear?

Well there are several stories-
In the 1900s in the United States, President Theodore Roosevelt was becoming
acknowledged as a champion of the natural wonders and wildlife of America. While on a diplomatic mission to adjudicate the disputed boundary between the states of Louisiana and Mississippi, he went hunting for the brown bear famous in the area, but the bears eluded him. His hosts didn't want to disappoint the President, so they seized a bear for him. But the prisoner was only a cub, and the President would not harm a creature who had not been fairly hunted. A political cartoonist named Clifford Berryman drew a depiction of the bespectacled President and the fluffy, sweet-faced bear he had declined to shoot, and the cartoon appeared in papers on November 16, 1902.

Michtom possessed a small novelty and confectionery in Brooklyn, New York. His wife Rose was creating toy bears available in their store. Michtom sent President Roosevelt a bear and asked permission from President Theodore Roosevelt to call these toy bears "Teddy's bears". Roosevelt agreed. Michtom and a company known as Butler Brothers, started to mass-produce the teddy bear. Inside a year Michtom jumped off with his own company known as the Ideal Novelty and Toy Company. Morris Michtom made the first authorised toy bear called the teddy bear.

America went bear mad just about overnight, the Michtoms went on to make their fortune with the Ideal Novelty and Toy Company and President Roosevelt had found a highly effective political mascot.

Curiously, the Michtom's bears, later known as Morris bears, looked much like those of Margarete Steiff with button eyes, embroidered mouths and noses, articulated joints that allowed limbs and heads to move, cloth soles, and felt claws.
 

In 1903 in Giengen, Germany, Margarete Steiff made toy animals out of felt in a small factory owned by her family. An malady had left Margaret Steiff not able to walk. She declined to be stopped by her handicap and earned her living by sewing. First she constructed stuffed elephants, then other animals. Her nephew, Richard Stieff, encouraged her to make a bear based on his sketches following a visit to the Stuttgart Zoo.

She started with a soft toy factory in Giengen, had added a soft plush bear to the Steiff catalogue and sold 3,000 to America in 1903. Between 1903 and the First World War Steiff sold literally millions of bears, with their trademark button in the left ear, to the United States, Germany and Britain, as the teddy bear overtook the diabolo as the latest toy craze.

Margarete was afraid a toy bear would be too fearsome, so she softened the bear's snout into a friendly, pert nose and gave him a slightly humped back like a real bear. She cut a pattern out of brown mohair pile fabric and created a bear whose head, arms, and legs were jointed so they could move independently and so the bear could sit or stand. The toy was stuffed with excelsior (wood shavings used as packing material), and he had shoe-button eyes and an embroidered nose and other features.

At a toy show in Leipzig, Germany, Richard displayed the bear, which caught the attention of an American toy buyer who ordered 3,000 bears. Steiff bears in many variations from Margarete's original have been created in the Steiff factory in Germany ever since, where thousands are now produced every day.