Yep, this is ~3 minute segment from Alice Wins the Derby. I might be going out of order, but to address some of the things that were brought up:
-Winkler owned many of the Alice films, and then the Weiss Brothers got ahold of some of them for 1929-1930 sound reissues, including Derby. I'm not sure of the exact association but Raytone might have been a Weiss company, or a company they contracted with.
-It looks like Novelty had an agreement with Raytone and/or Weiss to issue these in 8mm and 16mm for the toy film market. They sold 25ft, 50ft, 100ft, and 200ft length versions of the films in 16mm, and half those lengths for 8mm format. "Toy films" were almost always silent prints, whether the original subjects were silent or sound films. Weiss then began selling 8mm and 16mm prints of the Alices they had (both silent and sound prints; some people only had silent projectors and only needed silent prints, or wanted to spend less by buying/renting silent prints) in the late 40s and 50s.
-Thankfully, issuing them on DVD isn't illegal or 'unauthorized'...Disney never owned the copyrights to them, even if they retained prints for their own archives and use whichever of the films they still have copies of today. Winkler never copyrighted them in the first place, so there is no entity that needs to authorize their use.
-Until the 60s or 70s, *no one* cared about anyone's early films, especially cartoons, Disney or not...even many of the animators who started out in the early days didn't want to talk about their crude first films. It was seen as a miracle that any further money could be made off them after sound came to be, so films like this were given any sort of treatment under the sun to try and make a buck off them, if they were even kept at all. The way we care about these films, or even just have a passing curiosity about their history or importance, is a modern phenomenon.
-These "toy film" or "home movie" prints aren't worth more than $15-25 (give or take) depending on subject matter and condition...wish you would have been able to get it for quite a bit less than $49!