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In the 1920s, the American Legion formed a baseball program for teen-age boys that exists today. American schools also started baseball programs. But there was still a void for pre-teen boys who wanted to play in organized games. Other smaller programs cropped up from time to time, but did not catch on beyond local areas.

In 1938, a man named Carl Stotz hit upon the idea for an organized baseball league for the boys in his hometown of Williamsport, Pennsylvania. Carl had no sons of his own, but he often played ball with his young nephews, Jimmy and Major Gehron, and wanted a way to provide an organized program for them.

Carl gathered several of the neighborhood children and experimented with different types of equipment and different field dimensions during that summer. The program still did not have a name, and no games were played.

In 1939, Carl and his wife Grayce took the experiment a step further, enlisting the help of brothers George and Bert Bebble and their wives, Annabelle and Eloise, respectively. Carl, George and Bert were the managers of the first three teams: Lycoming Dairy, Lundy Lumber and Jumbo Pretzel. John and Peggy Lindemuth soon joined the group, with the eight volunteers making up the very first Little League board of directors.

Carl also talked to his friends in the community and came up with the name: Little League. His idea was to provide a wholesome program of baseball for the boys of Williamsport, as a way to teach them the ideals of sportsmanship, fair play and teamwork.

http://www.littleleague.org/learn/about/historyandmission.htm

http://en.wikipedia.org/wiki/Little_League_Baseball