page_title: Universal Pictures
section_title: The Laemmles lose control
hierarchical_section_title: Universal Pictures / History / The Laemmles lose control
caption_attribution_description: English: Promotional still from the 1939 film, Destry Rides Again
context_page_description: Universal Pictures is an American film studio owned by Comcast through the NBCUniversal Film and Entertainment division of its wholly owned subsidiary NBCUniversal.
  Founded in 1912 by Carl Laemmle, Mark Dintenfass, Charles O. Baumann, Adam Kessel, Pat Powers, William Swanson, David Horsley, Robert H. Cochrane, and Jules Brulatour, it is the oldest surviving film studio in the United States; the world's fifth oldest after Gaumont, Pathé, Titanus, and Nordisk Film; and the oldest member of Hollywood's "Big Five" studios in terms of the overall film market. Its studios are located in Universal City, California, and its corporate offices are located in New York City.
  Universal Pictures is a member of the Motion Picture Association, and was one of the "Little Three" majors during Hollywood's golden age.
context_section_description: Universal's forays into high-quality production spelled the end of the Laemmle era at the studio. Taking on the task of modernizing and upgrading a film conglomerate in the depths of the depression was risky, and for a time Universal slipped into receivership. The theater chain was scrapped, but Carl, Jr. held fast to distribution, studio and production operations.
  The end for the Laemmles came with a lavish version of Show Boat (1936), a remake of its earlier 1929 part-talkie production, and produced as a high-quality, big-budget film rather than as a B-picture. The new film featured several stars from the Broadway stage version, which began production in late 1935, and unlike the 1929 film was based on the Broadway musical rather than the novel. Carl, Jr.'s spending habits alarmed company stockholders. They would not allow production to start on Show Boat unless the Laemmles obtained a loan. Universal was forced to seek a $750,000 production loan from the Standard Capital Corporation, pledging the Laemmle family's controlling interest in Universal as collateral. It was the first time Universal had borrowed money for a production in its 26-year history. The production went $300,000 over budget; Standard called in the loan, cash-strapped Universal could not pay, Standard foreclosed and seized control of the studio on April 2, 1936.
  Although Universal's 1936 Show Boat (released a little over a month later) became a critical and financial success, it was not enough to save the Laemmles' involvement with the studio. They were unceremoniously removed from the company they had founded. Because the Laemmles personally oversaw production, Show Boat was released (despite the takeover) with Carl Laemmle and Carl Laemmle Jr.'s names on the credits and in the advertising campaign of the film. Standard Capital's J. Cheever Cowdin had taken over as president and chairman of the board of directors, and instituted severe cuts in production budgets. Gone were the big ambitions, and though Universal had a few big names under contract, those it had been cultivating, like William Wyler and Margaret Sullavan, left.
  Meanwhile, producer Joe Pasternak, who had been successfully producing light musicals with young sopranos for Universal's German subsidiary, repeated his formula in America. Teenage singer Deanna Durbin starred in Pasternak's first American film, Three Smart Girls (1936). The film was a box-office hit and reputedly resolved the studio's financial problems. The success of the film led Universal to offer her a contract, which for the first five years of her career produced her most successful pictures.
  When Pasternak stopped producing Durbin's pictures, and she outgrew her screen persona and pursued more dramatic roles, the studio signed 13-year-old Gloria Jean for her own series of Pasternak musicals from 1939; she went on to star with Bing Crosby, W. C. Fields, and Donald O'Connor. A popular Universal film of the late 1930s was Destry Rides Again (1939), starring James Stewart as Destry and Marlene Dietrich in her comeback role after leaving Paramount.
  By the early 1940s, the company was concentrating on lower-budget productions that were the company's main staple: westerns, melodramas, serials and sequels to the studio's horror pictures, the latter now solely B pictures. The studio fostered many series: The Dead End Kids and Little Tough Guys action features and serials (1938–43); the comic adventures of infant Baby Sandy (1938–41); comedies with Hugh Herbert (1938–42) and The Ritz Brothers (1940–43); musicals with Robert Paige, Jane Frazee, The Andrews Sisters, and The Merry Macs (1938–45); and westerns with Tom Mix (1932–33), Buck Jones (1933–36), Bob Baker (1938–39), Johnny Mack Brown (1938–43); Rod Cameron (1944–45), and Kirby Grant (1946–47).
  Universal could seldom afford its own stable of stars, and often borrowed talent from other studios, or hired freelance actors. In addition to Stewart and Dietrich, Margaret Sullavan, and Bing Crosby were two of the major names that made a couple of pictures for Universal during this p
caption: James Stewart and Marlene Dietrich in Destry Rides Again (1939)
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