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1936 was a watershed year for Universal Pictures, for two reasons. It was the year in which the founder of the now ailing studios was swept aside, together with his family employees, and replaced by an entirely new management. It was also the year that heralded the arrival of a bright new star whose films were to be instrumental in saving the organization from complete bankruptcy. An immigrant from Germany, Carl Laemmie formed Universal in 1912 and the company flourished throughout the era of silent pictures and into the early days of the talkies. By 1935, with extravagant expenditure on too many prestige productions, some of which turned out to be box-office failures, the company was faced with financial problems. Yet, in spite of this, Laemmie and his family were paying themselves top salaries. Mortgaging all future productions, a substantial loan was sought from the investment company Standard Capital, headed by one Charles Rogers. 'Show Boat' was being filmed at this time, and when production problems and delays necessitated yet more finance, the stock-holders decided they had had enough. In 1936, the whole nepotistic Laemmie regime was forced out and the studios were taken over by the investment company with Rogers himself as head of production. An immediate cut back on budgets, particularly those for major projects, was ordered, which meant there were to be more 'B' pictures. There now enter upon the scene a new Universal signing by the name of Deanna Durbin.

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