Page "Warner Bros." Paragraph 28

In 1933, relief for the studio came after Franklin D. Roosevelt became president and was able to stimulate the economy with the New Deal ; because of this economic rebound, Warner Bros. again became profitable.

The same year, longtime head producer Darryl F. Zanuck quit.

One reason was Harry Warner's relationship with Zanuck had become strained after Harry strongly opposed allowing Zanuck's film Baby Face to step outside Hays Code boundaries.

Also, the studio reduced Zanuck's salary as a result of the losses as a result of the Great Depression, and Harry continued to refuse to restore it in the wake of the New Deal's rebound.

Zanuck resigned and established his own company.

In the wake of Zanuck's resignation, Harry Warner agreed to again raise the salary for studio employees.