It was what the studio was geared to it was in fact their bread and butter kept their studio afloat barely until James Whale started going behind schedule on Show Boat and John Stahl spent a fortune too bad Show Boat did not save the Leammle's and Whale and Leammle Jr wound up forgotten
Stahl's deal with Universal made him practically his own boss and he answered to no one. Universal's real issue at the time was that Junior was spending too much time and money chasing the first run market (they had no theaters) and that strategy took too long to pay off. Show Boat was a hit but it came too late, the Laemmle's were already gone and the short lived Robert Cochrane/Charles Rodgers regime (which followed) got the credit, as much good as it did them. They themselves were out by 1938 with the discovery of Deanna Durbin being the one remnant of their time there about which they could be proud.