What’s playing at the local theatre? Cartoons. Looney Tunes, in fact. Check these posters outside the theatre in “The Film Fan” (1939).
“Valley of the Giants” was a 1938 Warner Bros. release. Apparently the theatre couldn’t book “The Wizard of Oz” but was able to get a print of “Ahs of a Wizard.”
This Porky Pig short was from the Bob Clampett unit. Bob Thomas was Clampett’s background artist, so I suspect he was responsible for the settings (the unit was technically part of the Ray Katz studio, which was considered separate from the main Leon Schlesinger studio, certainly for the purpose of union negotiations).