Ali Baba Goes to Town (1937), 7+

A movie company is doing the Arabian Nights when a hobo enters their camp, falls asleep and dreams he's back in Baghdad as advisor to the Sultan. In a spoof of Rosevelt's New Deal, he ... 
(81 min) Released 1937-10-15
Director: David Butler
Stars: Eddie Cantor, Tony Martin, Roland Young, Gypsy Rose Lee, Raymond Scott and His Quintet, John Carradine, Douglass Dumbrille.
Sammy Lee ... dances staged by; Oscar nom'd for "Swing Is Here to Stay"; Oscars 1938

Genres: Comedy | Fantasy | Musical
http://www.imdb.com/title/tt0028566/

This is the last of the seven Cantor star-vehicles I own, and the highest ranked by IMDb users (they give it an 8, also Palmy Days, which I give 6 despite Charlotte Greenwood as the star and EC absent from the first 4 credits.) This is 1 of 3 of his films that I actually liked, and the best 2 were his only Fantasy genre (he falls asleep and dreams the bulk of the movie). The other Fantasy is Roman Scandals ('33; 7-), which only gets 7.4 IMDb average, and ranks 6th among the seven. (My third 'like' of the Cantor films, Strike Me Pink ('36; 7-) co-started E.Merman, who contributed a lot to my enjoying the film, and is last of the seven for IMDb voters, with average score of 7.)

Here I like that he brings his '30s cultural references and political ideas to the ancient Bagdad society, and I like the opulent royal court where most of the movie exists (the bejeweled costumes look heavy!) The Raymond Scott music is a huge bonus, probably what elevates this to a +.

Tony Martin sports a mustache here; it looks better than clean-shaven; wonder why he didn't adopt it. Gypsy Rose Lee is good as the Sultana, but again doesn't perform, just acts. She only has 2 Soundtrack credits (in '44 and '58), so I wonder if we ever get to see her strut her stuff in a film.

Charles Lane (1905–2007) has a bit part as a Doctor. He has 239 movie credits ('30-'87) and 123 TV credits ('51-'95), which just counts shows, not episodes. If you've watched anything from those decades, you likely know his face.

This movie earned an entry in Appendix B of the book Tap! with the scene at 34:00 (the enveloping scene is the Oscar nom'd Swing Is Here to Stay, which begins at 29:00) with Jeni LeGon and the Peters Sisters tapping (and PS singing). Jeni (in slacks) danced along side Bill Robinson in Hooray for Love ('35) and will appear in a few more films on this quest. The Peters Sisters appeared in With Love and Kisses ('36), the film with Pinky Tomlin and Toby Wing. PS have only 5 American credits (plus 6 European), and right now their other American films are online; one is not a musical.

The Oscar nom is likely for the entire scene, since the musicians move a lot too.

Raymond Scott and His Quintet appear in the acting credits, and twice in the Soundtracks:
Twilight in Turkey (1937) 
Written by Raymond Scott
Performed by Raymond Scott and His Quintet (uncredited),

corrected to include Danced by The Pearl Twins

Beginning at 57:00 we see 6 musicians well-hidden by beards (is RS the one with the finger cymbals?), playing as the Pearl Twins dance.
Arabania (1937) (uncredited)
Music by Harry Revel
Lyrics by Mack Gordon
Performed by Raymond Scott and His Quintet
Danced by The Pearl Twins

OK, this is wrong, because the tune danced by the Pearl Twins is VERY Raymond Scott-y (and no one sang any lyrics). He composed Powerhouse (listed 50 times in his Soundtrack credits, the first was in a '40 live-action Warner musical short; the rest are probably all Warner cartoons). Even if I were only familiar with Powerhouse (and I'm not, I own an album of his), I would recognize (like you recognize Mozart without knowing which piece it is) the music danced by the Pearl Twins as his, and I don't think you get there just from arrangement. Aha! Twilight in Turkey is on the album I have, and that's what the Twins dance; I'll submit a correction; correction was accepted. After the Twins dance, a larger group of dancers performs to a different tune also played by the sextet, and that is more likely to be not his (but it could be). Then in a scene after the harem dancing, when EC is tying up DD, the music sounds Scott-y again. 

Note that this is not a Goldwyn film, as were the prior six.

Fox, dir. Butler; 7+

My post on Oscar, Best Dance Direction, 1936-38