Yes, that’s Little Orphan Annie in blackface. On the left is Pee Wee, her elephant pal from her adventures in the circus; Sandy on the right, of course; and just visible is the “native” hut where Annie lives from 26 November to 20 December 1935. That’s a panel from the Sunday strip on 1 December. Here’s two panels from the daily for 10 December:
Context: Annie is living on a film set. She thinks she’s merely an extra; unbeknownst to her, her every action is being filmed for a fictional film about the life of a jungle princess. The footage of her antics is “great stuff”, “going to make a corking picture”, “marvelous”, “a sensation”…and, indeed, once the film is released, it’s “a smash hit” and “a riot”, with audiences “going wild”. Once again, Annie reveals herself a showbiz natural — as well as her turn in the circus, she has already been a music hall sensation with her renditions of sentimental standards.
She adopts a stage name for the release of the film. That name?
But, you know, different times, everyone was racist back then, the strip also has some positive portrayals of non-whites, etc. etc. etc.
Anyway, it’s okay because she has a good reason for donning blackface and calling herself Inkey. It’s so she can hide from hatchet-wielding Chinamen who want to murder her.
(detail from 16 September 1935)
Also, I’m fairly sure that that’s not what happens when you have unregulated monopoly pricing:
(detail from 15 June 1935)
UNRELATED POST-SCRIPT: This will be cryptic right now, but a propos something else entirely I predict that someone will accuse it of tending to political conservatism, pretty early on in the thread. Let’s say within ten comments (assuming it gets that far!).