It's not bad (well, not that bad), but the plot and pacing move too slowly. It's worth watching the film, both as a comparison to John Huston's classic adaptation and as an example of an early talkie. I wouldn't recommend watching to someone who's only watching for entertainment.
A fascinating film, well worth seeing mainly to further cement the absolute brilliance of John Huston's brilliant remake. This film takes a lot of the same material from Hammett's novel, and makes a dreadful miscast hash of it. Ricardo Cortez' Sam Spade is a greased up loverboy who never convinces as having the brains necessary to unravel the strands of plot -- his brain is, at best, his second favorite organ.