Thanks for the Boop detective work, guys! I've been saying for years there was no evidence that this ever existed, and now you've found it!
Space Kaijuu said:
The scene with Baby Herman smoking in the baby carriage appears to be unaltered. There are some reports that the scene was altered but I haven't found any proof.
You (or those reporting it) might've been misled by the fact that the scene was altered during a later stage of editing the film....before release. When Sotheby's auctioned off a bunch of cels from the film, one of them showed Baby Herman inserting a bill or two into his assistant's cleavage (remember, he was sending her off to bet on a horse for him). In the final film, this shot is replaced by a closeup of Eddie.
There were a few late changes like this, toning down some of the adult elements. ADR of Wise Ass saying "bull schtick" instead of the other word, and Maroon telling Eddie he has a lot of "brass" instead of balls.
...but, again, these were pre-release "changes", if that is even the right word.