That scene really freaked me out as a kid! Its so well done and creepy. Even more sinister is the idea of the peddler chasing the characters through out the film and capturing the crows, etc.
It was super creepy the way those yellow puppets quickly grew in size while dancing.Then they started chasing Dorthy and her friends.
The whole entire subway scene is creepy. The garbage cans chasing the scare crow. The subway post ripping lose trying to capture Dorthy. Even the part where the metal gate slams shut trapping everyone. The lion really saves the day.
I would love to learn more about the creation and inspiration of this scene. Its so scary and surreal. So Brilliant!