This is what happens when a film's rights fall into the Public Domain: whatever company would own the rights if they hadn't allowed them to lapse has no financial incentive to go back to the original elements and strike a good print or make a good video master (the same is true for Korda's JUNGLE BOOK).

As such, it's highly unlikely that that entity will do so, especially with a film as obscure and with such limited commercial prospects as THE RED HOUSE.

A pity.