That picture is on page 78 of the book "Benny:King of Swing" A Pictorial biography based on Benny Goodman's own archives introduction by Stanley Baron. William Morrow and Company. New York 1979. A great book with a lot of pictures I had never seen before. Cheap on amazon too for anyone who would want it. Only $6:
The picture is also on page 13 of the book "BG On The Record:A Bio-discography Of Benny Goodman" by Connor and Hicks. Arlington House, 1978.
But these are books written much later. It is fantastic to see the picture in a dance magazine from 1928! Usually it is difficult to trace a picture like that back to a specific magazine it appeared in from the 1920's. This is a great discovery to me. I am going to be searching ebay from now on for more issues of The Dance magazine because now I know it contains items of great jazz interest.