page_title: RKO Pictures
section_title: HUAC and Howard Hughes
hierarchical_section_title: RKO Pictures / Golden Age studio / HUAC and Howard Hughes
caption_attribution_description: English: Low-res image of original poster for the film Crossfire (1947), featuring stars Robert Young and Gloria Grahame.
context_page_description: RKO Pictures was an American film production and distribution company. In its original incarnation, as RKO Radio Pictures, Inc. it was one of the Big Five studios of Hollywood's Golden Age. The business was formed after the Keith-Albee-Orpheum theater chain and Joseph P. Kennedy's Film Booking Offices of America studio were brought together under the control of the Radio Corporation of America in October 1928. RCA chief David Sarnoff engineered the merger to create a market for the company's sound-on-film technology, RCA Photophone. By the mid-1940s, the studio was under the control of investor Floyd Odlum.
  RKO has long been renowned for its cycle of musicals starring Fred Astaire and Ginger Rogers in the mid-to-late 1930s. Actors Katharine Hepburn and, later, Robert Mitchum had their first major successes at the studio. Cary Grant was a mainstay for years. The work of producer Val Lewton's low-budget horror unit and RKO's many ventures into the field now known as film noir have been acclaimed, largely after the fact, by film critics and historians. The studio produced two of the most famous films in motion picture history: King Kong and Citizen Kane.
context_section_description: RKO, and the movie industry as a whole, had its most profitable year ever in 1946. A Goldwyn production released by RKO, The Best Years of Our Lives, was the most successful Hollywood film of the decade and won that year's Academy Award for Best Picture. But the legal status of the industry's reigning business model was increasingly being called into doubt: the U.S. Supreme Court ruled in Bigelow v. RKO that the company was liable for damages under antitrust statutes for having denied an independent movie house access to first run films—a common practice among all of the Big Five. With profits at a high point, Floyd Odlum cashed in by selling off about 40 percent of his shares in the company to a group of investment firms. After Koerner's death, Radio-Keith-Orpheum president N. Peter Rathvon and RKO Radio Pictures president Ned Depinet had exchanged positions, with Depinet moving to the corporate offices in New York and Rathvon relocating to Hollywood and doubling as production chief while a permanent replacement was sought for Koerner. On the first day of 1947, producer and Oscar-winning screenwriter Dore Schary, who had been working at the studio on loan from Selznick, took over the role.
  RKO appeared in good shape to build on its recent successes, but the year brought a number of unpleasant harbingers for all of Hollywood. The British government imposed a 75 percent tax on films produced abroad; along with similarly confiscatory taxes and quota laws enacted by other countries, this led to a sharp decline in foreign revenues. The postwar attendance boom peaked sooner than expected and television emerged as a competitor for audience interest. Across the board, profits fell—a 27 percent drop for the Hollywood studios from 1946 to 1947. The phenomenon that would become known as McCarthyism was building strength, and in October, the House Un-American Activities Committee (HUAC) began hearings into Communism in the motion picture industry. Two of RKO's top talents, Dmytryk and producer Adrian Scott, refused to cooperate. As a consequence, they were fired by RKO per the terms of the Waldorf Statement, the major studios' pledge to "eliminate any subversives". Scott, Dmytryk, and eight others who also defied HUAC—dubbed the Hollywood Ten—were blacklisted across the industry. Ironically, the studio's major success of the year was Crossfire, a Scott–Dmytryk film. Odlum concluded it was time to exit the film business, and he put his remaining RKO shares—approximately 25 percent of the outstanding stock—on the market. Before the turn of the year, the Pathé-branded newsreel was sold to Warner Bros. For her performance in The Farmer's Daughter (1947), a coproduction with Selznick's Vanguard Films, Loretta Young won the Best Actress Oscar the following March. It would turn out to be the last major Academy Award for an RKO picture.
  In May 1948, eccentric aviation tycoon and occasional movie producer Howard Hughes gained control of the company, beating out British film magnate J. Arthur Rank as the buyer of Odlum's interest. Hughes bought Atlas Corporation's 929,000 shares for $8,825,000.  Hughes promptly fired 700 employees, and RKO production, which had averaged 30 pictures per year, dwindled to 9 the first year Hughes took over. During Hughes's tenure, RKO suffered its worst years since the early 1930s, as his capricious management style took a heavy toll. Production chief Schary quit almost immediately due to his new boss's interference and Rathvon soon followed. Within weeks of taking over, Hughes had dismissed three-fourths of the work force; production was virtually shut down for six months as the conservative Hughes shelved or canceled several of the "message pictures" that Schary had backed. Once shooting picked up again, Hughes quickly became notorious for meddling in minute production matters, particularly the presentation of actresses he favored. All of the Big Five saw their profits dwindle in 1948—from Fox, down 11 percent, to Loew's/MGM, down 62 percent—but at RKO they virtually vanished: from $5.1 million in 1947 to $0.
caption: Crossfire (1947) was a hit, but no American studio would hire blacklisted director Edward Dmytryk again until he named names to HUAC in 1951.[130] Producer Adrian Scott wouldn't get another screen credit for two decades. He died before he could see it.[131]
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