Studio in Crisis: RKO in 1952

By 1952, it was apparent to all that RKO Radio Pictures was in financial trouble. After all, in that year, they lost over $10,000,000, one of the biggest losses reported by a movie studio since the days of the Great Depression. But that was not the only crisis at RKO that year. Early that year, the first crisis arrived. The previous year, blacklisted writer Paul Jarrico had been fired by studio chief Howard Hughes, who employed similar treatment to any other blacklisted individuals. But Jarrico took action in 1952, suing RKO for their intention to leave him uncredited on The Las Vegas Story, simply because he was blacklisted. Hughes blasted the thought of this lawsuit, making it into a major controversy by his statements. The Screen Writers Guild became involved, and insisted that Jarrico was entitled to screen credit because, although the script had been polished since his draft, he still wrote a third of the script. Hughes went through the roof. He announced that he would not bend to the decision, said that the Guild should scrutinize its ranks for other "Communists", and dared the writers to strike against RKO. There were repercussions inside the studio as well. The number of productions was slahed. (At the end of the year, only one film, Split Second, was being filmed at the studio) Many employees were let go. And an office inside the studio was started to do background checks and to remove the names of blacklisted individuals from RKO films of the past, such as the writers of 1948's Rachel and the Stranger. Even in Hollywood which was in the midst of the Red Scare, reption was mixed, with a person at the Writers Guild stating that she felt that Hughes was doing this to cut the number of films being made at the cash-strapped studio. And then there was another lawsuit. Jean Simmons sued because she said that Hughes took their verbal agreement as an exclusive contract to the studio. The suit was settled out-of-count wilh Miss Simmons agreeing to appear in three RKO films. But her attorney filed suit a month later for libel and won. Later that year, Hughes sold all of his stock in RKO to a business based in Chicago. But just a few weeks after the new owners were in place, another crisis occurred. The Wall Street Journal published a series of articles revealing that RKO's new owners were involved in organized crime. Quickly, Hughes repurchased his stock and became studio chief again, as the new owners abdicated. The year ended on that note. Between Hughes' crazy and ludicrous actions (not to mention his support for the horrible Blacklist, one of the worst events in Hollywood history) and the lawsuits, RKO became studio non grata in Hollywood, with several independent producers, such as Walt Disney and Samuel Goldwyn, leaving the studio. RKO itself would be out of business by 1958. Hughes had left in 1954. But what is very ironic about 1952 is that so many RKO films that year were very good such as Angel Face, The Narrow Margin, Hans Christian Andersen, Clash by Night, Macao, On Dangerous Ground, The Las Vegas Story, One Minute to Zero, Rancho Notorious, At Sword's Point, The Lusty Men, Sudden Fear, The Big Sky, and the US distribution of Rashomon. Moviewise, it was RKO's last great year. But one should not forget all the troubles behind the surface, troubles that lead to the studio's undoing.