SHOW BUSINESS: An Old Flame Returns

Like an old flame who would not be jilted, RKO Pictures Corp. was back in Howard Hughes's lap last week. For the five-man syndicate, headed by Chicago Punchboard Promoter Ralph Stolkin, which had bought Hughes's controlling interest in RKO for $7,093,940, it was the end of a short flirtation with moviemaking. Unable to control the company because of bad publicity about their past activities (TIME, Oct. 27), the syndicate had tried to sell the stock, but found no takers at anything like the $7 a share it had paid for it. Though it meant abandoning a $1,250,000 down payment and $100,000 in interest, the cheapest way out seemed to be to return the stock to Hughes.

Though richer by $1,350,000 on the deal, Hughes seemed to be getting no bargain. RKO has been losing $100,000 a week, and has made only one picture in seven months. If Hughes, who has tired of the studio, means to try to sell it again, he will have to put it in better shape first.

Last week Hughes picked the man he thinks can do the job. Subject to his board's approval, Hughes named as RKO's new president James R. Grainger, a veteran Hollywood distributor who is sales manager of Republic Pictures. But what RKO needed most of all was someone who could get it back into making movies.