Orson Welles In 1937, Orson Welles and John Houseman formed their own production company, Mercury Theater. Shortly thereafter, Mercury tried its hand at radio with a series called “Mercury Theater on the Air”. A 23-year old directing prodigy, Welles then came up with the idea to produce a dramatization of the H.G. Wells’ novel “The War of the Worlds”, about an alien invasion from space. Radio dramatizations were not new, but Welles’ unique style was. On October 30, 1938, he produced and hosted the program as a live news broadcast, with “on the spot” coverage from eyewitnesses who swore they saw evil-looking aliens landing in a field near Grovers Mills, New Jersey. Nationwide panic followed. Over a million Americans, believing the radiocast was real, fled, prayed or got ready for battle -- despite repeated disclaimers aired during the radio broadcast. What had begun as a Halloween prank was becoming anational emergency. As the dust settled, Welles was shocked to learn of the hysteria he had created, and apologized. More importantly, the media realized its immense power in influencing public perception and opinion -- a lesson that was already being applied with great skill by another radio commentator in 1938: Nazi Propaganda Minister Joseph Goebbels.