Howard Hughes
Page 6
I couldn’t cope with that. I certainly couldn’t sympathize with him openly, or even inwardly, and I didn’t dare defend my mother to him because I wouldn’t have known how to do it.
My mother never mentioned any of these problems to me. She was a repressed woman. I realize now that my mother loved me more than she loved my father. In a sense I had taken his place as the object of her love. My father knew this; he was a warm-hearted man, and my mother presented a very cool exterior. Many times I saw my father throw his arm around her shoulder and try to be affectionate, and she would stiffen up. I guess she knew she wasn’t the only one, anymore, who was the object of his affection, and over the years this had hurt her too much, and she crawled into a shell. But I have to be fair to Daddy too: he had a wider capacity for love, and if he loved many people it didn’t diminish has love for the few he loved the most.
Out in California I could see what my father was doing: there was. always a pretty woman around. We stayed at Mickey Nielan’s house in Hollywood. That was Marshall Nielan, the film director. One day Daddy went out with Mickey Nielan and left his Buick there in the garage, and I decided to play hookey from school and take a little spin in it. I had a girl with me, not a classmate but a waitress from one of the joints around there. I wasn’t having an affair with her –I was still a little too young and unsure of myself to fool around that way. Although according to my father I wasn’t too young. In fact he thought I was a little backward in that department.
Had he made any attempt to introduce you to sex?
Yes, he made an attempt, but I’d rather not talk about that – not yet.
I was with this girl, driving around in my father’s Buick. I was going to show her one of the film studios, the old Metro lot where Uncle Rupert had taken me on my first trip two years before. But we drove up to the gate and they didn’t know who I was – the name Howard Hughes didn’t mean anything then – and the guard wouldn’t let me in.
I was embarrassed, because I had given this girl a big line about my uncle, and I couldn’t even get past the guard at the Metro lot. To make matters worse, on the way home I banged into a traffic stanchion and put a dent in the fender of the Buick. This didn’t please my father, until I told him about the girl, and then he eased up and said, ‘Okay, Sonny, it was for a good cause.’
But the fact that I couldn’t get into the studio was a memory that stayed with me. In later years, when I owned RKO Pictures, I often remembered that there was a time in my life when they wouldn’t even let me past the gate at Metro-Goldwyn-Mayer I mentioned that incident to Louis B. Mayer when I wanted to buy MGM from him, and we had a good laugh about it. He thought I was joking at first about wanting to buy his studio and then when he realized I wasn’t joking he didn’t take it well. He didn’t like the idea of a twenty-one-year-old telling him he wanted to take over MGM.
After Los Angeles I was sent East to the Fessenden School in Massachusetts, because Big Howard figured it would open the door for me to Harvard. It might have, if I’d been interested in going to Harvard, but I wasn’t. By then I wanted to fly airplanes. That was one of my two great ambitions, right from the beginning.
I was at Fessenden when I first flew, but even before then there were barnstormers down in Texas flying Jennies and Avros and other old World War I crates. I didn’t get to go up in any of them; my first flight was actually a present from my father. In Cambridge one time he asked me what I wanted most if Harvard won the crew race against Yale, and there happened to be a barnstormer there with a seaplane, offering rides for five dollars. I said, ‘A ride in that seaplane.’ Harvard won by half a length and my father made good on his promise.
During that flight I was breathing down the back of the pilot’s neck, jumping around, yelling, ‘Go faster, sir! Please go faster!’
The back of his neck got redder and redder. Finally he turned and said, ‘Sit the hell down! I ain’t about to kill myself for some dumb rich kid.’ He was from the Deep South. When we landed he cooled off a bit, but he told me something then that I didn’t forget for a long time. ‘When a man knows his job,’ he said, ‘let him do it.’
I took that to heart. But the trouble, as I found out, is that most men don’t know their jobs.
I was only at Fessenden for a year, and then I went out to California again and studied engineering for a semester at Cal Tech. That was when my mother died. I took the train back to Houston, and Big Howard wanted me there with him, so I transferred college to Rice Institute.
I was nineteen years old when one day the dean called me out of a physics class.
He didn’t mince words. He said, ‘Young Mr. Hughes, brace yourself. Your father’s died.’
Big Howard had had a heart attack. He was in his office – he’d been partying the night before – and he keeled over, dead on the spot. He was only fifty-four.
How upset were you by his death?
Very, although I hid it for many years. I’m just beginning to understand, at the age of sixty-five, how profoundly my whole life was influenced by my father.
The most obvious way was that he made me rich. Not so long after he died I inherited most of Hughes Tool – everyone called it Toolco, and still does – because Big Howard had bought out Walter Sharp’s share in 1912, after Mr. Sharp died, from the Sharp family.
After the funeral I was still in something of a daze, but it began to clear when the family lawyer called me into his office. ‘Sonny,’ he said, ‘I guess you realize that since your mother’s passed away too, and you’re an only child, that you’re your father’s principal heir.’
‘Yes,’ I said, ‘I kind of figured that.’
But those were just words; I didn’t really know what it meant, and the lawyer was smart enough to realize that. So he explained to me that, in theory, I now owned seventy-five percent of Toolco.
‘What do you mean, “in theory”?’ I asked.
‘You’re a minor. Nineteen years old. The laws in Texas are a little peculiar regarding inheritance when a minor is involved. You and the rest of the family will have to get together and work things out.’
‘Well,’ I said, ‘give me a little time to think about it.’
He was glad to do that, and we went into a waiting period, during which I began to make a fool of myself in almost every way possible. I wanted to stand in my father’s shoes, wanted people to think that I was a chip off the old block. I got my hands on a lump of money, cash that my father had kept around the house for emergencies – a considerable sum of more than twenty-five thousand dollars.
I carried the cash around with me in a briefcase. I spent some of it in a showy way, shopping at Levy’s and Kiam’s in downtown Houston, and then one day I bumped into this oilman, a wildcatter named Shepard who had done business with my father. I’d seen them together on several occasions – my father had a little place near Galveston where he and his friends used to go fishing on weekends. Shepard was an old roughneck who’d struck it rich a couple of times and then blown it on dry holes. He had one of those Southern faces, with the cross-hatched neck and the red leathery cheeks with the veins showing, and a certain blue-eyed brutal quality.
Shepard invited me up to a room in the Bender Hotel for a crap game. A few of the other men had also been friends of my father’s, but I should have spotted them for what they were. It was certainly no friendly game. If I knew it at that time I wouldn’t own up to it, and they hit me for better than twenty thousand dollars.
I had a cramp in my gut when I left that hotel, and I had to stop dead in my tracks when I got outside the room. I doubled over, held myself around the middle until the knot went away and I could limp out of the lobby. I’ve talked to people in Las Vegas since: Nick the Greek and other professionals have shown me how a man with a slick pair of hands can do anything with dice or cards and you’d never see it. There’s a certain poetry of motion there, but I wasn’t feeling very poetic with twenty thousand bucks down the drain.
These men went on operating in H
ouston, and a couple of weeks later some other loser complained, and they were taken to court. One of them confessed, or had it beaten out of him, that they’d also taken twenty grand from me with a rigged deck.
I was called into court to testify. It didn’t take me five minutes to decide that no man who called himself a Texan would snitch on even outright thieves like these. Besides, they’d been my father’s friends.
I told the judge, ‘No, sir, Your Honor, it was a straight game, and I don’t remember how much I lost but it wasn’t anywhere near twenty thousand dollars.’
The other losers had been bought off, and my testimony allowed these men to go free.
My friend Dudley Sharp – he was my father’s partner’s son, and we used to pal around together – told me I’d made a mistake. ‘These men should have been jailed or run out of the state.’ And some other people even accused me of cowardice.
Soon it became time to deal with my inheritance and how the Tool Company was going to be divided and run now that my father wasn’t at the helm. As I said, I was the heir to 75% of it, if I could get over the problem of being under twenty-one. I tried to think what my father would have done, because that’s what I wanted to do.
He had always said to me, ‘Don’t have partners, son, they’re nothing but trouble.’
That made things clear, and I decided to try and buy out the rest of the Hughes family – various cousins and uncles who owned the other 25% – and gain total control. A rough estimate was made of the company’s worth and it came to something under nine hundred thousand dollars.
But the first thing that happened was that the rest of the family challenged that figure, said it was far too low, and it looked like the thing could drag on forever once the accountants and the lawyers got their noses into it. By the time they’d gone through litigation the fees would have made us all poor.
I thought things over. I may have been a nineteen-year-old kid but I was able to look ahead into the future. In 1925 I believed in technology and I believed that the automobile industry was still in diapers. Henry Ford was just going into mass-production. If you put ten million more cars on the road, I thought, you’d need gasoline to make them run. You needed crude oil to make gasoline, and you needed the Hughes drill bit to find the crude oil.
I decided I had to get rid of the rest of the family, and that required a two-pronged assault. It was like a military campaign on two fronts. The first thing I needed was money to fight the war against the family and to pay them off, and so I went to the banks. The president of the Texas Savings Bank, Oscar Cummings, was the man who really swung his weight behind me. He’d been a friend of my father’s, but there was more to it.
He said to me, ‘Sonny, I’m giving you the money because I like the way you behaved in that Bender Hotel incident. I like the fact that you didn’t whine and snitch and send those men to jail. I’m not particularly proud of it, but I have to admit that one of those crooks was my cousin.’
I borrowed $400,000 from Texas Savings, pledging my inheritance as collateral.
That was the first step. The next thing I needed to do was get myself legally declared an adult, as opposed to a minor – and of course my relatives who owned the other 25% of Toolco were adamantly opposed to that happening. They still wanted to run that company. They saw that they would have another two years before I reached the legal age of twenty one, by which time they could… well, I don’t want to accuse them of being thieves, but surely they figured that they could do a hell of a lot better with the company than I could. Their attitude was: what does a snot-nosed nineteen-year-old kid know about business?
As a matter of fact I didn’t know much at all. At this point, I think, stubbornness and momentum carried me through far more than any reasonable intelligence. But I did know enough to hire a powerful lawyer, Norris Messen, and I went to court against the family. The judge – an old upright Texan who wore a black string tie – was a close friend of Oscar Cummings of the Texas Savings Bank, whose cousin I’d declined to send to jail.
I won the case. Technically the judge couldn’t declare me an adult, but under a provision of the Texas Civil Code he was able to declare me competent at the age of nineteen to handle the business affairs of Toolco and enter into contractual agreements as though I were legally an adult.
And that’s exactly what I did. The cousins and other relatives couldn’t control anything with their measly 25%, and they kept squabbling among themselves, which I’d counted on, and finally I made them all a good fair offer for their shares. I wound up paying a total of $355,000 to all of them. That took about six months to negotiate and wrap up, and at the end of that time – still nineteen years old – I became sole owner of Toolco, about which I knew hardly anything.
If they hadn’t sold out to you, how much would their $355,000 be worth today?
Probably in the neighborhood of $700 million. But you can’t think that way. Otherwise there would be no such thing as a marketplace. Nobody would sell anything to anyone else. There would be no progress.
Anyway, now I was sole owner of a thriving company. It finally occurred to me: in my ignorance, and at my age, what was I going to do with it? I hadn’t the slightest idea how to run it.
2
Howard marries, becomes a multimillionaire, gives up control of Toolco, and decides to make movies.
SHORTLY AFTER TAKING CONTROL of the Tool Company in 1925, I decided to get married. This was part of my effort to become an adult as quickly as possible.
My bride was Ella Rice, a member of the famous Rice family of Texas, the people who built the Rice Hotel and founded Rice Institute, now Rice University. I’d spent nearly two years there as a student. I’d known Ella for quite a while, and we bumped into each other at social events in the Houston of that era. I don’t know if I was in love with her or not. I thought I was, but what does a nineteen-year-old kid know about love? He knows what a hard-on is, that’s all, and he figures if he gets a hard-on quickly and often enough, he’s in love. He’s more to be pitied than scorned, like the poet says.
Ella was twenty-one. She reminded me of my mother quite a lot – she was slim, curly-haired, soft-voiced, and she had quiet hazel eyes – and it was a socially correct marriage. Most of those people in Houston didn’t have a dime to their names before they struck it rich, but then they wanted to scrape off the mud and spray themselves with French perfume and pretend there was a society and they were part of it. When I was a kid, when things were going well for my father, before he’d blow it on a trip East or run up more bills than he could pay, my mother used to drag me off to concerts. Even though those cowboys and their womenfolk didn’t know Bach from Verdi, they organized concerts and I got hauled along. You could die of heatstroke in the concert hall, but you were obliged to show yourself off to the gentry. I remember my mother took me once to Prince’s Theatre – not a concert that time, but Shakespeare’s As You Like It – and she fainted from the heat. We had to carry her out of there.
Despite my intelligence and craftiness in getting control of Toolco, I was still a crazy kid. Getting married at the age of twenty is certainly proof of it. I wooed Ella, convinced her that we’d be together for the rest of our lives, and chemistry did the rest.
Ella and her parents wanted to know where we’d live. They meant what part of Houston.
I said, ‘Hollywood, California.’
That upset everyone. Why did I want to go off to California?
I explained that I wanted to go into the movie business.
‘And do what?’
‘Make my own movies,’ I said.
That shocked everyone. I’d been nurturing this ambition in secret for many years, ever since I’d first gone out to Hollywood with my father and my Uncle Rupert had taken me to MGM and the other studios. At a deeper level, where did it come from? Who knows? It just seemed to me an exciting thing to do. And I had the money to do it.
I didn’t dare tell Ella and her parents about my other ambition, which
was to fly fast planes. I kept that one to myself.
Money conquers all. I was determined, I didn’t seem to have anything of the crackpot in my makeup, and I had the wherewithal to fulfill my fantasies. That’s a hard combination to beat. Ella and the Rices said, ‘Well, all right… let’s see what happens. Maybe it’s something he has to get out of his system.’
So we got married in Houston on June 1, 1924, a garden wedding at my in-laws’ house, and we went off on a honeymoon to New York City. I spent most of the time going to the movies, with or without Ella. I’m afraid I wasn’t a very good husband even then. I had the movie bug and that was all I thought about. When we came back to Houston, almost immediately I said, ‘Let’s not wait any longer. Let’s go to Hollywood.’
But first I had to put my financial house in order. It was 1926, and I had a growing, prosperous company on my hands and little or no knowledge of how to run it. If I wanted to indulge my two ambitions, Toolco had to do well – better than well.
Norris Messen, my lawyer, advised me. Right there in the higher echelons of the company I found two experienced oilmen, Ray Holliday and Monty Montrose, and I put them in charge of operations under Colonel Rudolph Kuldell, who was president and general manager, although he really didn’t know that much about the business. He was just a crony of my father’s with good government connections.
A lot of people have told tales in the past years that Holliday and Montrose and Colonel Kuldell wanted me out of there and paid me to keep my hands off Toolco because they thought I’d wreck it. Sonny, or ‘Junior,’ wasn’t competent to run things, so: ‘Okay, Junior, we’ll send you a few hundred thousand dollars a year. You go off and play with your toys out in Hollywood.’
The truth is that at the age of twenty I made what I consider a reasonably intelligent business decision, insofar as I wasn’t experienced in business and these men could run the company better than I could in the day-to-day operation. I learned from them, and I insisted on reports, but I let them run the company.