Citizen Kane (1941) is arguably the greatest movie ever to come out of Hollywood, and it is surely one of the most-impressive debuts by any director. Welles also produced and coscripted the film with Herman J. Mankiewicz. Welles submitted a joyfully energetic performance as Charles Foster Kane, the newspaper magnate (clearly based on newspaper publisher William Randolph Hearst) who rises from a poor background to amass uncountable millions—none of which he is able to enjoy, thanks to his epic ambitions.

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Citizen Kane featured an ensemble cast in support of Welles, composed mostly of Mercury actors, and included Joseph Cotten, Agnes Moorehead, Everett Sloane, Paul Stewart, and Ruth Warrick. Shot with an array of classic and experimental techniques by Gregg Toland, evocatively scored by Bernard Herrmann, and edited brilliantly by Robert Wise, Citizen Kane was a masterpiece of moviemaking. It was also the last time Welles made a Hollywood movie that reached the screen intact.

Although it initially received rave reviews, Citizen Kane was not a financial success. RKO found the film—with its complex flashback structure and lack of an appealing protagonist—difficult to market, and its box office was also hindered by the Hearst newspapers’ using their power to hamstring its commercial prospects. Nevertheless, Citizen Kane received nine Academy Award nominations, of which Welles received three (best actor, director, and original screenplay), but only the screenplay won an Oscar.

The Magnificent Ambersons (1942) was produced, written, and directed by Welles, and to some critics it represents the peak of his artistry—even though it was taken out of his hands by RKO after poor test screenings. It was heavily reedited by Wise (44 minutes were cut), and a new ending was tacked on. The Magnificent Ambersons was adapted from Booth Tarkington’s novel about the declining fortunes of a wealthy 19th-century Indianapolis family whose smugness (and inability to comprehend the significance of industrialization and the automobile) leads to their downfall. The ensemble cast featured Tim Holt as the spoiled scion whose arrogance finally earns him a well-deserved comeuppance that nonetheless carries the weight of tragedy. Mercury actors (and Citizen Kane veterans) Cotten, Moorehead, and Ray Collins all delivered fine performances, and former silent star Dolores Costello and young Anne Baxter demonstrated Welles’s attention to his female actors. Photographed brilliantly by Stanley Cortez, The Magnificent Ambersons was nominated for a best picture Oscar.

Even while Wise was cutting The Magnificent Ambersons, Welles was in South America filming his quasi-documentary It’s All True, an anthology of three short films: “The Story of Samba (Carnaval),” about Rio de Janeiro’s annual Carnival; “My Friend Bonito,” about bullfighting; and “Four Men on a Raft,” about four humble fishermen who become national heroes after a daring voyage. RKO canceled the project midway, leaving Welles stranded in Rio. (The legendary project, never released, resurfaced when the mostly extant footage from “Four Men on a Raft” was assembled by Richard Wilson, Bill Krohn, and Myron Meisel as part of the documentary It’s All True: Based on an Unfinished Film by Orson Welles [1993].)

Welles had started work on Journey into Fear (1943) before leaving for Brazil, and he returned to find that RKO had begun meddling with it, as it had with The Magnificent Ambersons. This time, though, Welles was able to intercede and restore at least some of the brutal editing, but it was released at 69 minutes, having been cut down from 91. Journey into Fear was officially credited to Norman Foster, a director who also assisted Welles on It’s All True, but it was produced, coscripted, and acted in by Welles, who played the supporting part of Colonel Haki of Turkish intelligence. The hand of Welles is clearly evident, although Welles later said that he “designed the film but can’t properly be called its director.” A gripping (if sometimes confusing) adaptation of Eric Ambler’s thriller about espionage and munitions smuggling, Journey into Fear starred Welles’s then paramour, Dolores Del Rio, as the mysterious Josette, and Citizen Kane veterans Cotten (who cowrote the screenplay), Warrick, Moorehead, and Sloane enhanced the production. However, RKO was unimpressed, and its new executives kicked Welles and his Mercury Productions off the lot.