The stories of panic and rioting was all false. Slate Article from 2013 that I have posted before.

How did the story of panicked listeners begin? Blame America’s newspapers. Radio had siphoned off advertising revenue from print during the Depression, badly damaging the newspaper industry. So the papers seized the opportunity presented by Welles’ program to discredit radio as a source of news. The newspaper industry sensationalized the panic to prove to advertisers, and regulators, that radio management was irresponsible and not to be trusted. In an editorial titled “Terror by Radio,” the New York Times reproached “radio officials” for approving the interweaving of “blood-curdling fiction” with news flashes “offered in exactly the manner that real news would have been given.” Warned Editor and Publisher, the newspaper industry’s trade journal, “The nation as a whole continues to face the danger of incomplete, misunderstood news over a medium which has yet to prove ... that it is competent to perform the news job.”

For those of you up to date on the youtube demonetization issues, this story and mode of operation should look very familiar.