John Houseman, the producer who terrified millions with the ``War of the Worlds'' and won an Oscar for intimidating his students as the imperious law professor in ``The Paper Chase,'' died Monday. He was 86. Houseman died at his seaside home before dawn, said Ivan Goff, a family friend and scriptwriter. Margo Harley, a longtime friend and colleague, said he had spinal cancer. Houseman brought a magnetic eloquence to the role of the curmudgeon and gained wide fame while in his 70s as Professor Charles W. Kingsfield in ``The Paper Chase,'' a role he first played in the 1973 film and then in the television series. He parlayed his fame and his distinctive speaking style into a lucrative series of commercial endorsements, including ads for the investment firm Smith, Barney in which he growled, ``They make money the old-fashioned way _ they EARRNNN it.'' Houseman's characters were marked by a stern, autocratic tone, yet those who knew him well described him as quiet and gentle. ``Behind that austere public posture was the warmest, most generous man in the world _ with his time, his remarkable intelligence, his insight,'' said writer David Rintels, who collaborated with Houseman on the movie ``Gideon's Trumpet'' and the play ``Clarence Darrow.'' Said actor Kirk Douglas: ``He was a gentleman of the old school, polite and courtly. He had wonderful manners. He was an unusual character and I'm going to miss him.'' While he was best known for his work on screen, Houseman's strongest affections were the theater, book writing and teaching. His acting students included Kevin Kline, Robin Williams, Christopher Reeve, Patti LuPone and David Ogden Stiers. Houseman appears in the new Woody Allen movie, ``Another Woman,'' in which Stiers plays a younger Houseman. ``He was somebody who has been responsible, probably, for more people's careers in American theater than any single person, and we're going to miss him very, very much,'' Ms. Harley said. At the time of his death, Houseman had achieved what he told friends was his ultimate dream: the establishment of The Acting Company, a touring theatrical ensemble of the nation's brightest talents. Houseman co-produced the ``War of the Worlds'' radio drama for Orson Welles. He later apologized for the nationwide panic induced by the program about invading Martians which aired 50 years ago Sunday. Born Jacques Haussmann in Bucharest, Romania, the veteran actor, director and producer launched his career in 1934 as the director of a Broadway production of the Gertrude Stein-Virgil Thomson opera ``Four Saints in Three Acts.'' In 1937 he helped Welles form New York's Mercury Theatre, and he co-wrote the original story for Welles' legendary film ``Citizen Kane'' in 1941. During a tribute in Los Angeles to him in 1987, Houseman said, ``The only important thing when you've lived as long as I have is what you've accomplished _ a body of work. ... We all tend to talk about our successes. At least as important are our failures.'' He had many successes to boast about. Houseman played small roles in the 1938 film ``Too Much Johnson'' and in the 1964 film ``Seven Days in May'' before emerging as a strong film actor in ``The Paper Chase.'' He won a best supporting actor for his portrayal of Kingsfield. His film acting credits include ``Rollerball,'' ``Three Days of the Condor,'' ``The Cheap Detective'' ``St. Ives,'' ``Old Boyfriends,'' ``The Fog,'' ``Ghost Story'' and ``Bright Lights, Big City.'' He starred in the CBS television series based on the movie ``The Paper Chase,'' and after its cancellation, he stayed with the series for several years on Showtime pay television. Houseman starred in the ABC miniseries ``The Winds of War'' as Dr. Aaron Jastrow, a Jewish scholar in Europe at the start of World War II, but the role was taken over by Sir John Gielgud for the sequel, ``War and Remembrance,'' which ABC will telecast beginning Nov. 13. During World War II, Houseman was head of the Voice of America. In the 1950s he produced a television classic, ``The Seven Lively Arts.'' He also produced a number of ``Playhouse 90'' shows. Houseman also appeared in the miniseries ``Washington: Behind Closed Doors'' and ``Aspen.'' One of his last appearances was a year ago as co-anchorman on the NBC comedy special ``Our Planet Tonight.'' In September, Houseman said he had no plans to slow down. ``I have tapered off a little, but I wouldn't know what to do with myself if I retired,'' he said three days before his 86th birthday. ``I still have something to offer, even though the roles these days are usually small. ``But I'm 85 years old. I am not going to be offered the role of Romeo anymore, or Juliet, for that matter. Yet the limited range I do play, I play well. My range is that of an old man, but what do you expect from someone who started acting at the age of 70?'' Houseman is survived by his wife, Joan, and sons John Michael and Charles Sebastian. There will be no funeral, but a memorial service was being planned, said publicist Judi Davidson.