January/ February 2011
New Product Review:
ValuSource Pluris
DLOM
Database
•
V a L u a T I O n
U
By Robert J. Grossman, CPA/ABV, CVA, ASA, CBA, and Sara L. Bergman, AVA
sers of business valuation reports are often dismayed by the level of professional
judgment required at every step of the valuation process. Many times, this user
dismay is brought to the surface through court decisions involving business
valuations. Over the last two decades, numerous judicial decisions have led to
a general impression that the determination of discounts for lack of marketability (DLOM),
based on averages of the initial public offering studies and a series of restricted stock
studies, are no longer acceptable or valid.
The more relevant issue at hand when using
such benchmark data, however, is the propriety of the data and the data source’s level
of comparability to the subject company under valuation.
The valuation community has struggled,
as well, over many years to move various
aspects of the business valuation process
to a more scientific endeavor, evidencing
as many aspects of the conclusion of value
with third-party empirical data as possible.
The primary problems with this injection of
more empirical third-party data has generally been the lack of quality information and
the sufficiency of that information.
Now, more than ever, the business
valuation community is being held to a
higher standard of scientific and/or thirdparty evidence to confirm positions taken
in the development of valuation conclusions. Nowhere is this evolution more
prevalent than in determining discounts
for lack of marketability.
Database sophistication related to summarizing restricted stock transactions has
evolved over the last decade, with providers
of this data striving to improve quality. The
result of this increased quality is to arm the
business valuator with more directly correlated data points. In addition, the improved
database quality provides the ability to draw
stronger relationships and comparability
between the company under valuation and
the restricted stock transaction information
used in determining the discount.
The Pluris DlOM DaTabase
Until recently, the most substantial database and study of restricted stock activity was that prepared by FMV Opinions,
Inc. The primary benefit generally awarded
the FMV Opinions study is the quantity of
transactions (nearly 600 according to the
Companion Guide to the FMV Restricted
Stock Study) including transactions occur-
ring from 1980 to 2008. In addition, this
study includes as many as 60 distinct transaction and company characteristics from
which the business valuator can draw the
comparisons to the company under valuation. This information has led to wide use of
the FMV database in the determination of
discounts for lack of marketability.
However, past restricted stock studies
have sometimes lacked sufficient detail and
precision in their results. Additionally, the
size of the transaction population can play
a key role in the confidence a valuator has
in the discount determined; the higher the
number of comparable transactions, the
more confidence you can have in the resulting discount data. Studies that exclude transactions in which restricted stock was sold
with attached warrants may eliminate a large
population of transactions unnecessarily.
Enter the Pluris DLOM database, the newest
empirical study on the market.
On May 11, 2010, ValuSource released
the Pluris Discount for Lack of Marketability Database. The Pluris DLOM database is
unique in that its sheer size surpasses any other information source currently available for
use in the determination of the DLOM. The
Pluris DLOM database contains information
on more than 1,950 transactions from 2004
A P R O F E S S I O N A L D E V E L O P M E N T J O U R N A L f o r t h e C O N S U LT I N G D I S C I P L I N E S
through 2009, and over 700 transactions from
just the last several years. These transactions
are spread across 284 four-digit SIC codes
and 65 two-digit SIC codes. Each transaction
includes an impressive 80 data points, including closing and announcement dates, market
prices for the underlying stock on each date
and at set intervals before and after each date,
industry descriptions and classifications, and
a significant amount of detail on the operating
performance and financial position of each
restricted stock issuer. The Pluris DLOM database is updated quarterly. ValuSource says
that the database will be expanded backward
in time, as well as forward.
With so much information available,
the Pluris DLOM database might seem unwieldy and difficult to navigate. In fact, you
will find the database well organized and
easy to use (one drawback with respect to
use of this database will be addressed in the
practical example below). The database contains 18 search filter options, including:
SIC code
Volatility
Market cap
Revenue
Assets
Block size
Include low Volume stocks
Include penny stocks
Include pink sheet stocks
Include deals with warrants
Stock price
Sector
Book value
EBITDA
Market-to-book ratio
Issue date
Registration rights
Block size (volume)
The Pluris DLOM database draws on a
foundation of information gathered from
the observation of investor trades in illiquid securities in secondary trading markets.
This information was compiled by Pluris in
an earlier database called LiquiStat, which
2
January/February 2011
is the subject of a 2007 white paper titled
“Discounts for Illiquid Shares and Warrants:
The LiquiStat Database of Transactions on
the Restricted Securities Trading Network,”
by Espen Robak, CFA, who is president of
Pluris Valuation Advisors in New York.
The LiquiStat database not only looks at
restricted stocks, but also is the only database that attempts to address liquidity issues
related to stock options or warrants that are
the subject of a private placement. The LiquiStat database includes data on both types of
restricted securities. One concern about the
Pluris DLOM database is the computational
methodologies employed in valuing the
warrants. Observers have noted that Pluris
uses a method to value the warrants that
cannot be, or is not, applied consistently
across all warrants. If the resultant information is challenged, there appears no way to
independently determine the value, leading
to the need to simply “accept” the warrant
valuations encompassed in the Pluris study.
The key finding in Robak’s white paper, referred to above, is that the restricted stock data leads to the conclusion that
the discounts observed in private placements are very likely driven by a lack of
marketability or liquidity. This conclusion
is meaningful in the face of numerous
attacks on this theory in recent years by
Mukesh Bajaj, PhD (business professor at
the Haas School of Business, University of
California at Berkeley), and others.
The LiquiStat database is the first study of
illiquidity discounts in transactions between
individual shareholders. These transactions
do not involve the issuer of the stock, so they
are less subject to factors outside the inherent
characteristics of the shares of stock sold. Because these other factors are essentially eliminated, the conclusions closely approximate
true fair market value as the term is defined
in the International Glossary of Business Valuation Terms. The difference between the restricted stock sold and the same security being traded in the financial markets is deemed
to be primarily due to lack of liquidity.
The Pluris DLOM database calculates
what they call a common stock discount
(discount for lack of marketability) by taking the effective purchase price per share divided by the closing price on the issue date,
and subtracting that amount from one. The
Pluris DLOM database determined an average discount for lack of marketability of
22.7 percent, while the median discount is
21.1 percent.
FMV resTricTeD sTOck sTuDy
As of September 2010, the FMV Restricted Stock Study contained nearly 600
transactions dating from 1980 to 2008. The
transactions included in the FMV Study
were found using a variety of sources, including 10K Wizard, Security Data Corporation, EDGAR and EDGAR Pro, Dow Jones
News Retrieval, Disclosure CompactD, and
S&P Corporate Transactions Records. Public transaction documents were reviewed to
obtain data for each transaction, including
but not limited to forms 8k, 10K, 10Q, S-1,
S-3, S-4, stock purchase agreements, and
registration rights agreements.
With incorporation of data over an extended period, the FMV Restricted Stock
Study addresses several theoretical concerns
that face valuators. First, the time period encompassed in the FMV study covers multiple
Rule 144 restriction periods, with the earliest periods having a restriction period of two
years. Modified downward over the intervening period—first to one year, and later to six
months—the longer holding period is more
akin to the holding period of privately held
business interests (albeit, most privately held
business interests are held significantly longer
than two years).
Moreover, the holding period of a privately held business interest is primarily relevant to the determination of the discount for
lack of marketability because longer holding
periods more closely assimilate risk associated with volatility. Value volatility over the
period the interest is marketed until the investment is converted to cash is critical to
the discount determination.
Given these considerations, we see the
The Value Examiner
A P R O F E S S I O N A L D E V E L O P M E N T J O U R N A L f o r t h e C O N S U LT I N G D I S C I P L I N E S
expanded time frame of transaction inclusion in the FMV study as relevant in determining the appropriate discount for lack
of marketability.
Using a process described as “cleaning,”
the FMV Study eliminated approximately
95 percent of all restricted stock placements,
due to reasons such as the stocks not being
domestic, a warrant being attached to the
stock in the private placement, the transaction not closing, or special contractual arrangements between the buyer and seller.
The FMV Study calculated the DLOM
by dividing the difference between the restricted stock price and the market reference price by the market reference price.
The overall average discount for the 597
transactions in the FMV Study is 20.7
percent with a median discount of 17.1
percent (compared with 22.7 and 21.1, respectively, in the Pluris DLOM database as
mentioned above).
There are 20 search filter options to
choose from in the FMV Restricted Stock
Study database including:
SIC code
Trading exchange
Transaction date
Registration rights
Holding period
Transaction month Discount
Percent shares placed
Market value
Book value
Market-to-book ratio
Total assets
Total revenues
EBITDA
Pretax income
Net income before extraordinary items
Operating profit margin
Net profit margin
Volatility
Z-score
Dividend yield
The FMV Study found that the discount
for lack of marketability is negatively correThe Value Examiner
lated with the issuing firm’s market value of
equity, revenues, total assets, book value of
shareholders’ equity, and net profit margin.
However, the DLOM is positively correlated
with the issuing firm’s market-to-book ratio,
stock price volatility, the block size of the
placement, and the level of market volatility
prevailing as of the transaction date.
As indicated in the Companion Guide
to the FMV Restricted Stock Study, 2011
Edition, the FMV Study is planning to add
“expected holding period” as a variable for
each transaction. This variable will incorporate the initial holding period and volume
limitations under Rule 144 and marketbased trading volume limitations. Another
variable, “premium required return,” will
also be added. This variable will provide
empirical support for the premium return
required for illiquid investments. Finally,
data will be released with respect to private
placements with short periods until registration and subsequent liquidation through
public markets.
a PracTical exaMPle
To illustrate the differences between the
two databases, we ran a practical example using a revenue range search of $5 to $50 million; no further search criteria were used. The
Pluris DLOM database search resulted in 602
transactions, including those with warrants,
343 of which did not have warrants attached.
The FMV database search returned 245
transactions; remember that these do not include warrants.
Despite this difference, both databases
contained very detailed transaction information. However, one difficulty we experienced
with the Pluris DLOM database is that only
100 transactions can be exported from the
database into Excel at one time. After a call
to Pluris, we were advised that this is due to
licensing restrictions. Although there are
avenues around this restriction (performing
multiple searches, sorting the data various
ways, etc.), it makes the transaction search
process more cumbersome.
Given this restriction, we narrowed
our revenue search to a range of $40 to
$50 million. The Pluris DLOM database
resulted in 78 transactions, inclusive of
those with warrants attached, while the
FMV database search found 22 transactions. Between the two databases there
were four overlapping transactions.
Table 1 illustrates the similarities and differences in the two databases. A number of
factors are compared to provide a perspective on the transactions contained in each
database. As illustrated in the table, the
way the discount for lack of marketability
is presented (as an overall average/median
versus broken down by holding period) and
the number of transactions found in a given
search are the primary ways in which the databases differ.
Both databases contain information
on the size of the restricted stock blocks
of stock in the event that the valuator
wants to analyze the private company
discount increment in order to make an
adjustment to their base discount for lack
of marketability.
Keep in mind that the Pluris DLOM
database only contains recent transactions,
from 2004 forward, while the FMV database
considers those dating back to 1980; thus
the distinction in holding period. Depending on the interest being valued and the subject company, one of these databases may be
better suited than the other. For instance, if
you are considering an interest with a valuation date prior to 2004, the FMV database
may be more reliable.
cOnclusiOn
Both the Pluris DLOM and FMV
Opinions databases can serve as source
information for discount determinations
in business valuations. As noted, both databases include a broad search capability
by virtue of a significant number of filtering options. This capability should prove
extremely useful to the business valuation
community in an attempt to drive comparability of source data to the specific attri-
January/February 2011
3
A P R O F E S S I O N A L D E V E L O P M E N T J O U R N A L f o r t h e C O N S U LT I N G D I S C I P L I N E S
Table 1: PRACTICAL EXAMPLE COMPARING PLURIS AND FMV DATABASES
Pluris Database
FMV Database
$44.6
$45.9
44.0
46.3
$192.2
$94.3
53.5
46.6
Mean
17.7%
N/A
Median
13.0%
N/A
Mean
N/A
13.2%
Median
N/A
11.9%
Mean
N/A
20.7%
Median
N/A
16.2%
78
22
Mean
18.6
12.3
Median
15.3
9.5
$110.3
$153.8
80.9
124.4
$10.02
$12.65
4.32
9.50
total revenues (in millions)
Mean
Median
total assets (in millions)
Mean
Median
Discount
2 Year Holding Period
1 Year Holding Period
Number of transactions
shares Outstanding (in millions)
Market Value (in millions)
Mean
Median
Price Per share
Mean
Median
butes of the valuation subject.
Interestingly, both databases yield overall median and average discounts in the 17.0
to 23.0 percent range. Moreover, explanatory information of both databases embraces
the concept of a restricted stock equivalent
discount. Once determined, the restricted
stock equivalent discount is combined with
an additional private equity increment in4
January/February 2011
ing a decision by the FMV Opinions development authors to exclude thousands
of transactions in 10 broad categories, as
defined in the study’s Companion Guide to
the FMV Restricted Stock Study, 2011 Edition (many of those being restricted stock
transactions issued with attached warrants). Whether the elimination of these
transactions unduly affects the quality of
the conclusion in one way or another is
a professional judgment required of each
valuator. However, the Pluris DLOM database, for the first time, provides the business valuation community with the most
comprehensive database available, which
should allow for the incorporation of the
user-desired empirical evidence so sorely
needed in business valuation. VE
Robert J. Grossman,
CPA/ABV, CVA, ASA,
CBA, is a partner in
Grossman Yanak & Ford
(www.gyf.com), a regional
CPA firm in Pittsburgh,
PA.
Sara L. Bergman, AVA,
provides industry, economic, and corporate research
for the preparation of business valuation reports and
other consulting projects at
Grossman Yanak & Ford.
E-mail: sbergman@gyf.
com.
tended to compensate for risk associated
with holding periods and volatility.
At first glance, the most significant
difference between the Pluris DLOM database and the FMV Opinions database is
the volume of transactions. However, it is
critical to note that the difference is primarily attributable to the criteria by which
the databases were constructed, includThe Value Examiner
A P R O F E S S I O N A L D E V E L O P M E N T J O U R N A L f o r t h e C O N S U LT I N G D I S C I P L I N E S
v A l u A t i o n
•
Using Weighted Average Cost of Taxation
to Estimate Pass-through
Entity
Value
•
By Frank A. Wisehart, MBA, CPA/ABV, CFE, CVA
I
n Gross v. Commissioner,1 the
Tax Court, and later the appellate
court, disallowed tax-affecting in
relation to valuing S corporations.
Or is that really what was decided? In
this article, I will dig deeper into Gross
v. Commissioner and the issues it raises,
and propose an alternative calculation
for addressing pass-through entity taxes.
S corporations and other passthrough entities do not pay income taxes. Their owners must pay the taxes.
tive to Gross v. Commissioner in such Tax
Court cases as Heck, Adams (see page 9),
and Wall
els have tried to level the playing field by
tax-affecting S corporations with various
models. This difference is often quantified separately and indirectly as a whole
4
number3
1 Walter L. Gross, Jr., and Barbara H. Gross v.
Commissioner
local taxes, which may be due and taxable specifically to the pass-through entity. If these taxes were
to apply, they would be deducted from cash flow in
the examples that follow before applying the differences in tax rates.
circa
4
“Caution for Gifts of S-Corp Stock,” by Bethany
InterBusiness Issues, Peoria Mag-
  
However, do hypothetical willing buyers respond to a form of entity variable
by applying a premium to the value of
an S corporation election?
BEFORE Gross
Simplistically speaking, before Gross
v. Commissioner, most valuation professionals subtracted from S corporation income a C corporation tax rate
G&J Pepsi-Cola Bottlers is an Ohio
married couples, the Grosses and the
Jarsons. After the founders died, ownership was distributed to their relatives,
with each respective clan maintaining a
to be treated as an S corporation for
jected into the future and discounted
to present value. The fact that the passthrough entities technically did not pay
income taxes was not much of a concern because the owners of these entities paid the resulting taxes. Therefore,
little thought was given to the nuances
of pass-through entity taxation. A one-
the same time, the Gross family group
entered into a restrictive transfer agreement to prevent the termination of S
corporation status for G&J.
During the five-year period from
on C corporation rates, seemed to be a
reasonable estimation of the overall tax
equally through his wife Barbara Gross,
income or the net cash flow.
DIVING DEEPER INTO Gross
At issue in the Gross case was the
fair market value of shares of G&J
Pepsi-Cola Bottlers, Inc. Walter L.
Gross, Jr., and Patricia G. Linnemann
(the plaintiffs) bequeathed corporate
stock to their respective children. The
plaintiffs valued their gifts of less than
stantially all of the S corporation earnings were distributed to its shareholders.
each of their three children. This gift
share, as calculated by a business ap-
Linnemann, and equally through her
shares of common stock of G&J to each of
their two children. The Linnemanns used
July/August 2011
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ExhIBIT A: Summary of PlaintiffS’ and irS PoSitionS in Gross v. Commissioner
Primary differences in Petitioner and irS Valuation methods
Factor
PlaintiFFs
irs
tax rate used
Hypothetical C corp rate - 40%
0.0%
free Cash flow
after applying 40% tax reduction
Pre tax - no tax reduction
discount rate
19.5% after tax rate
15.5% pre tax rate
lack-of-marketability discount
35% - based on generalities
25% - based on specific research and
additional factors
hypothetical C corporation tax rates.
ferences in the approaches used by the and the plaintiffs appealed.
Gross APPEAL
The case was appealed to the U.S.
Court of Appeals for the Sixth Circuit.
should have tax-affected the earnings of The appeal was predicated on two isG&J, and that failing to do so resulted sues, first a Daubert challenge to the
- scientific reliability and thereby ad-
Exhibit A.
knew that taxes would be due and ignored their consequences; he argued
that he had tax-affected the earnings
by applying pre-tax discount rates to
pre-tax cash flows. The court refuted
the plaintiffs’ argument, stating that the
tax-affect the expected cash flow.”
The court held that the plaintiffs had
not made a successful argument, where
they claimed, “An adjustment equal
to a hypothetical corporate tax is an
appropriate substitute for certain difficult
to quantify disadvantages….to an S
corporation election.” The Tax Court
“thorough and convincing,” compared
with the application of plaintiffs’
Gross v. Commissioner
8
July/August 2011
valuation methodology, and second
the validity of Bajaj’s valuation which
they believed was erroneous because
it included no measure to tax-affect S
corporation earnings. The testimony in
the appeal focused on Bajaj’s methodology. He considered that tax-affecting
an S corporation using a “…hypothetical
be improper.”
The appeals court was provided two
tiffs’ experts. It did not help that one of
the plaintiff experts waffled on the issue
of tax-affecting, saying that he “would
have to give further consideration to
whether he would tax-affect the G&J
Gross v. Commissioner
dissenting.
stock.” Given that the plaintiffs’ own
expert did not provide clear testimony
as to the suitability of methodology of
tax-affecting S corporation earnings,
the judges ruled that the challenge to
Bajaj’s methodology was inadmissible.
Interestingly, Senior District Judge
Clay notes in his opinion, “Although
we could imagine challenges to Bajaj’s
suitability to deliver testimony on what
tax-affecting approach buyers and sellers do not assert those claims here.” In
other words, Judge Clay seems to note
that the taxpayers focused on a Daubert
suitability-of-methodology argument
rather than focusing on that amount
that hypothetical willing buyers and
sellers were, or might have been, considering. Since the latter argument was
not made by the plaintiffs, it was not
considered on appeal.
After confirming admittance of
Bajaj’s testimony, the appeals court
focused on the issue of tax-affecting
the S corporation’s earnings. The issue before the court was whether or
not failing to tax-affect was “clearly
erroneous.” The court, citing Estate of
Newhouse, noted that the alternative
valuations presented by taxpayers and
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A P R O F E S S I O N A L D E V E L O P M E N T J O U R N A L f o r t h e C O N S U LT I N G D I S C I P L I N E S
been a surprise affirmation of the Tax
Court’s ruling.
Gross v. Commissioner is a landmark
case in tax-affecting S corporation earnings for the purposes of determining
their business value. Both the tax and
vantaged status an S corporation offers.
However, faced with no alternatives besuch, “where there are two permissible
views of the evidence, the fact finder’s ration tax-affect and no tax-affect, the tax
choice between them cannot be clear- court chose the latter. On appeal, this was
ly erroneous.”9 “The court found that not determined to be cause enough for a
the principal benefit [that] sharehold- reversible error. Taxpayers’ application of
ers of an S corporation expected was
reduced taxes and it saw no reason rate to an S corporation’s earnings was
why that savings ought to be ignored not upheld.
as a matter of course in valuing an S
corporation.” Ultimately, the court ALTERNATIVE APPROAChES:
Heck AND AdAms
Other cases have attempted to revaluation, with an effective tax rate for
solve the S corporation tax-affecting issues. The experts in these cases have takpre-tax earnings.
The Gross plaintiffs in their appeal
focused on two issues: the admissibil- the S corporation pass-through status.
In Estate of Richie C. Heck vs.
ity of the expert testimony of Bajaj and
the alleged clearly erroneous error of Commissioner,11 neither the plaintiff
the tax court for failing to tax-affect nor the respondent’s expert tax-affectG&J earnings. The first issue did not
cause the appellant court much heart- Inc. The Tax Court, in applying cerburn; they accepted the methodology tain aspects of each expert’s valuation,
employed by Bajaj. The second issue
was narrowly decided on whether or for “risks associated with Korbel’s status
not the lower court’s decision to not as an S corporation.”13
tax-affect earnings was “clearly erThe plaintiff ’s expert in Estate of Adroneous.” Taxpayers’ experts eased ams, Jr. v. Commissioner14 attempted to
the appellant decision by stating that resolve the tax-affecting issue through
they might not tax-affect earnings if
they had the assignment to do again. 11 Estate of Richie C. Heck, Deceased, et al. v.
Thus losing on appeal should not have Commissioner
as to the methodologies used to arrive
at the valuation amount. The choice
of appropriate valuation methodology for a particular stock is, in itself,
a question of fact.”8 If the methodology presented by Bajaj was permissible,
then the lower tax court decision in fa-
8 Estate of Newhouse
O’Malley v. Ames
9 Anderson v. Bessemer City
United States v. United States Gypsum Co
Gross v. Commissioner, op cit.
  
-
a California corporation, makers of Korbel champagne and other wine and spirits.
13 Estate Heck v. Commissioner
14 Estate of William G. Adams, Jr. v. Commissioner
alternative means. Plaintiff ’s expert initially calculated the after-tax, IbbotsonThis afterwas converted to a pre-tax rate of 31.88
percent. The Tax Court rejected this approach; it determined that since the S
corporation did not pay taxes, the aftertax discount rate derived matched the
S corporation’s after-tax cash flow. Ac-
tion decision.
delAwAre open mrI
case, Delaware Open MRI (aka Delaprovides additional
guidance on tax-affecting S corporations. In this litigation, the “Kessler”
ity shareholder interest, the “Broder”
of the entity. The Broder group, seeking to divest itself of the Kessler interest, formed a new, wholly owned entity,
Delaware Acquisition Group, LLC. Delaware Acquisition Group then made an
The former hired a business valuation
expert to value the purchase price. As
board by virtue of its majority position,
the Broder group approved the sale to
its alter ego, Delaware Acquisition. The
Kessler group objected to the price calculated by the Broder expert and hired
Valuation Yearbook, a frequent source guide for developDelaware Open MRI Radiology Associates,
P.A., v. Howard B. Kessler, et al., with counterclaim,
July/August 2011
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TABLE 1: Strine’S Solution for tax rate in Delaware open
mri deCiSion
s corP
c corP
s corP
Valuation
$100
$100
$100
40.0%
0.0%
29.4%
60
100
70.6
income Before tax
Corporate tax rate
available earnings
dividend or Personal income tax rate
(15%)
9 (40%)
$51
available after dividends
40
(15%)
$60
10.6
$60
its own expert to value the transaction.
Given the wide disparity between the “embrace[d] the reasoning of prior detwo expert opinions of value, a lawsuit
between the parties was filed in the S corporation structure can produce a
material increase in the economic value
Chancellor Leo Strine.
for a stockholder and should be given weight in a proper valuation of the
S corporation earnings was a key dif- stockholders interest.”18
ference in the approaches and resulting
If this sounds familiar, it is because
values derived by the Broder and Kessler we are at this same crossroad as Gross v.
experts. The Broder expert used a hy- Commissioner. In Gross, given the same
two choices, the Tax Court chose the
percent, while the Kessler expert did not expert who did not tax-affect earnings.
tax-affect earnings.
The Gross court, in failing to tax-affect,
relied in part on the testimony of plainthe Kessler expert’s failure to tax-affect tiff’s expert, who stated that he “might
the S corporation earnings, stating:
not tax-affect” G&J pre-tax income if he
had the assignment to do over again.
It is necessary to use a method that
considers the difference between the that failing to tax-affect an S corporavalue that a stockholder of Delaware tion’s earnings would result in a remedy
to the Kessler Group that denies the reality that each shareholder owes taxes
the value that a stockholder would on his proportional interest in Delaware
S corporation.
sler Group receiving a higher per share
18
10
July/August 2011
See Adams
Gross
Heck
value from the court than it could ever
holder. To ignore personal taxes would
overstate the value of an S corporation
and would lead to a value that no rational investor would be willing to pay to
acquire control.19
Having reached the same tax-affecting decision point as in Gross v. Commissioner
the road not traveled to resolve the dispute. In doing so, he devised a table to
ing a C corporation and an S corporation status as shown in Table 1.
In the “C Corp” column of Table 1, the
uted to the shareholders. The shareholders
are then taxed on the distribution at the
this C corporation structure, the benefit
in earnings would not be taxed at the corporate level. Instead it would flow to the
individuals, who would be taxed at their
As a result, assuming all pre-tax income
was distributed, the benefit to the sharecellor Strine simply solves for the appliS corporation earnings to its shareholders
before the C corporation’s dividend rate.
tax-affect deduction for S corporation
ology and awards the Kessler group this
19 Delaware Open MRI Radiology Associates, P.A.,
v. Howard B. Kessler
  
A P R O F E S S I O N A L D E V E L O P M E N T J O U R N A L f o r t h e C O N S U LT I N G D I S C I P L I N E S
amount plus additional compensation reS CORPORATION PREMIUM
MODELS
The Delaware Radiology case
spawned the advent of a previously never-before-imagined business valuation
variant, the “S corporation premium.”
It could be defined as the difference between C corporation shareholder net
earnings and S corporation shareholder
net earnings. In its simplistic form, using Delaware Open MRI’s Table 1, it is
expressed as follows:
S corporation premium = (S
corporation cash flow - C corporation
cash flow) / C corporation cash flow =
($60 - $51) / $51 = 17.6%
In production, the C corporation tax
rate is applied to S corporation earnings. Then the S corporation value is
stepped up by the derived S corporation premium. This is the basic calculation premium model.
Given the fact that a purchaser could
create a new S corporation for a moderate
fee, do S corporation structures really sell
for a premium? Buyers of corporations do
not apply a binomial model, which would
add a premium to the entity value based
on whether or not it has a tax-advantaged
right by subtracting the applicable tax
tively expressed throughout this article as a more
general, pass-through entity premium model. In
the example that follows, we use an S corporation,
and therefore refer to the premium as an S corporation premium.
differences between the income tax treatment of S
corporation and C corporation shareholders.
  
TABLE 2: ComPuting indiVidual CoSt of taxation
assume: Highest individual tax Bracket
Columbus ohio individual
ownership
Variables
llc
$100.00
untaxed income Passed-through to individual
total taxes if owned by an individual
federal individual tax rate
35.00%
$35.00
State of ohio tax rate
6.24%
6.24
local Columbus city tax rate
2.50%
2.50
leSS: federal tax benefit from deducting
state and local taxes
-2.18%
(2.18)
individual ownership level taxes
41.56%
$41.56
rates attributable to the entity structure.
The observed premiums for entity type
tional cash flow available from the lightened tax burden.
DEVELOPMENT OF wACT
MODEL
With this in mind, if we review the
Strine, he solved for the tax rate. He
did not create a premium for the form
of legal entity. The model he developed,
independent of the two proposed valuations, computed an effective tax rate
and then subtracted this amount from
sulting cash flow.
Strategically, there are two types of
purchasers: individuals and legal entities. The two possible tax structures are,
therefore, individual rates and corporate
world of a hypothetical willing buyer and
seller, their universe is really more local
than regional or national. Entities many
times are formed in local, tax-advantaged districts in order to enhance their
overall value by reducing the amount of
taxes paid and increasing the cash flow.
Accordingly, incorporating these variables is an important step in developing
appropriate taxing district rates.
Tactically, we can calculate the rate
an individual and C corporation would
the computation of taxes due by an individual on a Columbus, Ohio-based S
corporation structure.
lists the variables for S corporation income tax rates at the highest individual
tax rate if the entity were owned by an
individual. The second column shows
the resulting taxes that would be due by
July/August 2011
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A P R O F E S S I O N A L D E V E L O P M E N T J O U R N A L f o r t h e C O N S U LT I N G D I S C I P L I N E S
TABLE 3: ComPuting C CorPoration CoSt of taxation
assume: Highest Corporate tax Brackets
Columbus ohio C Corp /
Shareholders
Variables
c corP
C Corporation income taxes:
federal C corporation tax rate
35.00%
$35.00
State of ohio C corporation tax rate
0.00%
-
local Columbus City C corporation tax rate
2.50%
2.50
total C Corporation level taxes
37.50%
$37.50
TABLE 4: ComPuting indiVidual ComPonent of C CorPoration
diStriButionS
Variables
c corP
$100.00
Table 3
Table 3, the federal, state, and local taxes
due from ownership at the C corporaNext, the taxes that result from
distributions to individual ownership
interests of the C corporation must
be computed. This is shown in Table
4. Within this computation, some assumptions must be made. In Table 4,
37.50
from the C corporation distribution
are calculated by adding the individual
$62.50
C corporation Post-tax earnings available for
distribution
Post-tax income distributed to individual
shareholders
60.0%
$37.50
federal dividend tax due by C Corporation
shareholders
15.00%
5.62
State dividend taxes due by C Corporation
shareholders
6.24%
2.34
local dividend taxes due by C Corporation
shareholders
0.00%
-
federal tax benefit from deducting state &
local taxes
-0.94%
(0.35)
total dividend taxes Paid by Shareholders
20.30%
$7.61
July/August 2011
In Table 3, we compute the C corporation tax rates for comparison later to
the individual ownership tax rates.
C corporation tax earnings would be
passed to the individual owners of this
entity. Based on this distribution of
Columbus ohio C Corp /
Shareholders
12
This was computed by adding the federal,
state, and local rates and subtracting the
$100.00
Pre-tax C corporation income
less: total C Corporation level taxes
tax income. In this example, the total
ables column) if the S corporation was
for state and local taxes paid. In most cases, both
partnership and S corporation income taxes are
paid at the individual level. Generally, however, S
corporations pay local taxes only at the S corporation level and not at the individual level. Partnerships are generally the opposite: they pay local taxes
at the partner level and not at the partnership level.
state taxes paid if you are computing the effective
tax rate of an S corporation. Alternatively, include
are computing the effective tax rate of a partnership. To calculate the benefit, multiply the Schedule
A amount applicable to state and local taxes paid
-
  
A P R O F E S S I O N A L D E V E L O P M E N T J O U R N A L f o r t h e C O N S U LT I N G D I S C I P L I N E S
taxation for the C corporation structure
TABLE 5: ComPuting total effeCtiVe tax rate
attriButaBle to C CorP StruCture
Columbus ohio C
corporation tax rates
recap: Total C Corporation Taxes:
total C corporation level taxes
Table 3
37.50%
total dividend taxes Paid by Shareholders
Table 4
7.61%
45.11%
C Corporation tax rate
By adding together the C corporation level taxes and individual taxes on
C corporation distributions, we proto the C corporation structure.
By reviewing the likelihood of hypothetical willing buyers as C corporations (or alternatively, the conversion
of an S to a C corporation status) against
the likelihood of hypothetical willing
buyers as individuals, we can produce
a weighted average cost of taxation
Multiplying the calculated individual
weighting produces a tax rate attribut-
TABLE 6: ComPuting WaCt
assume: Highest individual and
Corporate Tax rates
WeighT
tax
rates
Weighted
aVerage
cost oF
taxation
Tax rate Distribution Percentage
Necessary for Valuation Purposes:
Hypothetical Willing Buyers as
individuals
80.0%
41.56%
33.25%
Hypothetical Willing Buyers as C
Corporations
20.0%
45.11%
9.02%
Weighted average Cost of
taxation (WaCt)
  
this amount produces a total WACT to
the entity’s taxation obligation from the
perspective of the hypothetical willing
buyer or seller. This computation is in line
with the expectation of future cash flows
from potential acquirers. It is also consistent with the opinion of other valuation
42.27%
- earnings. In other words, of the original
ule A benefit for payment of state taxes
individual taxes resulting from C corpoTable 4.
percent. Adding the C corporation
Adding the C corporation taxes and
the individual taxes on C corporation
distributions produces a total cost of
Principal value drivers are, as they
should be, the amount of cash distribution the shareholders expect to
receive, the expected holding period,
and, most importantly, the pool of
likely buyers.
the S corporation election is terminated in nearly
all cases. The entity is then taxed at the C corporation rates.
July/August 2011
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tion as derived in table six to produce
TABLE 7: CalCulating tax rate differential
implied Premium Of Ownership
C Corporation tax rate
Table 5
45.11%
WaCt tax rate
Table 6
42.27%
Continuing in Table 8, we subtract
the C corporation after-tax cash flow of
-
2.84%
tax rate ownership Structure differential
the WACT methodology. Dividing this
Using this information, we can calform of entity premium from the above culate the after-tax S corporation income available to both a hypothetical C
between C corporation rates and individ- corporation and WACT rate structures.
ual ownership rates. By subtracting the Table 8 recaps the available cash flow to
- each tax-affected entity. Column one
subtracts the C corporation tax rate of
available to the pass-through structure.
for the form of entity ownership based
on the WACT rate structure.
Using this information, the WACT
model can be reconciled to the previously
discussed S corporation premium model.
This is illustrated in Table 9. Using our
the WACT model in column one with the
In column two, the WACT model sub- basic S corporation premium model in the
“S corp” column. In the “WACT” column,
TABLE 8: Quantifying imPlied Premium of oWnerSHiP StruCture
c corPoration
tax rates
Wact tax
rates
Calculating the implied Premium of
Ownership structure:
Pretax income
$100.00
$100.00
applicable tax rates
45.11
42.27
available Cash flow By ownership type
$54.89
$57.73
Cash flow from WaCt ownership Structure
$57.73
Cash flow from C Corporation Structure
54.89
additional Cash flow available to S
Corporation
2.84
divided by C Corporation Cash flow
54.89
Using a valuation multiplier of five times
post-tax cash flow, we arrive at a final
the WACT method using one step (by first
calculating an appropriate weighted average taxation rate).
In the S corp column of Table 9, we
subtracted the previously discussed C corpost-tax income. Next, we multiplied the
tax valuation multiple of five to produce a
pre-S corporation premium method value
of entity implied premium, as shown in Tathese values together produced the same
implied Premium of ownership Structure
5.17%
based on post-tax cash flow.
14
July/August 2011
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A P R O F E S S I O N A L D E V E L O P M E N T J O U R N A L f o r t h e C O N S U LT I N G D I S C I P L I N E S
due relative to a hypothetical sale of securities. The WACT model does allow the
valuator to continue his or her valuation
procedures in the normal course by deducting the calculated tax rate in a single
- step from pre-tax earnings without caltity. Would hypothetical willing buyers or culating a premium for entity structure.
Calculating an implied pass-through enan entity based on its form of structure? tity premium, in addition to the WACT
model, supplements and quantifies the
change the entity structure much more additional value attributable to the taxeconomically through legal counsel.
advantaged status. This lack of value
This additional premium for valuing quantification is an issue cited by Judge
pass-through entities describes capital- Beghe in his opinion in the Estate of Wall
v. Commissioner, namely that S corporaowners. It is a correction to intercept tions “are generally not subject to a secthe proper tax rate.
ond level of tax….This could make an
The WACT model quantifies the tax S corporation at least somewhat more
rate applicable to the pass-through entity. valuable than an equivalent C corporaThe WACT model does not attempt to tion….The factors we must consider are
calculate the gains or taxes that may be
Both methods produce the same valuation result. The difference is in how they
are calculated. If pre-tax cash flow were $1
million, the S corporation premium mod-
side of the WACT model computation.
-
TABLE 9: RECONCILING wACT AND PREMIUM MODELS
Wact
Method
s corP PreMiuM
Method
reconciliation to s corporation premium
Pre-tax income
$100.00
$100.00
Blended tax rate
42.27
-
C corporation rate
-
45.11
Post-tax cash flow
57.73
54.89
Valuation multiple
5.0 x
5.0 x
Value before S corporation premium
288.64
274.46
S corporation implied premium - 5.17%
n/a
14.19
Calculated Value of ownership interest
$288.64
$288.64
  
the factors that an informed buyer and
seller would take into account.”
The weighted average cost of taxation
model provides for a blending of tax rates
from the viewpoint of hypothetical willing
buyers and sellers. However, rather than
flow available to tax-advantaged entities as
a separate calculation, the WACT model
calculates the results directly by determining the appropriate tax rate. By using
both the WACT and pass-through entity
premium models in tandem, the valuator
can blend assumptions about likely entity
structures, calculate the appropriate tax
rates (and resulting cash flows), and quantify the value difference between S corporations and C corporations. The WACT
model is consistent with prior court opinions that place an emphasis on two primary
factors: (a) who constitutes a hypothetical
willing buyer or seller, and (b) what might
they consider when pursuing their respective business purchase decisions.
VE
Frank A. Wisehart,
MBA, CPA/ABV, CFE,
CVA, is the director of
business advisory services
at Schneider Downs, an
audit, tax, and advisory
firm in Columbus, OH,
and Pittsburgh, PA. He
has over 20 years of experience in business
valuation, management consulting, litigation support, forensic accounting, fraud
investigation, transaction due diligence,
and expert testimony. E-mail: fwisehart@
schneiderdowns.com. (The opinions expressed herein do not necessarily reflect
those of the shareholders or employees of
Schneider Downs or related companies.)
John E. Wall v. Commissioner, T.C. Memo.
July/August 2011
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v A l u A t i o n
•
The Cost Approach to Fair Market Value—and the
Inclusion of Intangible Assets—for Physician Practices
•
T
By Kameron H. McQuay, CPA/ABV, CVA
he valuation of professional healthcare service entities, specifically
physician practices, carries with it a variety of methodologies, standards, and regulations that are of interest to both the valuation professional and the healthcare provider. While all three business valuation
I’ll begin by exploring three conceptual
processes, starting with an economic perspective. That is, from a practical business
perspective, where is economic benefit derived and how is this benefit to be valued?
sional healthcare service entities under
a cost or asset approach, even when an
income approach yields no intangible
value. I am leaning to the notion that
maybe it is time that we, as a profes-
ECONOMIC PERSPECTIVE
Consider two medical practices,
side by side, located in Anytown, USA.
Practice A is a brand-new physician
practice, just opened this morning; it
has no scheduled patient visits and has
specifically workforce in place and the
value of patient charts, when valuing
such entities.
and furnishings.
Next door, Practice B has been in
the medical profession, at this loca-
and should be considered in valuing
any professional service entity, the preferred method usually involves capitalunder an income approach. However,
should that historical or projected cash
flow produce a negative benefit stream,
a cost or asset approach will most likely
be the default method.
When this occurs, there are conflicting opinions as to whether or not
it is appropriate to record and value
assets that are generally considered intangible under the cost approach. Opintangible assets without identifying
a corresponding income stream state
that sole reliance on the cost approach
is not appropriate, and that intangible
assets require that there be some sort
of economic return, usually in the form
of income or cash flow. Advocates of
cash flow stream point to the economic
reality of “real world” transactions, a
basic premise under the cost approach,
and the legitimate nature as to how the
value is computed.
I would like to explore with you
whether or not it is acceptable to recog  
ExhIBIT 1
Practice a
Practice b
net revenue
0
$400,000
expenses
0
(250,000)
net income Before Phy Comp adj.
0
150,000
Phy Comp adj.
(120,000)
(120,000)
adjusted Cash flow
(120,000)
0
0
0
indicated Value
ExhIBIT 2
Practice a
equipment & furniture
less liabilities
indicated Value of net assets
Practice b
$200,000
$200,000
0
0
$200,000
$200,000
July/August 2011
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A P R O F E S S I O N A L D E V E L O P M E N T J O U R N A L f o r t h e C O N S U LT I N G D I S C I P L I N E S
pens to have the industry-mean number of patient visits per year, as well as
average production and net revenues
for the industry. Its overhead is at the
industry average and the physician
earns the standard compensation for
this type of practice according to intice B disposed of all its old equipment
and furniture and purchased new fixUnder the income approach, both
practices are worth the same amount,
enues that exceed expenses before
physicians’ compensation (owners’
compensation), the industry average
compensation wipes out any practice
value based on the discounted future
income method, as shown in Exhibit 1.
The cost approach yields the same
value. All things being equal, both pracwhich practice would you purchase?
I believe that the vast majority of
qualified, informed, and willing buyers would choose Practice B over Practice A. Why is this? Having an existing
of maintaining an established patient
base, combined with a trained and experienced workforce capable of sustaining production, is more valuable than a
practice that has just opened its doors
this morning.
And while strict adherence to both
the income and cost approaches say
that these practices are worth the same
amount, economically we all know they
are not.
Then how do we reflect this economic reality, that Practice B is worth
more than Practice A, using our valu18
July/August 2011
ation methodologies? I believe a reasonable direction would be to make an
adjustment to physician compensation
under an income approach, noting that
many potential buyers, other physicians
and healthcare entities, may be willing
to take less than comparable compensation to avoid the cost of beginning
a practice from scratch. However, another way to reflect additional value is
under the cost approach.
APPLICATION OF ThE
COST APPROACh
Here is the general definition of the
asset- or cost-based approach:
…the value (of the) business is based
on the difference between the fair
market value of the business assets
and its liabilities.1
While the specific process may differ,
assets and liabilities are usually adjusted
to fair market value, and tangible and
intangible assets are typically included
as part of the total asset value.
James Hitchner states, in his book
Financial Valuation, under the section
titled Unrecorded Assets and Liabilities:
The appraiser performs some reasonable due diligence to determine whether any assets or liabilities may exist that
are not recorded in the accounts. Unrecorded assets may take the form of
intangible assets or claims.
Fundamentals, Techniques & Theory
plications and Models
Financial Valuation – Ap-
Therefore, when adjusting assets and
liabilities to reflect fair market value, it
is common to have a value assigned to
an intangible asset under the cost approach.
Specifically in the case of a physician
practice, there could be intangible assets
unrecorded on the financial statements
(if they exist) or on the tax returns. Such
intangible assets could include the following, among others:
Telephone number
Patient charts
Trade name
Patent
In-place staff workforce
In-place physician workforce
As part of any cost methodology, the
valuator is supposed to look for unrecorded assets and liabilities. Shannon
Valuing a Business as follows:
…the analyst will identify which unrecorded (sometimes called “off-balance
example, intangible assets are not
normally recorded on financial statements prepared under GAAP. However, they often represent the largest
component of overall business enterprise value in many industries.3
common source of unrecorded assets
is the difference between cash and acsmall professional businesses to adopt
the cash basis of accounting, and most
3 Shannon P. Pratt, Valuing A Business
  
A P R O F E S S I O N A L D E V E L O P M E N T J O U R N A L f o r t h e C O N S U LT I N G D I S C I P L I N E S
ExhIBIT 3
Position
a
b
c
d
e
total comp w/
benefits
est. recruiting &
training
starting efficiency
(months)
lost Productivity
total cost
avoided (b+d)
lPn
35,000
7,000
3 mo
2,187
$9,187
office Staff
25,000
5,000
6 mo
3,125
8,125
17,312
less risk of departure (25%)
(4,544)
12,984
less taxes (35%)
(4,544)
8,440
do because the cash method is easier
to understand and may serve to reduce
some taxes. Under the cash method,
revenues are recorded when received
rather than earned, and expenses are
deducted when paid rather than incurred. Therefore, a typical unrecorded
asset for a cash-basis taxpayer is accounts receivable. When this occurs,
the valuator would need to ascertain if
any services have been rendered prior
to the valuation date where payment
has been delayed until some point in
the future.
Additionally, there may be some other casualties of the cash method where
a cash-basis taxpayer is encouraged to
currently deduct expenses that would
ation approach. A common item would
be depreciation.
Whether or not a cash-basis taxpayer has fully depreciated a piece of equiperate a tax deduction, a valuator will not
them as an “unrecorded” asset, but also
  
time amortization Benefit factor
1.128
fmV in Place Staff Workforce
$9,520
ExhIBIT 4
Patient Charts
2,000
total number of Patients
Cost to Produce
Supplies
2.50
Copying (50 pages)
3.50
Staff time
4.00
total Costs
total Value of Patient Charts
reassess the value of these items in light
of what may be considered fair market
value as of the date of valuation.
Likewise, the recording of workforce in
principles. When employees are recruited,
hired, trained, and educated, under the
cash basis of accounting, these costs are
expensed as paid. There are no cash-basis
such costs and forgo a tax deduction.
$10
$20,000
However, just because they deducted
these costs, does not mean that there was
no future benefit created. If such individuals had been producing something classified as inventory, a full costing method
would have required that their wages,
benefits, training, and other expenses be
the balance sheet. And as a valuator, we
ing such an asset under the cost approach.
July/August 2011
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A P R O F E S S I O N A L D E V E L O P M E N T J O U R N A L f o r t h e C O N S U LT I N G D I S C I P L I N E S
Similarly, pulling back costs that were
incurred in recruiting, hiring, training,
and educating an experienced workforce capable of sustaining production
seems to be in line with what valuators
already do with other unrecorded assets
(see Exhibit 3).
The same position can be taken with
patient charts. In valuing patient charts,
it is important to note that we are not
valuing the future or past revenue generated or represented by the person of
whose chart we are valuing. Instead, we
are valuing the reproduction cost of the
value of what it took to assemble that
chart in the first place (see Exhibit 4).
(staff workforce in place and patient
charts), I believe it can be appropriate,
as with any other asset or income-andexpense item, that the valuator nor-
industry standard based on work hours,
valid measurement says that Company
in-place staff workforce calculation
Let me also talk about what does
not make sense to me. Take for example the inclusion of intangible value
for a telephone number under the cost
approach. I concede that a telephone
number could be in fact an intangible
asset and, practically speaking, probably does have some “value” even if
the discounted cash flow approach at
the enterprise level shows no value.
All things being equal, if I were purchasing a business valued under the
20
July/August 2011
cost approach, I would rather have
the established phone number for that
business than not. We could probably
apply some method to obtain a value
for this phone number, even though
the entity as a whole shows negative
cash flow.
However, based on the methodology discussed above regarding inclusion of intangible assets, the value of
the telephone number under this approach would be the historical cost of
obtaining that telephone number. The
fact that over time patients may have
become familiar with the telephone
number and the company has used it in
its advertising does not supersede the
negative cash flows being generated
from an income approach. At best, the
telephone number is worth its historibenefit demonstrated by a future cash
flow stream.
This is truly the preverbal slippery
slope when it comes to valuing intangible assets under the cost approach.
concerned how it may get applied and
I am also concerned how in-place
workforce is valued, specifically inplace physician workforce, but for
different reasons. In-place physician
workforce has all the same characteristics as in-place staff workforce. The
recruiting, hiring, and training aspects are similar and carry with it unless, in my opinion, in-place physician
workforce should not be included as
an intangible asset under the cost approach for two reasons: commercial
reasonableness and physician compensation agreements.
COMMERCIAL REASONABLENESS
I have tried to stay away from the regulatory requirements in valuing healthcare entities mandated by various govsuch as Stark and the Anti-Kickback
Statute, as this is an entirely different
discussion—with the exception of one
concept as it relates to physician compensation: commercial reasonableness.
An arrangement will be considered
“commercially reasonable” in the
absence of referrals if the arrangement would make commercial sense
if entered into by a reasonable entity
sonable physician (or family member or group practice) of similar
scope and specialty, even if there
were no potential designated health
services referrals.
The test for commercial reasonableness is a threshold which is distinct
from that of the standard of fair market
value. While fair market value looks to
the reasonableness of the dollars paid
for the entity, the standard of commercial reasonableness looks to the reasonableness of the business arrangement in
total. Consequently, the purchase of an
entity combined with a physician compensation package as part of a purchase
arrangement may be viewed simultaneously as within a fair market value range
but also be determined to be commercially unreasonable.
the owner is also the main provider.
Such is the case for many physician
practices. The physician is the engine
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A P R O F E S S I O N A L D E V E L O P M E N T J O U R N A L f o r t h e C O N S U LT I N G D I S C I P L I N E S
that runs the practice and thus generates the revenue or income stream. How
many times have you purchased a car
without the engine? Is it commercially
reasonable to purchase a physician
practice without the physician? Would a
non-physician investor purchase a physician practice without the physician or
without the intent of placing a physician
in the practice?
Clearly there are times when a physician may be leaving a community and
the assets are parceled out and sold—
under the cost approach. But many purchasers are buying a physician practice
because the physician is staying on,
and the practice is a going concern. If
the physician is not coming with the
practice or there is no intent of placing
a physician in the practice, then do we
really have a deal?
How many times do we see in a
commercial transaction, even under
the cost approach, that management is
“required” to stay on or signs a consulting agreement to “transition” the business. If top-line management is not part
of the deal, if the engine does not come
with the business, then is it commercially reasonable?
The second factor speaks to a core
component in many sales of physician practices: physician compensation
agreements. Generally, part and parcel
to a fully executed sales transaction for a
physician practice is an employment or
contractor agreement with those physicians. These employment agreements
are typically negotiated concurrently
with the sales transaction, the rate of
ly have I seen a physician practice sale,
where the physician stays with the practice, where the employment agreement
was not determined in advance of the
  
sale (and executed simultaneously with
the sales agreement).
Consequently, if both parties, in
good faith, have already negotiated an
employment contract with fair market
value compensation, and in effect the
physicians have already been recruited
and hired, then why should the historical cost of recruiting and hiring the
business valuation? Would this not be
double-dipping?
When both parties negotiate a fair
market value compensation package,
they have in effect already determined
what the fair market value of recruiting and hiring physicians for that practice should be. Therefore, they have
included that value in the compensation package and not in the business
valuation. Including in-place physician workforce as part of the business
valuation when both parties plan to
or have already executed an employdouble-count the economic benefit attributed to the physicians, and brings
into question the commercial reasonthese reasons, I do not support including in-place physician workforce under
a cost approach.
As valuators, we have a duty to apply
market-based and economic principles
in arriving at a value that not only meets
the technical definition of the premise
of value, but also supports general valuation theory. Bound by our standards,
we need to ensure our conclusions are
not only well supported but make financial sense. The recording of intangible
assets on a cost-approach basis does
make financial sense to the degree that
such assets provide or should provide a
future benefit to the new owner or pur-
chaser. Specifically, the inclusion of inplace staff workforce and patient charts,
as computed above, reflects a true economic gain for the new owner and thus
complies with longstanding principles
and theory commonly used in the valuation community.
assets in the absence of an income stream
is controversial at best. I welcome your
thoughts and ideas on this subject in the
hopes of providing greater clarity and
direction for future valuations.
VE
Kameron H. McQuay,
CPA/ABV, CVA, is the
director of the Physician
Specialty Service Group
at Blue & Co., LLC. He
is responsible for coordinating all services to
physicians and their
group practices. In addition, he regularly performs integration and valuation
services for healthcare entities. McQuay
has more than 20 years experience in
consulting in the healthcare arena. For
the past 18 years, he has worked exclusively with hospitals, physicians, and
their practices. He has consulted on all
aspects of healthcare management, including revenue enhancement, coding
and billing compliance, analysis of practice procedures, start-up of new practices, accounts receivable management,
HIPAA, managed care contracting, and
healthcare networks, as well as providing general financial and tax support.
E-mail kmcquay@blueandco.com.
July/August 2011
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v A l u A t i o n
•
Resolving Total Beta
•
T
By Sarah von Helfenstein, MBA, AVA
he business appraisal profession has been inundated with articles and
discussions defending or rebutting Total Beta, and discussing various
related aspects of capital market theory. Just since I began writing this
article (during the peer-review and revision process), there have been
several new articles published on these topics in The Value Examiner and Valuation
Strategies. New entries have appeared in
Wikipedia that place Total Beta into the
section on “market Beta” and indicate
that business valuators have validated
it and use it with comfort. Much of the
discussion is convoluted and, alas, much
misstates fundamental concepts and
theory. There appear to be as many opinions regarding every aspect of modern
portfolio theory and its application (or
lack thereof ) to privately held companies as there are writers to opine.
I propose we step outside the turmoil
for a few moments and revisit our theoretical foundations in finance, to see if
they provide some guidance in navigating the increasingly tortuous thicket of
try to address each statement and opinion now extant, I will select a very few
basic ones for our review.
The intention here is not to stifle innovation or discourage free thought or
My hope is to ensure that our innovations and challenges can stand the test
of rigorous examination in the light of
proven theory and practice. With this
in mind, I offer a couple of introductory comments:
  
While many business valuation
professionals find financial theory
exasperating, the current explosion of new approaches to theory in
our field requires us to understand
enough fundamental theory to assess the worth of new offerings.
If we are going to use modern portfolio
theory at all, even in developing a cost
of capital using a build-up method, we
need to thoroughly understand the
relationships it embodies, so we can
avoid violating them while trying to
get to a result we have in mind or need.
STRUCTURE, GOALS, PREMISE
In this article I will review the theory
and calculations underlying several key
propositions in finance that are fundamental to the Total Beta debate. I will address certain propositions by Total Beta
drew M. Malec, PhD. I will then present
a meaningful resolution of the debate.
(This article is a follow-up to my earBusiness Valuation Review
I will begin by stating my position in
two parts. Statement 1: No matter what
arguments are used to justify a set of
equations that underlie proposed new
applications of theory, if those equations
violate known and settled fundamental
principles, and it cannot be demonstrated that they create a new universe
of theory and principles (e.g., the theory
of relativity v. Newtonian physics), they
should not be used.
critical fundamental principles and its demonstrable lack of creation of a new universe of theory, I suggest that Total Beta
should not be accepted by our profession
as a market Beta substitute for quantifying
the total cost of equity, or as a proxy for
the “total risk” of privately held companies,
or even as “another useful insight into the
historical risk profile of a proxy firm.”1
While I feel strongly enough about
these statements that I can make them
so definitively, my goal is to present concepts, formulas, and logic with which you
can decide for yourself what your position will be. I invite your comments in any
way you would like to convey them to me.
STATISTICS, STRUCTURE,
EqUATIONS
leg is statistics. The second is conceptual
structure, provided in written theory—a
kind of philosophy of the markets and
The Value Examiner,
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things financial. The third leg is a set of
equations that express this conceptual
structure and use statistical relationships where they are relevant for saying
what needs to be said.
As with any three-legged stool, chop
off one leg and the stool tumbles. The
following discussion moves across all
three to highlight key attributes of each,
and also demonstrate their reliance on
each other. We begin with statistics, the
quantitative language of finance.
LEG 1: STATISTICS
The formulation and use of statistics
is not strictly mathematical, though it
employs cardinal numbers in equations
that appear mathematical. It is the probabilistic study of relationships between
data sets and data in a set. It is based on
the gathering, description, and comparison of ranges of data (populations and
samples). The results of statistical analysis are not solutions; they are pictures of
probabilities of certain relationships oca specific range or ranges. Statistics enables us to gain general understandings,
rather than build irrefutable conclusions.
NORMALIzING
A critical statistical concept is that of
income statement or balance sheet. StaMost of the computed statistical descriptors differ in the scales in which their valscale before proceeding with further statistical analysis. Examples follow.
Example 1
normal distributions in order to com24
July/August 2011
pare them. There are as many different
normal distributions as there are combinations of means and variances. To
compare distributions, we want them to
be stated in a common set of parameters
(i.e., means and standard deviations). So
we subtract the expected value (mean) of
the distribution from the actual variable
value, and divide the result by the stancess produces a distribution with a mean
called the standard normal distribution.
Example 2
covariances so that we can interpret
them. A covariance is a measure that
indicates how much two variables vary
together. The equation for covariance is:
Cov (x,y) = 1/N * Σ[(xi – E(xi))(yi – E(yi))]
where E(x) and E(y) are the “expected
values” of xi and yi, that is, the means of
the probability distributions used to describe xi and yi. Note that xi and yi are actual, measured values at a point in time.
But covariances are hard to interpret and compare, because their values
depend on the scales of measurement
(i.e., the means and standards of deviation) used for x and y, which may differ
the product of the standard deviations
of the x and y variables. This results in
called a correlation or correlation cocovariance, taking the following form
(where ρ is the symbol for correlation):
ρ(x,y) = [Cov(x,y) / σ(xi) σ(yi)]
DERIVATION OF CAPM BETA
CAPM Beta (the Beta suggested by and
used in the capital asset pricing model) can
be derived using statistics in several ways.
The most familiar are: (a) a statistical expression which relates the covariance of
a security’s or portfolio’s returns with the
market’s returns, and (b) a linear regression, which is a statistical “approach to
modeling the relationship between a scalar
variable y and one or more variables denoteled using linear functions, and unknown
model parameters are estimated from the
data.” The x and y variables are probability
distributions and do not purport to represent a functional relationship between
mathematical variables or a structural relation between random variables.
Both of those methods for deriving
CAPM Beta require us to respect the
statistical relationships they represent in
order to maintain their internal integrity.
LEG 2: MODERN PORTFOLIO
ThEORy
are used profusely in our profession.
The measure of reward for investing in
an asset or portfolio of assets is called
the expected return. An “expected value” is the probability-weighted average
of expected outcomes, i.e., the mean of
a statistical distribution.
The measure of risk for investing in
an asset or portfolio of assets is called the
of dispersion of outcomes around a mean.
Once again, it is expressed in squared
units, making it difficult to discuss and
compare variances. The standard deviation (σ, or the square root of the variance)
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GRAPh 1: tHe marKoWitz Bullet
Efficient Frontier
Expected Return
ThE MARkOwITz BULLET
built a model of portfolio selection that
is the basis for modern portfolio theory.
In his model, an investor selects a portfolio at time t-1 that produces a stochastic return at t. He assumed that, when
choosing among portfolios, investors
only care about the mean and variance
of one-period returns. As a result, they
choose “mean variance efficient” portfoof the portfolio return, given the expectreturn, given the variance of the return.
This is called being risk-averse. It
does not mean investors generally refuse to take on risk. Instead, it means
they seek mean-variance-efficient portfolios based on their individual requirements for reward and risk.
The graph of this concept looks like
this. The upper half of the hyperbola
(called the minimum variance frontier)
is called the efficient frontier. The y-axis
is the expected return on investment
Graph 1).3
ThE CAPITAL MARkET LINE
When investors add risk-free borrowing and lending (i.e., the risk-free asset) to
their portfolios of risky assets on the Mara linear efficient frontier called the capital
market line (CML). The point of tangency
  
Tangency Portfolio
Individual Assets
Risk-Free Rate
Best possible CAL
Standard Deviation
cient frontier is called the market portfolio.
This represents the point at which inves-
GRAPh 2:
tHe CaPital marKet line
MARKET PORTFOLIO
the risk-free asset. Above and below this
point on the CML, investors are lending or
borrowing at the risk-free rate (i.e., holding
the risk-free asset) in addition to holding
some amount of the market portfolio. This
4
EXPECTED RETURN
is easier to interpret than the variance
because it is expressed in the same units
as the random variable x. Thus it is used
more frequently than, but interchangeably with, variance in discussions of risk.
EFFICIENT FRONTIER
RISK-FREE ASSET
It is critical to note that portfolio
theory states that all investors seek to
invest in the market portfolio, their investment decision; and to attain their
preferred risk position on the CML by
borrowing or lending at the risk-free
rate, their financing decision.
comes from the securities markets, we
commonly use securities market indices
as proxies for the market portfolio.
ThE MARkET PORTFOLIO &
RELEVANT RISk
The market portfolio includes all possible risky assets, including privately held
businesses, art, coins, and so forth. Since
the only readily available, abundant data
of achieving future expectations at the
times and in the amounts expected.”
There are two sources of risk, systematic
and unsystematic. According to modern portfolio theory, the risk inherent
in an asset itself (i.e., idiosyncratic, un-
4
Capital
Ibid.
RISK
Cost of
July/August 2011
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systematic, investment-specific risk) is
mitigated or eliminated when that asset
is placed to a portfolio with other assets.
While the risk of a specific asset does
not disappear on a stand-alone basis,
the presence of other assets in the portfolio dampens the effects of any single
asset’s volatility on the volatility of the
portfolio. But there is more.
Due to its presence in the market portfolio and the influence of the other risky
assets on it, the risk of the subject asset
contains an element of “market” risk in it.
In addition, the risk of the market portfolio
contains the risks of all risky assets, including the subject asset. These two loci of risk
are “co-dependent.” Their individual riskiness cannot be isolated from each other’s
riskiness. Thus the only relevant risk measure for a risky asset that participates in
any way in the market portfolio is its covariance with the market portfolio.
CAPM Beta, e.g., the degree of co-movement demonstrated by the subject asset’s
returns vis-a-vis the movement exhibited by the market portfolio’s returns, relative to their individual mean values over
time. This concept is also often described
as the sensitivity of subject asset’s returns
to those of the market portfolio.
CAPM AND BETA
The capital asset pricing model, repi
f
m)], is a model facilitating the pric-
ing (i.e., valuation) of individual assets
and portfolios within the market portfolio by indicating what the expected (or
required) rate of return should be for
those assets, considering their risk category. It has been the subject of much
controversy for all kinds of reasons.
However, it remains the single most elegant, efficient, and reasonably accurate
26
July/August 2011
representation of asset-to-market relationships that has been developed.
Since I will discuss the CAPM equation in the next section, the primary issue here is that CAPM Beta is not the
systematic risk premium. It does not
quantify systematic risk. It is a measure
that modifies the market portfolio risk
premium for the effects of the individual asset, by multiplying it by the degree
of sensitivity to market return volatility attributable to the subject asset. Together, CAPM Beta and the market risk
premium are the systematic risk premium attributable to the subject asset.
The following quotes support this idea:
According to the CAPM, the expected
return on a security should consist of
the riskless rate plus an additional return to compensate for the systematic
risk of the security. The return in excess
of the riskless rate is estimated in the
context of the CAPM by multiplying
the equity risk premium by β (beta).
The equity risk premium is the return
that compensates investors for taking
on risk equal to the risk of the market
as a whole (systematic risk). Beta measures the extent to which a security or
portfolio is exposed to systematic risk.6
[The second term in the equation for
any minimum variance portfolio] is
a risk premium—the market beta of
the asset i, βim, times the premium
per unit of beta, which is the expected
market return minus…the expected
return on assets that have market be2009 Ibbotson SBBI. p. 94.
LEG 3: ThE EqUATIONS
In this section, I discuss several
equations that pertain to the Total Beta
debate.8 Each equation has a different
purpose, although they look similar and
can be easily confused.
Note that the field of finance has no
standard notation. Every author uses
somewhat different notation to describe
the same concepts, adding another layer of
confusion for the reader. While I have tried
to be consistent herein, my notation may
not match that of well-known source material such as Ibbotson, Pratt and Grabowski, and finance textbooks.
REGRESSION EqUATION FOR
ThE CML
The CML represents all possible
portfolio combinations of the risk-free
asset and the market portfolio (i.e., the
portfolio containing the entire universe
of risky assets in proportion to their market values). The relationship between the
expected return of a selected portfolio
sitting on the CML and that portfolio’s
risk is defined by the equation:
E(Rp) = Rf + {(E(Rm) - Rf) / σm} σp
Where:
E(Rp) = The expected return on
the selected portfolio
E(Rm) = The expected return on
the market portfolio
Rf
= The risk-free rate
σp
= The risk of the selected
portfolio
σm = The risk of the market
portfolio
Journal of Economic Perspectives,
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m
f
m]
represents the slope of the CML for a
bx]. The expected return of the subject
p) is the dependent variable y and the standard deviation of the
subject portfolio σp is the independent
variable x. The risk-free rate of return is
the y-intercept.
m
f
m] is also the original
basis for the Sharpe ratio and represents
the expected return on the market portfolio in excess of the risk-free return, per unit
of market risk. The phrase “market price of
risk” is commonly used for this expression.
The Sharpe ratio allows us to determine the excess expected return on a
subject asset per unit of that asset’s risk.
Thus it is a measure of reward per unit
of risk. No formula for the Sharpe ratio
uses different asset types in the numerator and denominator since this would
violate the meaning and usefulness of
the ratio.
As will be discussed later, the Total
Beta ratio (σs m) is derived from this
CML expression by rearranging its terms.
SML REGRESSION EqUATION
If we want to drill down further and
explore the relationship between expected return and risk for individual asequation. This equation is expressed
graphically by the security market line:
E(Ri) = Rf + (RPm)β
variance relationship. The market risk
m
m
f)] is the
f)
is the y intercept.
As you have probably guessed, the
SML equation is also the equation for
the CAPM.
SCL REGRESSION EqUATION
There is one additional linear equation
that, in the literature, is often confused
with the SML equation. This regression
equation explores the relationship bei
f) for an
individual asset i (the dependent variable
m
f) on the
market portfolio (the independent variable x) across time. It is called the security
characteristic line and follows the form:
(Ri – Rf) = α + βi(Rm – Rf) + ξ
Alpha (α), the y-intercept, is called the
abnormal return on asset i and is often cal-
culated as the difference between the asset’s analyst-estimated rate of return and
its expected rate of return. In an efficient
market, the expected value of the alpha
earned a return appropriate for the risk
taken. This is also the value of alpha for the
market portfolio. Alpha provides insight
into whether the asset is over- or underearned less than it should, given the risk
and expected return. If α is greater than
return expected for the given level of risk.
CAPM Beta is the slope of this line.
and captures all factors that influence
the dependent variable y, other than the
independent variable x. In this equaunsystematic (idiosyncratic) risk. Graph
3 represents the SCL.9
Continued on the next page.
GRAPh 3: SeCuritieS CHaraCteriStiC line
Realized excess return
on the asset
Slope= β
}
Intercept = α
Realized excess return
on the market portfolio
The expected return for a single
i) is the dependent variable
y. Since the relevant risk for an individual risky asset is its covariance with
the Market Portfolio, the independent
variable x is represented by the symbol
β (Beta), which we know to be that co  
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TABLE 1: ComPariSon of VariaBleS for tHree fundamental regreSSion eQuationS
dePendent
regression equation Variable (y)
sloPe
Cml
E(Rp)
Rf
(E(Rm) – Rf
Sml (CaPm)
E(Rs)
Rf
(E(Rm) – Rf)
SCl (CaPm Beta)
(Rs - Rf)
CAPM BETA REGRESSION
The regression equation for CAPM
Beta is similar to the security characteristic line, although its purpose is
to estimate CAPM Beta rather than
explore possible abnormal returns for
risky asset i:
(Rs – Rf) = α + βs(Rm – Rf) + ξ
As before, CAPM Beta is the slope
of this line.
STATISTICAL EqUATION FOR
CAPM BETA
CAPM Beta can also be derived using
the following familiar statistical equation:11
βs = [Cov (Rs, Rm) / Var (Rm)]
m) can also be written σ m.
Since the covariance of any variable
m) is acm
m
term, as discussed below.
The covariance of the security with
the market (in the numerator) is the
relevant measure of risk for the subject
security. But it is expressed in squared
units, making it difficult to discuss
and compare. However, by presenting CAPM Beta as the ratio of two co2010 Ibbotson SBBI Valuation Yearbook,
28
y intercePt
July/August 2011
Cov (Rs, Rm
variances (security-with-market and
(rescaling) the security-with-market
covariance. The relevant covariance
(numerator) can now be expressed as
a proportional relationship that can be
stated as a decimal or percent.
m) could also
)],
in this exm
m
pression it is used solely as the normals
m) and must
remain “together.” If it is split into two
m
m)], and those factors are rearranged (as suggested in
the Total Beta derivation), the relationships intended by this expression
are destroyed.
COMPARING REGRESSION
EqUATIONS
While the three equations just discussed are linear regressions following
equivalent nor interchangeable. Table 1
may help make this clear.
As Table 1 demonstrates, the expressions for the variables used in each
regression equation are not identical,
since the purposes for these equations
are different, as are the relationships
they express. This is important to understand because the Total Beta derivation migrates the CML into the CAPM
equation, with a resulting modification
to market Beta that migrates it into Total Beta.
indePendent
Variable (x)
m
p
Cov (Rs, Rm
2
m
2
m
(Rm - Rf)
DERIVATION OF TOTAL BETA
The current derivation of Total Beta
was developed by Butler and Schurman in “A Tale of Two Betas,” The Value
Examiner
paper by Gary Schurman, available at
Classroom link in the left sidebar).
PRELIMINARy COMMENTS
While traditional finance develops
CAPM Beta within the cluster of equations (SML, SCL) describing the relationships between the expected returns
and risks of individual assets within
the market portfolio, and between the
excess returns of individual assets and
those of the market portfolio, ButlerSchurman develop Total Beta from the
CML equation that describes the relationship between the expected returns
and risks of a portfolio containing some
combination of the risk-free asset and
the market portfolio.
Note that Butler-Schurman never explicitly state that they derive Total Beta
and their “private company Beta” from
they use, and their configuration of those
expressions into equations, resemble the
CML more closely than they do any other foundational finance equations. Since
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Butler-Schurman claim that their work fits
lio theory, I have chosen to assume they
developed their derivations in a good-faith
lio theory. I have critiqued it on that basis.
If they did not build on existing finana mere hodge-podge of expressions and
concepts, pulled from here and there and
glued together by algebraic rearrangements of various kinds that may or may
not be justified. Thus I have chosen to
treat Butler-Schurman’s work with the
respect due a good-faith effort at rigor
within the traditional structure of finance
and portfolio theory.
TOTAL BETA DERIVATION:
STEP ONE
The derivation presented in “A Tale
of Two Betas” begins with two expressions for CAPM Beta, which the authors
claim are identical and are simply mathematical substitutions for each other.
Expression 1: β = [Cov (s, m) / σ2m]
Expression 2: β = (σs/ σm) ρs,m
Since the purpose of “A Tale of Two Betas” is to derive a “private company” Beta,
the authors do not present the calculations
in which Expression 1 becomes Expression
Schurman’s white paper, “Derivation of the
Butler Pinkerton Model,” page 3, where he
presents the following expressions:
Expression 1: β = [Cov (s, m) / σ2m]
Expression 3: ρs,m = [Cov (s, m) /
(σs σm)], where ρs,m is the Pearson
correlation coefficient
The Value Examiner
  
Schurman states that, since these two
expressions have the same numerator,
we can rearrange terms to make them
equivalent to each other, as follows:
Equation 1: β σ2m = ρs,m (σs σm)
He continues the derivation by resides are divided by σm) and rearranging
them (Equation 3), in the manner of a
common algebraic equation:
Equation 2: β σm = ρs,m (σs)
Equation 3: β = ρs,m (σs / σm)
Schurman says in his white paper
(page 3) that Equation 3 is “the new
equation for an individual stock’s Beta.”
According to Butler-Schurman, when
the correlation coefficient in Equation
3 above is set at 1, the remaining expression becomes Total Beta.
Before proceeding, we need to ask two
we break these expressions apart and rearcommon algebraic expression? I suggest
we cannot because algebraic manipulation
alters the meaning of and relationships inherent the original statistical expressions.
Second, setting the correlation coefficient
tion with the market portfolio. This, in
turn, implies that Total Beta describes an
lation with the market portfolio. This cannot be said of any private company, much
less most public companies.
TOTAL BETA DERIVATION:
STEP TwO
Butler and Schurman’s next move in
“Tale” is to select a two-asset portfolio
for small business owner to hold. The
portfolio they choose includes some
percentage (termed ω) allocated to the
market value of the small business’s
stock plus the remaining percentage
(termed 1 - ω) allocated to shares of the
market portfolio (we assume a market
index fund). They indicate that ω will
The equation they use to express the expected return for this portfolio is standard for any two-asset portfolio and is
expressed as:
Equation 4: rp = ωrs + (1 - ω)rm
where rs and rm are the expected returns on the subject asset and the market, respectively.
This portfolio looks similar to the
CML concept of the two-asset portfolio (the risk-free asset and the market
rf
f
rf )
)].
To
assess
the
degree
of
similarm
ity, let’s review some of the facts about
the CML portfolio, as follows:
1. The CML risk-free asset has certain
returns (i.e., returns that exhibit no
volatility around their mean).
The CML risk-free asset returns exhibreturns of the market portfolio asset.
3. Thus, all the variability of a selected
CML portfolio comes from the market portfolio asset, per the following
equation, which is the result of adding the risk-free asset to a two-asset
portfolio: σp
rf ) σm .
4. As this equation makes clear, the
magnitude of portfolio variability is
determined by the proportion of the
market portfolio asset in the portfolio. A corollary to this is that the proportionate presence of the risk-free
July/August 2011
29
A P R O F E S S I O N A L D E V E L O P M E N T J O U R N A L f o r t h e C O N S U LT I N G D I S C I P L I N E S
asset in the portfolio has a dampening effect on the magnitude of total
portfolio variability.
Implicitly, the market portfolio asset
in the Butler-Schurman two-asset portfolio seems to take the role of the riskfree asset in the CML. That is, (1) it adds
no risk to the portfolio, since its level of
diversification is such that it evidences
not correlated with those of the private
company asset; and (3) its presence in
the portfolio may dampen portfolio
variability, and private company risk,
in proportion to the amount held in the
portfolio. (“Therefore, all benefits from
combining these two assets—the private
company and the market portfolio—reduce the private company’s stand-alone
Beta [i.e., total risk], which is known in
the business valuation profession as Total Beta.”)13
correct. The market portfolio does evidence systematic risk, even if it does not
show firm-specific risk. This adds risk to
the total portfolio. Its returns are correlated to those of the private company asset since the private company asset is, by
definition, part of the market portfolio.
If, because it is fully diversified, the
market portfolio is assumed to bring no
risk to this two-asset portfolio, the following critical concept behind the formula
for portfolio variance ceases to hold:14
This formula indicates that the standard deviation for a portfolio of assets is a function of the weighted
13
Ibid.
Introduction to Portfolio Management,” Corporate
Finance and Portfolio Management
30
July/August 2011
average of the individual variances
(where the weights are squared), plus
the weighted covariances between all
the assets in the portfolio. The very
important point is that the standard
deviation for a portfolio of assets encompasses not only the variances of
the individual assets but also includes
the covariances between all pairs of
individual assets in the portfolio.
…as shown by the formula, we see
two effects. The first is the asset’s
own variance of returns, and the
second is the covariance between the
returns of this…asset and the returns
of every other asset that is already in
the portfolio. The relative weight of
these…covariances is substantially
greater than the asset’s unique variance; the more assets in the portfolio, the more this is true. This means
that the important factor to consider when adding an investment to a
portfolio that contains a number of
other investments is not the new security’s own variance but its average
covariance with all the other investments in the portfolio.
In the classic CML portfolio, the
market portfolio asset is viewed as the
risky asset and the risk-free asset is the
riskless one. In the Butler-Schurman
version of the CML portfolio, the private company asset is viewed as the
risky asset and the market portfolio as
the riskless asset. Is the Butler-Schurman version a legitimate application of
capital market theory? In terms of unsystematic risk, the market portfolio asset may be “risk-free,” but this does not
make it the equivalent of an asset with
no variance at all. Semantics here are
important to note and understand.
TOTAL BETA DERIVATION:
STEP ThREE
Using the equation for the CML line,
Butler-Schurman redefine terms and reconfigure the equation. Instead of using
m
f
m] for the market price
of risk, they use the Greek symbol φ and
substitute it in the CML equation. They
then substitute a single asset (s) for the
p) and σp.
As stated earlier, they change the notas) to
rs. In an effort to help the reader follow
key substitutions and changes, I have
highlighted them in yellow.
Equation 5 (rewritten CML equation):
rs = Rf + σs φ
Next, they define a new variable,
λ, as “the percent of the private company’s Total Beta that is not eliminated
through diversification for a two-asset
portfolio” and add it to the CML-substitute equation.
Equation 6: rs = rf + λ σsφ
This, they claim, is no different in
concept from the CAPM equation [rs
f
m – rf)], in which they substitute their version of CAPM Beta [Equas,m (σs
m)] in the CAPM
equation to arrive at:
Equation 7:
rs = rf + ρs,m (σs / σm) (rm – rf)
They “prove” this by taking Equation
expression for φ back into the equation
and rearranging terms:
  
A P R O F E S S I O N A L D E V E L O P M E N T J O U R N A L f o r t h e C O N S U LT I N G D I S C I P L I N E S
Equation 8a:
rs = rf + λ σs ((rm – rf)/σm )
Equation 8b:
rs = rf + λ σs / σm (rm – rf)
They call λ σs
m “private company
s,m (σs
m) CAPM
Beta.
As stated earlier, I suggest that nei-
because Butler-Schurman have rearranged terms to derive them, as though
these were common algebraic expressions. This destroys statistical relationships that are critical to the integrity of
the original equations (see Step One).
In addition, a number of authors, including Butler-Schurman, contend that
the proposed CAPM Beta equivalent is
sm
does not equal 1. They state that “pure”
Total Beta (σs m) is the limit of CAPM
sm equals 1. Thus:
If ρsm ≠ 1, the expression is CAPM β
If ρsm = 1, the expression becomes
Total β
As stated earlier, a correlation coeffirelation with the market portfolio. This, in
turn, implies that Total Beta describes an
relation with the market portfolio. Could
this be said of any private company, much
less most public companies?
TOTAL BETA DERIVATION:
STEP FOUR
Although positioned in the text as
an intermediary third step, Butler-Schurman’s derivation of the mathematical
meaning of λ is logically the final step for
both the Total Beta derivation and the explanation of their new private-company
  
Beta. The derivation involves numbers
of Greek symbols and extensive use of
algebraic rearrangement of terms. Since
the proofs they provide are extensive and
this paper has already gotten rather technical and lengthy, I will point out one or
two glaring errors and leave the remainder to your personal exploration.
Error 1: Butler-Schurman use their
version of the CML equation for a portfolio [rp
f
p φ] to justify defining
the expected return on the market as:
Equation 9: rm = Rf + σm φ
This rewrite is what we call a tautology, i.e., using different words to say the
same thing even if the repetition does
not provide clarity. If we substitute the
original expression for φ
m
f)
],
back
into
Equation
9
and
reduce
m
terms algebraically (following ButlerSchurman’s method of dealing with
these equations), Equation 9 simply
states that rm
m.
The rationale for this expanded definition is that they can then substitute it
for rm in the standard equation for the
expected returns on a portfolio of two
assets [Equation 4 above: rp
s
ω)rm]. They substitute their definition of
the expected return for the single asset,
s
f
sφ] for
rs in the same equation. After algebraically multiplying the portfolio weights
times these definitions for the returns
on the single asset and on the market,
they reduce terms and “simplify” the
equation for the expected return on the
portfolio to look like this:
Equation 10:
rp = rf + ω λ σsφ + (1 - ω) σm φ
sions (blocked in yellow) of the original
CML equation, one for a single asset and
one for the market portfolio. However,
the original CML equation was only
intended to represent a two-asset portfolio containing the risk-free asset and
the market portfolio. Its purpose was to
represent neither the expected returns
of a single asset nor the expected returns of the market portfolio. It was developed to represent investor portfolio
and financing choices along the efficient
frontier, where the sole risky asset was
the market portfolio.
Error 2: At this point, the expected
return on the portfolio (rp) is represented by two equations, [rp
f
p φ]
and [rp f
sφ
m φ].
Butler-Schurman use the algebraic principle that if two expressions are equal to
the same result, the two expressions are
equal to each other. They set these two
expressions for rp as equal and, using
algebraic rules, reduce terms and move
them around to achieve a definition
of λ, “the percent of the private company’s Total Beta that is not eliminated
through diversification for a two-asset
portfolio,” as follows:
Equation 11:
λ = (σp - (1 - ω) σm ) / ω σs
where ω is the weight of the value of
the small business as a proportion of the
value of the entire portfolio.
Leaving aside my objections to the
manner in which Equation 11 was derived, the equation tells us that lambda
(λ) depends on having calculated the
standard deviations of portfolio and
July/August 2011
31
A P R O F E S S I O N A L D E V E L O P M E N T J O U R N A L f o r t h e C O N S U LT I N G D I S C I P L I N E S
subject asset (private company) returns.
viations of portfolio and subject asset
returns depends on having a value for
lambda! It seems we are caught in a circular argument here.
wRAPPING UP, FOR NOw
In entertaining the notion of Total
Beta and the “private company Beta,” we
have entered a wilderness of meaningless
redefinitions, circularities, and lengthy
derivations that are difficult to follow. In
words from Shakespeare’s Macbeth, “It
is a tale…full of sound and fury, signifying nothing.” The original meanings and
purposes for the equations critical to
modern portfolio theory and the capital
asset pricing model have been lost, and
we have only specious arguments and
tautologies to replace them.
While this critique does not explore
the issue of the undiversified investor,
on which Total Beta proponents hang
their hat, I have demonstrated that the
equations proposed by Butler-Schurman
cannot and should not be used. They are
based on the wrong foundation (the CML
equation v. the CAPM equation), which
is used incorrectly (to calculate expected
returns on single assets and on the market portfolio vs. to calculate the expected
returns of a portfolio containing the riskfree asset and the market portfolio), and
their derivations depend on manipulating statistical expressions algebraically,
which destroys the integrity and usefulness of those statistical expressions. VE
Sarah (Nelson) von Helfenstein, MBA, AVA, is
a practitioner at Braver
Valuation Services in Boston. She has served the
business valuation profession for over 15 years, first
as an educator, providing turnaround management for the first
AICPA CEA program in business valuation, and founding the Center for Advanced
Valuation Studies on behalf of the American
Society of Appraisers. Her work provided the
foundation for the AICPA’s ABV designation. Subsequently, she performed seminal
research for the Department of Defense Office of Force Transformation in the valuation of information technology/systems and
human capital. She has also consulted for a
broad cross-section of industries, with a specialty in high-tech. Email: svonhelfenstein@
thebravergroup.com
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A P R O F E S S I O N A L D E V E L O P M E N T J O U R N A L f o r t h e C O N S U LT I N G D I S C I P L I N E S
v A l u A t i o n
•
Practical Evidence and Theoretical
Support for
Total
Beta
•
I
By Peter J. Butler, CFA, ASA; Gary S. Schurman, CFA, CPA/ABV; and Andrew M. Malec, PhD
percent and an equity risk premium of
focus on the “big picture” in layman’s terms, and then show the theory behind
She writes, “I will begin by stating my position, in two parts. Statement 1: No
matter what arguments are used to
justify a set of equations that underlie
proposed new applications of theory, if
those equations violate known and settled fundamental principles, and it cannot be demonstrated that they create a
new universe of theory and principles
(e.g., the theory of relativity v. Newtonian physics), they should not be used.”
Beta are not anything new, it has been
Daubert-tested,1 and is based on modern portfolio theory, as shown below.
Next, Ms. von Helfenstein states,
critical fundamental principles and its demonstrable lack of creation of a new universe of theory, I suggest that Total Beta
should not be accepted by our profession
as a 'market Beta' substitute for quantifying the total cost of equity, or a proxy for
the 'total risk' of privately held companies,
or even as ‘another useful insight into the
historical risk profile of a proxy firm.’”
We developed Table 1 from Professor Damodaran’s website as of January
1 Alamar Ranch, LLC (Idaho), and YTC, LLC
(Idaho) v. County of Boise, U.S. District Court for
and Total Betas. To calculate Ke (cost
of equity using Beta) and total cost of
equity (TCOE using Total Beta) of each
We ask the simple rhetorical question, if you were valuing a privately held
company in any one of these industries,
which Beta better captures the risk associated with a privately held investment and is a good starting point in the
valuation process? The answer should
be readily apparent to any one who has
ever performed a valuation, countering
TABLE 1: ComParing CoSt of eQuity uSing Beta and tCoe
uSing total Beta
Ke FroM caPM (beta)
in %
tcoe (total beta)
in %
11.2
29.3
9.3
17.4
11.0
36.0
9.7
20.8
Computer software/svcs
10.8
28.6
e-commerce
11.6
28.2
8.7
18.1
Heavy construction
13.8
26.6
internet
11.0
37.3
9.6
20.5
industry
apparel
auto & truck
Biotechnology
Building materials
food processing
office equipment/supplies
9.9
23.5
restaurant
11.2
27.0
retail store
11.2
25.8
Semiconductor
14.1
35.8
Wireless networking
12.2
30.0
Publishing
BLW).
  
July/August 2011
33
A P R O F E S S I O N A L D E V E L O P M E N T J O U R N A L f o r t h e C O N S U LT I N G D I S C I P L I N E S
Ms. von Helfenstein’s claims that Total
Beta should not replace Beta.
More importantly, we also challenge
Ms. von Helfenstein (or any other naysayer) to refute the following as a violation of existing financial theory.
To demonstrate the simplicity of To-
Step 1: Calculate the variance of the portfolio.
σp2 = w12 σ12 + w22 σ22 + 2w1w2 ρ12σ1σ2
σp2 = 0.052 x 0.202 + 0.502 x 0.402 + 2 x 0.50 x 0.50 x 0.50 x 0.20 x 0.40
σp2 = 0.0700…and…σp = 0.265
we will use the example of an investor in
the following situation:
the market index (w1
cent in a private company (w ).
The risk-free rate (rf
The return on the market index (rm)
is 11 percent.
The standard deviation of market returns (σm
The standard deviation of the private
company returns (σs
The correlation of the private company returns with market returns
The Total Beta of the private coms
m
enstein, however, we would not use
ple, we also would not use Total Beta
completely diversified (which Beta presumes) nor completely undiversified
(which Total Beta presumes).
What, then, is the private company
Beta (Bs) and total cost of equity (rs) that
we should use for this private company?
These calculations can be accomplished
in four easy steps, which can be found in
any corporate finance textbook—contrary
to Ms. von Helfenstein’s views that Total
Beta violates existing financial theory.
July/August 2011
σp
σm
(rm - rf ) = 0.05 +
0.265
0.200
x 0.06 = 0.1295
Step 3: Noting that the Beta of the portfolio is the weighted sum of the individual
asset Betas, we express required rate of return in terms of average Beta.
rp = rf + (wm βm + ws βs)(rm - rf ) = 0.05 + (0.50 x 1.0 + 0.50 x βs) x 0.06 = 0.1295
Step 4: Solve for private company Beta of the private company stock, and calculate
the total cost of equity.
βs = 1.64…such that… rs = rf + βs(rm - rf ) = 0.05 + 1.64 x 0.06 = 0.1484
sm
34
rp = rf +
The total required risk-adjusted return on this portfolio is the weighted cost of
note: Bs
Pretty simple, isn’t it? The equations above are a little different than those in “A
Tale of Two Betas” (The Value Examiner
logic is the same and you get the same answers. Why do the naysayers try to make
this so much more complicated than it really is?
Moreover, we have shown that for realistic weightings of most private compatheoretically correct private company Beta is not materially different than practically correct Total Beta.
Now that we have an equation for Total Beta, when is it appropriate to use? All
investors compete for assets. The question is, “Who is competing for my private combuyer would probably pay to a knowledgeable, willing, and unpressured seller. The
buyer pool matters. If buyers have the pricing power they will price for all of their risk.
  
A P R O F E S S I O N A L D E V E L O P M E N T J O U R N A L f o r t h e C O N S U LT I N G D I S C I P L I N E S
If an undiversified buyer, who uses Total
Beta, competes with a fully diversified
buyer, who uses the CAPM, the undiversified buyer will be outbid by the fully diversified buyer. The undiversified buyer in
this case cannot price for all of his or her
risk. If this buyer were competing against
other undiversified buyers, then why can’t
he or she price for all of his risk? Ask yourself this question: How many large public funds, which are fully diversified and
therefore use the CAPM, are competing
for the purchase of the corner grocery
store in my neighborhood?
Whenever we add a company-specific
risk premium (regardless of how it is calculated), we assume the scenario above
Why would we add a company-specific risk premium when the buyer is
diversified such that this risk can be
diversified away?
Why would we add a company-specific risk premium when the buyer
does not have the pricing power to
In summary, Total Beta is now
both Daubert-tested and endorsed by
PhDs (academics and practitioners).
Until Ms. von Helfenstein or anyone
else can prove an error with the modern portfolio theory equations above,
it will continue to gain acceptance in
VE
our community.
Peter J. Butler, CFA, ASA, is the founder
and principal of Valtrend, LLC, in Eagle,
ID (www.valtrend.com). He is the co-developer of the Butler Pinkerton Calculator. Gary S. Schurman, CFA, CPA/
ABV, is a principal in Applied Business
Economics (www.appliedbusinesseconomics.com). Andrew M. Malec, PhD,
is managing director of valuation, litigation advisory and forensic services at
Gordon Advisors, PC, in Troy, MI (www.
gordoncpa.com), and is a member of the
Editorial Board of
.
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A P R O F E S S I O N A L D E V E L O P M E N T J O U R N A L f o r t h e C O N S U LT I N G D I S C I P L I N E S
•
l i t i g A t i o n
C o n s u l t i n g
Court•
Corner
By Peter Agrapides, MBA, AVA
MARITAL DISSOLUTION
In Re Marriage of Hagar
2010 Iowa App. LEXIS 1392; November 24, 2010
Iowa Court of Appeals, Judge Eisenhauer
This case outlines the risks inherent in accepting a “calculation engagement” as opposed to a valuation engagement.
members to prepare a “calculation” report when “the client and
member agree to specific valuation approaches, methods, and
the extent of selected procedures, and results in a Calculated
process. The primary asset of the marital estate was a chain
of dry cleaning stores. The husband presented the expert testimony of the family’s CPA, who estimated the value of the
negative
estimate was based on industry rules of thumb. The CPA stated
that using a rule of thumb to estimate the value of a business
enterprise does not require the same professional judgment as
required when preparing a complete business valuation (conclusion of value). The trial court based its value estimate largely
on the CPA’s valuation. The wife appealed. The Iowa Court of
Appeals reversed the trial court’s ruling, stating, “We do not use
the CPA’s calculations because he admittedly did not ‘use judgment.’” Another interesting fact in this case is that the CPA was
not recused from the onset based on the fact that he prepares
the financial statements and tax returns for the business.
In re Marriage of Blazer
176 Cal. App. 4th 1438; August 25, 2009
California Court of Appeals, Judge McAdams
The Monterey County Superior Court, California, entered
a spousal support order that reduced temporary spousal support and set permanent support. Appellant wife appealed.
The wife argued the trial court failed to account for all of
the husband’s income. The instant court concluded that the
trial court acted within its discretion in determining the hus-
36
July/August 2011
band’s income for purposes of spousal support. The principal marital asset was a company created by the husband and
the trial court’s discretion to calculate the husband’s income
without regard to funds derived from the company that were
used to diversify the business. The trial court determined
that there was a need to diversify the company’s work and
that funds spent for that purpose were reasonable expenses
properly chargeable to the company. The trial court’s factual
finding was supported by substantial testimonial evidence.
The husband testified that unless the company diversified,
it would go out of business. The testimony of the husband’s
expert supported the need for diversification. Since the trial
court’s determination on this point enjoyed substantial evidentiary support, there was no abuse of discretion. Its determination also comported with applicable law. The appeals
court affirmed the ruling of the lower court.
INTELLECTUAL PROPERTy INFRINGEMENT
Uniloc USA, Inc. v. Microsoft Corp.
2011 U.S. App. LEXIS 11; January 4, 2011
U.S. Court of Appeals for the Federal Circuit, Judge Linn
Patentee Uniloc sought review of a decision from the U.S.
pellee Microsoft’s motion for judgment as a matter of law
(JMOL) of non-infringement and no willful infringement,
and in the alternative, granting a new trial on infringement
and willfulness. Patentee appealed the grant of a new trial on
damages. Microsoft cross-appealed denial of JMOL on invalidity. The patent at issue involved a system to deter copying of software. The accused product was a feature offered
by the software company to protect several of its software
programs. After a full trial, a jury found that Uniloc’s patent
was valid, the software company engaged in willful infringement, and the patentee was due $388 million in damages.
The district court denied JMOL of invalidity, granted JMOL
of non-infringement, granted JMOL of no willfulness, and
  
A P R O F E S S I O N A L D E V E L O P M E N T J O U R N A L f o r t h e C O N S U LT I N G D I S C I P L I N E S
granted in the alternative a new trial on infringement and
willfulness. On review, the court reversed the grant of JMOL
of non-infringement because it concluded that the jury’s verdict on infringement was supported by substantial evidence.
However, willfulness was not supported. The court also reversed the district court’s alternative grant of a new trial on
infringement. The court went on to find that the jury’s damages award (as decided at trial) was fundamentally tainted
as a matter of federal circuit law, to be a legally inadequate
methodology. Thus a new trial on damages was warranted.
supported by substantial evidence. The court reversed the
district court’s grant of JMOL of non-infringement, affirmed
the district court’s grant of JMOL of no willfulness, affirmed
the district court’s grant of a new trial on damages, vacated
the district court’s grant of an alternative motion for new trial
on infringement, and affirmed the district court’s denial of
JMOL of invalidity. The case was remanded for proceedings
consistent with the opinion.
DAMAGES
Diesel Mach., Inc. v. B.R. Lee Indus.
418 F.3d 820; August 8, 2005
U.S. Court of Appeals for the Eight Circuit, Judge Bye
Plaintiff construction equipment dealer sued defendant manufacturer alleging it had terminated a franchise in violation of
trict of South Dakota granted partial summary judgment to the
dealer on liability, and a jury awarded the dealer compensatory
The manufacturer entered an agreement with the dealer giving
the latter exclusive rights to sell the manufacturer’s products
throughout South Dakota as well as seven counties in Minnesota.
Eight months into the agreement, the manufacturer canceled the
franchise agreement because it had recently acquired another
product line and planned to use its dealer network to sell its own
products. The court rejected the manufacturer’s claim that the
dealer was not covered by the South Dakota Dealer Protection
Act. Because there was no evidence the termination decision
resulted from any misconduct or shortcomings on the dealer’s
part, the district court had correctly granted partial summary
judgment to the dealer on the issue of liability. The manufacturer
was not entitled to judgment as a matter of law based on the
  
dealer’s refusal of an allegedly unconditional offer of reinstatement that would have mitigated its damages because the dealer
presented credible testimony that it did not know exactly what
the reinstatement offer from the manufacturer would involve.
Punitive damages were appropriate because the manufacturer
had shown a callous disregard for the dealer’s legal rights. The
court affirmed the judgment of the district court in all respects.
LOST PROFITS
R&R International, Inc. v. Manzen
2010 U.S. Dist. LEXIS 94550; September 12, 2010
U.S. District Court for the Southern District of Florida,
Judge Rosenbaum
and Georgia. Months after the parties’ agreement, the defendant
found another distributer, and the plaintiff sued for breach of
on its expert’s findings. Prior to trial, the defendant challenged
the expert under the Daubert standard, claiming the expert was
not qualified to testify because his findings lacked reliability and
couldn’t be replicated. The court noted that the expert held no
degree in finance, accounting, or economics. But the court noted
that the expert was an investment banker who had substantial
experience in the beverage industry. The court ruled that he had
experience also became the benchmark by which the court ultimately tested his report’s reliability. The court found numerous
flaws and unsupported assumptions in the expert’s report. The
court first noted that the expert’s industry research was largely
gleaned from Wikipedia. The court noted that Wikipedia is a
source of “mixed” reliability. The court further noted that the expert did not independently check the articles or attach copies to
his report. The expert also failed to identify any of the major distributors he interviewed to calculate market share, such as their
location, type of beverage distributed, length of operations, etc.
The court pointed out numerous additional flaws in the expert’s
report. Most notable was the admission by the expert that, based
on his prior role as an investment banker in the beverage industry and the materials used in his report, he could not have made
a reliable recommendation whether to invest in the plaintiff. The
court noted, “When an expert offers his years of experience in a
particular industry spent evaluating the financial viability of certain businesses, but then is unable to attest to the reliability of his
own lost profits analysis, this court is hard-pressed to reach a difJuly/August 2011
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ferent conclusion.” The court also noted that the expert failed to
employ any scientific or “otherwise reliable method to calculate
the plaintiff’s lost profits. No indication exists that the underlying assumptions…have any validity at all.” The court noted that
the expert did not use statistically significant sampling methods
and arbitrarily selected numbers, which “fatally undermine the
reliability of his report and analysis.” As such, the court struck his
entire report and lost profits conclusions.
Warren Distributing Co. v. InBev USA, LLC
2010 U.S. Dist. LEXIS 51603; May 28, 2010
U.S. District Court for the District of New Jersey, Judge Kugler
Warren Distributing sued defendant beer companies, alleging their terminated distribution rights were severely undervalued. The companies moved to exclude the expert opinion of the
distributor’s expert. Pursuant to the Malt Alcoholic Beverage
Practices Act, the companies offered fair market value payments
to the distributors using the “market multiples” approach. The
companies also offered an “enhanced fair market value payment”
for cooperation during the transition. Notwithstanding the past
use of the market multiples approach, the distributors contended
that the proper valuation method for their distribution rights was
the discounted cash flow method. The court found that the expert
was qualified, and was not convinced that the expert’s opinion
was somehow unreliable simply because the discounted cash
flow method had not been previously used. The expert’s use of
another transaction was unreliable because that transaction retained value in its distribution rights even absent the side transaction. As such, the expert’s inclusion of that value in his calculation
of the true value of the transaction was unreliable. The expert’s
testimony regarding the value of the retention rights had to be
excluded. All the other methods used by the expert seemed reliable. The motion to exclude expert opinion was granted with
respect to the expert’s testimony about state of mind in another
transaction and as to his testimony regarding the value of retention rights. The motion was denied in all other respects.
ESTATE & GIFT TAx
Estate of Schneider v. Finmann
933 N.E.2d 718; June 17, 2010
Court of Appeals of New York, Judge Jones
bring a legal malpractice suit against an attorney for damages associated with negligent representation which resulted in a larger
estate tax liability. Decedent purchased a $1 million life insurance
38
July/August 2011
was the primary owner and then to another entity of which he
his gross estate. The estate commenced a malpractice action in
transfer, or failed to advise the decedent not to transfer, the policy
which resulted in an increased estate tax liability. Privity, or a relationship sufficiently approaching privity, existed between the
estate and defendants. The estate essentially stood in the shoes
of the decedent and, therefore, had the capacity to maintain the
malpractice claim on the estate’s behalf. The estate was entitled
to raise an estate planning malpractice claim against defendants
because they caused harm to the estate. Moreover, that type of
ted a personal representative of a decedent to maintain an action
for “injury to person or property” after that person’s death. The
order of the Appellate Division was reversed, and defendants’
motion to dismiss the complaint was denied.
Estate of Adler v. Commissioner
T.C. Memo 2011-28; January 31, 2011
U.S. Tax Court, Judge Morrison
The U.S. Tax Court determined that despite the fact that the
decedent executed grant deeds transferring undivided interests
in property to his children, the transfers were testamentary in
Carmel, California, property in the decedent’s gross estate uninterests to each of his five children. The decedent received
no consideration for the transfer. The deed also contained the
stipulation that the decedent was to retain “the full use, control,
income and possession of [the property] and every part thereof
for and during” his natural life. The decedent, and none of the
children, continued to live on the property. Decedent also paid
no rent to the children and was free to alter, improve, or maintain the property as he saw fit without consulting his children.
The court noted that the decedent retained enjoyment of and
maintained the property. As such, the gross (undiscounted)
value of the property was includable in his gross estate.
Estate of Fortunato v. Commissioner
T.C. Memo 2010-105; May 12, 2010
U.S. Tax Court, Judge Jacobs
-
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fraud penalty against petitioner decedent’s estate. The issues
for decision were (1) whether the decedent owned an interest
in one or more of a group of warehouse companies on the
the failure to report the value of the interest(s) on the estate’s
tax return was fraudulent. The record revealed that the decedent never desired or intended to be a shareholder of the
companies because (1) he feared that if his creditors were
aware of any assets owned by him, they would attempt to
an ownership interest. The court found that the decedent had
no financial reason to be a shareholder. The decedent had
none of the financial burdens associated with equity ownership. The decedent and his brother, the administrator of the
estate, had an unusual arrangement by which both brothers
prospered—the brother through the growth of the companies, and the decedent through the compensation which the
brother was willing to give the decedent for his services. That
arrangement ended upon the decedent’s death. As such, the
court ruled that the decedent did not own a property interest in one or more of the companies on the date of his death.
Estate of Jensen v. Commissioner
T.C. Memo 2010-182; August 10, 2010
U.S. Tax Court, Judge Vasquez
The Tax Court had to determine the appropriate built-in
capital gains tax associated with estimating the fair market
primary asset was 94 acres of waterfront property in New
Hampshire. Petitioner’s expert valued the corporation unused the net asset value method to value the corporation,
but determined the built-in capital gains tax liability based
expert also asserted there were transactions in which such a
expert’s closed-end fund analysis, noting that (1) there were
major differences between an investment in a single parcel
of real estate and closed-end funds, which generally invest in
that invest in real estate typically invest indirectly and in
expert’s theory that an investor could completely avoid the
  
tax. The court noted that the best outcome an investor could
hope for would be a deferral of the tax. The court determined
the built-in capital gains tax discount by using appreciation
rates provided in the petitioner’s real estate appraisal and
based on data provided by the estate’s experts as well as caland its improvements. The court then determined further
long-term capital gains tax liabilities, which it discounted
Whitehouse v. Commissioner
615 F.3d 321; August 10, 2010
U.S. Court of Appeals for the Fifth Circuit, Judge Barksdale
Petitioner, a Louisiana limited partnership, appealed from
the U.S. Tax Court, challenging the decision which, for the
most part, agreed with respondent Commissioner’s disaldisputed qualified conservation easement and agreed with
nership constituted a “qualified conservation contribution”
only the allowable amount of the deduction was at issue.
The partnership contended the highest and best use of its
two adjacent buildings was as a luxury hotel, per its expert’s
opinion, not as a non-luxury hotel per the opposing expert’s
opinion. The Tax Court did not explicitly rule on this issue,
but it did not accept the partnership’s expert’s opinion on
highest and best use. On this issue, the Tax Court’s decision
could have been construed in two ways. On remand, the Tax
Court would have the opportunity to make necessary subsidiary findings. The appeals court ruled that the tax court
erred in declining to consider both buildings’ highest and
best use in the light of both the reasonable and probable condominium regime, adopted the day after the easement was
donated, and the combination of those buildings into a single
functional unit, both of which foreclosed the realistic possibility, for valuation purposes, that the buildings could come
under separate ownership. This combination affected the
buildings’ fair market value. The court vacated the valuation
and remanded for revaluation. On remand, the Tax Court
was required to reconsider all three methods of valuation in
determining the easement’s value. In making this valuation
on remand, the court ruled that the Tax Court should, among
other things, reconsider the experts’ reports and valuation
July/August 2011
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methods and their conclusions regarding highest and best
use as a luxury or non-luxury hotel.
Cezar v. Commissioner
T.C. Memo 2010-173; August 4, 2010
U.S. Tax Court, Judge Kroupa
engaged in the construction of homes on a speculative basis. The corporation built and then transferred to the pethat the distribution of the lot and improvements from
the corporation was a constructive dividend and took the
position that (1) petitioners received a qualified dividend
and long-term capital gains as a result of the dividend, and
accuracy-related penalties. Petitioners conceded that the
receipt of the lot was a constructive dividend. Alternately,
they argued that the receipt of the improvements did not
constitute a constructive dividend because they paid for
the construction materials and did all the work to construct the improvements. The Tax Court ruled in favor of
ing documentation, the petitioner’s inability to produce
the agreement between them and the corporation allowing the petitioners to construct improvements on the lot,
and petitioners’ statements during audit that the lot and
improvements were corporate assets. The court also noted
that the corporation had never sold lots and improvement
separately and that it was unlikely a buyer would want to
buy a lot but not the improvements. The court determined
that the petitioners and the corporation were liable for an
curate financial records and substantial understatement of
income tax, respectively.
Hendrix v. United States
106 AFTR2d 5373; July 31, 2010
U.S. District Court for the Eastern District of Ohio, Judge
Frost
Plaintiff taxpayers and defendant United States filed motions for summary judgment in the taxpayers’ refund suit
their house and construct a new house. They obtained an
appraisal of the property and the house. The taxpayers then
entered into a contract with the city, giving the city permis-
40
July/August 2011
sion to use the property and the house for purposes of fire
division training. The city used the house until the house
was demolished. The taxpayers reported a charitable contribution on their income tax return, claiming a deduction
cy. The court held that the appraisal failed to constitute a
(i)(I), because the appraisal did not contain the expected
date of contribution, the terms of the agreement between
the taxpayers and the city, the qualification of the appraiser,
including her background, experience, education, and any
membership in professional appraisal associations, and the
required statement that the appraisal was prepared for income tax purposes. The court also held that the taxpayers failed to file a contemporaneous acknowledgment as
motion for summary judgment and granted the government’s motion for summary judgment.
Sala v. United States
613 F.3d 1249; July 23, 2010
U.S. Court of Appeals for the Tenth Circuit, Judge
Murphy
The U.S. court for the District of Colorado ruled in favor
of appellee taxpayer on his action against the government
ernment argued that the transaction giving rise to the taxpayer’s claimed tax loss had no economic substance. The appellate court concluded that the taxpayer’s participation in
the foreign currency investment program lacked economic
substance. The transaction was designed primarily to create a reportable tax loss that would almost entirely offset
Though a taxpayer was permitted to structure a transaction
to have economic substance. The pre-determined nature of
the liquidation indicated a lack of economic substance. The
existence of some potential profit was insufficient to impute substance into an otherwise sham transaction where
a common-sense examination of the evidence as a whole
indicated the transaction lacked economic substance. The
judgment was reversed and remanded to the district court
with instructions to vacate its judgment and enter judgment in favor of the United States.
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A P R O F E S S I O N A L D E V E L O P M E N T J O U R N A L f o r t h e C O N S U LT I N G D I S C I P L I N E S
Garnett v. Commissioner
assets. The court held that a marketability discount should
not be applied in determining the fair value of a dissenter’s
shares unless exceptional circumstances existed. The court
overruled prior case law conflicting with its ruling. Although
to their interests in certain limited liability partnerships and
limited liability companies. Petitioners sought review. Crossmotions for partial summary judgment were filed. Petitioners
owned interests in LLPs, LLCs, and common tenancies. The
discounts, the court agreed with the majority rule in other
jurisdictions that such discounts were impermissible in the
132 T.C. No. 19; June 30, 2009
U.S. Tax Court, Judge Thornton
whether the per se
did not apply since none of the entities was a limited partnership and since petitioners were considered to be general
partners therein. The court sustained petitioners’ claims.
Noting that despite state law distinctions between limited
partnerships, LLPs, and LLCs, all were generally treated as
partnerships for federal tax purposes, the court held that the
simply that the interest at issue was an interest in a limited
partnership but that the interest also was that of a limited
partner. Application of the per se loss limits was improper.
As the interests at issue were held as “general partners” under
relevant regulations, it could not be presumed that petitioners did not materially participate. Thus a factual inquiry on
that issue was required. The court granted petitioners’ motion for partial summary judgment on certain issues.
ShAREhOLDER DISSENT
Brooks v. Brooks Furniture
325 S.W.3d 904; October 29, 2010
Kentucky Court of Appeals, Judge Thompson
the marketability discount applied in the shareholder’s case
made it possible for the corporation’s majority shareholders
ably less than his proportionate interest in the corporation
as a whole. The court also determined that the trial court
did not err in, among other things, its adjustments to the
value of assets and liabilities of the corporation and in its
with its opinion, remanded the case for an award of the fair
value of the minority shareholder’s shares. In all other respects, the judgment was affirmed.
VE
The information in this article is for informational purposes
only, and should not be construed as legal advice. If you need
legal advice, please consult an appropriate attorney.
Peter Agrapides, MBA, AVA, is with the Salt Lake City and
Las Vegas offices of Houlihan Valuation Advisors, where his
practice focuses primarily on valuations for gift and estate
tax planning. He has been active in tracking valuationrelated case law since 2003. He has written case summaries
for NACVA publications, and spoken about case law at
national events, including NACVA conferences.
Brooks, the minority shareholder, dissented from a merger of appellee closely held family corporation into another
business. When Brooks’s demand for payment remained unresolved, the corporation petitioned the Bell Circuit Court
(Kentucky) to determine the fair value of the shares plus
Both parties appealed the trial court’s determination, which
included a marketability discount. On appeal, the main issue
discount to the adjusted net book value of the corporation’s
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July/August 2011
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A P R O F E S S I O N A L D E V E L O P M E N T J O U R N A L f o r t h e C O N S U LT I N G D I S C I P L I N E S
•
p r A C t i C e
m A n A g e m e n t
Keys to Growing Your Practice
•
are you hiP?
Y
ou may be hip and don’t know
not the adjective most used to
describe business valuators.
But if you and your firm use “content” as
a business development tool, then you
are definitely hip.
In the world of professional practice
development, content marketing is cursolo practices to large firms, content
marketing is now a preferred way to
reach potential clients, demonstrate expertise, establish a reputation for authoritativeness, build trust, and generate inquiries (or visits to your website). Pairing
content marketing with more traditional,
face-to-face marketing efforts—such as
speaking engagements, teaching, community involvement, and networking—is
a potent combination.
Chances are you couldn’t care less
be hired. OK, let’s talk about the tangible
benefits, rather than the hipness, of content marketing.
Content marketing is promoting
your services using educational and
informative literature such as newsletters, bylined articles, blog posts, white
papers, speeches, webinars, PowerPoint presentations, podcasts, books,
book chapters, case studies, and vid42
July/August 2011
By Barbara Walters Price
eos, among others. Content is effective
as a marketing tool only if it is created
with the needs of your target market
in mind, and shared via media outlets
(including your own website and webbased media) that clients, prospects,
and referral sources normally consume
Content marketing has been around
and large firms, and some small firms,
have been doing it all along. Just in the
past decade, the word “content” has
been adopted to include not only traditional printed media, in-person presentations, and “old” electronic media
but also “new” web-based publications
and social media as well. The lower cost
of dissemination offered by the Internet
makes content marketing more affordpractices. Note that “more affordable”
doesn’t automatically mean more costeffective; any form of marketing, even
those that cost nothing, have to be done
effectively to be cost-effective.
There are two steps to effective content marketing: producing content and
leveraging it. In this article I’ll give you
tips on content production, and in the
next issue I’ll discuss leveraging your
content, i.e, being hip.
PRODUCTION STEP 1: RELEVANCE
content. Good business valuators have
always understood the value of educating
our referral sources and clients. However,
based on my experience and knowledge of
the profession, while many business valuation firms are producing content, they
are often not focused on relevant content.
Many professionals compose content
based on what they know, rather than what
their clients need to know. It’s not about
you (your expertise, your experience, your
knowledge), it’s about readers (their problems, their challenges, their passion).
So the first challenge of producing
content isn’t composing it (or acquiring
rights to use it), it’s learning what keeps
them awake at night. How can you learn
that? Ask them. Also:
Attend their conferences and webinars.
publications and online media (such
as LinkedIn discussion groups).
Study their business models, and
stay abreast of relevant court cases.
By consuming the media that they
consume, you can figure out what you
can provide that isn’t already available;
what information needs further explain-
  
A P R O F E S S I O N A L D E V E L O P M E N T J O U R N A L f o r t h e C O N S U LT I N G D I S C I P L I N E S
ing or clarifying for your specific readers and listeners, and in what formats
they want it. Providing content that is
absolutely relevant to the needs of your
target market will distinguish you from
the mediocre mass of content providers.
PRODUCTION STEP 2: SUBSTANCE
There are two ways to provide content to your market, whether printed or
electronic:
Create it yourself.
Purchase it pre-packaged.
DIY Model. Doing it yourself, under
your own byline, is the most impressive
option. Of course it is the most timeconsuming, and it requires writing, editing, and maybe some graphic design
and formatting skills.
If you don’t have those design skills
yourself or on staff, you can hire freePre-Packaged Content. Pre-packaged (also known as canned) content for
business valuators most often comes as
newsletters or articles for newsletters,
on which you can imprint your firm’s
name and contact info for distribution
by mail within a designated territory, or
by e-mail to a limited range of clients,
or as a feature of your website. There
are several service providers, includnewsletter called Insights on Valuation
aged content providers include PDI
While canned content is less precisely relevant to your target market
  
ing and a good place to start. If you do
plan to purchase content (along with the
right to distribute it), do so for only a
short time while you begin to develop
your own content.
REPURPOSE
A robust content marketing strategy requires repurposing content. That
means adapting content from one
format to other formats. The more
hooks you put in the water, the more
fish you are likely to catch, because a
key component of a content marketing strategy is using your content to
attract prospects.
Here are a few ideas for repurposing
content:
Barbara Walters Price
is senior vice president of
marketing, and a member
of the board of directors,
of Mercer Capital (www.
mercercapital.com). She has
been marketing professional
service firms for 26 years.
If you’re giving a speech or teaching
a seminar, turn your presentation
notes and materials into a bylined
article, and place that article in your
firm’s newsletter. Place that newsany visual aids that you used in your
presentation) on your firm’s website. Upload the slides to SlideShare
(www.slideshare.net) in order to feature it on your LinkedIn profile.
Turn that process around: After you
write an article, leverage it into a
Collect your blog posts on a particular subject, and work them into a
booklet. Write a brief introduction
and conclusion, and edit the posts
dump the content from one medium
to another).
It’s hard work to create good content,
so make sure you get all the mileage you
can out of every piece. In my next column, I’ll offer tips for leveraging your
content to grow your practice.
VE
July/August 2011
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•
p r A C t i C e
m A n A g e m e n t
Report Writer
Report Writer offers short tips for preparing better reports—from presenting your narrative discourse to showcasing your numerical data. A poorly written report distracts the reader from the positions you take, making them less persuasive. On the other
hand, a well written report is easy to follow and leaves the reader confident in the opinions you express.
•
the coMPany bacKgrounder
E
By Rod P. Burkert, CPA/ABV, CVA, MBA
verything you do in a business valuation is predicat-
the situation it finds itself in as of the valuation date.
tion in your report. Here are my suggestions for how to go
about it.
wRITE A COMPLETE STORy
Third-party users of valuation reports don’t have the benefit
of participating in your management interview and site visit, and
probably don’t even know the company. Thus your company backgrounder should paint a picture that shows the who, what, when,
where, why, and how of what the company is, does, and did.
Here are the topics I discuss in my reports, in the order shown:
Business description and history
Products and services
Sales, marketing, and distribution
Customers
Operations
Management
Intangible assets and intellectual property
Industry and competition
Litigation, claims, and assessments
Company expectations
Capital structure and ownership
Previous transfers of ownership interests
44
July/August 2011
hIGhLIGhT ThE MOST IMPORTANT POINTS
A complete company overview may run five or more
pages of narrative. When you get to the end, what does it all
mean? Did the reader catch your most important points; did
those points to make it easy for the reader: use the heading
ent a bullet list of specific factors that have an impact on
your valuation.
Here’s an example of such a summary from a report that I
recently prepared.
is valuable in that it can serve as a guide about the future
expectations of the business. Thus, the nature of the business and the history of the enterprise since its inception
are considered to influence risks and expected returns associated with the ownership of its securities. Based on my
investigation, I conclude the following:
ABC sells commodity products, and the apparent differentiator is service, i.e., inventory availability, knowledgeable counter people, and timely deliveries.
ABC’s length of time in business and family ownership
has created strong name recognition and reputation in
the markets it serves.
products is limited.
Current management is effective in its ability to maintain ABC’s current competitive position, but there is
no clear management succession plan in place.
  
The
Examiner
Value
Valuation to Data
Rootstackk Newsletter
Publisher, FinAid.org
Fitts Roberts & Company PC
CPA/ABV, MBA, CVA, CrFA, DABFA, ACFE
(713) 260-5230
A. James
Sedwick, Jr.
Ransleben Senterfitt Sedwick & Co PC
CPA, CVA
(361) 882-3132
Aaron
Dillman
Virtus Group LLP
All of the main acquisitions ran inflation at this point can easily go begging in the rush to advocate reflective which is
to do with whether teachers and school leaders actually possess the necessary thinking skills to undertake it
successfully. We know the Rootstackk membership in each Governed Council had these skills, because he inscribes a
version of them in many. But, what about teachers and school leaders? The discourse analysis and phenomenological
enquiry. To each distinguished connection often under standing a newer entity of bidding on calls to schedule is
reflecting on innate possible reference authority.
Life can be full of unexpected moments. Identify a time when you experie ced an unexpected moment. Write an essay
about a time when you experienced an unexpected moment. Explain why the moment was unexpected and how it
affected your life. Be sure to explain your choice by using details and examples.
Many students enjoy doing something special for their family and friends. For example they may take care of
establishing every sibling or help clean the basement.
Write an essay that describes something special that you would like to do for your family or friends. Explain why this
would be something special and how your family or friends might react. Be sure to include details and facts to
support your explanation.
"A journey of a thousand miles begins with a single step." - Confucius
Write an essay explaining what this quotation means to you. Use details and examples in your essay.
"The greatest barrier to success is the fear of failure." - Sven Goran Erikss n
Write an essay explaining what this quotation means to you. Use details and examples in your essay.
"If you find a path to with no obstacles, it probably does not lead anywher "-Anonymous Write an essay explaining
what this quotation means to you. Use details and examples in your essay.
LEVERAGING A PUBLIC-PRIVATE PARTNERSHIP
In recent testimony before a subcommittee of the House Education and Labor Committee, public policy
advocates called for establishing a public-private partnership to encourage private sector investment in student
financial aid. The following proposal for a college scholarship sponsorship tax credit is a practical and easily
implementable method of accomplishing this goal.
Currently, more than 10,000 private foundations, non-profit organizations, community groups, corporations and
philanthropists award more than 1 million scholarships and fellowships worth more than $3 billion each year.
Creating a tax credit for contributions to tax exempt scholarship organizations would leverage a significant increase
in the number and amount of scholarships and fellowships awarded each year. This will make college more
affordable for more students, at minimal cost to the federal government.
Under current law, individuals and businesses may take a charitable deduction for contributions to tax exempt
charitable organizations. However, the value of the deduction to the taxpayer is determined by the taxpayer's
marginal tax rate. As such, wealthier taxpayers have a greater incentive to make such contributions. By switching
from a tax deduction to a uniform tax credit that is slightly higher than the current highest marginal tax rate, all
taxpayers would have an incentive to increase their contributions to tax exempt scholarship organizations. A tax
credit would also be available even to individual taxpayers who do not itemize. This tax credit would stimulate an
increase in private investment in the higher education of American students.
This proposal includes draft legislative language to illustrate how such a tax credit might work. The legislation
includes provisions to prevent self-dealing and double-dipping.
The bill would benefit students by increasing the number and amount of available private scholarships. Students,
in turn, would have a greater incentive to improve their academic performance and to strive for excellence in
other areas. The bill would also help students meet financial need that is unmet by existing student aid programs.
The bill benefits taxpayers by reducing the cost of donating funds to a tax exempt scholarship organization.
Many would use the savings to increase the size of their donations. Some would increase their contributions
even further.
Package Report
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Now, looking back, I can point out the exact moment my identity shifted
from outsider to belonging, the exact moment my academic identity snapped
into being and I knew what it meant for me to be an academic. The McNair
Co-director, whose graduate education was also in English, encouraged me
to attend a reading by Dr. Victor Villanueva. She said Dr. Villanueva was
exactly the kind of scholar I needed in my body of knowledge. He was First
Generation, he was Latino, he was in my field, and he was a teacher. She
was right. I read his essay, “Memoria Is a Friend of Ours: On the
Discourses of Color,” the night before, and the creative writer in me
loved that his essay mixed poetry, narrative, and formal academic
language. While I listened to him reading in a voice that sounded like
home, using expressions that I understood but could not translate because
he is Puerto Rican and I am Mexican and I don’t really speak Spanish, I
recognized characteristics we shared. I listened to that beautiful
reading, and I was proud to be represented by him, proud to hear him speak
truth and power. I looked at him and thought, I can do this. I felt the
power of his words, the charisma of his personality, and I knew―really
knew―that people like me belonged in academia, that we did this work. That
I could do this work. More importantly, I knew that I owed it to my nieces
and nephews, to other students like me to reinvest my education so that I
would someday stand, as he stood, reaching a hand to others like me.
This moment never fails to remind me that our students don’t just “invent
the university” on their own—they do it in relation to us, their faculty,
their mentors, their advisors, and their peers.
The student is not just
learning to “speak our language,” they are developing a whole new way of
being—one that will allow them to join us at the table.
So that’s my second way of teaching writing so that our students learn
more about what it means to be human. I show them people like themselves
doing academia. I give them stories by folks who share that cultural,
community, and familial memoria. I encourage them to dream of a future
where they are holding their hand out to lift the next generation.
Whatever it looks like in your classroom, give them work that reminds them
that they belong here. Give them work that helps them understand
themselves and each other better. Give them work that lets them dream
about the future. This is the work that keeps us connected. This is the
work that might just help us finally answer the question, “Is it possible
to teach writing so people will stop killing each other?”
issue #134
03/23
Jim Jones crying under
the watchful eyes of
funk flex dressed like a
bootleg
pirate
king
from the 80’s. Jim
Jones cryin under the
light of the wolf,
the worm, earth, mother, grandmother
Bitch
In the half shadow of saturday mornings when your mama was crying in the kitchen
under the cover of innocence
Jimmy’s
what you call
your lover
Your little cousin whos a
little off
your mixed little brother playing pontiantic dreams in the scrap yards of philly ;
With the letterings of letters not
yet ready to be born birds.
Jimmy
is cryin under
the sign
of the star and
shield Arubato Atlantis
the lost kingdom drowned between- the
foruscent lighting of
Funk Flex’s midtown studio is
simply wormholes and graveyards.
trainyards, undoing only to achieve prized becoming, mourning-death.
This is how we’ve always flexed…
survival, the shuntering towards a failed kingdom or an abyss
The hostile swagger when you spit in the face of the apocalypse or a genocide; the feeling I
had the first time I fell in love with a man. I was eleven and it was through the television. Denzil was
hard and soft and I didnt know that was allowed.
The
feeling Of
sinking
The ridiculous and
messy; the slow drip into
The other
(read either) preening
sighing, emotional
wallops and
manly grins as if somehow
through it all
Funk Flex was transference
Me---to
Jimmy
To Jimmy’s grandma-
--you
jim-to-
issue #134
03/23
To an old woman singing
parimendou
(and all at once- lightning
strikes a plantationblind dogs scrape their way through continents and still find
home.
-a bridge is a back)
We
made it ;
because our mothers made us,
tears that are
A
tri-gerantional
blood price
And
with a different set of office furniture,
Funk Flex really could be
your low rent welfare therapist,
who doesn't really care, but’s
alright,
I guess
e-flux Journal
Bosompra (tough/strong/firm)
Bosomtwe
(humane/kind/empathetic)
Bosompo/Bosomketaa
(brave/proud/courageous) Bosmmuru
(Respectable/distinguished) Bosomkonsi (the virtuoso)
Bosomdwerode (the eccentric/jittery)
Bosayensu (The truculent)
Bosomika (the fastidious)
Bosomafram ( the chiraous)
Bosomafram (the liberal/kind/empathetic)
Bosomafi (the chaste)
The Ntoro
Is the spirit of the Askan children who have yet to come into
their becoming
And what are rappers but
lost boys
leading other
lost Boys
Into a wilderness, out of another one,
into burning trestles in an arabian night
a maze through a mass grave
without bread crumbs to lead You
home.
issue #134
03/23
e-flux Journal
issue #134
03/23
Showing Feet at the pray haus
Time eats the wormhole one day a stockade in
Charleston, Louisiana Sun
death wades the long meadows that ache southern sin
crushed ankle + ruptured bloodlines And then, just as
suddenly as a rapture, Hell comes hurling with US
Cleveland too true North
religious forest fires heavens
harvest frost and Iron ore
there you go- towards
Apocalypse .
Your People are dying! Denmark
the walls of the celestial city
pulsate red stone and manure with
limp black bodies and the carved
thighs of the natives.
YAHWEL/
WAKE UP!
Cant you smell the tire salesmen skirting over the Berkshire smog musk
under bugler tongue?
Nervous
light
rough shot through an
ocean smile
and imperial foreststextbook nature
gods dubious
&
wealth among
the gazebo earth
A white maroon, so much so
that upon setting eyes to the moist baby
puke hills uttered:
'NEW ENGLAND'
X ______________________________________
Sudanese/Eritrean poet is the author of the book-length
poem Tel Aviv, released on Porosi Press in April of 2020,
and the forthcoming collection James Baldwin’ s Lungs in
the ’ 80s from Chat
Rooms. Mohammed was born in Sofia, Bulgaria in 1988 and
currently lives in New York City.
SAMPLE CONSENT FORM FOR LEVELS 1 AND 2 RESEARCH WITH
HUMANS
(to be modified for particular study as appropriate)
You are invited to participate in a study of
You were selected as a possible participant in this study because (state why and how the subject was selected) . (State if this is research
for a class, student or personal research, and note any funding agency involved. Thesis research must also identify the program and Bethel
College.)
If you decide to participate, I (or:
) will
(Describe the procedures to be followed, including their purposes,
how long they will take, and their frequency. Describe the discomforts and inconveniences reasonably to be expected, and estimate the total
time required. Describe the risks reasonably to be expected, any benefits reasonably to be expected, as well as any incentives for participation)
.
(If applicable, describe appropriate alternative procedures that might be advantageous to the subject, if any. Any standard treatment that is
being withheld must be disclosed.) .
Any information obtained in connection with this study that can be identified with you will remain confidential and will be
disclosed only with your permission. In any written reports or publications, no one will be identified or identifiable and only
aggregate data will be presented.
(If you will be releasing information to anyone for any reason, you must state the persons or
agencies to whom the information will be furnished, the nature of the information to be furnished, and the purpose of the disclosure. If
you are videotaping, audiotaping, or photographing participants, state how the materials will be used and when they will be destroyed.)
.
Your decision whether or not to participate will not affect your future relations with
________ ______________
in any way If you decide to participate, you are free to discontinue participation at any time without affecting such relationships.
This research project has been reviewed and approved in accordance with Bethel’s Levels of Review for Research with Humans.
If you have any questions about the research and/or research participants’ rights or wish to report a researchrelated injury, please
call an agent.
You will be offered a copy of this form to keep.
You are making a decision whether or not to participate. Your signature indicates that you have read the information provided above and
have decided to participate. You may withdraw at any time without prejudice after signing this form should you choose to discontinue
participation in this study.
Signature
Date
Signature of Parent or Guardian
Date
(This line should not appear on forms that will be given to persons consenting for
themselves.)
Signature of Witness (when appropriate)
Signature of Investigator
2/02
The “Right” way to Model the Timing of Recognition of ITC
Tax advisors working on investment tax credit (ITC) transactions are often asked what is the “right” way to model
the timing of the recognition of the ITC benefit in an after-tax cash Bow model. There is not one answer to this
question; further, some public companies in their after-tax cash Bow models allow their financial statement accounting
policy regarding recognition of the ITC to inBuence their treatment of the ITC benefit in after-tax cash Bow models.
There appear to be two plausible approaches with respect to the timing of ITC benefit in an after-tax cash Bow model.
First, the taxpayer could model the ITC benefit as arising from a reduction in the estimated taxes that would otherwise
be due on the estimated tax payment date that follows the placed in service date of the project that qualified for the ITC.
The rationale for this approach is that the ITC will reduce the estimated tax payments due for that period, so the benefit
arises on the day such estimated taxes are due.1
There is a second approach that could be defensible for certain very large taxpayers that have significant tax benefits from
a variety of transactions. Such a taxpayer could adopt the view that a single investment tax credit transaction would not
have a material impact on its estimated taxes for any particular payment period.
Therefore, such a taxpayer would model the benefit as arising on April 15th following the year in which the project is
placed in service. Such taxpayers often request extensions and file their tax returns later in the year than April 15th;
however, if, at the time the taxpayer requests the extension, it had not paid all of its tax liability for the applicable tax year
then the taxpayer is subject to an IRS interest charge. Therefore, the economic benefit arises on April 15th, even if the
actual tax return is filed later.
Nonetheless, some tax equity investors reject both of these approaches and prefer to spread the recognition of the ITC
benefit across fiscal quarters. This approach appears to be a blending of after-tax cash Bow projections with a financial
accounting concept: they allocate the ITC benefit across the quarters remaining in the year the ITC eligible project is to be
placed in service. This approach may be based on the assumption that once a transaction is in place, the estimated taxes to
be paid during the remainder of the tax year in which the credit will be claimed will be reduced by the amount of the
credit.2 This modeling convention also appears to be an effort to have the modeled projected benefit from the ITC parallel
what is required for financial statement reporting by ASC 740-20-45 of U.S. GAAP.3 ASC 740-
means that if the in-service date slips until after December, then insufficient estimated taxes will have been paid to the IRS
for the year in question which would result in the imposition of an interest charge by the IRS.
1
Estimated tax payment dates are:
Payment Period
Estimated Taxes Due Date
January 1 to March 31
April 1 to May 31
June 1 to August 31
April 15
June 15
September 15 September 1 to December 31
January 15
2
If a transaction is being modeled for investment consideration prior to an estimated tax payment date but the project will
be placed in service after the estimated tax payment date (e.g., the transaction is being modeled during February 2017
and the project is scheduled to be placed in service in December 2017, particularly confident investors could spread the
ITC benefit across all four estimated tax payment dates (i.e., April 15, June 15, September 16 and January 15) on the
theory that the ITC from the November in-service date will effectively reduce what has to be paid in estimated taxes on
the April, June and September dates that pre-date the in-service date. However, this approach
3
A closely related financial accounting issue is whether the tax equity investor uses the “flow through” or “deferral”
approach to determine in which fiscal year it recognizes the ITC benefit on its financial statements. This question
is governed by GAAP and is not reflected in after-tax cash flow model.
1
720290789.10
The Examiner
Flow through means the ITC is recognized as a reduction of income tax expense that must be provided on the financial
statements for the fiscal year the project is placed in service. The arguably less favorable treatment is
20-45, provides that a public company’s effective tax rate (ETR) should not vary significantly from quarter to quarter
within a fiscal year (i.e., the ETR should not be lumpy).
The ITC, unlike accelerated depreciation, is a tax benefit that reduces the ETR because it reduces the amount of taxes
permanently due. Therefore, to avoid having a 10% ETR in one quarter and a 40% ETR in another quarter, the ITC is
typically prorated for financial statement purposes across the remaining quarters in the fiscal year in order to generally
conform to ASC 740-20-45. Tax equity investors in this camp opt to use the same convention to model the ITC benefit
in after-tax cash Bow models.
Such a convention means that the later in the year the project is to be placed in service the greater the time value benefit
of the ITC benefit will be in the model, because the ITC from a project cannot be spread across quarters of a fiscal year
for which the books are already closed. The management of some companies in this camp found that this convention
motivated their deal teams to favor fourth quarter deals. A disproportionate number of fourth quarter deals can strain the
staffing capacity of a company, and if the fourth quarter deals are unable to be closed there is no remaining time to book
deal volume for the year. Therefore, the management of some tax equity investors adopted a modeling convention that
for projects placed in service in the fourth quarter the ITC benefit is divided between the fourth quarter of the current
year and the first quarter of the following year in order to dilute the incentive for the sales force to close as many deals in
the fourth quarter as possible. It is important to emphasize that dividing the benefit between the fourth quarter of the
current year and the first quarter of the next year is merely a modeling convention and tracks neither the actual financial
statement nor income tax reporting.
Another rationale for some tax equity investors dividing the ITC benefit across certain quarters of the year is that their
corporate parent uses such a convention to compensate its subsidiaries for tax benefits realized by the subsidiary that
reduce the consolidated group’s federal income tax liability. Under such an arrangement, the corporate parent plays the
role of tax collector for its subsidiaries; the rules as to when a subsidiary receives the benefit or detriment are governed by
the tax sharing agreement amongst the parent and its subsidiaries. If the performance of the subsidiary and its employees
is measured, for purposes of compensating such employees, based on the rules of the tax sharing agreement, then the
employees of that subsidiary are incentivized to have their cash Bow models track such rules.
In companies where the compensation of employees that originate ITC transactions is not measured based on the financial
consequences of the actual timing of estimated tax payments (or comparable adjustments with the corporate parent),
attempting to mimic the actual precise timing of the estimated tax payments can place the deal teams at odds with the
accounting department that manages the actual payment of estimated taxes and the allocation of the effect of such
payments back to the individual business units. How the tax payments are modeled for a financial transaction may be
substantially different than how they are actually handled between the subsidiary and its parent.
deferral: recognition of the ITC straight-line over the number of years the project is being depreciated for financial statement
purposes. The deferral method is described at ASC 740-10-25-46 as of U.S. GAAP as being considered the preferable method.
However in the case of most investments eligible for ITC that are often subject to a contractual arrangement providing some
assurance as to cash flow, the term of such contracts is often less than the useful life of the asset; therefore, the deferral
deferring ITC recognition for financial statement reporting over an extremely long period does not appear to be consistent
with the tenor of the financial arrangements of the underlying transaction. See, http://www.moneyzine.com/definitions/investing-dictionary/investment-tax-credit. That is the economic “useful life” 2
720290789.10
used for financial statement purposes (not the five year MACRS life used for income tax purposes);
for a solar project that could be 35 years or more. Companies that claimed the ITC prior to the Tax
Reform Act of 1986, when new equipment of all types was ITC eligible and more likely to have
adopted the less favorable deferral approach.
The various conventions described above demonstrate how tax equity investors can be idiosyncratic. It often is a fruitless
effort for a developer to try to persuade an experienced a tax equity investor to modify its approach to modeling the
projected timing of the ITC benefit. However, if the transaction happens to be an investor’s first ITC eligible investment,
the developer may be able to gently guide it to the convention of modeling the projected ITC benefit on the estimated tax
payment date that follows the date the project is projected to be placed in service. Further, for both tax equity investors
and developers in transactions in which the sharing of economics “Bips” after the tax equity investor achieves an after-tax
internal rate of return on its investment,1 the critical principle is that the deal model’s approach to the timing of the
recognition of the ITC benefit ties to the provisions in the transaction documents that govern the calculation of the tax
equity investor’s after-tax internal rate of return (and accordingly when the Bip will be determined to have occurred).
When developers model projects for investment planning purposes in anticipation of how the tax equity market will view
the project, they need to ensure that even if the actual tax equity investor has one of the less favorable ITC modeling
conventions that the economics of the transaction will still be acceptable. In other words, do not use too sharp a pencil
when undertaking generic modeling of the ITC benefit for a project in the early stages of consideration.
1
See, e.g., Revenue Procedures 2007-65 and 2014-12.
3
720290789.10
SAMPLE CONSENT FORMFOR LEVEL
RESEARCH
3
SURVEY
(to be modified for particular study as appropriate)
(may be used with some survey research, consult your advisor)
You are invited to participate in a study of
(state what is being studied)
. I hope to learn (state what the study is
designed to discover or establish) . You were selected as a possible participant in this study because (state why and how the subject
was selected) . (State if this is research for a class, student or personal research, and note any funding agency involved. Thesis research must
also identify the program and Bethel College.)
If you decide to participate, I (or:
and Lukas Nause
associates) will ask you questions regarding
(Describe the general topics of questions, the number of questions, and approximately how long they will take to answer. State how the
data will be recorded. Describe any risks reasonably to be expected, any benefits reasonably to be expected, as well as any incentives for
participation.) .
Any information obtained in connection with this study that can be identified with you will remain confidential and will be
disclosed only with your permission. In any written reports or publications, no one will be identified or identifiable and only
aggregate data will be presented.
(If you will be releasing information to anyone for any reason, you must state the persons or
agencies to whom the information will be furnished, the nature of the information to be furnished, and the purpose of the disclosure).
Your decision whether or not to participate will not affect your future relations with the
(institution or agency)
in
way. If you decide to participate, you are free to discontinue participation at any time without affecting such relationships.
any
This research project has been approved by my research advisor in accordance with Bethel’s Levels of Review for Research with
Humans. If you have any questions about the research and/or research participants’ rights or wish to report a researchrelated
injury, please call (name and phone number of all researchers and faculty sponsor) .
By completing and returning the survey, you are granting consent to participate in this research.
Third Day-Wednesday Morning Session
Invocation
Almighty and eternal Cod, Father of all men, wa pause in Thy presence this mom-ins seeking a word of direction. Yea,
we realize that Thy presence is always the hap-pineH of our condition. We therefore be-seech Thee that Thou wouldst
irrant Th,, presence unto this convention. BleH, Oh irracioua Cod, the noble ideals and the hiirh principles of the American
Federation of Labor. BleH Thou, oh irracioua Father, all upright employers and faithful laborers. Secure to all their just
recompense and re-ward. Defeat the schemes of dishonesty, extortion and fraud. Let none take the people's inheritance
by oppreHion and thrust them out of their position. Change the hearts of those who feel unjustly with fellow men, Deliver
them that are op-preHed out of the hands of the oppreHor. Keep us and all Thy children from greed and duplicity, from
malice and from every evil work. Let ua not make blood our hope nor trust in uncertain creatures, but in Thee, the living
Cod. Supply our temporal needs and let us not fail to lay up abidina treasure unto Thee. Make us true to the ideals and
example of our BleHed Redeem-er, that faithful toiler, aa that we miirht indeed advance the interests of men and women,
that when our work ia done we shall have rest with Thee, throuirh our Lord and Saviour, Jesus Christ, who would have
ua pray toirether: Our Father, Who art in heaven, hallowed be Thy name: Thy kindom come, Thy will be done on earth
as it la in heaven. Give IHI this day our daily bread, and foririve ua our trespaHea 11.11 foririve those who trespass against
us, and lead aa not into temptation, but de-liver us from evil, for Thine ia the kingdom and the power and the irlory
forever, Amen.
Mr. Peter J. Brady, Preaident of the Fed-eration Bank, New York City, announced that the airplane aent to New Orleana
through the courteay of the War Depart-ment would be available during the day at
Callendar Field for thoae delearates who wished to take advantage of the oppor-tunity to aee New Orleana from the air.
The quartet made up of member• of Electrical Workera' Unions Noa. 84, and 613, At-lanta, Georaia, which appeared
at the open-ing aesaion of the convention, a intro-duced and entertained the deleaatea with aeveral aelectiona, which
were enthualasti-cally received.
Prealdent Green: Now I have the pleaa-ure of preaentlna to you the fraternal dele-aatea from the Brltiah Tradea Union
Con-areas and the Canadian Trades and Labor Conaresa. I can appreciate fully the fact that you are waiting for the
messages that these fraternal delegate• will bring to you this morning.
It is Indeed a happy situation in which we are permitted to exchange fraternal dele- gates with the great
labor movement of Great Britain and with the Canadian Tradea and Labor Congress. For many, many
years 1'inl have maintained with unbroken regularity this fine and beautiful custom of sending
representatives from the Ameri-can Federation of Labor to the British Trades Union Congress and to
the Canadian
Trades and Labor Congress, and in tum our fellow workers have sent their repre-sentative•
to attend our great Congressea of ·labor. In that way a have maintained a co-operative
relationship and we have de- veloped underatandlng 7nd good will.
I aincerely hope that as long a■ our or- ganization laata
and as long as the Brit-
ish Trades Union Congress functions, and aa long iu there is a labor movement in Canada,
we will continue thia practice of exchanging fraternal delegatea. I know you
are anxioua to hear from our distinguished visitora, and
because you are I am glad now to introduce to you the first
speaker, Brother J.
Congress to the American Federation of Labor.
The report of the committee was adopted.
D OCUMENTATION
/
‘What You Don’t See and Don’t Hear’: Subject Indexing Moving Images
D OCUMENTACIÓN
“I had the chance to shake the hands of many great directors,” says Okajima Hisashi. “It was exciting, but not as
exciting as touching the original print of a Lumière Brothers film.”
Okajima, Curator of Film at the National Film Center of Tokyo’s National Museum of Modern Art, is at a dinner of Asian
archivists, who are in town for the official opening of the Hong Kong Film Archive and to attend a symposium held on
January 8. Film archivists are a special breed. As Ray Edmondson, President of South East Asia/Pacific Audio Visual
Archive Association, observes in the symposium, they love film. This must be the case or else they wouldn’t have put up
with their always demanding work. But they also have to exercise their passion with control. That’s why Okajima is careful
to point out that despite his excitement at touching the vintage celluloid, he didn’t leave any fingerprints.
C HALLENGES
IN
THE A RCHIVING J OURNEY
Film archivists must express their love for film with control because they are at the front line of the battle to preserve the
heritage of films. Cinema may have a glorious history, but its physical heritage is a fragile one. Since the introduction of
projection cinema by the Lumière Brothers in 1895, the world has been playing a catch-up game with the deterioration of
the stock on which images – and, later, sound too — are recorded.
Initially though, the game was not of catch-up but of ridicule. Edmondson quotes a 1897 British newspaper report that
raged against the inclusion of such early film treasures as The Prince’s Derby and The Beach at Brighton in the hallowed
halls of the British Museum: “Seriously, does not the collection of rubbish become a trifle absurd?” Edmondson goes on
to wittily characterize the emergence of film archives in Europe and North America three decades later as establishing
“proper home(s)... for the rubbish bin.”
The heritage of film in Asia is particularly fragile. For a long while, the garbage bins of Asian cinema were a homeless
bunch, not so much because of snobbish rejection of a new and popular medium but simply due to indifference. While
the West waited three decades before establishing archives, it took a lot longer for Asia to get going. The first film archives
in the continent are the ones in Iran, China and India, launched respectively in 1949, 1958 and 1964. Japan,
La conservation à travers le monde Film Preservation Around the World La conservación en el mundo
perhaps the best among Asian nations in protecting its cultural heritage, did not start preserving films systematically until
the 1970s, under the banner of the National Film Center.
Here in Hong Kong, one of the most prolific film centers of the world, the call for a film archive wasn’t even made until
the late 1970s. Not that the people of Hong Kong didn’t care about film – we did, in a big way, and still do — but we had
more pressing matters on our mind than preservation. When the Hong Kong Film Archive was established in 1993 in the
form of a Planning Office, it faced an uphill battle in playing catch-up.
Belina Capul, Staff Director at the Motion Pictures Division of the Philippine Information Agency, tells the symposium
audience that the Philippines does not even have a full- fledged film archive despite its long history of filmmaking. A
national archive was indeed established in 1982 by the Marcos government, but after only three years, with the collapse of
the despotic regime imminent, it was unceremoniously absorbed into the censorship department, the mandate of which
is, of course, not preservation. The role of archiving is now left to the small and under-funded Society of Film Archivists
(SOFIA) which is a coalition of concerned individuals. The Society, however, has no resources to carry out preservation
tasks, serving mainly as a networking body and clearing house for activities.
Political upheavals such as the overthrow of Marcos are commonplace in Asia. In fact, the long and magnificent
history of film in Asia also coincides with a punishing history of turbulence in Asia. The continent in the 20th
century was marked by world wars, civil wars, all kinds of political turmoil and violent economic ups and downs,
none of which were favorable to the preservation of film. It doesn’t help that much of the area was also mired in
various forms of colonial or authoritarian rules, which often imposed denials, if not outright distortions, of local
histories. In Hong Kong, for example, the
combination of a colonial government not eager to
acknowledge the dubious origin of its rule and a people
only too happy to forget what transpired,
resulted in a willing negligence of its past. It wasn’t until the 1980s, with the rise of a search for identity, that the Hong
Kong people rediscovered its history.
D AUNTING
T ASKS
Asian archives face daunting tasks once they are set up. With long- lasting and highly productive industries throughout
the continent, a large number of films had been made. The late start of the
For the Term of His Natural Life, Norman Dawn (1927), Documentation Collection, ScreenSound Australia
A page of History, Hong Kong, 1924-27
Le patrimoine cinématographique de l’Asie est fragile. Non pas que les Asiatiques n’aiment pas le cinéma mais plutôt
que son histoire correspond à celle d’une période de “punition” et de turbulences sur le continent. Les lois édictées
tout au long du siècle par les différentes formes de colonialisme et d’autoritarisme n’ont fait que nier et même
imposer une dénégation des histoires locales. Les archives mises en place tardivement doivent affronter une tâche
titanesque. Le mouvement de conservation lancé récemment doit protéger un patrimoine cinématographique dont
des trésors sont déjà perdus. Un autre problème récurrent est causé par l’industrie du film qui détruit des copies. Le
plus grave est que par manque d’équipement de conservation et d’entretien adéquat, des films pourissent dans des
entrepôts. Un autre phénomène qui ne fait qu’aggraver l’état des films est le climat chaud. En effet, même quand
un lieu de conservation existe, il faut, par manque de place, faire des choix. Ce problème conduit des archives à
instaurer une politique de limitation des collections. En dépit de ces problèmes, les archives asiatiques sont parvenues
à conserver et restaurer une part considérable de leurs héritages cinématographiques. Le programme ‘Asian Film
Archive’ Treasures qui inaugure l’ouverture de la Hong Kong Film Archive est le témoignage de cet accomplissement.
Ce programme comprend des films rares restaurés récemment qui illustrent l’effort fourni en faveur de la culture. La
recherche de films disparus, la publication de catalogues des collections ainsi que les collaborations avec des archives
étrangères sur des projets de restauration font partie des priorités. Si la mémoire des images en mouvement du
20ème siècle appartenait principalement aux Européens et Américains, celle de ce siècle sera le reflet de toutes les
nations et cultures.
preservation movement means huge quantities of cinematic treasures have already been lost even before the archives begin
looking for them. The severity of the situation is best illustrated by India, the most prolific film-producing country in the
world. According to Lalit Kumar Upadhyaya, Director of India’s National Film Archive, an average of 700 to 800 films
are made annually, reaching a peak of 948 a few years ago. Without a legal deposit system, a substantial percentage will
meet no other fate than being lost forever. Take the silent era, for example. About 1,300 films were made in India between
1913 and 1931. Of those, less than a dozen survive.
One common problem is the casual destruction of prints by the film industry. Upadhyaya says in the symposium that
many prints are lost when producers or film companies destroyed them once the films lost their commercial viability. In
the Philippines, Capul adds, negatives are sometimes burned to extract silver in last-ditch efforts to squeeze profit out of
products. To underscore this point, Edmondson provides a remarkable example in which the destruction was actually
carried out for a (cinematic) cause. He shows a clip of an early Australian picture, For the Terms of His Natural Life
(1927), in which a ship is engulfed
in flame. The producers of the film created the fire by stuffing the ship with stocks of old films and setting them ablaze.
One can only say that the effects are truly special.
Losses are heavy even when attitudes toward cultural heritage are not so cavalier. Alam Ara (1931), a monumental work
that is not only the first talkie of India but also the film that instituted the country’s song- and-dance tradition in cinema,
was lost in a studio fire. Today, nothing remains of it except a few frames. A lack of appropriate safekeeping facilities and
adequate maintenance procedures also see many films decay in storage. To make things worse, much of south and
southeast Asia, where filmmaking activities have always been plenty, are blessed with warm climates that nevertheless are
harsh on prints. Tran Luam Kim, Director of the Vietnam Film Archive, reports in a paper presented to the symposium
that the country’s weather led to serious fungus and vinegar damages to prints. In India, heat, dust and humidity – which
Upadhyaya vividly terms “the three enemies of film preservation” – add to the deterioration. The same can be said of
Hong Kong. Cynthia Liu, Head of the Hong Kong Film Archive, reports that some films, recovered after years of sitting
unattended in poorly ventilated vaults or even apartment corners, are in such poor shape that the staff has no choice but
to give up on them. In fact, about one third of the archive’s collection is repatriated from collectors and Chinatown
theaters in North America, where storage conditions are less damaging and the climate much kinder.
And when proper storage facilities are available, there is always the issue of space. The Hong Kong Film Archive, since
the establishment of its Planning Office in 1993, has been launching an aggressive campaign to locate prints and collect
related material. Its efforts are
so successful and the response so enthusiastic that at its 2001 official opening, its world-class vaults are on the brink of
running out of room.
The space problem is even more pronounced in India. With its voluminous output throughout the years, simply putting
a small percentage of it together creates a housing crunch. The National Film Archive is forced to implement an acquisition
policy, says Upadhyaya, limiting its collection to films of special significance, such as winners in national awards, titles
selected for the Panorama section of the International Film Festival of India and box-office performers that indicate social
trends. Similar guidelines are also adopted by other archives, such as SOFIA in the Philippines. But exceptions do apply.
In India, films produced before 1955, the collection of which is considered urgent, are not subject to these criteria.
F RUSTRATIONS
The lack of resources, a universal problem in archiving,
is just as serious in Asia, if not more so. Preservation and
restoration are at once fund- and labor-intensive. With
most governments’ indifference to matters of culture
and most film industries’ apathy towards endeavors that
do not generate income, archives often feel handcuffed
in their work. Many are too under-funded to install the
necessary equipment or delegate staff to implement
pressing projects. Others are too strapped for resources to give personnel proper training. In Hong Kong, the Archive
has to put a hold on the negotiations for several big donations before its new building was completed, simply because it
did not have enough facilities to handle the conservation work. The very thought of cinematic treasures rotting in a dark
corner somewhere is a source of distress for the staff.
Such a case of known whereabouts is of course exceptional. In most instances, it is the locating of films and artifacts that
frustrates dedicated archivists. In her symposium presentation, Capul lists the lack of information on important films as
one of the biggest concerns of Filipino archivists. Even in Japan, well known for its meticulous record keeping, the
National Film Center has difficulties keeping track of prints. Okajima explains that although Japan does not have
provisions for the legal deposit of films, the law does require companies to file a copy of each film with the National Diet.
The problem is that the law also allows for a delay with the filing without specifying the time span of that delay. As a
result, many companies
Real Mother, Philippines, 1939
Goodbye, Shangai, China, 1934
El patrimonio cinematográfico de Asia es frágil. Esto no es porque a los asiáticos no les guste el cine, sino porque su
aparición corresponde a un período de ‘punición’ y de turbulencias históricas en el continente. Las leyes aplicadas a
lo largo del siglo por todas las formas de colonialismos y autoritarismos no sólo ocultaron sino que negaron la historia
de las comunidades locales. Los archivos creados tardíamente deben abordar hoy una tarea titánica. El movimiento
a favor de la conservación iniciado recientemente debe encarar el rescate de un acervo cinematográfico cuyos
tesoros ya están perdidos. Un problema recurrente es el de la destrucción de las películas por la industria. Grave es
también la falta de equipos de conservación y mantenimiento adecuados que provoca la degradación en los mismos
almacenes. El clima cálido y húmedo no ayuda y la falta de recursos impone la adopción de políticas de selección
que conducen a la limitación de las colecciones. A pesar de todo, los archivos asiáticos lograron conservar y restaurar
una parte importante de sus acervos. El programa Tesoros de los archivos asiáticos que celebra la apertura del Hong
Kong Film Archive es testimonio de este logro. El programa incluye películas restauradas recientemente. La búsqueda
de películas perdidas, la publicación de los catálogos de las colecciones y la cooperación con los archivos extranjeros
forman parte de las prioridades. Si la memoria de las imágenes en movimiento del siglo XX pertenece principalmente
a los europeos y norteamericanos, la de este siglo será el testimonio de todas las naciones y culturas.
were able to get away with not submitting prints decades after the films’ completion.
Having a legal deposit system also does not ensure that all the prints will be safeguarded. Zhu Tianwei, Assistant Director
of the Department of Cataloguing and Research at the China Film Archive, discloses that under the new economic
structure of China, more and more films produced through privatized channels are not deposited in the archive, not to
mention the works made without official approval.
S TORIES B EHIND R ESTORED
T REASURES
Despite all the problems, the film archives of Asia have a lot to be proud of. Struggling against almost every odd
imaginable, they have managed to preserve and restore considerable parts of their cinemas’ fragile heritage. The Asian
Film Archive Treasures program that commemorates the official opening of the HKFA is a testament to their
accomplishment.
Included in the program are several recently restored prints, each telling a story of the great efforts that go into the
preservation of film culture. A Page of History (1924-27) is a rare document on the early years of the Chinese republic,
made by legendary Hong Kong filmmaker Li Minwei. The print was safeguarded by the Li family for years and restored
in the 1970s, only to be lost afterwards. Li’s descendants tracked it down recently after much hard work and donated the
print to the Hong Kong Film Archive. From the
China Film Archive comes Goodbye, Shanghai (1934), a restored gem of the “progressive” school of filmmaking in
war-time China, directed by a Korean immigrant and featuring a sublime performance by the screen diva Ruan Lingyu.
In 1994, the Vietnam Film Institute stumbled upon the deteriorating 16mm positive of A Passerine Bird (1962), a 50minute feature about the War of Liberation against the French colonialists. The print shown in the Hong Kong Film
Archive program is a 35mm version the Institute restored from it. The silent film Muraliwala (1927) is a mythological
film, an installment in a uniquely Indian genre, which was recently brought back to its glory by the National Film Archive
of India. From the Philippines is one of only four remaining pre-war titles, My Love (1939), which was restored by the
National Film and Sound Archive of Australia in collaboration with the Philippine Information Agency in 1998 as a
centenary gift from one country to another. And blown up in 1999 to 35mm from three separate 16mm prints is The
Water Magician (1933), a silent classic by the Japanese master Mizoguchi Kenji.
A number of rare films are presented in the lineup. From South Korea hail Hurrah! Freedom! (1946) and
The Public Prosecutor and the Teacher (1948), respectively the oldest film and the only silent film in the Korean
Film Archive’s collection. The King of the White Elephant (1940) is a Thai film emblematic of the country’s
nationalism of the
1940s. The film was produced by then Minister of Finance Pridi Bhanomyong, who went on to become a leader in the
Free Thai Movement. Japan Antarctica Exploration (1912) is an early documentary that remains in good condition and
Diary of Chuji’s Travels (1927) is a silent classic for which cast and crew credits are restored and on which explanatory
titles are added where footage is missing. Both prints are examples of Japan’s remarkable success in preserving its film
heritage. And Real Mother (1939) is another one of the four remaining pre-war films from the Philippines, a musical
drama refurbished by the efforts of the late great Filipino director Lino Brocka.
Also featured are several films with special significance for the Chinese diaspora. Early Taiwan Documentaries (1934 –
43) offers a rare glimpse into Taiwan life during the latter years of the Japanese reign. Wind and Storm Over Alishan
(1950) is Taiwan’s first Mandarin feature. In its language and casting, the film embodies the complicated modern history
of the island in an inadvertent and convoluted way. Ironically, yet rather fittingly, the only surviving remnants of the film
(only 20 minutes are salvaged), unearthed by the Hong Kong Film Archive in Hong Kong, are dubbed in Cantonese. The
amazing Princess Iron Fan (1941) is China’s first feature-length cartoon, created by the Wan Brothers, assisted by a cast
of two hundred artists. The print shown in the program contains many restored missing scenes. Scenes of Yan’an (1938)
is a documentary about life at Yan’an, the communist hideout during the war era. Because of its political content,
possession of the film was an extremely dangerous affair before and during the Civil War. The Hong Kong Film Archive
print was kept intact by the late Wang Man Chee, who literally risked his life to preserve it.
Asian archives also enjoy other triumphs of their work. In Vietnam, the Archive had, after years of research and
experiment, succeeded in solving the fungus problem of its print collection. The China Film Archive, in addition to having
collected over 25,000 films and recovered 8,500 damaged prints, is also dedicated to sharing its riches with the world by
publishing reference books, historical studies, picture books and film studies. In the Philippines, the Society of Film
Archivists has, despite its non- governmental nature and limited resources, successfully coordinated many projects by
bringing national and international agencies together. A total of 22 films have been restored based on an established
guideline of priorities, including two that were completed with the assistance of the Australian and German governments.
Along the same line of international cooperation, the Vietnam Film Archive had been helping Laos in preserving the latter
country’s film heritage. In 1998, the same year the Archive received several hundred Vietnamese features and
documentaries from Germany, it returned all the Laotian or Laos-related films it collected to Laos. Japan, which had
received hundred of its prints from the Library of
Diary of Chuji’s Travels, Japan, 1927
Congress of the United States in the 1970s and 1980s, is now negotiating with Russia to repatriate films that had long been
considered lost.
The National Film Center in Japan has also managed to acquire a large number of its country’s cinematic output despite
less than enthusiastic support from the major film companies. Once the prints are acquired, it can preserve them in one
of the best storage facilities in the world, with a storage capacity of 200,000 cans. In India, the National Film Archive has
successfully salvaged many of its country’s vast cinematic treasure. Currently, it is expanding its scope into also preserving
television materials and is also in the process of building nitrate vaults.
U PHOLDING C ULTURAL
M EMORIES
Past of Confucius
"A journey of a thousand miles begins with a single
step." - Confucius
Write an essay explaining what this quotation means
to you. Use details and examples in your essay.
"The greatest barrier to success is the fear of
failure." - Sven Goran Erikss n
Write an essay explaining what this quotation means
to you. Use details and examples in your essay.
"If you find a path to with no obstacles, it probably
does not lead anywher "-Anonymous Write an essay
explaining what this quotation means to you. Use
details and examples in your essay.
Here in Hong Kong, the establishment of the Film Archive has been met with an enthusiastic response from both the
public and the film industry. A vast amount of prints and artifacts have been collected, preserved or restored, keeping
alive a heritage that had been neglected for a long time. Even before its official opening, the Hong Kong Film Archive
has conducted a wide variety of public service
activities to share its work with a people among the most film-loving in the world. It has staged exhibits of various scales
that showcased the area’s cinematic history and it has published several series of books that cover different aspects of
Hong Kong film history.
Asian film archives have indeed played an important role in upholding the cultural memory of the continent. In his
concluding speech for the symposium, Edmondson points out that the moving-image memory of the 20th century is
largely a Euro-American one, a practice that “must not and cannot continue.” He reiterates the position of the Singapore
Declaration,
made in 2000 at a meeting of the South East Asia/Pacific Audio Visual Archive Association, that “the audio-visual memory
of the 21st century should be truly and equitably reflective of all nations and cultures.”
If anything, Asian cinema has certainly made its presence felt at the turn of the century. Films from the Chinese diaspora
— be they from China, Taiwan or Hong Kong — have at long last established themselves in the pantheon of world
cinema. Countries with fine film traditions have also continued to shine, such as the Philippines, Indonesia and, especially,
Japan. And in
South Korea, Thailand and Singapore, the film industries have been coming of age in a big way, both commercially and
artistically. What’s more encouraging is that, in the increasingly globalized climate of the 21st century, different Asian
cinemas are collaborating with each
In front of the archive’s building at the occasion of the symposium (from left): Mr Okajima Hisashi, Mr Sam Ho,
Mr Ray Edmondson, Ms Belina Capul, Ms Cynthia Liu, Mr Lalit Kumar Upadhyaya, Ms Vinasandhi, Mr Winston
Lee and Mr Park Jin-seok.
From left Ms Belina Capul, Mr Lalit Kumar Upadhyaya, Mr Sam Ho, Mr Okajima Hisashi, Ms Zhu Tianwei, Ms Cynthia
Liu.
other, at once to counter the powerful invasion of Hollywood and to explore shared values in art and entertainment.
Much had been said of the new century as the Asian Century. To many in Asia, that had been mere hype or, worse, spin.
But it is not an overstatement to say that Asia will – and definitely should – play an increasingly equal role on the global
stage. It is hoped that Asian cinema will continue to contribute to that equity by keeping up with its amazing performance
in the latter years of the last century. Regardless, Asian film archives, in their capacities to at once look back and ahead,
will – and should – be an important part of that effort.
América latina, Europa y Estados Unidos Relaciones triangulares en la historia
del cine*
Paulo Antonio Paranaguá
La competencia entre Europa y Estados Unidos está presente desde la introducción del cine en América
Latina, a finales del siglo XIX. Basta recordar las sucesivas presentaciones de los aparatos de Edison y Lumière, amén de
otras marcas. La Belle Époque de la primera década del siglo XX tuvo un claro predominio europeo. La atracción había
dejado de ser la invención misma y se había desplazado hacia las películas. A pesar de ello, la producción aún no se había
consolidado como la fase decisiva del nuevo espectáculo y la exhibición no se había estabilizado ni encontrado sus
fórmulas, ni siquiera su autonomía respecto a otras atracciones.
No estoy seguro de que la época fuera tan bella como se dice, ni de que el origen de las cintas le importara mucho al
espectador. Puestos a dudar de todo un poco, quizás no pudiéramos hablar aún de un espectador, sino más bien de un
curioso. Recién con el alargamiento y la complejidad de la narración empieza a formarse un espectador en el sentido
equivalente al que concurría al teatro. Pero incluso el más perspicaz espectador de entonces, ¿vería entre Cabiria e
Intolerancia la competencia entre dos industrias en ciernes? Es probable que distinguiera una diferencia de marcas o
recursos, pero no le diera mayor trascendencia a la diversidad de orígenes. A fin de cuentas, para el espectador
latinoamericano una y otra eran productos importados en momentos en que la producción se volvía cada vez más ancha
y ajena.
Fue después de la Primera Guerra Mundial cuando la disputa 9 Journal of Film Preservation / 62 / 2001
* Ponencia presentada en la Cinemateca de Luxemburgo el 31 de octubre de 2000, en el seminario “Los cines de
América Latina en un contexto transnacional”, organizado por Marvin D’Lugo para el Clark European Center.
Ganga Bruta, Humberto Mauro
This article is about the concurrence of Europe and the United States with Latin America in the beginning of Latin
American cinema at the end of the nineteenth century. The spectator of the first films was probably not able to
distinguish the European from the North American productions because in both cases the cultures were foreign.
Following the first advance by Europe, and after the First World War, it was the American companies that took on
the conquest of Latin American theaters.
With specific examples, the article analyzes the presence in Latin America of the two cinematographies, which were
untroubled by national cinematographies even during their best moments. This triangular relationship, that of Latin
America, the United States and Europe, is understood as a contribution to the enrichment of a Latin American culture
more often drawn to the United States in reaction to the academicism of the old European culture, at the same time
it is sensitive to the European avant garde movements.
The author considers that the consolidation of Latin American archives and their cooperation are important factors
for the safegarding of the Latin American cultural heritage. He also underlines the responsibility of the historians of
cinema and the festivals to emphasize the values of cinema and not only the contemporary films but equally those
of the past.
comercial cobró fuerza, con la instalación de representaciones de las compañías norteamericanas en América Latina, que
le fueron conquistando el terreno a las empresas europeas momentáneamente fuera de combate por el conflicto bélico.
Hasta entonces, eran pioneros del negocio, como Max Glücksmann o Marc Ferrez, bien instalados en las metrópolis
latinoamericanas y comprometidos con la nueva cultura ciudadana, los que representaban a las marcas de Europa.
En México, pasamos de 55,7 % de películas estadounidenses sobre el total de estrenos en 1920, a más del 90 % en 1927 y
1928: si la Belle Époque fue europeizante, los “Roaring Twenties” fueron años de americanización, entonces como hoy
para muchos sinónimo de modernización. Sin embargo, la primera cifra significa que enseguida después de la Gran Guerra,
el 40 y pico (40,6) por ciento de las cintas importadas provenían de Europa, aunque la contienda desbarató la producción
y frenó las comunicaciones1. En la década del treinta, el porcentaje norteamericano baja a veces por debajo de los 70
%, pero en el marco de una disminución del número de estrenos - ciertos años la mitad del total anual de la década anterior
-, síntoma de crisis y marasmo, general y prolongado. La producción mexicana todavía está lejos de alcanzar el 10 % de
los títulos exhibidos, lo que implica la persistencia de una disputa entre Estados
2
Unidos y Europa en el mercado local . Como las investigaciones de
los mexicanos María Luisa Amador y Jorge Ayala Blanco han encontrado finalmente una emulación, Violeta Núñez Gorriti
nos permite confirmar la permanencia de esa competencia entre el Viejo y el Nuevo Continente en un país sudamericano
más alejado de Europa, Perú: 13,7 % de películas europeas resisten contra los avasalladores 76,6 % estadounidenses, en la
década de treinta3.
En consecuencia de la Segunda Guerra Mundial, en México en la década de cuarenta los estrenos nacionales (15,1 %)
superan por primera vez a los europeos (9,3 %), mientras los norteamericanos se mantienen en 69,2 %4. En los años
cincuenta, Europa vuelve a adelantarse a México por una cabeza (21,3
% y 20,5 % de los estrenos respectivamente) y Estados Unidos retrocede al 54,3 % . Las cifras cubanas 5
disponibles confirman la tendencia. En 1940, los estrenos estadounidenses en Cuba dominan en un 75 %, los europeos
equivalen a los mexicanos (8,3 %)6. En cambio, en la década de cincuenta, el porcentaje norteamericano baja hasta el
49 %, los europeos oscilan entre el 27 y el 32,4 %, las películas mexicanas estrenadas en La Habana caen del 22 al 15 %7.
En Brasil, durante la Segunda Guerra Mundial, la proporción de estrenos
estadounidenses remonta al 86,9 %, mientras los europeos se reducen al 7,7 % (1941-1945); la posguerra
(1946-52) duplica las importaciones de Europa (15 %), en detrimento de los Estados Unidos (72,3 %). Ni durante ni
después del conflicto los estrenos brasileños, argentinos y mexicanos, sumados, superan en Brasil a los europeos8. En
1954, la Argentina peronista aun tenía una
producción elevada (12,2 %), pero las importaciones europeas también se le adelantan (21,2 %), después de los 63,5 % de
estrenos estadounidenses9.
Los años sesenta trajeron mayor diversidad. En México, Europa dispone de 38,9 % de los estrenos,
Estados Unidos de 31,9 % y la producción nacional de 20,1 %10. En los setenta, Europa estrena el 46,2 % de
los títulos, Estados Unidos el 24,9 % y México el
13,9 %11. En cambio, en la primera mitad de la década del noventa, los estrenos norteamericanos se elevan al 59,6 % del
total, la producción mexicana se mantiene en 19 % y las cuatro principales
12 cinematografías europeas suman un 12,7 % .
En Brasil, 1978 es un año de fuerte producción (17 %), que contrasta con un
porcentaje norteamericano modesto (37 %),
13
compensado por una elevación del europeo (30 %) . La Argentina
de los años 1974-1983 reproduce la tendencia (Estados Unidos: 38,6 %; Europa: 37,5 %), si bien la menor presencia de
los estrenos nacionales (9 %) acentúa la competencia transatlántica14.
Los datos de países con menor capacidad productiva no se apartan demasiado de la línea. En Perú (1980), 47,3 % de las
películas vienen de Estados Unidos, 33,2 % de Europa, 10 % de México. En Panamá
(1984), 70,7 % de los estrenos son norteamericanos como lo era entonces el Canal, 23 % son europeos15. En Venezuela,
al principio del auge productivo (1975-76), Estados Unidos (40,3 %) y Europa (36,4 %) se disputaban el terreno mano a
mano, los estrenos nacionales representaban menos del uno por ciento (0,9
%), si bien la suma de los latinoamericanos alcanzaba el 15,5 %, gracias a México (11,5 %). Diez años después (1985-86),
cuando el proteccionismo había surtido su efecto, Venezuela se alzaba al 3,2 % del total de estrenos, América Latina en
su conjunto apenas llegaba al 11,6 %, sin afectar lo más mínimo la hegemonía, por el contrario, pues Estados Unidos
domina con un 70,3 %, en detrimento de Europa (14,4 %), que aún supera la producción regional16.
Desde luego, el número de estrenos no indica automáticamente el grado de penetración de las películas en el mercado, ni
refleja los resultados en taquilla. La situación de la capital tampoco es la del resto del país. Sin embargo, a pesar de sus
altibajos, la confrontación entre Estados Unidos y Europa en las pantallas de las principales plazas de América Latina es
un dato permanente a lo largo del siglo XX. Solo cabe subrayar dos hechos fundamentales. Primero, ni el cine mexicano
de la “época de oro” (40-50) ni el cine brasileño de los “años Embrafilme” (70-80), los dos mayores auges productivos del
continente, llegaron jamás a amenazar la supremacía norteamericana. Segundo, cuando el porcentaje hegemónico
disminuyó, la principal competencia frente a Hollywood fueron las películas importadas de Europa y no la producción
local.
La confrontación tácita o abierta entre Estados Unidos y Europa tiende a ser caracterizada en forma maniquea, porque las
dificultades de la producción latinoamericana han sido atribuidas a la
L’article traite de la concurrence à laquelle se sont livrés l’Europe et le Etats-Unis d’Amérique sur le marché latinoaméricain depuis l’arrivée du cinéma en Amérique latine, à la fin du XIXe siècle. Le spectateur de ces premiers temps
n’était peut-être pas en mesure de distinguer les productions européennes des Nord américaines car, dans les deux
cas, il s’agissait pour lui de cultures étrangères. Suite à l’avance initiale prise par l’Europe, et après la Première Guerre
Mondiale, le compagnies américaines se lancèrent à la conquête des salles latino- américaines.
L’article analyse la présence en Amérique latine des deux cinématographies qui ne furent pas inquiétées par les
productions locales même pendant les moments de splendeur de celles-ci. Cette relation triangulaire, que l’Amérique
latine, les Etats-Unis et l’Europe ont toujours entretenue, a contribué a l’enrichissement d’une culture latinoaméricaine plus facilement attirée par les Etats-Unis en réaction à l’académisme de la vieille culture européenne,
tout en restant sensible aux mouvements d’avant-garde européens. L’auteur considère que la consolidation des
cinémathèques latino-américaines et la coopération entre elles constituent autant de facteurs essentiels pour la
sauvegarde du patrimoine latino- américain. Il souligne aussi la responsabilité qui revient aux historiens du cinéma
et aux festivals lorsqu’il s’agit de valoriser et diffuser tant la production contemporaine que le cinéma du passé.
dominación del mercado por la industria extranjera. Aunque este esquema merecería discusión, a menudo se ha dado un
salto mortal desde el comercio a la estética para condenar la influencia hollywoodiense como nefasta. Un análisis fílmico
de los escasos vestigios del silente muestra lo contrario. La influencia del Film d’Art europeo ha provocado imitaciones
teatrales y acartonadas, de un patriotismo típico de manuales escolares, mientras que el aprendizaje
del autodidacta Humberto Mauro frente a las aventuras dirigidas por Henry King y King Vidor ha tenido secuelas mucho
más auténticas y dinámicas.
Durante la primera mitad o por lo menos el primer tercio del siglo XX, la cultura norteamericana ha actuado en América
Latina como un antídoto contra el academicismo heredado del siglo XIX europeo. Y no me estoy refiriendo solamente al
cine, sino también a la música, al teatro, a las letras. El jazz es quizás el supremo ejemplo desde ese punto de vista, con
una repercusión en las orquestas y compositores de América Latina desde los “Roaring Twenties”. Pero la Europa de
entreguerras aporta también su propio cuestionamiento
de la tradición cultural compartida, con el desarrollo de las vanguardias a partir de varios focos más o menos convergentes
París, Berlín, Madrid, Turín, Viena... Contemporáneos de Mauro, Mário Peixoto y su Limite (1931) están sintonizados
con esa efervescencia europea, sin dejar por ello de reflejar una aguda percepción del entorno brasileño.
Tal vez sea posible generalizar la existencia de una relación triangular entre América Latina, Europa y Estados Unidos,
más allá del cine. Quizás sea una característica fundamental de la cultura latinoamericana, una singularidad respecto a
Africa y Asia. Henry James y Alejo Carpentier han explorado la relación entre el Viejo y el Nuevo Mundo, pero por
distintos motivos las Américas no presentan en sus obras el desdoblamiento
Norte/Sur que hoy se impone. Los intercambios caracterizan al mundo desde la era moderna y la época de los
descubrimientos. Sin embargo, en el caso de América Latina estamos frente a una circulación tripolar permanente, desde
el surgimiento de una cultura distinta a la de los antiguos colonizadores, es decir, desde las independencias (en la misma
emancipación podemos detectar una relación triangular, cuya expresión culminante es la fundación del Partido
Revolucionario Cubano de José Martí en Cayo Hueso). En el cine de América Latina, la fuerza de cada polo varía, sin
nunca desaparecer del todo. La revolución del sonoro supuso una consolidación del modelo de Hollywood: la producción
norteamericana en español fue la primera escuela colectiva, práctica, para muchos profesionales. En cambio, la guerra civil
española, la
O segredo do Corcunda, Alberto Traversa, Brasil (1924), included in ‘La memoria compartida’
Un agujero en la niebla, Archibaldo Burns, México (1967) included in ‘La memoria compartida’
llegada de los refugiados republicanos y sobre todo la posguerra representaron una fase de estrechamiento de los vínculos
con Europa. Durante años, las escuelas de cine, las revistas especializadas, las nociones de cineclub y filmoteca, eran
invenciones europeas. El neorrealismo fue la principal alternativa al modelo hollywoodiense. Hoy los latinoamericanos se
forman en América Latina, pero también en Estados Unidos. Habría que investigar las influencias que operan en las
escuelas profesionales o universitarias y sus orígenes.
Aparte de la irradiación proveniente de cada región, hay una circulación que atraviesa los tres polos. El melodrama y el
feminismo son un buen ejemplo de ello. Aunque el melodrama llega a las tablas y a las pantallas de América Latina
directamente de Europa, durante el siglo XIX y el cine mudo, el género fílmico se consolida recién en los años treinta y
cuarenta, cuando viene mediatizado por Hollywood.
Asimismo, el resurgimiento del feminismo aprovecha las movilizaciones europeas anteriores o posteriores al 1968, pero
encuentra su empuje decisivo a partir de la efervescencia norteamericana. Pixérécourt y Simone de Beauvoir prenden en
América Latina no a través del teatro decimonónico o las traducciones de Victoria Ocampo, sino gracias a las repercusiones
de su herencia en Estados Unidos. Melodrama y feminismo no cruzan directamente el Atlántico, sino que pasan por el
Pacífico. Demás está decir que el polo latinoamericano tiene su propio dinamismo interno y que Buenos Aires, México,
Río de Janeiro o La Habana proyectan sus influjos en un ámbito más o menos cercano, según las circunstancias.
Así como King fue positivo para Mauro, el jazz para Pixinguinha o Jobim y Faulkner para otro premio Nobel, sería injusto
rechazar a priori la influencia norteamericana hoy nuevamente en auge. El triángulo sigue presente aunque a ratos parezca
latente, visible apenas en filigrana, reducido a una sola vía y a una sola mano. La presencia de cada polo siempre varió
según las coordenadas de la geografía y la historia. Las grandes ciudades se prestaron a mayores confrontaciones
cosmopolitas y el campo fue visto a menudo como reserva del folclore, si bien el tango, la samba o el bolero, populares
como el que más, son fenómenos típicamente urbanos. Hay una geografía de la pelota, con una zona donde el baseball ha
tenido la preferencia y otra donde el futbol echó tempranas raíces, que reproduce en el campo del deporte la mayor
cercanía cultural con Estados Unidos o Europa. Desde entonces, la asimilación ha relegado al olvido el origen foráneo y
asistimos a una especie de campeonato permanente para saber cuál juego es más autóctono...
La identificación de los tres polos y la reactivación del diálogo entre ellos es una manera de mantener la originalidad de
esa relación cultural compleja y evitar las confrontaciones binarias, propensas a una polarización maniquea. No me refiero
sólo a las coproducciones, sino también a los estudios sobre el cine. Aunque la historiografía latinoamericana haya
cumplido sus cuarenta años, la edad de la
madurez, sigue siendo desconocida por disciplinas afines, por los especialistas en comunicación, los académicos de lengua
y civilización, los historiadores en general. No cabe culpar a nadie sino a los mismos estudios fílmicos, demasiado
endógenos y autosuficientes. El cine es algo demasiado serio como para dejarlo en manos de los cinéfilos... La condición
de minoría marginada de cada uno de los focos de investigación necesita apoyarse en los colegas de otros países. Aunque
parezca una obviedad, estamos muy lejos de ello. Tanto en América Latina, como en Estados Unidos y en Europa, existe
una especie de soberbia académica, cuando no de llano nacionalismo, excluyente y xenófobo, que transforma a los demás
en seres transparentes, invisibles, puros fantasmas. A veces, el otro queda reducido a materia prima, a fuente primaria o
secundaria, sin que merezca la consideración mínima de ver discutidas sus evaluaciones y presupuestos. Tengo serias dudas
una cuestión
de moral, pero en cambio estoy seguro de que una bibliografía sí lo es: dime a quién lees y te diré quién eres...
Sin diálogo no hay conocimiento, sin instituciones adecuadas no hay investigación con un mínimo de continuidad. Quizás
podamos reemplazar el espíritu de competencia por el de cooperación en torno a unos objetivos limitados, de común
interés, que no requieran demasiada burocracia para su implementación.
Aparte de la universidad, la filmoteca es el segundo requisito para el desarrollo de los estudios cinematográficos. En
América Latina, la situación es sumamente precaria. El único laboratorio de restauración en funcionamiento permanente
es el de la Filmoteca de la UNAM (Universidad Nacional Autónoma de México). En São Paulo, la Cinemateca Brasileira
ha inaugurado en julio de 2000 la primera bóveda construida según las reglas formuladas por la FIAF (Federación
Internacional de los Archivos Fílmicos), pero su laboratorio funciona en forma intermitente. Ni siquiera en esos dos países
la situación es satisfactoria: si la Filmoteca salió ilesa de la peor crisis de la UNAM (diez meses de huelga), la Cineteca
Nacional fluctúa según los sexenios; en Río de Janeiro, la Cinemateca del Museo de Arte Moderno está en peligro, reducida
en personal y recursos. En la Argentina, los archivos privados se han quedado estancados en el tiempo y la Cinemateca
Nacional, creada por ley, aún no ha salido del papel. En Lima, La Paz, Bogotá y Barranquilla, La Habana, Montevideo o
Caracas, faltan los recursos para conservar y valorizar las colecciones. En otros países, y especialmente en Centroamérica,
ni siquiera existen filmotecas dignas de ese nombre.
Sin abusar de las cifras, un solo dato muestra el déficit en que se encuentra el patrimonio fílmico latinoamericano. El
programa de restauraciones divulgado bajo la denominación La memoria compartida, coordinado por la Filmoteca de la
UNAM, fue posible gracias a la ayuda de 60 mil dólares proporcionada por la Agencia Española de Cooperación
Internacional. En Francia, el Servicio de los
Archivos Fílmicos del CNC (Centro Nacional de la Cinematografía) cuenta con un presupuesto anual para restauración
de 44 millones
de francos, independientemente de los gastos de personal17. Más allá del carácter de las ayudas proporcionadas por
entidades como la AECI (considerando, además, que el aporte de la Agencia ha sido renovado una vez, pero no constituye
una partida anual) y del hecho de que el Service des Archives du Film dispone del mayor presupuesto del mundo en este
rubro, siendo el patrimonio francés uno de los más ricos del planeta, la disparidad de cifras no deja de ser significativa.
Francia está terminando antes de lo previsto su “plan nitrato” (el traslado del material a copias de seguridad), mientras
América Latina sigue considerando a la piedra como casi único soporte de su patrimonio cultural.
Los historiadores, los universitarios y los estudiosos del cine disponemos de escasos medios para nuestra acción. Pero
quizás tengamos la posibilidad de valorizar el patrimonio fílmico, mostrar la urgencia del rescate de las películas, a través
de nuestras iniciativas, manifestaciones, publicaciones, coloquios y encuentros. Todo festival de cine tiene un compromiso
no sólo hacia el cine que se está produciendo en el presente sino también hacia el pasado, que necesita ser rememorado
una y otra vez por medio de retrospectivas y enfoques adecuados. En este terreno modesto, pero fundamental para el
futuro de los estudios cinematográficos, tenemos todos una responsabilidad. Dime qué has hecho para preservar la
tradición y te diré qué tan renovador eres.
13 Octavio Getino, Cine latinoamericano, economía y nuevas tecnologías audiovisuales, Legasa, Buenos Aires,
1988, 320 p.
14 Idem
15 Tulio Hernández, Alfredo Roffé, Ambretta Marrosu et al., Panorama histórico del cine en Venezuela, Fundación
Cinemateca Nacional, Caracas, 274 p., il.
16 Iván Trujillo Bolio (Filmoteca de la UNAM) y Eric Le Roy (SAF, CNC) en una mesa redonda sobre el patrimonio
fílmico latinoamericano, en el festival de Biarritz, el 26 de septiembre de 2000.
Film Archives of the National Archives of
Zimbabwe
M.C. Mukotekwa
The Audiovisual Unit of the National Archives of Zimbabwe (NAZ) houses the film archives of the institution as well as
other audiovisual material. This includes sound archives, slides and literature. Until 1988 the Unit was part of our National
Library. Assistance in setting up the Unit was obtained from the
Beit Trust and from Japan. The Beit Trust helped us secure the Steenbeck editing table and funds from the Japanese
Cultural Grant Aid were used to acquire the ultrasonic film cleaning machine and telecine equipment . The Japanese also
donated a theatre projector which we have not been able to use since 1991 because there was no auditorium. However
the government has now provided the funds for the construction of an auditorium.
Los Archivos Cinematográficos de Zimbabwe, creados en 1935, forman parte de la Unidad Audiovisual del Archivo
Nacional de Zimbabwe (NAZ) desde 1988. Sus colecciones comprenden principalmente películas provenientes del
Ministerio de Información. Las películas depositadas por los organismos estatales son principalmente noticiarios,
películas pedagógicas, documentales, propaganda política y entrevistas producidas por empresas o agencias locales
de la administración colonial. Los investigadores y el público tienen acceso a las producciones inter- nacionales sobre
todo a través de las colecciones de films en video. La cooperación internacional está funcionando a varios niveles:
Japón ayudó a la NAZ obsequiando un equipo de proyección para una sala de proyecciones que se encuentra
actualmente en construcción. La ausencia de disposiciones legales en materia de depósito (no hay ley de depósito
legal en Zimbabwe), hace que las películas de producción privada deban ser adquiridas. La catalogación de las
películas se efectúa con un programa de documentación de la UNESCO. NAZ firmó un convenio de cooperación con
el Nederlands Filmmuseum mediante el cual dos de sus archivistas pudieron capacitarse en Holanda en junio de
1999.
N ATURE OF H OLDINGS
The NAZ is a state archive and hence addresses itself mainly to the needs of various government departments. As a result,
most of our films were deposited by the Ministry of Information. There are very few films made by independent producers
because there is no law binding these producers to deposit their productions with the Archive. We are directly funded by
the government and we have insufficient funds to purchase prints from independent producers
The bulk of the films in our holdings was produced by the Central African Film Unit (CAFU). This was government
sponsored and operated between 1948 and 1963. CAFU was a regional film unit serving Zimbabwe, Zambia and Malawi.
Apart from CAFU, we also have films produced by British Gaumont, Pathe, International Television News, British
Information Service, Rhodesia Information Service, Rank and Zimbabwe Information Service. These are mainly
newsreels, instructional films, travel films, interviews, political broadcasts and documentaries.
CAFU’s main concern from 1953 to 1963 was publicity and propaganda films intended to popularise the Federation of
Rhodesia and Nyasaland at home and abroad. They also made instructional films for Africans designed to teach basic
concepts about better living conditions to largley illiterate audiences.
Most of these films were silent because they were normally interpreted by narratiors into the specific language of different
audiences.
CAFU also made newsreels. There were different newsreels for blacks and whites. Rhodesian Spotlight (1953 - 1963)
were made for the whites and Rhodesia and Nyasaland News (1957 - 1963) were made for the blacks. The former was
produced twice a month whilst the latter was produced once a month. These newsreels covered events within the three
territories. As a former British colony, we also have films on Britain and the Empire. Most of these are in the form of
newsreels and were produced by the British Information Service. These are films promoting Britain and major British
events like the coronation of Queen Elizabeth II.
There is a small but growing collection of films on video. Most of the videos are purchased and have to do with Zimbabwe.
The few feature films we have are on video.
Films that are in great demand are put on video for easier access and to conserve the original. Some videos are deposited
by producers/researchers in return for use of our footage. The videos are recorded on U-matic and VHS.
D ATABASE
M ANAGEMENT
The Audiovisual Unit has compiled a computerised catalogue of films using a UNESCO software package called
CDS/ISIS. We have created four databases for film namely: Rhodesia Spotlight, Rhodesia and Nyasaland News, Video
and General Film. At present the numbers of titles in the databases are as follows:
Films to be catalogued, Film Archives of the National Archives of Zimbabwe
General Films 1828 Rhodesia Spotlight 196 Rhodesia and Nyasaland News 82
Video
The sections on general films and video are still growing as more films are added to the collections. All films in the
other two sections have been entered into their database. We hope to add a database for negatives as soon as we have
the expertise to do so. Negatives are currently listed in a register.
C URRENT
A CTIVITIES
The NAZ and the Nederlands Filmmuseum (NFM) are currently involved in a project called To Preserve the
Cinematographic Heritage of Zimbabwe. The Government of the Netherlands is sponsoring the project. As part of the
project, two audiovisual archivists underwent a three week training programme at the NFM in June 1999. They were
taught about film handling and preservation. For a long time the
archivists were neither trained nor had any exposure in the preservation of film until the NFM came to our aid. For the
moment they are trying to put into practice what they learnt and this to a certain extent means reorganising the film
archives. For instance, all negatives now have to be stored in a climate controlled environment. This training will also help
improve the quality of the information we gather. This entails modifying the database in order to add some aspects of
technical information which we used to overlook. The NAZ prepares a Guide to Audovisual addressing the issues of
conservation, collection and access.
Les Archives du Film du Zimbabwe ont bénéficié de l’aide du Japon qui leur a offert l’équipement pour une salle de
projection en construction. Le Beit Trust a fourni du matériel de restauration. La plupart des films conservés
proviennent du Ministère de l’Information ; le système de dépôt légal n’étant pas obligatoire, les films indépendants
doivent être achetés. Les films de l’Etat sont essentiellement des actualités, des films pédagogiques, des
documentaires de voyage, de la propagande politique et des interviews, produits par les agences locales ou des pays
colonisateurs. La collection de longs métrages s’enrichit surtout de vidéos: des dépôts de producteurs et des
chercheurs en retour d’utilisation de films de la collection. Le catalogage des films est informatisé sur un programme
de l’UNESCO. Le NAZ et le Nederlands sFilmmuseum ont créé un projet d’aide à la conservation de l’héritage
cinématographique du Zimbabwe qui a permis à deux archivistes de suivre une formation aux Pays-Bas. Cette
formation, riche en connaissances nouvelles, permet d’envisager la restructuration de l’archive. Le NAZ travaille
actuellement à la publication d’un guide pour l’audiovisuel.
Lighting Out a Collective Past:
to Find, Preserve and Research Flemish
Non-fiction Films
Daniel Biltereyst & Roel Vande Winkel
The Belgian Royal Film Archive (RFA) is mainly known for its large collection of international features. Since the
beginning, however, it has of course also been housing local productions. These include Belgian film materials, from both
French and Flemish communities, including fiction as well as non-fiction films. The latter consists of a particularly rich
collection of films, ranging from documentaries, educational films and advertising material to newsreels from local and
foreign companies active in the Belgian film market. One year ago a collective research project was launched by the RFA
and the
Si la Cinémathèque royale de Belgique possède une grande collection de films du monde entier, elle n’est pas moins
une archive centrale pour les productions locales. Depuis ses débuts, la cinémathèque a rassemblé les films belges
des communautés flamandes et francophones, aussi bien des films de fiction que de non-fiction. Ces derniers
constitutent une large collection allant du documentaire, au film pédagogique, publicitaire ou d’actualité produits
par des sociétés locales ou étrangères actives sur le marché belge. L’année dernière, un projet de recherche fut lancé
conjointement par l’archive et l’Université de Gand. L’objectif de ce projet est le catalogage et la documentation des
films de non- fiction flamands issus de la collection et d’ailleurs. Dénommé
Throwing light onto a collective heritage, le projet vise à créer les conditions nécessaires pour la recherche sur ces
films. La première partie consiste en un inventaire systématique des films de non- fiction ayant trait à l’histoire et à
la société flamande, entre 1895 et 1955. Plus de 2500 titres ont été retrouvés dans le catalogue jusqu’à présent. La
deuxième partie du travail consiste en la recherche systématique dans les collections d’autres archives, institutions,
entreprises, collections privées, etc. L’inventaire et la description des films seront repris dans un guide qui pourra
servir aussi bien aux
journalistes, qu’aux producteurs de télévision ou aux chercheurs. Les recherches ne se limitent pas à l’époque du
nitrate, elles prennent en considération les collections vidéo et télévision. La troisième phase du projet consiste en
une analyse de titres choisis par l’équipe de recherche ainsi que de l’oeuvre de cinéastes tels que Clemens De
Landtsheer (1894-1984) et sa société Flandria Film. Dans cette section, Roel Vande Winkel présentera son travail sur
les actualités projetées en Belgique occupée entre 1940 et 1944.
University of Ghent in order to describe and catalogue the Flemish part of the non-fiction film collection in (and outside)
the Archive.
In recent times major film archives have been showing a greater awareness of non-fiction film material in their collections1.
Researchers and academics from various domains (including history, film and media studies, historical sociology, etc.) are
increasingly more persuaded that visual history cannot be dismissed. Television and the wider industry also seem to show
more interest than ever in factual film material from the past. In Belgium, the central research fund has now also come to
acknowledge the value of non-fiction film as an important part of the collective cultural heritage.
Two years ago the Flemish department of the Belgian Research Council (FWO-Vlaanderen) decided to create a new
budget line (the Max-Wildiersfonds). This fund, specifically instituted to finance research on Flemish archive collections,
stimulated collaborative work by archives and academics. One of the biggest projects financed through this new budget
deals with non-fiction film related to Flemish history and society. It is promoted by the University of Ghent (through
Daniël Biltereyst from the Department of Communication Studies) and the RFA (through its curator Gabrielle Claes). It
is financed through a four year fund (2000-2003), providing a working budget and two full-time researchers.
2
The central aim of this project, named Throwing light onto a collective heritage [Licht op een collectief verleden], is
to create the necessary conditions for research with non-fiction material in the Dutch- speaking part of Belgium. The
overall project has three main purposes or sections: an inventory of the RFA’s non-fiction material on Flemish history
and society; the development and editing of a guide on other collections containing non-fiction material; and finally
concrete historical research on interesting film material.
S EARCHING FOR F LEMISH
IN THE RFA
N ON - FICTION
F ILMS
The first and main purpose of the overall project is to draw up an inventory of the RFA’s non-fiction film collection on
Flemish history and society. Therefore all films possibly having a Flemish component and dating from 1895-1955, are
taken into account. The temporal limitations are inspired by both the end of the nitrate period and by the start of the
Flemish public broadcaster in October 1953. After running – shuffling actually - through the catalogue, more than 2500
film titles remain up to now. This list of films, continuously increasing due to new deposits, is due to be systematically
viewed on a screening-table and subsequently described. Besides this summary, the database also contains key words, the
names of all recognizable persons, locations and organisations. This ongoing work will open up an important part of the
RFA film collection.
Many films however do only exist in nitrate and/or in a safety negative and can therefore not be viewed immediately.
Fortunately the researchers can rely on Noel Desmet and his team for restoring and safeguarding this precious material.
S EARCHING IN
O THER
( FILM )
A RCHIVES
This search for Flemish non-fiction films is not restricted to the holdings of the RFA. Although the research team has not
yet organized a systematic search for films in other locations, interesting nitrate collections have already emerged from
occasional inquiries. Many of those films such as the entire nitrate stock of the Antwerp City Archive and several films of
Clemens De Landtsheer owned by the Flemish Radio and Television (VRT), have already been restored/safeguarded.
Although the original funds are insufficient to cover such operations, the RFA has decided to put in an extra financial
effort.
In this second section of the project, the research team is planning a systematic survey into film collections owned by
other archives, institutions, companies, private collectors etc. This enquiry will be conducted in the second half of 2001
up to 2002. By
combining postal surveys with working visits to bigger institutions, we hope to map out a hitherto uncharted area. This
should lead up to a guide or a directory with a rather detailed description of those non-fiction film collections which could
be interesting for the study of Flemish (or wider Belgian) history and society. This guide, which will address a broader
audience (including academics, journalists, television producers), will not be limited to the nitrate era and possibly include
video and television collections. This second part of the research project also includes a survey among foreign film
archives.
As such, many archives will be kindly asked for information about Flemish/Belgian films in their collections. Up to now,
three archives (i.e. the British Film Institute, Imperial War Museum and Nederlands Filmmuseum) have already been
addressed. If their fellow archives will be collaborating just as warmly as these three did, our prospects are excellent.
V ALORISING THE R ESULTS T HROUGH
AND
H ISTORICAL R ESEARCH
E XHIBITIONS
The research team hopes that mapping, restoring, safeguarding and opening up film collections, will finally facilitate
historical film research in Flanders and Belgium. However, the third and final purpose of the overall project is to actually
proceed to concrete case studies on interesting material.
Here we decided first of all, to make an inquiry of the film production by Clemens De Landtsheer (1894- 1984) and
his Flandria Film company. De Landtsheer, a fervent Flemish nationalist, holds a special position within Belgian film
history. Best known for his documentary Met onze Jongens aan den IJzer [With our troops on th
Ça c'est Bruxelles, Francis Martin (1927) Francis Martin's romanticized view upon the Brussels 'Marolles' was considered
lost, but thanks to the project the raw material has now been found.
La Cinémathèque Royale de Belgique no sólo conserva películas del mundo entero, sino que también funciona como archivo
central de la producción local. Desde sus comienzos, la Cinemateca reunió las cintas belgas de las comunidades flamenca y
francófona, de ficción y no-ficción. Estas últimas forman una vasta colección de películas documentales, pedagógicas,
publicitarias, presentaciones de empresas locales y extranjeras. El año pasado, se inició un proyecto conjunto con la Universidad
de Gantes que tiene por objeto la catalogación y documentación de las películas flamencas de no-ficción de su acervo y de
colecciones de otra provenencia. Originalmente titulado Throwing light onto a collective heritage, el proyecto apunta a crear
las condiciones necesarias para la investigación sobre estas películas.
primera parte consiste en un inventario sistemático de unas 2500 cintas relacionadas con la historia y la sociedad
flamenca, de 1895 a 1955.
La segunda, tiene por objeto la investigación de colecciones de archivos de otras instituciones, empresas,
colecciones privadas, etc. El inventario y la documentación se incluirán en un volumen destinado a críticos,
productores, investigadores, etc.
La tercera fase prevé el análisis de títulos seleccionados por el equipo de investigación, y en particular la obra de
Clemens De Landtsheer (1894-1984) y su productora Flandria Film. En esta sección, Roel Vande Winkel presentará
su trabajo sobre los noticiarios proyectados en la Bélgica ocupada (1940 – 1944).
Yser] (1928-1929), De Landtsheer was also filming and distributing topical films about Flanders. These newsreels, the
Vlaamsche Gebeurtenissen [Flemish Events], were not only dealing with significant topical matters (like the flood
disasters of 1928-1929) or with political events (which De Landtsheer always viewed from a particular perspective). He
also filmed sporting events, folkloristic parades and local slices of life like the winter festivities in his native village. There
was a fire in his house in May 1940 and only a small
3
A second, major project is the PhD prepared by Roel Vande Winkel – a historian working as film researcher for this
project – on wartime newsreels screened in occupied Belgium (1940-1944). During the German occupation, two newsreels
4
were issued on a weekly basis, both in Flemish and French versions: the Wereld Aktualiteiten - Actualités Mondiales
(1940-1944) and the parallel running Belga Nieuws -
Belga Actualités5 (1943-1944). These newsreels were obligatory opening every commercial film projection. Each episode
was assembled by a Belgian editorial staff, lead by a German chief editor. The newsreels combined local events with
foreign news derived from Ufa’s Auslandswochenschau [Foreign Newsreel], a sister of the Deutsche Wochenschau
[German Weekly newsreel]. This research aims to reconstruct the contents of these newsreels by viewing preserved
newsreel copies and linking that information with various other historical sources. Combining all this information is to
result in an inventory which will form the basis for an in-depth study of the
part of his production was believed to have survived.
more films than hitherto presumed seem to have been rescued. We are currently trying to centralize all existing
materials in order to compare and safeguard them. We also located de Landtsheer’s written archive and business
records, which will enable us to put his films (and their screenings) into a larger context.
However
VN Landdag Wemmel, Clemens De Landtsheer, (1930)
The Flemish political leader August Borms waving to his nationalist fans during a political meeting in Wemmel near
Brussels.
20 Journal of Film Preservation / 62 / 2001
way these newsreels tried to influence public opinion. This research is enthusiastically supported by the
Bundesarchiv-Filmarchiv (Berlin) and by RTBF-Imadoc (Brussels), who preserved most of the newsreels.
Historical film research tends to concentrate – as the above mentioned broader projects demonstrate - on ‘collections’, or
films that can easily be considered/studied as a whole. We therefore decided to also work on some films that are inclined
to receive less scholarly attention, if any at all. Japanse dag te Antwerpen [Japanese Day in Antwerp] is a case in point
of this problem archive staff members are only too familiar with. Given that it lacks intertitles, the one-reeler leaves the
spectator wondering why Belgians paraded through the streets of Antwerp dressed up as Japanese. Since one can hardly
make sense of its content, such films are unlikely to draw the attention of historians or other researchers. They are therefore
doomed to remain unknown. In a modest attempt to break this vicious circle, 35 students from the University of
Ghent were invited to reconstruct the historical context of such news films (1910- 1935)6 by plunging into archives,
reading contemporary newspapers etc. Their research yielded interesting results. For instance: the Japanese Day turned
out to have formed part of a big charity weekend the Red Cross organized in favour of the victims of the earthquake that
shook Tokyo and Yokohama in 1923.
Current research results (like newly discovered/restored films) have already been
valorised on various occasions. The footage was brought to a broader audience
by organizing screenings in film museums and
and by advising television researchers, scholars, students
Chronique historique Columna histórica Historical Column
Hidenori Okada
This article is a summary of an article previously written in Japanese for NFC Newsletter 30 (March- April 2000), a
bi-monthly publication of the National Film Center, The National Museum of Modern Art, Tokyo. Although Japan
has long been a motion picture film manufacturing country, little historical research has been done on the subject.
Sharing the objectives of FIAF’s various research projects on nitrate film, this article presents a brief historical
background of the early development of film manufacturing business in Japan.
Fuji Photo Film Co. Ltd. released their 35mm film “Fuji Positive Film (type 150)” on the market in April 1934. This
product was the first genuine domestic film because the entire manufacturing process was done in Japan. In the same
month, Konishiroku, at that time the leading manufacturer in the Japanese photo industry, put their first motion picture
film product “Sakura 16mm Cine Film (reversal)” on sale. This Konishiroku film, however, was made from imported
diacetate film base applied with domestic emulsion; at the time, the Japanese photo industry, which had just begun to
explore the technological possibilities of producing nitrate film, had not yet developed the capability of manufacturing
domestic diacetate base for 16mm film. In December 1938 Konishiroku succeeded in mass- producing nitrate film, and
in 1940 diacetate film; therefore, all their film products before these dates were only “half domestic,” so to speak. Although
they were to become long-standing rivals in the industry, especially during the development of colour film technology in
later years, Fuji and Konishiroku seem in retrospect to have tacitly chosen divergent development plans, the production
of 35mm film and non-35mm film respectively.
In fact, the main reason for this divided emphasis was the apportioned
distribution of celluloid. After the Sino-Japanese War
(1894-5), in which Taiwan became a Japanese possession, Japan became the leading producer of camphor (a primary raw
material of celluloid), made from refined wooden tips of camphor trees, mainly
found on the Pacific coast of Asia. As a result, the country saw a flood of new celluloid manufacturing factories. In 1919,
upon the foundation of a monopolised company, Dai Nippon Celluloid (Daicel), all the manufacturers were integrated,
and this merger was a big step forward for domestic film manufacturing. Daicel opened a special laboratory for motion
picture film in the suburbs of Tokyo in
22 Journal of Film Preservation / 62 / 2001
1928, and after having released their test products, it separated its photo-cinema department in January 1934, founding
Fuji Photo Film Co. Ltd. With a view to the possible invasion of the Japanese market by foreign companies such as Kodak
and Gevaert, of Daicel’s many research projects
the one that received a
large subsidy from the
Japanese government was
the
development
of
motion
picture
film
material. Given Japan’s
increasing isolation from
the
international
community following the
foundation of
Manchukuo (1932),
this
governmental
policy suggests that
the development of
the film industry
reflected
the
nationalistic agenda
termed kokusaku
(national policy).
Besides, a rise in prices of
imported film materials as
a consequence of the
exchange rate
fluctuation and increased tariffs was another factor in the government’s decision to advance the domestic manufacture of
film materials. While Konishiroku, Oriental Photo Industrial Co. Ltd., and Asahi Photo Industry, the three companies
which preceded Fuji in the industry, started with photographic paper and plates and then moved into the manufacture of
motion picture film materials, Fuji from the beginning focused on the production of motion picture film, in what might
be considered an unnatural or forced way. At that time, the camphor trade was monopolised by the government and
camphor sold solely to Daicel, which in turn supplied camphor only to its subsidiary, Fuji. Naturally, the other companies
strongly opposed such a policy.
Under such circumstances, an unexpected event, enormously influential to Fuji’s status as a film manufacturer, happened
in February 1934. Two months before Fuji released its first 35mm film product, Dai Nippon Motion Picture Association,
consisting of large production companies such as Shochiku, Nikkatsu, Shinko Kinema, made a bombshell announcement
that the members of the Association would not use any Fuji product, forcing the newly
El texto es un resumen de un artículo previamente publicado en japonés. En él se traza una breve historia de la
fabricación de película virgen en Japón, y el autor llama la atención sobre el hecho de que, pese a ser Japón uno de los
grandes países productores de película, no se han hecho muchas investigaciones sobre el tema.
El desarrollo de la fabricación de película en Japón tuvo una relación muy directa con las vicisitudes
político/industriales del país. En 1932, tras la fundación de Manchuko, el gobierno japonés monopolizó la producción
de alcanfor (plastificante básico para la producción de celuloide) y concedió su uso exclusivo a la Dai Nippon Celluloid
(Daicel), empresa matriz de la Fuji Photo Film Co. Ltd. Sobre esta base, Fuji conseguiría presentar, en abril de 1934,
el primer material totalmente japonés (Fuji Positive Film – tipo 150); en el mismo mes, el principal rival de Fuji, la
Konishiroku, también presentaría su primer material para cinematografía (Sakura 16mm Reversible Cine Film), pero
sobre soportes de diacetato importados.
La Dai Nippon Motion Picture Association, que reunía a todas las grandes compañías de producción japonesas, se
enfrentó al monopolio ejercido por Daicel/Fuji aduciendo que, por su menor calidad, las películas Fuji resultaban más
caras a la larga, pero esta denuncia se presentó sin pruebas documentales y, un año después, los productores
aceptaron la política que primaba los productos nacionales.
Tácitamente, la Fuji y la Konoshiroku se repartieron el mercado japonés, ocupándose Fuji de los materiales en 35mm
y Konoshiroku de los soportes sub-estándar.
El lanzamiento del primer material negativo totalmente japonés (Fuji Negative Film – tipo 100) convertiría a Fuji
en una empresa rentable. A partir de 1939, el desarrollo del bloqueo comercial llevaría a que, en 1940, Fuji se
convirtiera en el único proveedor de película para toda la producción profesional nipona.
Taki no Shiraito, Kenji Mizoguchi (1933), National Film Center/The National Museum of Modern Art, Tokyo
Il s’agit d’un texte condensé de l’article paru dans la NFC Newsletter 30 (mars-avril 2000), bi-mensuel du National
Film Center, The National Museum of Modern Art, Tokyo, qui s’inscrit dans les objectifs énoncés par la FIAF en
matière de recherche sur le développement de l’industrie cinématographique au Japon.
Fuji Photo Film Co. Ltd. lança la pellicule “Fuji Positive Film (type 150)” 35mm sur le marché Japonais en avril 1934.
Ce fut le premier produit national car sa production était entièrement assurée au Japon. Le même mois, Konishiroku,
sortait son “Sakura 16mm Cine Film (réversible)”. Cette pellicule était cependant produite avec du diacétate importé
auquel on applicait une émulsion de production locale.
L’industrie photographique Japonaise, qui explorait les possibilités de produire du film nitrate, n’était pas encore
prête pour produire une base en diacetate pour la pellicule 16mm. En décembre 1938 Konishiroku réussit à produire
industriellement du nitrate, et en 1940 du diacétate. Par conséquent, toutes les productions cinématographiques
antérieures étaient pour ainsi dire des produits “semi nationaux”. Fuji et Konoshiroku, concurrents surtout pendant
la période de développement de la technologie du film en couleurs, semblent avoir tacitement choisi des stratégies
divergeantes dans la production de pellicule 35mm et non-35mm respectivement.
established Fuji into a tight corner. The stated reason for the decision was that “domestic products which are cheaper but
less durable are, in the long run, more expensive than Eastman products.” However, since there is no record that the
Association performed any life tests on Fuji’s products, their claim was unsupported by evidence. What was really at issue
was, perhaps, the governmental policy surrounding celluloid supply.
Consider, for example, Oriental Photo Industrial Co., Ltd. In October 1933, a year before Fuji introduced its first film
product in the market, P.C.L. (the predecessor of Toho Company) for the first time used a positive made by Oriental,
then an emerging force in the photo industry, for the viewing print of their second feature, Junjo no Miyako. The
Oriental product, however, was made from imported film base.
Although Oriental built a film studio with a view to entering into the film manufacturing business, Fuji’s monopoly on
the supply of celluloid forced them to forego their ambition.
When faced with the boycott by the Motion Picture Association, Fuji was able to negotiate sales of film to Asahi News,
newsreels produced by Asahi Shimbun, a national newspaper company, and to independent star production companies
which were surviving on small-scale production means. In fact, Fuji Studios, a location studio built by Fuji, was mainly
used by such small star production companies. Curiously, from about 1935, the larger companies overturned their decision
unreservedly, and began using Fuji products, possibly because of public sentiment in favour of utilising domestic products.
However, I would argue
that there might have been another reason behind the situation: that is, the big production Companies’ announcement,
rather than a simple boycott of Fuji products, was in fact their protest against the power of the government/zaibatsu over
the fundamental structure of the industry. By the time Fuji released its first 35mm negative film, “Fuji Negative Film (type
100)”, in 1936, the company’s deficits were eliminated.
And soon after, in 1939, the company was compelled to increase their production enormously, due to the war time
“import prohibition” policy. Within a mere six years of the birth of the first hundred-percent Japanese-made film, Fuji
was obliged to meet the demands of the entire domestic film industry.
24 Journal of Film Preservation / 62 / 2001
The Novels and Rediscovered Films of Michel (Jules) Verne
Brian Taves
Seldom has an individual both written the stories published under the name of another person, and then proceeded to
film those stories - a feat accomplished by Michel Jean Pierre Verne (1861-1925), son of renowned French writer Jules
Verne (1828-1905). With the recent discovery and preservation of two of Michel Verne’s movies, this curious and almost
unknown chapter in filmic and literary history may now be told for the first time.
In 1857, with success as an author still six years in the future, Jules Verne married a widow with two young daughters.
The couple had one offspring of their own, Michel, who grew up
as the typical problem child of a famous
parent who was more engrossed in his writing than his paternal obligations. Michel’s personality embodied all the rebellious
spirit which his father had channeled into writing, and his childish tantrums evolved into adolescent insolence. When, in
addition, he began habitually running up huge debts, Jules Verne responded in the manner of the time: first with a mental
institution at age thirteen, then to sea at age sixteen, each for a year. At eighteen, Michel left school to elope with an actress,
living on a lavish allowance his father funneled through his publisher. In 1883, without mentioning that he was married,
Michel seduced and abducted a sixteen year old piano student, and they quickly had two children. Jules Verne was left to
support Michel’s abandoned first wife, who soon agreed to a divorce, while the family’s different responses to the
remarriage divided them for a time.
Michel began to settle down in his twenties with his second wife,
but was still unable to support himself and his children, and was
described by his own son as “never easy to get on with.” The mutual
love of writing finally brought father Jules and son Michel together,
and the two collaborated on literary endeavors. In 1888, after the
death of Jules Verne’s long-time editor, Pierre-Jules Hetzel (his son
Louis- Jules inherited the firm), Michel took his place as his father’s
literary advisor—introducing him to new ideas, and arguing on
behalf of socialism and Dreyfus. While still a teenager, Michel Verne
had begun fusing his identity with that of his father, reconstructing
his name as Michel Jules-Verne
25 Journal of Film Preservation / 62 / 2001
Michel Verne, copyright Société Jules Verne
Pour les premiers cinéastes, Jules Verne était un auteur contemporain de renommée internationale, et pendant une
décade après sa mort en 1905, un ou deux nouveaux livres ont encore été publiés chaque
année. Des études récentes ont prouvé que ces livres étaient réécrits, et dans certains cas, ils ont été écrits par le fils
de Verne, Michel. En 1913, après huit livres, Michel s’est tourné vers le cinéma qui semblait potentiellement plus
lucratif. Il a commencé une série connue sous le titre de “Les films Jules Verne” pour le distributeur français Éclair.
Entre 1914 et 1919, il a produit cinq films long-métrage dont quatre qu’il a écrit et mis en scène. Comme avec les
livres posthumes, Michel Verne s’est engagé dans un acte de piété filiale, subvertissant l’oeuvre de son père en l’a
réécrivant, cette fois en l’adaptant à un nouveau support. Si au début, Michel Verne croyait obtenir des budgets pour
réaliser les prises de vue en décor naturel à travers le monde, il fut confronté à l’expérience problématique du
réalisateur indépendant. Il a découvert que son père avait déjà obtenu une reconnaissance à l’écran dans de
nombreux pays et que ses droits d’auteur ne lui permettaient pas d’avoir le contrôle sur les films réalisés dans des
pays tels que l’Allemagne ou les Etats-Unis. Michel Verne a alors décidé de mettre à l’écran les histoires moins
populaires de son père. En prenant cette décision, il a renoncé à l’intérêt narratif des textes pour réaliser des films
qui n’ont finalement pas eu de succès. Depuis la découverte et la restauration par la Société Jules Verne, en 1997, du
second film de Michel La destinée de Jean Morenas réalisé à partir de la réécriture d’un texte de Jules Verne dont la
version originale fut publiée en 1988 seulement), il est possible d’établir une comparaison avec le premier film de
Michel, Les enfants du Capitaine Grant conservé au Nederlands Filmmuseum, et basé sur un des plus célèbres romans
de Jules Verne.
(sometimes abbreviated as M. Jules-Verne, convincing a few editors that the “M.” stood for Monsieur). Michel wrote a
number of articles about science, and science fiction stories, beginning with an 1888 series for Le Figaro—Supplément
littéraire entitled “Zigzags à travers la science.” Proud of his son’s work, the elder Verne did not mind when, the next
year, Michel’s short story “Au 24ème siècle: Journée d’un journaliste américain en 2889” was first published in the United
States under the paternal name.
Indeed, Jules Verne rewrote it for French publication the next year as “Journée d’un journaliste américain en 2890.” One
of Michel’s “Zigzags à travers la science” stories, “Un Express de l’avenir,” was subsequently also published in many
countries under the Jules Verne byline.
In the early 1890s, Michel made and marketed what he called the Universal Stove, which failed to sell despite efforts that
won his father’s admiration, and the result was the same when he converted to manufacturing bicycles in 1893 with a
modern, innovative design. With a job preparing the Universal Exhibition of Paris in 1900, Michel made trips to Russia,
Siberia, Silesia, and Rumania for mining interests that finally led to financial success. Afterwards, he ran a paper mill until
it burned down; tried banking, but resigned rather than endorse illegal transactions; and sold his share in nickel mines at
an advantage at his father’s urging that he become more than a businessman.
Shortly afterward, Jules Verne died, in March 1905, at age 77, leaving nine completed novels and a melange of short stories
ready for publication, together with a variety of other manuscripts, some of them incomplete. As Jules Verne had intended,
Michel helmed most of these works through to publication over the next nine years, becoming the full-time executor of
his father’s literary estate, in this way filling the career gap that had opened when he sold his business interests. Michel,
and subsequently his son Jean, claimed he made no changes to Jules Verne’s posthumously published works beyond
stylistic polishing, updating, or possible verbal instructions from father to son.
However, when the evidence from the family vaults became public over twenty years ago, it proved that Michel had
substantively altered, in both minor and major ways, all the works that appeared under his father’s name after his death,
even originating some of them himself. The publisher was aware of Michel’s activities, and regarded the alterations as
improvements to the originals. Contemporary literary scholars have had to rewrite the analysis of Verne’s oeuvre to
take into account that they were partly the
result of a father-son collaboration—which continued in a new medium when Michel began his filmmaking career, a fact
entirely overlooked until now.
In 1910, Michel began his final “Jules Verne” book, the long volume L’Étonnante aventure de la mission Barsac. His
springboard was his father’s Voyage d’études, a half-dozen sketchy chapters beginning a
novel of exploration in Africa, colonialism, and esperanto, together with a page of factual notes about the region copied
down and entitled Une ville saharienne. Michel abandoned writing the book less than a year later, after the death of his
son, Georges, at age 25, and required the collaboration of a journalist when he eventually resumed work on the first part
of the novel, before completing it on his own.
By spring 1913, Michel submitted L’Étonnante aventure de la mission Barsac to Louis-Jules Hetzel for serialization.
However, with an exaggerated conclusion celebrating “le grand mot, le mot sublime, le roi des mots, le mot: Fin,” and the
subtitle “Le Dernier voyage extraordinaire,” Michel had clearly decided to preclude the possibility of any further
posthumous works in his father’s name. Eight years after Jules Verne’s death, it might have been problematic for Michel
to continue publishing works under his father’s name (even though several Jules Verne manuscripts remained that would
not appear in print for another 75 years). Michel may have also recognized that he was better at embellishing the existing
texts of his father than he was at originating books on his own, as he had with L’Étonnante aventure de la mission
Barsac.
By then, Michel was ready to make the transition from ghost-writer to adapter; his first known mention of the possibility
of filmmaking is in a letter to his publisher dated April 16, 1908. Michel grasped that a new medium might be profitable
and well suited for presenting his father’s unique stories. Movies offered Michel the opportunity to end the anonymity
that he and Louis-Jules Hetzel had conspired to preserve: while still retaining the Jules Verne identity in the supposed
source of his films, Michel could finally step forward as a creator in his own right. As well, his entrepreneurial instincts,
evident in his earlier business career, were reawakened by the prospect of joining a new, alluring industry, open to
independent, individual efforts.
By this time, thirteen short screen adaptations of Jules Verne had been made around the world, and they had begun to
move beyond the trick film stage of Georges Méliès, Segundo de Chomón, and Louis Feuillade in such movies as Le
voyage dans la lune (1902), Voyage au centre de la terre (1909), and Vers le Pôle Sud / Aventures du Capitaine
Hatteras (1909), respectively. Not only had such filmmakers vivified Verne’s science fiction, but his adventure stories had
been adapted for the cinema as well; in 1908, Essanay produced Michael Strogoff, with a remake from Edison in 1910.
These two films were derived not so much from the 1876 novel as from various well-known theatrical versions. Jules
Verne had begun this trend himself with several successful stage adaptations of his prose fiction, and many imitators
followed suit. Verne probably was aware, before his death, that his stories had become an active source of inspiration for
motion pictures—although it is not known whether he actually ever attended a screening.
He had long understood the potential of
27 Journal of Film Preservation / 62 / 2001
Para los primeros directores de cine, Julio Verne fue un autor de reputación internacional y tras su muerte en 1905,
se siguieron publicando una o dos obras de Verne por año. Estudios recientes probaron que muchos de estos libros
fueron re-escritos y hasta en algunos casos, ideados por su hijo Michel.
Luego del octavo de estos libros, en 1913, Michel Verne se volcó hacia el cine, actividad potencialmente más
lucrativa. Comenzó con la serie “Les films de Jules Verne” para el distribuidor Eclair de 1914- 1919, produciendo
cinco largometrajes de los que él mismo escribió y dirigió cuatro. Con la obra
póstuma, Michel entró en una etapa de piedad filial, subvirtiendo la obra de su padre al re-escribirla al mismo tiempo
que adaptándola a un nuevo medio. Si en un principio Michel pensó que iba a disponer de suficientes recursos como
para rodar sus películas en lugares remotos del mundo, terminó por conocer la problemática suerte del director
independiente. Descubrió, por un lado, que su padre ya se había convertido en una celebridad cinematográfica en
numerosos países y por otro, que el control de sus derechos se le escapaba en países como Estados Unidos y
Alemania. Como consecuencia, Michel optó por adaptar algunas de las obras menos conocidas de su padre. Esto fue
una decisión desastrosa ya que eliminó la potencialidad de los elementos narrativos originales de la obra de su padre,
condenando así sus propias películas al fracaso económico. El descubrimiento en 1997 de la segunda película de
Michel, La Destinée de Jean Morenas (adaptada precisamente de una novela del padre y re-escrita por el hijo) hace
posible la comparación con la primer película de Michel Los Hijos del Capitán Grant, basada en la célebre novela de
Julio Verne y preservada por el Nederlands Filmmuseum.
sound and visual reproduction of events: in his 1888 novel Le Château des Carpathes, Verne wrote of an obsessed
baron who owns an invention that allows him to listen to recordings of his unrequited love, a deceased opera singer, and
to simultaneously project her image to achieve a ghostly, chimerical effect. Michel had also expressed a similar interest
in the visual medium; his July 21, 1888 article for Le Figaro described a photographic process that produced an imaginary
woman.
Michel decided there was an opportunity, with films gradually becoming longer, to make spectacular, big budget, highquality, full- length versions of his father’s novels, without the inherent limitations encumbering short films or stage
presentations. Michel believed he was the one to make these live-action features, planning from the outset to script,
produce, and direct himself. Forming the company “Les Films Jules Verne” in Paris, his plans were announced and
advertised in many countries.
Michel sold to Société Éclair exclusive rights throughout the world to films of Jules Verne’s stories, in exchange for a
pledge of funding and distribution, and a large fee. This seemed an ideal connection; Éclair was an expanding, prosperous
firm, with offices opening around the globe—appropriate, given
Verne’s appeal. The properties initially mentioned in press accounts as prospective productions included Voyage au centre
de la terre (1864), Verne’s lunar novels (De la terre à la lune [1865] and Autour de la lune [1870]), and his arctic stories
(“Un Hivernage dans les glaces” [1855] and Voyages et aventures du Capitaine Hatteras [1867]). Although the
practicality of filming some of these stories might seem questionable, the versions by Méliès, Chomón, and Feuillade, set
in all of these regions, had already proven the possibility of producing them. There was also word that some drafts left by
Jules Verne, and not yet published, might be used in bringing some unknown and original stories to the public through
the medium of film—indicating Michel’s interest in using some of the four novels and three short stories he had left
unpublished or, just as likely, continuing to fabricate his own stories under his father’s name. The first three pictures
actually announced as in preparation were Vingt mille lieues sous les mers, Les Indes noires, and the premier movie of
the “Les Films Jules Verne” series: Les enfants du Capitaine Grant.
Michel was producer of Les enfants du Capitaine Grant, from a best- selling 1867 novel that Jules Verne had turned into
a popular play in 1878 and which had already been filmed in 1901 by Ferdinand Zecca. (The novel would later serve as
the basis for a 1936 Soviet feature, Deti Kapitano Granta; 1969 and 1977 movie and television versions, respectively, of
a Spanish zarzuela, Los sobrinos del Capitán Grant; a 1981 French animated television version on FR3; and most recently
and definitively a seven-hour Russian-Bulgarian television mini-series in 1985, Auf der suche Nach Kapitan Grant although the best remembered adaptation is the 1962 Disney version, In Search of the Castaways.) Production of Éclair’s
version began in 1913, but
28 Journal of Film Preservation / 62 / 2001
abruptly ended on June 22 with the sudden death of director Victorin-Henri Jasset. Production resumed later in the year,
filming around Cherbourg, with Henry Rousell directing and a cast composed of well- known artists in Paris theaters (M.
Dussoudeix, Michel Gilbert, Denise Maural, M. Delamarcie, M. Daragnan, M. Jordan, M. Delmonde), with at least one
player, Josette Andriot, returning from the cast Jasset had assembled. Éclair’s exotic “glass house” studio in Epinay-surSeine, the garden estate of the celebrated naturalist Etienne de Lacépède, allowed shooting the New Zealand scenes
involving 200 Maori warriors painted green for the cameras. Released in 1914, Les enfants du Capitaine Grant proved
popular, and it is preserved with its original tints at the Nederlands Filmmuseum (in their Desmet collection) in the Dutch
release version. The plot closely follows the main incidents of the novel but is tightly telescoped to fit the six part, five
reel, 65 minute running time. Les enfants du Capitaine Grant was a big budget adventure film, accenting the action and
the incidents of peril in the round-the-world journey. The chases are startling, such as Robert’s pursuit of a train about to
be derailed by Ayrton’s gang. Some of the effects, such as the miniatures, are effective, but the brief shots of Robert in
the talons of the giant condor reveal a bird distinctly undersized to carry such weight (although an actual stuffed condor
was used). Les enfants du Capitaine Grant seems to have been created with the expectation of audience familiarity with
the novel, relating the plot in a rather sketchy fashion; on May 15, 1914, Variety noted that there are “some scenes that
one cannot readily understand by looking at the film in the running .... ” With the long, explanatory intertitles, the film has
the flavor of a pageant of illustrations of the book rather than a narrative adapted to the screen. The acting is variable;
Paganel’s eccentricity and fallibility become the chief source of amusement, while the performers playing Robert and Mary
are clearly much too old for their teenage roles. The scenery is effectively varied, if never quite convincingly unique to the
region (especially the dull ascent over the Andes), but the film does create a sense of spectacle.
Michel may have been dissatisfied with a number of elements. Most notably, the characterizations are nearly lost (even
Disney’s 1962 version, essentially a children’s film, was more credible). Only some of the humor of Paganel, and the
bravery of Robert, are perceptible, while the rest of the characters are little more than names; for instance, there is no
preparation for the concluding engagement of Mary and Captain Mangles. Without the intertitles, Ayrton’s villainy and
double identity as Ben Joyce would be ambiguous.
Because of the delays in production, several other Jules Verne features in different countries appeared almost
simultaneously with Les enfants du Capitaine Grant, including the Popular Plays and Players version of Michael
Strogoff (preserved at the Library of Congress). The worldwide release of Die Reis um die Welt / Die Jagd Nach der
de Hundert Pfundnote (Germany, 1913, with a remake in 1919) probably precluded production of the potentially
expensive
29 Journal of Film Preservation / 62 / 2001
version Le Tour du monde en quatre-vingts jours (1874) announced by Éclair in 1914. Éclair’s anticipated Vingt mille
lieues sous les mers could not be realized because of the cost and the technical problems of creating a convincing screen
version, finally overcome in 1916 when Universal produced Twenty Thousands Leagues Under the Sea with the first
significant scenes in a fictional film actually shot beneath the waves. Michel discovered he could not enforce his exclusive
screen rights to his father’s novels in other countries, any more than his father had been able to stop decades of pirated
editions of his books. Briefly there was even a question of whether Michel’s rights included overseas distribution of his
film adaptations of Jules Verne books. Just as Les enfants du Capitaine Grant was released in England in February, 1914,
the British publishing firm of Sampson Low told Éclair that their original translation rights included film rights, but when
Louis-Jules Hetzel reminded Éclair that Sampson Low had never represented theatrical or cinematic rights in Verne’s
work, the error was quickly acknowledged.
With production in France declining since the outbreak of war, Michel decided to revert to his original plan to take over
the writing and directing chores himself, in addition to production. “Les Films Jules Verne” was a company where he
hired the cameramen and would even supervise the costumes, in the words of his son Jean. After the failure to get such
elaborate productions as Le tour du monde en quatre- vingt jours and Vingt milles lieues sous les mers started, Michel
may have felt compelled to try a more modest film, one from a story that he unquestionably controlled. La Destinée de
Jean Morenas (1916) appeared two years after Les enfants du Capitaine Grant, and was a sharp contrast. Precisely how
Michel’s second film survived the years is unknown, but it turned up in private hands in the mid-1990s, and the Société
Jules Verne financed purchase and restoration, issuing the film on video in 1998. There is internal evidence that it may
have been originally partly hand-colored, especially in a scene by the ocean; the restoration by Lobster Films is fully tinted
following the original print.
In the opening, the two Morénas brothers are at home with their widowed mother: Jean studies, while Pierre idly dreams
of easy wealth, preferring to spend his time at the tavern. A flashback to childhood reveals a triangle: both brothers have
long been in love with Marguerite, goddaughter of their uncle Tisserand. Pierre’s delusions of discovering a fortune cause
him to abruptly leave home, but when his hopes remain unfulfilled, he returns to rob and kill his uncle. This theme of the
evil influence of gold, and its social impact, resounds throughout Verne’s oeuvre, especially in three posthumously
published novels coauthored by Michel: Le Volcan d’or (1906), La Chasse au météore (1908), and Les Naufragés du
Jonathan.
As he was dying, Tisserand wrote a note identifying his nephew as the murderer—and in Pierre’s absence it is interpreted
as implicating Jean. During the trial and ultimate conviction and imprisonment of
30 Journal of Film Preservation / 62 / 2001
Jean, his mother falls ill and dies. Pierre later returns, now wealthy thanks to his uncle’s fortune (although no one seems
to notice the coincidence) and discovers to his dismay the consequences of his deed. After marrying Marguerite and
beginning a family with her, the guilt-stricken Pierre finally conceives a successful plan for Jean’s escape.
However, unknown to Pierre, Jean has decided that, before leaving the country, he must see home one more time. Entering
through the hidden door he was shown as a child, Jean sees Pierre commit robbery and attempt another murder. Jean
simultaneously realizes that it was his brother, in disguise, who freed him from the galleys - and that his brother killed his
uncle. Jean also observes
Marguerite and one of her and Pierre’s children, and for their sake is willing to voluntarily assume responsibility for Pierre’s
crimes. However, this time Marguerite also saw Pierre - and her realization of his guilt causes Pierre to place a gun to his
head and fire. In the closing scene, Jean, now free, at last proposes to Marguerite, offering to be a father to his brother’s
children.
For a neophyte filmmaker, Michel demonstrates directorial
assurance and a surprising visual ability in La Destinée de Jean
Morenas. A few of his scenes are clearly modeled on the
illustrations that had accompanied the publication of the original
short story, but he prefers a more naturalistic approach, not
designing his visuals according to the engravings, a technique
pioneered by Méliès and Chomón. Michel grasps the use of space
in filmic, rather than stage
terms, and the shots edit together in terms of angles,
framing, and alternating from long shots to medium shots
to close ups. He frequently cuts on movement and gesture,
and uses a mirror in shots of the second robbery to show
the action from two perspectives.
Michel understands the use of parallel action (if not quite parallel editing), diverging to tell two stories in different locales
simultaneously: Pierre has left home and goes away, leaving Jean and Marguerite to fall in love; during the trial, sentencing,
and imprisonment of Jean, his mother dies and is buried. The abundant exteriors are well-chosen and are used in a very
natural manner, as are the sets; the repeated use of one interior does not become stagy or dull. The acting is skillful and a
distinct improvement over Les enfants du Capitaine Grant, despite the previous film’s larger cast of name players; none
of the performers in the movies Michel directed enjoyed sufficient reputation to demand screen credit.
On the other hand, at least at this early stage in his career as a director, Michel lacked the necessary range of visual devices
for successful feature filmmaking. Initially, his direct cutting to scenes of a character’s thoughts is visualized in a clever
manner, but these
31 Journal of Film Preservation / 62 / 2001
Herald for the American release of Les enfants du Capitaine Grant
mental images soon become tiresome with overuse. Only rarely does Michel resort to the more traditional use of a split
screen to convey Pierre’s agonizing over Jean’s imprisonment, and an inset to capture Jean’s fear of returning to the galleys.
There is also an excessive reliance on intertitles (which are, perhaps surprisingly, not drawn from the text of the story)
when visuals are already successfully advancing the narrative; Michel’s fondness for the written word despite working in
the new visual medium of film is obvious.
Les enfants du Capitaine Grant had certainly been more “professionally” directed; for example, there was
throughout that movie more action within the frame. On the other hand, the direction is simultaneously more
theatrical, with long takes instead of the briefer scenes favored by Michel. There is a greater range of sets and
exteriors in the more lavishly-produced Les enfants du Capitaine Grant, most of which appear only once in the
travels, without some of the repetitions of La Destinée de Jean Morenas. Yet, La Destinée de Jean Morenas manages
to use its settings more atmospherically; those in Les enfants du Capitaine Grant tumble by so quickly and change
so frequently that they have less impact. The intertitles in Les enfants du Capitaine Grant are used almost exclusively
for descriptive, narrative purposes, whereas in La Destinée de Jean Morenas they convey the tone, accentuate
certain points, and fill in details of characterization.
La Destinée de Jean Morenas is certainly the most personal of Michel’s screen works, and he seems to have been
particularly devoted to this story and to the task of “rewriting” it. La Destinée de Jean Morenas is not once but twice
removed from the work of Jules Verne: a film adaptation of Michel’s own complete prose reworking of his father’s story.
One of Jules Verne’s first completed literary efforts, entitled
“Pierre-Jean,” was written in 1852, although it remained unpublished. In the story, Bernardon, a visitor to the galleys, is
horrified at the conditions and fate of the prisoners, and takes pity on one upstanding young man (Pierre-Jean), doomed
to premature death, and facilitates his escape. The title name is derived from reversing the name “Jean-Pierre” given to
the guillotine in an old song, but Jean and Pierre also became the two middle names Jules Verne gave to Michel—perhaps
indicating a special meaning this early work would have for both father and son. Although Jules Verne never intended to
publish “Pierre-Jean,”
Michel decided to include it in the posthumous anthology of his father’s uncollected short stories, Hier et demain (1910).
In revising “Pierre-Jean,” Michel was told by Hetzel to downplay the social comment, and through enlarging the story by
about a third, Michel shifted the emphasis completely, giving it a melodramatic flavor at the expense of its protest of
prison conditions. In other posthumous stories, Michel had already grafted subplots and new characters of his own onto
his father’s original works. In Michel’s hands, “Pierre-Jean” became “La Destinée de Jean Morénas,” gaining greater
complexity as Michel splits the single character of “Pierre32 Journal of Film Preservation / 62 / 2001
Jean” into two entirely separate individuals, one good brother (Jean) and the other evil (Pierre), doppelgänger-fashion,
with the virtuous brother destined to suffer imprisonment for the sins of his sibling. (“Morénas” was a name Michel had
originated when revising “Pierre- Jean,” and he also used it as the alias of the heroine in L’Étonnante aventure de la
mission Barsac, who discovers her stepbrother is, like Pierre Morénas, of fundamentally evil nature.) In the film and story
of Jean Morénas, Michel seems to have strived to produce a character study, perhaps in response to the frequent criticism
that his father’s works emphasized action, but without recognizing the rather clichéd pattern of brothers as polar opposites.
Since Michel was already planning films by 1908, he may well have had a screen version in mind even as he tackled revision
of the manuscript of “Pierre-Jean.” Six years after the publication of “La Destinée de Jean Morénas,” in creating the movie,
Michel offered a version substantially different from his own prose, as if he were perhaps dissatisfied with what he had
written. Even less of the father’s original remains: the only incidents in the movie having their origin in “Pierre-Jean” are
the unjust imprisonment and the escape, now a subsidiary element (with Bernardon actually Pierre in disguise).
In effectively retelling “Pierre-Jean” a second time, Michel fills in more detail, elaborating and extending the plot,
organizing it in a new manner. Some of the incidents in the movie from Michel’s version of the story are taken from brief
sentences and enlarged into full-scale scenes, such as the early discovery of a passage into the inn. In the film, Tisserand’s
goddaughter Marguerite is an ambivalent character, strangely impassive as she is alternately the bride of one brother, then
of the other, accepting either as husband. She dreamed of Pierre after his departure when courted by Jean, recalls Jean
when Pierre returns, and after her husband’s suicide she thinks of him when Jean offers to marry her. In the short story,
her affections have more consistency: initially uninterested in Jean when she comes of marriageable age, after he is
imprisoned she finally responds to the “un peu brutal” character of Pierre. One of the few passages deleted from the film
that appeared in both prose versions is the only recognizably Vernian element, Jean’s use of a diving helmet that resembles
a buoy to conceal his escape from the prison harbor.
The major change between Michel’s story and his film is in reversing the ending—in the story, Jean sacrificially accepts a
return to prison to secure the happiness of his brother and Marguerite; whereas in the movie Pierre’s murderous
inclinations are exposed. Only by proving Jean’s innocence is La Destinée de Jean Morenas more like “Pierre- Jean,”
which had concluded with the prisoner’s escape. However, the downbeat conclusion had also been the only aspect of “La
Destinée de Jean Morénas” that gave substance to Michel’s version of the story. Without the tragedy of Jean’s doom, the
trite aspects of the story become all the more obvious, and indeed Michel almost seems to
33 Journal of Film Preservation / 62 / 2001
concentrate on the most banal elements in the film, with the slow tempo making it seem stretched from a naturally shorter
length.
The movie and the short story had also followed a different narrative pattern. “La Destinée de Jean Morénas” had begun
in the present, opening in the prison, and gradually filled in past events before bringing together the results of both past
and present in the conclusion. These temporal shifts had served to conceal the lack of any true surprises in the plot
revelations. In the film, Michel proceeds chronologically, interrupting with insets to show the thinking of the characters
by sometimes utilizing brief flashbacks. This alteration in the narrative organization eliminates any veneer of suspense or
uncertainty; for instance, in the story, Pierre simply disappears on his 25th birthday, and nothing more is heard from him,
while in the film, Pierre’s activities after leaving home are shown.
La Destinée de Jean Morenas fits within the early examples of the realist tradition, outlined by Richard Abel in French
Cinema, The First Wave, 1915-1929: a handful of characters in simple, stereotypical settings, a sensitivity to the outdoors,
natural light, location shooting, and stories related to particular regions. Michel may have believed that a melodrama was
likely to be popular, but La Destinée de Jean Morenas lacks any of the elements of adventure or science fiction associated
by the public with the Verne name. La Destinée de Jean Morenas was hardly the only Verne story possible on a low
budget: filming the 1888 shipwreck novel, Deux ans de vacances, for instance, requires merely a stretch of sandy beach,
some small ships, and just over a dozen actors, most of them juveniles (as demonstrated in the 1969 Australian Verne
movie Strange Holiday). Nor was “La Destinée de Jean Morénas” the only one of the posthumous stories to which
Michel unquestionably owned the rights and that offered filmic potential.
The fact that this was the first film Michel made on his own, and that it was so unlikely a property, indicates it was probably
not so much a commercial decision as a personal one. The motivation that may have impelled Michel to make the film,
just as he had earlier rewritten “Pierre-Jean,” is indicated by Michel’s addition of a nephew’s murder of his uncle to both
the story and film—a plot fictionalizing a very real family trauma. Jules Verne’s only brother, Paul, had three sons and a
daughter; the eldest, Gaston (1860-1940), one year Michel’s senior, seemed to have a bright future, holding a position in
the Ministry of Foreign Affairs. Gaston and his uncle Jules were fond of one another, but Gaston had begun to evince a
persecution complex, for which he was under treatment and the watchful eye of his family, when he abruptly went to
Jules’s home and shot him in the leg on March 9, 1886. Michel rushed to be at his father’s side and took charge during his
recovery as the event was covered by the press around the world. Gaston was committed to an asylum for the rest of his
life, but he often was allowed to visit relations and called on his
34 Journal of Film Preservation / 62 / 2001
uncle many times without ever speaking of the shooting or the permanent limp that was its residue. Just as “La Destinée
de Jean Morénas,” story and film, leaves the precise motive for choosing to murder the uncle sketchy, so too was Gaston’s
purpose. He was reported to have thought he was somehow drawing attention to his uncle, while the author’s grandson,
Jean Verne, speculated Gaston may have felt smothered by his uncle’s fame. Michel’s additions to “La Destinée de Jean
Morénas” perhaps reflected his resentment of the favoritism shown to Gaston when both were young, as Gaston seemed
to be the more promising of the two boys. Michel may have felt like the innocent Jean, who had been mistakenly
incarcerated, while the true villain, Pierre, was at liberty until his true nature was exposed—as Gaston had been free to
shoot his uncle. Providing an explanation of the family tragedy, by analogy, in prose and film, the story and movie of Jean
Morénas revealed Michel’s feelings about it for all who realized the link.
Despite the seemingly narrow appeal of La Destinée de Jean Morenas, there was not the delay in production for the firm
“Les Films Jules Verne” that had followed Les enfants du Capitaine Grant in 1914. Instead, Michel wrote, directed, and
produced three more films (all of which appear to be lost), thus turning out one film every year for four consecutive years,
from 1916-1919, approaching his initial goal in 1914 of making two motion pictures annually. Unlike La Destinée de
Jean, but similar to Les enfants du Capitaine Grant, all of Michel’s subsequent films were from the genres more closely
associated with his father.
The next movie was one of the titles first promised in the original announcements in 1913 Les Indes noires was finally
released in 1917 as a collaboration with Édition Aubert. Aubert was expanding into production, offering partial financing
to independents as well as a guaranteed distribution outlet, releasing in conjunction with Éclair. Les Indes noires, a four
reeler, was based on an 1877 Jules Verne work, relating how the reopening of an abandoned coal mine leads to the
construction of a subterranean city near an enormous underground lake. This subject may have had a special appeal to
Michel, given his own experience starting up mines in eastern Europe that had first brought him prosperity. Yet the
production again raises questions about Michel’s filmmaking logic. Although Les Indes noires was one of Verne’s betterselling novels, with mild science fiction elements, it was not nearly as famous as another story with a similar setting, Voyage
au centre de la terre, that Michel had planned to film and certainly would have been easier to produce and likely more
popular.
Mining was again part of the setting of his next film, and in it Michel returned to the theme of greed that had been so
central to La Destinée de Jean Morenas and several of the posthumous novels. The five-reel L’étoile du Sud (1918) is
an African adventure, relating the discovery and theft of an enormous diamond (the “star”) in the
35 Journal of Film Preservation / 62 / 2001
South African diamond works. The 1884 book (which had sold poorly) mocks the expectation of Jules
Verne’s readers for science fiction by having the story pivot on the belief of a likable young inventor, Cyprien Méré, that
he has manufactured the diamond. Instead, it turns out to be the product of ordinary natural forces, although no less
valuable, and Méré ultimately wins his fortune. Michel had demonstrated his own interest in an African setting with his
novel L’Étonnante aventure de la mission Barsac and had first written of the possibility of diamond manufacturing in
his June 2, 1888 article for Le Figaro in his series, “Zigzags à travers la science.”
In the production of L’étoile du Sud, the area around Toulon, the town where Michel lived, doubled convincingly for
Africa, using local blacks and aged lions to embellish the atmosphere. One scene included thirty blacks in a dug-out canoe
on the wild river Verdon above Grasse—reminiscent of Michel’s original publicity announcing that he would film on
distant locations, directing everywhere in the world, often in very dangerous situations. (Actually, all of Michel’s movies
were shot in southeast France.) Despite the lack of true authenticity, audience reaction was extremely positive, at least
when L’étoile du Sud was shown in Geneva in 1920, with the public applauding as Méré overcame his vicissitudes
(according to the April 17, 1920, issue of Revue Suisse du Cinéma).
Michel’s last film is the only one of the four he made entirely on his own which is not a surprising choice, and was probably
the most costly to produce of all his films. The six-reel Les cinq cents millions de la Begum (1919) is science fiction,
from a novel originally written in the wake of the Franco-Prussian War, a conflict that was probably a formative event in
young Michel’s life. The novel reflected a simple duality between good and evil: a bequest from an Indian Begum financing
the construction of rival cities. One city is led by a French humanitarian, the other under the dictatorship of a German
militarist, and the 1879
novel may have seemed acutely prophetic and appropriate in the era of another conflict between France and Germany. In
a letter to Louis-Jules Hetzel on July 16, 1915, Michel had reserved all film or theatrical rights to the novel, and the movie
was shot in 1918. However, it was not released until October 1919, by which time wartime emotions may have subsided
sufficiently to diminish its propaganda value and topicality (in the way that Universal’s Twenty Thousands Leagues Under
the Sea had been released at the height of wartime concern over submarine attacks).
Like the earlier Les Indes noires, with its construction of a city inside of a coal mine, Les cinq cents millions de la
Begum again demonstrated the concern with an urban community and the tensions surrounding its construction.
The motif was also apparent in Michel’s prose, from the rewriting of his father’s novel En Magellanie into Les
Naufragés du Jonathan, to his own original stories “Au XXIXe siècle: Journée d’un journaliste américain en 2889”
and L’Étonnante aventure de la mission Barsac. The latter novel had displayed an enormous debt to Les Cinq
36 Journal of Film Preservation / 62 / 2001
cents millions de la Begum, revisiting the idea of a super-scientific city used for evil purpose, but without the
compensatory, benevolent vision of an alternative city offered in Les Cinq cents millions de la Bégum.
Michel’s last two films share another unusual factor in common: both were from novels that were the only other examples
of prose collaborations by his father with another writer, besides the stories Michel himself had rewritten. Pascal Grousset
(1844-1909), known by his pseudonyms of André Laurie in fiction and Philippe Daryl in nonfiction, conceived the plot
for Les Cinq cents millions de la Bégum (1879), and the success of the covert pairing led to another similar match five
years later on L’Étoile du sud, although Laurie and Jules Verne received joint credit for a third collaboration, L’Épave du
Cynthia (1885), that was largely from Grousset’s pen. Their mutual publisher, Pierre-Jules Hetzel, had brought Grousset
and Verne together in 1877, when Grousset was a young, untried author with many literary notions similar to Verne.
Although the arrangement might seem unfair, it was necessary because Grousset was in exile from his homeland for having
been involved in a political duel and as a leader of the Paris Commune who had escaped from New Caledonia. Grousset
returned to France after the amnesty of 1880 and wrote a series of pioneering science fiction novels of his own, and for
many years his works were regularly serialized alongside those of Verne in Hetzel’s Magasin d’éducation et de
récréation—and Grousset also gave Jules Verne’s funeral oration.
Why did Michel select two of the Verne-Grousset novels, of the over sixty novels and many additional short stories by
his father that he could have chosen? Michel and Grousset were complimentary influences on Jules Verne, both of whom
could be regarded as his “literary sons.” Michel’s interest in writing began in 1886, the year after Grousset’s last
collaboration with his father, so Michel may be seen as Grousset’s successor—providing Jules Verne with the infusion of
fresh ideas that he needed. Both were significantly more leftist and radical in their politics than was Verne, and Grousset
and Michel preferred science fiction that was more futuristic and less limited by the possibilities of contemporary
technology. Grousset may have served as a model for Michel’s aspirations, with Michel hoping to emerge from his father’s
shadow as a creator in his own right, just as Grousset did after his collaborations with Jules Verne.
Problems had arisen on Éclair’s side less than two years after signing their contract with Michel; with the company’s
personnel mobilized upon the outbreak of war, operations did not resume until January 1915. By 1917, Éclair was regaining
its foothold, releasing a multiple-reel film weekly, but by the Armistice, it was struggling once more. Five years after Michel
signed a contract with Éclair, they ended their
association at a time when business was slack, and Michel sought to join forces with another, more prosperous firm. As
late as 1920, Éclair owed Michel 25,000 francs, a sizable sum, and in
37 Journal of Film Preservation / 62 / 2001
1922 he received a payment of some 4000 francs. Although films produced by small firms and independents accounted
for the majority of French productions, Michel himself always lacked sufficient funds. Despite once having as many as
300 extras in Marseilles at a time for a film, his younger son Jean wrote that Michel “never had enough backing to do
things properly, even in those heroic days of the cinema.” None of “Les Films Jules Verne” produced, directed, and
written under Michel’s aegis saw the worldwide distribution that Les enfants du Capitaine Grant had achieved in Éclair’s
heyday.
Other factors influenced Michel’s selection of his father’s stories to present on the screen. Contrary to the thoughts of
Louis-Jules Hetzel, Michel expressed the belief (in a letter of June 24, 1914) that films would not only be profitable
themselves but serve the very practical purpose of promoting sales of his father’s books. Michel may have been especially
interested in promoting Jules Verne novels that were becoming forgotten (although widely translated in their own time),
as opposed to those whose sales continued to be strong. Moreover, Pierre-Jules Hetzel’s 1875 contract with Jules Verne
had ensured that he received little new payment for editions of his stories published prior to 1876, which encompassed
most of the best- known books. Michel’s pecuniary interest was in publicizing those novels from which he would receive
the greatest remuneration—precisely the later, lesser-known novels from which he chose four of the five titles he filmed.
However, from the standpoint of the potential audiences for his films, such a selection was to Michel’s detriment. For a
filmmaker whose prime asset was the public recognition of the Verne name and its use as the main selling point, Michel
generally minimized this advantage by deciding to film relatively obscure stories, such as the collaborations with Grousset
(L’étoile du Sud and Les cinq millions de la Begum), and especially the one from his own pen (La Destinée de Jean
Morenas). Of the more than three hundred adaptations of Verne produced for movies and television around the world,
Les Indes noires, L’Étoile du sud, and Les Cinq cents millions de la Bégum have each only been filmed on one other
occasion, in 1964, 1969, and 1978, respectively; “La Destinée de Jean Morénas” has never returned to the screen.
As a result of a fatal accident during the shooting of Les cinq millions de la Begum, Michel Verne had to ask his son,
Jean, a lawyer and future judge, to defend him in a lawsuit. In 1920, an arm of Éclair produced Mathias Sandorf (1921),
a nine-part serial also released in feature form, made as an expensive superproduction to compete in overseas markets—
a contrast with Michel’s low-budget efforts.
Subsequently, the company “Les Films Jules Verne” was wound up, and Michel sold his cinematographic rights in
block. However, authority to film Michel Strogoff was sold separately, to Sapene, the Director of Le Matin, the
journal that had first published L’Étonnante aventure de la mission Barsac, and a three hour epic version of Michel
38 Journal of Film Preservation / 62 / 2001
Strogoff was in production in the very year of Michel’s death, 1925. For a time Metro-Goldwyn-Mayer bought Verne
rights in the 1920s for their The Mysterious Island (1929), and eventually as a result of the various transfers it became
too formidably expensive for the family to try to assert any control over Verne films. Perhaps the last on-screen reference
to these rights was in the 1937 Hollywood version of Joseph Ermolieff’s French and German pictures of Michel Strogoff,
The Soldier and the Lady, noting “motion picture rights assigned by Society Jules Verne.”
Since three of the five films Michel made were from collaborations, Michel’s filmmaking seems to have manifested the
same urge to rewrite his father that had already been carried to fruition in the posthumously published works. Had Michel’s
goal been one of honoring Jules Verne and his literary legacy, he would have filmed stories that best reflected that vision.
Instead, during the twenty years he outlived his father, Michel rewrote his work, first in prose, then on screen, and there
was little difference between the manner in which he undertook both tasks. Michel originated ideas and imposed his own
changes, and his work in prose and on screen represents a basic continuum. Michel is an example of filial intervention,
rather than the mask of filial devotion he presented to the world and that the family maintained for seventy years. Although
the evidence is inadequate to reach any final conclusions with only two surviving films, there is no reason to think that
Michel Verne has any true distinction purely as a filmmaker. Rather, Michel’s importance is to the study of adaptations,
providing a unique example of a writer, adapter, and filmmaker. In Michel’s case, the question is not the fidelity of the
film to the source, but to what degree the source was related to the actual writings of Jules Verne. Through his films,
Michel extended his own literary work, and that of Pascal Grousset, that combine in what is now recognized as the
franchise known as Jules Verne.
The author wishes to acknowledge the assistance of Hervé Dumont; Jean- Michel Margot; Philippe Burgaud
and the Société Jules Verne; and Stephen Michaluk, Jr., my coauthor on The Jules Verne Encyclopedia
(Scarecrow, 1996).
39 Journal of Film Preservation / 62 / 2001
‘What You Don’t See and Don’t Hear’: Subject Indexing Moving Images
Olwen Terris
An indexer frequently has to create indexing entries for what he or she does not see on screen. A news item from 1915
catalogued recently by the National Film and Television Archive (NFTVA) showed a famous dog (inevitably a collie called
Lassie) which had rescued survivors from a ship lost at sea in the First World War - the ship was never in view, only the
dog. Looking through Whitakers Almanack confirmed that the ship was a battleship lost in the First World War. The
name of the ship was indexed in the belief that anyone researching the fate of this battleship (and there may well be no
film of the ship) may also be interested in seeing film of the dog which reputedly saved some members of its crew as the
only link with the event. Another example was a film which included shots of King George V and Queen Mary aboard
the royal sailing yacht ‘Britannia’. Again reading Whitakers Almanack revealed that their majesties had been setting off for
Cowes Regatta at the time the film was released. The viewer does not see any shots of Cowes or the Regatta but both
terms had to be indexed - on the reasonable supposition that anyone studying the history of the sailing event may be
interested in the shot of the King and Queen on their royal yacht setting sail.
Innovations in the automatic storage and retrieval of archive material from mass digitised storage systems have led to the
development of intelligent indexing and retrieval packages which, their programmer’s claim, recognise shapes and textures,
tilts and pans, voices and profiles. Analysis of iconography, it is alleged, can assist in the identification of genre.
Acknowledging that describing in words what a cataloguer sees and hears is extremely time-consuming, automatic image
recognition systems have been developed which, it is believed, will facilitate and speed up this process.
These examples in the opening paragraph, typical of hundreds, indicate that no amount of sophisticated technology can
identify these events from shape or colour or any other automatic recognition device and, to be fair, few claim they can
with any great speed or regular accuracy. Many authors of articles
discussing the indexing of images (the majority interestingly coming from a computing science or information
theory background and not obviously engaged in day to day film cataloguing or film research), distinguish between
‘content indexing’ (shape, texture, colour etc) and ‘concept indexing’
Documentation Documentación
40 Journal of Film Preservation / 62 / 2001
(what the film is about). Most acknowledge that concept indexing, without the textual description is not possible, and their
examples tend to come from architectural and engineering design, remote sensing systems, and images in painting where
shape and colour play the greater part. Edie M. Rasmussen notes in her article Indexing Images1 ‘indexing of concepts
has been a human function because, except in very narrow domains, the identification of objects in an image has been
difficult to achieve automatically’.
The NFTVA has twenty films indexed under ‘Titanic’ but only one film contains footage of the ship. It is clearly necessary,
however, to index documentaries on the disaster under ‘Titanic’ if a researcher is to bring all the related films together. If
a piece of film shows a boat with people crowding on the deck, only research and knowledge will tell you that these people
are immigrating or emigrating and from which countries and why. The NFTVA has a film which shows an aviator setting
off for a pioneering flight to Cape Town. You don’t see the town he set off from, or the aeroplane in flight, or Cape Town
- just the aviator standing by the ‘plane in front of a hangar. Yet the cataloguer should make entries under Croydon airport,
Cape Town, aviation and perhaps create a heading such as ‘pioneering flights’ in addition of course to the pilot’s name.
Abstract concepts which involve value judgments such as pornography, slums or humour are just as impossible to identify
by any mechanical means and it is a sophisticated image recognition system which could distinguish between a statue of
Churchill and the real thing, a Page Three girl and any other topless model, or Elvis and an Elvis impersonator. And an
image recognition system becomes defunct when concepts replace objects and there is no tangible image - life after death,
mother-daughter relationships, colonialism, homosexuality, the Millennium.
E. Svenonius takes the difficulty of indexing abstraction a stage further and argues that it is impossible to index the unseen
‘non- lexical’ and gives examples of the impossibility of indexing the complexities of Virginia Woolf’s novel ‘Mrs Dalloway’
or the emotional force conveyed by Picasso’s painting
‘Guernica’2. Setting aside the doubt that indexing by the name of the emotion for such works of art may not be necessary
or helpful as a way into these works, then it would seem that an experienced and thoughtful indexer with an understanding
of the painting would choose words to index ‘Guernica’ (Spanish Civil War, heroism, suffering, cubism and so on) which
would not be too far removed from the words used by the majority of researchers to express the request for that painting
by means of the feelings it evokes.
Interviews and discussions afford many more examples. A debate about Terry Waite and Brian Keenan being held hostage
will not
L’indexation des images en mouvement requiert la création de sujets d’indexation qui sont invisibles à l’écran.
Cependant ces concepts peuvent être déduits par l’intermédiaire d’autres sources visuelles ou imprimées.
Certains événements ne peuvent être identifiés à partir de la forme, de la couleur ou de tout autre mode de
reconnaissance automatique aussi sophistiqué qu’il soit. Les spécialistes distinguent “l’indexation du
contenu” (forme, matière, couleur, etc.) et “l’indexation du concept” (le sujet du film). Ces auteurs sont généralement
issus du domaine de l’informatique ou de la théorie de l’information. Ils ne sont pas impliqués quotidiennement dans
le catalogage ou la recherche dans le cinéma. La plupart reconnaissent que l’indexation des concepts est impossible
sans la description contextuelle, et leurs exemples semblent être issus de l’architecture et de l’histoire des arts visuels
dans lesquels forme et couleur jouent un rôle important. La même image peut être utilisée dans des buts très variés,
ce qui cause des problèmes pour l’indexation.
Les systèmes de conversion du langage parlé ou écrit en texte utilisable pour la recherche présentent également des
limitations. Les concepts abstraits impliquant des jugements de valeur ne peuvent être identifiés par un moyen
mécanique. Même un système sophistiqué de reconnaissance d’image ne peut distinguer la statue de la personne
de la chose réelle, ou Elvis Presley d’un imitateur. Le système de reconnaissance d’image devient caduque lorsque
les concepts remplacent les objets et qu’il n’y a pas d’image tangible, par exemple la relation mère-fille ou le
colonialisme. La compréhension des besoins de l’utilisateur et de la terminologie utilisée, ainsi qu’une intuition pour
les sujets susceptibles d’être l’objet d’une recherche pour la télévision ou le cinéma, sont cruciaux et mettent en
lumière l’intérêt pour un catalogueur de travailler en collaboration avec les chercheurs.
41 Journal of Film Preservation / 62 / 2001
La indexación eficaz de imágenes en movimiento a menudo debe ofrecer acceso a algo que no se ve en la pantalla
pero que se puede deducir por referencia a otras fuentes visuales o impresas. ¿Cómo proporcionar informaciones
sobre imágenes de un acto al que está asistiendo un personaje célebre? Los sistemas de indexación “inteligente”
desarrollados recientemente reconocen formas y texturas, movimientos de cámara, voces y perfiles pero no lo que
no se ve. Describir con palabras lo que un catalogador ve y escucha requiere mucho tiempo; por lo cual se espera
que los sistemas de reconocimiento automático de imágenes desarrollados van a facilitar y acelerar el
procedimiento.
Algunos hechos que aparecen en la imagen no pueden ser identificados con los sistemas de reconocimiento
automático disponibles, por más sofisticados que estos sean. Los especialistas en materia de indexación de imágenes
distinguen entre ‘indexación de contenido’ (forma, textura, color, etc.) e ‘indexación de concepto’ (de qué trata la
película.) Estos especialistas provienen más del área de ciencias de la computación o de la teoría de la información
que de la práctica cotidiana de la catalogación de películas o de la investigación cinema- tográfica. La mayoría de
ellos coincide en que la indexación conceptual no es posible sin la descripción literal, y sus ejemplos provienen de
disciplinas tales como el diseño de arquitectura e ingeniería, sensitometría a distancia e imágenes en pintura en las
que el color tiene mayor importancia.
Los sistemas de conversión de textos, que convierten o escanean comentarios y textos, también tienen sus límites.
Por ejemplo, cuando la palabra que designa el tema no aparece bajo ninguna forma en la película, cuando se trata
de reconocer conceptos abstractos tales como colonialismo o relaciones madre- hija, o cuando se trata de distinguir
entre una persona y su estatua, entre un actor y su doble, etc.
Se concluye subrayando la importancia de la comprensión de las necesidades del usuario y de la capacidad intuitiva
del catalogador en identificarlas; del trabajo en equipo entre los catalogadores y los investigadores ante el peligro
de quedar sumergido bajo la cantidad de informaciones solicitadas.
contain the footage or voices of either man but making an index entry under their names and entries describing the political
situation is essential for retrieval. A cataloguer recently viewed a film in which Bob Hope, addressing the military, made
jokes about Bing Crosby and Dorothy Lamour. You don’t see Bing or Miss Lamour but it is necessary to make an index
entry under their names to bring to the attention of researchers that Bob Hope had commented on the characters of his
close friends and co-stars.
Any system which records voices and transcribes these into text or scans commentaries, transcripts and conversations, so
making them available for free text searching, has its pitfalls. The strengths and weaknesses of free-text searching measured
against structured subject headings have been extensively and well argued in many journal articles but in the context of
the need to index what you don’t hear as well as what you don’t see, Roger Smither’s article Access without cataloguing?
an experiment with text-retrieval is particularly
3
illuminating . For the cataloguing of the newsfilm discussed the
paper transcripts of the commentary were read into a text-retrieval package. One item within the newsfilm contained a
boxing match but neither the word ‘boxing’, nor the word ‘heavyweight’ was mentioned in the commentary. In another
item the commentary spoke of ‘cycles’ and ‘bikes’ but not ‘bicycles’. Again human indexing intervention would be needed
to make retrieval possible under the unspoken, but sought after, terms.
Several authors have pointed to the difficulty of indexing images because the
same image may serve many different purposes. Besser in an article ‘Visual access
to visual images: the UC Berkeley Image
4
Database Project’
systems have been woefully inadequate for describing the multitude of access points from which the user might try to
recall the image’.
5 writes ‘historically, text-based intellectual access
Krause in Intellectual problems of indexing pictures positive view and believes that the difficulties of indexing images
have been sometimes exaggerated. He concludes ‘more time spent by indexers in studying the picture and considering
what use it could be put to will give users the opportunity to retrieve the images they require much more quickly’.
Cataloguers know well that a street scene in a town in the north of England, filmed by an amateur film- maker in the early
part of the century, may be of interest to a wide variety of researchers - a local historian; an ad agency wanting footage of
a ‘typical’ urban street scene in black and white; an architect interested in back to back housing; a social historian studying
children’s play or anyone interested in amateur film-making. All the cataloguer can do is to use the knowledge gained on
the enquiries which users make and provide a judicious choice of index entries. It is of course time consuming. This
understanding of user
42 Journal of Film Preservation / 62 / 2001 takes a
more
needs, the terminology they bring, and an intuition for subjects likely to be sought for use in film and televison production,
are crucial and highlight the great advantage of cataloguers working in tandem with
researchers, not in some back room alienated from the information requests. If the cataloguer then finds that a piece of
film is not being retrieved, he or she can ask ‘why’ and may be able to adjust the indexing accordingly.
Sometimes no matter how astute and practical the cataloguer, film will be used in ways which could never have been
predicted. For example a researcher making a televison series about obsessions used some footage of a Cadbury’s factory
- the obsession was eating chocolate. No indexer would have indexed that particular piece of film which showed factory
workers making chocolate under ‘obsessions’. History frequently transforms the significance of events and new phrases
and words enter the language. A television series currently being transmitted entitled Far Out looks at ‘New Age’ beliefs
and behaviour in the first half of the century. Footage is used relating to vegetarians and the Vegetarian Society in the
1930s. Few indexers at that point, or even forty years on, would have indexed the images under ‘New Age’ the focus of
the series. Similarly a television series is underway on the outbreak of World War II and various film footage showing life
in 1939 is being sought. Would any film cataloguer working in 1939 have indexed anything under ‘outbreak of war’?
Peter Enser, who has written widely on indexing images, believes language to be ‘a conservative and stabilising force which
impacts negatively on cognition’6 and quotes Arnheim in support of his view, ‘to see things in a new light is a genuinely
cognitive challenge; to adjust the language to the new insight is nothing more than a bothersome technicality’7. Thinking
about what it is that you don’t see and don’t hear, and expressing those concepts in words, may be a bothersome
technicality, but it is what indexing is all about. Enser goes further and suggests that if the same image can be sought from
many angles then the relevance of the indexing is inherently unpredictable and leads to ‘...an important proposition. If the
retrieval utility of an image suffers from low predictability, the subject indexing of that image must have low utility’8. If
one accepts this to be true, what is a cataloguer expected to do? All an indexer can do is use his or her knowledge of the
collection, their indexing skills, and listen to how researchers express their requests to try and apply a textual description
index to a film or image so a researcher has a reasonable chance of finding it. Most of the time, good indexers get it right
and for the foreseeable future, we shall not be able to dispense with them.
El Taller Técnico del Congreso de la FIAF que tuvo lugar en Madrid en abril de 1999, sirvió como punto de lanzamiento
para un proyecto dirigido a investigar y contribuir al conocimiento de la historia de la fabricación de película virgen
para cinematografía.
Este proyecto, para el que se
ha
adoptado
la
denominación
Proyecto
Madrid —propuesta por
algunos de los miembros
del Comité de Coordinación del Taller Técnico— ha seguido avanzado y, por lo menos en algunos de sus aspectos más
importantes, se encamina hacia la creación de lo que puede ser una herramienta útil para el conservacionismo
cinematográfico.
A través de este artículo, queremos comunicar la situación actual del Proyecto Madrid y recabar de los archivos, los
técnicos y los historiadores de la cinematografía las colaboraciones necesarias para llevarlo a feliz término.
Como se señaló reiteradamente en el Taller Técnico de Madrid, las características y posibilidades de las películas utilizadas
para la filmación y la reproducción determinan muchos de los aspectos estéticos y lingüísticos de cada obra cinematográfica
y el conocimiento exacto de esas características y posibilidades puede constituirse en una guía fundamental para la
restauración y conservación de la cinematografía.
En el Proyecto Madrid, para conocer las características de las películas utilizadas por la cinematografía y para conseguir
convertir este conocimiento en un instrumento útil a la restauración y conservación de las obras cinematográficas, se
plantean dos líneas de trabajo diferenciadas aunque íntimamente relacionadas.
- Como elemento central del proyecto se está desarrollando una base de datos que incluirá las
informaciones sobre las películas fabricadas para la producción cinematográfica: sus características
técnicas, modificaciones y posibilidades de uso; los sistemas de procesado para los que fueron diseñadas; los periodos
durante los que se han utilizado y, por último, los datos necesarios para conocer la historia de sus fabricantes y las
características y marcas que estos introdujeron en las películas y que pudieran ser de utilidad para identificarlas.
- Paralelamente, para rentabilizar las informaciones recogidas en la base de datos haciendo posible su aplicación a
los trabajos de restauración y conservación en cada cinematografía y en cada país, se contempla la necesidad de
promover estudios sobre las películas utilizadas en cada país, sobre los movimientos comerciales de exportación e
importación de película virgen y sobre los sistemas y equipos de trabajo implantados en cada época en los
laboratorios cinematográficos.
Para alcanzar completamente cualquiera de los dos objetivos enunciados es imprescindible la participación activa de los
archivos y de los técnicos e investigadores de todos los países, pero las características de las aportaciones que archivos,
investigadores y técnicos deben realizar para completar uno u otro objetivo, son netamente distintas.
Las informaciones —publicadas o de uso interno de los fabricantes— sobre las películas, sus procesados, etc. que son
valiosas para el desarrollo de la base de datos, pueden encontrarse en archivos, bibliotecas o colecciones, públicas o
privadas, de cualquier país, sin importar dónde hayan sido fabricadas las películas ni el desarrollo alcanzado por la
cinematografía en ese país. En contrario, las investigaciones sobre las películas empleadas en cada época y sobre la
implantación y desarrollo de los laboratorios sólo pueden ser correctamente realizadas desde cada país interesado en
conservar su cinematografía.
LA
B ASE
DE D ATOS
FILM [ C ]
Para recoger las informaciones relacionadas con la fabricación de película virgen se ha creado una base de datos a la que,
arbitrariamente, se ha denominado FILM [c].
Provisionalmente, la base de datos se está desarrollando sobre un soporte ACCESS pero, antes de fin de año, con
la colaboración de la Biblioteca Virtual “Miguel de Cervantes” de la Universidad de Alicante (www.ua.es), FILM [c]
cambiará de soporte y se situará en Internet.
Los datos y documentos recogidos se estructuran en dos tablas básicas (Productos y Bibliografía) y varias tablas auxiliares
(Fabricantes, Países, Archivos y Marcas de identificación y Fuentes documentales)
Las tablas básicas contienen, respectivamente, las fichas de las películas fabricadas para uso cinematográfico y de la
documentación localizada.
Mientras que en la Tabla Productos sólo tienen entrada las 45 Journal of Film Preservation / 62 / 2001 fichas de las
películas, fotográficas o magnéticas, fabricadas para uso cinematográfico, en Bibliografía también se admiten
documentos pertenecientes a películas para uso fotográfico (siempre que estén relacionadas con otras de uso
cinematográfico) y sobre procesos de laboratorio, filtros y los demás equipos y materiales necesarios para el uso de
las películas.
Las tablas Fabricantes y Países, recogerán las informaciones necesarias para establecer la historia de las empresas
fabricantes y del comercio de película para cinematografía y estudios sobre la implantación y desarrollo técnico de los
laboratorios cinematográficos en cada país. Naturalmente, el desarrollo de estas tablas dependerá de los estudios que se
realicen en cada país y, en la actualidad, Fabricantes está
prácticamente sin desarrollo (sólo incluye la clave asignada a cada fabricante, las denominaciones de las empresas y, en
algunos casos, la dirección de su sede social). La tabla Países no ha sido ni siquiera abierta.
Con relación a estas tablas, hay que señalar que en la Filmoteca Española se continúa trabajando en las investigaciones
(que, en su primer estado, ya se presentaron en el Congreso de 1999) sobre los fabricantes españoles de película virgen y
la implantación y desarrollo de equipos y sistemas de trabajo en los laboratorios cinematográficos durante el cine mudo.
En la tabla Archivos se incluyen las direcciones de las personas e instituciones que poseen los originales de los documentos
recogidos en Bibliografía.
La última tabla, Marcas de identificación, que incluiría tanto las introducidas, en imagen latente o impresas, por los
fabricantes como las producidas durante los procesos de filmación, montaje y reproducción y que pueden servir para
establecer la situación generacional de cada material, no es posible prepararla todavía.
De momento, las marcas de fabricante están siendo introducidas en un campo abierto en las fichas de Productos y para
la confección de la tabla será necesario (continuando y prolongando hasta el cine actual el trabajo que realizara Harold
Brown) reunir la cantidad de datos suficiente para hacer posible el análisis y establecimiento de una tipología de los códigos
empleados por los fabricantes.
Respecto a las señales útiles para identificar la situación
generacional de los materiales, en la Filmoteca Española se está realizando una investigación (a presentar en noviembre
de este año) que pretende sistematizarlas y codificarlas. Este trabajo podrá servir como base para incluir estas señales en
la tabla.
Aunque no sea posible elaborar una ficha que unifique y defina todos los datos necesarios para situar históricamente y
definir cada material, en las fichas de la tabla Productos se han introducido una
Reproducción de una ficha de la tabla Productos
46 Journal of Film Preservation / 62 / 2001
serie de datos que pueden servir de guía y facilitar las búsquedas de materiales.
Las fichas se encabezan con el no de registro del material en la base (formado con las siglas atribuidas al fabricante
más tres números) y con la denominación utilizada por el fabricante para su producto.
El campo Tipo contiene una clasificación esquemática del uso principal para el que se fabricaba cada material.
Actualmente, esta clasificación ya se ha ampliado hasta veinte conceptos, algunos parcialmente redundantes, y ha sido
necesario incluir un concepto interrogativo “¿¿” para aquellos materiales de los que sólo se sabe que existieron. Muy
probablemente, esta clasificación tendrá que ser revisada antes de situar la base en Internet.
De forma similarmente esquemática, en el campo Emulsión se clasifican los materiales en Blanco y Negro, Color o
Magnético.
Descripción es un triple campo en el que en inglés, español y francés, se indican las principales características de uso del
material; estas indicaciones se extractan de las publicaciones editadas por el fabricante Dependiendo de la documentación
recuperada de cada producto, pueden incluirse descripciones en los tres idiomas o sólo en alguno. Cuando la
documentación localizada esté en idiomas distintos a los tres citados, se incluye únicamente en español. Dado el carácter
comercial de la documentación de los fabricantes, las informaciones incluidas en cada idioma pueden ser diferentes.
En el campo Características se indica, en la medida que estas aparecen en la documentación localizada, las principales
características técnicas de la emulsión (sensibilidad espectral y temperatura de color, velocidad y poder de resolución), del
procesado recomendado (procesadores y gamma) y del soporte (material plástico, colorantes y barnices anti-halo y tipos
de perforado).
Para especificar los Pasos y Códigos del material se han establecido tres campos dobles (35, 16 y 70) para estos pasos de
película y un campo (Otros) para cuando existan materiales en 8, 9’5, etc. o se haya utilizado más de un código para el
mismo paso.
Dada la importancia de este dato Periodo de fabricación y las dificultades existentes para establecerlo, además de los dos
campos que acogerían los años de inicio y final del periodo de fabricación de un producto, y por si el dato no se conoce
con exactitud, se incluye un campo donde se indicarían las fechas entre las que se tiene constancia documental de la
existencia del material.
Las variantes detectadas en cualquiera de los campos (cambios en el procesado, contradicciones en los códigos utilizados
por el fabricante o en las informaciones sobre el periodo de producción, etc. así como cualquier otra circunstancia de
interés para la definición o la historia del material, se indican en el campo Notas.
47 Journal of Film Preservation / 62 / 2001
Se ha dispuesto un campo muy amplio para incluir las Identificaciones introducidas por el fabricante. Los datos de este
campo se utilizarán para la futura Tabla de identificaciones.
Los códigos de referencia de la documentación relacionada con el producto al que corresponde la ficha, aparecen reflejados
en una serie de campos que permiten realizar un enlace directo con la ficha de
cada documento en la Tabla Bibliografía.
La estructura de las fichas preparadas para los documentos se ha establecido siguiendo los criterios comunes en trabajos
bibliográficos.
Incluyen: los códigos de Identificación de la edición utilizados por el editor, a los cuales, cuando se trata de documentos
separados de otro documento más amplio, se añade la numeración de las páginas donde están situados en el original; el
Título del documento, el nombre del Autor, la denominación del Editor y los datos del Año y Lugar de
publicación; también se indican el Idioma en el que está impreso y las siglas asignadas al Archivo o persona que posee el
original (siglas que encabezan las fichas correspondientes en la Tabla Archivos).
Un campo de texto permite introducir una descripción o Resumen del contenido del documento.
En el código de referencia que encabeza la ficha, la primera letra (minúscula) señala la importancia y relación que el
documento tiene con las películas para cinematografía.
•
•
•
•
- Se utiliza la letra “b” para documentos, referidos a una sola emulsión cinematográfica y que sean
básicos para el conocimiento de ese producto.
- Se utiliza la letra “c” para documentos, referidos a una sola emulsión cinematográfica y que contengan
informaciones no esenciales para el conocimiento del producto.
- Se utiliza la letra “d” para documentos que contienen información sobre varios productos (del mismo
o de distinto fabricante).
- La letra “e” señala a los documentos relacionados con películas para fotografía y los materiales
auxiliares para laboratorio
Para facilitar el acceso a la información, los datos contenidos en los documentos que contienen informaciones
de varios productos (fichas encabezadas con la letra “d”) pueden ser, también, clasificados como documentos
separados que se encabezarían con las letras “b”, “c” o “e”, según correspondiera.
Las dos letras siguientes (mayúsculas) identifican al fabricante o al autor/editor del documento. Estas siglas
también encabezan las fichas correspondientes en las tablas de Fabricantes y Fuentes documentales. Dado que
en libros o revistas no editados por los fabricantes pueden aparecer informaciones referidas a productos de varias
marcas, para facilitar la búsqueda, las informaciones de cada emulsión, aparecerían en fichas independientes, con
las letras “b”“c” o “e”, y con las siglas correspondientes a la marca del material.
Reproducción de una ficha de la tabla bibliografía
48 Journal of Film Preservation / 62 / 2001
El resto de las siglas de este código (tres números + idioma + dos números) relacionan los documentos con los productos
y con el resto de los documentos procedentes de un mismo fabricante o autor/editor.
•
•
- Los documentos referidos a una sola emulsión cinematográfica recibirán siempre el mismo número,
seguido de la abreviatura del idioma en que está publicado y del orden que el documento ocupa entre
los dedicados a un mismo producto.
- Los documentos que hacen referencia a varios productos, reciben el número que les corresponda
atendiendo a su
fabricante o editor y la indicación del idioma en que fueron
publicados.
•
- Dado que en esta tabla un mismo documento puede ser incluido varias veces —en ediciones
realizadas en distinta fecha o idioma—, también es necesario incluir para este tipo de documentos los
dos números finales del código de referencia.
Las fichas de la tabla Bibliografía ofrecen dos posibilidades de enlace: La primera abre paso a la/las fichas
de los productos relacionados con el documento; la segunda enlaza con la reproducción digitalizada del
propio documento.
E STADO
ACTUAL DE FILM [ C ]
The Madrid Project. Researching the History of Raw Stock Manufacture for Cinematography*
Alfonso del Amo García
The Technical Workshop of the FIAF Congress held in Madrid in April 1999 served as a launching pad for a project
aimed at researching and contributing to the knowledge of the history of the manufacture of raw stock for the motion
picture industry. This project, which has been dubbed the Madrid Project at the suggestion of some of those serving on
the Technical Workshop Coordinating Committee, has continued making headway toward creating what may be a useful
tool for film archiving. This article is aimed at reporting the current status of the Madrid Project and of gathering the
necessary information from motion picture archives, experts and historians to make this project a success.
As was pointed out repeatedly at the Technical Workshop in Madrid, the characteristics and possibilities of the film stock
used for filming and copying purposes determine many of the aesthetic and linguistic aspects of every motion picture
made, and a precise knowledge of these characteristics and possibilities can serve as a fundamental guide for restoring and
preserving films. In the Madrid Project, in order to ascertain the characteristics of the different types of film stock used in
the motion picture industry and to convert this knowledge into a useful tool for motion picture restoration and
preservation, two separate although closely related lines of work are entailed.
As the main aspect of this project, a database is being developed which will include the information on the different
types of raw stock manufactured for the motion picture industry: their technical characteristics, modifications and
possibilities for use; the processing systems for which they have been
designed; the timeframes within which they have been used and, lastly, the data necessary for ascertaining the history of
the manufacturers thereof and the characteristics and markings which these film manufacturers employed with regard to
this stock which might be of aid with regard to identification.
As well, to make it possible for the information included in the database to be employed in the restoration and preservation
work for the archive holdings in each country, it is deemed necessary to promote studies on the types of stock used in
each country, on the commercial comings and goings involved in the export and import of raw film stock and on the
working procedures and equipment used during each era at the motion picture processing laboratories. To fully accomplish
either of these two goals, the active involvement of the archives and of the experts and researchers from all countries is
absolutely essential, though the contribution needed from each of these is completely different.
The information – either published or manufacturer in-house information – on the different types of stock, the processing
thereof, etc. which are valuable for setting up the database can be found in archives, libraries or public or private collections
in any country, regardless of where the stock has been manufactured or how advanced the motion picture industry is in
each country. On the other hand, the research on the stock used during each era and on the setting up and development
of the laboratories can only be done
T HE FILM [ C ]
D ATABASE
To collect data related to the manufacture of raw stock, a database has been created and dubbed FILM [c].
This database is tentatively being developed on Microsoft ACCESS. However, before the end of the year, with the
collaboration of the “Miguel de Cervantes” Virtual Library of the University of Alicante (www.ua.es), FILM [c] will be
changing over to another programme and will be put on the Internet.
The data and documents gathered will be organized into two basic Tables (Products & Bibliography) and several
supplementary tables (Manufacturers, Countries, Archives and Identifying Marks & Documentary Sources). The basic
tables respectively include the technical data regarding the raw stock manufactured for the motion picture industry and of
the located documentation. While solely the technical data related to the photographic or magnetic stock manufactured
for the motion picture industry are entered on the Products Table, documents pertaining to film for still photographs are
also included in the Bibliography (provided that they are related to others used for motion pictures).
The Manufacturers and Countries Tables will cover the data necessary to set out the history of the manufacturing
companies and of the motion picture industry raw stock business and studies on the implementation and technical
development of the motion picture processing laboratories in each country. Naturally, how these Tables evolve is going
to depend upon the studies which are made in each country and, at this point in time, Manufacturers has made practically
no headway at all (with the exception of the code assigned to each manufacturer, the names of the companies and, in
some cases, the address of the main office). The Countries Table has not even been opened. With regard to these Tables,
it must be said that at the Filmoteca Española work is currently under way on the research (the initial stage of which was
presented at the 1999 Congress) on the Spanish raw stock manufacturers and the implementation and
development of working procedures and equipment at the motion picture processing laboratories during the silent film
era.
In the Archives Table, the addresses of the individuals and institutions in possession of the originals of the documents
included in Bibliography are provided. The last Table, Identifying Marks, which will include both those added in latent
image or printed by the manufacturers as well as those added during the filming, editing and copying processes which may
serve to establish the generation-related status of each material, cannot as yet be prepared for use. For the time being, the
manufacturers’ marks are being entered into an open field on the Products pages, and for drawing up the Table, it will be
necessary (by continuing and further expanding upon the work done by Harold Brown up to current motion picture
filming) to gather enough data to analyze and set out a typology of the codes used by the manufacturers. The Filmoteca
Española is currently doing research (to be presented in November this year) aimed at systemizing and codifying the
markings used to identify the generation-related status of the materials.
This work may serve as a basis for including these markings in the Table.
52 Journal of Film Preservation / 62 / 2001
E XAMPLE
P RODUCTS
OF AN E NTRY
T ABLE
F ROM
THE
Although it is not possible to process an entry which unifies and defines all of the data necessary to historically
pinpoint and define each material, a number of items have been entered into the Products Table which may serve
as a guide and aid in searching for materials.
The entries are marked in the heading with the Record No. of the materials in the database (comprised of the
abbreviations used by the manufacturer plus three additional numbers) and the designation used by the
manufacturer for its product.
The Type field includes a diagrammed classification of the main use for which each material was manufactured. This
classification has now been expanded up to twenty headings, some of which are somewhat redundant, and it has been
necessary to include a question mark “??” item for those materials regarding which the only known fact is that they indeed
existed. This classification will most likely have to be revised before putting the database on the Internet.
The Black & White, Color or Magnetic materials are likewise classified in the Emulsion field in a diagram format.
Description is a triple field in which the main properties of use of the material are provided in English, Spanish and
French. This information is taken from the publications printed by the manufacturers.
Depending upon the documentation retrieved for each product, descriptions can be included in the three languages or
solely in one or another of the languages. When the retrieved documentation is in a language other than the three
mentioned above, it is included solely in Spanish. Given the commercial nature of the manufacturers’ documentation, the
information included in each language may differ.
In the Properties field, the main technical properties of the emulsion (color sensitivity and color temperature, resolving
power and speed), of the recommended processing (processors and gamma) and of the medium (plastic, dyes, anti-halation
layer and types of perforations) are provided insofar as they are found in the documentation located.
To specify the Perforation Gauges and Codes of the material, three double fields (35, 16 & 70) have been provided for
the perforation gauges set and another field (Others) for the case of materials in 8, 9.5, etc. or when more than one code
has been used for one same perforation gauge.
Given the importance of this Time of Manufacture item and the problems involved in pinpointing the same, in addition
to the two fields which would be used for entering the year in which a product started being manufactured and the year
in which it stopped being manufactured, and in case this item of data is not precisely known, a field is included for showing
the start and end dates within which the documentary proof exists, which gives an approximation as to the existence of
the material in question.
The changes found in any of the fields (changes in the processing, contradictions in the codes used by the manufacturer
or the information regarding the timeframe throughout which the material in question was manufactured, etc. in addition
to any other item of data of interest for defining the material or setting out the history thereof) are displayed in the Notes
field.
A large field has been provided for including the Identifications added by the manufacturer. The data in this field will be
used for the future Identifications Table.
53 Journal of Film Preservation / 62 / 2001
The reference codes of the documentation related to the product to which the entry in question is related are provided
in a number of fields affording the possibility of linking directly to the record of each document in the Bibliography
Table.
E XAMPLE
OF A
D ATA
B IBLIOGRAPHY T ABLE
E NTRY
FROM
THE
The entries prepared for the documents have been organized based on the standard criteria employed in bibliographic
work.
These entries include: the Identification codes of the edition used by the editor, to which, in the case of documents taken
from another longer document, the numbering of the pages on which they are located in the original is added; the Title
of the document, the name of the Author, the name of the Publishers and the data concerning the Year and Place of
publication; an indication is also provided as to the Language in which it is printed and the abbreviation assigned to the
Archive or individual in possession of the original (abbreviations provided in the heading of the entries for the Archives
Table).
A field is provided for typing in a description or Synopsis of the document.
In the reference code provided in the heading of the entry, the first letter (lower case) indicates the importance and
connection that the document in question has with motion picture stock.
•
•
•
•
- The letter “b” is used for documents having to do with one single motion picture film emulsion which
are essential to be familiar with the product in question.
- The letter “c” is used for documents having to do with one single motion picture film emulsion which
contain nonessential information as regards the product in question.
- Theletter“d”isusedfordocumentswhichcontaininformationregarding several products (made by one or
more manufacturers).
- Theletter“e”denotesthosedocumentsrelatedtophotographicfilmand the related laboratory materials.
For more convenient access to the information, the data included in the documents containing information on
several different products (entries headed with the letter “d”) can also be classified as separate documents which
would be marked accordingly in the heading with the letters “b”, “c” or “e”.
The next two letters (upper case) identify the manufacturer or the author/publisher of the document. These
abbreviations also appear in the heading of the entries in the Manufacturers and Documentary Sources Tables.
Given that information having to do with products of several different brands may be printed in books or
journals not published by the manufacturers, for the sake of making the search process easier, the information
on each emulsion would be provided in separate entries marked with the letters “b”“c” or “e”, and with the
abbreviations indicating the brand name of the material in question..
The rest of the characters in this code (three numbers + language + two numbers) link the documents to the
products and to all of the other documents by one same manufacturer or author/publisher.
The documents having to do with one same motion picture film emulsion will always be assigned the same
number, followed by the abbreviation of the language in which it is published and of the order in which the
document is ranked among those dealing with the same product.
54 Journal of Film Preservation / 62 / 2001
Those documents which have to do with several different products are assigned a number based on their manufacturer or
publisher and the indication as to the language in which they were published.
Given that the same document may be included in this Table several times – for editions published at different points in
time or in different languages – it is also necessary to include the two end numbers of the reference code for this type of
document.
The entries in the Bibliography Table afford the possibility of links: The first one opens up to the entry/entries of the
products related to the document in question, and the second one links to the digitized display of the document itself.
E NTRY
C OVER
S HEET
Current Status of FILM [c]
At this point in time (August 22, 2000) the Products Table includes a total of 673 different materials, a total of 980
documents having been entered into the Bibliography Table.
But this current status, which is apparently indicative of some major headway having been made, is deceiving. The
information gathered regarding one type of material and another varies completely from one case to another and includes
everything from situations such as that of the EASTMAN PLUS-X Negativa, 5/7231, which is a material for which eight
technical data sheets published in English and in Spanish in the 1956-1993 period have been traced, to other materials
such as the 3M Color Positive 881, for which only a single reference has been found included in the information gathered
on another product by the same manufacturer which is the only evidence of this material actually existing.
For the database to be truly operative, it is absolutely necessary to gather together much more information.
To this end, until the time when FILM [c] is installed on the Internet, all those archives, experts and researchers who are
interested in contributing documents or in being provided with data currently in the database should contact the Project
Coordinator or any of those serving on the Coordinating Committee, whose e-mail addresses are provided at the end of
this article.
Once the database has been installed on the Internet (on the University of Alicante and on the Filmoteca Española sites),
the contributions can be made directly by means of the mechanisms set up in the database.
R ESEARCH ON THE M OTION P ICTURE
R AW
S TOCK M ANUFACTURERS
AND
ON THE U SE
OF D IFFERENT K INDS OF S TOCK IN E ACH
C OUNTRY
As was pointed out at the beginning of this article, this second aspect of the project depends absolutely on the research
done in each country by the Film Archives, the experts and researchers interested in film preservation.
At the Filmoteca Española, the research begun on the three companies which manufactured raw stock for the motion
picture industry (MA-FE, Valca and Negra) and on the setting up and outfitting of the motion picture processing
laboratories during the silent film era are still under way, however progressing at a rate in keeping with the very few
resources available for these studies. Nevertheless, despite this slow progress, these studies are
55 Journal of Film Preservation / 62 / 2001
Coordinator:
Alfonso del Amo García, Filmoteca Española, alfonso.delamo@icaar.mcu.es Coordinating Committee: Michael Friend,
FIAF Preservation Commission Chairman, otopengo@aol.com
Noël Desmet, Cinématèque Royale de Belgique, laboratoire.cinematheque@freebel.net Hisashi Okajima,
National Film Center - Tokyo, okajima@momat.go.jp
Hidenori Okada, National Film Center - Tokyo, okada@momat.go.jp
already bearing fruit (i.e. a knowledge of the pigments and pigmenting and marking systems used in some laboratories
during the silent film era is now becoming a highly valuable guide for restoring films developed in these laboratories which
are preserved in black and white or in copies obtained from different distributors).
Some of the most outstanding studies of which we have knowledge are those involving the research on different types of
stock used in Venezuela by Mr. Gastone Vinsi and other experts at the National Archives or the study coordinated by Mr.
Hidenori Okada on the different types of stock manufactured in Japan.
Other archives and researchers must surely be conducting studies of the same type and, insofar as it is possible, these
studies will be made available to the public, but for the studies that archives and researchers are currently conducting for
the purpose of accomplishing the objectives set out in the Madrid Project and for the preservation of motion pictures
made in the past, it is essential to combine all efforts.
Motion pictures can only be preserved based on a scientific knowledge of the materials on which they were printed. At
this point in time, when the entire motion picture industry is moving towards electronic filming and copying systems, a
knowledge of what photochemical films are currently like and what they used to be like in the past, of how the motion
picture stock has been manufactured and how this stock and the systems employed for the processing and handling thereof
have evolved is absolutely essential to
ensure that the archives are not contributing, against their will, to the adulteration of the holdings that it is our mission to
preserve.
56 Journal of Film Preservation / 62 / 2001
The Digital Intermediate Post-production Process in Europe
Paul Read
I NTRODUCTION
It seems possible that over the next few years the routine methods for post-producing programmes for the cinema could
change dramatically and for ever, progressively away from film as the camera material, away from film intermediates, away
from film projection, to digital formats for the complete sequence. In some parts of the world this may be gradual; in
North America, and especially in Europe, it is already on its way.
The first digital television broadcast resolution productions were made around 1985, principally in order to create the
special effects now familiar in TV commercials, but until recently all TV transmission has been of analogue signals, and
almost all cinema projection from film. The advent of high definition television has created a market for higher resolution
digital images, and the equipment to create and display these is now available.
Until recently data storage at higher resolutions was costly, slow to download, and video projection techniques, originally
based on high brightness cathode ray tubes produced very poor cinema images. All this is changing, and high definition
television (really a generic term for any resolutions higher than current analogue broadcast TV), the rapidly falling cost of
large data storage systems, and improved video and data projection systems are all contributing.
During this process of change there will be a number of different production routes. This paper looks at the Digital
Intermediate routes, and in particular European systems, which shoot on film, project film in the cinema but use digital
images during post- production.
R ESOLUTION
European broadcast images have 625 lines and a maximum of 720 pixels (picture cells - the smallest unit of image data)
per horizontal line. A digital broadcast image will consist of up to 450,000 pixels.
Film images all have far more image information, and a projected broadcast image will always be inferior to a projected
film image. It is not clear what resolution is actually required to “satisfactorily” record the data in a film image. Kodak has
implied that resolutions up to 4,000 or even 6,000 pixels per line are needed but calculations from Modulation Transfer
Function (MTF) data suggest resolutions as low as 2,950 pixels per line may be adequate. There have been a number of
attempts to standardise on a realistic high resolution (for digital tape, disc or file formats) that can retain sufficient film
image
57 Journal of Film Preservation / 62 / 2001
data. These have all been based on commercially viable scanning devices. Today there are two broadly separate approaches,
“data” and “high definition”.
The term data, in this context, is used to describe uncompressed and uncoded digital image information. The red, green
and blue light intensity is sampled at a specific number of sites (pixels) per line, or area, and recorded as a digital record.
Devices used for scanning are generally “line arrays” and have a maximum pixel number in a horizontal line and depending
on the image aspect ratio of width to height, vary in pixel number for the vertical. Thus a 1:1.33 Academy image scanned
by a line array which samples a maximum of 1,920 pixels horizontally will have a vertical resolution of 1,440 lines, so the
total number of pixels in one frame is 2,700,000. If the area used is less than this, for example if the picture aspect ratio is
not 1:1.33, the resolution may be less. 1,920 is loosely called “2K data”.
Higher data resolutions are also used, 4000 pixels per line (“4K data”) being the current maximum for a conventional
motion picture film image. Block array scanners have fixed vertical and horizontal resolutions.
In addition to spatial sampling (the creation of pixels), the image brightness is sampled, within three wavelength ranges,
red, green and blue, to record the colour and brightness of each pixel. This sampling rate varies with the scanning device
used and usually has a maximum sampling rate. This is called the “bit depth”, 8 bits being the lowest of any device in
current use for images. 8 bits means that the scale of brightness can only be characterized by 8 digital values resulting in
256 different levels of brightness for each of red, green, and blue. 9 bit results in 512 levels, and so on. Some devices are
capable of 16 bit sampling, although it is thought that the eye cannot distinguish beyond 10 bits. However if at a later
stage severe manipulations are made to low bit depth images a whole range of characteristic digital video defects occur,
which can be seen. Data recorded at high bit depths requires considerably more data storage capacity than low bit depths
so a balance needs to be struck.
High definition (sometimes just called HD or “HiDef”) is a term that has come to mean one of a whole series of digital
TV formats into which scanned data can be converted. Unfortunately there are no standard high definition formats,
although there is a list of some twenty different versions cited by the Society of Motion Picture Engineers in the USA.
Most are based on 1,080 horizontal pixels per frame. Compressed HiDef formats (there are both compressed, e.g. D5,
and uncompressed, e.g. D6) are of considerable interest to cinemas as well as for TV because they save on data storage.
They are also interesting to film makers because scanning can be faster than scanning data (the Spirit scans data at 6 frames
a second and HiDef at real time, 24 frames a second) and is therefore cheaper. Whether an image recorded back on film
from high definition is as good as an
58 Journal of Film Preservation / 62 / 2001
image from “data” seems to depend on many issues (resolutions, projector, screen, original film material, etc.) and is largely
untested.
DIGITAL
PROCESSES
-
WHY
CHANGE?
There are both aesthetic and commercial pressures for change. Many (not all!) film-makers are excited by these changes,
which potentially provide these benefits:
•
•
Post-producing in digits gives film makers the opportunity of using all the special effects that have been
available to television commercials producers for many years, without an equivalent increase in cost.
Digital post-production permits an entire film to be given a new or different “look”, previously the
prerogative of television. The cinema image has depended on the image character of film
stocks, despite attempts by film laboratories to experiment with non- standard chemical techniques, such as
“bleach bypass.”
•
•
•
•
•
•
Gauge changing, and gauge and format mixing, is much easier. For example shooting on Super 16 for a
35mm (or digital) release, involves less risk of image quality loss resulting from optical printing, and film
and video sources can be mixed.
Anamorphic images can be generated without complex optics.
Distributors are anxious to reduce the costs of producing cinema release prints and so some favour
video projection in cinemas.
Digital cinema may reduce the risks of piracy.
Equipment manufacturers foresee completely new markets for their technology.
Telecom companies see new data that can be transmitted by their satellites, optical cables or copper
wires.
T HE
ALTERNATIVE
ROUTES
DIGITAL
PRODUCTION
There is a logical progression from film production and display as we know it today, to all-digital production and
display. It is already clear that European feature film post-production technology (probably further advanced
than the US) is fragmenting. A number of techniques, both experimental and mature, that are a part of this
progression, are already in use. These routes can be described as logical points in a sequence commencing with
“all-film” and ending in “all- digital”.
Ces prochaines années, il faudra compter avec des changements profonds et définitifs dans les méthodes courantes
de post- production et de projection dans les salles de cinéma. Les procédés de la chaîne allant des intermédiaires à
la projection, seront progressivement remplacés par des procédés utilisant des formats digitalisés. Le rythme auquel
ces changements auront lieu reste cependant inconnu. Le présent article concerne les procédés des films qui, tournés
et projetés sur pellicule, utilisent des images digitalisées dans la phase intermédiaire de la post-production. Il reste
des questions ouvertes avant de procéder au choix de la résolution et de la profondeur bit optimales. L’article
compare les équipements et procédés utilisés par les systèmes européens de reproduction 2K avec les systèmes de
technologie d’effets spéciaux et le systèmes de doublage de lignes destinés à générer des négatifs sur pellicule pour
des productions de Télévision. L’article comprend une liste de films récents produits avec le procédé des
intermédiaires digitalisés ainsi que les spécifications des formats des originaux et finaux. Ces productions ne
présentent pas de difficulté au point de vue de la conservation par les archives cinématographiques car le négatif
original et des copies sont préservés sur support film. La technologie évoluera cependant vers la projection en format
digital et laissera progressivement tomber la phase d’impression de pellicule. C’est la matrice digitalisée qui
deviendra alors l’original.
1
Conventional film production and display
Negative film in the camera, the negative film cut, called “conformed”, to create a “cut negative”, film as the postproduction intermediate, and print film as the cinema projection medium. This is cinema as we know it today.
Special effects were traditionally duplicate negatives made optically, i.e. in optical printers, and inserted into the original
cut negative. (However, for some years now most special effects and titles have been made by scanning original film
into data, the digital images
59 Journal of Film Preservation / 62 / 2001
En los próximos años se esperan cambios profundos y definitivos en los procedimientos habituales de posproducción
y de proyección en las salas que adoptarán paulatinamente formatos digitalizados. El ritmo al que se irán
produciendo estos cambios es aún incierto. Este artículo trata del procesado intermedio en formato digital, que se
aplica a aquellas producciones filmadas en película cinematográfica y proyectadas en su formato final también
en película, pero cuya posproducción se realiza usando imágenes digitalizadas. Es necesario responder a muchas
interrogantes antes de definir la resolución y profundidad bit adecuadas.
En el artículo se comparan los equipos y procedimientos utilizados por los sistemas europeos de reproducción 2K con
los sistemas de tecnología de efectos especiales y los sistemas con doblado de líneas que generan negativos en
soporte película a partir de producciones para la emisión TV. Se incluye en el artículo un listado de películas recientes
que han empleado sistemas digitales de procesado intermedio con la especificación de sus formatos originales y
finales. Estas producciones no presentan especiales problemas para los archivos ya que el original se preserva bajo
la forma de un negativo y/o de su copia en positivo. Llegará, sin embargo, un momento en que se utilizará la
tecnología digital para la proyección, en cuyo caso el máster final se presentará en un formato digital.
manipulated to create “special effects”, and a new film negative made from the digital image which is inserted into the cut
negative.)
2 C ONVENTIONAL
PROJECTION
FILM
SHOOT -
DIGITAL / VIDEO
Many films are displayed as projected analogue or digital video in small venues, and this will clearly continue. Older poor
quality video projectors will be replaced with high quality and, in time, lower cost, digital projectors. Many venues will
make use of the increasing quality of projected Digibeta and DVD, made from existing (and new) film originals.
3 D IGITAL
INTERMEDIATE POST - PRODUCTION
Negative film in the camera, film scanned to create a digital record, conformed, digital images as the post- production
“intermediate”, a new film negative made from the digital images, and print film as the cinema projection medium.
This is the procedure also called the Digital Film process, especially in Europe (after Philips Digital Film Imaging process).
4 D IGITAL
SHOOT -
FILM
PROJECTION
A digital camera for shooting, digital images as the post-production intermediate, a new film negative made from the
digital images, and print film as the cinema projection medium.
At broadcast resolutions this process is already in use for inexpensive film productions, using broadcast formats for
shooting, and making use of the recent increase in quality of film negatives made from broadcast tape formats, some
originally from film, usually on Digibeta. An example is “One day in September,” 1999.
For some years the European cinema (and to a lesser extent the US cinema) has exhibited films shot on film, scanned to
TV broadcast
resolutions and transferred to a new film negative. This uses software that doubles (or trebles) the apparent line number,
or more sophisticatedly, merges the line structure. Originally these techniques were crude and slow, but the recent
products are a world away from early “line-doubling” technology.
High definition digital video camera formats like HDCam will move the results of this process into a new area of quality.
“Toy Story 2”, 1999, is an example where the images were generated as computer graphics at data resolution. The data
was then recorded out to film negative and conventionally printed to service most theatres. Additionally, the data was
converted to hard disk to be projected digitally in a very limited number of venues.
5 FILM SHOOT
-
DIGITAL
PROJECTION.
Negative film in the camera, film scanned to create a digital record, conformed (i.e. put together in the order required),
digital images as the post-production intermediate, a digital format in the cinema with digital video projection.
Cut film scanned to digital images
Selected images "conformed" to EDL
Ca m er a film
Cut film negative
Digital projection format
Digital Projection
This process has hardly been used at all, although many demonstrations have been made in parallel with film projection
from the same originals. “Phantom Menace” was exhibited on a very limited basis in the US by digital projection. Ironically,
all but one of the shots in “Phantom Menace” were transferred into digital data for compositing and adjustment. A few
of those shots were actually from a high definition digital camera. All this digital data was rendered back to film for
conventional projection in most venues, and rendered from the data source to hard disk for digital projection in those few
digital projection venues.
6 D IGITAL
SHOOT -
DIGITAL
PROJECTION
A digital camera for shooting, digital images as the post-production intermediate, a (different) digital format projected in
the cinema.
This is cinema as we might envisage it in a few years. However, since most cinemas in the world will take time to replace
their projectors we can assume that film negatives and prints will continue to be made for many years.
In reality all these routes exist today and we can expect them all to continue for some while before the expected dominance
of an all- digital route. We can expect increasing fragmentation of the technology with increasing competitiveness from
digits with the accompanying diminution of film, first as a print stock, and then as a camera stock. However it would be a
mistake to consider that the cinema world, from India to the US, from China to Europe, will rush into digits in a few years
- 35mm film has lasted for 100 years because it is simple and high quality.
S PECIAL F ILM
E FFECTS PRODUCTION
The first Digital Intermediate features made used exactly the same technique currently in use for creating short sections
of special effect negatives, and some are still being considered by this route. High resolution slow speed film scanners,
typically the Kodak Genesis, Cintel Klone, or the Oxberry Cinescan, operate at in excess of 20 seconds per frame. These
slow scanners, nominally scanning up to 4K per 35mm frame, are designed to record as much as possible all the effective
data in the frame. They do not allow any significant control or alteration of the image at this stage.
All the control of colour, contrast, saturation and image manipulation is made at a separate workstation (using software
such as Kodak’s Cineon, Quantel’s Domino and Discrete Logic’s Flame and Inferno), once the digital record is available.
Any corrections are then incorporated into a new digital master rendered from the original scanned data. Rendering is
slow, and was originally made more difficult by the restricted data storage in the post-production companies. These special
effects facilities usually only have a few minutes of data storage at these high resolutions. Some do not have scanners, and
rely on a scanning service from other facilities.
Then the film is “re-recorded” back onto a colour film negative, to create a single new film master. Initially re-recorders
were slow, Management Graphic’s Solitaire took 30 secs or more per frame at 4K, although by 1998 Kodak’s Lightning
was taking only 4 secs. The digital intermediate sections of “Pleasantville” followed this route.
When these special effects techniques are applied to whole reels or entire movies, they are really separate film sections
created individually and finally joined together as film negatives, as if they are a conventionally post-produced film.
[Naturally the existence of this special effect technology has allowed archives and collections to experiment with the
technique for digital restoration. Sony-Columbia and the Academy Film Archive used these processes for adjustment of
localized gamma and grain problems and the removal of scratches and marks in sections of
61 Journal of Film Preservation / 62 / 2001
“Matinee Idol” and on two complete reels of “Easy Rider”. Dyte in Italy used the Domino system to resharpen and regrain
poor duplicate black and white scenes of “The Kid” to cut into a new duplicate negative. ]
As the facility companies using classical special effects methods are finding, there are several problems.
•
•
•
•
•
There is no accurate visual calibration between the scanning stage and the final film print.
There may be no accurate visual match between the workstation image and the final film print.
All the grading and image control has to be done at an expensive workstation.
Both scanning and re-record are slow, and therefore expensive, and rendering (to incorporate
corrections) may also be slow.
The final negative may need as much grading correction at the final printing stage as any conventionally
produced film.
•
•
In consequence there is no digital intermediate format that comprises the entire final feature as agreed
between film-maker and post-production house.
There are a number of technical reasons why it is more difficult and slower to manipulate images after
scanning, than correcting the image prior to scanning.
D IGITAL
I NTERMEDIATE S YSTEMS
Calibrated systems are being designed to overcome many of these problems, particularly the lack of visual match
between the scanning stage and the final film print. The key equipment in this was the introduction of the Philips
Spirit Datacine, a telecine-type scanner (these units are also called “high end” telecines) capable of resolutions
from broadcast to 2K, displaying an image on a high resolution monitor that showed the effect of corrections
imposed at the scan stage.
Initially the scanned image as displayed on the monitor was not calibrated to the final film image in the cinema,
but several post- production facility houses have invested in developing their own software links between the
Spirit, the workstation software (often Discrete Logic Inferno or Cineon) and the film re-recorder. The objective
is to display on the Spirit monitor an image that was close, or similar, to that seen finally in the cinema. The Spirit
has one further benefit; it can display the corrected image at real time, and subsequently use those corrections to
scan the film at 2K at 6 frames a second (or real time at TV High Definition resolution).
This technique, mixing video images with projected film images, is not without its problems. It is almost
impossible, perhaps impossible, to obtain an exact match between a small high resolution TV monitor and a
projected film image in a cinema, so this process has to be a compromise. It is a tribute to those technicians who
have
62 Journal of Film Preservation / 62 / 2001
set up these systems that what appears impossible is quite good enough to be successful! More recently a digital video
projector is being tried in place of the monitor by several companies, and in theory, this should eventually produce a
better match with a projected film image.
A further problem in these systems is that numerous manufacturers may be involved; manufacturers that have not
traditionally worked together. Scanners, monitors, data stores, image manipulation software, film re-recorders, film
processors, projectors, both video and film, and film itself, are made by different companies. Connecting together these
items with linking calibration systems has so far been left to the facility house itself.
The first film made entirely by this process was the Swedish film “Zingo” in 1998. “Zingo” was shot on
Super 16, and was destined for a conventional film post-production route with an optical blowup to 35mm. However the
large number of small special effects resulted in a high film laboratory price, and the time these were to take made
scheduling difficult. The Danish company, Destiny 601, which routinely made high resolution commercials for the cinema
and had already made a 16min reel at 2K for a Danish movie “Albert”, offered to make the entire feature by scanning and
re-record to 35mm, creating the effects in Inferno. Destiny had only just enough data storage capacity to do this (about
1.5terrabytes).
Since then Destiny 601, which together with its sister companies, providing telecine, scanning and film processing, make
up Digital Film Lab, have made many features using the technique.
The Spirit has been joined now by a number of telecine-type scanners – (from Cintel, Millenium, Sony etc.) which are said
to be capable of the process. Philips has also introduced a software- hardware package to carry out the conform stage,
called Spekter, although Inferno, Cineon, and perhaps other special effects software, also have this capability. Essentially,
the Digital Intermediate route is, at present, a facility house designed procedure and therefore different from company
to company. Many companies are trying to make the transition from “unlinked” to “calibrated,” and some productions
will represent halfway states between the two.
Digital Intermediate technology has benefits to the filmmaker and to the distributor:
At present the post production costs of using the Digital Film route are about 20% more than using the conventional film
route, if the film-maker makes a conventional film. However as the film-maker needs increasing special effects the route
becomes more economical, and once past a threshold level of effects the process is less costly than conventional film
methods. And that cost is falling.
The Digital Intermediate technology is set to continue as cinema projection becomes digital. New projection formats will
be generated from the data or HD files. DVD will probably be used for some small
63 Journal of Film Preservation / 62 / 2001
venues. In time the film scan stage will be joined, perhaps ultimately replaced, by a digital shooting format like
HDCam. Already, the data used to produce the final negative film is being used to create DVD’s, HD formats like
D5 and D6, for High Definition TV.
T HE PRODUCTION
ROUTE
As an example of a digital intermediate process the following is a description of the route taken by Digital Film Lab in
Copenhagen.
1. 1 Film is shot conventionally. No extra demands are made of the cameraman. The film is processed
normally. Rushes are made on broadcast video tape and editing carried out on a digital editing station to
produce a conventional edit decision list. (Today almost all rushes are on digital video, and almost all editing
on video. Usually just a few critical scenes are printed onto film to check actors, unusual lighting and so on.)
2. 2 The EDL is used to cut the original negative to make a single roll per reel. This cut is not at the EDL frame
but at a point (usually) 10 frames before and 10 frames after the EDL frame. These extra frames are called
“handles” and give the film-maker an opportunity to make fine cut decisions later than usual in the editing
process.
3. 3 The cut negative is viewed on a Spirit Datacine, with the director of photography, or director, or both.
The grading is “rehearsed” to create a record of the grades needed for every scene. Grading on a telecine
provides far more control than any film grade. Colour effects, saturation and contrast changes can all be
imposed, or an overall effect, like desaturation, monochrome effects, colour distortions and reversals,
textures and so on. The image is viewed on a high definition monitor whose image is calibrated to “match”
64 Journal of Film Preservation / 62 / 2001
the final film image seen eventually in the cinema. With a complete feature this can take several days.
4. 4 Once the film makers have agreed the grade, the “rehearsed” grading is used to transfer the complete
film to 2K data at 4-6 frames a second. This doesn’t need any supervision as the grading is stored in the
telecine controllers computer. This takes about 7 hours for a 90 minute feature.
5. 5 The data is downloaded from the local Spirit data store to an Inferno workstation store where it is held
as .dpx files, the file system used by Inferno, one file per frame (in a 90 minute feature there are 135,000
frames). This takes about 1.5 seconds per frame, about 60 hours for a 90 minute feature, but is unattended.
6. 6 The Inferno has a tool that enables the original EDL (or a modified one) to be used to create a conformed
sequence of frame files, deleting the handles where not required. This takes just a few minutes.
7. 7 The film-makers then attend as many sessions as they want at the Inferno workstation to input titles,
special effects created separately or to create new effects. Each time a change occurs the altered files
replace the originals. At this stage dust and minor scratches can be removed or filled as well. This stage
may take as little as a few hours to weeks of special effect creation.
8. 8 At this stage (or at any earlier stage) the data can be downloaded onto an “archiving” as a protection
master tape. Most used is Sony’s DTF tape format. A complete feature film at 2K requires 4 tapes. Once
the production is finished and the final film version finished and agreed the files on the hard disc store is
deleted and the only data record is the DTF tape.
9. 9 Once the complete feature content is agreed the frames files are used to enable an Arrilaser Film
Recorder to expose a single new negative on colour intermediate film. Each frame takes around 2.5
seconds to expose so a 90 minute feature takes about 4-5 days. The film is separated into reels just as if it
was a conventional film production.
10 The new negative is processed normally and printed at a single printer light setting for the whole feature. The
calibration of the system ensures that the film image matches the monitors in the Spirit and Inferno stages. In a
long and complex procedure like this there are occasions when the calibration is not perfect, but this is usually
correctable with a single change to the final printer light.
D IGITAL I NTERMEDIATE PRODUCTIONS
It is not possible to be certain how many Digital Intermediate films have now been produced, certainly many more than
Hollywood would have us believe. The issue is further confused by the number of cinema releases shot on film but postproduced on broadcast TV resolution, and finally transferred to film at this low resolution or
65 Journal of Film Preservation / 62 / 2001
with simple “line doubling” or “up-ressing”. This should be the subject of a different paper.
“Pleasantville”, 1998, was originally said to be the first film in which the content was transferred from film to digits
and back to film, however only part of this film used this process, and much of it used the conventional film route.
“Oh Brother, Where Art Thou?” 2000, has been widely reported as the first film conformed in digits before being
transferred back to film in a single run. However, as usual, Hollywood forgets the rest of the world, and the majority of
Digital Intermediate productions are certainly European, or post-produced in Europe. Lars von Trier’s “Breaking the
Waves” preceeded both of these productions in employing this technique.
At the time of writing it seems that about 25 feature films, perhaps the same number of shorter titles, and innumerable
commercials have been made in Europe using a higher than broadcast resolution. The following list includes “long form”
titles in production to the end of 2000, but the list is not intended to be complete and simply illustrates the range of
production and high resolution post- production techniques currently in use in Europe to produce films for cinema release.
The following films were post-produced by Digital Film Lab in Copenhagen and London.
DENMARK:
“Jolly Roger,” 2001, in production (Feature, Super 16 to 35mm 1:1.85, Dir. Lasse Spang Olsen, M&M Production),
“Blinkende Lygter,” 2000,(Feature, Super 35 to DigitalScope 1:2.35 Dir. Anders Thomas Jensen, M&M Productions),
“Kina spiser de hunde” (“In China They Eat Dogs”),1999,(Feature, Super 16 to 35mm 1:1.85, Dir. Lasse Spang Olsen,
Herdel & Co),
“Tilbage til byen” (“Going Back Home”), 1999, (Short, Super 16 to 35mm 1:1.66, Dir. Michael W. Horsten, ASA Film
Production),
“Udenfor,” 1999, (Short, Super 16 to DigitalScope 1:2.35, Dir. H.F. Wullenweber, Nimbus Film)
SWEDEN:
“Hånden på hjertet,” 2000,( “Once in a lifetime”) (Feature, Super16 to 35mm 1:1.85, Dir.Susanne Bier, Nordisk Film),
“Dubbel 8,” 2000,(Feature, Super35 to DigitalScope 1:2.35 ,Dir. Daniell Fridel, Bjerking Produktion), “Zingo,”1998,
(Feature, Super16 to 35mm 1:1.85, Dir. C. Wegner, Stæremose Film) (the first completely Digital Intermediate
feature film).
NORWAY:
“Øyenstikker” (”Dragonfly”), in production 2001, (Feature, Super16 to DigitalScope 1:2.35, Dir. Marius Holst, Motlys),
“Makronstang,” in production 2001 (Short, Super16 to 35mm 1:1.85, Dir. Magnus Waal, Waal Production),
“Mongoland,” 2000, (Feature, Super16 to 35mm 1.1.85, Dir. Arild Østin, Deadline Film/Muz AS),
67 Journal of Film Preservation / 62 / 2001
“Detektor,” 2000, (Feature, Super16 to 35mm 1:1.85, Dir. Pål Jackmann, Christiania Film),
“Fast Forward,” 2000, (Feature, Super16 to 35mm 1:1.85, Dir. Morten Tyldum, Ice Film)
CANADA:
“Echo,” 2000, (Feature, 35mm to 35mm 1:1.85, Dir.Gian D’Ornellas, Echo Film Corporation)
FINLAND:
“Voitka Brothers – Brothers of the forest” in pre-production 2001, (Feature, Super16 + 35mm to DigitalScope
1:2.35, Dir. Pekka Lehto, KinoFinlandia)
“Tango Cabaret,” 2000, (Feature, Super35 to DigitalScope 1:2,35, Dir. Pekka Lehto, Mattila & Röhr Production)
ITALY:
“Honolulu Baby,” 2000, (Feature, Super35 to DigitalScope 1:2.35, Dir. Maurizio Nichetti, CIDIF/RAI Trade)
TURKEY:
“Vizontele,” 2001, (Feature, 35 mm to 35mm 1:1.85, Dir. Yilmaz Erdogan, BKM – Istanbul)
“Wisconsin Death Trip,” 1999 (Dir. James Marsh HBO/BBC), Super 16 (BW & Col) to 1:1.85.
UK:
“Lava,” 2000, (Feature, Super16 to 35mm 1:1.85, Dir. Joe Tucker, Sterling Pictures)
“Rat,” 2000, (Feature, 35mm to 35mm 1:1.85, Dir. Steve Barron, Universal/Jim Henson)
“In Absentia,” 2000, (Short, Super35 to DigitalScope 1.2.35, Dir. Quay Brothers, Konnick/BBC) “Wilfred,” 2000,
(Short, 35mm to 35mm 1:1.85, Dir. Peter Kershaw, Duchy Films)
“Elevator,” 2000, (Short, 35mm to 35mm 1:1.85, Dir. Alrick Riley, Tiger Lilly Films)
“Mad Dog,” 2000, (Feature, Super16 to 35mm 1:1.85, Dir. Almed Jamal, Roaring Mice Films)
“Last Orders,” work in progress 2001, (Feature, Super35 to DigitalScope 1.2.35, Dir. Fred Schepisi, Scala Productions)
“Time Code 2,” work in progress 2001, (Feature, DV to 35mm 1:1.85, Dir. Mike Figgis, Red Mullet Production)
“Bubbles,” work in progress 2001, (Short, 35mm to 35mm 1:1.85, Dir Mike Southon, First Foot Films)
“All about the girl,” work in progress 2001, (Short, Super16 to 35mm 1.1.85, DOP Geoffery Boyle)
I MPLICATIONS
FOR FILM
ARCHIVES
In the future archives will have to decide what constitutes a “master” for preservation, and the digital projection routes
will bring as yet unforeseen problems.
At present, the Digital Intermediate process represents the greatest number of films being produced at this time (other
than conventionally made films) and this will certainly continue for some
68 Journal of Film Preservation / 62 / 2001
time. In general there are no issues of conservation, preservation or legal deposit that are unique to the process. This is
because so far:
•
all these productions have been produced for the cinema
•
•
the principle format for the cinema has been a film print for film projection
other media formats produced have been for secondary, usually broadcast, release.
However, it is clear that the process has so many advantages, that it will become increasingly difficult to be
certain which format can be described as principal, as features will be made (as they already are today) with an
eye to cinema, TV and “video.” There is an interesting discussion continuing that considers that compressed
digital video formats (such as DVD) projected on digital video projectors may be perfectly adequate for small
venues.
In the past it has been reasonably obvious which the principal format was because a production shot on film,
and transferred to broadcast video resolution for post-production and released on Digibeta was obviously for
TV, whereas a film shot on film and post-produced on film was for the cinema. Now film transferred to high
definition TV resolutions can generate high quality film
masters and high definition TV masters and who is to say which dominates (sometimes only the accountant
knows!).
69 Journal of Film Preservation / 62 / 2001
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T RADITION : A
OF A RCHIVAL
T WO - CENTURY - OLD
F ILMS
Tamara Sergeeva & Natalia Yakovleva
The Festival of Archival Films “Belye Stolby” has become a tradition. This year it was organised for the fifth time. A
hundred years distance, covered by cinema, has inspired the army of professionals and amateurs for a reconstruction of
cinema history which comprised mainstream events as well as a myriad cinema facts, which have long been out of sight
and have been considered of little importance. Cinema’s centenary brought cinema history into the full light and many
people recognised and accepted the major principle of film archives: every cinema fact is significant and deserves to be
preserved for the future. The “Belye Stolby” festival once again this year reminded us of this principle by choosing as its
slogan the words of Henri Langlois: “all films are born free and equal” (which by the way, provoked a discussion between
the film critics participating in the festival).
The program was structured in a number of sections, some of them were traditional. Specifically, “Confrontation VI, the
Phenomenon of Communism”, which offered to the public polar stereotypes about communism (Vladimir Ilyich Lenin
by Michail
“B ELYE S TOLBY V”
M OSKOW
G OSFILMOFOND OF R USSIA ,
Festivals / Festivales
Romm, La vie est à nous by Jean Renoir, Processo a Stalin by Fulvio Lucisano, I was a Communist for the FBI by
Gordon Douglas and others). The polarity of ideological clichés does not, as the section reveals, prevent the authors from
using similar artistic devices and plot schemes meant to impress the viewer. Demonstration of the mechanisms of
persuasion, exploited by counterparts of different ideologies, calls for keeping perspective, for individual analysis and
estimation. Many of our colleagues, young journalists, learn lessons of both film history and history at our festival.
Festival topics usually inspire heated discussions during the round table sessions, that are frequently continued in the
media (we should mention that the event is reviewed by major periodicals as well as by specific cinema-related press).
Though the topics for the round table discussions stem from archival footage nearly invisible in the dark corners of
cinema, they nevertheless revive things from the very distant past,
Vladimir Malyshev and Vladimir Dmitriev, Gosfilmofond of Russia, Festival of Archival Films ‘Belye Stolby V’
Below: Visit at the laboratory in Belye Stolbye
71 Journal of Film Preservation / 62 / 2001
Le festival du film d’archive Belye Stolbye a choisi comme mot d’ordre de sa cinquième édition la phrase d’Henri
Langlois: “Tous les films naissent libres et égaux”, ce qui n’a pas manqué de provoquer des discussions. Une des
sections, qui avait pour thème les stéréotypes du communisme, présentait un intérêt tant historique que
cinématographique par la mise en tension des polarités idéologiques. Les thèmes des tables rondes dont les
discussions se prolongent souvent dans les médias comportaient également une forte composante politique : La
censure, un moyen de préserver la nation ou une “Gestapo de l’esprit”? et Le développement du terrorisme
politique comme une culpabilité historique du cinéma. Un hommage fut rendu à Jean-Luc Godard par la projection
de ses courts métrages. Les films russes ainsi que les nouvelles acquisitions faisaient partie du programme classique
du festival. Belye Stolby V présenta également des compilations d’actualités dont l’une avait pour sujet la Palestine
dans la première moitié du 20ème siècle et l’autre la Seconde guerre mondiale.
El festival de cine de archivos Belye Stolbye adoptó como divisa la frase de Henri Langlois “Todas las películas nacen
libres e iguales”, dando lugar a múltiples discusiones. Una de las secciones tuvo por objeto los estereotipos del
comunismo, cuyas tensiones ideológicas fueron abordadas tanto del punto de vista histórico como cinematográfico.
Los temas de las mesas redondas, que en ciertos casos se difundieron a través de los medios de prensa, también
comportaron elementos de discusión altamente politizados: La censura, un medio de preservar la Nación o una
Gestapo del espíritu ? y El desarrollo del terrorismo político como culpabilidad histórica en el cine. También se rindió
homenaje a Jean-Luc Godard presentando sus cortos. Los filmes rusos y las nuevas adquisiciones formaron el cuerpo
central del festival. En Belye Stolby V, se presentaron selecciones de noticiarios, y en particular una compilución sobre
Palestina, en la primera mitad del siglo y sobre la segunda guerra mundial.
which give rise to arguments as well as commenting on the current social and political situation. The fifth festival offered
two topics: “Censorship – the means to preserve the nation or ‘gestapo of minds’?” (the words on the Gestapo belong to
J.-L. Godard) and “The growth of political terrorism as a historic guilt of cinema”.
Many well-known film critics and journalists took part in the discussions, as well as several film directors. As usual,
opinions were very different. Vladimir Dmitriev, Deputy Director of the
Gosfilmofond, charged cinema with the responsibility for the escalation of political terrorism, while film critic Victor
Matizen and film historian Vladimir Utilov claimed that cinema was innocent of this guilt.
The most interesting discussion took place at the round table devoted to censorship. Some speakers (Gennadii Poloka
and Stanislav Rototskii) who had once come across censorship in the process of filmmaking, meanwhile advocated the
necessity of some censorship in cinema - at least religious censorship.
Besides discussions, the festival offered some traditional sections, timed to mark the centenaries of major
filmmakers. This year the festival participants paid tribute to Ivan Pyriev by screening Konveier smerti (Death
Conveyer, 1933); Russkii vopros (The Russian Question, 1947) by Michail Romm; Pesnia o stchastye (The Song of
Happiness, 1934); Stazione Termini (Termini Station, 1953) by Vittorio de Sica; and L’Oro di Napoli (The Gold of
Naples, 1954); and finally, a selection of early shorts by Walt Disney. Jean-Luc Godard’s 70th birthday was celebrated
by a number of screenings of his short films. The famous Russian writer Andrei Platonov was the subject of a tribute
featuring a selection of films adapted from his texts; this was done to mark the 70th anniversary of his death.
Every year Gosfilmofond of Russia boasts new acquisitions. This time the section ‘Discoveries and
Accessions’ comprised the films which Gosfilmofond received in 2000: Plenniki moria (Sea Captives,
1928) received from Narodni Filmovy Archiv of the Czech Republic, La Madone des sleepings (1927), Kiriki, acrobates
japonais (1907) and Déménagement magnétique (1908), provided by the Cinémathèque Française.
Gosfilmofond uses all means to make archival footage public, including participation in compilation films based on
newsreels. ‘Belye Stolby V’ presented two recent projects. The first film is about Palestine in the first half of the 20th
century. Promised land: The Return by Alexander Rekhviashvili was produced by the NTV television station. The other
film was compiled by Igor Grigoriev out of WWII footage and
entitled Collaborators. Both projects were inspired by and carried out with the assistance of Gosfilmofond archivists.
72 Journal of Film Preservation / 62 / 2001
Le Giornate del Cinema Muto 2000 Hillel
Tryster
To use the terms “anachronism” and “cutting edge” to refer to the same event must sound like a paradox and yet it is
appropriate when discussing Le Giornate del Cinema Muto, still known as the Pordenone Silent Film Festival after its
second edition (of nineteen in all) in nearby Sacile. That silent films are still being screened in the 21st century is certainly
an anachronism; if any one venue can be called the cutting edge of their revival, it is surely the Giornate.
That the riches of the 1999 programme were not topped in 2000 should not be disappointing; the self- competition was
formidable. Many of the promised logistical improvements
that were required after the experiences of the first edition in Sacile were implemented. The shuttle service was streamlined
and the secondary cinema, the Ruffo, was devoted only to
video, which should have meant far fewer painful choices to make for those eager to see as much as possible.
Perhaps the most severe criticism that can be levelled at the organisers emanates from too great a desire to please on their
part. The main screenings at the Teatro Zancanaro were so densely scheduled that time for meals was almost eliminated.
This meant that viewers did have some painful choices to make, after all, and it also meant that the mass gatherings for
lunch which were such a valuable networking tool in the old Pordenone format was, regrettably, more or less obsolete.
Maybe what we have here is a case in which just a little less might actually be more in real terms.
To begin with what is becoming a staple, the fourth year of the D.W.
Griffith project focused on the director’s work of
1910. The simultaneous publication work of notes on the films (together with the British Film Institute) has kept pace
with the screenings and the volume proved a most useful companion, not only for films lacking intertitles, but also in
some cases where a contemporary sensibility might interpret certain visuals in a way other than that originally intended.
The order of the Griffith screenings – by shooting, rather than release, date – is also of value in studying his evolving
style. As in previous years, that style is seen not so much to evolve gradually as to jump both forwards and backwards.
One can only speculate on the details of a process that must have included stylistic experiments that either progressed
or remained dead-ends, depending on final audience reactions.
It is still frustrating to watch the worst of the prints. Highly impressed by the beauty of one of the shots in the 35 mm
print of Ramona, I realized that Love Among the Roses, which had just
Cineteca del Friuli Gemona Pordenone, Sacile
73 Journal of Film Preservation / 62 / 2001
Louis Feuillade (source: Gaumont)
Sybil Smolova, Ivar Kalling in I Mörkrets Bojor (In The Fetters of Darkness), Georg af Klercker (Sweden, 1917),
Courtesy Svenska Filminstitutet
Hillel Tryster présente Le Giornate del Cinema Muto comme une manifestation aussi anachronique -par l’idée de
projeter des films muets au 21ème siècle- que radicale par sa programmation. La quatrième édition du D.W. Griffith
project était consacrée à l’année 1910: la publication a permis de se replonger dans la sensibilité de l’époque et les
projections présentées dans l’ordre chronologique des tournages ont donné une idée différente de l’évolution du
style de Griffith.
Les films d’animation de Walter Lantz rappellait la vivacité du dessin animé avant la couleur et le son. Les films
d’animation scandinaves étaient remarquables par leur rareté. Dans le registre de la variété des publics, on peut
relever la pertinence des discussions organisées par le Collegium Sacilense où sont débattues les approches
théoriques et pratiques du cinéma muet. Une publication écrite par les étudiants va bientôt paraître.
La programmation des films du cinéaste suédois Georg af Klercker était aussi intriguante que versatile entre comédie
et mélodrame. La sélection des films d’avant- garde allemands plutôt classique a permis de revoir des films comme
Cinderella de Lotte Reiniger ou Berlin: Symphony of a City projeté en clôture du festival qui avait commencé, de
manière contrastée, avec Speedy de Harold Lloyd.
preceded it in an awful washed-out 16 mm copy, had probably also contained camerawork no less impressive, if only it
were visible.
On a happier note, the modestly scaled retrospective of animator Walter Lantz was a pleasant reminder of how lively the
cartoon world was before sound and colour. Particularly interesting were the examples screened from the Colonel Heeza
Liar series, often mentioned in reference books, but rarely seen.
Another animation programme, from Scandinavia, featured many items of still greater rarity. Humour was an integral part
of most of these and, as in other countries, the advertising field produced quite a few. One, that could have been calculated
to raise politically correct hackles, had such a thing then existed,
showed the Katzenjammer Kids providing a particular brand of soap to dark-skinned natives, who end up white.
Mention of political correctness could make this the right point at which to mention the Collegium Sacilense, the admirable
experiment in integrating the younger and older generations of Giornate attendees that was begun last year. It would
certainly be correct to single it out as one area in which those tensions that can exist between the more academic and the
more practical approaches to silent film were expressed. In the session I attended as a guest, issues including present-day
policy on films that appear racially inflammatory today were discussed and it is a relief to report that the younger generation
includes considerable variety of opinion. A publication jointly written by the students is to emanate from this experience.
A minor but intriguing programme showcased a number of films by Swedish director Georg af Klercker. Klercker’s
versatility came through well in the selection, in which he had clearly lavished no less care on a farcical comedy like
Lieutenant “Galenpanna” than he did on the convoluted melodrama In the Fetters of Darkness.
While a number of the titles in the German avantgarde programme were oft-revived classics of the genre by Walter
Ruttmann, Oskar Fischinger and others, there were also a few that were less familiar, like Guido Seeber’s virtuoso Du
musst zur Kipho. Even familiar work by Lotte Reiniger evokes awe for the labour-intensive artistry of the cut-out
silhouette animation and her Cinderella showed off an unusually intricate example. Possibly the best known film of this
programme, Berlin: Symphony of a City, also served the Festival as a closing-night event.
The opening event, by contrast, was the Harold Lloyd comedy Speedy, with Carl Davis conducting the Camerata
Labacensis orchestra. Like the previous year’s The Kid Brother, this was a film that had been unjustly neglected, even
though it may not qualify as the very peak of Lloyd’s achievement. A slightly younger Lloyd also made a welcome
appearance in the Rediscovered Comedies section of the programme, where his neighbours were a rather puzzling late
Andre
74 Journal of Film Preservation / 62 / 2001
Deed film and two newly available examples of the quirky creativity of Charley Bowers.
The earliest rediscoveries in the programme (bar one, soon to be mentioned) were 43 Lumière shorts filmed in Italy
which had been preserved just in time. There was also a Georges Meliès discovery, the 200th film unearthed, and it
was screened together with a little refresher course in classic Meliès.
Two overlapping programmes of early film were the Biograph large format shorts (which, according to the notes, were
neither 70 mm nor 68 mm, but 69.85 mm in gauge) and an entertaining compilation entitled The World in 1900. The
latter demonstrated how easily a little ingenuity can provide a flexible and engaging framework for films that otherwise
continue to go unseen. Luke McKernan, who was involved in both programmes, will doubtless never forget how many
times he was asked about the pair of white areas appearing on most of the Biograph films (they were the result of wear
on the original prints by the film transport system used).
The majority of the restorations of largely technical interest had to do with colour processes, including an attempt to
reproduce an effect, originally produced by alternating filters, using modern equipment. Wendy
Glickman, the L. Jeffrey Selznick School of Film Preservation student awarded the Haghefilm
Fellowship, introduced a Technicolor test of Mary Pickford that had been restored using digital
technology, taking care to reassure all purist spectators that proper preservation had also been carried out for the original
film elements.
The Jean Mitry Award was given to Italian film scholar Gian Piero Brunetta and to Rachael Low, the doyenne of British
film historians, a charming lady who still seemed a little taken aback that her research of the late 1940s should earn her
an honour in the year 2000.
The regular pianists (not forgetting also the one violinist) deserve an annual collective award for their contribution,
though it remains to be seen whether Neil Brand will be forgiven for allowing other commitments to snatch him
away halfway through the week.
The most notable film screened for which the live musicians were redundant was also the shortest and – almost incredibly
- the oldest. Rick Schmidlin was on hand to provide background information on the restored Edison sound test, running
less than a minute, featuring W.K.L. Dickson on the violin. While nobody could claim that the footage in and of itself was
remarkable, it was mesmerising simultaneously to see and hear as far back into the past as we will probably ever be able
to go.
Schmidlin’s other prominent contribution was his exhibition of personal papers relating to the life and career of Erich
von Stroheim. Son Joe von Stroheim represented the family and participated in an encounter held at the Film Fair, along
with Arthur Lennig, whose book on von Stroheim had just been published, and von Stroheim scholar Richard Koszarski.
The younger von Stroheim seemed as
Les plus anciennes redécouvertes du festival furent les 43 courts Lumière filmés en Italie et conservés juste à temps.
L’autre événement était le 200ème film de Georges Meliès et la compilation The World in 1900. L’intérêt technique
des restaurations résidait surtout dans les procédés couleur. Wendy Glickman, étudiante à la L. Jeffrey Selznick
School of Film Preservation a reçu le Haghefilm Fellowship. Elle présente la technologie digitale pour restaurer un
test Technicolor de Mary Pickford tout en assurant que l’original était correctement conservé et restauré. La
projection la plus incroyable fut celle du film le plus ancien : le test sonore d’Edison où l’on voit et entend W.K.L.
Dickson jouant du violon.
Sur le festival plânait le fantôme de Louis Feuillade dont l’oeuvre était le sujet de la rétrospective principale. Il
aurait été ravi d’apprendre les spéculations causées par ses films comme par des séries populaires actuelles.
Les comédies les plus anciennes apparaissaient comme les plus fraîches.
75 Journal of Film Preservation / 62 / 2001
Erich and Joseph von Stroheim (from the personal album of Erich and Valerie, 1922-1930), Joseph von Stroheim
Collection
Hillel Tryster presenta Le Giornate del Cinema Muto como una manifestación a la vez anacrónica –por la proyección
de películas mudas en el siglo XXI- y brillante por su programación. La cuarta edición del proyecto D.W. Griffith cubre
los años 10: la publicación permitió evocar la sensibilidad de aquellos años y las proyecciones, presentadas en orden
cronológico de producción, revelaron una idea distinta de la evolución del estilo de Griffith.
Las películas de Walter Lantz nos recuerdan la vivacidad de lo que era el cine de animación antes del color y del
sonido. Especialmente interesantes resultaron las películas poco conocidas provenientes de Escandinavia.
La variedad de la audiencia se notó en la intensidad de los debates organizados por el Collegium Sacilense acerca
de aspectos teóricos y prácticos del cine mudo. Se prevé una publicación escrita por los estudiantes. La
programación de películas del director sueco Georg af Klercker ilustró el aspecto versátil
de su obra, entre comedia y melodrama. Una selección de vanguardia alemana permitió ver nuevamente
clásicos como Cinderella de Lotte Reiniger o Berlin: Sinfonía de una ciudad proyectada como clausura de un
programa que había debutado con Speedy de Harold Lloyd.
Los descubrimientos más antiguos fueron los 43 cortos de Lumière, rodados en Italia y recuperados recientemente.
Otro evento importante fue la presentación del 200o film de Méliès y la recopilación titulada El Mundo en 1900. El
interés de orden técnico residió en los procedimientos de color. Wendy Glickman, estudiante en la L. Jeffrey Selznick
School of Film Preservation recibió el premio Haghefilm. Presentó la restauración del Technicolor mediante
tecnología digital, asegurando al mismo tiempo la conservación y restauración del soporte original. La proyección
más impresionante fue la de un test de sonido de Edison, en el que se ve y se escucha a W.K.L. Dickson tocando el
violín.
Sobre todo el festival planeó el espíritu de Louis Feuillade, cuya obra fue objeto de la retrospectiva principal.
Seguramente le hubiese encantado enterarse de las controversias causadas por sus películas y series populares, sus
comedias más antiguas apareciendo hoy como las más frescas.
American as the older had seemed Teutonic and provided, among others, stories of practical jokes which his father had
relished setting up.
Over all of the above hovered the ghost of Louis Feuillade, whose work was the subject of the main retrospective. Feuillade
himself would no doubt have been gratified to know that his serials were provoking between-screenings speculation, as if
they were popular soap operas, over eight decades after their production. The earlier, more improvisational, serials held
up extremely well when compared to the smoother, but frankly less surprising, entries from the 1920s, such as Barrabas.
The earliest comedies, including those starring child actor Bout De Zan, also seem to be fresher than their contemporaries.
Films from other periods equally merited viewing, even if some presented problems, such as the virulently anti- German
sentiments present in the World War One epic, Vendemiaire.
The Feuillade retrospective provided an excuse for one of the nicest – there is simply no other word – gestures ever to
take place at the Giornate. Not only was Bout De Zan’s widow given an award for her husband’s work, but so was Madame
Genevieve Temporel, who, billed as Bouboule, had co-starred with Bout De Zan in some of Feuillade’s last films in the
mid-1920s. There can be few sights more moving than to see a child star of seventy-five years ago as she receives, in total
disbelief, a standing ovation from several hundred strangers.
But then, this is the same audience that winced at the sight of a documentary about the destruction of exhibition prints as
practiced today, knowing that their successors in the field will one day probably be chasing elusive scraps of the very films
that are today being junked as a waste of storage space. In the fourth episode of Les Vampires, one of the characters,
Metadier, expresses, in an intertitle, his love of the cinema. One person in the Teatro Zancanaro burst into spontaneous
applause.
76 Journal of Film Preservation / 62 / 2001
M O MA
C ELEBRATES S ILENT C INEMA
Steven Higgins
Beginning in October of 1999, and continuing through March of 2001, The Museum of Modern Art in New York
undertook an extensive re-examination of its collections, as well as the very notion of modernism, in a series of exhibitions
called MoMA2000. Actually three separate series – Modern Starts, Making Choices, and Open Ends – MoMA2000
abandoned (at least temporarily) the traditional, chronological history of modern art, developed and championed so
persuasively by MoMA since its
founding in 1929, in favor of a thematic approach to the various permanent collections. The Department of Film and
Video was a key contributor to this experiment.
The opening segment, Modern Starts, attempted to re-think the early years of modernism across all media. Inspired by
the fresh understanding of early cinema which has emerged over the last two decades as a result of the Brighton
Conference of 1978, The Department of Film and Video decided to present its silent film holdings in a new light, giving
renewed emphasis to films produced before World War One. An equally important consideration was the fact that,
although the Museum had added significantly to its collection of international silent cinema over the past thirty years, few
of these recent acquisitions had been presented to our film-going public.
The entire length and breadth of silent cinema was covered, and so the title chosen for the series – From Automatic
Vaudeville to the Seventh Art: Cinema’s Silent Years – was an attempt to convey the notion of the medium’s
development, from its humble beginnings as a theatrical and fairground amusement in the nineteenth century, to its full
flowering as an art form in the first decades of the twentieth. Of the several thousand silent-era films in MoMA’s
collections, only those deemed essentially complete, or of best- surviving image quality, were programmed; fragments and
subjects whose primary value reside in their historical content were also exhibited, but in special screenings where they
could be offered within an appropriate context.
Significantly, our earliest holdings were presented in a manner sympathetic to their first exhibition in the years 1893-95.
Rather than project Thomas Edison’s kinetoscope loops in our theaters, as has been our custom, we wanted to show them
in something approaching their original context – as a peepshow attraction within a larger space devoted to leisure
activities. The Museum commissioned Ray Phillips to build two facsimile kinetoscope machines and placed them in
CaféEtc., a multimedia environment created as a laboratory in which we might experiment with a variety of new (and old)
technologies in a traditional café setting. Such titles
M USEUM OF M ODERN
A RT , N EW
Y ORK
Noticias de los afiliados
News from the Affiliates / Nouvelles des affiliés
77 Journal of Film Preservation / 62 / 2001
De octubre 1999 a marzo 2001, el MoMA presentó sus colecciones bajo la perspectiva de la noción de modernismo
de la serie de exposiciones MoMA2000. La presentación cronológica, vigente desde la fundación del museo en 1929,
fue remplazada por criterios temáticos correspondientes a tres secciones: Modern Starts, Making Choices y Open
Ends. Modern Starts corresponde a la tentativa de repensar los primeros años del modernismo en todas sus formas
de expresión. Esto brindó al Department of Film and Video la posibilidad de enfatizar el cine que precedió a la Primera
guerra mundial y de mostrar las películas adquiridas recientemente.
From Automatic Vaudeville to the Seventh Art: Cinema’s Silent Years es el título de la serie sobre la historia del cine
mudo: de sus comienzos como teatro traducido a imágenes y diversión característica del siglo XIX a su desarrollo
como práctica artística del siglo XX. Paralelamente a las proyecciones, el kinetoscopio de Edison fue presentado en
su contexto de los años 1893-95, como atracción voyeurista en un lugar de diversiones. Facsímiles fueron ubicados
en el CaféEtc, espacio multimedia dedicado a la exhibición de tecnologías antiguas y nuevas. Por una moneda, por
ejemplo, los visitantes podían volver a ver las imágenes de Blacksmithing Scene (1893) o Sandow (1894) durante
unos 30 segundos. En esta
ocasión, el MoMA volvió a editar la History of the Kinetograph, Kinetoscope and Kinetophonograph de W.K.L. y
Antonia Dickson (cuya crítica publicamos en la sección de ‘Publicaciones’).
From Automatic Vaudeville to the Seventh Art: Cinema’s Silent Years (oct. 1999 - abril 2000) es organizado
por Steven Higgins, Conservador de Film Collections, The Museum of Modern Art. Puede solicitarse la lista de
películas a: Steven_Higgins@moma.org.
as Blacksmithing Scene (1893), Sandow (1894) and Annabelle Butterfly Dance 1 (1894) were exhibited on a rotating
basis throughout the series. Viewers dropped a coin in a slot and the 35mm subject would slowly flicker to life, running
for approximately thirty seconds before fading away. The effect on most museum visitors was telling, as many had never
before experienced such an intimate, almost voyeuristic relationship to a moving image. Thus we were able to lay the
foundation for what would be the startling appearance of the projected image.
As a companion to the appearance of the kinetoscopes themselves, MoMA brought back into print a rare volume from
its special collections, W.K.L. and Antonia Dickson’s History of the Kinetograph, Kinetoscope and Kinetophonograph.
Originally published in 1895, it is the earliest published history of the cinema and is based on material first presented in
the Dicksons’ book-length biography of Thomas Edison published the previous year. The Museum chose to issue a
paperback facsimile of the original volume in its collections because it has the distinction of being W.K.L. Dickson’s
personal copy, acquired by MoMA in 1940 and containing fascinating marginalia in his own hand. In their far-reaching,
yet wonderfully astute predictions concerning the future of the cinema, Dickson and his sister drew upon their intimate
knowledge of the cinema’s initial development at the Edison lab in New Jersey, as well as their own hopes for its ultimate
success, to craft a history of the medium before it had even grown beyond the confines of its peepshow origins.
The heart of From Automatic Vaudeville to the Seventh Art was, of course, the films. Over three hundred were screened
and, with the exception of a handful of titles that were chosen by guest speakers to accompany their presentations, all
were from the Museum’s collections. While the great bulk of our holdings are American, many other national cinemas are
to be found in MoMA’s archive, among them Canada, Germany, Denmark, Japan, Italy, France, Great Britain, Sweden,
Hungary, The Soviet Union, Brazil, Argentina, the Netherlands, and India.
The work of many of the most significant filmmakers of the period was exhibited. Here is a sampling of those included
(in no particular order): D.W. Griffith, Thomas H. Ince, John Ford, Marcel L’Herbier, Charles Chaplin, Abel Gance, Fritz
Lang, Robert Wiene, Buster Keaton, Maurice Tourneur, Edwin S.
Porter, Alice Guy-Blaché, Carl Th. Dreyer, Harold Lloyd, Ernst Lubitsch, Minoru Murata, Mauritz
Stiller, Jean Epstein, Lois Weber, Erich von Stroheim, Joris Ivens, Mack Sennett, Rex Ingram, Paul
Wegener, King Vidor, Hal Roach, René Clair, Marshall Neilan, Cecil B. De Mille, Yasujiro Ozu, Oscar
Micheaux, Victor Sjöström, Urban Gad, Lotte Reiniger, August Blom, Colin Campbell, Sándor
(Alexander) Korda, Teinosuke Kinugasa, Dziga Vertov, Mário Peixoto, Paul Leni, Raoul Walsh, Frank Borzage, Reginald
Barker, D.G. Phalke, Alcidas Greca, F.W. Murnau, E.A.
78 Journal of Film Preservation / 62 / 2001
Dupont, Vsevolod Pudovkin, Howard Hawks, Jean Renoir, and Alexander Dovzhenko.
Particular attention was paid to those collections which are at the heart of MoMA’s silent film holdings, most notably the
films of the Edison and Biograph companies, D.W. Griffith, Douglas Fairbanks, Harold Lloyd, William S. Hart, Colleen
Moore, and the Fox Company (in which can be found the early works of Ford, Walsh, Hawks and Borzage, among others).
Ongoing preservation efforts were highlighted by the screening of important works recently restored by film conservator
Peter Williamson: The Nut (1921), Grandma’s Boy (1922), Hell’s Hinges (1916), Way Down East (1920), Orphans of
the Storm (1921), Hangman’S House (1928), Street Angel (1928), Broken
Blossoms (1919), three different versions of Intolerance (1916), and numerous short films of Biograph,
Edison and Vitagraph from 1903-1912. As part of our preservation program, musicologist Gillian Anderson was
commissioned to create a “restored” piano score for Broken Blossoms, using the original orchestral parts deposited several
years ago by MoMA with the Music Division of The Library of Congress in Washington, D.C. This score was performed
at a special March 2000 screening by pianist Christine Niehaus, who also performed the original piano score to Wings
(1927), earlier in the series.
The one aspect which made From Automatic Vaudeville to the Seventh Art different from any other program recently
presented at MoMA was the appearance of a significant number of guest lecturers, all experts in their subjects. Their brief
was simple, yet challenging: to give audiences a deeper understanding of some particular aspect of silent film, as well as to
provide a variety of contexts by which to approach the art form. Speakers were scheduled throughout the seven months
of the show according to their availability. In order of appearance, they (and their topics) were:
Richard Koszarski (The Silent Film in New York)
Herbert Reynolds (Just Off the Stage?: The Theater and the Camera in Ben Hur and Other Kalem Productions)
Ronald Magliozzi (Sheet Music, Song Slides and Early Cinema) Steven Higgins (Saving Silents at
MoMA)
Joseph P. Eckhardt (When the Movies Were Young – In Philadelphia: The Lubin Company)
James Frasher (Life, Lillian Gish and Me)
Richard Abel (What’s Missing at MoMA)
Edwin Thanhouser (The Thanhouser Film Enterprise, 1909-1918) Paolo Cherchi Usai (The Way of All Flesh Tones:
Color in Silent Film)
Patrick Loughney (Gems of Early Cinema from The Library of Congress)
Jeanine Basinger (introduction to Don Q, Son of Zorro (1925), on the occasion of the publication of her book, Silent
Stars)
D’octobre 1999 à mars 2001, le MoMA a présenté ses collections sous un jour nouveau tout en mettant en
perspective la notion de modernisme à travers une série d’expositions MoMA2000. La présentation chronologique
mise en avant depuis la fondation du musée en 1929, a été abandonnée au profit d’une approche thématique selon
laquelle les oeuvres sont réparties en trois sections:
Modern Starts, Making Choices et Open Ends. Modern Starts correspond à une tentative de repenser les premières
années du modernisme dans tous les médiums. Ce fut l’occasion pour le Department of Film and Video de mettre
l’accent sur le cinéma qui a précédé la première guerre mondiale et de montrer des films acquis récemment. From
Automatic Vaudeville to the Seventh Art: Cinema’s Silent Years est le titre de la série sur l’histoire du cinéma muet:
de ses débuts en tant que théâtre mis en images et divertissement, au 19ème siècle à son développement en tant
que pratique artistique, au 20ème siècle. En plus des projections, le kinétoscope d’Edison était présenté dans un
environnement reconstituant son contexte d’origine en 1893-95, c’est-à-dire plutôt comme une attraction presque
voyeuriste dans un lieu de divertissement. Des facsimile étaient placés dans l’espace multimedia CaféEtc où l’on peut
expérimenter une variété de nouvelles et anciennes technologies. Les visiteurs inséraient une pièce de monnaie pour
voir défiler les images de Blacksmithing Scene (1893) ou Sandow (1894) pendant environ 30 secondes, ils pouvaient
revivre l’apparition sensasionnelle de l’image projetée. A cette occasion, le MoMA a réédité History of the
Kinetograph, Kinetoscope and Kinetophonograph de W.K.L. et Antonia Dickson’s (voir compte- rendu de cette
publication dans la section de publications).
From Automatic Vaudeville to the Seventh Art: Cinema’s Silent Years (oct. 1999 - avril 2000) est organisé
par Steven Higgins, Curator of Film Collections, The Museum of Modern Art. Vous pouvez demander la liste
des films à Steven_Higgins@moma.org.
79 Journal of Film Preservation / 62 / 2001
S CREEN S OUND
A USTRALIA , C ANBERRA
Victoria Franklin-Dillon (Sidney A. Franklin, Sr.: Coming of Age in Early Films)
Rick Altman and colleagues (The Living Nickelodeon)
David Francis (The Magic Lantern: Visual Entertainment and Instruction Before the Cinema)
In the end, what MoMA audiences gained from the series was a renewed appreciation for the treasures in its film archive,
as well as a matchless introduction to the art of the silent cinema.
From Automatic Vaudeville to the Seventh Art: Cinema’s Silent Years was organized by Steven Higgins, Curator of
Film Collections, The Museum of Modern Art. It ran from October 1999 through April 2000. Those wishing to receive a
checklist of the entire series (as a Word document attachment) may contact the author by email
(Steven_Higgins@moma.org); he will do his best to reply in a timely manner.
F ILM
A RCHIVING AT THE N ATIONAL F ILM
S OUND A RCHIVE ,
S CREEN S OUND
AND
A USTRALIA
Previously known as the National Film and Sound Archive, ScreenSound Australia is responsible for preserving
and providing access to Australia’s audio-visual heritage. Growing from the National Library of Australia’s film and
recorded sound collections, dating back to the 1930s, ScreenSound now has a staff of over 200, recently refurbished and
newly built laboratory, administration buildings and a collection of over a million items (including paper- based material).
Our catalogue, comprising over 400,000 items (including several thousand digitised images – lobby cards and stills) is
accessible through the web at www.screensound.gov.au. Researchers can highlight titles and make access requests online.
This facility, available for around a year now, has helped substantially in managing the increased level of
enquiries being received (although of course, it may also have been a major cause of this increase!).
N ITRATE
Up until World War One, Australia was a major film producer, with around 100 features being produced during this
period, including, arguably, the world’s first narrative feature film (running for an hour), 1906’s The Story of the Kelly
Gang. Unfortunately only a handful of these have survived, partially or completely. The situation is little
ScreenSound Australia, Canberra
80 Journal of Film Preservation / 62 / 2001
better for later features, with 50 or so silent features surviving in part or whole from an output of 250.
The main component of the Archive’s nitrate collection of some 12 million feet comprises newsreels. For the period 1932
until nitrate ceased being used, there is virtually complete weekly coverage provided by two companies. With earlier
newsreels from a variety of sources, this material is one of the most in- demand areas of the collection. Following
sponsorship from the modern day successors of the newsreel companies, a large majority of the collection has been copied.
In recent years, the emphasis placed on nitrate copying has reduced with resources being put elsewhere. Following
examination of all nitrate cans, it has been found that the environment provided by the purpose built storage facility has
helped maintain the collection in good condition and thus the urgency of copying has reduced somewhat with the result
that it will be some years yet before the entire collection is copied.
A CETATE
Despite the absence of any form of legal deposit legislation for audio- visual materials, the Archive’s collections have
grown in a reasonably comprehensive manner across all genres and formats. Using a collection development policy based
upon various weightings and criteria (available through the web- site), the acetate film collection includes the majority of
feature films made in the last fifty years (mainly as prints, although we are working to expand our holdings of original and
duping materials), together with a comprehensive collection of newsreels, documentaries, shorts, home movies and, to a
lesser extent, early television. Over 80% of this material is described on our collection management database, MAVIS,
which controls all aspects of collection access, movement and preservation actions.
All areas of the collection have been sampled for vinegar testing with generally pleasing results, except for the magnetic
sound tracks which show consistently higher levels. This is being investigated further. Colour dye fade is also in the process
of being assessed using a high quality scanner and purpose designed software. The recent purchase of a second telecine
machine has increased our capacity for copying film to video (including the ability to create digital copies) and the purchase
and installation of a purpose designed Debrie printer last year has increased both the quantity and quality of our film
copying program.
The main preservation storage facilities for safety film are close to capacity and the Archive is in the process of developing
proposals for a new storage complex to cope with growth which is expected to peak in physical size over the next ten
years as more analogue material is acquired, and then level off or fall as the majority of acquisitions become digital.
Connu sous le nom de National Film and Sound Archive, ScreenSound Australia est l’archive du film principale
d’Australie. Fondée dans les années 30, l’institution emploie aujourd’hui environ 200 personnes, bénéficie d’un
nouveau laboratoire et détient une collection de plus d’un million d’éléments. Le catalogue qui comprend plus de
400.000 éléments est accessible sur le site www.screensound.gov.au. Jusqu’à la première guerre mondiale, de
nombreux films étaient produits en Australie, dont le célèbre The Story of the Kelly Gang en 1906, considéré par
certains comme le premier long métrage de fiction.
Seulement une petite partie de ces films est conservée. La collection nitrate contient principalement des actualités:
les nouvelles hebdomadaires de 1932 à la fin de l’utilisation du nitrate sont conservées. Une grande partie de la
collection est copiée et les conditions de conservation sont telles qu’il n’y a plus d’urgence pour le reste de la
collection. Malgré l’absence de dépôt légal, les collections de longs métrages sur support acetate -principalement
des copies- se sont constituées selon différents critères (voir site internet) durant les cinquante dernières années. A
présent, l’accent est mis sur les originaux et les genres du documentaire, actualités, courts métrages et télévision
des débuts. Plus de 80% de ce matériel est accessible sur la base de données MAVIS. Les collections sont peu touchées
par le syndrome du vinaigre et les technologies mises en oeuvre permettent de copier en vidéo. La digitalisation
augmente également les possibilités d’accès. Les dépôts s’agrandissent alors que les acquisitions digitales
s’intensifient. Un programme de capture et de mise à disposition en ligne d’une sélection de pages internet et autres
médias ‘virtuels’ a débuté.
81 Journal of Film Preservation / 62 / 2001
Antiguamente conocido bajo el nombre de National Film and Sound Archive, ScreenSound Australia es el principal
archivo de Australia. Fundado en los años 30, la institución emplea hoy día unas 200 personas, está dotada de un
nuevo laboratorio y tiene bajo su custodia una colección de más de un millón de elementos. El catálogo tiene más
de 400.000 fichas accesibles a través del sitio www.screensound.gov.au. Hasta la primera guerra mundial,
numerosas películas fueron producidas en Australia, tales como la célebre Story of the Kelly Gang en 1906,
considerada por algunos como el primer largometraje de ficción. Sólo se conservan fragmentos de este film. La
colección de nitratos contiene principalmente noticiarios de 1932 hasta el fin de la era del nitrato. Gran parte de las
colecciones está conservada en condiciones óptimas, por lo que no existe urgencia para el resto.
Al no disponerse de leyes en materia de depósito legal, las colecciones de películas en acetato se formaron según
criterios que variaron durante los últimos 50 años (ver sitio internet). Actualmente, se da prioridad a los originales y
a los documentales, noticiarios, cortometrajes y películas de televisión de los primeros tiempos. Más del 80% de este
material es accesible a través de la base de datos MAVIS. Las colecciones no se encuentran mayormente afectadas
por el síndrome del vinagre y se adoptaron las nuevas tecnologías de transferencia a video. La digitalización aumenta
las posibilidades de acceso. Los depósitos crecen, mientras que las adquisiciones en formato digital se intensifican.
Se inició un programa de ingreso y acceso en línea de una selección de páginas internet y otros medios ‘virtuales’.
The next few years will see nitrate and acetate copying to film continue at similar rates as the past. One recent initiative
has seen a joint program sponsored by Kodak Australasia and Atlab Australia to produce new screening prints of
important Australian features and related material. Over a period of five years, 50 new prints will be struck and made
available for screening programs throughout the country. In addition, our access collection of videos (and CD and DVDs)
will grow significantly in order to meet increasing client demand.
A number of major digitisation programs will come on stream – providing both preservation and access potential – and
collaborative arrangements with cable or satellite communications providers are likely to see more of our collection
become widely available as product to subscribers. At the same time, copyright clearances and digital rights management
will continue to consume greater levels of resources in order to meet the potential the new technologies can offer.
Finally, as we cover the entire range of audio-visual output in our collecting brief, there will be a growing emphasis on
capturing and making available on-line broadcasting, relevant web pages and other ‘virtual’ media. A position has recently
been dedicated to this work and, in conjunction with the National Library of Australia, is developing methodologies for
identifying appropriate sites and one- off activities, ensuring these are captured in an appropriately ‘technology neutral’
manner and then properly catalogued and controlled in our system which has been primarily designed to cope with physical
objects. There will certainly be no shortage of challenges over the next two decades!
The Cineteca del Friuli was born in 1977 in Gemona, when the city was at the height of its reconstruction after the earthquake of 1976,
which had devastated parts of Friuli and particularly Gemona. The film archive originated with a collection of films of historical interest
(the brothers Lumière, Georges Méliès, Edwin S. Porter, Thomas A. Edison, David W. Griffith, Mack Sennett, Max Linder, André Deed,
Ferdinand Guillaume), which provided the basis for the first editions of the Giornate del Cinema Muto, the festival inaugurated in 1982
82 Journal of Film Preservation / 62 / 2001
and organised in collaboration with the Pordenone cine-club Cinemazero. Subsequently the Giornate has become a
recognised international event, followed by scholars and enthusiasts from all over the world, and from the first years
regarded by FIAF members as a privileged venue to present their own treasures. This interest made it possible for the
Cineteca del Friuli, besides being a member of the Association des Cinémathèques Européennes (ACE), to join the
Federation in 1989, initially as a provisional member and from 2000 with full membership.
The Cineteca’s film archive, currently in the process of being catalogued, has extended over the years to embrace American
animation, the classics of the 20s, rarities from the early years of sound film, the earliest Technicolor and the American
underground. Today the Cineteca possesses around 3000 fiction films in 16mm and 35mm and 3300 documentaries and
newsreels. 3000 titles, 350 of them on DVD, are available for consultation, especially for students.
In addition to the film collections, the book library of some 15000 volumes includes primarily monographs on people
working in the motion-picture industry (from producers to stuntmen), histories and studies on the cinema of individual
countries, material on pre-cinema and catalogues of the major national and international festivals. The newspaper and
periodicals library includes runs of some hundred specialist magazines and periodicals from Italy and abroad, with
microfilm of such rare and hard to find journals as Cine-Fono, La Vita Cinematografica and The Moving Picture
World. This facility, unique in Italy, is accessible to students and researchers, thanks to the public opening of the library
and the availability of specialised staff, and its value is further enhanced by the on-line catalogue currently in progress.
The Cineteca del Friuli is today a centre for documentation and studies, in contact with private and public archives,
museums, cinemathèques and universities across the world. It is in addition a phototèque, a publishing house for
books, videocassettes and periodicals, a centre for the organisation of special events, festivals (primarily, le Giornate
del Cinema Muto) and other events of local, national and international context. Publishing activities include, besides
the journal of cinema history
Griffithiana, issued three times a year in a bilingual English-Italian edition, such individual volumes as Maciste e Co.
I giganti buoni del muto italiano (1981) by Mario Quargnolo and Vittorio Martinelli; La parola ripudiata: l’incredibile
storia dei film stranieri in Italia nei primi anni del sonoro (1986) by Mario Quargnolo; Hollywood in Friuli: sul set di
“Addio alle armi” (1991) by Carlo Gaberscek and Livio Jacob;
Trieste al cinema, 1896- 1918 (1995) by Dejan Kosanovic; Il Friuli e il cinema (1996) by Carlo Gaberscek
and Livio Jacob; the two volumes of Sentieri del western (1996 and 2000) by Carlo Gaberscek; Cuor d’oro e muscoli
d’acciaio (2000) by Vittorio Martinelli. An information bulletin on the activity
Cineteca del Friuli, Gemona
La Cineteca del Friuli (1977) a joint la FIAF en 1989 comme Membre Provisoire et a acquis son statut de
Membre en 2000. L’archive s’est créée à partir de l’idée d’une collection de films historiques: les Frères
Lumière, Méliès, Edwin S. Porter, Thomas A. Edison, D.W. Griffith, Mack Sennett, Max Linder, André Deed, Ferdinand
Guillaume. Ces oeuvres étaient le nucléus de la première édition du Festival Giornate del Cinema Muto à Pordenone
en 1982. Le festival est considéré par les Membres de la FIAF comme une occasion de montrer leurs trésors. La
collection de la Cineteca del Friuli compte à présent quelques 3000 films de fiction en 16mm et 35mm, et 3300
documentaires et actualités. La bibliothèque propose environ 15000 volumes en plus des périodiques et de la FIAF
FilmArchive Database. Les collections bénéficient d’une plus grande visibilité et d’un meilleur accès depuis que la
Cineteca del Friuli a emménagé dans le Palazzo Gurisatti à Gemona, en 1997. En 1999, un nouvel espace, la Galleria
della Cineteca, est créé pour des réunions, des projections vidéo, des expositions et des présentations de livres. Les
activités d’édition comportent à côté du périodique sur l’histoire du cinéma, publié trois fois par an Griffithiana, des
livres et des cassettes vidéo.
83 Journal of Film Preservation / 62 / 2001
La Cineteca del Friuli (fundada en1977) se incorporó a la FIAF en 1989 como Miembro provisional y obtuvo el
estatus de Miembro de FIAF en 2000. El archivo fue creado en torno a la idea de de una colección de películas
históricas: los hermanos Lumière, Méliès, Edwin S. Porter, Thomas A. Edison,
D.W. Griffith, Mack Sennett, Max Linder, André Deed, Ferdinand Guillaume. Las obras de estos pioneros
constituyeron el núcleo del primer Festival Giornate del Cinema Muto de Pordenone en 1982. El festival es
considerado por los miembros de la FIAF como una ocasión de mostrar sus tesoros. La colección de la Cineteca del
Friuli comprende hoy unos 3000 films de ficcción en 16mm y 35mm, 3300 documentales y noticiosos. La biblioteca
consta de unos 15000 volúmenes, una coleción imlportante de periódicos y de la FIAF FilmArchive Database. Las
colecciones gozan de una mejor visibilidad y acceso desde que la Cineteca del Friuli se mudó al Palazzo Gurisatti en
Gemona, en 1997. En 1999, un nuevo espacio, la Galleria della Cineteca, fue creado para organizar reuniones,
proyecciones video, exposiciones y presentaciones de libros. Como editorial, la Cineteca del Friuli produce el periódico
de historia del cine trimestral Griffithiana, libros y cassettes.
M USÉE D ÉPARTEMENTAL
B OULOGNE
A LBERT -K AHN ,
of the Cineteca del Friuli, Il Raggio Verde, is published three times a year.
In addition to these printed publications the Cineteca has issued ten videocassettes, including Tiger’s Coat
(1920), the only surviving Hollywood film with the famous Italian photographer Tina Modotti, and La
Sentinella della Patria, the video version of the reconstruction of a 1927 film made in Friuli for the Istituto Luce by
Chino Ermacora. All these initiatives demonstrate that the research and the commitment of the Cineteca are not confined
to the mainstream of cinema history, but are directed also to small local productions, to actualities filmed in Friuli, to
amateur films which, with the passage of time and the changes in landscape and customs, acquire a value that extends
beyond a purely cinematic interest. They are often very precious documents, as for instance the 16mm films shot in
Gemona before the earthquake, which now permit us to see, in movement, a city which no longer exists.
At the end of 1997, the Cineteca del Friuli moved to its new premises, the Palazzo Gurisatti, in via Bini, Gemona, which
provides adequate space for the various activities and renders the collections more visible and readily accessible. Since
1999, a further space, the Galleria della Cineteca has served for meetings, video projections, exhibitions and book
presentations.
Finally the Cineteca presents its own programme in the local cinema theatre, under the title
“Appuntamento al buio”, offering films of the past - often shown in newly restored prints - alongside the most
interesting new releases. And every summer, in collaboration with the Centro Espressioni Cinematografiche of Udine,
open-air film shows are arranged in Gemona and the neighbourhood.
L E FONDS IMAGES ANIMÉES
DU M USÉE
D ÉPARTEMENTAL
A LBERT -K AHN
Jeanne Beausoleil & Jocelyne Leclercq-Weiss
Le fonds du Musée Albert-Kahn est composé de 72.000 autochromes sur plaques de verre et de 183.000 mètres de
séquences filmées. C’est un fonds fermé qui regroupe les documents engrangés entre 1908 et 1931 par les opérateurs
engagés par le financier Albert Kahn pour constituer ses Archives de la Planète. Cet “état des lieux” par l’image, projet
qui s’inscrit à plein dans l’œuvre d’Albert Kahn et participe de sa volonté de favoriser la compréhension entre les peuples
et la coopération internationale, était destiné à informer les élites de l’époque des réalités afin de leur permettre d’organiser
un avenir meilleur pour l’humanité toute entière. Si les Archives de la
Planète sont restées inachevées, à la suite de la crise de 1929 et de la 84 Journal of Film Preservation / 62 / 2001
ruine de leur créateur, elles n’en demeurent pas moins uniques. Les images animées du fonds en effet, qui sont des
documents sur support Nitrate 35 mm muet, noir et blanc pour la plupart, hormis quelques sujets en couleur, ont rarement
été montés à l’époque. Quand elles le furent, c’est le positif que l’on monta et non le négatif dont il était issu, ce dernier
étant laissé à l’état brut, sous forme de rushes. Les négatifs originaux (150.000 mètres) constituent la plus grande partie de
la collection qui comprend aussi 10.000 mètres de positifs sur support nitrate issus de certains négatifs ainsi que 20.000
mètres de positifs sur support nitrate uniques qui proviennent de sources variées (Gaumont, Pathé, ECPA, Fox News,
Paramount, Shochiku, etc.). Ces derniers positifs ont été acquis par Albert Kahn pour compléter ses archives avec des
sujets que ses opérateurs n’avaient pas pu filmer.
E TAT
DE CONSERVATION
A ce jour, la totalité des originaux a été sauvegardée sur support moderne. Vingt-sept ans après que les premières
démarches administratives aient été entreprises pour replacer les images du fonds Kahn au sein de l’œuvre qui leur donne
sens, l’état de leur conservation est la suivante : les originaux sur
support nitrate sont conservés dans les blockhaus des Archives du Film du CNC à Bois d’Arcy alors que les Matrices de
sauvegarde, établies en deux exemplaires de 1981 à 1995, sont stockées par les Archives du Film (copie dont le support
est la propriété de l’Etat) et par le Musée Albert-Kahn (copie appartenant au musée - Département des Hauts-de-Seine).
D OCUMENTS EN NOIR
Les travaux de duplication, sur triacétate jusqu’en 1992,
puis sur polyester en raison des menaces pesant sur le
premier support avec le syndrome du vinaigre, ont été
effectués par le laboratoire des Archives du Film et par
différents laboratoires spécialisés qui sous le contrôle
ET BLANC
technique du musée se sont attachés à restituer au mieux
la
qualité des images anciennes du fonds Kahn. Ce résultat aurait été beaucoup plus difficile à obtenir avec des laboratoires
industriels classiques qui ne peuvent avoir une démarche patrimoniale. En 1996 et 1997, nous avons dû faire retirer
certaines de nos matrices qui avaient subi des altérations lors des passages en Télécinéma nécessités par le système
automatisé de consultation des films mis en place dans la Galerie d’expositions du Musée à partir de 1990. Ce système
informatique, appelé “FAKIR” (Fonds Albert Kahn Informatisé pour la Recherche) permet de visionner des copies vidéo
des images animées par le biais d’un robot.
85 Journal of Film Preservation / 62 / 2001
Centrale de conditionnement des documents images du fonds Albert-Kahn (photographe Jean-Paul Gandolfo) ©
Musée Albert-Kahn, Boulogne-Billancourt, France
The Albert Kahn Museum houses a closed collection made between 1908 and 1931 by photographers hired by the
financier Albert Kahn to construct his Archives of the World, with the idealistic goal of increasing understanding and
international cooperation through the propagation of images from all over the world. The archives were never
completed, due to the crisis of 1929 and Kahn’s financial ruin. The unique collection includes 72,000 autochromes on
glass plates and 183,000 metres of film.
All of the originals have now been preserved on a modern base. The nitrate originals are kept in the
Archives of Film of the CNC at Bois d’Arcy, while the protection masters made in two copies, one kept at Bois d’Arcy,
and the other by the Albert Kahn Museum. The motion pictures are 35mm nitrate, with a few in color. The pictures
were rarely shown at the time. It was the positive that was shown, the negatives from which they were made were
left as unedited rushes. The collection also includes 10,000 metres of positives that came from a variety of newsreel
sources, such as Gaumont, Pathe, etc. Duplication was on triacetate until 1992, then on polyester to avoid the
dangers of vinegar syndrome. In 1997, the color films were also safeguarded : the obsolete Keller-Dorian system was
practically impossible to print on modern stock before then. Some of the master positives had to be withdrawn in
the late nineties due to damage done by runs through the Telecine, which was necessary for the automatic system
of film consultation known as
« FAKIR » , which permits the viewing of video copies through a robot system.
The materials are in the process of being moved this year to another building that has been completely renovated
according to the results of scientific studies made for the specific purpose of conservation. (The renovations are
explained in great detail in the article.) Conditions are : 15oC +/- 10oC, and humidity 30% +/- 5%, with air renewal of
three changes per hour. When finished, the building was left vacant for a year of testing its stability. The progress is
slow because all the reels are being inspected, tested, and information entered in the computer system MNEMOS.
Even paper and ink stability have been subject to testing. The work of restoration continues at the same time : new
intertitles and new copies for the color films will be made this year, and dossiers will be established as a record
of this restoration. FAKIR is being replaced with a new version. There is a project for
D OCUMENTS EN COULEUR
En 1997 également, nous avons pu faire sauvegarder les 1.237 mètres d’originaux couleur que nous avions laissés en
suspens jusqu’à cette date. Ces inversibles lenticulaires, tournés avec le procédé Keller- Dorian, étaient pratiquement
impossibles à tirer sur support moderne auparavant.
C ONSERVATION PHYSIQUE
Toutes les matrices de sécurité (marrons et contretypes 35 mm) ont été stockées jusqu’à présent dans un bâtiment du
Musée, dans deux pièces climatisées où sont maintenues une température de 18 ° C et une hygrométrie de 50%. Sur la
base d’une étude menée pendant deux ans par le Musée et des spécialistes de la conservation préventive, un redéploiement
des locaux de conservation dans un bâtiment ancien se trouvant sur le site a été effectué par l’autorité de tutelle du musée,
le Département des Hauts-de-Seine.
Les normes de conservation retenues sont les suivantes : température : 15°C +/ – 1°C, hygrométrie : 30% HR +/ -5%,
renouvellement d’air : 3 volumes/heure.
Le bâtiment existant a été entièrement rénové pour permettre la réalisation de cellules absolument étanches grâce à un
doublage par du foam glass de tous les murs, plafonds et sols. Un expert, choisi par le Musée, a vérifié la composition
chimique des matériaux utilisés par les entreprises (enduits, peintures, revêtements de sol, etc.) et surveillé le contenu des
choix techniques. Une centrale d’air avec contrôle de température de reprise avec batterie chaude et froide et contrôle de
l’hygrométrie de reprise ainsi que la régulation sur poids d’eau permettent d’obtenir des conditions de conservation
parfaitement stables. Le contrôle de la températures et de l’hygrométrie s’effectue par des relevés sur enregistreur Testo,
une mesure toutes les dix minutes. Afin de s’assurer de la fiabilité de ces installations, il a été choisi de les faire fonctionner
à vide pendant un an. Les relevés montrent une exceptionnelle stabilité de la température et de l’hygrométrie dans ce
bâtiment que nous appelons désormais la Nouvelle Conservation.
L’installation est gardée sous alarme nuit et jour avec intervention immédiate de la société responsable de sa bonne marche.
Le déménagement des matrices de sauvegarde dans ce bâtiment va être entrepris courant 2001. Il sera effectué
progressivement car auparavant un contrôle d’état doit être fait pour chacune des bobines existantes, avec utilisation de
tests A-D Strips pour les matrices sur support triacétate, en vue de détecter la présence éventuelle du syndrome du vinaigre.
Pour ce contrôle d’état, nous avons retenu les principaux critères présentés par Bertrand Lavédrine lors du JTS 2000. Ces
critères et l’état des matrices seront entrés au fur et à mesure dans la base informatique MNEMOS qui a été spécialement
conçue pour le Musée. Les images animées, qui sont actuellement conservées dans des boîtes plastique, seront transférées
dans des
86 Journal of Film Preservation / 62 / 2001
boîtes TFS Kodak identifiées par des étiquettes auto-collantes de conservation. La stabilité du papier et de l’adhésif de ces
étiquettes ainsi que de l’encre des marqueurs avec lesquels elles seront remplies a été testée, respectivement par la société
Atlantis et par le CRCDG . (Seuls neuf marqueurs sur les dix-sept testés peuvent être utilisés sans risque d’altération :
Pentel Pen NN 50 rouge, Shashihata Artline 700 vert, rouge, bleu et noir, Shashihata Artline 725 rouge et vert, Stabilo
write all noir et rouge). Les Matrices triacétate seront conditionnées avec des tamis moléculaires et placées dans des sachets
en polypropylène neutre qui seront repliés à l’intérieur de la boîte.
R ESTAURATION
Parallèlement à ce travail de conservation, nous allons continuer les travaux de restauration qui ont été entrepris pour
certains éléments depuis 1999. De nouveaux intertitres sont en ce moment en cours d’établissement pour les inversibles
Keller-Dorian dont de nouvelles copies 35 mm vont être tirées cette année. Un dossier sera établi pour cette restauration
qui est bien évidemment réversible puisqu’elle n’intervient jamais sur les matrices de sauvegarde. Nous nous sommes
également engagés sur la voie de
la restauration numérique en confiant à un artisan trois rushes dont l’un était terriblement dégradé (fortes traces de
décomposition de l’original sur support nitrate). Le Musée lui a communiqué un cahier des charges pour ces travaux qui
devraient être terminés à la fin de l’année et faire également l’objet d’un dossier de Restauration. Nous avons d’ailleurs en
projet la formation d’un agent du musée, d’une part pour assurer la transmission du savoir de l’artisan qui effectue
actuellement le travail, d’autre part pour contrôler toujours la
« mesure » à bien garder dans ce type de travail : surtout ne pas sacrifier à la technique. Aussi, comme en photochimique,
suivant en cela les recommandations de la Charte de Venise, la restauration numérique devra être réversible et respecter «
la patine » des images anciennes.
Les années à venir, nous continuerons à faire restaurer certains de nos documents avec des technologies numériques, tout
en souhaitant vivement que les coûts de ce type de travaux baissent sensiblement.
Autre objectif : la numérisation systématique des images animées en MPEG-2 qui est prévue dans le cadre du projet
FAKIR 2 (Fonds Albert Kahn informatisé pour la recherche), début 2002 qui remplacera bientôt le système existant
(FAKIR 1) devenu obsolète.
digital restoration, following art conservation principles that the originals remain unaltered, and no irreversible
changes are permitted, with provision for transmitting to the future the knowledge of how the restorations were
accomplished. New projects of computerizing the images for research purposes are also in the future.
La colección del Musée Départemental Albert-Kahn comporta 72.000 placas autocromas y 183.000 metros de
secuencias filmadas con película de nitrato de 35 mm. Hasta la fecha, todos los originales han sido copiados a un
soporte nuevo, en dos ejemplares. Los documentos en blanco y negro han sido duplicados entre 1981 y 1995 ; los
documentos en color, hasta 1997. Las matrices de conservación pertenecientes al Museo Departamental de los
Hauts-de- Seine se conservaron bajo condiciones de temperatura e higrometría controladas (18° C y 50 % de HR), y
serán transferidas en el transcurso del año 2001 a locales que disponen de condiciones aún mejores (15°C y 30% HR).
Los trabajos de restauración iniciados en 1999 -fotoquímica para elementos en colores y digitalización para
documentos en blanco y negro- se proseguirán en los próximos años. También se prevé la digitalización de imágenes
en movimiento con la finalidad de facilitar su acceso al público.
87 Journal of Film Preservation / 62 / 2001
Publicaciones Publications
W. K. L. Dickson and Antonia Dickson, History of the Kinetograph, Kinetoscope and Kinetophonograph
En el marco de una exposición
sobre el cine mudo, el MoMA de
Nueva York publicó la réplica de un
importante elemento de su
colección:
History
of
the
Kinetograph,
Kinetoscope and
Kinetophonograph de W.K.L.
Dickson y de su hermana
Antonia, publicado
originalmente en 1895. Se trata
de un texto importante, conocido por los historiadores pero de acceso público limitado. La re-edición del MoMA ha
sido llevada a cabo cuidando el menor detalle, incluyendo las anotaciones a mano y la calidad original de las
ilustraciones. El texto de W.R.L. Dickson es también testimonio de los proyectos realizados y futuros de la Edison
Manufacturing Co. de entonces. Relata las etapas del pasaje del fonógrafo a la invención del “Kinetograph” y evoca
el proyecto del “Kinetophonograph” que debía permitir la toma de imágenes sonorizadas. Este proyecto nunca pasó
de su etapa experimental pero dio origen al célebre kinetoscopio de Edison.
H I STORY
OF
THE
K I NETOPHONOGRAPH
K I NETOGRAPH ,
K I NETOSCOPE
AND
W. K. L. Dickson and Antonia Dickson
Facsimile édité par le Museum of Modern Art, New York, 2000, 55 pages
Le Museum of Modern Art de New York lançait, en octobre 1999, une importante exposition retraçant les richesses de
l’époque du cinéma muet. Parmi les artefacts à l’honneur figuraient dignement deux kinétoscopes grâce auxquels on
pouvait visionner des inédits kinétoscopiques, fraîchement restaurés. Si le MoMA a maintenant remballé en silence tous
ses trésors, il a tout de même profité de l’événement pour publier, à partir de sa collection, une édition fac- similé de
l’History of the Kinetograph, Kinetoscope and Kinetophonograph publiée en 1895 par W. K. L. Dickson et sa soeur
Antonia.
Ce livre est considéré par plusieurs comme étant la première histoire du cinéma. Il avait déjà fait l’objet d’une réédition en
1970, dans la
collection The Literature of Cinema. Une première version du texte était également parue sous forme d’article, en
1894, dans la revue Century Magazine, sous le titre : Edison’s Invention of the Kineto- phonograph. Cette histoire du
kinétographe, si elle constituait véritablement la première histoire du cinéma, ferait remonter celle-ci à 1894.
L’histoire du cinéma précédant ainsi l’invention du cinéma...
ll s’agit certainement d’un texte fondamental, déjà bien connu des historiens, et qui mérite d’être davantage connu du
public. Le texte est abondamment illustré et la qualité d’impression (à l’encre cyan) est impressionnante : le lecteur peut
distinguer les images d’une bande
kinétoscopique des débuts (alors qu’on impressionnait jusqu’à 200 minuscules photographies sur un cylindre).
Pour ceux qui douteraient encore que le cinéma fut sonore avant d’être muet, le livre s’ouvre sur la préface d’Edison
qui, d’entrée de jeu, annonce les couleurs : «In the year 1887, the idea occured to me that it was possible to devise
an instrument that should do for the eye what the phonograph does for the ear, and that by a combination of the
two all motion and sound could be recorded and reproduced simultaneously».
Les six années qui vont suivre seront consacrées à la concrétisation de cette idée. D’un modèle de kinétoscope
cylindrique calqué sur le principe du phonographe, on parviendra finalement à créer une véritable machine à prise
de vues sur bande de film perforé, avec un
88 Journal of Film Preservation / 62 / 2001
mécanisme d’exposition intermittent. Les explications de Dickson sont parfois très difficiles à suivre et permettent de
douter que le système image et son (le fameux kinéto-phonographe) a vraiment fonctionné. En fait, quelques expériences
ont réussi, aux laboratoires de West Orange, mais on n’a jamais pu commercialiser véritablement l’invention.
Le texte s’attarde ensuite sur la description du bâtiment où étaient prises les vues. On y apprend, notamment, que le «
Black Maria » était doté d’un dispositif de pivotement, lui permettant de suivre le mouvement du soleil (comme c’était le
cas dans la salle à dîner du Domus Aurea, le palais de Néron, nous souligne-t-on d’ailleurs avec fierté).
Enfin, on s’intéresse aux sujets filmés. On a droit à de charmantes remarques, (Eugen Sandow était beaucoup plus musclé
que les gladiateurs de Rome), et à d’amusantes anecdotes, comme l’enregistrement raté du Record of a Sneeze, mais la
section la plus impressionnante (photos à l’appui) est sans doute celle consacrée aux sujets microscopiques (ou les origines
scientifiques du film d’horreur).
Le texte, d’une prose flamboyante (qu’on associe habituellement à Antonia plutôt qu’à son frère), fait finalement office
d’oracle. On annonce qu’on ne pourra plus, dans le futur, se passer du Kinetograph : pour la promotion des intérêts du
commerce, pour l’avancement de la science et la révélation de mondes insoupçonnés, pour ses pouvoirs récréatifs et
éducatifs, pour son habilité à immortaliser nos éphémères mais bien-aimées sociétés...
On ne concevait peut-être pas encore le cinéma comme un langage (quoiqu’on ne le vit certainement pas muet), mais on
pouvait déjà prévoir que Babylone serait jalouse!
Stéphanie Côté
THIS FILM (WILL BE)
DANGEROUS ...
At the time of writing (January 2001), Associate Editor Catherine Surowiec and I are putting the final touches to
the long awaited FIAF Nitrate Book – This Film is Dangerous.
We are painfully aware that the book is well overdue. Despite having been originally promised for publication before the
2000 London Congress, and then for the following autumn, it remains unavailable at the start of 2001. We can only
apologise, and admit that we should perhaps have had a more realistic perception of the difficulties of part-time editorship.
Cathy has had other commitments, including editing the Sacile catalogue, while the Imperial War Museum Film and Video
Archive has also had other
This book is a facsimile edition of the first history of the cinema by W.K.L. Dickson and Antonia Dickson. It was
produced from W.K.L. Dickson’s own annotated copy of the book. When History of the Kinetograph, Kinetoscope
and Kinetophonograph was first published in 1895, practical moving pictures were barely two years old, and film
projection was yet to be perfected. Dickson, co-author with his sister Antonia of this book and of the Life and
Inventions of Thomas Alva Edison (1894), had begun to work with Edison in 1883. Within five years, he was leader
of the team at the inventor’s laboratory in West Orange, New Jersey, that was attempting to build “an instrument
which does for the Eye what the phonograph does for the Ear”. The results of their labor were the kinetograph (the
camera used for photographing motion pictures) and the kinetoscope (the means for viewing them). Dickson’s book,
acquired by the Museum of Modern Art in 1940, is a unique document, one that allows the reader to experience the
wonder and promise of the cinema in its infancy.
89 Journal of Film Preservation / 62 / 2001
La publication du FIAF Nitrate Book - This Film is Dangerous attendue depuis quelques mois est prévue pour le
congrès de Rabat. Dans la première partie, le livre rassemble des témoignages de membres honoraires de la FIAF et
de personnalités du cinéma. Ensuite, sont publiées les contributions présentées au symposium de Londres “The Last
Nitrate Picture Show” ainsi que des propositions qui n’ont pas été retenues par manque de temps. Le chapitre suivant
est consacré à des compte-rendus de restaurations et de grands moments de l’époque du nitrate. Le rôle joué par le
feu dans l’histoire du nitrate est relaté dans la section suivante. Enfin, l’éditeur présente sa compilation des aspects
les plus étranges de l’histoire du nitrate ainsi que des anecdotes
d’archivistes qu’il a rassemblées depuis huit ans. Le livre se termine par la description, la bibliographie et la
filmographie de films dans lesquels les qualités propres au nitrate constituent un apport à l’histoire racontée.
La publicación tan esperada del FIAF Nitrate Book - This Film is Dangerous está prevista para el Congreso de Rabat.
En su primera parte, el libro presenta los testimonios de miembros honorarios de la FIAF y personalidades del mundo
del cine. Se publican a continuación las contribuciones presentadas en el simposio de Londres “The Last Nitrate
Picture Show”, así como las ponencias que no se incluyeron en el programa por falta de tiempo. En el capítulo
siguiente se evocan las restauraciones y grandes momentos de la época del nitrato. El rol desempeñado por el fuego
en la historia del nitrato es el tema de la sección siguiente. En la parte final, el editor presenta una recopilación de
los hechos más extraños y las anécdotas de la historia del nitrato que pudo reunir durante los últimos ocho años. El
libro comporta asimismo una descripción, bibliografía y filmografía de obras cinematográficas en las que las
cualidades intrínsecas del nitrato constituyen un aporte a la historia relatada.
priorities to preoccupy its Keeper – not least, in a neat touch of ironic timing, the need to find a new home for some
40,000 reels of nitrate in the Museum’s own collection. (The latter project incidentally called for the burning of 500 reels
of condemned nitrate on 1 August last year, in an experiment to test the design of the new vaults. Was this the only, or at
least the largest, nitrate fire of the year 2000?)
We are now doing our best to ensure that the book will be published in time for the Rabat Congress in April 2001. This
means that the door is now reluctantly but firmly closed to further contributions, however good, and that the editorial
team is busy finalising the text and making a selection from the exciting range of potential illustrations that we have been
offered or which Cathy has tracked down.
What will it look like? The book will open with observations from two of FIAF’s Honorary Members, and a number of
endorsements from important figures in the world of cinema. There will follow a section based on the papers presented
at the symposium “The Last Nitrate Picture Show” during the London Congress, with a further selection of papers that
would have been considered for inclusion had the symposium lasted into a third day. Next will come a few impressions
of life in the film industry in the nitrate era, followed by recollections of some specific nitrate film restorations, and of
archive campaigns from the days when the official line was that “Nitrate can’t wait.” Then will come a section taking note
of the part that fire has played in the history of nitrate, followed by a more light-hearted compilation of some of the
stranger aspects of nitrate history and
legend that have come to my attention during the eight years that I have been pursuing this project, and by a further
selection of anecdotes in archivists’ own words. The book will conclude with three sections that offer a brief look at some
ways in which nitrate film has inspired creative minds: one will actually offer readers of the FIAF book a privileged look
at some original works, while the other two will be a bibliography and filmography of books and films in which the special
characteristics of nitrate film make a contribution to the development of the plot.
With all due modesty, we think it will be a great read. We are only sorry that it has not been ready for you sooner, but it
will have been worth the wait.
Roger Smither
Practical demonstration: the burning of 500 reels of (condemned) nitrate film to test the design for the Imperial War
Museum Film and Video Archive’s new nitrate film vaults.
90 Journal of Film Preservation / 62 / 2001
NO-DO
EL
TIEMPO Y
LA MEMORIA
El arroz con leche del General Franco
“De madrugada bajaba a apagar las luces para acostarme, y siempre me encontraba en la cocina a Franco,
que estaba con la nevera abierta, comiéndoseme los alimentos, ¡sobre todo los postres!... Siempre le pillaba
con la fuente de arroz con leche que se la estaba acabando...”
1
The Spanish newsreel NO-DO was created in 1943 by the Franco government. It was a monopoly until
August 1975, a few months before General Franco’s death, and ceased its activities in 1981. More than 700 hours of
the newsreel belong to Filmoteca Española which has now published, in collaboration with
Cátedra, an extensive essay, complete with a 120’ video, under the title NO-DO. El tiempo y la memoria
(The time and the memory). The essay, written after eight years of research by Spanish film historians Rafael R.
Tranche and Vicente Sánchez- Biosca is a comprehensive analysis of both the history and structure of the Newsreel
and of its contents, with special attention to the verbal and visual language employed during its 40 years of existence.
The NO- DO contains an impressive record of recent Spanish history, not only from a political point of view but also
what has been the official version of the different aspects of the life of the nation (culture, sports, religion,
celebrations, festivities, industry, etc.).
Les actualités espagnoles NO-DO furent créées en 1943 par le gouvernement de Franco, sous le régime de monopole,
jusqu’en août 1975, quelques mois seulement avant la mort du général Franco. Sa production fut interrompue en
1981. Plus de 700 heures d’actualités appartiennent maintenant à la Filmoteca Española qui, avec les Editions
Cátedra a publié une importante étude, complétée par une vidéo de 120 minutes, sous le titre de NO-DO. El tiempo
y la memoria (NO-DO. Le temps et la mémoire).
L’essai est le fruit de huit années de recherches menées par les historiens du cinéma Rafael R. Tranche et Vicente
Sánchez-Biosca; il offre une analyse fouillée de l’histoire, de la structure et du contenu des actualités, et porte une
attention particulière au langage verbal et visuel utilisé pendant les 40 ans de son existence. NO-DO constitue un
témoignage impressionnant de l’histoire espagnole récente, non seulement du point de vue politique, mais aussi sur
ce qu’a été la version officielle de différents aspects de la vie de la Nation (culture, sports, réligion, célébrations,
festivités, industrie, etc.).
Francisco Regueiro
Con ocasión del cincuentenario de la fundación del NO-DO, el noticiario cinematográfico español creado por el régimen
de Franco en 1943, los investigadores Rafael R. Tranche (Universidad Complutense de Madrid) y Vicente Sánchez-Biosca
(Universidad de Valencia) presentaron a la Filmoteca Española un proyecto, cuyo primer esbozo se publicó en el número
inaugural de la colección “Cuadernos de la Filmoteca”2.
De aquel planteamiento inicial hasta el texto que acaba de ver la luz, acompañado por un vídeo de dos horas de imágenes
del NO-DO, han transcurrido siete años y una maduración de conceptos que, junto con los hallazgos que premian toda
investigación, han desembocado en una obra compleja y apasionante.
Creado para garantizar el monopolio estatal de la producción y exhibición de noticiarios en las salas cinematográficas
españolas, el NO-DO subsistiría hasta 1981, habiendo perdido su carácter de monopolio en agosto de 1975, tan sólo
unos meses antes de la muerte de Franco.
Las más de 700 horas de imágenes que, gracias a una moción aprobada por la Comisión de Cultura del Congreso de
Diputados en 1980, quedaron integradas en la entonces Filmoteca Nacional, hoy Filmoteca Española, constituyen una
impresionante suma de documentos sobre la historia reciente de España.
También es de justicia señalar que si el NO-DO al completo puede ser hoy estudiado y consultado se debe, en mucha
parte, al cuidado y el celo de los documentalistas y archiveros del noticiario, siempre conscientes de la necesidad de
conservarlo en su integridad.
La publicación “NO-DO El tiempo y la memoria”, editada en colaboración con Cátedra, además de un análisis
documentado de las circunstancias que motivaron la creación del noticiario, de las características de su organización, de
su relación con los profesionales y la cinematografía del momento y del estudio de sus contenidos, incluye una minuciosa
reflexión sobre la manera nada evidente en que el Noticiario reflejó la esencia del franquismo, con su aparente falta de
“aparato ideológico”-quizás una de las características más peculiares del régimen- y su pretensión, ampliamente lograda,
de informar todos los aspectos de la vida del
91 Journal of Film Preservation / 62 / 2001 Fotogramas del
NO-DO
país. No sólo la política, rol evidente en un estado autárquico, sino la cultura, la religión, las costumbres y, sobre todo, el
lenguaje.
Este elemento, el lenguaje, fue cobrando un peso creciente en el desarrollo de la investigación, con toda su carga simbólica
como discurso codificado del régimen franquista y con las huellas que dejaría en el habla cotidiana, marcando para siempre
toda una serie de expresiones, de asociaciones de adjetivos, con el despliegue de los excesos retóricos que afectarían tanto
al tono como al contenido de las locuciones. Y, por descontado, la interacción de la palabra con el lenguaje de las imágenes,
con la repetición cíclica de contenidos (desfiles, celebraciones, recepciones oficiales, etc.) y la referencia a hechos del
pasado glorioso de la España imperial con la que el régimen franquista quería enlazar suprimiendo o congelando siglos
intermedios de Historia. De ahí la propuesta de Vicente Sánchez- Biosca de que un noticiario como el NO-DO “no es
patrimonio de los historiadores, como tampoco lo es de los historiadores del cine o de los medios de comunicación.
Es un lugar de memoria que reclama ser analizado.”
En un hipotético sumario de contenidos de la memoria colectiva de una nación, en este caso España, el NO-DO
ocuparía sin duda un lugar destacado, pese al rápido ejercicio de olvido –difícil juzgar hasta qué punto saludable- que el
país ha realizado a partir de los años de la Transición.
En vísperas de esta últimas Navidades, concluíamos la edición del vídeo en un estudio de la Ciudad de la Imagen de
Madrid. Rafael R. Tranche, uno de los autores de la obra que estuvo al cargo de la selección audiovisual, decidió optar por
un montaje consecutivo de noticias ordenadas cronológicamente, conservando su locución original y con el único añadido
de un rótulo sobreimpreso que indica el número de la noticia y la fecha. Un dispositivo que no podría ser más simple y
eficaz.
A lo largo de la mañana recibimos la visita de varios de los técnicos del estudio que, movidos (o removidos) por la sintonía
del noticiario y el tono y el contenido de la locución, acudían a ver qué era aquello con lo que estábamos trabajando: la
memoria colectiva existe.
A través de las imágenes del NO-DO , del tratamiento de las noticias, es posible perfilar la evolución política del
franquismo en sus cuarenta años de existencia. Un ejemplo especialmente
revelador –y analizado en profundidad en el libro- es el que proporciona la información sobre la Segunda Guerra Mundial.
El
92 Journal of Film Preservation / 62 / 2001
recién creado NO-DO, sirviéndose de reportajes de distinta procedencia y apoyándose en las locuciones, se vio obligado
a navegar en las difíciles aguas de la identificación ideológica del régimen con las fuerzas del Eje y la necesaria declaración
de neutralidad ante el rumbo que iba tomando el conflicto, con la clara perspectiva de una victoria aliada en el horizonte.
Como dice Sánchez-Biosca, “conviene estudiar el tratamiento que hace NO-DO de la Segunda Guerra Mundial no
como simple ilustración de la actitud franquista, sino más bien como una fuente documental privilegiada que permite
detectar los deslices semanales, mensuales y a medio plazo del estado de opinión en los medios de comunicación
oficiales”.
La fundación de NO-DO estuvo regida, al igual que ocurrió en otros países, por la necesidad de desarrollar una
producción de documentales al servicio de los organismos de propaganda del régimen franquista que sirvieran para
reflejar “los diferentes aspectos de la vida de nuestra patria y que, del modo más ameno y eficaz posible, eduquen e
instruyan a nuestro pueblo, convenzan de su error a los aún posiblemente equivocados y muestren al extranjero las
maravillas de España. 3. La necesidad se
constituye al mismo tiempo en prohibición, ya que una norma establece que “ningún operador cinematográfico
que no pertenezca a la entidad
Noticiarios y Documentales Cinematográficos “NO-DO”, ( ...... ) podrá obtener reportajes cinematográficos bajo
pretexto alguno4.
La lectura del texto y la visión de las imágenes del vídeo -una selección difícil, si se consideran las 700 horas inicialesproduce un efecto de acumulación, negación y perplejidad. Resulta imposible no relacionar el reflejo de la realidad oficial
de entonces con los conocimientos que se tienen de otras realidades simultáneas, no echar en falta todo lo que estaba
siendo escamoteado. Como ejemplo curioso de esta negación sirva el tratamiento que da el NO-DO a las protestas
estudiantiles que también llegaron a España a finales de los sesenta: un breve reportaje de febrero de 1969 sobre una
manifestación contra los disturbios estudiantiles.
Sensación inevitable de tristeza, la de un país que se quedó sin postre –sin su arroz con leche- durante cuatro décadas
y recibió a cambio raciones extraodinarias de desfiles, deportes, consignas políticas, celebraciones religiosas,
curiosidades grotescas, rituales, humoradas escasamente humorísticas, lotería, inauguraciones y actos oficiales.
1
Barbáchano, Carlos, Francisco Regueiro. Filmoteca Española, Madrid, 1989. Se refiere Francisco
Regueiro a la imagen recurrente y obsesiva que presidió la creación del guión de la película Padrenuestro
(1985).
2
Sánchez-Biosca, Vicente y R. Tranche, Rafael, NO-DO: El tiempo y la memoria, Cuadernos de la
Filmoteca, núm. 1, Filmoteca Española, Madrid, 1993.
3
Reglamento para la organización y funcionamiento de la entidad productora, editora y distribuidora
cinematográfica de carácter oficial “NO- DO”. 29 de septiembre de 1942. (Reproducido en la obra)
4
Disposición de la Vicesecretaría de Educación Popular de Falange Española Tradicionalista (F.E.T). y de
las Juntas de Ofensiva Nacional Sindicalista (J.O.N.S.). (Reproducida en la obra)
93 Journal of Film Preservation / 62 / 2001
Fotogramas del NO-DO
Publicaciones recibidas en el Secretariado de la FIAF Publications received at the Secretariat Publications reçues au
Secrétariat
Todavía no es frecuente, al menos en España, que los historiadores recurran al cine y a los noticiarios como fuente
documental. Esta obra, con la distancia que proporciona el paso del tiempo y el rigor de un acercamiento global, constituye
un excelente punto de partida para explorar lo que los autores definen como “el arsenal audiovisual más importante” para
documentar la vida del franquismo – tristemente coincidente con cuatro décadas de nuestra historia reciente-; un recurso
que habrá que aprender a leer e interpretar, más allá de la curiosidad y la nostalgia.
Valeria Ciompi
B OOKS RECEIVED
B RUSSELS
AT S ECRETARIAT
IN
Stars au féminin, naisssance, apogée et décadence du star system, sous la direction de Gian Luca Farinelli et JeanLoup Passek, coll. Quinzexvingt&un, ed. Centre Pompidou, Paris, en collaboration avec la Cineteca di Comune di
Bologna, 2000, 288p.,
ISBN 2-84426-035-7
Carol Reed, Festival Internacional de Cine de San Sebastián and Filmoteca Española, Madrid, 2000, in English and
Spanish, black & white ill., 459p., ISBN 84-86877-26-1
Poster Artist Chen Zi Fu, ed. Council of Cultural Affairs and Chinese Taipei Film Archive, 2000, colour illus., in English,
176p.,
ISBN 957-02-5931-0
Hojas de cine, Testimonios y documentos del nuevo cine latinoamericano, vol. I - II - III, coedición: Secretaría
de Educación Pública, Universidad Autonomia Metropolitana & Fundacion Mexicana de Cineastas, México,
priméra edición, 1988, 586 p., ISBN 968-29- 1922-3 obra completa
Willivaldo Delgadillo & Maribel Limongi, La Mirada Desenterrada, Juárez y El Paso vistos por el cine (1896-1916),
Cuadro Cuadro - Miguel
Angel Berumen Editor, México, 2000, 180 p., ISBN 970-92641-0-9
José Rojas Bez, El cine por dentro, Conceptos fundamentales y debates, Ed. Lupus Inquisitor, México, 2000, 158 p.,
ISBN 968-7507-54-3
Luciano Castillo, Carpentier en el reino de la imagen, Universidad Veracruzana, México, 2000, 102 p., la edición
consta de 500 ejemplares, más sobrantes para reposición.
P ERIODICALS
Iris, revue de théorie de l’image et du son / A journal of theory on image and sound, n°27 - spring
1999: The state of sound studies / Le son au cinéma, état de la recherche, in English and French, 178 p., ISSN 07517033
94 Journal of Film Preservation / 62 / 2001
Iris, revue de théorie de l’image et du son / A journal of theory on image and sound, n°28 - automne 1999: Le cinéma
d’auteur et le statut de l’auteur au cinéma / Author’s cinema and the status of the author in cinema, texts in English
and French, 178 p., ISSN 0751-7033
Cinema 46 (annual publication) 2000: Heimspiele, Zurich, black & white illus., texts in German, 242 p., ISBN 3-90531384-7, ISSN 1010-3627
CinémAction, n°97, 4eme trimestre 2000: Les archives du cinéma et de la télévision, Editions Corlet- Télérama-INA,
sous la direction de Michel Serceau et Philippe Roger, préface de Jean-Noël Jeanneney, textes de B. Amengual, M. Aubert,
V. Rossignol, K. Leboucq, I. Giannattasio, P. Cadars, A. Colleu, M. Barnier, S. Lenk, R. Clementi- Bilinski, L. Mannoni,
D. Païni, D. Sainteville, G. Pessis, F. Lignon, R.
Kromer, B. Martinand, S. Bromberg, S. Bergeon, etc., 282 p., illus. noir & blanc, ISBN 2-85480-996-3
Archivos de la Filmoteca, n°34, Feb. 2000, Institut Valencià de Cinematografia Ricardo Muñoz Suay,
Filmoteca de la Generalitat Valenciana, black & white illus., texts in Spanish, 166p., ISSN 0214- 6606
Archivos de la Filmoteca, n°35, June 2000, Institut Valencià de Cinematografia Ricardo Muñoz Suay,
Filmoteca de la Generalitat Valenciana, black & white illus., texts in Spanish, 248p., ISSN 0214- 6606
Archivos de la Filmoteca, n°36, Oct. 2000, Institut Valencià de Cinematografia Ricardo Muñoz Suay,
Filmoteca de la Generalitat Valenciana, black & white illus., texts in Spanish, 280p., ISSN 0214- 6606 Cuadernos de la
Filmoteca, n°13, 1 año de filmoteca (memoria de actividades 1999), Filmoteca de la Generalitat Valenciana, 71p., ISBN
84-482-2405-1
Gail Morgan Hickman, Las Películas de George Pal, coll. Ediciones Textos Filmoteca 18, Institut
Valencià de Cinematografia Ricardo Muñoz Suay, Valencia, 2000, black & white illus., 224p., ISBN 84- 482-2446-9
Antonio Vallés Copeiro del Villar, Historia de la política de fomento del cine español, 2a edición, coll.
Ediciones Textos Filmoteca 19, Institut Valencià de Cinematografia Ricardo Muñoz Suay, Valencia, 2000, black & white
illus., 317p., ISBN 84-7890-755-6
Rafael Heredero García, La censura del guión en España, coll. Ediciones Textos Filmoteca 20, Institut
Valencià de Cinematografia Ricardo Muñoz Suay, Valencia, 2000, black & white illus., 536p., ISBN 84- 482-2455-8
Post Script: Essays in Film and the Humanities, vol. 19, No2, Winter/Spring 2000: Generation X Films, Texas A&M
University- Commerce, black & white illus., 89p., ISSN 0277-9897
95 Journal of Film Preservation / 62 / 2001
Bookshop / Librairie / Librería
List and order form on the FIAF Website / Liste des publications bulletin de commande sur le site FIAF Lista de
publicaciones y formulario de pedidos en el sitio FIAF: www.fiafnet.org
INFO@FIAFNET.ORG;
T:
+32-2-538 30
65;
F:
+32-2-534 47
74
Periodical Publications Publications périodiques
FIAF International FilmArchive Database Contains the International Index to Film/TV Periodicals offering in-depth
coverage of the world’s foremost film journals. Full citations, abstracts and subject headings for nearly 300.000
records from over 300 titles. Also includes Treasures from the Film Archives. Standing order (2 discs per annum,
internet access).
Networking fees are based on number of concurrent users.
For more detailed information and prices, please contact the editor: pip@fiafnet.org
I NTERNATI ONAL
I NDEX
TO
F I LM P ERI ODI CALS
Published annually since 1972. Comprehensive indexing of the world’s film journals.
Publication annuelle depuis 1972, contenant l’indexation de périodiques sur le cinéma. Standing order:
150.00 €
Single order: 1999, vol. 28 (latest published volume): 180.00 €
Back volumes: 1982, 1983, 1986-1998 (each volume): 148.74 €
GENERAL SUBJECTS
OUVRAGES GÉNÉRAUX
C I N E M A 1900-1906: A N A N A L Y T I C A L S T U D Y
Proceedings of the FIAF Symposium held at Brighton, 1978. Vol. 1 contains tran- scriptions of the papers. Vol. 2 contains
an analytical filmography of 550 films of the period. FIAF 1982, 372p., 43.38 €
THE SLAPSTICK SYMPOSIUM
Dealings and proceedings of the Early American Slapstick Symposium held at the Museum of Modern Art, New York,
May 2- 3, 1985. Edited by Eileen Bowser. FIAF 1988, 121p., 23.55 €
MANUEL
DES ARCHIVES DU
FILM
A HANDBOOK FOR FILM ARCHIVES
Manuel de base sur le fonctionnement d’une archive de films. Edité par Eileen Bowser et John Kuiper.
/Basic manual on the functioning of a film archive. Edited by Eileen Bowser and John Kuiper. FIAF 1980,
151p., illus., 29.50 € (either French or English version)
50
DU
YEARS
OF
FILM ARCHIVES /
FILM 1938-1988
50
ANS D’ARCHIVES
FIAF yearbook published for the 50th anniversary, containing descriptions of its 78 members and observers and a
historical account of its development. / Annuaire de la FIAF publié pour son 50ème anniversaire, contenant une
description de ses 78 membres et observateurs et un compte-rendu historique de son développement. FIAF 1988,
203p., illus., 27.76 €
REDISCOVERING THE
SHOW
ROLE
OF
FILM
ARCHIVES:
TO
PRESERVE
AND
TO
Proceedings of the FIAF Symposium held in Lisboa, 1989. FIAF 1990, 143p., 30.99 €
TECHNICAL
COMMISSION
TECHNIQUE
MANUAL
MANUEL
DE LA
OF
THE FIAF PRESERVATION
TECHNIQUE
DE LA
COMMISSION
FIAF
A user’s manual on practical film and video preservation procedures containing articles in English and French. /
Un manuel sur les procédés pratiques de conservation du film et de la vidéo contenant des articles en français et
en anglais. FIAF 1993, 192p., 66.93 €
or incl.”Physical Characteristics of Early Films as Aid to Identification”, 91.72 €
HANDLING,
FILM
STORAGE
AND
TRANSPORT
OF
THE
CELLULOSE
NITRATE
Guidelines produced with the help of the FIAF Technical Commission. FIAF 1992, 20p., 17.35 €
PRESERVATION AND RESTORATION
AND SOUND
OF
MOVING
IMAGE
A report by the FIAF Technical Commission, covering in 19 chapters, the physical properties of film and sound tape,
their handling and storage, and the equipment used by film archives to ensure their permanent preservation. FIAF 1986,
268p., illus., 43.38 €
PHYSICAL CHARACTERISTICS
AIDS TO
IDENTIFICATION
OF
EARLY
FILMS
AS
by Harold Brown. Documents some features such as camera and printer apertures, edge marks, shape and size of
perforations, trade marks, etc. in relation to a number of early film producing companies. Written for the FIAF
Preservation Commission 1980, 81p., illus, 40.90 €
CATALOGUING
-
DOCUMENTATION
CATALOGAGE
DOCUMENTATION
FILMOGRAPHIC TERMS
GLOSSARY OF
This new version includes terms and indexes in English, French, German, Spanish, Russian, Swedish, Portuguese, Dutch,
Italian, Czech, Hungarian, Bulgarian. Compiled by Jon Gartenberg. FIAF 1989, reprinted in 2000 by the Korean Film
Archive, 149p., 45.00 €
INTERNAT IONAL
INDEX
TO
TELEVISI ON
PERIODICAL
S
Published from 1979 till 1990, containing TV-related periodical indexing data. / Publication annuelle de 1972 jusqu’à
1990, contenant l’indexation de périodiques sur la télévision.
Volumes: 1979-1980, 1981-1982 (each volume): 49.58 €
1983-1986, 1987-1990 (each volume): 123.95 €
SUBJECT
HEADINGS
The lists of subject headings incorporate all the terms used in the International Index to Film and TV
Periodicals, and are intended for use in the documentation departments of the member archives of FIAF.
Subject Headings Film (1996): 123p., 24.79 €
Subject Headings TV (1992): 98p., 22.31 € 96
Journal of Film Preservation / 62 / 2001
INTERNATIONAL
DOCUMENTATION
DIRECTORY
COLLECTIONS
OF
FILM AND TV
A publication of the FIAF Documentation Commission, this 220-page volume describes documentation collections, held
in 125 of the world’s foremost film archives, libraries, and educational institutions in fifty-four countries. The Directory
is organized by country, indexed by city and special collections. Edited by René Beauclair and Nancy Goldman. 1994,
74.37 €
FIAF CLASSIFICATION
FILM AND TELEVISION
SCHEME
FOR LITERATURE
ON
by Michael Moulds. 2d ed. revised and enlarged, ed. by Karen Jones and Michael Moulds. FIAF 1992, 49.58 €
BIBLIOGRAPHY OF
NATIONAL FILMOGRAPHIES
Annotated list of filmographies, journals and other publications. Compiled by D. Gebauer. Edited by H. W. Harrison.
FIAF 1985, 80p., 26.03 €
RÈGLES
DE
CATALOGAGE
DES ARCHIVES DE
FILMS
Version française de “The FIAF Cataloguing Rules of Film Archives” traduite de l’anglais par Eric Loné, AFNOR 1994,
280 p., ISBN 2-12- 484312-5, 32.23 €
REGLAS
DE
FILMICOS
CATALOGACIÓN DE
LA
FIAF PARA ARCHIVOS
Traducción española de “The FIAF Cataloguing Rules of Film Archives” por Jorge Arellano Trejo.
Filmoteca de la UNAM y Archivo General de Puerto Rico, 280 p., ISBN 968-36- 6741-4, 27.27 €
AMERICAN FILM INDEX,
1916-1920
1908-1915. AMERICAN FILM INDEX,
Index to more than 32.000 films produced by more than 1000 companies. “An indispensable tool for people working
with American films before 1920 ” (Paul Spehr). Edited by Einar Lauritzen and Gunar Lundqvist. Volume I: 44.62 €
- VolumeII :49.58€2 Volumes set: 79.33 €
PROGRAMMING
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AUX COLLECTIONS
ACCÈS
COLLECTIONS
Manual for Access to the Collections Special issue of the Journal of Film Preservation, # 55, Dec. 1997: 15 €
THE CATEG ORIES
GAME
LE
JEU
DES CATÉG ORIES
A survey by the FIAF Programming Commission, offering listings of the most important films in various categories such
as film history, film and reality, film and the other arts, national production and works in archives. Covers some 2.250
titles, with several indexes.
Une enquête réalisée par la Commission de Programmation de la FIAF offrant des listes des films les plus importants
dans différentes catégories telles que l’histoire du cinéma, cinéma et réalité, cinéma et autres arts, la production
nationale et le point de vue de l’archive. Comprend 2.250 titres et plusieurs index. FIAF 1995, ISBN 972-619-059-2,
37.18 €
AVAILABLE
AUTRES
NEWSREELS
IN
FROM
OTHER
PUBLISHERS
ÉDITEURS
FILM ARCHIVES
Based on the proceedings of FIAF’s ‘Newsreels Symposium’ held in Mo-i-Rana, Norway, in 1993, this book contains
more than 30 papers on newsreel history, and on the problems and experiences of contributing archives in preserving,
cataloguing and providing access to new film collections. Edited by Roger Smither and Wolfgang Klaue.
ISBN 0-948911-13-1 (UK), ISBN 0-8386- 3696-9 (USA), 224p., illus., 49.58 €
A
HANDBOOK
FOR FILM ARCHIVES
Basic manual on the functioning of a film archive. Edited by Eileen Bowser and John Kuiper, New York, 1991, 200 p.,
29.50 €, ISBN 0-8240-3533-X. Available from Garland Publishing, 1000A Sherman Av. Hamden, Connecticut 06514,
USA
ARCHIVING
TECHNICAL
THE AUDIOVISUAL
SYMPOSIUM
HERITAGE:
Proceedings of the 1987 Technical Symposium held in West Berlin, organised by FIAF, FIAT, & IASA
A
JOINT
30 papers covering the most recent developments in the preservation and conservation of film, video, and sound,
Berlin, 1987, 169 p., DM45. Available from Stiftung Deutsche Kinemathek, Heerstrasse 18-20, 14052 Berlin, Germany
Archiving the Audiovisual Heritage: Third Joint Technical Symposium Proceedings of the 1990 Technical
Symposium held in Ottawa, organised by FIAF, FIAT, & IASA, Ottawa, 1992, 192p., 40 US$. Available from George
Boston, 14 Dulverton Drive, Furtzon, Milton Keynes MK4 1DE, United Kingdom, email: keynes2@aol.com
Image and Sound Archiving and Access: the Challenge of the Third Millenium: 5th Joint Technical Symposium
Proceedings of the 2000 JTS held in Paris, organised by CNC and CST, CD-ROM 17.7 €, book 35.4 €, book & CDRom 53.1€, available from JTS Paris 2000 C/O Archives du Film et du Dépôt légal du CNC, 7bis rue A. Turpault, F78390 Bois d’Arcy, jts2000@cst.fr
IL
DOCUMENTO
AUDIOVISIVIO: TECNICHE E
PER LA
CATALOGAZIONE
METODI
Italian version of “ The FIAF Cataloguing Rules of Film Archives ”. Available from Archivio Audiovisivo del Movimento
Operaio e Democratico, 14 Via F.S. Sprovieri, I-00152 Roma, Italy
97 Journal of Film Preservation / 62 / 2001
in Film Preservation The highest quality and innovation
A CINECO COMPANY
Tel. +31(0)20-568 54 61. Fax +31(0)20-568 54 62.
The Netherlands.
E-mail: info@haghefilm.nl http://www.haghef ilm.nl
Haghefilm
Conservation
B.V.,
Willem
Fenengastraat 39.
Postbus 94764, 1090 GT Amsterdam.
Réseau Européen de Formation pour la Valorisation du Patrimoine Cinématographique Printemps
2001
Paris - “Les documents “non-film” dans le patrimoine cinéma- tographique. Politiques d’acquisition, de gestion
et de traitement” 2 jours d’atelier (29 et 30 mai 2001)
Organisation : Bibliothèque du Film
1. Qu’entend-on aujourd’hui par patrimoine cinématographique? Définition et place du “nonfilm”:
collections ou fonds documentaires?
2. Conditions pour une politique d’acquisition, conditions pour une politique d’exploitation.
3. Catalogage et systèmes d’information: principes de cohérence générale, contraintes propres aux
documents, contraintes liées à l’informatique, et diversité des attentes des publics.
En matière de documents “non-film”, la difficulté est l’écart entre les particularités des documents à respecter, la nécessité
de construire une cohérence de traitement et d’information permettant le bon fonctionnement du système d’ensemble, et
à l’autre bout de la chaîne la diversité des attentes et des types d’interrogation des publics concernés.
A partir d’exemples concrets (indexation des ouvrages et des périodiques, numérisation des images fixes, bases de
données), on identifiera les principales options à partir des paramètres retenus. Seront donc abordées les questions des
normes professionnelles, de la formation des personnels, de l’articulation documentation et informatique, et celles des
scénarios d’interrogation en fonction d’une modélisation des publics.
L’expérience de chacune des institutions concernées sera précieuse en fonction de son histoire et de ses axes de
développement. L’objectif est un partage européen des savoir-faire.
Eté 2001
Bologne - “Le patrimoine cinématographique face aux technologies
numériques (conservation et valorisation)”
2 journées de débats dans le cadre du festival “Il Cinema Ritrovato” (1 et 2 juillet)
Organisation : L’Immagine Ritrovata / Cineteca del
Comune di Bologna
L’image cinématographique semble être en passe de devenir image numérique. Quelle signification faut-il accorder à cette
mutation des supports ? Quelles conséquences techniques et déontologiques risque-t-elle d’entraîner pour les archives du
cinéma? Une véritable sauvegarde des images cinématographiques n’implique-t-elle pas également une sauvegarde de
l’expérience cinématographique, expérience à laquelle les nouvelles formes de consommation individuelle des images en
mouvement semblent renoncer ? Nous assistons actuellement à une prise de conscience grandissante tant de la valeur
culturelle du patrimoine filmique que de sa fragilité physique. Afin de remédier au caractère périssable du film, les
perspectives offertes par les nouvelles technologies sont certes séduisantes, mais présentent aussi un certain nombre de
dangers. S’ils suscitent l’enthousiasme des uns et des autres, les nouveaux médias et leur valeur d’usage pour la conservation
du cinéma n’ont jusqu’ici guère fait l’objet d’analyses approfondies, portant sur tous les aspects qu’une véritable politique
du patrimoine se doit d’appréhender.
Avec le support du Programme MEDIA+ de l'Union européenne
ARCHIMEDIA Cinémathèque royale de Belgique 23, rue Ravenstein B-1000 Bruxelles T:
32.2.507.84.03
F: 32.2.513.12.72 - archimedia@ledoux.be www.ledoux.be/archimedia
European Training
Network for the Promotion of Cinema Heritage
Spring 2001
Paris - “The “non-film” documents within cinematic heritage. Purchase, management and treatment policies”
2-day workshop (29 and 30 May 2001)
ORGANIZATION:
BIBLIOTHÈQUE
DU
FILM
1. What
is meant by cinema heritage today? Definition and the place of
“non- film” or document collections?
2. The
terms for a purchase policy, terms for an exploitation policy.
3. Cataloguing
and information systems: general consistency principles,
specific restrictions for documents, restrictions linked to the computers
and diversity of public expectations”
In the case of “non-film” documents, the difficulty remains in the disparity
between the particularities of the documents to be respected, the need to
build up a treatment and information consistency to allowing a good
running of the general system, and on the other hand, the diversity of the
expectations and questioning from the public concerned.
From concrete examples (indexing of publications and periodicals,
digitalisation of still images, databases), the main options from the retained
parameters will be determined. The questions of professional standards will
be taken up, staff training, structuring of documentation and computing,
and those of interrogation scenarios with regard to a public modelling.
The experience of each institution concerned will be invaluable according to
its own history and its direction of development. The goal is a European
sharing of know-how.
Summer 2001
Bologna – “The Cinema Heritage in the face of digital
technologies (conservation and promotion)”
2 days of debates within the framework of the festival “Il Cinema
Ritrovato”
(1 and 2 July 2001)
ORGANIZATION:
L’IMMAGINE
RITROVATA /
CINETECA DEL
COMUNE
DI
BOLOGNA
Film image seems likely to become a digital one. What meaning must we
attach to this transition? What technical and ethical consequences could it
entail for film archives? Does a real safeguarding of film images not also
imply a safeguarding of film experience, to which new forms of individual
consumption of motion images seem to give up? At the moment, we are
witnessing an ever-growing awareness as much of the cultural value of
heritage as to its physical fragility. To remedy the perishable nature of film,
of course, the opportunities given by new technologies are attractive, but also
present a number of dangers. However much enthusiasm it may arouse in
some people, new media and their user value for film conservation, have not
yet been subjected to detailed analysis concerning all the aspects a real
heritage policy has to fear.
With the support of the MEDIA+ programme of the European Union
ARCHIMEDIA
Cinémathèque royale de Belgique 23, rue Ravenstein B-1000 Bruxelles T:
32.2.507.84.03
F: 32.2.513.12.72 - archimedia@ledoux.be www.ledoux.be/archimedia
The Federation’s main periodical publication in paper format offers a forum
for general and specialised discussion on theoretical and technical aspects of
moving image archival activities.
La principale publication périodique de la Fédération, sous forme d’imprimé,
offre un forum de discussion - aussi bien générale que spécialisée - sur les aspects
théoriques et techniques de l’archivage des images en mouvement.
Published twice a year by FIAF Brussels.
Subscription
4 issues: 45 €
2 issues: 30 €
Publication semestrielle de la FIAF à
Bruxelles. abonnement 4 numéros: 45 € / 2
numéros: 30 €
Back volumes: 15€
For more information: FIAF Rue
Defacqz 1
1000 Brussels - Belgium Tel. +32-2 538 30 65
Fax +32-2 534 47 74 jfp@fiafnet.org www.fiafnet.org
George Eastman ad
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Write an essay explaining what this quotation means to you. Use details and examples in your
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Threats to Validity
History: Refers to the threat that some coincidental event outside the study
caused the observed change; can control by reducing time between measures
The situation in which some specific event occurs during the study, which in
turn affects the results. The specific event is an effect other than the
experimental treatments. To prevent this threat use a control group, shorten
time between testing, select a dependent variable less prone to history
effects, or insulate participants.
Maturation: refers to any naturally occurring process within individuals as a
function of time per se that may cause a change in their performance.
Processes include fatigue, boredom, growth, or intellectual maturation. Time
threat to internal validity in which internal or normal developmental
processes cause the observed change. To prevent this threat, conduct the
study over shorter period of time or use a control group with a comparable
maturation rate.
Testing: refers to a response to the pretest that causes the observed change
in the outcome variable; can reduce by disguising the pretest or dropping it
completely
Instrumentation: when observed changes results from shifts in the way
measures are collected; can be controlled by carefully standardizing and
monitoring the measurement procedures
Regression: Comes from the tendency of scores from unreliable measures to
move toward the mean on retest; affects one group studies that select
subjects for their extreme scores; To prevent avoid the selection on the basis
of extreme scores or create a control group of extreme scores. Can also use
highly reliable measures.
Mortality: subject attrition from pretest to posttest, which casts doubt on
validity of the study; orotection of this threat cannot be orovided bv a control
or random assignment
Selection
Selection Interactions
Four Primary Areas of
Quantitative Research
Measurement - Construct Validity
Sampling- External Validity
Design - Internal Validity
Statistics - Statistical Conclusion Validity
Scales of Measurement
Nominal: categorical measurement. We use this when we group observations
of the same attribute together, for example, putting people into religious
categories (p. 138)
Ordinal: goes one step beyond nominal level in that we not only group like
observations together but also rank them. For example, the question "Would
you rate your social support as very good, satisfactory, or very poor?" asks for
an ordinal judgment. Ordinal measures may use numbers for convenience in
coding answers, for example, very good (3), satisfactory (2), and very poor (1).
However, such numbers for ordinal categories may serve only as handy,
abbreviations or labels, and you could not conclude that someone answering
with a "3" had three times as much social support as someone answering
with a "3" (p318)
Interval: not only group equivalent observations together in ordered
categories, but also consider the interval between adjacent categories as
equal, but no natural zero. Such as temperature, differences make sense, but
ratios do not. You can think of the meaning of interval level measurement if
you think of it as "equal-internal" measurement (p.329)
Ratio: includes all of the characteristics of the interval level plus the
additional one of having a true zero point that allows dividing one measure by
another (p.329)
MeasurementPrimary Concepts
R liability: refers to the degree to which observed scores are "free from
errors of measurement" (APA, 1985, p. 19). We can gauge reliability by the
consistency of scores (p. 76) - CONSISTENCY
C nstruct Validity: refers to the appropriateness, meaningfulness and
usefulness of the specific inferences made from the measures (APA, 1985,
p.9) (p. 76) - we use the score and how will it reflects the construct
SamplingPrimary Concepts
Population: Collection of all elements (3rd grade teachers) to whom survey
results are to be generalized (US). (p. 348).
Sample: Subset of individuals selected from a larger population (p. 350)
Risk
Exposure to the possibility of physical, psychological or social injury as a
result of the study
Coercion Anonymous
Coercing people to participate require the participants cannot be identified
Confidential
Require the confidentiality of the participants
Reliability
Refers to the degree to which observed scores are "free from errors of
measurement" (APA, 1985, p. 19). We can gauge reliability by the
consistency of scores (p. 76). Reliability is a necessary, but NOT sufficient
condition for validity, reliability can also create a tension with validity.
Reliability Coefficient
Test-retest: short time between tests, stability (error due to time)
Alternate forms: forms match better in content and stat properties,
equivalence (error due to form or internal consistency)
Inter-rater: standardizing procedure including training, rubrics and
monitoring. Scorer or rater consistency.
Split-half: reliability is higher when forms are matched in content and stat
properties, internal consistency (consistency across items - content
sampling error, flawed items)
Internal consistency: longer tests: wide range of individual variability on
construct; freedom from distractions, misunderstandings, use of items of
medium difficulty on cognitive measures (two primary methods for increasing
test reliability), consistency across items - content sampling error, flawed
items.
Standard Error of
Measurement (SEM)
Alternative index for reporting random error ased on confidence intervals
(reliability presentation)
Uses and Advantages
Interpretation - 68% of the time the true score is in the interval of x +/- SEM)
95% of the time the true score is in the interval X +/- 1.96*SEM), it is sample
from estimation also important (Reliability, presentation)
Construct Validity
Definition-Construct Validity-"refers to the appropriateness, meaningfulness,
and usefulness of the specific inferences" made from the measures (p.76)
Sampling Methods
Probability sampling: The actual selection of elements from the frame must
give the elements in the frame an equal probability of selection. Random
sampling provides the best way of achieving equal-probability sampling (p.
128). BETTER FOR GENERALIZATIONS; MORE RIGOROUS
Non-probability sampling: includes any method in which the elements have
unequal chances of being selected. One such method, called convenience
sampling, depends on the availability of respondents. In this procedure,
subjects select themselves (p. 129)
External Validity
Generalizability of the study's findings to other populations, places or times
(p. 345)
Design
True Experimental Designs
(Random Assignment to Control/Comparison Group). More desirable.
Control group is randomly assigned. Random selection from population into
sample; random assignment of control/treatments groups.
Quasi-Experimental Designs
(Control/Comparison Group without Random Assignment)
Pre-Experimental Designs (No Control/Comparison Group)
Internal Validity
Truthfulness of the assertion that the observed effect is due to the
independent variables in the study (p. 346). Judge the relationship between
the independent and dependent variables. RELATED TO DESIGN
Descriptive Statistics
Describes the sample. A set of methods to describe data that we have
collected (mean, standard deviation)
Inferential Statistics
Make inferences about population. Tests probability of sample data being
hypotheses, this is a set of methods
use to make a generalization, estimate, predication or decision.
Statistical Conclusion
Validity
Refers to inferences about whether it is reasonable to presume that a
relationship exists between variables (introduction presentation)
FERPA
Family Educational rights and privacy act {1974) is a federal law that
protects the privacy of student education records (ethics presentation)
National Research Act and
Institutional Review Board
{IRB):
Committees established by us federal regulations at each research
institution to protect human subjects from abuses through prior review of
research proposals
APPENDIX I: UNIVERSITY BUDGET CUTS AND AUSTERITY EFFORTS
University
Boston
College
Cuts and Reductions*
Pay freeze on all staff making more than $75,000.1
Unspecified number of unfilled positions eliminated.1
Delayed construction of a science complex.1
Boston
University
51 persons laid off.1
200 positions eliminated.1
Hiring freeze in place since 2008.1
Halt of $130 million in new construction projects.1
250 lay-offs at affiliated BU School of Medicine.1
Brandeis
Over 82 lay-offs.1
Attempted closure of the Rose Art Museum and sale of
its 6,000 pieces. Value approximated at $350 million.1
Dartmouth
Laid off or eliminated 275 staff positions.1
Reduced hours for 107 employees.1
Encouraged 105 early retirements.1
Imposed a 2010 hiring freeze.1
Delay of renovations for 5 years.1
Postponement of new construction.1
Harvard
310 persons laid off.1
530 early retirements.1
103 persons had their hours reduced.1
Suspension of initiative to expand into Allston,**
resulting in postponement of expected jobs, stalled
economic development, idle use of land. The project was
expected to create 14,000-15,000 jobs over the next 50
years.1
275 employees laid-off; others forced to early
retirement.2
Cut hot breakfasts in undergraduate dining halls.2
Cut undergraduate academic advising.2
Cut student employment opportunities at university
libraries.2
Suspended university’s expansion into Allston.2
Cut staff hours at university libraries.2
Cut primary care division at university hospitals.2
Cut shuttle service for students at distant dorms.2
Cut funding for undergraduate dorms.2
Increased section sizes.2
Suspended annual conferences.2
Cancelled program that waived 3rd year tuition for law
students that met community service requirements and
pledged to go into public service.3
2014]
MIT
WHAT WENT WRONG: PRUDENT MANAGEMENT
245
135 staff laid off.1
Unquantified others have had their hours reduced.1
5% budget reductions in 2009; and 10-15% for the
following three years.2
Delayed renovations to undergraduate dorms.2
Salary freeze for highest-compensated faculty.2
Increase in student fees.2
Closed two branches of the library.2
30-50% reduction of admissions
spending.2
outreach
travel
Elimination of eight athletic teams.2
Princeton
Salary freezes for the best-compensated faculty and
staff.2
A freeze on construction.2
Reduction or elimination of scholarly activities not
related to teaching and research, including “certain
outside conferences and colloquia.”2
Reductions in undergraduate research opportunities.2
Reductions in graduate funding in the humanities.2
“Dramatic” reduction in campus civic engagement
funding.2
Stanford
Reductions in outreach-related admissions travel.2
Budget cuts across the university by 12-15%.2
12% reduction in staff size at the Graduate School of
Business including: cuts to travel, food, library services,
marketing activities, printing expenses.2
Hiring freezes for forty-nine ongoing staff searches.2
Leaving faculty vacancies unfilled.2
University layoffs of 350 administrative positions.2
“Dramatic” reductions in undergraduate peer advising.2
31 CFR Ch. X (7–1–20 Edition)
852
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§ 1010.230
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Financial Crimes Enforcement Network, Treasury
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854
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§ 1010.230
Endowment Management
1. What categories of assets are included in your college or university’s endowment? For each
category, please indicate the amount of funds that are:
a. Unrestricted;
b. Permanently restricted by donors;
c. Temporarily restricted by donors;
d. Permanently restricted by your college or university (quasi-endowments); and
e. Temporarily restricted by your college or university.
f. For each restricted asset, please describe the uses for which the funds are restricted and
the amount of the fair market value of the endowment apportioned to each use. How
and why were the restrictions put into place?
June 30, 2015 ($ in millions)
Endowme nt purpose
(1.a.)
Unrestricted
(1.b.)
Permanent
Restricted Donors
(1.c.)
Temporarily
Restricted Donors
(1.d.)
Permanent
Restricted University
(1.e .)
Temporarily
Restricted University
Total
Instruction, research,and professorships
Student financial aid
General operations
Special programs
Libraries
Duke University Health System
Operation and maintenance of plant
Other designated
Interests in perpetual trusts held by others
-
618
717
172
61
24
11
9
115
824
1,014
735
442
139
63
13
11
92
-
147
32
238
122
13
2
235
-
266
53
632
215
10
3
269
-
2,045
1,536
1,485
537
110
24
24
710
824
Totals
-
2,552
2,509
789
1,447
7,297
June 30, 2014 ($ in millions)
Endowme nt purpose
(1.a.)
Unrestricted
(1.b.)
Permanent
Restricted Donors
(1.c.)
Temporarily
Restricted Donors
(1.d.)
Permanent
Restricted University
(1.e .)
Temporarily
Restricted University
Total
Instruction, research,and professorships
Student financial aid
General operations
Special programs
Libraries
Duke University Health System
Operation and maintenance of plant
Other designated
Interests in perpetual trusts held by others
-
592
673
159
61
24
11
7
94
802
1,010
749
441
141
62
13
11
91
-
146
31
233
124
13
2
93
-
276
54
628
215
10
3
268
-
2,025
1,507
1,461
541
109
24
22
546
802
Totals
-
2,423
2,519
642
1,452
7,037
1
June 30, 2013 ($ in millions)
Endowme nt purpose
(1.a.)
Unrestricted
(1.b.)
Permanent
Restricted Donors
(1.c.)
Temporarily
Restricted Donors
(1.d.)
Permanent
Restricted University
(1.e .)
Temporarily
Restricted University
Total
Instruction, research,and professorships
Student financial aid
General operations
Special programs
Libraries
Duke University Health System
Operation and maintenance of plant
Other designated
Interests in perpetual trusts held by others
-
562
631
142
61
23
11
7
84
698
800
582
363
116
51
10
8
69
-
146
30
220
126
13
2
101
-
227
44
511
170
6
2
224
-
1,736
1,288
1,235
472
94
21
19
479
698
Totals
-
2,220
2,000
637
1,184
6,041
For assets permanently restricted by donors, the donor and the university determine the
restrictions subject always to final approval of the university; these restrictions are codified in
a legal agreement between the donor and the university (see response to question 10, below).
Agreements creating restricted permanent endowment funds always provide for an alternative use
if the original restricted purpose no longer exists or is no longer necessary, legal or possible.
Specifically, the standard endowment agreement provides that if the stated purpose of the fund no
longer exists or is no longer necessary, legal or possible, then at the direction of the Duke University
Board of Trustees (the “trustees”), distributions may be used for a substantially similar purpose or for
such purposes as will further the objectives and purposes of the university, giving due consideration
to the original intent of the donor(s).
Assets which are temporarily restricted by donors are representative of the unexpended net
appreciation on assets which are permanently restricted by donors.
For quasi endowment funds, “permanently restricted by your college or university”, the asset
restrictions may arise from a donor designation associated with a restricted gift, not designated
for a donor-established endowment. In most instances, however, the restriction is proposed by
the administration in support of initiatives of the deans. Depending on the level of funding,
each quasi endowment proposal is reviewed either by the Executive Vice President of the
university or by the trustees. For those quasi endowments approved by the Executive Vice
President, the trustees receive a list of these approvals for their review.
It should be noted that quasi-endowment funds held by Duke University (“Duke”), referred to in
question 1.d. above as “permanently” restricted, are not permanently restricted, but are subject to
invasion (use) upon approval by the trustees. Assets which are temporarily restricted by the
university are representative of the unexpended net appreciation on those assets which are
permanently restricted by the university.
2
2. Does your college or university hold any investments that are not included in the
endowment?
Yes.
If so, what are they, and what are their fair market values and basis?
Duke University (the “University”) utilizes investment pools known as the University’s Long
Term Pool (LTP) and the Health System Pool (HSP) to make University and Duke University
Health System, Inc. (a controlled affiliate of Duke University that operates a health system,
referred to herein as “DUHS”) investments in diversified portfolios of debt, equity, and other
investments. The HSP is structured to provide more liquidity for DUHS than is available within
the LTP. The investments outside of Duke’s endowment consist of the following:
($ in millions)
2015
2014
2013
Long Term Pool
2,340
2,093
1,698
Health System Pool
2,201
2,337
2,051
215
368
329
4,756
4,797
4,077
Non-pooled
Non-endowment investments
How are they used to further the educational purpose of the college or university?
The Long Term Pool investments outside of the endowment consist of university reserves,
the income from which is used to provide funding for university operations, including
scholarly research, academic support, student support (need-based grants and scholarships),
and strategic initiatives.
The Health System Pool investments consist of unrestricted working capital, the income off
which is used to support health system operations as well as academic support of the
clinical missions of the university’s School of Medicine.
3. What is your endowment size, as measured by total fair market value of its assets? What
has been the net growth and net investment return on your endowment each year?
($ in millions)
Ye ar
FY15
FY14
FY13
Ending
Market Value
7,297
7,037
6,041
Net
Growth
260
996
486
Investme nt
Re turn
4.4%
20.1%
13.5%
3
Given investment cycles, and to put the investment return of the last three years into context, a
longer term perspective is important; therefore, a 10 year history has been provided below:
($ in millions)
Ye ar
FY15
FY14
FY13
FY12
FY11
FY10
FY09
FY08
FY07
FY06
Ending
Market Value
7,297
7,037
6,041
5,555
5,747
4,824
4,441
6,124
5,910
4,498
Net
Investme nt
Growth
Re turn
260
4.4%
996
20.1%
486
13.5%
(192)
1.0%
924
24.5%
383
13.2%
(1,683)
-24.3%
213
6.2%
1,413
25.6%
672
20.2%
4. How much has your college or university spent each year to manage the endowment, and
how many staff and contractors are employed to manage the endowment? For any fees
paid to nonemployees for investment advice, asset management, or otherwise, please
provide detail on the amounts paid, to whom, and the fee arrangement.
The university’s and DUHS’ investment assets are managed by DUMAC, Inc. (DUMAC).
DUMAC is a separate, nonprofit support corporation organized and controlled by Duke
university that, in addition to managing the investment assets of the university and DUHS, also
manages the investment assets of the Employees’ Retirement Plan of Duke University and The
Duke Endowment (a charitable trust that provides substantial support to the university and also
has other beneficiaries). As of June 30, 2015, the investments managed by DUMAC included:
($ in billions)
Investme nts:
University investments, including endowment
Health System invesments
Employees' Retirement Plan
The Duke endowment
Total Investme nts Managed by DUMAC
$
$
9.0
2.5
1.6
3.4
16.6
The majority of the university’s endowment assets, along with an additional $2.3 billion of
reserves, are invested in the Long Term Pool (LTP).
4
The cost of managing the LTP over the past three years is as follows:
Year
Internal ($M)
2015
2014
2013
11
9
8
External ($M)
Total Cost ($M)
27
24
19
38
33
27
FTEs*
47.5
45.5
44.0
Contractors
80
72
67
*FTEs manage all investment noted above
5. If your endowment is required to file a Form 990 separately from your college or
university’s Form 990, please provide the endowment entity name(s) and Employment
Identification Number.
Duke University’s endowment does not file a separate Form 990.
Endowment Spending and Use
6. How does your college or university determine what percentage of the endowment will be
paid out each year?
The spending policy (payout) is expressed in terms of dollars per unit or share of the university's
Long Term Pool. The endowment spending rate per unit is calculated as 5.5% of the average of
the Long Term Pool unit market values for the previous three calendar year ends, subject to a
10.0% maximum annual growth in per unit spending. The Board of Trustees, through the
Business and Finance Committee, reviews the spending policy annually in the spring. Any
deviation from the policy requires this committee’s approval.
On February 29, 2008, the university’s trustees approved a higher spending rate for permanent
and quasi endowment funds that support financial aid programs. This initiative increased the
resources from endowment funds available for financial aid while retaining the existing spending
rate for endowment funds that support non-financial aid purposes.
The financial aid endowment spending rate per unit is calculated as 5.75% of the average of the
Long Term Pool unit market values for the previous three calendar year ends, subject to a 10.0%
maximum annual growth in per unit spending. The Board of Trustees, through the Business and
Finance Committee, review the spending policy annually in the spring. Any deviation from the
policy requires this committee’s approval.
If any, what has been the target endowment payout as a percentage of the endowment’s
beginning balance each year?
The university does not target a payout percentage of the endowment’s beginning balance.
If that answer differs from the percentage paid out, please explain why.
Not applicable.
5
Please attach any payout policies or guidance.
Attached as Exhibit 1– Duke University Long Term Pool Spending Policy Board of Trustee
Resolution dated May 12, 2000.
Attached as Exhibit 2 – Duke University Spending Policy for Endowment Funds
Supporting Financial Aid Board of Trustee Resolution dated February 29, 2008.
7. Does your college or university have policies regarding spending the endowment principal?
Duke, as a North Carolina nonprofit corporation, is subject to Chapter 36E. of the North Carolina
General Statutes, the statute that governs the management of endowment funds (excluding quasi
endowments) owned by North Carolina charitable institutions. A copy of that statute and an
executive summary is attached as Exhibit 3. That 2009 statute, entitled the Uniform Prudent
Management of Institutional Funds Act (“UPMIFA”), permits (but does not require) charitable
institutions to invade the principal of endowment funds under certain circumstances. When
UPMIFA became law in 2009 permitting principal invasion of endowment funds, the Board of
Trustees considered the possibility of changing its policy which had always prohibited such
invasion. The decision was made to continue the policy of prohibiting principal invasion with
the following limited exception: for undergraduate need-based scholarship endowment funds, a
minimal $1,000 per fund invasion would be made if the market value of those funds were
reduced below book value by the customary trustee-approved spending distributions.
A copy of the trustee resolution dated May 8, 2009 is attached as Exhibit 4.
Has your college or university ever spent endowment principal?
Yes
If so, under what circumstances?
In accordance with the authority of the Board of Trustees resolution attached as Exhibit 4,
Duke spent principal from certain need-based scholarship endowment funds in fiscal year
2009 by up to $1,000 per fund when the market value of those funds was reduced below
book value in order to maintain financial aid for students on endowed scholarships.
6
8. How much and what percentage of the endowment’s beginning balance has your college or
university spent each year? How much and what percentage of the endowment’s return on
investment has your college or university spent each year?
($ in millions)
Ye ar
FY15
FY14
FY13
Endowme nt
Spe nding
307
285
295
% of Beg
Market Value
4.9%
5.3%
6.0%
% of Investme nt
Re turns
115.7%
26.7%
45.3%
Duke’s spending policy is designed to provide stable annual funding amounts by smoothing the
impact of short-term fluctuations in investment market values. Adding an additional seven years
to the schedule above and looking at a full ten year period shows how this has worked.
($ in millions)
Ye ar
FY15
FY14
FY13
FY12
FY11
FY10
FY09
FY08
FY07
FY06
Endowme nt
Spe nding
307
285
295
270
280
246
251
233
149
132
% of Beg
Market Value
4.9%
5.3%
6.0%
5.3%
6.6%
6.3%
4.7%
4.5%
3.9%
4.1%
% of Investme nt
Re turns
115.7%
26.7%
45.3%
651.1%
27.3%
48.3%
-19.0%
74.4%
14.2%
14.7%
The effective spending rate shown above is a blend of the rates for financial aid endowments and
non-financial aid endowments, which have had separate payout rates since fiscal 2008, as
described in our response to question 6 above. The graph below provides the effective spending
rates for financial aid (FA) and non-financial aid (NFA) endowments. Since the market
improvement experienced in fiscal 2011, the effective spending for financial aid endowments has
been higher than the effective spending rate for non-financial aid endowments and the blended
spending rate.
7
Note that in fiscal 2009, the effective spending for financial aid endowments trailed the average;
many of the financial aid endowments had been recently funded as a result of the Financial Aid
Initiative, a three year campaign (2005-2008) to raise $300 million for financial aid. These new
financial aid endowments experienced market declines in 2008-2009 which negated their ability
to distribute income without invading the endowment principal.
In addition to endowment distributions, the University also derives operating support from the $2
billion of invested reserves (referenced in response to question 2 above). This related investment
income provides between $75-$100 million of annual support.
9. What percentage of your endowment does your college or university devote to financial aid
for student tuition? How much for other forms of student financial aid? Please specify the
types of non-tuition aid provided.
($ in millions)
Ye ar
FY15
FY14
FY13
Market Value of
% of Endowme nt
Market Value
Endowme nt
devoted to
of
supporting Financial
Endowme nt
Financial Aid
Aid
7,297
1,536
21.1%
7,037
1,507
21.4%
6,041
1,288
21.3%
Duke University meets full demonstrated financial need for every undergraduate student. For
U.S. citizens and permanent residents, Duke’s admissions policy is “need blind,” which means
that applicants are accepted based on merit, regardless of their ability to pay tuition and fees.
Duke does not make the distinction between tuition and other forms of financial aid; rather,
total cost of attendance is the methodology used to award financial aid. Total cost of
attendance includes: tuition and fees, room, board, books, transportation, and personal
expenses.
8
It is important to note that endowment income is only one source of support for financial aid.
The university provides in approximately $130 million in financial aid each year, over half of
which comes from unrestricted resources. The graph below demonstrates the university’s
commitment to financial aid over the past eight years and the sources of that support.
$128
$129
$130
$120
$100
$72
$109
$86
10. Does your college or university have policies regarding whether it is allowed to accept funds
restricted to a specific purpose?
Yes. Duke will only accept restricted gifts that support the educational, research, and health
care purposes of the institution while preserving the integrity of those purposes. For example,
the educational purpose of Duke is supported by over 2,000 permanent endowment funds
restricted to student financial aid.
Has your college or university ever declined a donation because it was restricted to a
certain purpose?
Yes
If so, please describe those specific scenarios in which your school rejected a donation.
Rejected because purpose of gift not a priority for Duke. Certain gifts may propose support for
one of the core purposes of Duke; however, if the proposed gift would support a program or
effort that is not a priority for the academic leadership of Duke, then the donor would be asked
9
to change the proposed restriction to better fit Duke’s academic plans. If the donor refuses,
then the proposed gift would be declined. For example, a donor may propose an endowment
gift to support a new research program that would not fit into either the current or proposed
academic structure of Duke.
Rejected because of attempted donor control. In some instances, donors propose a gift that
would normally be accepted by the university, except that the donors impose restrictions that
would give the donors control over certain aspects of the gift and its expenditure. Preservation
of the academic integrity of Duke requires that a donor retain no control over the gift and its
use once the gift is made. That is, the restrictions on the purpose of the gift are carefully
reviewed as noted above, and further, any attempted post-gift restrictions on the use of the gift
are also carefully reviewed.
For example, in one case, a multi-million dollar gift was proposed to establish an institute
including endowed professorships at Duke in a certain academic discipline, and the proposed
academic discipline was acceptable to the university. At the same time, the donor proposed
that the donor (and others to be appointed by the donor) would have a role on a committee that
would review proposed faculty members for the proposed institute. The university determined
that any role of the donor in the review of faculty members was unacceptable and the gift was
therefore declined.
In another case, a donor proposed a multi-million dollar gift to endow a scholarship fund for
students in one of Duke’s schools. The purpose of the fund was acceptable; however, the
donor insisted that the committee that selected the scholarship recipients would include the
donor. This proposed control by the donor over the use of the gift by selecting scholarship
recipients was determined to be unacceptable and the gift was declined.
11. How much and what percentage of your college or university’s endowment is invested in
real property (not including REITs or other publicly-traded securities)?
Less than one-tenth of a percent (0.1%) of the university’s endowment is invested in real
property.
10
Please list and describe your college or university’s real estate holdings, including real
estate held by the college or university, the endowment, and all related parties.
Building Use
# of Buildings
Hospital / Clinical / Medical Care
57
Academic
77
Research
42
Housing / Residential
98
Administrative
56
Athletics / Fitness
23
Parking
11
Auxiliary
16
Utilities
10
Miscellaneous Support
18
Net SF
5,036,941
3,177,915
2,410,441
1,719,829
1,060,740
681,751
167,421
136,062
121,569
86,298
Totals
14,598,967
408
Net Book
Value
($ millions)
529
121
118
7
1,099
118
16
89
362
247
2,707
If the college or university has made any Payments in Lieu of Taxes, please provide the date
and amount of the payment.
The university does not make Payments in Lieu of Taxes. It does, however, provide voluntary
support to regional and local governments for a number of purposes including public
transportation and fire protection.
The table below shows the support provided to Durham County over the past three years.
FY15
Fire protection
$
Durham Area Transit Authority
Total
$
FY14
FY13
400,000 $
400,000 $
400,000
350,000
350,000
350,000
750,000 $
750,000 $
750,000
In addition, the university leases over 4 million square feet of space in various counties within
North Carolina and indirectly pays approximately $8 million in property taxes annually. This
space is used to further our missions of instruction, research, and patient care and could be
exempted from taxation; however, the university pays the taxes in support of the local
government.
Lastly, Duke contributed $7.5 million toward the construction of the Duke Performing Arts
Center (DPAC), which has further enhanced the downtown Durham economy.
11
Donations
12. Does your college or university grant naming rights to donors based on certain donation
levels? If so, please describe the naming rights program, including how much and what
percentage of any naming rights donations your college or university has used for tuition
assistance.
Duke does not have a formal naming rights program; however, there is Board of Trustee
approved policy, attached as Exhibit 5. Efforts to raise funds to support Duke and its charitable
endeavors are enhanced by donor recognition. The name of the university was changed from
Trinity College to Duke University to recognize the contributions of the Duke family to create
Duke University.
Donors to Duke are currently recognized:
• as members of certain giving societies (for example, the “Barrister Donor Society”
recognizes annual giving at $2,500 and above to support the School of Law),
• by listing in various Duke publications as giving at certain levels,
• by having endowment funds named for the donors (for example, a permanent scholarship
endowment fund may be named for the donor(s) for a minimum gift of $100,000); a
permanent endowment fund for a full professor may be named for the donor(s) for a
minimum gift of $2,500,000),
• by naming new buildings and spaces within buildings for donors (for example, a new
building may be named for the donor(s) if the gift is equal to one-half of the estimated
total cost of construction),
• by naming renovated buildings and spaces within for donors, and
• by naming a constituent part of the university for donors (for example, an institute,
laboratory, or school).
If so, please describe the naming rights program, including how much and what
percentage of any naming rights donations your college or university has used for
tuition assistance.
Donors establishing endowments select the purpose of the endowment (subject to university
approval) and may choose the endowment name, which may include the donor’s name
and/or the purpose of the fund. The table below shows the total gifts given to permanent
endowment funds supporting student financial aid and the percentage those gifts represent
of total endowment gifts for the fiscal years ended June 30, 2015, 2014, and 2013.
For Endowment-Related ($ in millions)
Total Endowment Gifts
Total Financial Aid Endowment Gifts
% of Endowment Gifts Directed to Financial Aid
FY15
106
43
40%
FY14
97
40
41%
FY13
76
32
42%
12
Conflicts of Interest
13. What conflict of interest policies does your college or university have in place to address
financial interest in endowment investments (including potential conflicts of interest among
and between governing boards, trustees, executives, internal employees tasked with
overseeing the endowment, and external asset managers of endowment assets?)
Duke University has adopted a conflict of interest (“COI”) policy for its Board of Trustees
(attached as Exhibit 6) and a COI policy for officers and employees with administrative
responsibilities (attached as Exhibit 7).
The Duke University Board of Trustees does not make investment decisions. The management
of Duke’s investment assets, including the assets of permanent endowment funds, is entrusted to
DUMAC, Inc. (“DUMAC”), a controlled affiliate of Duke University. The COI policy of
DUMAC is attached as Exhibit 8.
How do you vet board members’ potential conflicts of interest?
Members of the governing board of DUMAC (the DUMAC Board of Directors) are required to
comply with the DUMAC COI policy and are required to file an Annual Statement of
Compliance with the Chief Compliance Officer (“CCO”) of DUMAC. The CCO of DUMAC
administers this annual disclosure process and reviews the disclosures.
What are your policies if a conflict arises with a member of the board of trustees?
The Audit Compliance and Risk Management Committee of DUMAC (chaired by a member of
the Board of Directors) reviews any potential conflicts disclosed and receives recommendations
by the CCO regarding the implementation of conflict management plans when applicable. The
COI policy of DUMAC, and a conflict management plan, requires that the subject Director
“…refrain from participation in, discussion of, or voting on the matter and should take no action
which would create the opportunity for private benefit until the conflict is resolved.”
Date of request:
Name of requestor:
Fund code associated with naming:
Location of the space to
be
named:•
13
Date of request:
Name of requestor:
FACIUTY INFORMATION
Fund code associated with naming:
Department:
.lc._h_o_o_se_o_n_e
_.
Location of the facility (building or portion of building) to be named:
Size of space in sq ft:
Please state the Justification for the facility's naming:
Financial commitment:I..
Paid to date:
DONOR INFORlVb\l'ION
Donor's full name:
Spouse's full name:
DADD Entity ID:
DADD Entity ID:
Duke degree (if applicable):
Duke alumni children (if applicable):
RECOGNITION INFORMATION
Individuals to be honored, if not the same
as the donor:
Exact language of named space as it
will appear on plaque or other form of
recognition:
Planned announcement of naming:
Other information that will be useful
to the committee in reviewing the
naming request (e.g. awards, special
recognitions):
I
Note: New facilities or parts of facilities may be named for an individual who has donated at least 50% of the cost of the facility. Existing
buildings or parts of buildings rnay be nan,ed vvhen a donor's gift covers 50% of the cost for major renovations. Existing unnamed buildings
or parts of buildings may be named for a substantial gift to the program housed within. What constitutes "substantial" is determined on
an individual basis as recommended to the President by one of the senior officers. No facility or portion of a facility will be named for any
member of the faculty or administration (except the President) until that person has been retired for 1O years or deceased for 5.
Required field
Last uodated: 7/2014
CONFLICT OF INTEREST POLICY FOR TRUSTEES
AND MEMBERS OF TRUSTEE COMMITTEES OF AN INSTITUTIONAL FUNDS ACT
association with the University, whether as suppliers of goods or services, employees,
Seeking
faculty, students, or others, the trustee or committee member shall disclose the material facts
pertaining to such interest and to the matter requiring the decision to the Board or the applicable
committee, and such interest shall be noted in the minutes. The trustee or committee member shall
act in accordance with his/her Conflict Management Plan, and if the trustee or committee member
does not have a Conflict Management Plan in effect, then he/she shall withdraw from the meeting
unless requested to remain by the presiding officer, and shall abstain from voting when such a matter
is before the Board or a committee for authorization, approval, or ratification, and those actions
shall also be recorded in the minutes.
2. Annually, each trustee and each committee member shall be furnished an information and
interest disclosure statement by the appropriate University officer together with a copy of this
resolution. Annually, and at any point throughout the year if there are additions or changes
to a disclosure statement on file, each trustee and each committee member shall disclose any
possible duality or conflict of interest which might affect Duke University. This information
shall be filed with the Office of the University Secretary to be reviewed by the University
Secretary and University Counsel. The information so disclosed shall be held in confidence
except as it may be determined by the University Secretary and University Counsel that it is
in the best interest of the University to disclose the information to the Executive Committee
of the Board of Trustees.
3. The following definitions apply to this policy: (a) A family member or family relationship
includes an individual's spouse, spousal equivalent, ancestors, children, grandchildren, greatgrandchildren, siblings (whether by whole or half-blood), and the spouses of children,
grandchildren and great-grandchildren and siblings. (b) "Material" as applied to gifts, favors
or hospitality is defined as having a fair market value of twenty-five dollars or more.
AND BE IT FUTHER RESOLVED, that the appropriate officers of the University are hereby
authorized and directed to take such further actions as they shall deem necessary and appropriate,
and as may be required to fully implement this resolution; and
FURTHER RESOLVED, that this resolution shall be effective July 1, 2013 and replaces the
policy adopted by this Board of Trustees in October of2008; and
FURTHER RESOLVED, that any action which has heretofore been taken by any of the Board of
Trustees or the officers of the University in connection with the foregoing resolution or the
matters contemplated thereby is hereby ratified, approved and confirmed.
DUMAC, INC.
Board of Directors
STATEMENT ON CONFLICT OF INTEREST
DUMAC, Inc. ("DUMAC" or the "Company") is committed to maintaining the
highest legal and ethical standards in the conduct of its business and to protecting the
integrity and reputation of DUMAC and its Directors and employees. DUMAC seeks to
avoid conflicts of interest and the appearance thereof in managing the investments of
its client Duke University (which includes Duke University Health System and all other
University affiliates, including the Employees' Retirement Plan of Duke University) and
The Duke Endowment ("TDE"). At the same time DUMAC seeks to attract and retain as
Directors, knowledgeable and active investors and investment managers, in order to
further its clients' investment interests. Accordingly, on occasion conflicts will arise and
must be addressed.
A Director is considered to have a conflict of interest when that Director or any
family member or associate (to the Director's knowledge) (a) has an existing or potential
financial or other interest which impairs or might appear to impair that Director's
independent objectivity of judgment in serving DUMAC, or (b) may derive a financial or
other material benefit from the use of information identified by DUMAC as confidential
that is gained through the course of DUMAC service and would not have been available
to him or her but for that service.
In the circumstances where an interest of a Director of DUMAC poses a possible
conflict with the Director's responsibility to the Company, the Director shall disclose
such conflict to the Chair of DUMAC or a designee before any action is taken by the
Board of DUMAC or the Director (or his family member or associate) on the matter to
which the conflict relates.
After disclosure, the Director should refrain from participation in, discussion of,
or voting on the matter and should take no action which would create the opportunity
for private benefit until the conflict is resolved. In some cases it may be determined,
after disclosure, that DUMAC's interest would be best served by the Director's
participation in a decision despite the conflict or potential conflict. In such a case,
participation is permitted with full disclosure of the conflict or potential conflict to all
Board members participating in the decision. Similarly, it may be determined after
disclosure that outside action will be permitted because it is of no detriment to the
interest of DUMAC, Duke University, or TDE. In all cases, a record will be made of the
disclosure, resolution, and non-participation, participation, or other action by the
individual.
During a Director's term of service on the DUMAC Board, DUMAC shall not
normally invest in the Director's employer or the employer's investment products. This
does not in any form preclude divestment. Prior investment in a prospective Director's
employer or employer's products shall not preclude membership on the DUMAC Board
nor shall service on the DUMAC Board preclude such investment six months or more
subsequent to the Director's term of service.
From time to time DUMAC may enter into investment transactions on behalf of
the Uniyersity with an investment bank, a commercial bank, or other financial institution
regularly engaging in such transactions. If a specific transaction is proposed in which
DUMAC would cause one of its clients to enter into a transaction with an institution for
which a potential conflict of interest (as defined in Appendix 1 to this policy) exists, the
decision as to whether or not to enter into the transaction with that firm will be made
by two or more disinterested members of the Board or appropriate committee of the
Board of DUMAC after having been informed by the officers or employees of DUMAC of
the existence and nature of the conflict of interest. The officers or employees of
DUMAC shall also have made an independent determination of the fairness of the
transaction to the client, by solicitation of competitive bids or otherwise, and that
information shall be provided to the Board or committee to make its decision.
Conflict of interest issues will normally not affect Directors in the purchase and
sale of securities by outside managers. Typically, Board members will not have
knowledge of specific transactions within the externally managed portfolios overseen by
DUMAC. Should a Board member become aware of such a transaction through his or
her DUMAC activities, that Director should refrain from any purchase or sale of the
security until seven days after the purchase or sale by the DUMAC portfolio manager has
been completed.
Each year, Board members will submit a signed copy of the attached Statement
of Compliance.
DUMAC, INC.
Board of Directors
STATEMENT ON CONFLICT OF INTEREST
APPENDIX 1
Institutions for Which a Potential Conflict of Interest May Exist - Any institution which
has a person as a director, officer, or other employee exercising significant influence
over the institution or who has 35% or more ownership who:
•
•
•
•
•
•
•
serves or has served within the last five years as a member of the DUMAC
Board of Directors,
is the spouse or domestic partner, lineal descendant or sibling of such a
current or former DUMAC Board of Directors member,
serves or has served within the last five years as a senior officer of Duke
University or a member of the Duke University Board of Trustees,
serves or has served within the last five years as a senior officer or a
member of the Board of Directors of Duke University Health System or other
University affiliate,
serves or has served within the last five years as a senior officer of The Duke
Endowment or a member of The Duke Endowment Board of Trustees,
is or has been in the last five years an employee of DUMAC, or
is the spouse or dom stic part er, lineal descendant or sibling of such a
current or former DUMAC employee.
ANNUAL STATEMENT OF COMPLIANCE
I have reviewed the Policy Statement on Conflict of Interest for Directors of DUMAC, Inc.
("DUMAC"). To the best of my knowledge, I have complied with the Policy during the
past twelve months, and I will use my best efforts to comply with the Policy in the
future. If a possible conflict arises in my responsibilities to DUMAC, I recognize that I
have the obligation to call it to the attention of the appropriate individual as set forth in
the Policy and to abstain from any participation in the matter unless it is determined
after full disclosure that my participation is permitted.
Listed below are the institutions for which a potential conflict of interest may exist (as
defined in Appendix 1) as a consequence of my participation as a DUMAC Board
member.
Listed below are investments or investment manager relationships that I have in
common with DUMAC [both personal investments (designated with a P) and
investments made by my firm or employer (designated with an F) where I played an
active role in the decision process].
Name
Signature
Date
Approved by DUMAC BOD 5/7/2015
DUMAC, INC. COMPLIANCE AND CONFLICT OF INTEREST POLICY
This policy reinforces the fiduciary principles that govern the conduct of DUMAC, Inc.
("DUMAC") and its employees and applies to all DUMAC employees, temporary staff and consultants.
I.
General Principles
Without prior approval, you may not participate in or attempt to influence DUMAC business
transactions if you or, to your knowledge, any member of your household, have an actual or potential
conflict of interest in the transaction. The term "member of your household" includes: (i) a spouse or
domestic partner (unless they do not live in the same household as you and you do not contribute to
their support); (ii) children under the age of 18; (iii) children 18 or older (unless they do not live in the
same household as you and you do not contribute to their support); and (iv) any of the following people
who live in your household: stepchildren, grandchildren, parents, stepparents, grandparents, brothers,
sisters, parents-in-law, sons-in-law, daughters-in-law, brothers-in-law and sisters-in-law, including
adoptive relationships.
Regarding approvals related to your activities, the DUMAC chief compliance officer (the "CCO"),
or his or her designee ("designee"), is the authority. Regarding approvals related to the activities of
DUMAC's chief investment officer's (the "CIO"), executive vice president, and CCO, the chair of the
DUMAC Audit Compliance and Risk Management Committee (the "ACRMC") is the authority.
You may not disclose non-public information regarding DUMAC, Duke University, the Duke
University Employees' Retirement Plan (the "Retirement Plan") or The Duke Endowment and each of
their respective affiliates (collectively, the "Duke Entities"), except as necessary in your conduct of
DUMAC's business. Non-public information includes information concerning securities transactions and
potential securities transactions by any Duke Entity, and information concerning vendors, suppliers or
other business counterparties of the Duke Entities.
II.
Personal Trading
We do not wish to restrict you from participating in the investment markets. However, as an
investment advisor and fiduciary, we require that you maintain the highest standards of professional
ethics regarding personal securities trading. DUMAC will actively monitor your security transactions to
guard against situations that could create a conflict of interest or cause misuse of non-public
information.
A.
Annual Holdings Reports
You must report your securities holdings on a form provided by DUMAC promptly after starting at
DUMAC and at least annually thereafter.
B.
Quarterly Transaction Reports
You must submit or direct your broker(s) to submit quarterly trade confirmations and/or account
statements no later than 30 days after the calendar quarter detailing all of your and any members of
your household transactions in reportable securities during that quarter. If the statements and
confirmations do not contain all of the information required by DUMAC, you must submit a written
report that contains the missing information.
Ill.
Prohibition on Certain Personal Security Transactions
You may not use DUMAC non-public information for personal gain. You may not trade in a
security for your own account while taking advantage of knowledge of pending orders for the Duke
Entities.
1
Approved by DUMAC BOD 5/7/2015
DUMAC, INC. COMPLIANCE AND CONFLICT OF INTEREST POLICY
A.
Do Not Trade List
DUMAC will establish a confidential restricted list that contains securities you may not trade in
(the "Do Not Trade List"). It is your responsibility to consult the Do Not Trade List before making a
personal security trade. If you violate this policy, DUMAC may elect to impose any one or more the
following penalties:
•
•
•
•
•
•
issue you a written warning;
prohibit you from personal trading during business hours;
require you to obtain pre-clearance before personal trading;
require you to disgorge all profits from the illegal trade to a not-for-profit organization selected
by the ACRMC;
suspend your employment (with or without pay); or
terminate your employment.
B.
Investment Partnerships
You must obtain the prior approval of the CCO or his or her designee, before directly or
indirectly acquiring a beneficial ownership interest in any investment fund (other than a public open-end
mutual fund or exchange-traded fund).
IV.
Prohibition on Insider Trading
You may not trade, either personally or on behalf of any of the Duke Entities, on the basis of
"material nonpublic information"1 or communicate "material nonpublic information" to others. This
conduct is frequently referred to as "insider trading." The "insider trading" doctrine under U.S. federal
securities laws prohibits any person from knowingly or recklessly breaching a duty owed by that person
by:
•
•
•
trading while in possession of material nonpublic information,
communicating ("tipping") material nonpublic information to others, or
providing substantial assistance to someone engaged in any of the above activities.
Penalties for trading on or communicating material nonpublic information in violation of the law are
severe, both for individuals involved in such unlawful conduct and their employers. A person may be
subject to some or all of the penalties below even if he or she did not benefit from the violation.
Penalties include:
•
•
•
•
•
civil injunctions;
disgorgement of profits;
jail sentences;
substantial fines for the person who committed the violation of up to three times the profit
gained or loss avoided, whether the person actually benefited or not; and
fines for the employer or other "controlling person".
The mere appearance of insider trading may cause a government investigation, unwanted public
attention, and criticism. Such attention based on actual or perceived misuse of both material and
nonpublic information may cause considerable reputational damage to DUMAC. Even absent legal
action, violations of insider trading prohibitions may cause termination of your employment and referral
to the authorities.
1
See Appendix A for a discussion on material nonpublic information.
2
Approved by DUMAC BOD 5/7/2015
DUMAC, INC. COMPLIANCE AND CONFLICT OF INTEREST POLICY
If you possess any information you believe is "material" and "nonpublic" (as described above), you
must disclose this information to the CCO, or his or her designee, immediately.
A.
Material Nonpublic Information Not Sought
DUMAC does not seek to obtain material nonpublic information and you should not seek
information which could cause someone to breach a confidentiality or fiduciary obligation. Information
you obtain through ordinary investment analysis is presumed not to involve a breach of confidence, but
if you have any doubt about the circumstances or substance of a communication, promptly discuss the
matter with the CCO, or his or her designee, before taking action.
If you are presented with the opportunity to learn privileged and confidential information to
assist in your investment analysis, you must clear receipt of that information (and signing any requisite
confidentiality agreement) with the CCO, or his or her designee, prior to obtaining the information. If
prior approval from the CCO, or his or her designee, is not possible and you need to receive the
information forDUMAC business purposes, you may receive such information provided you promptly
notify the CCO, or his or her designee.
B.
Relationship with Duke University and its Officials
In assessing whether DUMAC has material nonpublic information that precludes trading in
particular securities, information held by an official of Duke University that is not communicated to
DUMAC, is generally disregarded. Notwithstanding that DUMAC is controlled by Duke University and
invests on Duke University1s behalf, DUMAC may disregard such information, because DUMAC maintains
separate premises, personnel, functions and processes, and refrains from communicating or receiving
such information to or from Duke University. Maintaining this separation between DUMAC and Duke
University regarding investment decisions is critical to our performance of our duties to Duke University.
C.
Advance Notice of Distributions
Specific, advance information regarding the timing and amount of an immediately pending
distribution of publicly-traded securities may be material nonpublic information. If you learn of such
information contact the CCO to discuss whether the company should be included on the Do Not Trade
List.
V.
Conflicts Of Interest
DUMAC requires the annual disclosure, review, and, where necessary, management of
relationships that might be a conflict of interest.
You may serve on a board of directors of a company if there is no conflict with DUMAC or the
Duke Entities. You must obtain prior approval before accepting a board seat (or a comparable function)
with a financial company.
Employees may not conduct any outside business or other remunerative activities during your
employment without prior written approval.
VI.
Gifts and Entertainment
All gifts made to you and/or members of your household from persons that do business with
DUMAC must be approved in advance of acceptance. The term "gift" includes anything of value for
which you are not required to pay the retail or customary costs and includes meals or refreshments
valued at greater than $150, goods, services, tickets to entertainment or sporting events, using a
residence or vacation home, or other accommodations.
3
Approved by DUMAC BOD 5/7/2015
DUMAC, INC. COMPLIANCE AND CONFLICT OF INTEREST POLICY
Payment of reasonable expenses, such as travel, hotel and meals, by third parties for seminars,
conferences or annual meeting participation is acceptable provided that such payment is offered to all
participants in the event or meeting on a similar basis.
The restrictions in this policy do not apply to gifts based on an obvious family relationship (such
as your parents, spouse or children) or close personal friendships, where the circumstances clarify that it
is the relationship, rather than DUMAC's business, that is the motivating factor.
VII.
Complaints/Concerns
If you have concerns about a possible breach of this policy, bring the matter promptly to the
attention of the compliance officers as designated in the DUMAC, Inc. Compliance Procedures.
All complaints may be made anonymously and in a confidential manner. If you feel that a
previously submitted complaint was not adequately addressed, you may contact the chair of the
ACRMC. Contact details are identified in the DUMAC, Inc. Compliance Procedures.
VIII.
No Retaliation
You will not be subject to any adverse action for reporting what you honestly believe is a
compliance violation. However, if we determine that you purposely contrived, exaggerated, or
otherwise distorted a report of wrongdoing - whether to protect yourself or to hurt someone else - you
will NOT be protected under the policy.
IX.
Disciplinary Action
We have all remedies available at law or in equity if you breach this policy.
4
Approved by DUMAC BOD 5/7/2015
DUMAC, INC. COMPLIANCE AND CONFLICT OF INTEREST POLICY
ANNEX 1
DUMAC, Inc. Compliance and Conflict of Interest Policy
Initial Employee Certification
I have reviewed the Compliance and Conflict of Interest Policy ("Policy") and Compliance Procedures
("Procedures") for officers and staff of DUMAC, Inc. and will comply with the Policy and Procedures.
If a possible conflict arises in my responsibilities to DUMAC, I recognize that I have the obligation to call
it to the attention of the appropriate individual(s) as set forth in the DUMAC, Inc. Procedures and to
abstain from any participation in the matter unless it is determined after full disclosure that my
participation is permitted.
I understand that I am required to consult the Do Not Trade List prior to placing a personal security
trade. If I violate this Policy or Procedures, I understand DUMAC may elect to impose any one or more
the following penalties:
•
issue me a written warning;
•
prohibit me from personal trading during business hours;
•
require me to obtain pre-clearance before personal trading;
•
require me to disgorge all profits from the illegal trade to a not-for-profit organization selected
by the ACRMC;
•
suspend my employment (with or without pay); or
•
terminate my employment.
Employee Signature
Print Name
Dated:
5
Approved by DUMAC BOD 5/7/2015
DUMAC, INC. COMPLIANCE AND CONFLICT OF INTEREST POLICY
ANNEX2
DUMAC, Inc. Compliance and Conflict of Interest Policy
Annual Employee Certification
I have reviewed the DUMAC Compliance and Conflict of Interest Policy ("Policy") and Compliance
Procedures r'Procedures"), have complied with the Policy and Procedures during the calendar year
and will comply with the Policy and Procedures in the future.
If a possible conflict arises in my responsibilities to DUMAC, I recognize that I have the obligation to call
it to the attention of the appropriate individual(s) as set forth in the Procedures and to abstain from any
participation in the matter unless it is determined after full disclosure that my participation is permitted.
I understand that I am required to consult the Do Not Trade List prior to placing a personal security
trade. If I violate this Policy or the Procedures, I understand DUMAC may elect to impose any one or
more the following penalties:
•
issue me a written warning;
•
prohibit me from personal trading during business hours;
•
require me to obtain pre-clearance before personal trading;
•
require me to disgorge all profits from the illegal trade to a not-for-profit organization selected
by the ACRMC;
•
suspend my employment (with or without pay); or
•
terminate my employment.
Employee Signature
Print Name
Dated:
6
Approved by DUMAC BOD 5/7/2015
DUMAC, INC. COMPLIANCE AND CONFLICT OF INTEREST POLICY
APPENDIX A
e
What is material nonpublic information?
Information is considered "material" if there is a substantial likelihood that a reasonable
investor would consider it important in making his or her investment decisions, or if it could reasonably
be expected to affect the price of a company's securities. Information about an issuer that should be
considered "material" includes, but is not limited to: dividend changes, earnings estimates, changes in
previously released earnings estimates, significant expansion or curtailment of operations, significant
merger or acquisition proposals, hostile takeover bids, agreements or negotiations, significant new
products or discoveries, acquisition or loss of significant contracts, significant financing developments,
liquidity problems, major personnel changes or other extraordinary management developments, major
litigation, and the status of labor negotiations.
Information is considered "nonpublic" until it has been effectively communicated to the
marketplace in a manner making it reasonably available to investors. For example, information found in
a report filed with the Securities Exchange Commission {SEC), or appearing in a publication of general
circulation, such as Dow Jones, Reuters Economic Services, or The Wall Street Journal would be
considered public. The distribution of information through narrower channels may be insufficient to
make it public. Also, the fact that nonpublic information is reflected in rumors in the marketplace does
not mean that the information has been publicly disseminated. Even after information becomes public,
many aspects relating to the matter may remain nonpublic.
Examples of material information that may be nonpublic include the following:
a. due diligence material or other information delivered to DUMAC regarding potential
transactions, portfolio investments or their managers, including: private placement
memoranda, portfolio lists, performance history, statistical analyses, inspection reports,
conversations with the management or representatives of a portfolio investment describing
or relating to the portfolio investment, information about the structure of a portfolio
investment, and other information that may be obtained through due diligence or received
as a potential investor in a portfolio investment;
b.
the terms and conditions of a portfolio investment;
c.
reports identifying or detailing the portfolio composition or investment performance of a
Duke Entity;
d. the fact that a Duke Entity is in discussions regarding a potential investment; and
e. any other information that is designated as proprietary or confidential.
7
Service Name and Transport Protocol Port Number Registry
Last Updated
2012-07-06
Note
************************************************************************
* Since we merged and converted this registry it loads more slowly. We *
* know it should load faster and are working on ways to achieve that. *
* Thank you for your patience.
*
************************************************************************
Service names and port numbers are used to distinguish between different
services that run over transport protocols such as TCP, UDP, DCCP, and
SCTP.
Service names are assigned on a first-come, first-served process, as
documented in [RFC6335].
Port numbers are assigned in various ways, based on three ranges: System
Ports (0-1023), User Ports (1024-49151), and the Dynamic and/or Private
Ports (49152-65535); the difference uses of these ranges is described in
[RFC6335]. System Ports are assigned by IETF
process for standards-track protocols, as per [RFC6335]. User Ports
are assigned by IANA using the "Expert Review" process, as per
[RFC6335]. Dynamic Ports are not assigned.
The registration procedures for service names and port numbers are
described in [RFC6335].
Assigned ports both System and User ports SHOULD NOT be used without
or prior to IANA registration.
************************************************************************
* PLEASE NOTE THE FOLLOWING:
*
*
*
* ASSIGNMENT OF A PORT NUMBER DOES NOT IN ANY WAY IMPLY AN
*
* ENDORSEMENT OF AN APPLICATION OR PRODUCT, AND THE FACT THAT NETWORK *
* TRAFFIC IS FLOWING TO OR FROM A REGISTERED PORT DOES NOT MEAN THAT *
* IT IS "GOOD" TRAFFIC, NOR THAT IT NECESSARILY CORRESPONDS TO THE *
* ASSIGNED SERVICE. FIREWALL AND SYSTEM ADMINISTRATORS SHOULD
*
* CHOOSE HOW TO CONFIGURE THEIR SYSTEMS BASED ON THEIR KNOWLEDGE OF *
* THE TRAFFIC IN QUESTION, NOT WHETHER THERE IS A PORT NUMBER
*
* REGISTERED OR NOT.
*
************************************************************************
This registry is also available in plain text.
Transport
Registration Modi
BY-LAWS OF THE PHILPSE MANOR IMPROVEMENT ASSOCIATION INCORPORATED 1926
PREAMBLE
The residents of Philipse Manor, a residential waterfront community, situated in
the Village of Sleepy Hollow, Westchester County, New York State, reaffirm
their desire to maintain a not-for-profit residents' association run by a volunteer
Board of Directors whom they elect.
ARTICLE I - NAME
The name of this organization shall be the Philipse Manor Improvement Association,
hereinafter referred to as the PMIA.
ARTICLE II - OBJECTIVES
The objectives of the PMIA shall be:
A. To promote, preserve and protect the property interests and community welfare
of the landowners and residents of Philipse Manor,
B. To pursue harmonious community relations and amenities designed to
maintain and enhance the character of Philipse Manor, and
C. To hold title to real and/or personal property acquired in the community
interest
ARTICLE III - MEMBERSHIP
1. For the purposes of membership, Philipse Manor is defined as the residential
area bounded by the Hudson River to the West, Peabody Field to the North, Route
9 (Broadway) to the East, and the Pocantico River to the South.
2. There shall be one membership (and vote) per household.
3. Any property owner in or resident of Philipse Manor, who is 18 years of age or
over, shall be eligible to hold household membership in the PMIA.
4. There shall be 2 (two) classes of membership:
(a) General Membership, all non-Senior Members.
(b) Senior Membership, limited to resident/property owners over 65
years of age.
5. A member-household is in good standing if: (a) the annual dues and any special
assessments for the current year are paid, and (b) Membership has not been suspended for
cause.
6. Anyone who no longer resides or owns real estate in Philipse Manor shall
automatically cease to exercise or enjoy the benefits of membership.
ARTICLE IV - DUES AND ASSESSMENTS
1. The amount of the annual membership dues, for all classes of membership, may
be changed at the annual meeting by a majority vote of those present at such annual
meeting.
2. Annual dues shall be due at the start of the membership year, which is January
1st.
Deleted:
Deleted: 4
Deleted: T
Deleted: !
Deleted: !
Deleted: 5
Deleted: The amount of annual dues (currently $40 but $25 for
residents over 65) may ! be changed at the annual PMIA meeting.
Deleted: 3
3. The Board of Directors shall have the power to equitably apportion dues for
new member households who assume residence in Philipse Manor after January
1st.
4. The PMIA may levy special assessment(s), which have been approved by a
majority of member-households at an annual or special meeting of the PMIA.
When approved, special assessments shall be shared equally among all resident
households.
Deleted: 4
Deleted: 5
ARTICLE V – MEMBERSHIP MEETINGS
1. An annual meeting of the PMIA for the conduct of business, and the election of
Directors and Officers shall be held once each calendar year with the day and
date to be communicated to the membership.
2. Special meetings may be called by the President, or on the written request of at
least 35 member-households of the PMIA. Such meetings shall be held within 30
days of receipt of the request by the President.
3. Notice of a PMIA meeting, together with its agenda, shall be communicated by
the,
Communications Secretary to all residents at least 10 days prior to the meeting
date.
4. All PMIA meetings shall be held in either Sleepy Hollow or Tarrytown , New
York, at a place and time designated by the President in consultation with the
Board of Directors.
5. At any annual or special meeting of the PMIA the following shall occur: (a)
each member-household in good standing (“Member Household”) shall have just one
vote. Such vote can be exercised either in person or by a duly authorized proxy;(b)
aMemberHousehold may cast one vote and hold one proxy only, on each issue; (c) a vote
shall occur once a quorum is present at such annual or special meeting, with the
understanding that a quorumshall consist of the presence of 35 MemberHouseholds ( with
the understanding that proxies do not count for quorum(s)). A lesser number may adjourn
(up to one hour), to await a quorum.
Deleted: -
ARTICLE VI – BOARD OF DIRECTORS
1. The Board of Directors of the PMIA shall consist of 6 Directors and 5 Officers.
2. All Officers and Directors must be members in good standing of the PMIA and,
during their time of service, may not simultaneously hold elective positions (i.e.
Mayor or Trustee) in the Village of Sleepy Hollow. In alternating years, 3 of the 6
Directors shall be elected at the annual meeting by a majority of memberhouseholds or duly authorized proxies, for two-year terms.
Deleted: . B.
Deleted: !
Deleted: each
Deleted: in the last two
Deleted: weeks of October.
Deleted: mailed
Deleted: Corresponding
Deleted: the
Deleted: or
Deleted: Tarrytowns of
Deleted: !
Deleted: A
Deleted: .
Deleted: Each
Deleted: !
Deleted: This
Deleted: may be
Deleted: !
Deleted: A member
Deleted: -household
Deleted: !
Deleted: . C. A quorum
Deleted: member
Deleted: -! h
Deleted: !
Deleted: of
3. The Board of Directors shall, subject to the control of the member-households:
A. Uphold and protect the interests of the PMIA and its residenthouseholds,
B. Direct the policies and actions of the PMIA.
C. Control the finances, authorize expenditures, and prepare the PMIA
budget prior to its submission for approval at the annual meeting,
D. Conduct an audit, at least once a year, to ensure that the records of the
Treasurer and Secretaries are duly maintained,
E. Supervise the orderly and timely transmission of records and
documents from retiring Officers to their successors, and
F. Employ such contractors and individuals (as required), and prescribe
their duties and compensation commensurate with the annual budget.
4. In the event of a vacancy of a Director on the Board of Directors, the Board of
Directors may appoint a member of the PMIA as a director to complete the
remaining term.
5. The Board of Directors shall meet on the first Monday of each
month,
with the exception of July and August, which will be subject to the discretion of
the President if a meeting is required during these months. If the first Monday of
the month is a holiday, the meeting will be rescheduled for the earliest possible
date at the discretion of the President in consultation with the Board of Directors.
6. Special meetings of the Board of Directors may be called by the President,
either by discretion or within one week of receiving a signed request by at least
three Board members.
7. All meetings of the Board of Directors shall be held in Sleepy Hollow, New
York at a convenient place and time designated by the President in consultation with
the Board.
8. At all meetings of the Board of Directors a majority of the Board (six), shall
constitute a quorum. A lesser number may adjourn, for up to one hour, to wait for
a quorum. Other than adjourning, no business or votes can be conducted without a
quorum.
ARTICLE VII - OFFICERS
1. The Officers of the PMIA shall be a President, Vice-President, Recording
Secretary, Communications Secretary, and Treasurer. In sequential years,
two of the Officers (President & Treasurer) shall be elected at the annual meeting
by a majority of member households present and duly authorized proxies for a
term of two years and shall serve until their successors are elected. In the
following year, the positions of Vice President, Recording Secretary, and
Communications Secretary shall be elected for two-year terms. The Officers shall
also be members of the Board of Directors.
2. In the event of a vacancy of an Officer position, the Board of Directors shall
appoint a member of the Board to fill the vacancy for the unexpired term.
3. The President shall perform all the duties specifically provided for, and also:
(a) Be the executive head of the PMIA and chairperson of the Board of
Directors,
(b) Preside at all meetings of the PMIA and the Board of Directors,
(c) Be a member, ex-officio, of all committees except the Nominating
Committee.
(d)Execute all contracts in the name of the PMIA, which have been
authorized by the Board of Directors and budgeted for by the
member households.
4. The Vice-President shall:
Deleted: calendar
Deleted: ! quarter, or some other time, or more frequently as
determined by the Board.…
Deleted: to be held
Deleted: or ! Tarrytown
Deleted: !
Deleted: Corresponding
Deleted: !
Deleted: !
Deleted: !
Deleted: !
Deleted: Corresponding
Deleted: !
Deleted: !
Deleted: A.
Deleted: B.
Deleted: C.
Deleted: !
Deleted: D.
Deleted: !
Deleted: ! ! !
(a) Perform the duties of the President in the absence of the President,
(b) Coordinate the work of all the committees, and have them report to the
Board, and
(c) Generally assist the President in the administration of PMIA activities.
5. The Recording Secretary shall:
(a) Submit for the approval of the Board the proceedings of all the
meetings of the PMIA and the Board of Directors, and
(b) Maintain and safeguard the records of the PMIA, including the
membership list.
6. The Communications Secretary shall:
(a) Maintain and attend to all Communications of the PMIA to the
membership, authorized by the Board and of the PMIA from the President.
(b) Address and send out notices for all meetings; create and send all
newsletters and email(s); maintain any PMIA authorized social media (including,
without limitation, website(s), Instagram, Facebook, networking sites, etc.)
7. The Treasurer shall:
(a) Supervise and document the financial affairs of the PMIA,
(b) Receive and have charge of the funds of the PMIA, distributing them
as
authorized by the budget approved at the annual meeting,
(c) Collect all dues, special assessments and accounts due the PMIA and
deposit such funds in an account designated and controlled by the Board,
(d) Keep income and expense records, which may be audited at any time
by the Board, or by a public auditor selected by them, or a committee
selected by the President, and
(e) Submit to the Board and to the member-households annually, or at any
time on demand of the President or of the Board, a written report of
receipts and disbursements.
ARTICLE VIII -COMMITTEES
1. There shall be six standing committees defined as follows:
(a) Membership – to maintain, encourage and enlist membership in the
PMIA and report changes to the Recording Secretary on a regular basis.
(b) Property Maintenance –
Maintenance - to survey the appearance and general safety of Philipse Manor and
bordering properties (MTA, Village of Sleepy Hollow, etc.); to make recommendations
to the Board of Directors; to oversee the maintenance and improvement, where necessary,
of PMIA property; to work with the Village and others to maintain and improve the
overall sustainability, safety and appearance of the neighborhood.
(c) External Affairs - to provide liaison between the PMIA and other
community organizations in the area, and to report to the Board on matters
of mutual interest;
To provide liaison between the PMIA and the Village
of Sleepy
Hollow with respect to services provided and decisions taken
that affect
Philipse Manor, and to report to the Board of Directors on such
matters in a
timely manner.
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! President.
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! maintenance and improvement, where appropriate, of the
properties in and ! adjacent to. Philipse Manor that are owned
privately or publicly, or by ! Penn Central (MTA or its leasers or
successors), or by the PMIA, and to ! report and make
recommendations to the Board of Directors.¶
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(d) Communications - to provide written communications in various forms
to the residents of
Philipse Manor on matters of PMIA activities and
community interest; provided that such communications are to be
approved by the Board of Directors beforepublication and distribution.
F. Events Committee- to oversee any Philipse Manor sponsored events
(e.g., the ragamuffin parade and block party, Fourth of July parade and picnic,
new member events) within a budget to be approved by the Treasurer and the
Board of Directors
2. Each standing committee shall consist of at least three members two of whom,
including the chairperson, shall be members of the Board of Directors, excluding
the President.
3. Special committees may be created by the President, with the approval of the
Board of Directors, to undertake any duty within the scope of the objectives of the
PMIA.
4. The chairperson and members of each committee shall be appointed by the
President, subject to the approval of the Board of Directors.
5. It shall be the duty of the President and the Board of Directors to assign to the
appropriate committees all matters dealing with the objectives of the PMIA.
6. Each committee shall maintain records of its attendance and recommendations.
The chairperson of each committee shall report its activities periodically to the
Board.
ARTICLE IX - NOMINATING COMMITTEE
1. At least one month prior to the date of the annual meeting, the President, with
the concurrence of the Board, shall notify the membership via the appropriate
communications as approved by the Board of Directors asking for volunteers to
participate in the nomination committee (“Member Communication”). The President
shall use good faith efforts to create a nomination committee of at least three people who
are not currently an Officer or Director of the PMIA.
2. In the event, no one has volunteered to participate in the nomination committee
after two Member Communications have been sent asking for volunteers, the President
shall elect a committee of three members of the Board of Directors (provided that any
Officer or Director up for re-election shall not be allowed to participate in the nomination
committee) as the nomination committee. 3. It shall be the function of the committee to
make nominations for those Director and Officer positions, which are to be voted on at
the annual meeting.
4. Once the nomination committee has accepted the nominations for the Director
and Officer positions that will be voted on at the annual meeting, the Communications
Secretary shall notify the residents of Philipse Manor of the accepted nominations, along
with the notice of the annual meeting.
5. The nominations made by the committee shall not preclude the making of other
nominations from the floor at the annual meeting. Nominees proposed from the
floor must be present at the meeting, must be in good standing, and must consent
to being placed on the ballot.
ARTICLE X - ELECTION AND VOTING PROCESS
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!!
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matters pertaining to. ! real estate taxes, assessments, and zoning
in Philipse Manor, particularly ! with respect to inequalities, and
to. report and make recommendations to! the Board of Directors.
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1. Each member-household in good standing shall be entitled to cast one vote
and one proxy on each item brought to a vote at an annual or special meeting of
the PMIA.
2. Outstanding dues and assessments may be paid prior to the start of an annual
or special meeting in order to establish voting eligibility for an attending Member
Household.
3. Challenges shall be registered within one hour of the results being announced.
5. Such properly registered challenges shall be resolved by the previous Board of
Directors within 24 hours of the close of the annual or special meeting. Officers
or Directors directly involved in the challenges shall not take part in their
resolution.
6. A committee of at least three past officers shall be convened to decide any
unresolved election issues. Their decisions shall be binding and final unless
modified or overturned by a majority of the
7. Newly elected Officers and Directors shall assume office an January 1st
following their election at the annual meeting.
ARTICLE XI - SUSPENSION, OF MEMBERS, MEMBER-HOUSEHOLDS, OR
MEMBER PRIVILEGES
The Board of Directors shall have the power to:
(a) Suspend all the members of any Member Household whose dues or special
assessments remain unpaid for a period of more than 60 days after their due date.
(b) Revoke all parking privileges of any MemberHousehold any of whose PMIA
stickers are used for vehicles that are not their own.
(c) Suspend any given member(s) of a Member Household for conduct
detrimental to the best interests of the PMIA. Suspension for such cause shall be voted
only after written notice of at least 30 days with full particulars and opportunity to be
heard is given for such time and under such circumstances as the Board may
prescribe.
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requiring a written ballot.¶
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ARTICLE XII - TRANSFER OF ASSETS
Any request for a donation, gift, or transfer of PMIA assets having a value in excess of
$250 individually or cumulatively, which is not included in a budgeted account in the
annualbudget must be:
(a) Submitted to the President in writing, then be
(b) Approved by a majority vote at a meeting of the Board of Directors, and then
be
(c) Approved by the majority of Member Households in attendance or under
proxy at an annual or special meeting of the PMIA, provided that the request to be voted
on is included in the timely notice of the meeting.
(d). Approved by 51% of member-households in good standing, voting either by
mail or email, provided that the request to be voted on was sent to the PMIA membership
on two separate communications with an explicit explanation of the voting period.
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ARTICLE XIII - AMENDMENTS
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1. These By-Laws may be amended, individually or in combination, at an annual
or special meeting, by mail, or by email
ballot which receives an affirmative vote of
at least 51% of the Member Households in good standing.
2. An amendment may be proposed by a 2/3 vote of the entire Board of Directors,
or by a written petition to the President signed by at least 35 member-households.
3. Notice of any proposed amendment must be mailed and/or emailed to each
resident at least 30
days prior to the meeting scheduled to vote on the amendment, or
for-a mail ballot
at least 60 days prior to the due postmark date.
ARTICLE XIV -INDEMNIFICATION FOR DIRECTORS AND OFFICERS (Effective
if D&0 Insurance is purchased)
To the extent permitted by law, the PMIA shall defend and indemnify any former or
current director or officer of the PMIA for any loss, cost or other expense resulting from
any pending or threatened litigation, suit, or other proceeding arising in connection with
actions taken (or not taken) from and after the date of this amendment by such person in
their capacity as a former or current director or officer of the PMIA, provided, however,
that the foregoing shall not apply to the extent that such person's actions are adjudicated
to have been taken in bad faith or were the result of willful misconduct.
• The PMIA owns the Philipse Manor Beach (and Boat) Club property along with all the
property between the railroad and the Hudson River from the Palmer Avenue bridge to
about 150 feet north of Hunter Avenue.
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