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Mr. Murphy. This is the first year in which we have instituted a 30percent service charge, to go back to our preservation activities, for the use of the material. The 30 percent is based upon the laboratory costs for duplication.
Mr. Butler. Excuse me, Mr. Ingram ; 30 percent of what ?
Mr. Murphy. Laboratory costs. If a television company wants to obtain reproductions of film, they pay a laboratory charge, and we have tacked on a 30-percent service charge that goes back to our preservation activities.
Mr. Butler. So, it is 130 percent. They pay the cost plus 30 percent.
Mr. Murphy. That is right.
Mr. Ingram. And that goes back into what fund?
Mr. Murphy. It goes back to our motion picture preservation activities.
Mr. Ingram. Back to the U.S. Treasury or the Archives ?
Mr. Murphy. I think Mr. Landers could answer that.
Mr. Ingram, Wliere does that money go ?
Mr. Landers. All the fees that we collect for all the reproductions that we sell go into the National Archives Trust Fund. Within that fund, we then set aside these surcharges in order for us to be able to convert additional nitrate movies into safety film.
I might add that — and I will need some help on the dates — with regard to Mr. Ingram's question as to why it was that the purchasers of the footage had not paid for the conversion to safety film. We did not feel that it was fair, at that time — we have changed our minds subsequently — to have the first person who comes in and wants to buy a reproduction of this segment pay the total cost of copying that film onto safety film and from there to make the copy that he is going to get.
So, our practice in the past — not today — was to make his copy directly from the nitrate film, and put the nitrate back in the vault, and sell him his safety film, but just at the cost that it took to do that. We were not building in an additional cost to generate some money to try to help us convert additional nitrate to safety film.
Mr. Preyer. So, when the ITniversity of Texas borrows this film, it is transferred to safety film before the University of Texas gets it?
Mr. Landers. Yes.
Mr. Preyer. So, a lot of this footage might still be outside ?
Mr. Moore. They do not borrow it. The University of Texas would receive a copy of it.
Mr. Preyer. They would have their own copy ?
Mr. Moore. They would specify what footage they wanted, and we would make a copy of that footage.
Mr. Preyer. The second bell has rung.
The subcommittee will stand in recess for about 10 minutes.
[Recess taken.]
Mr. Preyer. The subcommittee will resume session.
Mr. Evans ?
Mr. Evans. I have no questions at this time, Mr. Chairman.
Mr. Preyer. Thank you.
I will recognize Mr. Ingram and then Mr. Morr for a few questions to complete the record.
Mr. Ingram. Thank you, Mr. Chairman.