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426 -^ <^> -^ The Motion Picture Industry
real nature of the disadvantage under which the American companies are working, however, some further explanation is necessary. With the Sascha studio in the hands of a receiver and Selenophon unable to produce for lack of capital, there is no production of films in Austria nor can there be until new capital is found for resuscitation of these two studios. However, films are being imported by means of Vormerkscheine (as the permits are called) just as though there were a full-blown industry in operation. Vormerkscheine are given to the Germans in accordance with the fourth paragraph of the regulations of July 10, 1931, which stipulated that the sale of an Austrian film in a foreign country per se gave the producer an additional 30 Vormerkscheine.
In this connection Hofrat Lanske has taken the attitude through an agreement with Germany, which calls for an exchange of films on the basis of 1 Austrian film for 10 German films or Vormerkscheine in the same equivalent, that, due to the inability of the Austrian industry to produce the required Austrian film, it is not right that the German films be kept out of the Austrian market through failure on the part of Austrian producers. Therefore the Spio (Spitzenorganization) are receiving their 30 Vormerkscheine gratis. These Vormerkscheine are granted as interim certificates and are called "Vorschuesse".
Thus, in the year 1931, a total of 497 Vormerkscheine were issued on production of Austrian films. Of this number 315.5, or 64% were handed to the Spio gratis. American distributors at the same time paid for 1 14.3 Vormerkscheine or 23% of the total number issued. The German interests took from the Austrian producers two pictures on which rentals were not over $30,000, the German Filmbund received 64% of Austria's Vormerkscheine, while the Americans paid $15,000 for 23% of these certificates. Furthermore, one Austrian film was sold in the United States upon which a return of perhaps $5,000 was received.