FBI removes many redactions in Marilyn Monroe file

LOS ANGELES (AP) — FBI files on Marilyn Monroe that could not be located earlier this year have been found and re-issued, revealing the names of some of the movie star's communist-leaning friends who drew concern from government officials and her own entourage.

But the records, which previously had been heavily redacted, do not contain any new information about Monroe's death 50 years ago. Letters and news clippings included in the files show the bureau was aware of theories the actress had been killed, but they do not show that any effort was undertaken to investigate the claims. Los Angeles authorities concluded Monroe's death was a probable suicide.

Recently obtained by The Associated Press through the Freedom of Information Act, the updated FBI files do show the extent the agency was monitoring Monroe for ties to communism in the years before her death in August 1962.

The records reveal that some in Monroe's inner circle were concerned about her association with Frederick Vanderbilt Field, who was disinherited from his wealthy family over his leftist views.

A trip to Mexico earlier that year to shop for furniture brought Monroe in contact with Field, who was living in the country with his wife in self-imposed exile. Informants reported to the FBI that a "mutual infatuation" had developed between Field and Monroe, which caused concern among some in her inner circle, including her therapist, the files state.

"This situation caused considerable dismay among Miss Monroe's entourage and also among the (American Communist Group in Mexico)," the file states. It includes references to an interior decorator who worked with Monroe's analyst reporting her connection to Field to the doctor.

Field's autobiography devotes an entire chapter to Monroe's Mexico trip, "An Indian Summer Interlude." He mentions that he and his wife accompanied Monroe on shopping trips and meals and he only mentions politics once in a passage on their dinnertime conversations.

"She talked mostly about herself and some of the people who had been or still were important to her," Field wrote in "From Right to Left." ''She told us about her strong feelings for civil rights, for black equality, as well as her admiration for what was being done in China, her anger at red-baiting and McCarthyism and her hatred of (FBI director) J. Edgar Hoover."

Under Hoover's watch, the FBI kept tabs on the political and social lives of many celebrities, including Frank Sinatra, Charlie Chaplin and Monroe's ex-husband Arthur Miller. The bureau has also been involved in numerous investigations about crimes against celebrities, including threats against Elizabeth Taylor, an extortion case involving Clark Gable and more recently, trying to solve who killed rapper Notorious B.I.G.

The AP had sought the removal of redactions from Monroe's FBI files earlier this year as part of a series of stories on the 50th anniversary of Monroe's death. The FBI had reported that it had transferred the files to a National Archives facility in Maryland, but archivists said the documents had not been received. A few months after requesting details on the transfer, the FBI released an updated version of the files that eliminate dozens of redactions.

For years, the files have intrigued investigators, biographers and those who don't believe Monroe's death at her Los Angeles area home was a suicide.

A 1982 investigation by the Los Angeles District Attorney's Office found no evidence of foul play after reviewing all available investigative records, but noted that the FBI files were "heavily censored."

That characterization intrigued the man who performed Monroe's autopsy, Dr. Thomas Noguchi. While the DA investigation concluded he conducted a thorough autopsy, Noguchi has conceded that no one will likely ever know all the details of Monroe's death. The FBI files and confidential interviews conducted with the actress' friends that have never been made public might help, he wrote in his 1983 memoir "Coroner."

"On the basis of my own involvement in the case, beginning with the autopsy, I would call Monroe's suicide 'very probable,'" Noguchi wrote. "But I also believe that until the complete FBI files are made public and the notes and interviews of the suicide panel released, controversy will continue to swirl around her death."

Monroe's file begins in 1955 and mostly focuses on her travels and associations, searching for signs of leftist views and possible ties to communism. One entry, which previously had been almost completely redacted, concerned intelligence that Monroe and other entertainers sought visas to visit Russia that year.

The file continues up until the months before her death, and also includes several news stories and references to Norman Mailer's biography of the actress, which focused on questions about whether Monroe was killed by the government.

For all the focus on Monroe's closeness to suspected communists, the bureau never found any proof she was a member of the party.

"Subject's views are very positively and concisely leftist; however, if she is being actively used by the Communist Party, it is not general knowledge among those working with the movement in Los Angeles," a July 1962 entry in Monroe's file states.

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Anthony McCartney can be reached at http://twitter.com/mccartneyAP

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Surgery Returns to NYU Langone Medical Center

Chang W. Lee/The New York Times

Senator Charles E. Schumer spoke at a news conference Thursday about the reopening of NYU Langone Medical Center.

NYU Langone Medical Center opened its doors to surgical patients on Thursday, almost two months after Hurricane Sandy overflowed the banks of the East River and forced the evacuation of hundreds of patients.

While the medical center had been treating many outpatients, it had farmed out surgery to other hospitals, which created scheduling problems that forced many patients to have their operations on nights and weekends, when staffing is traditionally low. Some patients and doctors had to postpone not just elective but also necessary operations for lack of space at other hospitals.

The medical center’s Tisch Hospital, its major hospital for inpatient services, between 30th and 34th Streets on First Avenue, had been closed since the hurricane knocked out power and forced the evacuation of more than 300 patients, some on sleds brought down darkened flights of stairs.

“I think it’s a little bit of a miracle on 34th Street that this happened so quickly,” Senator Charles E. Schumer of New York said Thursday.

Mr. Schumer credited the medical center’s leadership and esprit de corps, and also a tour of the damaged hospital on Nov. 9 by the administrator of the Federal Emergency Management Agency, W. Craig Fugate, whom he and others escorted through watery basement hallways.

“Every time I talk to Fugate there are a lot of questions, but one is, ‘How are you doing at NYU?’ ” the senator said.

The reopening of Tisch to surgery patients and associated services, like intensive care, some types of radiology and recovery room anesthesia, was part of a phased restoration that will continue. Besides providing an essential service, surgery is among the more lucrative of hospital services.

The hospital’s emergency department is expected to delay its reopening for about 11 months, in part to accommodate an expansion in capacity to 65,000 patient visits a year, from 43,000, said Dr. Andrew W. Brotman, its senior vice president and vice dean for clinical affairs and strategy.

In the meantime, NYU Langone is setting up an urgent care center with 31 bays and an observation unit, which will be able to treat some emergency patients. It will initially not accept ambulances, but might be able to later, Dr. Brotman said. Nearby Bellevue Hospital Center, which was also evacuated, opened its emergency department to noncritical injuries on Monday.

Labor and delivery, the cancer floor, epilepsy treatment and pediatrics and neurology beyond surgery are expected to open in mid-January, Langone officials said. While some radiology equipment, which was in the basement, has been restored, other equipment — including a Gamma Knife, a device using radiation to treat brain tumors — is not back.

The flooded basement is still being worked on, and electrical gear has temporarily been moved upstairs. Mr. Schumer, a Democrat, said that a $60 billion bill to pay for hurricane losses and recovery in New York and New Jersey was nearing a vote, and that he was optimistic it would pass in the Senate with bipartisan support. But the measure’s fate in the Republican-controlled House is far less certain.

The bill includes $1.2 billion for damage and lost revenue at NYU Langone, including some money from the National Institutes of Health to restore research projects. It would also cover Long Beach Medical Center in Nassau County, Bellevue, Coney Island Hospital and the Veterans Affairs hospital in Manhattan.

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Chinese court orders Apple to pay in copyright dispute

BEIJING — A Chinese court has ordered Apple Inc. to pay 1.03 million yuan ($165,000) to eight Chinese writers and two companies who say unlicensed copies of their work were distributed through Apple's online store.

The Beijing No. 2 Intermediate People's Court ruled that Apple violated the writers' copyrights by allowing applications containing their work to be distributed through its App Store, according to an official who answered the phone at the court and said he was the judge in the case. The court worker refused to give his name, as is common among Chinese officials.

The award was less than the $1.9 million sought by the authors. The case combined eight lawsuits filed by them and their publishers.

Apple spokeswoman Carolyn Wu said the Cupertino, Calif., company's managers "take copyright infringement complaints very seriously." She declined to say whether Apple would appeal.

Unlicensed copying of books, music, software and other products is widespread in China despite repeated government promises to stamp out violations.

Apple's agreement with application developers requires them to confirm that they have obtained rights to material distributed through the company's App Store.

"We're always updating our service to better assist content owners in protecting their rights," Wu said.

The Chinese writers said they saw applications containing unlicensed versions of their books last year.

In November, a court ordered Apple to pay $84,000 to the Encyclopedia of China Publishing House for copyright infringement in a separate case. Apple is appealing, according to the official Xinhua News Agency.

In the latest case, the Beijing court awarded $97,500 to one company and $3,450 to the second, according to the court official.

The biggest individual judgment went to writer Han Ailian, who was awarded $30,000.

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Retired Gen. Norman Schwarzkopf dies at 78

Retired Gen. H. Norman Schwarzkopf, who topped an illustrious military career by commanding the U.S.-led international coalition that drove Saddam Hussein's forces out of Kuwait in 1991 but kept a low public profile in controversies over the second Gulf War against Iraq, died Thursday. He was 78.

Schwarzkopf died in Tampa, Fla., where he had lived in retirement, according to a U.S. official, who was not authorized to release the information publicly and spoke on condition of anonymity.

A much-decorated combat soldier in Vietnam, Schwarzkopf was known popularly as "Stormin' Norman" for a notoriously explosive temper.

He served in his last military assignment in Tampa as commander-in-chief of U.S. Central Command, the headquarters responsible for U.S. military and security concerns in nearly 20 countries from the eastern Mediterranean and Africa to Pakistan.

Schwarzkopf became “CINC-Centcom” in 1988, and when Saddam Hussein invaded Kuwait three years later to punish it for allegedly stealing Iraqi oil reserves, he commanded Operation Desert Storm, the coalition of some 30 countries organized by President George H.W. Bush that succeeded in driving the Iraqis out.

“Gen. Norm Schwarzkopf, to me, epitomized the 'duty, service, country' creed that has defended our freedom and seen this great nation through our most trying international crises," Bush said in a statement. "More than that, he was a good and decent man — and a dear friend."

At the peak of his postwar national celebrity, Schwarzkopf — a self-proclaimed political independent — rejected suggestions that he run for office, and remained far more private than other generals, although he did serve briefly as a military commentator for NBC.

While focused primarily in his later years on charitable enterprises, he campaigned for President George W. Bush in 2000 but was ambivalent about the 2003 invasion of Iraq, saying he doubted victory would be as easy as the White House and Pentagon predicted.

In early 2003 he told the Washington Post the outcome was an unknown: “What is postwar Iraq going to look like, with the Kurds and the Sunnis and the Shiites? That's a huge question, to my mind. It really should be part of the overall campaign plan,” he said.

Initially Schwarzkopf had endorsed the invasion, saying he was convinced that former Secretary of State Colin Powell had given the United Nations powerful evidence of Iraqi weapons of mass destruction. After that proved false, he said decisions to go to war should depend on what U.N. weapons inspectors found.

He seldom spoke up during the conflict, but in late 2004, he sharply criticized then-Defense Secretary Donald Rumsfeld and the Pentagon for mistakes that included inadequate training for Army reservists sent to Iraq and for erroneous judgments about Iraq.

"In the final analysis I think we are behind schedule. … I don't think we counted on it turning into jihad," he said in an NBC interview.

Schwarzkopf was born Aug. 24, 1934, in Trenton, N.J., where his father, Col. H. Norman Schwarzkopf Jr., founder and commander of the New Jersey State Police, was then leading the investigation of the Lindbergh kidnap case, which ended with the arrest and 1936 execution of German-born carpenter Richard Hauptmann for stealing and murdering the famed aviator's infant son.

The elder Schwarzkopf was named Herbert, but when the son was asked what his H stood for, he would reply, "H." Although reputed to be short-tempered with aides and subordinates, he was a friendly, talkative and even jovial figure who didn't like "Stormin' Norman" and preferred to be known as "the Bear," a sobriquet given him by troops.

He also was outspoken at times, including when he described Gen. William Westmoreland, the U.S. commander in Vietnam, as "a horse's ass" in an Associated Press interview.

As a teenager Norman, accompanied his father to Iran, where the elder Schwarzkopf trained the country's national police force and was an adviser to Reza Pahlavi, the young Shah of Iran.

Young Norman studied there and in Switzerland, Germany and Italy, then followed in his father's footsteps to West Point, graduating in 1956 with an engineering degree. After stints in the U.S. and abroad, he earned a master's degree in engineering at the University of Southern California and later taught missile engineering at West Point.

In 1966 he volunteered for Vietnam and served two tours, first as a U.S. adviser to South Vietnamese paratroops and later as a battalion commander in the U.S. Army's Americal Division. He earned three Silver Stars for valor — including one for saving troops from a minefield — plus a Bronze Star, a Purple Heart and three Distinguished Service Medals.

While many career officers left military service embittered by Vietnam, Schwarzkopf was among those who opted to stay and help rebuild the tattered Army into a potent, modernized all-volunteer force.

After Saddam invaded Kuwait in August 1990, Schwarzkopf played a key diplomatic role by helping to persuade Saudi Arabia's King Fahd to allow U.S. and other foreign troops to deploy on Saudi territory as a staging area for the war to come.

On Jan. 17, 1991, a five-month buildup called Desert Shield became Operation Desert Storm as allied aircraft attacked Iraqi bases and Baghdad government facilities. The six-week aerial campaign climaxed with a massive ground offensive on Feb. 24-28, routing the Iraqis from Kuwait in 100 hours before U.S. officials called a halt.

Schwarzkopf said afterward he agreed with Bush's decision to stop the war rather than drive to Baghdad to capture Saddam, as his mission had been only to oust the Iraqis from Kuwait.

But in a desert tent meeting with vanquished Iraqi generals, he allowed a key concession on Iraq's use of helicopters, which later backfired by enabling Saddam to crack down more easily on rebellious Shiites and Kurds.

While he later avoided the public second-guessing by academics and think tank experts over the ambiguous outcome of Gulf War I and its impact on Gulf War II, he told the Washington Post in 2003, “You can't help but… with 20/20 hindsight, go back and say, 'Look, had we done something different, we probably wouldn't be facing what we are facing today.'"

After retiring from the Army in 1992, Schwarzkopf wrote a best-selling autobiography, "It Doesn't Take A Hero." Of his Gulf war role, he said, "I like to say I'm not a hero. I was lucky enough to lead a very successful war." He was knighted by Queen Elizabeth II and honored with decorations from France, Britain, Belgium, Kuwait, Saudi Arabia, United Arab Emirates, Qatar and Bahrain.

Schwarzkopf was a national spokesman for prostate cancer awareness and for Recovery of the Grizzly Bear, served on the Nature Conservancy board of governors and was active in various charities for chronically ill children.

"I may have made my reputation as a general in the Army, and I'm very proud of that," he once told the AP. "But I've always felt that I was more than one-dimensional. I'd like to think I'm a caring human being. … It's nice to feel that you have a purpose."

Schwarzkopf and his wife, Brenda, had three children: Cynthia, Jessica and Christian.

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Analysis: For tech investors, it’s hard to know when to bolt

(Reuters) – When Hewlett-Packard Co agreed to buy British software company Autonomy in August last year for $ 11.1 billion, two well-known investors made diametrically different bets on how the big deal would play out.

To short seller Jim Chanos, who had been raising red flags on Autonomy for years and had started shorting shares of HP in 2011, the deal was another nail in the coffin of the Silicon Valley tech giant, according to a source familiar with his thinking.

But to activist investor Ralph Whitworth, co-founder of Relational Investors LLC, it was time to commit to HP and the turnaround story the company was trying to sell to Wall Street. His fund bought more than 17.5 million HP shares after the deal was announced, and Whitworth received a seat on the company’s board. This year, Relational roughly doubled its stake in HP.

In the wake of HP’s decision to take an $ 8.8 billion write-down on the deal because of alleged accounting irregularities at Autonomy, it appears Chanos – whose call to short Enron before the energy company collapsed in a corporate scandal may be his most famous trade – was more astute.

HP’s shares are down 36 percent since Relational, which declined to comment, built its stake in the third quarter of 2011.

BARRIERS TO ENTRY

Relational’s big move into HP is a reminder that even smart investors can get things wrong in the fast-evolving technology sector, where once hot global names like Research in Motion and Yahoo can quickly become yesterday’s news.

It is a world where a company may effectively erect barriers to entry in a market only to have them torn down by a rival with a new whizz-bang product – just as Apple‘s iPhone broke the dominance that Research in Motion’s BlackBerry had enjoyed.

One warning sign that a tech company may be on the verge of losing its edge is when it makes acquisitions outside of its main area of expertise to move into new product lines. Savvy tech investors also say be wary of companies that experience a succession of management changes, or when a successful core business starts looking tired.

The pace of change in the technology sector is much faster than in other industries, said Kaushik Roy, an analyst at Hercules Technology Growth Capital. “It attracts new talent and capital, many startups are formed, which can be extremely disruptive to incumbents,” Roy said. “In other words, yesterday’s winners can rapidly become today’s losers and vice versa.”

In the case of HP, the company not only has had four CEOs since 1999, it has been striving to find another niche to dominate as demand for one of its core products – computer printers – wanes and as its PC business stumbles.

Or consider online search pioneer Yahoo, which has gone through six chief executives and is struggling to keep pace with Google.

Josh Spencer, a portfolio manager at T. Rowe Price, said frequent turnover in the executive suite at Yahoo was a warning sign to him. Spencer said he does not own Yahoo shares and has not in the recent past.

RED FLAGS

While a company may view an acquisition as a fresh start – that is what HP was trying to say about Autonomy – some investors see it as a warning the core business is struggling.

Spencer noted that the technology industry’s most successful companies – Apple and Samsung – generally have not made acquisitions and instead developed new products internally.

For Margaret Patel, managing director at Wells Capital Management, one of the first red flags she saw at HP was when former CEO Carly Fiorina bought Compaq for roughly $ 25 billion in 2002.

“I felt then that the acquisition was too large and expensive, and personal computers were not their core strength,” said Patel, who has since avoided investing in HP.

Of course, timing can be everything even if an investor is eventually proven right. Patel missed out on a 137 percent gain in HP’s stock price from the time of the Compaq deal up until the end of 2010.

PREMIUM VALUATIONS

A few money managers see a flashing yellow light in the big sell-off of Apple shares in the past few months.

Apple, the most valuable U.S. company, has shed nearly 30 percent of its value in the last three months.

Since the death of co-founder Steve Jobs – the driving force behind Apple’s iPod, iPhone and iPad – DoubleLine co-founder Jeffrey Gundlach has been recommending that investors short the company’s shares because “the product innovator isn’t there anymore.”

Gundlach said he began shorting Apple’s stock at around $ 610 and maintains that it could drop to $ 425. He declined to comment on Tim Cook, who succeeded Jobs over a year ago and is seen by many as less visionary and innovative than Jobs.

Christian Bertelsen, chief investment officer at Global Financial Private Capital, with assets under management of $ 1.7 billion, said his firm began paring back its exposure to Apple this fall because he felt the expectations for the company’s new iPhone5 had gotten overheated.

He said his firm dramatically took down its exposure to Apple shares when the stock hit $ 670 a share. “For us, the light bulb went off this fall,” he said. Mind you, Apple’s shares still remain up about 25 percent for the whole year.

And then there’s Research in Motion. Once a leader in smartphones, it’s now in danger of becoming irrelevant.

“They saw the move towards all touch-screen phones and didn’t move with it,” said Stuart Jeffrey, an analyst at Nomura Securities who noted how the BlackBerry 10 touch-screen phone will debut on January 30, 2013, six years after Apple released its first iPhone in 2007.

Robert Stimpson, a portfolio manager at Oak Associates Funds whose fund does not own any shares of Research in Motion, said the company’s BlackBerry phones are on a downward slope and it will be tough for the company to regain its lost luster.

“The end of the road is a long, lonely journey,” Stimpson said of Research in Motion. “I think they will fight the good fight for many years, probably unsuccessfully.”

(Reporting by Nicola Leske and Sam Forgione in New York; Editing by Paritosh Bansal, Tiffany Wu, Jennifer Ablan and Matthew Goldstein; Editing by Steve Orlofsky)

Tech News Headlines – Yahoo! News

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It's husband No. 3 for actress Kate Winslet

NEW YORK (AP) — Kate Winslet has tied the knot again.

The Oscar-winning actress wed Ned Rocknroll in New York earlier this month. The private ceremony was attended by Winslet's two children as well as a few friends and family members, her representative said Thursday.

It is the third marriage for the 37-year-old Winslet. She was previously married to film directors Jim Threapleton and Sam Mendes.

The 34-year-old Rocknroll, who was born Abel Smith, is a nephew of billionaire Virgin Group founder Richard Branson.

The couple had been engaged since last summer.

Winslet won a Best Actress Oscar for her performance in the 2008 film "The Reader."

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Starz will face new, challenging world as public company

Pay-TV channel Starz is trying to chart a new orbit.

Early next year, its parent company, Liberty Media, plans to spin off the premium network and its sister channel Encore into a new, stand-alone, publicly traded company.

Such a move would normally be cause for celebration. But for Starz, the separation comes amid uncertainty.

Its track record producing original shows has been mixed. The market is getting increasingly crowded not only from Starz's traditional competitors, HBO and Showtime, but also from new rivals including Netflix, Amazon and Redbox. And, starting in 2017, the network will lose one of its key suppliers of movies — Walt Disney Studios — to Netflix.

"It's an interesting time for Starz," said Matthew Harrigan, a media analyst with Wunderlich Securities. "Losing those Disney movies makes life a little more difficult, and it becomes even more important for them to create successful original programming."

STORY: On Location

Liberty Media is spinning off Starz in part to make it more attractive to potential buyers. Companies mentioned by analysts as possible suitors include Comcast Corp., parent of Universal Pictures. Other deep-pocketed prospective buyers could be News Corp., Walt Disney Co. and Viacom Inc. HBO and Showtime probably would face anti-trust issues if either of them made a run at Starz.

The shift also raises the stakes for Starz and its chief executive, Chris Albrecht, who has been given the task of building an original programming pipeline. Albrecht, who joined Starz nearly three years ago, has the experience. As the former head of HBO, he was a key architect of that network's success by helping nurture such culture-defining hits as "Sex and the City" and "The Sopranos."

Achieving those heights again, this time at Starz, has proved more elusive. Starz made a splash with its gladiator series "Spartacus," but another high-profile drama, "Boss," about a corrupt Chicago mayor played by Kelsey Grammer ("Frasier"), failed to deliver ratings to match its critical acclaim. "Boss" was canceled after two seasons. Last year's "Camelot," about a young King Arthur, started strong but then fell on its sword.

Starz, which has 20.8 million subscribers in the U.S., has spent the last few years playing catch-up. The network began developing original dramas much later than industry leaders HBO and Showtime, and also lags behind basic cable channels FX, AMC and USA Network.

At the same time, the availability of movies through other venues has increased dramatically, and film fans can just as easily get their fix by buying or renting DVDs — online or at supermarket kiosks — or through Internet streaming services. That makes the need for strong original content even greater.

Starz executives declined to comment for this story, citing the "quiet period" mandated by regulators before the public stock offering.

Hollywood movie studios have a strong incentive to protect the premium channels, which have long served as their unofficial ATMs. The channels, including HBO, Starz and Showtime, spit out hundreds of millions of dollars each year to movie studios in exchange for the first-run TV rights to recent releases. The fees — which can approach $30 million for a single blockbuster film — have helped studios turn deficits into profits for many movies.

The parent companies of HBO (Time Warner), Showtime (CBS Corp.) and Starz (Liberty Media), also have long collected hundreds of millions of dollars each year in profit from the channels in distribution fees from cable and satellite operators. According to consulting firm SNL Kagan, Starz and sister channel Encore this year will generate revenue of $1.34 billion and $414 million in cash flow, a metric similar to operating income.

Just a few years ago, Starz trailed HBO as the No. 2 movie channel in terms of distribution. But it has since been surpassed by Showtime. The CBS Corp. network has staged a string of hits including "Weeds," the serial killer drama "Dexter," the pill-popping dark comedy "Nurse Jackie" and its latest hit, the terrorist thriller "Homeland," which this fall won the Emmy for TV's best drama.

According to SNL Kagan, Showtime has 21 million subscribers and 2012 revenue of $1.6 billion. Cash flow for Showtime and its sister channels TMC and Flix should approach $690 million combined for this year. Showtime's programming expenses are slightly less because it ended its relationships with movie studios several years ago.

"Showtime has been doing something similar [to Starz] with their strategy, but they have programming that people are talking about," said BTIG analyst Richard Greenfield said. "The question is how does Starz stack up?"

Its shows have largely failed to attract the buzz that can drive subscriptions and ratings. "Spartacus" was Starz's most popular show, averaging more than 5 million viewers an episode during the third season when viewing on all platforms was counted. "Magic City," the channel's stylistic drama about Miami gangsters in the 1950s, averaged 3.1 million viewers an episode when it debuted this year, while "Boss" collared just 2.2 million an episode.

Starz is betting heavily on its lineup for next two years, which includes the second season of "Magic City" and the new prospects "Da Vinci's Demons," a drama about Leonardo's early days from David S. Goyer, a co-writer of the "Dark Knight Rises" film trilogy, and "Black Sails," a swashbuckling adventure from "Transformers" and "Pirates of the Caribbean" filmmaker Michael Bay.

The company this year is spending about $692 million on programming, with four-fifths of that amount earmarked for buying products from Disney and Sony Pictures Entertainment, according to SNL Kagan, which said Starz spends less than $100 million annually creating original series.

"They still need the movies to fill their schedule, but at the same time Starz needs some unique programs to define the channel," said Deana Myers, an SNL Kagan television analyst. "It's not an easy market to get into because a lot of other networks are doing original productions."

Although Starz will continue to receive the Disney movies for three years, the eventual loss puts pressure on the company to keep Sony as a supplier beyond 2016, when the parties' current arrangement ends. The loss of Disney movies and the coming end of the Sony contract could also complicate the picture as Starz tries to attract a new owner.

Potential suitor Viacom already has a presence in the premium channel business. The parent of Paramount Pictures teamed in 2009 with two other studios, Lions Gate Entertainment Corp. and Metro-Goldwyn-Mayer Studios Inc., to launch the movie service Epix. The upstart has struggled to make distribution deals with leading cable and satellite TV systems. That could make a merger between Epix and Starz enticing. Given that Epix is not nearly as powerful as HBO and Showtime, such a deal may also be able to pass regulatory muster.

meg.james@latimes.com

joe.flint@latimes.com

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Deadly storm moves on to Northeast

A massive storm system upended post-Christmas travel plans Wednesday as it marched toward the Northeast after dumping snow and sleet on the middle of the country and producing tornadoes through the South on Christmas Day.

The storm stretched from Michigan to Florida and had been blamed for seven deaths so far.

The nation's airlines had canceled more than 1,800 flights and delayed more than 9,000 by at least 15 minutes, mostly into and out of Dallas, Philadelphia, Cleveland, Chicago, Indianapolis and New York, according to the airline monitoring website Flightstats.com.

PHOTOS: Northeast braces for winter storm

Los Angeles International Airport, the nation's fifth-busiest, has been largely spared the impact of the storm, with only a handful of delays and cancellations Wednesday, to airports including New York's John F. Kennedy International and Chicago's O'Hare International.

The storm could dump 12 to 18 inches of snow from the lower Great Lakes to northern New England, the National Weather Service said.

A tornado watch had been in effect for part of the day in eastern North Carolina and northeastern South Carolina.

"It is a significant storm in terms of its size and its range of impacts from severe weather to winter weather," said Chris Vaccaro, spokesman for the weather service.

The storm was expected to clear most of the mid-Atlantic states Wednesday night, the service said, and northern New England could expect steady snow starting Thursday morning.

On Christmas Day alone, the weather service received 34 reports of tornadoes in eastern Texas, Alabama, Louisiana and Mississippi, Vaccaro said.

A twister touched down in Mobile, Ala., on Tuesday, blowing roofs off homes and knocking down trees and power lines. Several mobile homes north of the city were toppled, but no serious injuries were reported.

"Right now it's cleanup and damage assessment," said Donald Leeth, plans and operations officer with the Mobile County Emergency Management Agency.

The storm caused tens of thousands of customers to lose power across Alabama, but most had it back by Wednesday.

Snow and ice hit Arkansas hard, with about 200,000 customers losing power. Gov. Mike Beebe declared a statewide disaster Wednesday. The Arkansas Department of Emergency Management said two counties had opened shelters for those without heat.

The department received a report that a man died when a tree fell on his house in Saline County. Two children died on Christmas when the car they were in crossed the center line of an icy Arkansas highway and struck an SUV.

In Oklahoma, two people were killed in separate crashes Tuesday.

On Christmas, the storm's winds were blamed for toppling a tree onto a pickup in Texas, killing the driver, and for knocking another tree onto a house in Louisiana, killing a man there, the Associated Press reported.

Mississippi Gov. Phil Bryant declared a state of emergency for several counties after the storm injured more than 25 people.

The New York City Office of Emergency Management issued a travel advisory for Wednesday evening through Thursday morning, citing forecasts of "snow with sleet and freezing rain." The area was also under a high wind warning, with gusts of up to 60 mph possible, Vaccaro said.

The worst of the weather should be gone by Friday, he said. "Come Friday morning, it will largely be a sunny day across the eastern third of the country."

andrew.khouri@latimes.com

Times staff writer Hugo Martin contributed to this report.

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Patrick Dempsey brews up coffee shop purchase

LOS ANGELES (AP) — Patrick Dempsey says he wants to rescue a coffee house chain and more than 500 jobs.

The "Grey's Anatomy" star said Wednesday he's leading a group attempting to buy Tully's Coffee. The Seattle-based company filed for Chapter 11 bankruptcy protection in October.

Dempsey said he's excited about the chance to help hundreds of workers and give back to Seattle.

The actor has a strong TV tie to the city: He plays Dr. Derek Shepherd on "Grey's Anatomy," the ABC drama set at fictional Seattle Grace Hospital.

Tully's has 47 company-run stores in Washington and California, as well as five franchised stores and 58 licensed locations in the U.S.

Any sale would have to be approved by a judge. A bankruptcy court hearing is set for Jan. 11 in Seattle.

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New York’s Mental Health System Thrashed by Services Lost to Storm

Marcus Yam for The New York Times

Dr. Richard Rosenthal of Continuum Health Partners, which owns Beth Israel, Roosevelt and St. Luke's hospitals, said he noticed more mentally ill people in the streets now  than he had in years.

When a young woman in the grip of paranoid delusions threatened a neighbor with a meat cleaver one Saturday last month, the police took her by ambulance to the nearest psychiatric emergency room. Or rather, they took her to Beth Israel Medical Center, the only comprehensive psychiatric E.R. functioning in Lower Manhattan since Hurricane Sandy shrank and strained New York’s mental health resources.

The case was one of 9,548 “emotionally disturbed person” calls that the Police Department answered in November, and one of the 2,848 that resulted in transportation to a hospital, a small increase over a year earlier.

But the woman was discharged within hours, to the shock of the mental health professionals who had called the police. It took four more days, and strong protests from her psychiatrist and caseworkers, to get her admitted for two weeks of inpatient treatment, said Tony Lee, who works for Community Access, a nonprofit agency that provides supportive housing to people with mental illness, managing the Lower East Side apartment building where she lives.

Psychiatric hospital admission is always a judgment call. But in the city, according to hospital records and interviews with psychiatrists and veteran advocates of community care, the odds of securing mental health treatment in a crisis have worsened significantly since the hurricane. The storm’s surge knocked out several of the city’s largest psychiatric hospitals, disrupted outpatient services and flooded scores of coastal nursing homes and “adult homes” where many mentally ill people had found housing of last resort.

One of the most affected hospitals, Beth Israel, recorded a 69 percent spike in psychiatric emergency room cases last month, with its inpatient slots overflowing. Instead of admitting more than one out of three such cases, as it did in November 2011, it admitted only one out of four of the 691 emergency arrivals this November, records show. Capacity was so overtaxed that ambulances had to be diverted to other hospitals 15 times in the month, almost double the rate last year, in periods typically lasting for eight hours, officials said.

Dr. Richard Rosenthal, physician in chief of behavioral services for Continuum Health Partners, Beth Israel’s parent organization, said he was proud of how much Continuum’s hospitals had done to handle psychiatric overflow since storm damage shuttered Bellevue Hospital Center, the city’s flagship public hospital; NYU Langone Medical Center; and the Veterans Affairs Hospital. But these days, he said, as he walks on Amsterdam Avenue between Continuum’s Roosevelt hospital on West 59th Street and its St. Luke’s hospital on West 114th Street, he notices more mentally ill people in the streets than he has seen in years.

“When you have the most vulnerable folks, all you need is one chink in the system and you lose them,” Dr. Rosenthal said. “Whether they lost their housing, or the outpatient services they usually go to were closed and they were lost to follow-up, they have become disconnected, with predictable results.”

Similar patterns are playing out in Brooklyn, where Maimonides Medical Center has been overwhelmed with mental health emergencies from the Coney Island vicinity since Coney Island Hospital, one of the city’s largest acute care psychiatric hospitals, suspended operations, hospital officials said.

“Triage has reached a different level: You have to get sicker to get in,” said Dr. Andrew Kolodny, the chairman of psychiatry at Maimonides, citing a 56 percent increase in psychiatric emergency room visits there from Oct. 26 to Dec. 7, compared with the same period last year, and a 24 percent rise in admissions. The increase in admissions was possible only with emergency permission from the state to exceed licensed limits.

“Not only is there decreased capacity, because Bellevue and Coney Island are off line,” Dr. Kolodny added, “but there’s increased demand because the storm or the loss of their residence has been a stressor for mental illness.”

The storm battered a mental health system that still relies heavily on private nursing homes and substandard adult homes to house people with mental illness. Such institutions have a sordid history of neglect and exploitation, and the courts have repeatedly found that their overuse by the state isolated thousands of people in violation of the Americans With Disabilities Act.

Plans are under way to increase supportive housing — dwellings where mentally ill people can live relatively independently, with support services. But even before Hurricane Sandy, the expansion fell far short of demand.

The storm underscored the fragility of the system. Many disabled evacuees who were sent first to makeshift school shelters lost access to the psychiatric medications that kept their symptoms at bay, Dr. Kolodny said. Even those lucky enough to have the drugs they need are at greater risk of relapse as they experience crowded living conditions. “If they’re now sleeping in a gym with 100 people, that can tip them over the edge and start making them really paranoid,” he said.

On Staten Island, where the chief of psychiatry at Richmond University Medical Center says psychiatric resources have been stretched to the limit, clergy members report that mentally ill people transferred to a large adult home in New Brighton from one that was washed away in Far Rockaway, Queens, are now showing up at church rectories, begging for socks and underwear.

“It’s heartbreaking, because they just found us by chance,” said Margaret Moschetto, a missionary at the Church of Assumption-St. Paul in New Brighton. “They were just walking around the neighborhood. They really didn’t know where they were.”

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