Hiya Bill!
If you've read any of my liner notes for thr Classic Soundtracks, I talk about what I refer to as "The Great Purge". In the 1950's, Disney destroyed most, if not all, of the original nitrate elements (as nitrate had the nasty habbit of, oh, bursting into flames). Though they made 'safety copies' of the complete mix and the foriegn mix (without vocals), they never made copies of the original elements ? at the time, the idea that they would go back and completely remix a film never entered their minds for there never was an occasion to do so. In 1993, while working on Snow White, I discovered this 'flaw in judgement' and I was totally aghast. Walt was even around, how could they make such a non-forward-thinking decission? Well, I soon discovered that every studio did exactally the same ? save for one... MGM. Evedently, the two old gentlemen who were in charge of this material, guarded it with their lives. They kept everything!! Which is why there is so much 'bonus material' on DVDs and CDs from MGM on average. Of all the studios, I would think that the one that had the best excuse to loose everything (the way MGM was divided up and sold off as condos) was MGM. But, because of these two guys, just about everything was saved.
Though Chitty was done in the 70's, MGM was still intact and these guys were still there. I find it hard to believe that the score was 'LOST' especially seeing that the recent Anniversary DVD release boasts a fully restored soundtrack and re-mixed in 5.1!
What I can bet is the real reason is that the score was not recorded under a phono agreement - the though the songs were. As you may know, score was rarely included on any musical's soundtrack, therefore they did not pay the minimal fee to also have this Film-Sync Session covered under a Phono Agreement. If you don't record under a Phono Agreement and later decide to release the score on record, you have to pay the entire orchestra as if you're recording it anew ? paying again for work that was already paid for. This is the situation I'm in regarding "20,000 Leagues Under the Sea".
Bottom line, beyond all my blathering and giberish, I would have to say that the 'new-use' conversion fee was the prohibative factor (as it was a rather large orchestra to boot). Now, I'm just taking a guess here, but with MGM, I highly doubt it's 'Lost'. I've asked Richard Sherman to join me in the studio for the final phases of Poppins, and I'll ask him if he knows what the situation is, and then we'll probably have the definitive answer, but my money is on the conversion fee if ya ask me.
Hope that helps,
Randy Thornton