Children’s Style

That Delivers

A TRAP
FOR A TRADER
OFF DUTY REVIEW
VOL. CCLXIX NO. 63 * * * * * * * * WEEKEND HHHH $4.00
SATURDAY/SUNDAY, MARCH 18 - 19, 2017 WSJ.com

All Eyes Turn to Tillerson’s Tough Stance on Pyongyang

DOJ Fires
What’s
Salvo at
News
World-Wide
Consumer
Bureau
T he House GOP health
plan picked up an impor-
tant endorsement from lead- BY BRENT KENDALL
ers of a large bloc of conser-
vative lawmakers after Trump WASHINGTON—The Trump
agreed to back more a strin- administration took aim at a
gent stance on Medicaid. A1 consumer finance regulator
created after the 2008 finan-
 Trump and Tillerson
cial crisis, backing a legal ef-
hardened the U.S. approach to
fort to have the structure of
North Korea, ruling out direct
the Obama-era agency de-
talks and raising the option
clared unconstitutional.
of a pre-emptive strike. A6
The Justice Department,
 Trump expressed strong
now under Trump administra-
support for NATO and said
tion leadership, filed court
he’s “not an isolationist” af-
papers on Friday opposing
ter meeting with Merkel. A7
the Consumer Financial Pro-
 The president stuck to tection Bureau, an indepen-
his wiretapping claim and dent regulator, asking a fed-
brushed off tensions that his eral appeals court to order
YONHAP/REUTERS

administration ignited with the restructuring of the

the U.K. over the matter. A5 agency.
The CFPB is fighting to
 G-20 finance ministers
keep its current setup, which
clashed over the future of
DEVELOPING STORY: A North Korean soldier photographs Secretary of State Rex Tillerson at the South Korean border Friday. A6 gives its director protection
global trade as they opened
from political interference
a two-day meeting. A7
from the White House. The

Health Plan Picks Up Votes

 George Conway, the hus- administration in February
band of Trump adviser Kelly- said that President Donald
anne Conway, is set to be Trump believes the bureau as
nominated to run the Justice currently organized is unac-
Department’s civil division. A4 countable to the public.
 Makan Delrahim, cur- The dispute stems from a
rently deputy White House The House Republican press conference with German The huddle with Mr. Trump case in which the CFPB al-
counsel, is said to be health-care plan picked up an By Louise Radnofsky, Chancellor Angela Merkel, helped flip the vote of one law- leged PHH Corp., a New Jer-
Trump’s choice to serve as important endorsement on Fri- Kristina Peterson hours after hosting 13 GOP maker who had voted against sey mortgage lender, violated
Justice’s antitrust chief. A2 day from leaders of a large bloc and Michelle Hackman lawmakers, including leaders the bill only a day earlier, the Real Estate Settlement
of conservative lawmakers, af- of the conservative Republican when it cleared the House Procedures Act by accepting
 Died: Derek Walcott,
ter President Donald Trump said that support was Study Committee. Budget Committee amid dis- kickbacks from mortgage in-
87, Nobel-winning poet. A8
Trump backed more stringent “all coming together,” and The president said that his sent from three conservative surers.
curbs on funding for Medicaid, House leaders prepared for an administration had worked Republicans. Rep. Gary Palmer The Democratic-controlled
Business & Finance as well as work requirements expected vote on the bill on overnight to persuade figures Please see TRUMP page A4 Congress that created the
for its low-income beneficiaries. Thursday. such as Rep. Mark Walker (R., CFPB after the 2008 financial
While a second conservative “You have the conservative N.C.), who leads the 170-mem-  President stands by wiretap crisis gave the agency power
 The administration faction said it would withhold groups, you have other groups; ber study committee, to back claim; no U.K. apology.......... A5 over the markets for con-
took aim at the CFPB, votes needed to build a major- everybody wants certain the House bill after agreeing to  Justice Department appeals sumer-finance products and
backing a legal effort to ity for the legislation, Mr. things,” the president said at a add the Medicaid changes. ruling on travel ban............... A5 Please see CFPB page A2
have the structure of the
consumer watchdog de-

THE MEMOIR OF AN Sony, Paramount Vie to Be A-Listers

clared unconstitutional. A1
 British Airways’ parent
As Hollywood’s two worst-performing movie studios seek new leaders,
launched a budget service

INFAMOUS MURDERER
Paramount Pictures and Sony Pictures Entertainment also face more
flying between Europe and
fundamental questions about how to turn around their businesses
the U.S. West Coast with one-
after years of underinvestment by their parent companies. B4
way fares as low as $149. A1
 Goldman’s board cut Percentage of total domestic box office
Blankfein’s pay by 4% and
tied more of it to how the PARAMOUNT SONY
bank does for its investors. B1 ‘In Cold Blood’ killer’s long-lost manuscript raises questions about his motive
7.7% ($877M) 2016 8% ($912M)
 Google said it plans to give
BY KEVIN HELLIKER his manuscript years before the celebrated
advertisers more control over 5.9 (675M) 2015 8.4 (966M)
author completed “In Cold Blood.”
where their ads appear on-
KANSAS CITY, Kan.—In the half-century As it turned out, Hickock’s manuscript
line after major clients in the
since Truman Capote published “In Cold failed to find a publisher, then seemingly 9.7 (1.1B) 2014 11.6 (1.3B)
U.K. withdrew their spots. B1
Blood,” investigative journalists and schol- disappeared, rendering it a secret that Mr.
 Brazil is investigating ars have documented countless instances of Capote took to his grave.
some of the world’s biggest inaccuracy and fabrication in the so-called Now, the Hickock manuscript has resur- 8.4 (967M) 2013 9.9 (1.1B)
meatpacking companies true-crime book. faced, and it contains an implication that
for allegedly bribing food- But only now is it emerging that Mr. Ca- likely would have infuriated not only Mr.
sanitation inspectors. A8 pote committed an arguably significant act Capote but also the Kansas Bureau of Inves- 8.2 (914M) 2012 16 (1.8B)
of omission: He neglected to mention in his tigation, whose detectives he portrayed so
 Apple said it would es- Source: Box Office Mojo THE WALL STREET JOURNAL.
book or anywhere else that one of his pri- heroically in “In Cold Blood.”
tablish two additional re-
mary sources—the killer Richard Hickock— Hickock makes no case for his innocence.
search-and-development
tried turning into a competitor, by writing Far from it, he describes in bone-chilling
centers in China. B3
his own book-length manuscript about the detail how he and Perry Smith drove across
 Glencore is reaping re-
wards from a strategy of
withholding zinc from the
market to drive up prices. B1
slaughter of the Clutter family in rural Kan-
sas in 1959.
Mr. Capote’s correspondence from that
time shows that he knew about Hickock’s
the plains of Kansas, parked Hickock’s black
Chevy sedan in the driveway of the Clutter
farm and slipped through an unlocked door
into the family home late in the night be-
New Breed of Airline
 The Dow slipped 19.93
points to 20914.62, but
literary effort. And he was worried about
it, especially since the murderer finished
fore Nov. 15, 1959. It describes how they
Please see MEMOIR page A11 Upends World Travel
major indexes posted
BY ROBERT WALL airports on both sides of the
gains for the week. B10
Need Pruning Shears or a Ukulele? Try the Library LONDON—The race to the
ocean.
Last month, Norwegian Air
i i i bottom in trans-Atlantic air- Shuttle ASA said it was expand-

Inside In a push for new patrons, books make room for beach chairs
fares intensified Friday when
the parent company of British
Airways launched a budget ser-
ing service from Europe to in-
clude additional East Coast cit-
ies, with introductory prices of
NOONAN A15 BY LUCETTE LAGNADO in an era where overdue material. vice flying between Europe and as little as $65 one way. All
books aren’t al- Now, patrons can the U.S. West Coast with one- that has added pressure on leg-
Reach Across Librarian Kelly Harris re- ways enough. stuff money into a way tickets as low as $149. acy carriers, some of which
members when prepping for At age 35, Ms. “guilt jar” on the International Consolidated have lowered their own fares.
The Aisle, the summer meant acquiring Harris is hardly circulation desk. Airlines Group SA started sell- Norwegian Air, for instance,
the hottest beach books. an old-timer, Like other librari- ing tickets for the new carrier, is offering no-frills fares this
Mr. President “As long as we had multiple though she feels ans, she also is named Level, on Friday. The spring on select dates between
copies of the big summer like one. Now di- looking beyond launch, which the company had London and New York for about
reads, people came,” Ms. Har- rector of the lending books—far signaled in December, is the lat- $610 round trip. In response,
CONTENTS Sports........................ A12 ris says. Hampton Library, beyond. est move by a large legacy air- British Airways offered a com-
Books.................... C5-10 Style & Fashion D2-3
Business News B3-4 Travel.................... D8-10 Not anymore. she waxes nostal- The Southold line to fend off heightened com- parable $620 fare.
Food......................... D4-5 U.S. News............ A2-5 Last year, the Hampton Li- gic about when Free Library in petition from discount rivals. British Airways parent IAG
Heard on Street...B10 Weather................... A12 brary in Bridgehampton, N.Y., “The Da Vinci Beach chair Southold, N.Y., is Established budget airlines took its fight with the discount-
Obituaries............... A10 Wknd Investor....... B7
Opinion.............. A13-15 World News....... A6-8
where Ms. Harris works, Code” came out in lending fishing like Southwest Airlines Co. in ers one step further late last
started lending beach chairs, 2003. There was a six-month poles and tackle boxes, and has the U.S. and Ryanair Holdings year when it announced its own
as well as sand pails and shov- hold on the blockbuster a telescope aspiring stargazers PLC in Europe for decades have low-cost, long-haul service to
> els. thriller, she says, “and people can borrow. The Ann Arbor provided short-haul service for be based in Barcelona. On Fri-
Across the country, librar- would wait.” District Library in Michigan of- cost-conscious travelers. But in day, IAG said the newly named
ies are lending out things such Those days are over, she fers musical instruments in- recent years, a new breed of Level will offer service to Cali-
as bongo drums, chimney- says, eclipsed by streaming cluding boomwhackers and discounter has started flying fornia, using airports in Los An-
s Copyright 2017 Dow Jones &
cleaning brushes, karaoke ma- media, e-books and express theremins. The Shrewsbury between the two continents, of- geles and Oakland. Among
Company. All Rights Reserved chines and cotton-candy mak- delivery. To get people in the Public Library in Shrewsbury, fering super-cheap long-haul other initial destinations are
ers in a bid to attract patrons door, she eliminated fines on Please see LEND page A10 flights to a growing array of Please see FARES page A8
 A2 | Saturday/Sunday, March 18 - 19, 2017 * ***** THE WALL STREET JOURNAL.

U.S. NEWS
Fed Plays Wait-and-See on Growth
BY GREG IP have surged since Mr. Trump $336 billion more than it cuts rector, Mick Mulvaney, said.
Industrial
Output
More of the Same?
The Federal Reserve is a lot
less exuberant than financial
was elected president, and
confidence among both small
and large businesses has
Real GDP growth, annual change*
3%
taxes over the coming decade,
according to the Congressional
Budget Office. To satisfy dissi-
That suggests it could be
years before federal money
flows into infrastructure. If it
Flat in
markets about the economic
outlook, and the reason seems
to be fiscal policy. Investors ex-
soared. Chief executives of the
biggest companies expect
much higher sales, hiring and
2
dent Republican legislators,
the plan may have to be re-
worked to spend even less on
ever flows: Congressional Re-
publicans remain deeply skep-
tical of such spending. Paul
February
pect President Donald Trump capital spending than they did 1 health care. Ryan, speaker of the House of BY JEFFREY SPARSHOTT
and Congress just three months ago. Shares Only once health care is out Representatives, has suggested
ANALYSIS to deliver a of construction companies, for 0 of the way is Washington likely that the federal government WASHINGTON—U.S. indus-
solid boost to example, shot up on Mr. Forecast to turn to tax reform. Gary contribute as little as 2.5% to- trial production was flat in
growth. The Trump’s promise of a $1 tril- –1 Cohn, director of Mr. Trump’s ward a project’s cost. If so, the February, though underlying
Fed is much more agnostic. lion private-public infrastruc- National Economic Council, re- only projects that go forward figures suggest steady eco-
Based on what has come out of ture push. Mr. Trump is target- –2 cently said that tax reform are those that likely would nomic growth amid a pickup in
Washington lately, that agnos- ing growth in excess of 3% if would be revenue-neutral. have anyway, based on private manufacturing and mining ac-
ticism seems justified. all his plans are enacted. –3 That means any cuts to the returns. tivity.
On Wednesday, the Fed Yes, fiscal policy could af- 2007 ’09 ’11 ’13 ’15 ’17 ’19 corporate rate, after positive Even if Mr. Trump fails to Industrial production—a
raised its target range for fect the outlook, Fed Chair- feedback from economic deliver on taxes and infra- measure of output at factories,
*Measured in the fourth quarter of each year
short-term interest rates by a woman Janet Yellen told re- Note: 2017-19 are median projections of
growth, would have to be structure, his business-friendly mines and utilities—was un-
quarter of a percentage point. porters on Wednesday. “If we Federal Open Market Committee members made up through higher taxes stance, including rolling back changed from a month earlier,
Investors hadn’t expected the were to see a major shift in Sources: Commerce Dept.; Federal Reserve or less spending elsewhere. A regulation, would likely justify the Federal Reserve said Fri-
increase until officials signaled [private] spending reflecting (forecasts) lower corporate rate would more investment and growth. day. Output for January de-
it two weeks ago, and many those expectations, that could THE WALL STREET JOURNAL. justify more optimism on in- Repealing Obamacare’s taxes clined a revised 0.1% instead of
assumed that the Fed had very well affect the outlook. vestment and growth, but rev- on investment income and wa- an initially estimated 0.3%
turned more bullish on the I’m not seeing it at this point.” lower adjusted for inflation. enue neutrality makes success tering down its means-tested drop.
economy. Mr. Trump’s budget this (The levels but not the growth more elusive because it means subsidies should at the margin Overall production last
It hasn’t. The median pro- week proposed large increases rates would be higher once ex- that someone has to pay improve incentives to invest month was held in check by
jection of officials’ forecast in spending on defense and tra spending on overseas mili- higher taxes or accept much and work. Still, the benefits warmer-than-usual weather,
this year is for 2.1% growth, homeland security, but also tary operations is included.) less federal spending. For ex- would probably take several which depressed demand at
unchanged from December and largely offset them with pro- While Congress is unlikely to ample, importing industries years to show up. utilities, the Fed said. Else-
right in line with the average posed cuts to a broad array of agree to all of Mr. Trump’s are fighting House Republi- To change the central where, the report was broadly
for the last eight years. It still domestic spending programs. planned cuts, the overall pack- cans’ plan to pay for a corpo- bank’s plans, they would have positive.
expects unemployment to av- If enacted, authorized federal age suggests rumors of the rate rate reduction by taxing to spur a lot more spending “The stagnation in indus-
erage 4.5% over the next three discretionary spending, which death of austerity have been imports. and growth now. And until the trial production in February
years, down a little from 4.7% excludes entitlements such as exaggerated. And what of Mr. Trump’s in- Fed sees signs of that happen- was entirely due to another
currently, and to increase in- Medicare and Social Security, Meanwhile, Republicans’ frastructure push? “We think ing, it will stick to Plan A. weather-related contraction in
terest rates two more times both this fiscal year and next planned replacement for the order is health care, tax utilities output, with activity
this year. would be $1.07 trillion, un- Obamacare would cut federal policy and then infrastruc- The Numbers column in the mining and manufactur-
By contrast, stock markets changed in nominal terms and spending on health care by ture,” Mr. Trump’s budget di- will resume next week. ing sectors continuing to re-
cover strongly,” Andrew

U.S. WATCH
Parade Ground: Revelers Celebrate St. Patrick’s Day
DETROIT
DNA Appears to Tie
Suspect to Murder
Detroit officials said DNA evi-
dence appears to tie a suspect
involved in a gunbattle with po-
lice this week to the murder of
a Wayne State University officer
in November.
The shootout on Wednes-
day between the 60-year-old sus-
pect, Raymond Durham, and po-
lice left two officers injured. They
were still hospitalized and im-
proving, police officials said Friday.
Detroit Police Chief James
Craig said his department received
confirmation that DNA links Mr.
Durham to the scene of the mur-
der of Wayne State Police Officer
Collin Rose on Nov. 22. Chief Craig
described Mr. Durham as a “prime
suspect” in the murder and said
the investigation was continuing.
Mr. Durham had yet to be
charged in either shooting inci-
dent as of Friday, and it wasn’t
clear if he was represented by
an attorney. Chief Craig said the
police hadn’t yet presented evi-
JOHN R. EHLKE/ASSOCIATED PRESS
proved, according to an early
gauge of sentiment.
The University of Michigan
said its preliminary reading of
consumer sentiment rose to
97.6 in March from February’s fi-
nal reading of 96.3. It was up
7.3% from March 2016.
The recent rise in optimism
reflects a turnaround from con-
sumers’ attitudes in October,
when sentiment had matched a
two-year low. The index reflect-
ing sentiment on current eco-
nomic conditions rose 2.7% from
February to 114.5, the highest
since November 2000.
—Austen Hufford
BASEBALL
New Jersey Allegiance Factory Floor
Lies With Yankees U.S. manufacturing production
The Garden State’s baseball
loyalty goes to the Bronx. With-
out a Major League Baseball
team of their own, New Jersey
residents mainly root for the New
York Yankees, a Quinnipiac Uni-
versity poll released Friday found.
The New York Mets ranked
Hunter, U.S. economist at Capi-
tal Economics, said in a note to
clients.
Manufacturing output,
which is the biggest compo-
nent of industrial production,
climbed 0.5% in February to
reach its highest level since
July 2008.
U.S. factory activity was
stagnant through much of
2016 but appears to have ac-
celerated in recent months.
February manufacturing out-
put was up 1.2% from the year-
earlier month.
“This may not be a manu-
facturing boom, but the sector
is racking up solid growth that
is a very welcome change at
beleaguered factories,” said
Michael Montgomery, U.S.
economist at IHS Markit.
rose to the highest level since
July 2008
120
Recession
110
100

dence to the Wayne County third in popularity among New

Prosecutor’s Office. Jersey residents, after the Phila-
—Kris Maher delphia Phillies. Thirty-nine percent
of fans in the state claimed the 90
ECONOMY Yankees as their preferred team.
The poll, conducted by phone
Personal Finances this month, found the Yankees’ 80

Help Boost Sentiment
THE LUCK OF THE IRISH: The wearing of the green was on display along the parade route Friday Consumers in March felt bet-
as the town of Erin, Wis., marked St. Patrick’s Day. ter about the economy than
they have in the past 17 years
as their personal finances im-
popularity has slipped since the
last time Quinnipiac surveyed
New Jersey fans, in 2012. Then,
51% of respondents picked the
Yankees as their favorite team.
—Kate King
2000 ’10
Notes: Seasonally adjusted; 2012=100
Source: Federal Reserve
THE WALL STREET JOURNAL.

CFPB problems under the Constitu-

tion because the bureau direc-
tor isn’t sufficiently answer-
The CFPB, unlike some
other agencies, has the au-
thority to conduct its own lit-
ill-gotten financial gains. Mr.
Cordray took a much stiffer
view of the law and of the ex-
not think that,” said Lucy
Morris, a former deputy en-
forcement director of the
Trump Settles
Continued from Page One
able to the president.
“There is a greater risk
igation, meaning it doesn’t
have to rely upon the Justice
tent of PHH’s alleged viola-
tions, imposing a penalty of
CFPB who is now a partner at
Hudson Cook LLP.
On Pick for
an unusual amount of inde-
pendence. It is headed by a
single director who can be re-
that an independent agency
headed by a single person will
engage in extreme departures
Department.
This latest feud is perhaps
the most prominent since the
$109 million.
A three-judge D.C. Circuit
panel last year ruled that Mr.
The case has attracted
close legal attention, with
trade associations, consumer
Antitrust Job
moved by the president only from the president’s executive Justice Department and the Cordray’s interpretation of groups, lawmakers and attor- BY BRENT KENDALL
for cause, such as negligence policy,” the department said Federal Trade Commission the real estate law was incor- neys general from both par-
or malfeasance. in the brief, filed with the U.S. went head to head a decade rect. And it said the CFPB “vi- ties weighing in. WASHINGTON—Makan Del-
The six-year-old bureau Court of Appeals for the Dis- ago. The FTC had sought Su- olated bedrock due process Legal observers said D.C. rahim, currently deputy White
has been criticized by Repub- trict of Columbia Circuit. The preme Court review after it principles” by applying Mr. Circuit judges will likely pay House counsel and an anti-
licans since its inception for president should be able to lost a case in the lower courts Cordray’s interpretation ret- close attention to the Justice trust enforcer under George
what they see as heavy- fire the director at will, the challenging an agreement be- roactively. Department’s filing, although W. Bush, is President Donald
handed and unnecessary regu- department said. tween pharmaceutical compa- Two judges on the panel the CFPB still may enjoy bet- Trump’s choice to serve as the
lation of firms that sell loans, The CFPB declined to com- nies that it said delayed the went further, declaring the ter odds of success this time antitrust chief at the Justice
credit cards and other finan- ment. It is due to file a new entry of cheaper generic CFPB’s single-director struc- around. A majority of D.C. Department, according to peo-
cial products. legal brief in the case by the drugs. ture unconstitutional. To fix Circuit judges are Democratic ple familiar with the matter.
CFPB Director Richard end of March. The Justice Department the violation, the court gave appointees who could be The selection of Mr. Delra-
Cordray has defended the bu- Public legal disputes be- filed a brief urging the Su- the president power to re- more sympathetic to the bu- him would likely send anti-
reau’s independent structure tween different parts of the preme Court not to take the move the director for any rea- reau than the three Republi- trust policy on a less interven-
and mandate as an enforce- executive branch are rare. The FTC’s case, a move that son. can appointees on the earlier tionist path than was followed
ment agency, saying it has Justice Department repre- prompted consternation At the appeal by the CFPB, panel that ruled against the under the Obama administra-
helped consumers across the sents many government agen- within the commission. Ulti- a larger roster of the D.C. Cir- CFPB. tion, which was aggressive in
country. cies in court, so disagree- mately, the justices chose not cuit vacated that ruling and As Republicans have esca- challenging mergers it be-
The Justice Department ments would normally get to hear the FTC’s appeal. set the case for rehearing by lated attacks on the CFPB, lieved suppressed competition.
said the CFPB’s structure cre- worked out behind the scenes, The CFPB’s case against the entire court, with oral ar- PHH has raised the ante in its The announcement of Mr.
ates separation-of-powers not in dueling court briefs. PHH has underscored the guments set for May 24. Mr. case. In a recent and related Delrahim’s nomination could
power of agency Director Cordray’s term isn’t up until legal filing, the company said come as soon as this coming
THE WALL STREET JOURNAL (USPS 664-880)
Richard Cordray. July 2018. the CFPB was plagued by week, one person said.
(Eastern Edition ISSN 0099-9660) (Central Edition ISSN 1092-0935) It first went to an adminis- The Justice Department in “many constitutional prob- Mr. Delrahim has a long
(Western Edition ISSN 0193-2241) trative judge who found PHH the last months of the Obama lems” and that giving the professional background in an-
Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y. 10036
Published daily except Sundays and general legal holidays. violated the law but ordered a administration filed a brief president power to remove titrust law, though his current
Periodicals postage paid at New York, N.Y., and other mailing offices. relatively small sanction: a supporting the CFPB’s efforts the director at will won’t be White House work focuses
POSTMASTER: Send address changes to The Wall Street Journal, 200 Burnett Rd., Chicopee, MA 01020. $6.4 million disgorgement of to get the case reheard. enough to resolve the case. heavily on judicial nomina-
All Advertising published in The Wall Street Journal is subject to the applicable rate card, copies of
which are available from the Advertising Services Department, Dow Jones & Co. Inc., 1155 Avenue of Some former CFPB officials “The appropriate remedy is to tions, including the president’s
the Americas, New York, N.Y. 10036. The Journal reserves the right not to accept an advertiser’s order. said they never expected the strike down the CFPB in its selection of Judge Neil Gor-
Only publication of an advertisement shall constitute final acceptance of the advertiser’s order.
Letters to the Editor: Fax: 212-416-2891; email: wsj.ltrs@wsj.com CORRECTIONS  PHH case would spiral into
such a significant challenge
entirety,” lawyers represent-
ing PHH wrote.
such for the Supreme Court.
Mr. Delrahim served in the
NEED ASSISTANCE WITH YOUR SUBSCRIPTION?
CONTACT CUSTOMER SUPPORT.
AMPLIFICATIONS on the scope of a government
agency’s powers.
The Justice Department on
Friday didn’t embrace that
Justice Department’s antitrust
division as a deputy assistant
Readers can alert The Wall Street “Did I think it would be- broader argument. attorney general from 2003 to
By web: customercenter.wsj.com Journal to any errors in news
By email: wsjsupport@wsj.com articles by emailing come the huge lightning rod —Yuka Hayashi 2005 and previously worked
By phone: 1-800-JOURNAL (1-800-568-7625) wsjcontact@wsj.com or by for the agency on whether it and Rachel Witkowski as a top Republican staffer on
Or by live chat at wsj.com/livechat calling 888-410-2667.
was constitutional? No, I did contributed to this article. the Senate Judiciary panel.
THE WALL STREET JOURNAL.
Top of the Charts
Sioux Falls has had the fastest growth in residents of any
metropolitan area in the Midwest of over 50,000 residents.
70%
60
50
40
30
20
10
0
–10
–20
1990 ’95 2000 ’05
Source: Bureau of Economic Analysis
Sioux Falls Prospers as Other Cities Slump
Financial firms, health
care help South Dakota
metro area reduce
reliance on agriculture
BY SHIBANI MAHTANI
SIOUX FALLS, S.D.—When
Ruth Sturm told East Coast
friends she was moving here,
many had to ask where it was.
“I got a lot of, ‘Do people live
in teepees?’ ” said the 26-year-
old digital strategist, who is
among the 20,000 new people to
settle in this once-sleepy city of
178,500 in the past five years.
Despite the sometimes
harsh weather, she now boasts
about her new home, which in-
cludes four breweries within
walking distance and a thriv-
ing theater and music scene.
“I legitimately fell in love,”
said Ms. Sturm, who grew up
in the suburbs of Washington,
D.C. “I have never seen a place
where people were honestly as
excited about the growth and
change in their city.”
Many areas of the Midwest
have struggled with population
loss as manufacturing has de-
clined and farms have needed
less labor. But Sioux Falls is on
a tear after undergoing an un-
likely transformation into a fi-
nancial and health-care power-
Gorsuch Criticizes Agency Powers As Scandal Unfolds,
BY BRENT KENDALL
WASHINGTON—Supreme
Court nominee Neil Gorsuch,
whose confirmation hearing
begins Monday, has been un-
usually forceful with his con-
cerns that judges allow gov-
ernment agencies too much
power to make policy, a red
flag for liberals who worry
that such views could weaken
environmental, labor and
health regulations.
But in a twist, especially
for a nominee of President
Donald Trump, some of Judge
Gorsuch’s best-known cases
criticizing the power of the
administrative state have
come in defense of illegal im-
migrants, a sign that his ap-
proach could cut in unpredict-
able ideological directions.
The way a government
panel treated one illegal immi-
grant left such an impression
on Judge Gorsuch that he dis-
cussed it at length in a speech
in April last year.
“Just describing what hap-
pened here might be enough
to make James Madison’s
head spin,” the judge said at
Case Western Reserve Univer-
sity School of Law. He retold
the tale of Mexican immigrant
Alfonzo De Niz Robles, who is
married to a U.S. citizen, has
four U.S. citizen children, and
spent about a decade trying to
obtain permission to stay in
the U.S., only to run up
against a new policy interpre-
tation from the Board of Im-
migration Appeals.
Judge Gorsuch’s concerns
about agency power stem
from a pivotal 33-year-old Su-
preme Court decision, Chev-
ron v. Natural Resources De-
fense Council. The case
established that courts should
defer to the judgment of fed-
eral agencies when interpret-
ing ambiguous laws.
* * * * * * * *
LARGEST GROWTH
Sioux Falls, S.D. 63%
Columbia, Mo. 55
Fargo, N.D.-Minn. 52
U.S. 32
LARGEST DECREASE
Danville, Ill. -10
Youngstown-Warren-
Boardman, Ohio-Pa. -10
Weirton-Steubenville
W. Va. -Ohio -15
’10 ’15
THE WALL STREET JOURNAL.
house in the middle of
cornfields.
For decades, Sioux Falls was
a typical regional farm city,
with a still-operational slaugh-
terhouse, grain elevators and a
livestock auction. In 1980, its
population was about 81,000.
Then, in 1981, Citibank relo-
cated credit-card operations to
Sioux Falls to take advantage of
a relatively new state law that
eliminated caps on interest
rates and fees, even if a bank’s
headquarters was elsewhere
and the account holders lived
out of state. Soon, other banks,
such as Wells Fargo, followed.
“Citibank’s arrival was a
complete breakthrough,” said
Evan Nolte, former president
of the Sioux Falls Area Cham-
ber of Commerce. “It exposed
us to the reality that we could
move away from agriculture
and become a financial hub.”
Dave Swenson, an economist
at Iowa State University, said
Sioux Falls is a bit of a “freak”
that was able to grow based on
the state’s unique law loosen-
ing financial restrictions.
“What was done at the time
was considered heresy, and it
paid off well. Much like the
heresy of gaming and easy di-
vorces in Nevada,” said Mr.
Swenson. While other states
have also loosened caps on in-
terest rates, the Sioux Falls fi-
JIM WATSON/AGENCE FRANCE-PRESSE/GETTY IMAGES
Neil Gorsuch, center, has criticized federal agency power in cases that defended illegal immigrants.
The case stemmed from a
lawsuit by environmentalists
challenging what they saw as
industry-friendly pollution
rules from Environmental Pro-
tection Agency. The agency at
the time was run by Judge
Gorsuch’s mother, Anne Gor-
such Burford. The EPA won.
The Chevron precedent ini-
tially benefitted Republican
presidents seeking to lighten
regulation, but has since
boosted Obama administration
efforts to use longtime laws to
support new regulations on is-
sues like climate change.
To Judge Gorusch, who sits
on the Denver-based 10th Cir-
cuit Court of Appeals, Chevron
creates problems because it
can give agencies room to en-
act policies better left to Con-
gress, without a robust review
by judges.
“Courts are not fulfilling
their duty to interpret the law
and declare invalid agency ac-
U.S. NEWS
Construction in Sioux Falls, S.D., this month. The city’s unemployment rate, at 2.8%, is among the lowest in the U.S.
The Sanford Research Lab in Sioux Falls, where work includes investigating rare children’s diseases.
nancial industry has “taken on
a life of its own,” he added.
The city’s population jumped
63% over the past 15 years, the
fastest growth of any metro area
of more than 50,000 people be-
tween Ohio and North Dakota. A
building boom downtown
pushed the value of construction
permits to $701.8 million last
year, up from $282.9 million in
2010, city records show.
The city’s unemployment
rate is among the lowest in the
tions inconsistent with those
interpretations,” he wrote of
the Chevron effect in a second
immigration case last year.
In both immigration cases
Judge Gorsuch took aim at the
BIA for what he saw as play-
ing bait-and-switch with ille-
gal immigrants trying to navi-
His concerns about
federal agencies stem
from a 33-year-old
Supreme Court case.
gate seemingly conflicting
provisions on seeking U.S. res-
idency.
Some courts had inter-
preted the conflict in a way
that was more favorable to
immigrants, letting them seek
legal status even if they had
nation, at 2.8%, and Sioux Falls
helped make South Dakota the
fastest-growing state economy
in the third quarter last year,
according to the Bureau of
Economic Analysis.
Growth has come without
the traditional economic driv-
ers of many smaller cities, such
as the oil boom playing out in
North Dakota, a large univer-
sity or a state legislature.
“We’re a boomtown, and we
don’t have any oil,” said Sioux
previously entered the U.S. il-
legally and were again in the
country without permission.
The BIA effectively over-
ruled the courts, saying such
immigrants needed to leave
the U.S. for 10 years before
being eligible for resi-
dency. The BIA then sought to
apply that interpretation ret-
roactively.
Judge Gorsuch, joined by
two other judges, in both
cases barred that effort. In
one ruling he explicitly called
for reconsideration of the
Chevron precedent.
His views on the issue
make him much the opposite
of Judge Merrick Garland,
President Barack Obama’s
nominee for the current Su-
preme Court vacancy who was
never considered by the Sen-
ate. Judge Garland is consid-
ered particularly deferential
to agencies under the Chevron
standard.
Saturday/Sunday, March 18 - 19, 2017 | A3
Falls Mayor Mike Huether.
In 2007, the city received the
first $400 million of what would
grow to $1 billion in donations to
the regional health-care system
from billionaire T. Denny San-
ford, a longtime South Dakota
resident who made his fortune
at the helm of First Premier
Bank, which issued high-interest
credit cards to customers with
poor credit histories.
The rechristened Sanford
Health, together with another
Marines Fight Online
BY BEN KESLING
WASHINGTON—A small
group of Marines that contends
the official military response to
a nude-photo and cyber-harass-
ment scandal has been too slow
is pursuing a vigilante-like
name-and-shame campaign in
hopes of forcing swifter action.
Both active duty and veteran
Marines said they have for days
been providing names to inves-
tigators, or publishing them on
the internet, identifying service
members allegedly associated
with websites that have posted
nude photos of female Marines
and harassed other service
members.
“Marine leadership hasn’t
done much of anything the last
six years of this,” Marine vet-
eran Shawn Wylde said in an
email to The Wall Street Journal.
Marine Commandant Gen.
Robert Neller said he first
learned of widespread sharing
of nude photographs by Marines
in January, and then moved to
shut down the main site in-
volved and launch an investiga-
tion. Since then the Marine
Corps and other branches have
broadened the investigation.
Mr. Wylde, who has a Face-
book page with tens of thou-
sands of followers, has been
posting names of people alleg-
edly affiliated with controversial
social-media sites, including the
group “Marines United,” attract-
ing attention from investigators.
Mr. Wylde said he is acting
now because of a March 10
statement of condemnation
about the cyber harassment by
Defense Secretary Jim Mattis, a
retired Marine general.
“Once General Mattis came
out the other day against this
online harassment we took it as
a signal to move forward in ex-
GREG LATZA FOR THE WALL STREET JOURNAL
provider, named Avera, are the
biggest employers in the city,
with some 16,000 workers com-
bined. Sanford Health has also
branched into medical research.
The nonprofit’s medical-re-
search team is doing ground-
breaking work in rare chil-
dren’s diseases like Battens
disease, a neurodegenerative
disorder, and Type 1 diabetes.
Now, the growth of health
care and the strong financial
sector have spurred other in-
dustries, Mr. Swenson said.
When Lawrence & Schiller,
now the state’s biggest ad
agency, set up shop in Sioux
Falls in 1976, it was one of two
players, said Chief Executive
Scott Lawrence. Now, there are
at least two dozen.
The growth has come with
downsides. Construction com-
panies say finding workers is
getting tougher and homes can’t
be built fast enough to meet de-
mand. Residents say the popula-
tion of youngsters is rising
faster than the city can handle,
leading to crowded day-care fa-
cilities and elementary schools.
Sioux Falls economic devel-
opers say the only way to sus-
tain the growth is to embrace
immigration and attract diverse
residents, sometimes a tough
sell in a city in the middle of a
heavily conservative state where
about 82% of people are white.
posing these creeps,” he said.
Other social media users
have begun to follow his exam-
ple by posting names and pho-
tos of Marines and veterans sus-
pected of involvement in the
offending online sites.
Gen. Neller was criticized by
senators at a hearing last week
for his handling of the situation.
But those familiar with the pro-
cess said Gen. Neller, while an-
gry about the actions of some
Marines, also is constrained by
military law.
After victims and their allies
bypassed the normal military
chain of command, the Marine
Corps disavowed the effort.
“These actions are an indica-
tion that many Marines, former
Marines and individuals who re-
spect our organization are in-
censed by the recent reports of
online misconduct and are mak-
ing individual efforts to acceler-
ate justice,” said Maj. Clark Car-
penter, a spokesman for the
Marines. “However, we must op-
erate within the boundaries of
the law.”
Mr. Wylde is himself associ-
ated with a Facebook site and
webpage that has sometimes
crude content.
He also has a checkered
past in the Marines, acknowl-
edging he defrauded the De-
partment of Veterans Affairs
of some $100,000. The Justice
Department said he pleaded
guilty in 2013 and was sen-
tenced to four months in
prison in 2014, something his
adversaries on social media
highlight in trying to discredit
his efforts.
He agreed to pay back the
money, documents show, and
said his current campaign is a
form of atonement. “I’m partly
doing this as a way to make
up for my past,” he said.
A4 | Saturday/Sunday, March 18 - 19, 2017 P W L C 10 11 12 H T G K B F A M 1 2 3 4 5 6 7 8 9 O I X X **** THE WALL STREET JOURNAL.

U.S. NEWS

Midterm Campaigns Are Starting Early

GOP group is running To prevent the House from once a week beginning in the Dan Sena said the strategy is
flipping, the Congressional spring of 2018 and every day superior because it defers to
ads and canvassing on Leadership Fund, the House as the vote nears. local expertise and will allow
behalf of lawmakers in GOP’s super PAC, plans to Each of the past three organizers to coordinate di-
raise and spend $100 million House elections in Mr. Bacon’s rectly with candidates.
certain swing districts during the 2018 election cy- district has been decided by The potential 2018 Demo-
cle—twice what it spent in less than 6,000 votes. cratic field against Mr. Bacon
BY REID J. EPSTEIN 2016 and eight times what it “If we can get one-third of is unsettled, but Howard W.
spent in the 2014 midterm. Trump voters who don’t tradi- Buffett, grandson of Berkshire
OMAHA, Neb.—Rep. Don The political-action com- tionally vote in a midterm, the Hathaway CEO Warren Buffett,
Bacon was sitting in church on mittee is placing paid staff in election is over and Don Bacon has been a recruiting target of
a recent Sunday when the 20 competitive House districts will easily be re-elected,” Mr. the DCCC in past election cy-
freshman Republican stole a with the goal of installing a Bliss said. cles. A former Obama adminis-
look at Facebook on his clinical Republican turnout Democrats are employing tration official who now
iPhone. He was surprised to machine to protect incum- decidedly different tactics, teaches at Columbia Univer-
see a super PAC advertisement bents yoked to a president with the Democratic Congres- sity and the University of Ne-

NATI HARNIK/ASSOCIATED PRESS

for his own re-election—which who so far has a net unfa- sional Campaign Committee braska, he said he isn’t run-
is still 20 months away. vorability rating. It is spend- funding local staff for state ning for Congress.
To try to preserve control ing $30,000 a month in each parties in 20 districts, includ- “Whomever is saying that
of the House in the face of an- district on online ads like the ing Mr. Bacon’s. must just be brainstorming
ticipated stiff headwinds, Re- one Mr. Bacon saw in church. In Omaha, the DCCC-funded names, not speaking from an
publican operatives are start- Corry Bliss, the super PAC’s official is Jacob Denniston, a informed perspective,” Mr.
ing 2018 congressional executive director, is aiming to 2016 graduate of the Univer- Buffett said in an email.
campaigns earlier than ever. replicate the success he had as sity of Nebraska. Over lunch at As for Mr. Bacon, while
The party of the sitting manager of Ohio Sen. Rob A GOP super PAC is running ads on behalf of Rep. Don Bacon. a West Omaha burger joint, “grateful that folks want to
president has lost an average Portman’s 2016 campaign. Mr. Denniston described his support me,” he said in an in-
of 25 seats in midterm elec- CLF opened its first offices later this year. school social-studies students role as helping disparate terview that he doesn’t plan to
tions since 1994 and lost ma- last month in Omaha and Des Mr. Bliss’s goal is to find who spend hours knocking on grass-roots liberal groups that get his own re-election cam-
jorities three times. Republi- Moines, where the super PAC people who voted for Mr. doors and making phone calls. have emerged since Mr. paign up and running until a
cans are focusing intently on is protecting Iowa Rep. David Trump but typically skip mid- Mr. Bliss said voters will Trump’s election. He isn’t en- year from now.
House races where their 23- Young. Two more are due to term elections. To that end, hear from a CLF volunteer on gaged in the voter targeting “People,” Mr. Bacon said,
seat majority may be most open this month in Southern his team of three aides in the phone or at their door at that CLF is doing. “obviously don’t like 365-days-
vulnerable. California. The rest will come Omaha has recruited 50 high- least once a month this year, DCCC Executive Director a-year campaigning.”

Conway’s Husband Eyed for Justice Job Trump Could Benefit

BY ARUNA VISWANATHA
AND BRENT KENDALL From Tax Legislation
WAS HI N GT O N— G e o rge BY RICHARD RUBIN disclosures found that he had
Conway, the husband of senior an estimated 2016 pretax in-
White House adviser Kellyanne WASHINGTON—The first come of $160 million, with
Conway, is set to be nominated big tax cut moving through $83.6 million of that coming
to run the Justice Depart- Congress under President Don- from rental income. That
ment’s civil division, according ald Trump would likely benefit would yield an annual tax sav-
to people familiar with the the president himself, poten- ings of $3.2 million on rental
matter. tially saving him millions of income alone if the investment
The position would put him dollars in taxes on his rental income tax were repealed.
at the forefront of defending income next year and even The White House and a
the controversial executive or- more money on other income Trump Organization spokes-
der on immigration and fight- if he wins a second term. woman declined to comment.
ing other lawsuits against the Mr. Trump’s decision to Mr. Trump’s representatives
Trump administration. continue owning his businesses criticized the 2016 analysis,
Mr. Conway, a partner at without running them means saying the income number was
Wall Street law firm Wachtell, that he is no longer considered wrong.
Lipton, Rosen & Katz, had a real-estate professional for Congress created the net in-
been in the running for other tax purposes. That increases vestment tax in the 2010
positions at the Justice De- the tax’s effect on him and en- health law with two aims: to
partment. He has worked on hances his benefit from the pay for the expansion of health
major securities-law cases and proposed repeal, which would insurance and to subject what
merger and acquisition litiga- take effect in 2018, according Democrats called “unearned
tion, according to his law-firm to accountants and tax law- income” to the same 3.8% tax
biography. yers.
Mr. Conway didn’t respond “In terms of his rental in-
to a request to comment. The
Justice Department declined to
come, he would have been
largely unaffected by repeal” if
‘There’s no just
comment. he were still a private citizen, practical way he can
Ms. Conway, a Republican
pollster who helped turn
said Tony Nitti, an accountant
at Withum Smith & Brown.
qualify as a real-estate
around Donald Trump’s presi- “There’s no just practical way professional now.’
dential campaign, has been a he can qualify as a real-estate
frequent presence on televi- professional now that he’s
sion defending Mr. Trump and president of the United States.”
MATT ROURKE/ASSOCIATED PRESS

his policies. She took on a se- The repeal of the 3.8% tax— imposed on top earners’
nior role in the campaign last known as the net investment wages. It includes rent, capital
summer, when Mr. Trump income tax—is the largest tax gains, interest and dividends.
trailed Democratic candidate cut contained in the House Re- The tax, which applies to in-
Hillary Clinton by 16 percent- publican health-care bill. It dividuals with incomes over
age points in a Wall Street would reduce federal revenue $200,000 and married couples
Journal/NBC poll. by $157.6 billion over a decade, with incomes over $250,000,
This week, Ms. Conway was with most of that flowing to took effect in January 2013.
criticized for comments she the top 1% of households. The tax’s structure created a
made in defense of the presi- George Conway with his wife, senior White House adviser Kellyanne Conway, in Washington. Repealing the tax was part gap, one that the Obama ad-
dent’s unsubstantiated of the GOP health agenda long ministration tried but failed to
claims—which he reiterated rulings that blocked Mr. from six Muslim-majority na- tive court rulings. That the before Mr. Trump won the close. Wage earners and inves-
Friday—that he was wire- Trump’s revised executive or- tions, a move the White House new order was also blocked is party’s nomination. tors paid it, but business own-
tapped by his predecessor. A der on immigration. That dis- says would help fight terror. increasing tensions between It is impossible to know ers could avoid the 3.8% tax on
bipartisan statement from the pute could arrive soon at the Among Mr. Conway’s first the White House and the how much Mr. Trump would their profits, as long as they
leaders of the Senate Intelli- Supreme Court. tasks—if confirmed soon by courts, and sets the stage for actually benefit because he were actively involved in their
gence Committee on Thursday Judges in Hawaii and Mary- the Senate—would be to man- appellate proceedings that hasn’t released his tax returns businesses.
said they have seen no evi- land halted Mr. Trump’s latest age the defense of the order. could have even higher stakes and because his financial dis- It is likely Mr. Trump fell
dence for such a claim. effort this week after finding Mr. Trump’s revised travel than the initial round of litiga- closures appear to conflate into that gap before he became
Mr. Conway’s nomination is he likely engaged in religious restrictions made several con- tion a month ago. revenue and income in places. president, assuming that his
set to come as the Justice De- discrimination when he sought cessions from his original Jan. —Shane Harris But a previous Wall Street adjusted gross income was
partment prepares appeals of to bar U.S. entry for people 27 order, in response to nega- contributed to this article Journal review of his financial high enough.

TRUMP trist Republicans have a differ-

ent set of demands. Democrats
in the closely divided Senate
oppose the GOP overhaul.
Donald Trump’s
First 100 Days
British intelligence was involved.

u North Korea: Secretary of

ter Haider al-Abadi of Iraq to
the White House.
who aren’t disabled, elderly or
parents. Some GOP-led states
have sought such provisions in
the past; they have typically
Continued from Page One Among other things, some The administration’s latest State Rex Tillerson said that u The president has invited been blocked by federal ad-
(R., Ala.) told reporters that he Senate Republicans say the bill actions and agenda at a glance Washington wouldn’t engage in members of the Congressional ministrators of Medicaid.
had been won over by the new must give more generous sup- negotiations with North Korea Black Caucus to meet him at House Minority Leader
agreement on Medicaid, which port to older, rural and low-in- and that a pre-emptive military the White House on Wednes- Nancy Pelosi (D., Calif.) said
would give states more choices come residents to help them FRIDAY strike and tougher sanctions day. Friday Republicans shouldn’t
in how they receive federal buy health insurance if they u Health-care overhaul: Presi- were among the options on the vote on their bill until the Con-
funding for the program. don’t get it at work. Centrists dent Donald Trump said he won table in dealing with Pyongyang. QUOTE gressional Budget Office esti-
But it wasn’t clear how want to tweak the House bill’s the support of an influential set “At least we have something in mates how the latest changes
many rank-and-file members new system of tax credits, tied of House conservatives for the u NATO: Mr. Trump voiced common, perhaps.” would affect Americans.
of the study committee were largely to a person’s age, GOP leaders’ health-care plan, strong support for the North —Mr. Trump, referring to “House Republicans’ contempt
on board, or whether the bill which would replace the tax agreeing to support them in Atlantic Treaty Organization and U.S. surveillance of Ms. Merkel’s for transparency matches their
has the support of enough Re- credits given under the Afford- their calls to curb Medicaid said he is “not an isolationist” phone when asked Friday about contempt for the working fam-
publicans to pass the House. able Care Act to a narrower funding and adding work re- after meeting with Chancellor his allegation that former Presi- ilies who will be devastated by
No House Democrats are ex- set of people. quirements for its beneficiaries. Angela Merkel of Germany for dent Barack Obama wiretapped Trumpcare,” she said.
pected to back the bill. Rep. Steve Scalise (R., La.), the first time since taking office. Trump Tower In another challenge to the
A smaller group of conser- who as House majority whip is u Wiretap allegation: Mr. bill, four GOP governors an-
vatives, the House Freedom charged with rounding up law- Trump dug in on his unsubstan- WHAT’S AHEAD “It’s much, much better to talk nounced their opposition to
Caucus, also could yet torpedo makers’ votes, said he was un- tiated claim that Trump Tower u On Monday, Mr. Trump is to one another—and not about the House bill, saying they be-
the legislation if all members ruffled by the prospect that was tapped by his predecessor scheduled to meet with Bill one another.” lieved it went too far in curb-
withhold their support. That the legislation could see alter- and brushed off the controversy Gates, co-founder of Microsoft —Ms. Merkel, speaking ing Medicaid programs that
group’s head, Rep. Mark Mead- ations in the Senate, as his re- ignited by the White House’s ci- Corp. Later in the afternoon, he about her meeting with Mr. they had chosen to expand.
ows (R., N.C.), said he had no sponsibility was to pass a bill tation of a news report alleging plans to welcome Prime Minis- Trump on Friday In a letter to congressional
reason to believe its “core con- out of the House. “If they want leaders, Govs. Asa Hutchinson
cerns” had been addressed. “At to make additional changes, of Arkansas, Rick Snyder of
this time, the majority of our that’s called the legislative to the people who most need made to the tax credits” to number of people participating Michigan, Brian Sandoval of
members cannot support it. process,” he said. the help, meaning lower-in- help people before they can in the program. Both methods Nevada and John Kasich of
However, we will continue to Changes in the Senate, how- come Americans and older enroll in Medicare at age 65, would significantly curtail the Ohio cited the potential for the
be in communication with the ever, would need to win House Americans,” said Rep. Carlos said Rep. Phil Roe (R., Tenn.). federal government’s contri- bill to strip people of coverage.
White House,” he said. approval, presenting GOP lead- Curbelo (R., Fla.), who is work- The proposed changes that bution, because it would send Mr. Snyder said in an inter-
The changes, aimed at ers there with the challenge of ing with Sen. John Thune (R., won conservative support in- states a fixed amount, rather view that maintaining his
drawing conservative support persuading conservatives to S.D.) on an amendment to ad- clude one that would allow than reimbursing states on an state’s Medicaid expansion was
in the House, have the poten- accept an altered bill. just the tax credits. states to choose between re- open-ended basis. a top priority. “To see that go
tial to create additional hur- “A major priority for me is House Speaker Paul Ryan ceiving federal funding for Another change would allow away could be very dramatic
dles for the legislation in the to make sure we focus more of (R., Wis.) told House Republi- Medicaid as a direct block states to impose work require- and traumatic on our citizens,”
Senate, where a group of cen- the support via the tax credits cans that “some tweaks will be grant or a sum based on the ments on adult beneficiaries he said.
THE WALL STREET JOURNAL. * * * * * * *
Trump Stands By
Wiretap Claim;
No U.K. Apology
BY CAROL E. LEE agency was asked to conduct
AND PETER NICHOLAS surveillance on Mr. Trump is
“utterly ridiculous.”
WASHINGTON—President A spokesman for U.K. Prime
Donald Trump stuck Friday to Minister Theresa May said Fri-
his unsubstantiated claim that day that the White House had
his predecessor wiretapped assured U.K. officials that it
Trump Tower and he brushed won’t repeat the allegations.
off tensions that his adminis- “We’ve made clear to the
tration ignited with the United administration that these
Kingdom by citing a media re- claims are ridiculous and they
port alleging British intelli- should be ignored, and we’ve
gence was involved. received assurances that these
Mr. Trump, asked about the allegations will not be re-
citation in a news conference peated,” the prime minister’s
with Chancellor Angela Merkel
of Germany, quipped: “As far
as wiretapping by this past ad-
spokesman said.
A White House official said
Mr. Spicer spoke with the U.K.
ambassador to the U.S., Kim
Darroch, on Thursday at a St.
Patrick’s Day event and gave
‘We said nothing. All an explanation similar to the
we did was quote a one Mr. Trump offered on Fri-
day. The official said Mr.
certain very talented Spicer didn’t apologize or
legal mind.’ promise not to repeat the al-
legation.
Another White House offi-
cial said U.K. national security
ministration, at least we have adviser Mark Lyall Grant ex-
something in common, per- pressed his concerns to Mr.
haps.” Trump’s national security ad-
The comment was a refer- viser, Lt. Gen. H.R. McMaster
ence to U.S. surveillance of Ms. in a telephone conversation
Merkel’s phone, which was dis- Thursday night. That official
closed in 2013. said Gen. McMaster also told
Mr. Trump also dismissed Mr. Grant that Mr. Spicer was
the U.K.’s fury over White pointing to public reports, not
House press secretary Sean endorsing them
Spicer citing on Thursday a Mr. Spicer told reporters af-
Fox News commentator’s re- ter news conference that the
port alleging that the British White House has no regrets
intelligence agency GCHQ was about citing the Fox News
involved in wiretapping Trump commentary.
Tower, the New York building In response to a request for
where the president lived and comment, Fox News referred to
worked before moving to the an on-air statement made Fri-
White House. day afternoon by anchor Shep-
“We said nothing. All we did ard Smith, which read: “Fox
was quote a certain very tal- News cannot confirm Judge
ented legal mind who was the Napolitano’s commentary. Fox
one responsible for saying that News knows of no evidence of
on television,” Mr. Trump said. any kind that the now-presi-
In a statement, GCHQ, which dent of the United States was
rarely comments on media re- surveilled at any time, in any
ports, said any claim that the way, full stop.”
IT’S THE ANSWER
T H AT G E T S T H I N G S S TA R T E D
© C o py r i g h t 2 0 1 7 H e w l e t t Pa c k a rd E n t e r p r i s e D e v e l o p m e n t L P.
I n t r o d u c i n g H P E P o i n t n e x t, s e r v i c e s f o r y o u r d i g i t a l t r a n s f o r m a t i o n
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U.S. NEWS
Esma Arslan, a 21-year-old who moved to Hawaii at 9, reads a Quran at the mosque in Honolulu.
Hawaii’s Muslims Voice Fears
BY IAN LOVETT
HONOLULU—With only a few
thousand Muslim residents, Ha-
waii may seem an unlikely place
to challenge—and halt—Presi-
dent Donald Trump’s travel ban.
Only a half-dozen of refugees
are settled here each year. The
small Muslim community has
quietly thrived, away from the
conflicts on the mainland. They
built a mosque in the hills over-
looking Waikiki, celebrated the
end of Ramadan on the beach,
and enjoyed good relationships
with neighbors in this multicul-
tural state. Anti-Islamic threats
or hate speech was virtually un-
heard of, Muslims here say.
But that has changed in re-
cent weeks, as Hawaii’s Muslim
community has found itself at
the center of the nationwide
battle over immigration and Is-
lam’s place in American society.
Anti-Muslim incidents have
jumped since late last year,
Muslims here say, and mem-
bers of the community have
been separated from their
families by the travel ban.
The state of Hawaii—along
with the imam at the mosque
here, Ismail Elshikh—sued to
stop the revised ban from taking
effect, saying it was motivated
Transforming your now, so you can say “yes” to what’s next.
by religious animus toward
Muslims. On Wednesday night,
a federal judge agreed and put
the order on hold.
Mr. Trump, who has said
the ban is necessary for na-
tional security reasons, has
said he would appeal the Ha-
waii ruling. The administration
Friday appealed a similar rul-
ing by a Maryland judge.
For Mr. Elshikh, who is of
Egyptian descent, the effects of
the travel ban were personal.
His mother-in-law is in Syria,
one of the countries targeted by
the ban. “This is a great day for
democracy, religious and human
rights,” Mr. Elshikh, a named
plaintiff in the lawsuit, said in a
text message after the judge’s
order was issued.
Even Muslims here who don’t
have relatives overseas say
that—after decades of feeling
safe in Hawaii and largely avoid-
ing the political fray—they were
driven to action because they
have become targets in the
months since the election.
A Muslim cabdriver was at-
tacked by three men who
called him “Osama” in Waikiki
late last year, said Hakim
Ouansafi, president of the Mus-
lim Association of Hawaii; the
driver has since left the state.
Start your transformation
at hpe.com/pointnext
Saturday/Sunday, March 18 - 19, 2017 | A5
Ruling
On Revised
Travel Ban
Is Appealed
BY BRENT KENDALL
WASHINGTON—The Justice
IAN LOVETT/THE WALL STREET JOURNAL
Department formally appealed
a Maryland judge’s decision
this week that blocked the im-
plementation of President
Donald Trump’s revised execu-
tive order barring U.S. entry
for people from six Muslim-
majority countries.
The appeal on Friday kicks
off a new phase in litigation
over whether Mr. Trump’s lat-
est travel restrictions improp-
erly target people based on
their religion. The president
says the restrictions are neces-
sary to protect the country
In February, a middle- from terrorism.
school girl in a hijab, or head Judges in Hawaii and Mary-
scarf, was followed off a bus land, in rulings issued only
by a man shouting profanities hours apart this week, said Mr.
at her; her family is now also Trump appeared to have been
considering leaving Hawaii. motivated by improper reli-
A Honolulu Police Depart- gious animus. Among other
ment spokeswoman said the in- things, the judges cited past
cidents were being investigated statements in which Mr.
as possible hate crimes. But Trump as a presidential candi-
Muslims across the island said date voiced support for a
small expressions of hate—from “Muslim ban.”
drivers giving women in hijab The rulings weren’t final
the middle finger at red lights decisions on the legality of the
to men yelling at them to go revised executive order.
back to their country—have re- Several courts blocked the
cently become commonplace. president’s first travel ban.
Over 20 years in Hawaii, Mr. Rather than continue to fight
Ouansafi, a Moroccan who has those cases, Mr. Trump re-
been in the U.S. for three de- wrote the executive order,
cades, has seen the Muslim making several concessions
community here grow from less along the way. This week’s
than 1,000 people to roughly court decisions found those
5,000 from over 40 countries. concessions were insufficient
Before Mr. Elshikh arrived in because the problem of reli-
Honolulu in 2002, Mr. gious discrimination remained.
Ouansafi—who is executive di- The government’s appeal
rector of the Hawaii Public will go to the Fourth U.S. Cir-
Housing Authority—spoke at cuit Court of Appeals in Rich-
Friday prayers because there mond, Va.
was no full-time imam on the The Justice Department
island. Now there is a mosque didn’t respond to a request to
on all four of the most popu- comment.
lated islands, Mr. Ouansafi The government hasn’t yet
said, and Friday prayers in Ho- filed appeals papers in the Ha-
nolulu draw about 400 people, waii case, though it is expected
including tourists. to do so at some point.
A6 | Saturday/Sunday, March 18 - 19, 2017 * ***** THE WALL STREET JOURNAL.

WORLD NEWS
U.S. Takes Harder Line on North Korea
Threat of pre-emptive
strike sets up clash Figure in Graft Probe
with China as Tillerson Will Be Extradited
was to arrive in Beijing
SEOUL—The daughter of a
BY JONATHAN CHENG central figure in the scandal
that cost South Korea’s presi-
SEOUL—President Donald dent her job and landed the
Trump and his top diplomat de facto leader of the Sam-
hardened the U.S. approach to sung conglomerate in jail
North Korea, ruling out direct faces being sent home from
talks and raising the option of Denmark for arrest.
a pre-emptive strike in state- Chung Yoo-ra’s extradition
ments that set the stage for a was announced Friday by
potential clash with Chinese Danish authorities, who said
leaders this weekend. they would send her back for
The first-strike threat and “prosecution in her home
the U.S. deployment this month country.” Ms. Chung was ar-
of the beginnings of a missile- rested in the Danish city of
defense system in South Korea Aalborg in January.
represent a shift in balance A South Korean court last
that is expected to provoke month extended an arrest war-
Beijing, which is North Korea’s rant for Ms. Chung until 2023.
top ally. She has denied wrongdoing.
Secretary of State Rex Til- South Korea’s semiofficial
lerson, in Seoul on Friday, Yonhap News Agency reported
slammed Beijing for its oppo- that Ms. Chung would appeal
sition to the defense system, the extradition. Her lawyer

GLEN JOHNSON/ZUMA PRESS

which is aimed at protecting
South Korea against missile
threats from the North.
Mr. Trump chimed in hours
later, saying Beijing hasn’t
done enough to address the
threat from Pyongyang, which
is closing in on the ability to
mount a nuclear warhead on a
long-range ballistic missile.
“North Korea is behaving
very badly. They have been
‘playing’ the United States for
years. China has done little to
help!” Mr. Trump tweeted.
Mr. Tillerson was expected
to arrive in Beijing on Satur-
day for meetings over the
weekend with Chinese Presi-
dent Xi Jinping as well as
China’s foreign minister.
A spokeswoman for China’s
Foreign Ministry on Friday
pointed to China’s efforts to
promote dialogue between
Pyongyang, Washington and
Seoul, and declined to com-
ment on the secretary of state’s
remarks ahead of his arrival.
U.S. relations with China
have been rocky since Mr.
Trump said he would review
Rex Tillerson, center, and, to his right, U.S. Forces Korea commander Gen. Vincent Brooks, at the Korean Demilitarized Zone on Friday.
the longstanding one-China
policy, in which Washington
agrees not to extend diplo-
matic recognition to the gov-
ernment of Taiwan. Mr. Trump
later committed to “one
China” in a phone call with
Mr. Xi in February.
Other issues of contention in-
clude China’s trade and currency
policy and its territorial ambi-
tions in the South China Sea.
But since Mr. Trump took
office in January, the most
pressing matter has been
North Korea. Mr. Trump has
launched a White House policy
review—which is continuing—
that includes the possibility of
military force or regime
change to blunt the country’s
nuclear-weapons threat, ac-
cording to people familiar
with the process.
North Korea has proceeded
with missile tests since the inau-
guration, including one staged
while the U.S. and Japanese
leaders were meeting in Febru-
ary and a burst of midrange mis-
siles aimed at Japan this month.
Plans for back-channel talks
in New York between govern-
ment representatives from
North Korea and former U.S.
officials were scuttled last
month after the State Depart-
ment withdrew visa approvals
for Pyongyang’s top envoy on
U.S. relations, according to peo-
ple familiar with the matter.
Tougher sanctions remain an
option in dealing with Pyong-
yang, Mr. Tillerson said Friday.
The former oil executive’s re-
marks to reporters in Seoul
were his most direct state-
ments on North Korea since he
was sworn in last month.
Mr. Tillerson also took aim at
what he described as President
Barack Obama’s inaction on
North Korea. “Let me be very
clear: The policy of strategic pa-
tience has ended,” he said.
During last year’s presiden-
tial campaign, Mr. Trump sug-
gested he would consider a
wide range of policies on North
Korea, at one point calling
leader Kim Jong Un a madman
who had to be stopped, and at
another suggesting that the
two men talk over hamburgers.
Mr. Tillerson’s statements
dimmed the prospect that the
new administration could pur-
sue a diplomatic strategy.
An emerging hard-line ap-
didn’t respond to requests for
confirmation, and Danish pros-
ecutors said they haven’t been
informed of an appeal.
Since the scandal erupted
last year, prosecutors have
identified the 20-year-old Ms.
Chung as a beneficiary of Sam-
sung funds given to entities
proach puts the U.S. on a colli- tied to her mother, Choi Soon-
sion course with South Korea, sil, a confidante of impeached
where an election on May 9 is President Park Geun-hye.
expected to bring in a leader South Korean prosecutors
who will pursue more engage- allege Ms. Choi colluded with
ment with Pyongyang. Ms. Park to extract donations
“You’re going to get a lib- from Korean conglomerates in
eral president in South Korea exchange for political favors.
who agrees with the Chinese Ms. Choi and Ms. Park have
that a hard-line approach denied wrongdoing. Samsung
doesn’t work,” said John De- admitted providing funds to
lury, an expert in Chinese and entities linked to Ms. Choi but
North Korean affairs at Yonsei denied seeking favors in return.
University in Seoul. According to a report
Mr. Tillerson, whose China from prosecutors this month,
visit comes at the end of a funds from Samsung were
three-nation trip through East used to purchase a horse
Asia, said he plans to raise named Vladimir for Ms.
U.S. concerns about Beijing’s Chung, who won an eques-
opposition to the South Ko- trian-dressage gold medal at
rean missile-defense system, the 2014 Asian Games.
the Terminal High-Altitude —Eun-Young Jeong
Area Defense, or Thaad. CHIEKO TSUNEOKA/THE WALL STREET JOURNAL

More than 100 residents of Oka, a coastal northwestern city, took part Friday in an evacuation drill
that simulated a North Korean missile launch. Pyongyang’s tests have heightened fears of an attack.

On Japan’s Northwest Coast,

A Drill for Missile Threat
BY CHIEKO TSUNEOKA
AND ALASTAIR GALE
OGA, Japan—Sirens blared
a warning against incoming
North Korean missiles as lo-
The Perfect Pear cals rushed to a community
center here, Japan’s first drill
7.08-Carat Diamond to simulate an evacuation in
light of a rising threat.
“Missiles appear to have
Exquisite stone. Dazzling size. Timeless perfection.
been launched!” a loudspeaker
The spellbinding 7.08-carat pear-shaped diamond voice warned on Friday.
in this classic platinum necklace captivates with This coastal northwestern
its spectacular size, color, and clarity. Certified by city was one of the closest
points in Japan to the splash-
the Gemological Institute of America, the rare gem
down at sea of a series of mis-
showcases a near colorless G grading with VS2 clarity, siles fired by North Korea
meaning it is virtually unmarred to the naked eye. since last year.
Its excellent polish and symmetry further distinguish The exercise didn’t rise to
the level of the famed “duck
the sensational stone. 16” length. #30-5113
and cover” drills that a genera-
tion of Cold War-era American
schoolchildren withstood to
ostensibly protect themselves
against the threat of a Soviet
nuclear attack. By and large,
despite the standoff with
North Korea’s advancing mis-
sile and nuclear programs,
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targeted and Japan has reason-
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Backed by our unprecedented 125% Guarantee, we stand behind each and every piece. Still, the government is try-
ing to project a proactive ap-
proach amid rising worries that
have led to calls by hawkish
ter after hearing the alert. Au-
CHINA RUSSIA thorities chose strong build-
Tongchang-ri ings as evacuation centers that
(site of four missile would shield residents from
launches on March 7) explosions and debris caused
Oga by missiles landing nearby in
NORTH
KOREA Sea of
the event of a real attack.
Some residents expressed
SOUTH
Japan
( E a s t S ea )
skepticism about any threat
from North Korean missiles. But
Tokyo
KOREA several said local concerns had
J A PA N
risen after a North Korean mis-
sile landed about 150 miles from
100 miles the city in August, followed by
P a c i fi c O ce a n three in September and four
100 km
this month in the same region.
THE WALL STREET JOURNAL. After the latest launch,
North Korea said it was training
Japanese politicians to develop for an attack on U.S. bases in
the ability to strike Pyong- Japan. A U.S. air base is situ-
yang’s missile sites if an attack ated around 120 miles north-
on Japan appears imminent. east of Oga. A Japanese military
On Friday, Japan also radar station sits on a hill close
launched an intelligence-gath- to where the drill took place.
ering satellite to enhance “The drill is good to get us
monitoring of North Korean psychologically prepared,”
missile sites. Tokyo revealed said Susumu Takano, the 77-
this week that fishing vessels year-old head of the local
weren’t warned about a March neighborhood association.
7 missile launch by North Ko- “But I wonder if reports of
rea until 20 minutes after the missile launches would reach
missiles had landed. us before they land.”
Friday’s drill was small. Friday’s drill was initiated
Only about 110 people in a city by the central government,
of about 29,000 were asked to which relays emergency infor-
take part, gathering in a mation about missile launches
school and a community cen- to regional authorities.
THE WALL STREET JOURNAL. * * * * * * Saturday/Sunday, March 18 - 19, 2017 | A7

WORLD NEWS

U.S. Trade Policy Allies Discuss NATO, Trade

Draws Pushback BY CAROL E. LEE
AND ANTON TROIANOVSKI

At G-20 Meeting WASHINGTON—President

BADEN-BADEN, Germany—
World finance chiefs clashed
over the future of global trade
on Friday, worried that protec-
tionist tendencies could tilt
the global economy back into
the doldrums and stir up
cross-border tensions.
By Ian Talley,
Andrea Thomas
and Tom Fairless
The confrontation at a two-
day meeting of finance minis-
ters of the Group of 20 econo-
mies pitted the U.S., which is
seeking to rectify what it says is
an off-kilter global trading sys-
tem, against a bloc of advanced
and emerging-market countries
attempting to head off what
they see as President Donald
Trump’s protectionist agenda.
Speaking at the start of the
meeting in the ritzy spa town
of Baden-Baden, German Fi-
nance Minister Wolfgang
Schäuble said “we are still in
the process of finding a solu-
tion for the obvious and
known different views.”
U.S., by contrast, argues that
other markets are more pro-
tected than America’s and says
it wants reciprocal treat-
ment—or fair trade.
One G-20 delegate said
member countries presented a
united front against the U.S. po-
sition, with nearly all the other
parties opposing a change to
the existing language.
“With respect to trade, we
support fair trade,” U.S. Trea-
sury Secretary Steven
Mnuchin told the G-20.
German officials presiding
over the talks initially pro-
posed a phrase pledging to ad-
here to “rules-based” trade,
negotiators said—terminology
that reflects the unease of
many attendees at the talks
about the Trump administra-
tion’s threats to unilaterally
sanction trade partners and its
challenges to the World Trade
Organization. They fear the
U.S. may not only spark a
trade war, but could also up-
end the post-World War II
rules-based order championed
by America for seven decades.
Donald Trump expressed
strong support for the North
Atlantic Treaty Organization
and said he was “not an isola-
tionist” after meeting Friday
with German Chancellor An-
gela Merkel for the first time
since taking office.
Mr. Trump, speaking at a
news conference with Ms.
Merkel, defended his approach
to the issue and said the two
leaders would later discuss
trade issues.
“I’m not an isolationist. I’m
a free trader, but I’m also a
fair trader,” he said.
His comments on NATO
were aimed at easing concerns
that European leaders, such as
Ms. Merkel, have had about
his support for the alliance.
“I reiterated to Chancellor
Merkel my strong support for
NATO,” Mr. Trump said, add-
ing that member nations must
pay their share to the alliance,
a long-held view. He praised
Germany for Ms. Merkel’s
commitment to eventually in-
creasing military spending.
Ms. Merkel voiced support
for the European Union, an al-
liance Mr. Trump has criti-
cized. She also sought to

In dispute is the wording of
a joint statement that the fi-
nance ministers are scheduled
to adopt on Saturday and is
meant to define the nature of
their trade relationships.
While the so-called communi-
qué is a symbolic, nonbinding
act, it has come to embody the
balance of power in the global
tug of war over economic pol-
icy. Delegations have argued
fiercely over the carefully cali-
brated text in the past, but
trade has rarely been a focus
of those debates.
Europe, China and Brazil
want the G-20 to preserve cur-
rent language calling for a re-
jection of protectionism “in all
its forms.” They see that for-
mulation as a way to hem in
the economic nationalism ad-
vocated by Mr. Trump’s
“America First” platform. The
Mr. Mnuchin, representing
the Trump administration at
his first G-20 meeting, said
the administration wants to
avoid trade wars too, But
Washington also seeks to re-
balance cross-border flows of
goods, services and capital.
Japan, a longtime ally of
Washington whose trade ties
with China have grown expo-
nentially, was a rare delegate
to back the U.S. position.
Some officials said they
wouldn’t rule out a postpone-
ment of an agreement on
trade language until G-20
leaders meet in July.
The Trump administration
argues that the trade surpluses
of China, Germany, South Ko-
rea and other countries repre-
sent an unfair trading system
that isn’t adequately moni-
tored by the WTO or the IMF.
stress the close relations be-
tween the U.S. and Germany.
“There are a number of is-
sues where we will continue to
cooperate very closely,” Ms.
Merkel said.
She said she would be happy
if negotiations for a free-trade
agreement between the U.S.
and the EU were resumed.
“It is, of course, more than
fair that both sides that make
agreements want to benefit
from them,” Ms. Merkel said
at the news conference. “In
this spirit, I would be happy if
we resumed the negotiations
between the European Union
and the United States of
America.”
She noted, however, that
only the EU—rather than indi-
vidual member states such as
Germany—was able to negoti-
ate trade agreements.
JONATHAN ERNST/REUTERS
Chancellor Angela Merkel and President Donald Trump at a news conference in the White House Friday.
The proposed EU-U.S. trade ers. They sat next to each Trump has been critical of the
deal, the Transatlantic Trade other in separate chairs. Ms. EU and NATO. German offi-
and Investment Partnership, Merkel was leaning toward Mr. cials also have been concerned
has long been supported by Trump. But he didn’t look at about Mr. Trump’s approach
Ms. Merkel. The talks weren’t her and sat with his hands be- to trade, which favors unilat-
finished when former Presi- tween his knees. eral agreements rather than
dent Barack Obama left office. At one point, Ms. Merkel those with multiple nations.
Mr. Trump, who pulled the asked the president if he Ms. Merkel, whose govern-
U.S. out of Mr. Obama’s 12-na- wanted to shake hands, as is ment has allowed hundreds of
tion Pacific trade agreement, customary in these instances. thousands of refugees and mi-
has attacked past U.S. trade Mr. Trump didn’t respond. grants to enter Germany, also
policy, and he hasn’t resumed Following the news confer- drew contrasts to Mr. Trump’s
talks with the EU on the TTIP. ence, the two leaders did policy on immigration and for-
After their Oval Office shake hands. eign aid.
meeting, there appeared to be Mr. Trump and Ms. Merkel —Peter Nicholas
tension between the two lead- differ on a host of issues. Mr. contributed to this article.

To Boost Arms Exports,

Portrait by renowned illustrator Joseph Adolphe.

Russia Courts U.S. Clients

WILMINGTON TRUST RENOWNED INSIGHT

Moscow claws back market share lost since Crimea annexation
BY THOMAS GROVE
MOSCOW—When Russian
officials struck a deal with
the United Arab Emirates
last month to develop a cut-
ting-edge combat plane, they
sent a clear signal: Moscow
“How might politics affect
your portfolio in 2017?”
Arms Race
Russia is the world’s second-largest arms exporter but is still recovering
from a sharp drop in sales after its 2014 annexation of Crimea.
Our annual Capital Markets Forecast explores our
Total arms exports outlook for economies and markets, and provides an
$12 billion in-depth look at the themes we see continuing to unfold
2016
Russian annexation of Crimea
▼

is fighting to win back lost
market share in arms ex-
ports and courting major
U.S. customers.
Moscow’s foreign arms
sales plummeted after its
2014 annexation of Crimea
as Ukraine, which was a ma-
jor supplier of parts to Rus-
sian arms manufacturers, cut
off shipments in protest.
But Russian arms exports
rose 16% last year, to $6.4
billion, according to data
compiled by the Stockholm
International Peace Research
Institute, or SIPRI, which
tracks arms sales. Russian
President Vladimir Putin said
last year that customers had
placed orders for $56 billion
in future deliveries, a record
for Russia.
“I think they’re on an up-
ward trajectory, and I expect
they will improve with time
as they try to reap the gains
of the relationships they’re
putting in place,” said Doug
Berenson, managing director
at Washington-based defense
industry consultancy Avas-
cent.
Russia had long been the
world’s second-largest arms
exporter behind the U.S., but
it had been gaining ground
and even outsold the U.S. in
2013 before the drop.
Moscow’s efforts to bounce
back have caught the atten-
tion of U.S. arms makers, in
part because Russia is dealing
in some cases with countries
such as the U.A.E., Egypt and
the Philippines that have long
been major buyers of U.S.
weapons, though some have
also purchased arms from
Russia as well.
“If one of our partners
like U.A.E.…starts turning on
any given transaction to the
Russians, that means the
Russians have gained an op-
10
8 optimistic about the prospect of expansion, with the passing
6
4 M.A., J.D., LL.M. (Tax)
2
0 Tony brings his extensive
2000
Source: Stockholm International Peace Research Institute
portunity—that we no longer
have—to build their influ-
ence,” said Remy Nathan,
vice president of interna-
tional affairs at the Aero-
space Industries Association,
a trade group that repre-
sents U.S. manufacturers.
At the same time, Russia
is also moving aggressively
to increase sales to countries
that traditionally have been
customers in the past, such
as Indonesia, which is close
to reaching a deal with a
Russian state-owned arms
firm to purchase jet fighters.
Belarus, Iran and Nicaragua
were among the countries
that imported more arms
from Russia last year than
the prior year.
The Philippines is negoti-
ating an agreement that
would allow Manila to im-
port Russian arms for the
first time. The deal would be
striking because the Philip-
pines is a former American
colony and has a military
modeled along U.S. lines.
The talks come as Philip-
pine President Rodrigo Du-
terte has strained relations
with the U.S. through his
abrasive remarks about for-
mer President Barack Obama
and an antidrug campaign
that critics say has been rife
with extrajudicial killings.
U.S.
$9.9B
Russia
$6.4B
2010
THE WALL STREET JOURNAL.
Ambassador Carlos Sor-
reta, Manila’s ambassador to
Moscow, said his country’s
military is hemmed in by
U.S. export restrictions that
stipulate weapons won’t be
used to commit human-
rights violations. “It’s almost
like when you buy the gun
there is a string attached to
it,” he said. “Russia’s strat-
egy is very different.”
Russia is also working to
fulfill a $3.5 billion arms
deal with Egypt that includes
jet fighters. The raft of con-
tracts came about as Cairo’s
ties with Washington cooled
following the 2013 military
coup that brought President
Abdel Fattah Al Sisi, a for-
mer defense minister, to
power. Officials at the Egyp-
tian Embassy in Moscow
couldn’t be reached to com-
ment.
The U.S. has far outsold
Russia in Egypt and the
U.A.E. over the past 10 years,
according to SIPRI. But
Washington has been reluc-
tant to sell certain military
gear, such as Lockheed Mar-
tin Corp.’s radar-evading
F-35 Joint Strike Fighter, to
Persian Gulf nations to en-
sure that Israel maintains an
edge in the region.
—Asa Fitch in Dubai
contributed to this article.
and the potential implications for portfolios.
U.S. economy pulling ahead, with risks. We are
of the mantle from monetary to fiscal stimulus and President
Tony M. Roth Trump’s growth-stimulating policies. This outlook is
tempered, however, by
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A8 | Saturday/Sunday, March 18 - 19, 2017
Saudis Expect U.S. to Reverse Terror Law
WASHINGTON—Saudi Ara-
bia expects that the Trump ad-
ministration will take steps to
dismantle a 2016 law allowing
U.S. terror victims to sue the
kingdom, according to a high-
ranking government minister.
By Justin Scheck,
Elena Cherney
and Thorold Barker
But chances are remote that
Congress will reverse the bill,
said people in Washington fa-
miliar with discussions on the
issue. There has been no signal
that the White House wants to
see the measure rolled back,
and lawmakers haven’t signaled
any new effort to change the
law this year after a previous
effort stalled—setting up a po-
tential conflict.
In an interview with The
Wall Street Journal, Saudi En-
ergy Minister Khalid al-Falih
highlighted how Congress’s
passage in September of the
Justice Against Sponsors of
Terrorism law, known as Jasta,
stoked tension in U.S.-Saudi re-
lations and threatens to chill
Saudi investment in the U.S.
The terror law, Mr. Falih
said, is one consideration in the
Saudi decision about whether
to list shares of Saudi Arabian
Oil Co., or Saudi Aramco, in the
U.S. Mr. Falih is chairman of
WORLD WATCH
CARIBBEAN
Nobel-Winning Poet,
Derek Walcott, Dies
Derek Walcott, a Nobel-prize
winning poet known for captur-
ing the essence of his native Ca-
ribbean, died on the island of St.
Lucia. He was 87 years old.
The Caribbean’s most interna-
tionally famous writer, Mr. Wal-
cott, “poet, playwright, and
painter, died peacefully today…at
his home in Cap Estate, Saint
Lucia,” according to a statement
released by his family.
The prolific and versatile poet
received the Nobel Prize in liter-
ature in 1992. Mr. Walcott, who
was of African, Dutch and Eng-
lish ancestry, said his writing re-
flected the “very rich and com-
plicated experience” of life in the
Caribbean. His dazzling, painterly
work earned him a reputation as
one of the greatest writers of
the second half of the 20th cen-
tury.
—Associated Press
YEMEN
Dozens of Refugees
Are Killed in Attack
At least 42 Somali refugees
were killed Friday after a boat car-
rying them apparently came under
attack off Yemen’s coast, accord-
ing to the International Organiza-
tion for Migration.
The incident occurred at
around 3 a.m. local time, accord-
ing to spokesman Joel Millman.
There were 91 survivors, some of
whom were hospitalized, he said.
Some survivors said they were
attacked by a military vessel
near Yemen’s Hodeida port, while
others thought a helicopter that
flew from the vessel attacked
them, according to the IOM.
Most of the Somalis had
been living in a refugee camp in
southern Yemen, the IOM said.
An official from Hodeida said
they were believed to be travel-
ing to Sudan.
A two-year war in Yemen has
pitted Iran-backed Houthi rebels
against a military coalition led by
Saudi Arabia. A coalition spokes-
man said it hadn’t conducted
military action in the area on
Thursday or Friday morning.
—Asa Fitch
SYRIA
Israeli Airstrikes Met
With Antiaircraft Fire
Israeli air force planes carried
out airstrikes in Syria on Friday,
drawing fire from government
antiaircraft missile batteries in
the most intense military ex-
change between the two coun-
tries since the start of the Syr-
ian conflict six years ago.
The Israeli military didn’t dis-
close what it had targeted but
said the aircraft returned safely
to their base, denying a Syrian
claim that one plane had been
downed and another damaged.
Israel has said it reserves the
right to strike arms shipments
to Hezbollah, the Iranian-backed
military and political group in
Lebanon that is supplying fight-
ers for the Assad regime.
—Rory Jones
President Donald Trump and Deputy Crown Prince Mohammed
bin Salman had lunch together in the White House on Tuesday.
the state oil company, which is
the world’s single biggest oil
producer, and the initial public
offering is expected to be the
largest in history.
Mr. Falih’s comments came
after a meeting Tuesday be-
tween President Donald Trump
and Saudi Arabia’s deputy
crown prince. Mr. Falih said the
kingdom sees a number of fa-
vorable shifts in U.S. policy
with Mr. Trump. He cited Mr.
Trump’s tougher stance toward
Iran as an issue on which the
two countries are now more
closely aligned, and Mr.
Trump’s support for the fossil-
fuels industry.
Brazil Accuses Meatpackers of Paying Bribes
SÃO PAULO—Brazilian au-
thorities are investigating
some of the world’s biggest
meatpacking companies for al-
legedly bribing food-sanitation
inspectors to approve sales to
domestic and foreign buyers of
meats that might otherwise
have failed to pass muster.
By Rogerio Jelmayer
and Luciana
Magalhaes
Among the dozens of firms
targeted are JBS SA and BRF
SA, which both have substantial
operations outside Brazil. JBS,
the world’s leading meatpacking
company, owns Swift Foods and
a majority share of Pilgrim’s,
both familiar U.S. brands. BRF is
one of the world’s biggest
chicken exporters.
“[The firms under investi-
gation] didn’t care about the
quality of the meat or food”
they sold, said a Federal Police
official, Mauricio Moscardi
Grillo. “They didn’t care at all
about what they were selling
to consumers.”
Shares of JBS plunged
10.6% on Friday, and shares of
BRF were down 7.6%. Brazil’s
benchmark Ibovespa stocks in-
dex was down 2.4% on the day.
The investigation could
threaten a planned initial pub-
lic offer by JBS for its interna-
tional operations, and could
cause problems for a possible
sale by BRF of a stake in one
of its units as well, said Shin
Lai, an investment strategist
at São Paulo-based research
firm Upside Investor. JBS an-
nounced in December a reor-
ganization plan that includes
an IPO in the U.S. of shares in
its international businesses.
An inspector-veterinarian
employed by JBS at one of its
plants was allegedly involved
in the scheme, documents pro-
vided by judicial authorities
show. Police said an executive
FARES
Continued from Page One
Punta Cana in the Dominican
Republic and Buenos Aires. Ser-
vice is to start in June.
IAG is basing the budget car-
rier in Barcelona partly because
the airline’s Spanish short-haul
budget carrier, Vueling, is based
there, enabling passengers from
places throughout Europe to
transfer to the trans-Atlantic
flights.
The deep discounting isn’t
playing out only across the At-
lantic. The long-haul arm of Ai-
rAsia Bhd., Asia’s giant budget
carrier, is poised to link its base
in Kuala Lumpur, Malaysia,
with Honolulu later this year.
Scoot Pte Ltd., a budget long-
haul affiliate of Singapore Air-
lines Ltd., plans to start operat-
ing cheap flights between the
Asian city state and Athens this
year.
Tim Clark, president of
Emirates Airline, the world’s
largest carrier by international
traffic, this month called low-
cost, long-haul service a “gath-
WORLD NEWS
sideration by the new Congress
and the new administration,
that corrective measures will
NICHOLAS KAMM/AGENCE FRANCE-PRESSE/GETTY IMAGES
be taken,” Mr. Falih said of
Jasta. He didn’t specify what
corrective measures would sat-
isfy Saudi Arabia.
Expectations in Washington
for a congressional reversal are
low. Mr. Trump was an ardent
supporter of Jasta and called
former President Barack
Obama’s veto of the bill “shame-
ful.” A significant change would
invite critical attention in his
home state of New York, where
the bill—which allows victims
of the Sept. 11, 2001, attacks to
sue Saudi Arabia—has many
proponents.
Mr. Trump and the Saudi
A favorable U.S. environ- prince didn’t discuss the law in
ment for Saudi investment is their meeting, Mr. Falih said.
timely, Mr. Falih said, as the But Mr. Falih expressed confi-
kingdom embarks on an eco- dence that the U.S. would make
nomic overhaul to diversify its changes because otherwise it
economy away from depen- could face retaliation from
dence on oil. That plan revolves other countries in the form of
around the Saudi Aramco offer- similar laws, he said.
ing and a strategy to invest After the bill’s passage in
more heavily abroad, including September, key U.S. lawmakers,
in the U.S. concerned about such a back-
Mr. Falih also warned of po- lash, proposed changes that
tential legal repercussions would limit the law’s scope
abroad if Jasta survives. The and, lawmakers suggested,
Saudi government was “not would decrease the chances of
happy” about the law, Mr. Falih retaliatory lawsuits. That effort
said, adding it was passed “dur- stalled and hasn’t been revived.
ing the heated political period.” —Felicia Schwartz
“We believe after due con- contributed to this article.
linked to JBS was also under said participants in the scheme
investigation. falsified sanitation certifica-
JBS, with units on five conti- tions for beef and chicken as
nents, said it and its units “rig- well as for hot dogs, bologna,
idly follow” all regulations re- animal feed and pet food.
garding health inspection of its “The crime against the Bra-
products and supports all efforts zilian people is grave,” said
aimed at punishing violations. Mr. Novacki, adding the Brazil-
BRF said that it meets all reg- ian government was also con-
ulations and that its products cerned about the impact on
pose no risk to consumers in the country’s image abroad.
Brazil or abroad. The company “We’re big players in the
added it was cooperating with world market, and consumers
authorities on the probe. can seek products from our
An Agriculture Ministry of- competitors,” he said. “We’re
ficial said the ministry was worried and we’re taking
still investigating how much of steps” to maintain confidence
the affected meat and meat in Brazilian products.
derivatives were exported, When reporters at a press
noting most of it was probably conference asked repeatedly
sold in the Brazilian market. how consumers could avoid
The official, Eumar Novacki, tainted food, Mr. Novacki said
A JBS meat plant in Lins, Brazil, in 2011. Besides the companies, Brazilian food-sanitation workers are also targets of the investigation.
ering storm.” The new competi-
tion isn’t necessarily a bad
thing, he said, if the low fares
increase the number of people
those at legacy rivals, depend-
ing on how well seats have
sold. Still, legacy carriers have
pushed down their most basic
flying on such routes. prices to be more competitive
The market for trans-Atlan- with the startup rivals.
tic flight was dominated for de- Low-cost trans-Atlantic
cades by a handful of U.S. and flights are typically operated
European airlines, many of with planes carrying more pas-
which have paired up with air- sengers than normal. Tickets
lines on the other side of the can cost a fraction of tradi-
ocean to cooperate on sched- tional prices for intercontinen-
ules and fares. British Airways
works closely with American
Airlines Group Inc., the No. 1
U.S. carrier. United Continental
A new breed of budget
Holdings Inc. is linked with airline has started
Deutsche Lufthansa AG, and
Delta Air Lines Inc. cooperates
offering super-cheap
with Air France-KLM SA. long-haul flights.
Those relationships have helped
keep routes lucrative.
The market remains attrac-
tive for these legacy airlines, tal flights, although passengers
but the new competition has generally have to pay extra for
pushed down ticket prices. For amenities such as meals.
both discounters and incum- Norwegian Air has been a
bent airlines, prices fluctuate trailblazer. The Scandinavian
with demand, so it is difficult carrier now offers service from
to assess how much any one several European cities, includ-
carrier’s move affects prices ing London and Paris, to desti-
more generally. Fares on dis- nations such as New York, Fort
count carriers at times can be Lauderdale, Fla., and Los Ange-
on par, or even higher, than les. It expanded earlier this
* ***** THE WALL STREET JOURNAL.
Tehran, Riyadh
Agree on Hajj Deal
Iranians to resume Muslim
pilgrimage as rivals end standoff
DUBAI—Iran and Saudi
Arabia reached an agreement
to allow Iranians to partici-
pate in this year’s hajj pilgrim-
age to Mecca, resolving a
point of tension in the bitter
rivalry between the regional
powers.
Iran barred its citizens from
attending last year’s annual
holy pilgrimage after the col-
lapse of talks over its partici-
pation with the Saudi govern-
ment, a reflection of the
downward spiral in ties be-
tween the two countries.
It was the first time since
1990 that Iranians were ex-
cluded from the hajj, a religious
obligation that all able-bodied
Muslims have to fulfill at least
once in their lifetimes.
On Friday, Saudi Arabia an-
nounced that following a meet-
ing last month between the
kingdom’s hajj minister and his
Iranian counterpart, the two
sides had completed arrange-
ments for Iranians to partici-
pate in the six-day hajj, which
the government didn’t have
enough information yet to say.
Brazil is second only to the
U.S. in beef and poultry pro-
duction, according to U.S. De-
partment of Agriculture data,
and is the world’s largest ex-
porter of chicken meat, ship-
ping more than 4 million met-
ric tons overseas in 2016.
Brazil’s meat sector relies
heavily on exports, shipping 30%
of its poultry meat and about
one-fifth of its beef abroad, es-
pecially to China. Any questions
over the safety and quality of
Brazilian meat exports could
give an edge to U.S.-produced
meat in markets where the two
countries compete, such as Hong
Kong, the Middle East and Chile.
Relatively little meat pro-
year to service smaller U.S. cit-
ies by flying smaller, narrow-
body planes to locations such
as Stewart International Air-
port in New York, Green Air-
port in Providence, R.I., and
Bradley International Airport
near Hartford, Conn. It is these
new routes for which it is offer-
ing introductory fares of as low
as $65 one way.
Air Canada, Lufthansa and
Air France-KLM also recently
launched no-frills subsidiaries
to ferry passengers on long-
haul flights, including across
the Atlantic, at budget prices.
But legacy carriers often
struggle in setting up discount
units, and several efforts in the
U.S. have failed. Incumbents in
some cases found they couldn’t
match the cost structure of
their budget rivals, or aban-
doned efforts once their dis-
count operations threatened to
cannibalize their regular busi-
ness. Lufthansa’s Eurowings
budget arm was plagued by op-
erational missteps, including
long flight delays, when it first
began flying across the Atlan-
tic.
IAG plans to expand Level to
is set to start in late August.
The announcement, pub-
lished by the official Saudi
Press Agency, marks a rare
moment of consensus between
the Sunni Muslim kingdom and
Shiite Iran, whose rivalry has
played out across the Middle
East, often along sectarian
lines.
Last year’s talks ended be-
cause the two sides couldn’t
agree on how Iranians would
obtain visas after Riyadh broke
diplomatic ties with Tehran in
January 2016. The diplomatic
rupture came after Iranian
mobs stormed Saudi diplo-
matic facilities in Iran to pro-
test the kingdom’s execution of
a Shiite cleric.
Saudi Arabia takes pride in
its role as keeper of Islam’s ho-
liest sites, located in the cities
of Mecca and Medina. But its
handling of past pilgrimages
has provided ammunition to its
critics. In 2015, a deadly stam-
pede during the hajj left 769
people dead, according to the
Saudi government.
Other estimates put the
death toll much higher. Iran has
said hundreds of its citizens
were among the victims, and
publicly questioned the kingdom’s
fitness to oversee the event.
—Margherita Stancati
duced in Brazil is imported by
the U.S. About 37,000 metric
tons of fresh beef were imported
from Brazil in 2016, when the
U.S. consumed about 11.7 million
metric tons, according to the
USDA. The U.S. typically imports
no chicken and negligible
amounts of pork from Brazil.
A USDA spokeswoman said
the agency was in contact with
Brazilian authorities and was
monitoring the situation. Fed-
eral officials have safeguards
in place to protect the U.S.
food supply through inspec-
tions of all imports, she said.
“We can ensure the American
food supply is safe,” she said.
—Jeffrey T. Lewis
and Jacob Bunge
contributed to this article.
JUAN FORERO/WASHINGTON POST/GETTY IMAGES
operate from other European
cities. “This is just the start,”
IAG Chief Executive Willie
Walsh said.
The company, which also
owns Irish carrier Aer Lingus,
said Level would start opera-
tions with two new Airbus
A330 planes seating 293 pas-
sengers in economy class and
21 premium-economy seats.
Crew from IAG’s Spanish car-
rier Iberia will initially staff the
planes.
The service from Barcelona
will set off the first head-to-
head contest between a net-
work carrier’s budget long-haul
unit and an airline focused at
inception on discount travel.
Norwegian Air has announced
plans to expand its budget
long-haul operations to the
Spanish city in June.
Level will offer high-speed
onboard Wi-Fi for prices start-
ing at about $9.65. Premium
economy passengers will have a
checked bag, food, seat selec-
tion and movie access included
in the price of their tickets.
Economy class passengers will
have the option of paying extra
for these items.
THE WALL STREET JOURNAL. * * * * Saturday/Sunday, March 18 - 19, 2017 | A9

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THE NEW YORK TIMES

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purchases. The Wall Street Journal—we mean business.

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A10 | Saturday/Sunday, March 18 - 19, 2017 * ****** THE WALL STREET JOURNAL.

OBITUARIES
T H O M A S S TA R Z L STEPHEN ROSS
1926 — 2017 1944 — 2017

‘Father of Transplantation’ Economist Created

Ways to Assess Risk
Defeated His Own Doubts
A
t age 4, Stephen Ross still
wasn’t talking. His parents
took him to a hospital for
BY JAMES R. HAGERTY tially fatal mistakes worsened. tests and were assured nothing
“With growing concern, I came to was wrong. Sure enough, he be-
the most complicated types of op-
tions. His agency theory spurred
research into how incentives can
be structured to align the inter-
ests of principals (such as inves-

A
s he completed his medical
training in the late 1950s,
Thomas Starzl searched for
a way to make his name in the an-
nals of medicine. In an interview
late in his life, he recalled asking
himself: “What’s out there that
needs development but looks im-
possible?”
The choice seemed obvious to
him: transplanting organs.
He became the first surgeon to
transplant a human liver success-
fully, in 1967, and went on to do
hundreds more, in dicey opera-
tions that could last as long as 20
hours. Tall, lean and cerebral, he
pioneered drug therapies to fight
the body’s rejection of foreign tis-
sue. Though less famous than
Christiaan Barnard, who in 1967
was the first to transplant a heart,
Dr. Starzl was often called the “fa-
ther of transplantation.”
Yet he was also haunted by the
children who died during or
shortly after operations, dogged by
medical turf battles and cautious
regulators, and thrust into ethical
debates over how to allocate or-
son to become a surgeon.
Latin was his favorite subject in
eighth grade, and he was so good at
it his teacher wrongly suspected him
of cheating, Dr. Starzl recalled in his
1992 memoir, “The Puzzle People.”
A Temporary Staffing
fter serving in the Navy near
the end of World War II, he
earned a biology degree at
Westminster College in Fulton, Mo.,
believe that I was not emotionally
equipped to be a surgeon or to
deal with its brutality,” he wrote.
“I did not like doing the one thing
for which I had become uniquely
qualified.” He also felt it was too
late to turn back.
He obtained federal funding and
pressed on with research at North-
western and later the University of
Colorado. In 1963, he made his
first attempt to replace a human
liver. The 3-year-old child, Bennie
Solis, desperately ill, died during
the operation. “The surgeons
stayed in the operating room for a
long time…looking at the ground
and saying nothing,” he recalled.
Several more liver transplants
failed, and Dr. Starzl paused the
program, pending advances in
techniques and drugs. His liver
transplants resumed in 1967 and
results gradually improved.
Feeling a lack of support for his
projects at the University of Colo-
rado, he moved to the University
of Pittsburgh at the end of 1980
and soon made the city a global
center of transplant expertise. He
gan talking at 5, in complete sen- tors or home buyers) with those
tences, and never looked back. of agents (stockbrokers or real-
After studying physics at the tors).
California Institute of Technology “He’s probably the most bril-
and earning a doctorate in eco- liant financial economist of his
nomics at Harvard University, Dr. generation,” said Richard Roll, a
Ross became one of the most cel- finance professor at Caltech who
ebrated financial economists of worked with Dr. Ross.
the past 50 years, frequently A group of his former students
rated as a likely Nobel Prize win- raised money a decade ago to cre-
ner. ate a Stephen A. Ross Prize for
His arbitrage-pricing theory is outstanding financial research.
a foundation for assessing the Dr. Ross died of a ruptured
risks and rewards of holding aorta March 3 at his home in Old
stocks and other assets. He also Lyme, Conn. He was 73.
came up with ways to value even —James R. Hagerty
D O R I S DA M M
1934 — 2017
She Built Business on

gans and whether it was worth do-
ing such costly surgery when many
people couldn’t even get basic care.
“Most mortal people would have
given up,” said John Fung, who
heads the University of Chicago’s
Transplantation Institute.
Dr. Starzl died March 4 at home
in Pittsburgh, a week before his
91st birthday. His memorial service
was attended by hundreds of col-
leagues, friends and admirers, as
well as his golden retriever,
Chooloo.
Thomas Earl Starzl was born
March 11, 1926, and grew up in Le
Mars, Iowa. His father, who wrote
science fiction as a young man,
settled into running a small-town
newspaper. His mother had worked
as a surgical nurse and wanted her
then won medical degrees at North-
western University. He had four
years of surgical training at Johns
Hopkins Hospital in Baltimore.
Stung by what he saw as a slight
from one of his supervisors, he
moved to the University of Miami
medical school for his residency.
During that period, he wrote, “I felt
like a missile looking for a trajec-
tory.”
In Miami, crime furnished more
than enough gunshot wounds to
train a young surgeon. He learned
the arts of replacing blood vessels.
In his spare time, he experimented
on dogs, devised a technique for
removing livers and began thinking
about how to “install” new ones.
As his surgical skills improved,
his anxieties about making poten-
talked companies into lending
their corporate jets to rush livers
to recipients.
In 1990, he had coronary bypass
surgery. Worn out by travels and
debates, he retired as a surgeon
but continued researching. Prog-
ress, he said, had vastly exceeded
his early dreams.
Was he the father of transplanta-
tion? “I didn’t make that claim,” he
said in an interview late in his life.
With a laugh, he added: “On the
other hand, I haven’t rejected it.”
Dr. Starzl is survived by his
wife, Joy Starzl, a son and a grand-
child. Two other children died be-
fore him.
 Read a collection of in-depth
profiles at WSJ.com/Obituaries
D
oris Damm, a former moti-
vational speaker for
Weight Watchers, got a job
in the 1970s as an account man-
ager and receptionist at a small
executive-search firm in Cherry
Hill, N.J. At the time, companies
were getting leaner and less will-
ing to offer long-term employ-
ment. Some told her they didn’t
want her help finding new execu-
tives but needed temporary staff.
So Mrs. Damm quit her job and
set up a temporary-staffing firm
in 1979 on her kitchen table, with
one assistant. Soon, she had cli-
ents, but was struggling to meet
her payroll. She had to pay the
temps weeks before clients paid
her. She and her husband, Edward
Damm, a sales executive for Gen-
eral Electric Co., took out a sec-
ond mortgage on their home.
Her ACCU Staffing Services
now has 13 branch offices and
serves hundreds of companies in
New Jersey, Pennsylvania and
Delaware. Mrs. Damm’s insights
into the regional economy drew
the attention of the Federal Re-
serve Bank of Philadelphia, where
she served on the board from
2001 to 2007, the last two years
as chairman. That meant quar-
terly trips to Washington for
meetings that included Fed Chair-
man Alan Greenspan and later
Ben Bernanke.
Mrs. Damm died of respiratory
failure Feb. 27 at a hospital in
Camden, N.J. She was 82.
—James R. Hagerty

FROM PAGE ONE

Coffee Art by Sam DeBey

LEND
Continued from Page One
Mass., lends pruning shears, a
weed and root remover and
other gardening tools.
In Oregon, Brendan Lax
made YouTube videos hawking
the Hillsboro Public Library’s
borrowable delights. The li-
brary’s offerings include bub-
HILLSBORO PUBLIC LIBRARY

ble machines, a gold-panning

kit and a metal detector. Mr.
Lax, whose title is “Collection
Development Librarian,” says
he tries to acquire objects
people wouldn’t think of own-
ing. “You wouldn’t go out and
buy a big industrial popcorn
popper,” he says.
To generate buzz for the
chimney-cleaning brushes, Mr.
Lax dressed up as an old-fash-
ioned British sweep and ad-
opted a cockney accent for a
video where he and a col-
league channeling her inner
Mary Poppins lip-synced the
movie’s “Chim Chim Cher-ee”
song-and-dance number.
Lending out novel items
can bring twists. In Southold,
one patron brought back a
tackle box he had borrowed
and complained he had found
a dead fish inside. In Ann Ar-
bor, a patron returned a rep-
lica of a prehistoric woolly
mammoth tooth, which had
been broken in many pieces
and then meticulously glued
back together.
Several libraries are “lend-
ing” flower and vegetable
seeds. Will they get them
back? Probably not, says Re-
becca Judd, of the Bainbridge
Island branch of the Kitsap
Regional Library, near Seattle,
which makes available packets
of seeds to grow zinnias, to-
matoes, spinach and carrots.
The seeds are stored in the
old wooden drawers of the
card catalog, which once
tracked the library’s books.
Ideally, patrons bring seeds
back after their harvest, but
Every child deserves to wake up with hope. Ms. Judd, the library branch
For about the same amount you spend buying coffee every morning, manager, acknowledges:
you can provide an entire year’s tuition for a girl in Kenya, giving her “There are more seeds going
the education she needs to improve her and her family’s livelihood. out than coming in.”
Sponsor a girl today and help her achieve a better tomorrow. Julie Todaro, president of
EAST AFRICA
EastAfricaChildrensHope.org CHILDREN’S HOPE the American Library Associa-
tion, a professional group, re-
calls that the Houston Public
Library, where she worked in
the early 1970s, once lent
Brendan Lax at the Hillsboro Public Library in Oregon.
framed prints of famous paint-
ings. “You could check out a
van Gogh reproduction,” she
says. “We want to be needed,”
says Dr. Todaro, who applauds
libraries’ efforts to reinvent
themselves.
Lisa Downing, director of
the Forbes Library in North-
ampton, Mass., says, “I feel
the writing is on the wall—
and I love being relevant.” A
few years ago, the Forbes be-
gan lending ukuleles. They
One library lets
patrons take out a
sewing machine and
a spinning wheel.
were a hit with patrons so the
library branched out into
bongo drums and banjos,
among other instruments.
Recently, the library asked
people what else they would
like to borrow. Ms. Downing
says she tries to keep an open
mind at survey responses,
such as requests for kayaks,
canoes and snowshoes, but did
a double take when someone
suggested a Geiger counter.
There were two requests for
kittens and puppies. While she
can’t see cats and dogs in the
library, she says, “Who
knows?” Snowshoes are a se-
rious contender, she allows,
adding, “These programs take
a leap of faith.”
Some librarians say the un-
orthodox loans aren’t a sur-
vival strategy but a response
to what their communities
want. “We are not doing this
to make it through some cata-
clysm. It is not about ‘books
are over,’ ” says Eli Neiburger,
deputy director of the Ann Ar-
bor District Library, who adds
that libraries have questioned
their offerings for decades.
Early in the 20th century, he
says, there were debates
about whether libraries should
stock popular fiction or carry
children’s books.
While Ann Arbor lets pa-
trons take out a sewing ma-
chine and a spinning wheel,
books remain in demand.
“They have declined slightly,
but we still circulate hundreds
of thousands,” he says.
The library also lends ther-
emins, a type of electronic in-
strument dating to the 1920s.
The theremin’s spooky tones
evoke soundtracks from old
sci-fi and horror movies, Mr.
Neiburger says, and tend to
grate on parents after their
children spend hours tinkering
with the instrument. “It starts
being obnoxious,” he says,
“and it has to go back to the
library.”
In Southold, library direc-
tor Caroline MacArthur wants
to install a book stand in the
local laundromat. Patrons
could read during the wash
and dry cycles, then take
books home.
As far as loans beyond fish-
ing poles and the telescope,
Ms. MacArthur has a really
zany notion: “Maybe a beach
bag with—I hesitate to say
it—books.”
THE WALL STREET JOURNAL.
MEMOIR
Continued from Page One
hogtied the terrified Clutters,
Herb and Bonnie and their
teenagers Nancy and Kenyon,
assuring them that they
meant no harm right up until
the instant that they blasted
each in the head with a shot-
gun.
Hickock gleefully described
how, in a house the killers
kept dark to avoid the atten-
tion of neighbors, he shined a
flashlight on each victim’s
head while Smith pulled the
trigger. Of the instant Smith
emptied a shell into the face
of 15-year-old Kenyon Clutter,
Hickock wrote, “I would of
liked to see the embalmer fill
that hole.” In the document,
the only regret Hickock ex-
pressed was that Smith did all
the killing.
The twist comes in why
they did it.
New motive
In Mr. Capote’s telling—
which echoed the case prose-
cutors presented at trial—
Hickock and Smith entered
the house believing that Mr.
Clutter kept $10,000 in a safe,
based on a tip Hickock had re-
ceived from a cellmate during
a recent stint in prison. Once
they discovered no such safe
existed, they could have fled
with little chance of getting
caught, since the Clutters
didn’t know their identities
and since limited investiga-
tive resources would have
been devoted to a robbery
that left nobody hurt and that
fetched only $40. The mur-
ders made no sense. In inter-
views following the publica-
tion of “In Cold Blood,” Mr.
Capote theorized that Smith
snapped at the sight of an in-
tact family—something he
had never had.
In his manuscript, however,
Hickock suggested that some-
one named Roberts paid them
to kill one or more of the
Clutters. Describing the mo-
ment he and Smith parked in
the Clutter drive, Hickock
wrote, “I was going to kill a
person. Maybe more than one.
Could I do it? Maybe I’ll back
out. But I can’t back out, I’ve
taken the money. I’ve spent
some of it. Besides, I thought,
I know too much.”
Two handwritten pages
later, with the Clutters now
held hostage, Hickock de-
scribed a sense of urgency
mounting as he and his part-
ner searched the house. “We
were running short on time,”
Hickock wrote. “It was almost
two o’clock and our meeting
The implication likely
would have infuriated
Mr. Capote and also
the KBI detectives.
with Roberts was about an
hour away. We didn’t want to
miss that. Five thousand
bucks is a lot of dough.”
The reasons to discount
Hickock’s claim go beyond his
lack of credibility as a patho-
logical liar. If he and Smith
were paid to kill the Clutters,
why didn’t they use that in-
formation to try negotiating
their way off death row? Why
were they dirt poor before
and after the crime? Why did
Hickock, later in the manu-
script, describe the killings
with no mention of a Roberts?
And how to explain the role of
Floyd Wells, the former cell-
mate of Hickock’s (and former
Clutter employee) who testi-
fied that his jailhouse talk of
a cash-stuffed safe was what
got Hickock obsessed with the
Clutters?
After reviewing the manu-
Truman Capote, author of ‘In Cold Blood,’ shown outside the Clutter
home in Holcomb, Kan., in 1967, was given access to the killers
during their time on death row. Journalist Mack Nations, right,
worked on Hickock’s manuscript and tried to have it published.
* * * *
‘But I can’t back out, I’ve taken the money. I’ve spent some of it.
Besides I thought, I know too much.’
Richard Hickock’s handwritten manuscript on the Clutter murders suggests the killers were paid for the job.
script at the request of The
Wall Street Journal, Michael
Stone, a Columbia University
psychiatrist specializing in
the study of killers, said, “I
don’t believe for a minute
that they got paid to do it.”
Also improbable is that the
Hickock manuscript would
have remained undiscovered,
and the story surrounding it
untold. As a book that created
the so-called nonfiction novel,
launched the true-crime genre
and made Mr. Capote an icon
of 20th-century American lit-
erature, “In Cold Blood”
spawned articles, books and
films galore. Two years ago,
the Weinstein Co. optioned
television rights to “In Cold
Blood,” and last fall, Sundan-
ceTV announced plans for a
four-part documentary on the
Clutter murders.
Yet the story of Hickock’s
literary project has escaped
attention of even Capote
scholars, even though Hick-
ock’s partner in that project
was the late Mack Nations, a
prominent Kansas journal-
ist. “I didn’t know about any
Hickock manuscript, and I’d
never heard of Mack Nations,”
said Ralph Voss, who spent
years researching his ac-
claimed 2011 book, “Truman
Capote and the Legacy of In
Cold Blood.”
Officials of the KBI and
Kansas attorney general’s of-
fice declined to respond to
questions about the Hickock
manuscript, or any suggestion
that a person named Roberts
ordered the killings.
In 1962, Mr. Nations sent to
Kansas authorities a copy of
the manuscript he had re-
ceived from Hickock. That fell
into the possession of Robert
Hoffman, a lawyer in the Kan-
sas attorney general’s office
who successfully batted down
Hickock’s and Smith’s appeals
for clemency. When he died,
the copy passed to his son,
Kurt Hoffman. After the Jour-
nal learned of it, the younger
Mr. Hoffman agreed to let the
Journal review the manu-
script.
Mack Nations deal
A look at the history of the
Hickock/Nations project sug-
gests that its obscurity isn’t
necessarily an accident. Docu-
ments on file at the Kansas
Historical Society in Topeka
and the New York Public Li-
brary, along with letters of
Mr. Capote and interviews
with people who knew Mr.
IN DEPTH
A captured Richard Hickock is led out of jail in Las Vegas in 1960. His handwritten manuscript, lost
before now, describes the murder of the Clutter family and his days on the run with Perry Smith.
Nations, suggest that Kansas stallments to Mr. Nations,
prison and law-enforcement who would fashion it into a
officials sought to thwart the book-length manuscript, ac-
Hickock/Nations book while cording to the younger Mr.
enabling Mr. Capote’s. Nations and to prison corre-
“Capote was telling the spondence on file at the Kan-
story that Kansas authorities sas Historical Society.
wanted told, and Mack Na- Over the following months,
tions was telling a story that Hickock sat on death row
they wanted to silence,” said writing about 200 pages by
Houston probation officer Mi- hand, putting his initials in
chael Nations, son of the late the top corner of some pages.
Mack Nations. Whether he saw himself as
In early 1961, a year after competing with Mr. Capote
Hickock and Smith were con- isn’t known. At that point,
victed of killing the Clutters, Hickock hadn’t seen Mr. Ca-
Mack Nations visited the Kan- pote in more than a year, not
sas State Penitentiary in Lan- since the author had traveled
sing to write stories about to western Kansas for the
death row for his employer, Clutter-murders trial. In the
the Wichita Eagle. While he film “Capote,” the author is
was interviewing Hickock the portrayed as a constant visi-
idea of a book arose, and ulti- tor to death row. In fact, an
mately they agreed to a joint execution date and almost
venture. Hickock would write two years passed without Mr.
his story and mail it in in- Capote paying any visits to
the eastern Kansas prison
where Smith and Hickock
awaited the gallows, docu-
ments at the Kansas Histori-
cal Society show.
It was only after KBI Detec-
tive Alvin Dewey, chief inves-
tigator in the Clutter case,
STEVE SCHAPIRO/CORBIS/GETTY IMAGES (CAPOTE); NATIONS FAMILY
wrote to Mr. Capote in May
1961 informing him of the
Hickock-Nations project that
Mr. Capote made plans to
visit death row, according to
the letter, now in the Capote
collection at the New York
Public Library. By then, how-
ever, he faced an obstacle: A
few months after Hickock be-
gan sending his story to Mr.
Nations, Kansas prison offi-
cials imposed a new ban on
visits and correspondence be-
tween the media and death-
row inmates. The reason for
the ban isn’t clear.
Saturday/Sunday, March 18 - 19, 2017 | A11
Mack told me Capote wanted
to buy the manuscript from
him.”
Alan Schwartz, a California
attorney who represents the
Capote estate, didn’t return
emails and calls seeking com-
ment.
By that time, early 1962,
Mr. Nations had fashioned
Hickock’s writing into a book
and sent it to Random House,
apparently unaware the pub-
lishing house already had
signed a contract with Mr. Ca-
pote to write about the Clut-
ter murders.
Soon after, when a package
came back from the publisher,
Mr. Nations handed it to Ms.
Wise and asked her to open it,
she said. “When I asked him
F. MARTIN RAMIN/THE WALL STREET JOURNAL
what it was, he said, ‘It’s my
retirement,’ ” said Ms. Wise,
now an 81-year-old insurance
agent in Wichita. But it was a
rejection. “As I recall, the let-
ter said Random House al-
ready had Capote under con-
tract,” she said.
Income-tax case
A month after Mr. Nations
gave state officials the copy
of Hickock’s letters, federal
prosecutors in Topeka
brought income-tax evasion
charges against the journalist.
The case was related to an al-
leged payoff to Gov. Fred Hall
that Mr. Nations was accused
of handling in 1955, when he
was in an earlier job as the
politician’s executive secre-
tary. The $10,000 bribe was
allegedly paid by Kansas law-
yers to arrange parole for
someone who had performed
an illegal abortion that re-
sulted in death. Mr. Nations
was charged with tax evasion
on his alleged $5,000 cut.
When Mr. Capote learned,
via the KBI, of the indictment
against Mr. Nations, he ex-
pressed delight. “Remember
Mack Nations, the newspaper
bastard who has caused me so
much trouble?” he wrote in a
March 1962 letter to Random
House founder Bennett Cerf.
“Well, he has been arrested
for income tax evasion!” The
letter was reprinted in “Too
Brief a Treat: The Letters of
Truman Capote,” a book ed-
ited by Capote biographer
Gerald Clarke and published
in 2004.
Mr. Nations was acquitted
after a trial. But his career at
the Wichita Eagle was over,
and legal expenses had ruined
him financially, according to
his son. Mr. Nations moved to
Colorado, took charge of a
small newspaper and died in a
single-car accident in 1968,
two years after “In Cold
Blood” became an interna-
tional sensation.
After its rejection, Mr. Na-
tions’ manuscript remained
for years with Ms. Wise.
ASSOCIATED PRESS
Eventually, Ms. Wise said she
delivered the manuscript to
Mr. Nations’ mother. Called
“High Road to Hell,” the man-
uscript found its way back to
him in Colorado, where his
son recalled seeing it on his
father’s desk shortly before
Mr. Capote hired a power- his death. “After he died, no-
ful Kansas law firm to seek an body ever saw it again,” said
exception for himself to the Michael Nations.
ban, according to documents The journalist’s son be-
at the Kansas Historical Soci- lieves it is no coincidence that
ety. That effort was success- the federal charges against
ful, and in January 1962 Mr. his father came a few weeks
Capote paid his first visit to after state officials received a
Smith and Hickock at the pen- copy of the Hickock manu-
itentiary. script. “They trumped it up to
put a stop to that book,” said
the younger Mr. Nations, who
Rejected book in recent months has posted
That same month, state several long YouTube videos
prison officials requested in which he theorizes that the
from Mr. Nations a full copy Clutter killings might have
of the raw manuscript he had been a paid hit and his father
received in installments from the victim of a coverup.
Hickock. Mr. Nations complied The only piece of Hickock’s
on Feb. 1, 1962, although in a writing that Mack Nations
cover letter to Mr. Hoffman in ever published was a short
the Attorney General’s office story in a long-defunct maga-
he expressed dismay that the zine called Male in late 1961,
ban prohibiting him from vis- in which Hickock came off as
iting or corresponding with unrepentant and repugnant.
Hickock had been lifted for The Male magazine story ac-
Mr. Capote. “I can’t help but knowledged that Smith and
feel the attorney general’s of- Hickock killed the Clutters but
fice played a little politics in made no mention of anyone
opening the penitentiary to paying them to do the killing.
Truman Capote while all Smith and Hickock were
other reporters, including my- hanged in 1965.
self, are prohibited from mak- Ms. Wise said Mr. Nations
ing such visits,” he said in the once remarked to her that
letter, acquired by Gary McA- “there was something fishy
voy, a Capote scholar and the about the Clutter case. But he
author of a coming book wouldn’t say what.” She de-
about the Clutter case. scribed the late journalist as a
Meanwhile, Mr. Capote gregarious raconteur who also
tried getting his own copy of had a penchant for secrecy.
the Hickock manuscript, ac- In the lengthy section of
cording to Shirley Wise, then “In Cold Blood” devoted to
a general assignment reporter the Clutter killers’ five years
at the Wichita Eagle. “Capote on death row, Mr. Capote por-
called the Eagle asking for trayed Hickock as a vain hood
Mack Nations, and I answered who spent his time reading
the phone,” said Ms. Wise, erotic literature and legal
who was also Mr. Nations’ manuals on how to seek clem-
girlfriend back then. “I trans- ency. He never mentioned
ferred the call to Mack, and I that Hickock tried publishing
heard him say, ‘Hell, no!’ his own book about the case.
A12 | Saturday/Sunday, March 18 - 19, 2017 * *** THE WALL STREET JOURNAL.

SPORTS
HEARD ON MARCH MADNESS

‘Nova Is Hung Up on Phones

THE FIELD

BY ANDREW BEATON AND

BEN COHEN

THE NIGHT BEFORE every game

in the NCAA tournament, the play-
ers on Villanova’s basketball team
will hear knocks on the doors of
their hotel rooms. They’re being
robbed.
Beast Mode Looks But the thief is one of their
coaches—and he wants their tech-
Into the Black Hole nology. He confiscates all their
Marshawn Lynch on Friday was electronics and removes the Wild-
reportedly contemplating a return cats from the modern world: no
to his Bay Area gridiron roots for laptops, no tablets and, worst of
an Oakland Raiders team that has all, no cell phones.
long been nostalgic for formerly “I feel naked without it,” says
great running backs. freshman guard Donte DiVincenzo.
Despite sitting out all of last The Wildcats have the best
year while officially retired, the five- chance of any reigning NCAA tour-
time Pro Bowl rusher is widely ru- nament champion in the last de-
mored to be orchestrating a return cade to win back-to-back titles, ac-
to the NFL from the Seattle Sea- cording to statistical models. The
hawks, who own his rights but No. 1 overall seed has only gotten
would be obligated to pay him $9 better after Kris Jenkins’s buzzer-
million this year unless they release beating, championship-winning
or trade him. three in last year’s all-time classic
The Raiders are said to be inter- title game against North Carolina.
ested. In many respects, that is no They cruised past Mount St.
surprise given the franchise’s proud Mary’s on Thursday and play No. 8
history of giving one-last-chance to seed Wisconsin in an intriguing
veteran ball carriers. round-of-32 game on Saturday.
The Raiders once courted a 47- At this point, every one of their
year-old Jim Brown, then the NFL’s strategies is worth examining.
all-time leading rusher, and subse- Their most unusual tactic some-
quently signed 30-something backs times comes as a shock to players.
Roger Craig, Eric Dickerson and It often produces anxiety, and it
Maurice Jones-Drew. None of those has even inspired resistance tac-
prior moves worked out for the tics. That’s what happens when
Raiders, as the trio combined for you take phones away from college
just 1,415 yards in three seasons. students. “They’re kids,” said Vil-
The Raiders are also said to be lanova coach Jay Wright. “They
CLOCKWISE FROM TOP LEFT: ELAINE THOMPSON/ASSOCIATED PRESS; RONALD MARTINEZ/GETTY IMAGES; CHRISTIAN PETERSEN/GETTY IMAGES

kicking the tires on another deco- don’t know how to focus.”

rated but aging running back in Wright has been enforcing this
Adrian Peterson. technology curfew for so long that
Lynch will be 31 this season. He he doesn’t remember exactly when
has totaled 9,112 yards in an NFL it started. He says his cell-phone
career that began in 2007. sequester may even go back to his
If a deal is done, Lynch would be time at Hofstra, where he was the
returning to the city where he led coach until 2001, which is six
Oakland Technical High School to a years before the first iPhone was
championship. He later starred in released.
college at nearby Berkeley for the By now, the players know what
California Golden Bears. to expect. Before every road game, Villanova’s Josh Hart after last year’s national title. Coach Jay Wright takes the team’s phones away before each game.
A transaction may be made eas- usually around 10 or 11 p.m., a Vil-
ier by the common history of the lanova staffer will go from hotel preseason trip to Spain over the It also helps that the nights before stash them in a cabinet during
clubs’ general managers. Reggie room to hotel room collecting all summer when he got a knock on games are when the phones of col- team meetings, according to a
McKenzie of the Raiders and the of the players’ electronics. The his hotel room door asking him to lege-basketball players blow up team spokesperson.
Seahawks’ John Schneider worked rush to retrieve their devices surrender his devices. He remem- the most. It’s when people “ask for No. 2 seed Duke used to take
together in the Green Bay Packers’ starts as soon as the players wake bers thinking: “Wait, why?” this, ask for that,” Wildcats junior its’ players phones the night be-
front office. up—even before team breakfast. The reason is simple: There is Phil Booth said. Without their fore games, according to a person
The Raiders were 12-4 in 2016, A night night without phones is mounting evidence that sleep is vi- phones, the players are left with familiar with the matter, but that
using a pass-heavy offense that about as long as Villanova’s play- tally important to athletes, and no- the televisions in their hotel was back when phones were
sputtered when quarterback Derek ers can last. They scramble to body struggles getting to bed at a rooms, and each other. mostly used as phones. The ban
Carr suffered a broken leg in week scroll through a full night’s worth reasonable hour more than young “The only thing to do,” Jenkins was rescinded several years ago.
16. Latavius Murray, who signed of text messages and Snapchats— people. Electronics are a scourge said, “is fall asleep.” This year, though, the Blue Devils
this week with the Vikings, led the because they know they’re about to sleep because of the wave- Other programs have experi- enacted a new piece of legislation:
team with 788 rushing yards. to have their phones stolen again. lengths of blue light that interrupt mented with this idea. But few no phones at team meals.
Ironically, Lynch could potentially That happens when they enter circadian rhythms and mess with have taken such drastic measures. The Wildcats say they abide by
be saying hello again to Oakland as the locker room before games. No our body clocks. But cell phones Michigan State coach Tom Izzo Wright’s more draconian law—but
the Raiders prepare to leave the phones in the locker room means are especially bad: 20% of people banned phones during team meet- there have been exceptions.
city for Las Vegas, a move that is no personal music, and that means between 19 and 29 years old are ings and bus rides in 2013. But he Years ago, Wright says, he
pending a vote by league owners. the players have to do something woken by an email, phone call or wasn’t willing to get any more ex- sniffed out a bait-and-switch
However the vote goes, owner crazy: talk to each other. text message several times every treme. “If I took the phones away scheme that involved at least one
Mark Davis said the team will play Villanova freshman forward Dy- week, according to a 2011 poll by the whole time, my guys would player handing over dummy de-
in Oakland for at least two more lan Painter remembers his bewil- the National Sleep Foundation. die,” Izzo said. The No. 9-seeded vices so he could keep the real
seasons. derment the first time his phone That can’t happen when Vil- Spartans are now allowed to have one. Wright even came up with a
—Michael Salfino was taken. The Wildcats were on a lanova’s players aren’t reachable. their phones on the bus, but they term for it: “fake phones.”

Weather
STRATEGY
Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.

BLUNDER OR BRILLIANCE?
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quickly fouled on purpose— Matthew Fisher-Davis of Vanderbilt was blamed for the loss.
U.S. Forecasts City Hi
Today
Lo W
Tomorrow
Hi Lo W City Hi
Today
Lo W
Tomorrow
Hi Lo W
seemingly thinking his team
s...sunny; pc... partly cloudy; c...cloudy; sh...showers;
Omaha 57 42 s 75 45 s Frankfurt 56 49 r 59 47 c
trailed by one. Northwestern frequently. They think about get off their average shot to
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice guard Bryant McIntosh hit it a different way: Would end the game, Northwestern
Orlando 79 55 s 80 49 s Geneva 52 44 r 61 40 pc
Today Tomorrow Philadelphia 44 34 sn 46 27 pc Havana 79 64 s 79 61 s both free throws to take the you rather have your of- would have a 49% at win-
City Hi Lo W Hi Lo W Phoenix 95 66 s 95 66 s Hong Kong 73 69 sh 75 68 c
Anchorage 22 10 pc 27 5 pc Pittsburgh 45 33 r 47 29 pc Istanbul 52 47 pc 55 45 sh
lead. Northwestern won the fense, or the other team’s ning, giving Vanderbilt a
Atlanta 67 40 sh 63 41 s Portland, Maine 35 20 s 38 23 c Jakarta 90 75 c 89 76 t game 68-66. “He’s down offense, decide the game? 51% chance, in this back-of-
Austin 83 60 c 82 59 pc Portland, Ore. 53 33 r 57 41 pc Jerusalem 65 48 pc 57 43 pc about it,” Vanderbilt coach This is all based on the the-envelope estimation.
Baltimore 50 34 sh 50 31 pc Sacramento 68 51 c 69 53 c Johannesburg 84 52 s 78 50 pc Bryce Drew said. “He made fact that Vanderbilt was far But what about after the
Boise 68 47 r 60 43 pc St. Louis 57 35 s 61 51 pc London 59 52 sh 59 51 c
Boston 38 30 pc 37 30 sn Salt Lake City 81 54 pc 72 52 c Madrid 71 41 s 74 46 s a mistake.” from a guarantee to win. foul? The game can play out
Burlington 37 17 c 37 18 pc San Francisco 65 53 c 66 53 c Manila 90 76 pc 90 75 s However, the fact is that Northwestern had time to a number of ways, but the
Charlotte 70 37 sh 61 32 pc Santa Fe 76 39 s 78 40 s Melbourne 84 61 s 88 69 s Fisher-Davis, intentionally get a good shot off—one idea is that fouling creates
Chicago 46 29 pc 54 44 s Seattle 50 36 r 51 37 pc Mexico City 73 47 pc 74 45 pc
Cleveland 44 34 sn 44 33 pc Sioux Falls 48 38 s 68 36 s Milan 71 47 pc 72 49 pc or not, may have given his that would likely win it con- various scenarios. Even if
Dallas 82 62 pc 84 63 s Wash., D.C. 54 37 sh 52 35 pc Moscow 47 35 c 47 38 r team a better chance at win- sidering it was a one-point both free throws go down,
Denver 79 49 s 78 46 pc Mumbai 92 78 s 94 78 s ning. And it’s a play that game with little time left. Vanderbilt’s offense still has
Detroit
Honolulu
46 31 sn 47 33 pc
82 69 s 83 72 s
International Paris
Rio de Janeiro
57
81
49 sh
72 t
58 46 c
80 71 t could change basketball if That’s why the numbers a chance to win the game.
Houston 81 59 pc 82 59 pc Today Tomorrow Riyadh 82 65 s 90 62 pc people weren’t so quick to say that if Fisher-Davis To be sure, this relies on
Indianapolis 45 30 c 53 39 pc City Hi Lo W Hi Lo W Rome 62 51 pc 64 48 pc make him a pariah. didn’t foul, the Commodores a simplistic set of assump-
Kansas City 62 43 pc 78 56 pc Amsterdam 54 48 r 55 47 c San Juan 82 72 sh 83 72 sh
Las Vegas 90 63 s 88 65 pc Athens 62 51 s 68 54 pc Seoul 58 32 pc 62 36 s This strategy seems to- had just over a 50% proba- tions—the numbers can go
Little Rock 72 47 pc 73 57 pc Baghdad 82 56 c 70 52 t Shanghai 58 50 c 59 52 c tally insane, and there likely bility to win. Consider that either way, depending on
Los Angeles 75 53 pc 74 54 pc Bangkok 92 78 t 93 80 pc Singapore 87 78 c 88 77 pc isn’t a single NBA or college the Wildcats only needed a the quality of the foul
Miami 77 59 pc 82 62 s Beijing 70 37 s 68 48 pc Sydney 76 73 sh 79 71 sh
Milwaukee 44 30 pc 46 38 s Berlin 46 33 r 49 46 r Taipei 74 67 pc 73 67 sh coach that would try it. two-pointer and they hit shooter and whether a team
Minneapolis 44 31 pc 58 36 pc Brussels 56 50 r 54 48 c Tokyo 55 45 pc 58 46 s Except to the rest of the 49% of their twos this sea- thinks its offense or defense
Nashville 65 34 pc 60 43 s Buenos Aires 73 54 s 74 57 s Toronto 35 26 sf 40 26 pc world, it isn’t so crazy. In- son. They also, conveniently, is better. What’s ultimately
New Orleans 77 60 pc 76 57 pc Dubai 87 75 s 91 77 s Vancouver 48 36 sh 48 35 s
New York City 38 30 sn 40 29 sf Dublin 55 49 sh 55 45 r Warsaw 45 33 r 45 36 pc ternational basketball teams hit 49% of shots in this spe- clear is that this was by no
Oklahoma City 76 59 pc 83 63 s Edinburgh 53 47 sh 53 39 c Zurich 50 46 r 60 41 c try these things far more cific game. So if they could means a fatal blunder.
THE WALL STREET JOURNAL.
THE WEEKEND INTERVIEW with Thomas Sowell | By Tunku Varadarajan
The Education of an American Sage
T
Stanford, Calif.
homas Sowell is sitting in
my chair. He’d driven in
to Stanford University
from his home 50 miles
away, and since he’s 86
years old, the least I could do was
to let him choose between the two
seats in my office. So he parks be-
hind my desk on the lovely chair
that swivels, and I face him,
hunched and immobile, on the
other side—a fitting way to inter-
view one of America’s great sages.
This feels like the perfect time
to ask Mr. Sowell to ruminate on
the things that have mattered most
to him. He’d announced, at the end
of 2016, that he would give up the
newspaper column he’d written for
Creators Syndicate for more than
25 years, a retirement that sug-
gested the end of an era. Before
that Mr. Sowell, an economist and
conservative, had written columns
for another news service, Scripps-
Howard, but had quit after an edi-
tor changed a line about carbon
monoxide emissions to read as one
The scholar and longtime
columnist discusses his
rise from poverty and the
country’s ‘degeneration’
into ‘grievance culture.’
about “carbon dioxide.” This
caused an indignant Mr. Sowell to
terminate his contract—perhaps
the original source of his fearsome
reputation among editors. (When I,
as an editor for this page, was
handed a Thomas Sowell piece to
work on back in 2001, my boss
whispered to me: “Careful, it’s
Sowell. Don’t change anything.”)
Thomas Sowell was born into
poverty in North Carolina, in 1930.
At age 9, he moved with his mother
to Harlem, in New York, to live
with relatives who promised a bet-
ter life for the boy. There he visited
a library for the first time, and
though he’s not entirely sure, he
thinks the first books he borrowed
from this “wondrous” institution
were “The Story of Doctor Dolittle”
and “Alice in Wonderland.”
A family friend called Eddie—a
boy roughly Mr. Sowell’s age—had
taken it upon himself to help the
callow little Southerner navigate
his new metropolitan minefields. “I
was assigned to a junior high
school in a really very bad part of
Harlem, and Eddie told me, ‘You
don’t have to go there. You can ask
to be sent to a different school.’
That’s what he’d done. And then I
followed him to Stuyvesant”—a se-
lective high school for smart kids.
“He led me. If you take Eddie out
New York’s Investigated Mayor Gets Away Scot-Free
New York
Bill de Blasio could
hardly be blamed if
he celebrated St.
Patrick’s Day with a
few cold ones and a
long sigh of relief.
CROSS
COUNTRY This week showed
New York’s mayor to
By Elisha
be one lucky lepre-
Maldonado
chaun.
With re-election
coming this November, Mr. de Blasio
had faced a litany of inquiries, both
state and federal, into his past politi-
cal fundraising. Did the mayor and
his cohorts violate election law by
funneling hundreds of thousands of
dollars through upstate county com-
mittees? Did he trade government fa-
vors for donations to his now-defunct
nonprofit? Manhattan’s U.S. Attorney
Preet Bharara—a prosecutor with a
reputation for taking down politi-
cians on corruption charges—seemed
to be circling Mr. de Blasio.
Bill de Blasio seems
destined for re-election
now that prosecutors
say he won’t be charged.
All that has changed. Mr. Bharara
is now unemployed, fired by Presi-
dent Trump last week after refusing
to resign. Then on Thursday federal
and state prosecutors announced
that they wouldn’t charge Mr. de
Blasio after all. A statement from
Mr. Bharara’s successor, the acting
U.S. attorney, cited the “totality of
the circumstances here.” A longer
letter from the Manhattan district
attorney, Cyrus Vance Jr., noted that
the campaign activity appeared
“contrary to the intent and spirit of
the laws” but said that under state
law “the parties involved cannot be
appropriately prosecuted.”
* * * *
of my life, there’s virtually no way I
could have followed the same path
that I did.”
Having dodged a calamitous ed-
ucation solely on the advice of a
worldly child, it isn’t surprising
that Mr. Sowell—who went on to
earn degrees from Harvard, Colum-
bia and the University of Chicago
before teaching at some of the
country’s finest universities—has
had a lifelong distaste for the
“ideologues” who have come to run
America’s schools.
The nomination of Betsy DeVos
as education secretary, and the
possibility of promoting charter
schools nationwide, so energized
Mr. Sowell that he “briefly came
out of retirement to write two col-
ZINA SAUNDERS
umns in support—because I
thought that this is a moment that
might not come again in our life-
time, and I mean even the younger
people’s lifetime. If we lose it now,
we may have lost it forever.”
Mr. Sowell has what he calls “my
reservations” about Donald Trump,
but he gives the president credit
for being “the first Republican
who’s made any serious attempt to
get the black vote by addressing
problems that affect most blacks
who are trying to do the right
thing—such as education, which is
such low-hanging fruit.” Republi-
cans have “no reason whatever to
be worried about teachers unions,
because the teachers unions aren’t
going to vote for them anyway,” he
says. “They’re spending millions of
dollars trying to get Democrats
elected.”
But the good that can be done is
obvious to Mr. Sowell. “The most
successful schools for educating
black kids have been a few charter
schools,” he says. “There are liter-
ally tens of thousands of kids on
waiting lists for charter schools in
New York alone. You needed some-
body who was going to fight to
break through these caps that have
been put on the number of charter
schools.”
Mr. Sowell has stopped swivel-
ing in my chair, and he looks
straight at me to make his next
point. “You see, in order to get
these reforms, you would have to
go against the dogmas not only of
educators, but of the American in-
telligentsia in general,” he says.
“The teachers unions complain that
charter schools really have
skimmed off the cream. Of course
that’s nonsense, because people are
chosen by lottery. In another sense,
there’s a point there, because these
are the parents who care about
what’s going to happen to their
kids. These people are just desper-
ate to get into the charter schools.
They don’t want to be raising a
bunch of little thugs.”
If a Republican could manage
Mayor de Blasio has insisted all
along that there was nothing to see
here: “We did everything right,” he
told a local TV station at the end of
January. “My team did everything
right. I did everything to abide by
the law and comport ourselves in an
ethical fashion.” Still, it’s hard not to
raise an eyebrow at the details.
Mr. de Blasio’s nonprofit, Cam-
paign for One New York, essentially
supported his pet projects, like elim-
inating income inequality, creating
universal prekindergarten, building
affordable housing, tackling police
brutality, and getting horse-drawn
carriages full of Central Park sight-
seers off city streets. (The animal-
rights group Nyclass came out heav-
ily against Mr. de Blasio’s rival in the
2013 mayoral race.) Hizzoner raised
$4.3 million for the nonprofit before
shutting it down last year, saying it
had done its job. A serious question,
though, is why it donors were
largely people and groups with some
sort of business or special interest
before the city.
Perhaps the shadiest was a spe-
cial deal to lift deed restrictions on
a Lower East Side nursing home,
thereby allowing its owners to make
a $72 million profit by selling the
building, which will now be turned
into luxury condos. The deed-change
was heavily backed by a local of the
Service Employees International
Union, which conveniently heavily
backed Mr. de Blasio for mayor.
There’s also a lobbyist who worked
for the company that bought the
building and had raised funds for the
mayor and donated $10,000 to the
Campaign for One New York. But ev-
eryone, of course, denies everything.
The SEIU says it didn’t know the
building would be sold. Mr. de Blasio
says he found out about the deal
from the news.
While the investigations were go-
ing on, Mayor de Blasio tried to shore
up his cred with national progres-
sives. Hours after being interviewed
OPINION
to enact school choice, Mr. Sowell
says, “he would have some hope
of beginning the process of peel-
ing away black votes from the
Democrats. It doesn’t have to be a
majority of the black vote. If
there’s a narrow race for Con-
gress, and you can reduce the
black support for the Democrats
from 90% to 80%, that could be
the difference.”
H
ow has America changed
over Mr. Sowell’s lifetime?
“Oh my God,” he responds,
“that is truly a depressing subject.”
He laments the “huge degenera-
tion” and what he sees as the
spread of “the grievance culture to
low-income whites—and even to
places like Great Britain.”
An idea has taken root “that
you’re entitled to certain things,
that you don’t necessarily have to
earn them,” he says. “There’s a be-
lief that something’s wrong if you
don’t have what other people
have—that it’s because you’re ‘dis-
advantaged.’ A teenage dropout
mother is told she has a disadvan-
tage. But if you’re going to call the
negative consequences of chosen
behavior ‘disadvantage,’ the word
is corrupt beyond repair and useful
only for propaganda purposes.”
Has there been any change for
the better? “Oh, yes, yes, yes,” he
says. “In fact, for blacks who have
education and who have not suc-
cumbed to a new lifestyle—the
grievances, and the coarseness rep-
resented by rap music—it’s gotten
tremendously better. What’s dis-
heartening, though, is that when
you study ethnic groups around the
by Mr. Bharara last month, the mayor
jetted to the Democratic National
Committee’s winter meeting in At-
lanta. His welcome was chilly.
“They’re not happy he’s here,” one
Democratic source told the New York
Post. Nothing quite sticks out like a
6-foot-5 man standing alone at a
party with people who don’t care a
whit about him.
Now that the prosecutors have
backed off, this year’s mayoral cam-
paign may turn out to be pretty con-
ventional—meaning Mr. de Blasio
seems destined to win. Still, a
strong challenger would have plenty
of ammunition: gross mismanage-
ment of the city’s Administration for
Children’s Services, numbers of
Notable & Quotable: Mere Fiscal Christianity
From James Freeman’s Best of
the Web, WSJ.com, March 17:
Nicholas Kristof of the New York
Times is having fun implying that
Speaker of the House Paul Ryan’s
effort to replace ObamaCare is at
odds with Mr. Ryan’s Catholic faith.
The column is of a piece with the
“Jesus was a socialist” arguments
that bounce around the left half of
the social media universe.
Without wrestling with any diffi-
cult questions of faith or logic, Mr.
Kristof simply casts the federal bu-
reaucracy in the role of Jesus. Then
the Timesman proceeds to suggest
through satire that by seeking to re-
duce outlays and improve incentives
in federal programs, Mr. Ryan is de-
fying the will of his God. Of course
if federal agencies were ever actu-
ally given the statutory mission to
do as Jesus would do, Mr. Kristof
would be as horrified as anyone.
But this seems to be a political sea-
son when people who spend much
of the year driving religion out of
public life abruptly drag it back in
Saturday/Sunday, March 18 - 19, 2017 | A13
world, the ones that are lagging
behind are those where their lead-
ers always tell the same story: that
it’s other people holding you back,
and that therefore you need to
stand against those other people
and resist their culture. But that
culture may be the key to success.”
Here Mr. Sowell pivots to 18th-
century Scotland and the philoso-
pher David Hume: “Hume urged
Scots to learn the English lan-
guage,” he says. “He didn’t do
that because his job was that of
an ethnic leader. He did it because
he was an intellectual.” Yet it
helped bring progress to his
homeland. “One of the most mi-
raculous advances of a people oc-
curred in Scotland from the 18th
century into the 19th,” Mr. Sowell
says. “A wholly disproportionate
share of the leading British think-
ers was Scottish. I mean Adam
Smith in economics, Hume in phi-
losophy, Sir Walter Scott in litera-
ture, James Watt in engineering.
You can run through the whole
list. A people who were really far
behind in one century had sud-
denly come out of nowhere and
were on the forefront of human
progress.”
Could black Americans one day
be like the Scots? “They can be,”
says Mr. Sowell, “and for those
who haven’t gotten into this corro-
sive new culture, they’re already
doing that. But it’s going to be very
hard. Both the media and academia
promote the idea that people fall
behind because others are holding
them back.”
I ask Mr. Sowell to talk about
some of the public figures he’s
homeless that never seem to square
when Mr. de Blasio gives figures for
those to whom his government is
providing shelter.
There are also the little things—
for instance, time. In 2015, the
mayor missed half of the St. Pat-
rick’s Day parade in Queens because
he didn’t show up soon enough. (He
explained that there had been “some
stuff we had to deal with.”) The year
before that he was so late to a
morning memorial service for a
2001 airliner crash that he missed
the moment of silence. (He’d had a
“very rough night, woke up slug-
gish.”) Then Mr. de Blasio’s tardi-
ness to board a commercial flight
out of JFK Airport left an entire
as they attempt to justify big gov-
ernment. It’s not necessarily per-
suasive.
The ancient book has numerous
admonitions to perform charity and
various condemnations of greed,
but it’s not easy to find a passage in
which Jesus says that government
is the best vehicle to provide aid, or
that anyone should force others to
donate.
Even casual readers of the Bible
may notice that Jesus doesn’t get
along all that well with the political
authorities of his time and (spoiler
alert!) his relationship with govern-
ment ends rather badly. Back then,
tax collectors were not presumed to
be the dedicated public servants
that we appreciate so much today.
And in our own time, social conser-
vatives who think the U.S. govern-
ment has become hostile to reli-
gion—Christianity in particular—
should consider what Jesus had to
put up with.
Fortunately, in part because of
the influence of the Bible on Amer-
ica’s founders, we enjoy a form of
admired: “Oh, Milton Friedman,
certainly. He was one of the few
people I know who had both genius
and common sense.” (Friedman,
who died in 2006, was Mr. Sowell’s
colleague at the Hoover Institution,
where I also work.)
Growing up, Mr. Sowell admired
Joe DiMaggio, Joe Louis and Frank-
lin D. Roosevelt. Later, he says, he
“realized what tremendous damage
FDR had done. But I think two out
of three is not bad!”
I press him on the sportsmen,
wondering how they came to be
the idols of a cerebral economist.
He talks with visible awe of DiMag-
gio. “There’s a famous moment in
the World Series—1947—between
the Yankees and the Dodgers. The
Dodgers are leading. Joe DiMaggio
comes up with runners on the base,
and he hits a blast, 415 feet to left
field. The Dodgers outfielder
catches right up against the 415-
foot sign. If that had been a home
run, that would have put the Yan-
kees ahead.
“DiMaggio by this time is round-
ing second base. He gives a little
kick of the dust and goes on back
in. That was the biggest outburst
there had been from DiMaggio in
his career. It wasn’t that violent a
kick, just enough to barely raise a
little dust. I still remember that
self-control all these years later.”
And Joe Louis? “He was a gen-
tleman, who carried himself in a
certain way that inspired respect.
I’m not a big fan of the role model
thing, but it has its effect.”
Mr. Sowell recalls a time when
he was “quite young, maybe 5
years old, down in North Carolina.”
One day, a kid told him that he had
“some big secret down in his base-
ment that he wanted to show me. I
said, ‘What’s down there?’ and he
said, ‘Just go down in the base-
ment, you’ll see.’ He had me go
down first—which I shouldn’t have
done, but I did, and he ran back up-
stairs, closed the door, and locked
me in that pitch-black basement.”
T
he furious young Tom pushed
and kicked at the door, and
forced it open. “I think I was
angrier than I ever had been—that
I’d ever been before or since. He
was standing there and I came at
him and just hit him as hard as I
could. The punch must have landed
just right, because he went down
and out. He was prone on the
ground, limp as a dishrag. and I
was going to hit him again. I could
have killed him. But something
stopped me, a thought in my head.
“ ‘Joe Louis wouldn’t do that,’ I
said to myself.”
Mr. Varadarajan is a fellow at
Stanford University’s Hoover Insti-
tution.
planeload of passengers waiting 20
minutes.
There’s a maxim that a person
who can’t do the small things well
shouldn’t be trusted with the big
things either. It’s a timeworn truth
that Mayor de Blasio has worked
hard to fulfill since taking the city’s
reins in 2014. But no heavy hitter
has stepped up to challenge his re-
election. If New York can’t come up
with better mayoral competition in
the next few months, we’ll soon
watch Mr. de Blasio’s second inaugu-
ration—provided that the mayor
shows up in time to take the oath.
Ms. Maldonado is a member of
the New York Post’s editorial board.
government that is much more hu-
mane than the one that Jesus en-
countered. This raises the interest-
ing question of what Jesus would
say about our contemporary politi-
cal debates. Perhaps he would gaze
approvingly upon the $4 trillion an-
nual federal budget and intone,
“Whatever you do to the least of my
appropriations, you do to me.” But
would he still say that after examin-
ing all the line items? Beyond ques-
tions of specific allocations for
Planned Parenthood and the like,
would Jesus see even a relatively
benign government like ours as su-
perior to individual acts of charity
in comforting the afflicted?
In contrast to Mr. Kristof’s drive-
by, John Gehring nicely limns the is-
sues at the heart of this debate in a
2015 piece for the National Catholic
Reporter. . . . Mr. Gehring refers to
a 2012 lecture Mr. Ryan delivered at
Georgetown University. “Simply put,
I do not believe that the preferen-
tial option for the poor means a
preferential option for big govern-
ment,” said the Speaker.
A14 | Saturday/Sunday, March 18 - 19, 2017 * *** THE WALL STREET JOURNAL.

OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR

Tillerson Tells the Korean Truth Fed’s Sole Policy Should Be a Stable Dollar

R
ex Tillerson caused a stir Friday on his Trump Administration, which has to figure out Jason Furman (“What Should the from 2008-2015 in lost income on
first trip to Asia by—are you sitting a way to stop the North’s progress or accept a Fed Do Next? Follow the Leader,” op- their savings accounts, CDs and
ed, March 9) says “the Fed should be bonds. At the same time, it has
down?—telling the truth about North new existential threat to America’s homeland.
judged by its results.” He then says it eroded the value of these savings
Korea and China. The Secre- That’s the story behind Mr. has achieved its mandate of “stable through inflation.
tary of State may be a rookie A warning to China that Tillerson’s language, which prices,” which it defines as “2% infla- In 1966 former Fed Chairman Alan
diplomat, but he can’t do any the U.S. wants action seems aimed at both the tion.” Since when does 2% annual in- Greenspan wrote: “In the absence of
worse on North Korea than his North and its political patrons flation equal stable prices? This the gold standard, there is no way to
recent predecessors in both against a nuclear North. in Beijing. means that the Fed’s goal is for what protect savings from confiscation
political parties have. Mr. Tillerson noted that costs $1 today to cost $1.22 10 years through inflation. There is no safe
“Let me be very clear: The China has been punishing from now, or put another way, for $1 store of value. . . .The financial policy
policy of strategic patience has ended,” Mr. Til- South Korea economically because Seoul is de- today to have the purchasing power of the welfare state requires that
lerson said, referring to the Obama Administra- ploying America’s Thaad missile-defense sys- of 82 cents 10 years from now. This there be no way for the owners of
tion policy of waiting for North Korea to give up tem. “This is not the way for a regional power is not stable prices. wealth to protect themselves.”
The Founding Fathers tried to The Fed’s sole policy should be to
its nuclear ambitions or collapse. A day earlier to help resolve what is a serious threat to every-
keep our currency from being manip- keep the purchasing power of the
he criticized “20 years” of a “failed approach” one,” he said, referring to China. “We instead ulated for political purposes by set- dollar stable, favoring neither infla-
to the North’s nuclear ambitions. urge China to address the threat that makes ting a gold standard. They wanted a tion nor deflation. If it can’t do this,
He’s right about the failure. Going back to Bill Thaad necessary.” fixed value, the way an acre is an it should simply dissolve itself and
Clinton and diplomat Robert Gallucci’s Agreed He added that no U.S. tools are off the table acre, an inch an inch, a pound a suggest we go back on a gold stan-
Framework in 1994, three American administra- to defend itself and its allies—implicitly includ- pound. It took about $20 to purchase dard, because judging by its results
tions have sought to bribe Pyongyang into giving ing military force. And he said that if China can’t one ounce of gold from about 1792 so far, it has failed.
up its nuclear program and coax China to help. stop North Korea, then further nuclearization is until 1913, when the Fed was created. MICHAEL BIRD
They engaged in years of multi-government talks possible in the region. Far from being reckless, In 1913 gold was $20.67 per ounce. St. Anthony, Minn.
and offered cash or other concessions for North this merely recognizes that a Pyongyang regime Now gold is about $1,196 per ounce,
Korean promises that it never fulfilled. which means, relative to gold, the I am delighted to see that Mr. Fur-
with nuclear-tipped missiles may drive the vot-
value of the dollar has decreased man notes that the Fed actually does
President George W. Bush even took North ing public in South Korea and Japan to support 98%. Using the Consumer Price In- have three mandates. The third, of-
Korea off the list of terror-sponsoring states af- their own nuclear deterrent rather than rely as dex, it now takes almost a dollar ten-forgotten one—moderate long-
ter the North tested its first nuclear weapon in they do now on the U.S. ($.98) to purchase what $.04 would term interest rates—has not been
2006. And even as it came to light that Pyong- None of this is cheery stuff, but Mr. Tillerson’s have purchased in 1913. This is not met by the Fed despite Mr. Furman’s
yang had helped Syria build the beginnings of candor is appropriate for the threat and the mo- stable prices. assertions. Moderate means “not ex-
a nuclear program. Bush-era diplomats Condo- ment. He and President Trump are trying to per- Mr. Furman says the Fed “was the treme.” We have had near record low
leezza Rice and Christopher Hill have a lot to an- suade China that the new Administration is seri- first central bank to cut interest long-term rates for nearly a decade
swer for after they persuaded President Bush to ous about stopping the North before it could rates to zero.” Since price controls at the hand of the Fed. Record lows
give up a pressure campaign against the North explode a nuclear weapon over U.S. territory. have, over and over again, proven a is an extreme condition, not moder-
that was showing signs of success. China has ignored U.S. pleas in the past, so the bad idea, why is the Fed controlling ate. Also, the Fed has no right to
interest rates instead of the market? promote any inflation as that is
President Obama tried to coax the North with test will be getting Beijing to believe the new Ad-
The Fed’s policy has dramatically counter to the second mandate of
a similar invitation, but by then the Kim family ministration isn’t bluffing. driven up the prices of stocks and “price stability.” The Fed therefore is
regime had decided to build a nuclear-weapons The White House has several options, such as real estate while it has simultane- out of sync with two of its three
stockpile along with the missiles to deliver them. barring Chinese companies that do business ously cost retirees and poorer peo- mandates.
That’s when Mr. Obama settled on the “strategic with the North from the U.S. financial system ple who don’t invest in stocks or BRUCE JOHNSON
patience” doctrine that has now left the North and shooting down the North’s next missile real estate more than $1 trillion Riverwoods, Ill.
close to achieving the ability to destroy Seoul, launch. The starting point is recognizing that the
Tokyo or Seattle. world needs to change its failed strategy, and
All of this has been dumped in the lap of the good for Mr. Tillerson for saying so.
Missiles Pose Dire Threat to Electricity Grid
Iran’s New Crackdown Arthur Herman is right on when he
describes the threat of North Korea’s
communications, computers, cell
phones, refrigeration, sanitation,

I
missiles and a way to destroy them transportation . . . it would set us
ran will hold another Potemkin election in Mousavi have been under house arrest since (“There’s a Way to Stop a North Ko- back to the year 1910.”
May, and we can already predict the media 2011. Having hinted at freeing them during his rean Missile Attack,” op-ed, March In addition to deploying additional
narrative if one of the so-called hard-liners campaign, Mr. Rouhani has kept mum on their 13). In addition to our deployment of missile defense systems along our
wins the Iranian Presidency. cases since coming to office in the Thaad and Aegis missile defense East Coast and Gulf Coast (we cur-
The blame will lie with the Christians, journalists 2013. systems to protect South Korea and rently have interceptors in Califor-
Trump Administration for Then there is the crack- Japan (along with our troops), he nia), we should reinstate the EMP
failing to show sufficient re-
and opposition leaders down on Christians. The Is- calls for a boost-phase intercept. Commission, which testified to the
spect for “moderate” incum- are the latest targets. lamic Revolutionary Guard However, If North Korea, Iran or House Armed Services Committee
bent Hasan Rouhani. Except other “bad actors” sent a missile about this dire threat and recom-
Corps late last month arrested
armed with a small nuclear device to- mended ways to protect our electric-
Mr. Rouhani’s rule hasn’t been two Iranian Catholics in ward our coast and detonated it many ity grid, among other things. Alas, it
moderate. northwestern Iran and seized their Bibles and miles up in the atmosphere, it would was disbanded in 2009.
Witness the latest repression targeting the prayer books. The incident came to light in a create an electromagnetic pulse KARNA SMALL BODMAN
mullahs’ usual suspects. Tehran’s Prosecutor- Fox News report last week. (EMP) that would “fry” all the elec- Former Senior Director
General on Sunday announced it had sentenced It isn’t clear if the two Catholics, a mother tronics on the ground. As the former National Security Council
a couple to death because they had founded a and son, are converts, though that seems likely. head of our Ballistic Missile Defense (Reagan White House)
new “cult.” The announcement was short on de- Historic Christian communities such as Assyri- System told me, “we would have no Naples, Fla.
tails, but the charges could mean anything from ans and Armenians are afforded second-class
running a New Age yoga studio to a political- protection under Iranian law, while apostasy by
discussion club. Muslims is punishable by death. Despite some How Asset Forfeiture Ensnares the Innocent
The authorities have also detained Ehsan early rhetoric about tolerance, Mr. Rouhani has
Dave Erchull is correct that the then “charged” at civil trial with
Mazandarani, a reporter with the reformist been unwilling or unable to improve conditions current use of civil asset forfeiture wrongdoing. And when found liable
newspaper Etemad (“Trust”), according to the for religious minorities. is abhorrent (Letters, March 10). The for wrongdoing, the properties were
New York-based Committee to Protect Journal- There is also the status of some half a dozen abusive misuse of this practice, how- seized. In this way, government pun-
ists. The nature of the charges against Mr. Ma- U.S. and U.K. dual citizens who have been taken ever, is even worse than he realizes. ished distant criminals by at least
zandarani isn’t clear, and his relatives say he hostage by the regime while visiting Iran. These Contrary to Mr. Erchull’s claim stripping them lawfully of these
is on hunger strike in Tehran’s Evin Prison. He include father and son Baquer and Siamak Na- that “the original intent of civil as- properties.
had previously served most of a two-year sen- mazi, both U.S. citizens, and Nazenin Zaghari- set forfeiture was to combat orga- Yet today civil asset forfeiture is
tence on trumped-up security charges. Ratcliffe, a British citizen who is serving a five- nized crime and drug trafficking,” used to seize the properties of per-
Mr. Mazandarani’s detention followed last year sentence on secret charges. the original intent of civil forfeiture sons who are clearly within the ju-
week’s arrest of dissident reporter Hengameh Nearly four decades after it was born, the Is- in fact was to punish only wrongdo- risdiction of domestic courts. The le-
ers who are personally outside of gal fiction that the wrongdoers are
Shahidi, who also faces “national-security” lamic Republic remains an unbending tyranny.
the jurisdiction of the country’s inanimate properties is today used
charges. Ms. Shahidi has been an adviser to Me- The Trump White House shouldn’t spend en- courts. Civil asset forfeiture was simply to save law-enforcement offi-
hdi Karroubi, one of two pro-democracy candi- ergy hunting for moderate negotiating partners originally used only if and when per- cials the trouble of having to win
dates in 2009’s fraudulent election. Mr. Kar- in the Islamist regime because there aren’t any. sons suspected of criminal activities criminal convictions against sus-
roubi and opposition leader Mir Hossein They’re under arrest. could not be arrested and brought to pected flesh-and-blood wrongdoers
trial to face prosecution. Unable to before taking their properties. This
convict faraway suspected criminals, convenience, in turn, encourages
The De Blasio Standard civil forfeiture created the legal fic-
tion that these suspected wrongdo-
law-enforcement agencies to regard
far too many innocent property own-

P
rosecutors on Thursday smoothed New Blasio and his associates—some of whom took ers’ inanimate properties are the ers as suspected wrongdoers.
York Mayor Bill de Blasio’s path to re- leaves of absence from City Hall—devised a “co- wrongdoers. With the inanimate DONALD J. BOUDREAUX
properties (and only these proper- Professor of Economics
election this year by publicly exonerating ordinated campaign plan” that steered dona- ties) being within a domestic court’s George Mason University
him of misconduct. The mayor tions through county commit- jurisdiction, these properties were Fairfax, Va.
is lucky that prosecutors didn’t He gets off the hook for tees to state Senate
apply to him the same stan- behavior progressives candidates. They did this be-
dards that he and his fellow
progressives routinely apply to
cause union contribution lim-
denounce on the right. its for county committees How to Inculcate a Well-Rounded Graduate
conservatives. were 10 times higher than for In response to “The Liberal-Arts “To educate the body to the neglect
Acting U.S. Attorney Joon candidates. ‘Bubble’ Didn’t Always Cause Such of the mind and the soul makes a
Kim said in a statement that federal prosecutors District Attorney Cyrus Vance Jr. explained Trouble” by James Piereson and Na- man beastly. To educate the mind to
won’t bring criminal charges after investigating in a letter that the mayor’s coordinated cam- omi Schaefer Riley (op-ed, March 11): the neglect of body and soul leads to
I would agree that a liberal-arts edu- dead intellectualism. To educate the
the mayor and associates who solicited donations paign “creates an end run” around contribution
cation was never intended to provide soul to the neglect of mind and body
for his 2013 campaign and the now defunct non- limits and appears “contrary to the intent and students with a sheltered general results in fanaticism.”
profit Campaign for One New York. The latter si- spirit of the law.” But the DA could not prove studies degree. True liberal-arts edu- AARON AMMERMAN
phoned contributions from individuals and unions mens rea—a guilty mind—since an election law- cation in our world today should Lexington, Ky.
with business before the city—what liberals call yer had approved the run-around. train students to excel in a specific
“dark money”—into political advocacy. All of this underscores the double standard field while placing an additional em-
One inquiry centered on a deputy city com- of progressives who complain that the Supreme phasis on teaching them how to think Pepper ...
missioner who lifted deed restrictions on a for- Court’s 2010 Citizens United decision has al- critically about the world in which
mer AIDS nursing home, which allowed a com- lowed corporations to skirt contribution limits. they live. The end result is a well-
And Salt
pany with ties to one of Mr. de Blasio’s patrons Also recall how Milwaukee’s District Attorney rounded graduate who is prepared THE WALL STREET JOURNAL

to sell the property to a luxury condo devel- was exalted for harassing Wisconsin Gov. Scott for his or her field of study but who
also has learned the important “soft
oper at a $72 million profit. Mr. Kim said pros- Walker’s supporters based on dubious claims of
skills,” which include being able to
ecutors were unable to prove criminal intent illegal campaign coordination that were never think independently, solve problems,
given the “high burden of proof” and “clarity proven and rejected by the courts. effectively discuss and debate issues
of existing law.” While prosecutors were right to base their and work in a healthy way with oth-
Last year the Supreme Court tossed former judgments on the evidence and law, they vio- ers. Most employers will admit that
Virginia Governor Bob McDonnell’s corruption lated legal decorum with public exonerations these characteristics are lacking in
conviction, holding that the “basic compact un- that will help Mr. de Blasio politically. “Although our current workforce. To quote John
derlying representative government assumes it is rare that we issue a public statement about Wesley Hughes, who was the founder
that public officials will hear from their constit- the status of an investigation, we believe it is ap- of my alma mater Asbury University:
uents and act appropriately on their concerns.” propriate in this case at this time, in order not
Whether or not Mr. de Blasio offered a quid pro to unduly influence the upcoming campaign and Letters intended for publication should
quo under the McDonnell standard, he was will- Mayoral election,” noted Mr. Kim, who seems to be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
ing to give donors the impression that he would have adopted FBI Director Jim Comey’s new or emailed to wsj.ltrs@wsj.com. Please
do what he could to help. standard of disclosure. include your city and state. All letters
The Manhattan District Attorney has also The next time Senator Elizabeth Warren are subject to editing, and unpublished
been investigating allegations that the mayor howls about conservative “shadow groups,” will letters can be neither acknowledged nor
returned.
evaded state contribution limits. In 2014 Mr. de Mr. de Blasio ride to their defense? “I’m the muse of tax loopholes.”
THE WALL STREET JOURNAL.
Reach Across the Aisle, Mr. President
DECLARATIONS
By Peggy Noonan
A
ll the emphasis seems to
be on cutting. We will cut
CPB, NPR, NEA.
Why aren’t we talking
about growing and build-
ing and knocking down barriers?
Why aren’t we talking about jobs
and a boom and reforming regula-
tion and taxes so people can build
and invest?
Is cutting the absolute No. 1 pri-
ority right now? In a country that is,
in Pope Francis’ famous character-
ization of the modern world, “a field
hospital after battle”? Is that what
the Republican party wants to lead
with? Why isn’t the priority unleash-
ing, getting past limits, pushing to-
ward dynamism and expansion?
For health-care reform
to succeed, it requires
buy-in and compromise
from both parties.
All these old arguments—we have
to have them now? Why? Because
it’s important for a party to prove it
doesn’t know what time it is?
How about a little prudence and
patience? The priorities should be
jobs, growth, social cohesion and an
atmosphere, in Washington, of con-
structiveness. We don’t need any
new culture wars—we’ve got enough,
thanks! Is the worst thing that could
happen in the world right now that a
kid from New Jersey can come into
Manhattan and see an off-Broadway
show seeded with a $30,000 grant
from the National Endowment for
the Arts? No, that’s not the worst
thing that could happen!
The worst that could happen is
Would You Rather See Trump’s Tax Return or Have Saturday Off?
By Amity Shlaes
A
mericans tend to be interested
in presidential tax returns
partly because presidents tend
to be wealthy. But our tradition of
tax privacy shields the returns of
wealthy Americans from prying eyes.
That wasn’t always the case. In
1924 Congress passed a tax law that
included what was known as a “Peep-
ing Tom” provision. It required that
the names of all taxpayers, and the
amount of tax they paid, be made
public. Unbelievably, the information
was posted on the walls at regional
tax offices.
The Peeping Tom provision at first
grabbed more attention than the rest
of the 1924 law. But other parts of
the legislation—income-tax rate cuts,
specifically—ultimately proved more
consequential. That has relevance for
President Trump’s tax policy.
The Peeping Tom story starts in
1922, when the top income-tax rate
was 58% and income taxes were lev-
ied only on the wealthy. Although
lower than the previous 73% rate, it
was still not generating the kind of
revenue lawmakers expected. Many
of the wealthiest Americans took to
dumping money into tax-exempt mu-
nicipal bonds, a strategy to which the
progressive wing of the Republican
Party did not object.
The progressives believed the so-
lution to the revenue problem was to
raise rates again, or shame the
wealthy into paying more tax. The
loudest voice among them belonged
to Michigan Sen. James Couzens, a
millionaire who had made his money
at Ford Motor Co.
Treasury Secretary Andrew Mel-
lon, even wealthier than Couzens,
had a different plan for increasing
revenues. Mellon reasoned that the
government was like a railway owner
and should charge only “what the
traffic will bear.” Lower rates, he
thought, would bring more business
activity, and therefore more revenue.
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that Congress is so exhausted as an
institution, everyone’s ideologies so
played out, that they’re all just play-
ing a part, going through the mo-
tions, mindlessly replicating past bat-
tles in hope of some new reward.
Really, this week, that’s how it
looks to me.
I am among those who think it
absurd that Republicans on Capitol
Hill decided to throw their initial at-
tention on a hopelessly complex and
convoluted health-care bill, and for
procedural reasons so obscure they
sound like Stockholm syndrome: “We
must pay for the cuts or we blow up
ASSOCIATED PRESS
in reconciliation.” How can you ex-
pect people to follow you when they
can’t even understand the marching
orders, or why they should take the
hill? And focusing on the replace-
ment only highlighted party fissures.
The party leadership appears to
have lost control of events. They
view politics as the art of the possi-
ble, which it is, but they have a
highly constricted sense of the pos-
sibilities. They put me in mind of the
observation that a great leader has
more in common with an artist than
an economist. Economists drill deep
in narrow fields, but the artist’s view
is more expansive; he’s more able to
grasp the big picture, and see how it
is changing. The GOP leadership
needs a greater artistic sense. Maybe
they can put in for a grant from the
NEA before it’s too late.
The leadership’s foes on the right
comport themselves like the original
uncompromised men. They are, to
their credit, almost alone in their
willingness to declare their philo-
sophical predicates and resultant
policy commitments. But they are
supporting players in the drama,
their numbers are not growing, and
there’s something exhausted about
them, too.
There is a third group emerging
that doesn’t have a name. They see
themselves not as philosophers or
ideologues but as people who live in
reality. Some are tough-eyed: Ameri-
cans will never give up what they’ve
Couzens publicly trashed Mellon’s
argument. “You have produced no ev-
idence that lowering the rate of sur-
tax to a minimum of 25 percent will
increase the income from the surtax,”
Couzens wrote Mellon. There was no
evidence, he said elsewhere, that re-
ducing surtaxes on the rich “would be
good for the country as a whole.”
The ordinarily sage Mellon made
the error of hitting back personally.
“It is reported in the newspapers that
all your capital is now in tax-exempt
securities and I have not seen any de-
nial from you,” he wrote to Couzens.
“This means, if it means anything,
that you pay no income tax.”
Couzens, no dummy, saw his
opening. If Mellon brought up his
tax returns, Couzens could bring up
Mellon’s. “So long as you have en-
tered into the record of my securi-
ties,” he wrote Mellon, “will you
please tell us what your securities
are?” Couzens demanded, and got, a
Russia’s Yahoo Hack Shows Risk of Spies Run Amok
To save Rachel
Maddow embar-
rassment, it should
be noted that Don-
ald Trump was not
president when the
Russia-sponsored
BUSINESS
hack of Yahoo oc-
WORLD
curred in 2014.
By Holman W.
He was president
Jenkins, Jr.
this week when the
Justice Department
indicted two Russian officials and two
Russia-backed freelance hackers for
these cybercrimes.
Ms. Maddow, an MSNBC host,
would seem to be at high risk of get-
ting this information backward in
her urgency to deliver a scoop on
the evils of Mr. Trump.
What this week’s Yahoo indict-
ments really show is the squalor of a
state like Russia’s, where the person-
Robert Thomson
Chief Executive Officer, News Corp
William Lewis
Chief Executive Officer and Publisher
DOW JONES MANAGEMENT:
Mark Musgrave, Chief People Officer;
Edward Roussel, Innovation & Communications;
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Kristin Heitmann, Transformation;
Nancy McNeill, Advertising & Corporate Sales;
Jonathan Wright, International
DJ Media Group:
Almar Latour, Publisher;
Kenneth Breen, Commercial
Professional Information Business:
Christopher Lloyd, Head;
Ingrid Verschuren, Deputy Head
OPINION
Donald Trump and House Minority Leader Nancy Pelosi on Inauguration Day.
come to see as an entitlement. Some
look at the country around them and
see crises—in employment, drug
abuse, family formation, education.
This is no time to make things
harder for people, even for a while.
Some are merely practical: Obama-
Care helped some of their constitu-
ents and jerked others around with
lost coverage and jacked-up deduct-
ibles. A fix can’t just spread the mis-
ery around in a new way.
So far they’re called moderates. I
asked one of these, an officeholder
who cares about mental-health
needs and the opioid epidemic, if he
was experiencing himself as a popu-
list. He said he has in the past been
called a “positive populist.” which he
liked: It suggested a realistic yet
generous assessment of the actual
lives of his constituents, joined with
“a can-do spirit that we can help
each other individually and with the
government.” But “negative popu-
lism,” carries the connotation of
darkness and resentment: “Someone
took something from me.” So he
sticks with the label Republican.
President Trump should have
been the leader of this group but
threw his lot with the congressional
special Senate committee to investi-
gate the Bureau of Internal Revenue,
thereby gaining access to Mellon’s
tax history.
Mellon then made another rash
decision. He authorized his tax offi-
cers to scrutinize Couzens’s returns.
Make the economy roar
like it did in the 1920s
and the issue will go away.
The move backfired when his investi-
gators discovered that the senator
had overpaid, not underpaid.
The 1924 tax deal reflected the
Mellon-Couzens feud. The old-time
Republicans got a rate cut, though
not as dramatic as the one they
sought: The new top rate was 46%.
The progressives got the Peeping
Tom provision—a chance to learn
nel and priorities of the intelligence
services are in charge.
Secret information is the obses-
sion of such states, and of the people
who staff them. They crave hidden
data with which to blackmail, under-
mine or discredit their enemies. Who
are their enemies? Truth tellers, for-
eign and domestic, of any kind, in-
cluding those similarly selfishly mo-
tivated. Policy debate barely exists
in Russia. For such states, delivering
adequate results for their peoples, or
even for significant internal constit-
uencies, is not the priority. Using se-
cret information—kompromat—to
wage war on anybody who threatens
their power is the main agenda.
That’s the real story of this week’s
Justice Department charges in the
Yahoo attack that violated 500 mil-
lion private accounts.
Two of the indictees not only
work for the FSB, the Russian suc-
cessor agency to the Soviet-era KGB,
they work for the division that is
supposed to cooperate with Amer-
ica’s FBI on cybercrime investiga-
tions. What’s more, one of these offi-
cials, the former hacker and now
Russian major Dmitry Dokuchaev,
was himself arrested recently on
what the Moscow press calls “trea-
son” charges, allegedly for passing
information to the CIA. A plausible
version, told in the Russian media
and by Western cybersecurity ex-
perts, is that Maj. Dokuchaev was
among many criminals working in-
side Russia’s intelligence bureau-
cracy. For personal profit, he sold in-
formation to intermediaries that
found its way to the CIA.
Also apparently implicated in the
case are various rivalries inside the
Kremlin intelligence establishment
as well as inside the Russian cyber-
crime underworld with which it
overlaps. Maj. Dokuchaev has been
Saturday/Sunday, March 18 - 19, 2017 | A15
leadership. That may be changing.
Wednesday night he told Tucker
Carlson on Fox News that the bill is
“very preliminary” and can be “ne-
gotiated” down the road. “We will
take care of our people or I’m not
signing it, OK?” Which is interesting
because it contradicted Speaker Paul
Ryan, who said March 6: “It’s not
that this is open for negotiation.”
The president should confound
expectations, pivot, and turn to the
Democrats for a bipartisan deal.
Here is the tradition. If you are
Franklin Roosevelt in 1935 and you
want to create Social Security—an
act that affects Americans very per-
sonally—you get the other party in
on it. You need them co-owning it,
invested in it. You want the Ameri-
can people saying, “Congress did
this,” not “the Democrats did this,”
because if they say the latter the re-
form will always divide. FDR got 81
Republicans to vote for it in the
House, and 284 Democrats. The
same with Medicare in 1965: Lyndon
Johnson did all he could to get the
GOP on board. A majority of House
Republicans supported it.
Barack Obama, full of himself af-
ter his 2008 victory and surrounded
how much tax people like Andrew
Mellon paid.
For months the papers entertained
readers with reports of various
Americans’ tax bills and guesses at
the level of income from which the
tax was derived. Film star Charlie
Chaplin had paid $345 in tax, but
how much he’d made was a mystery.
The wealthy J. Ogden Armour of Ar-
mour & Co. in Chicago did not appear
to pay any taxes at all. Why not?
Maybe that was a story. But many
Americans found themselves a bit
embarrassed at this airing of tax
laundry. “This is the annual snooping
festival under government auspices,”
concluded the New York World.
The public was less interested in
the tax strategies of the rich than
they might have been for other rea-
sons. The economy expanded dra-
matically during the mid-1920s. Pro-
ductivity was so strong that big
companies let employees work five
linked to Shaltai-Boltai, a hacker
group that exploits stolen data to
embarrass and blackmail Russian
politicians and business officials.
Only one of the four defendants
named by the Justice Department is
likely to see a U.S. courtroom: Karim
Baratov, a Canadian resident alleg-
edly hired by the FSB to crack open,
When intelligence agencies
use their powers for
domestic fights and self-
advancement, look out.
using the stolen data, a handful of
specific Google and Yahoo accounts
of persons of interest to Russia’s FSB.
Mr. Baratov, 22, has been easily iden-
tified by private cybersleuths
through social media postings show-
ing off his fancy cars and through his
ownership of websites offering email-
cracking services. His tradecraft,
ahem, is apparently low-grade.
Intelligence agencies are neces-
sary and useful national assets, but
we should not kid ourselves about
the tendencies on display here. Espe-
cially when intelligence professionals
involve themselves in domestic po-
litical fights, or use their powers to
pursue narrow bureaucratic or per-
sonal interests, any similarity to
James Bond flies out the window.
In Russia’s case, we’re talking
about slobs and sociopaths who have
nothing to fear from the law because
they are the law, and thus don’t nec-
essarily invest heavily in finesse, dis-
cretion or good judgment. For the
Russian people, turning their state
over to siloviki, or politicians de-
scended from the intelligence ser-
vices, has not noticeably improved
by triumphalist House Democrats,
ignored the teaching of history and
passed ObamaCare without a single
Republican vote. The Democrats
would get all the credit. In time they
got all the blame. Republicans had
no incentive to bail them out.
But the health-care system, as
Ohio Gov. John Kasich has observed,
is crucial. The Democrats must be in
on the process to achieve “true and
lasting reform.”
No doubt Democrats would clean
up the program along more liberal
lines than Republicans, which would
please their progressive base. But it
would also please many in Mr.
Trump’s base.
If it worked, Mr. Trump would
crow he’s made the first big biparti-
san deal in a generation—it’s a new
day. It might help on future biparti-
san efforts, such as infrastructure
spending. And he can make it up to
Republicans with conservative regu-
latory and tax reform.
It would be no scandal if the pres-
ident threw in with Democrats and
moderate Republicans at the expense
of Republican leadership. He’s al-
ways been philosophically unreliable,
his commitments ever-changeable.
Everyone knows this. The American
people hired him knowing it.
His supporters would forgive a
failed attempt to replace ObamaCare
along Republican lines. But they
wouldn’t forgive a bad bill that suc-
ceeds.
In a telephone interview Mr. Ka-
sich said, “Ronald Reagan made
deals with Tip O’Neill on Social Se-
curity.” All the big reforms of the
past—of welfare, of the Pentagon—
were bipartisan efforts. Progress will
come when both parties end “the
civil war” over health care. Biparti-
sanship must come back if things are
to work.
As he spoke I thought: a biparti-
san deal on health care would also
be a boost to the national morale. It
wouldn’t be about constricting and
cutting. It would feel expansive, con-
structive, even hopeful.
days a week. If the choice was be-
tween relishing a plutocrat’s embar-
rassment and Saturday off, most
workers took the Saturday.
Mellon’s tax touch became so pop-
ular that there was much support
when in 1926 he and President Calvin
Coolidge slashed the top income-tax
rate to 25%. The same 1926 legisla-
tion repealed the Peeping Tom rule—
with surprisingly little notice.
Tax cuts did indeed fill the Trea-
sury’s coffers, as Mellon supposed
they would. And after the rate cuts
the rich bore a greater share of the
tax burden. The Peeping Tom story
of the 1920s suggests what President
Trump might do today: prioritize tax
cuts. Presiding over an expanding,
productive economy, he may find
that stories about his tax returns no
longer hold the headlines.
Miss Shlaes is the author of the bi-
ography “Coolidge” (Harper, 2013).
their national security. On the con-
trary, their neighbors clamor to be
part of NATO. Their grafting leaders
have led them into four wars, in
Chechnya, Georgia, Ukraine and
Syria. Relations with key trade part-
ners like France and Germany have
been consigned to the dumpster.
Their economy is weighed down by
looting and corruption. Even as
fracking devastates the Kremlin’s
conventional oil and gas revenues,
Russia is cut off by sanctions from
Western technology to develop its
own fracking potential.
Mr. Trump untweeted himself
back into the world of the credible
this week with his revision of his
phone-tapping allegations. When he
tweeted that President Obama had
tapped his phone lines, he didn’t re-
ally mean President Obama and he
didn’t mean phone lines—he meant
U.S. spy agencies, in their broad sur-
veillance efforts, taking undue inter-
est in Trump associates.
We already know as much from
their interception and leak of infor-
mation about a phone call between
former Trump adviser Mike Flynn
and the Russian ambassador. We
know from the New York Times that
the outgoing Obama administration
hoped to aid such leakage by making
sure any damaging information was
circulated in unusually wide fashion
among its loyalists in government
before leaving office.
“There are no free passes for for-
eign state-sponsored criminal behav-
ior,” Acting Assistant Attorney Gen-
eral Mary B. McCord said in
unveiling this week’s Yahoo-related
indictments.
It will inevitably be necessary
from time to time to test whether
that proposition also applies to do-
mestic state-sponsored criminal be-
havior.
A16 | Saturday/Sunday, March 18 - 19, 2017 * *** THE WALL STREET JOURNAL.

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MEDIA STUDIO SQUEEZE B4
© 2017 Dow Jones & Company. All Rights Reserved.
DJIA 20914.62 g 19.93 0.1% NASDAQ 5901.00 À 0.004%
Goldman Chief Took 4% Pay Cut in 2016
Decline in cash bonus
put Blankfein’s total
behind that of Morgan
Stanley CEO Gorman
BY LIZ HOFFMAN
Goldman Sachs Group
Inc.’s board cut Chief Execu-
tive Lloyd Blankfein’s pay by
4% and tied more of it to how
the bank does for its investors,
a sign that even the powerful
and profitable Wall Street firm
isn’t immune to investor pres-
sure.
Mr. Blankfein received $22
million in total pay for 2016,
according to a regulatory fil-
ing Friday. His cash bonus fell
Funds Offer
New Way
To Invest
In Property
Wall Street is offering in-
dividuals a new way to in-
vest in commercial real es-
tate as protection from
swings in the stock market.
But the approach also carries
its own risks.
These funds largely invest
directly in property, rather
than in real-
estate in-
vestment
trusts, or
REITs,
which are
THE pools of
INTELLIGENT properties
INVESTOR that trade
JASON ZWEIG like stocks.
Their key
selling point
is high income derived from
rental payments. They have
also been less prone than
REITs to big price moves.
“A lot of investors will
trade in and out of REITs
based on what’s happening
elsewhere in the markets
rather than what’s going on
in real estate,” says Gerry
Casimir, portfolio manager
of the $24.5 billion TIAA
Real Estate Account, avail-
able to retirement-plan par-
ticipants. In a fund that in-
vests directly in commercial
property, however, you get
“returns that reflect the per-
formance of investment real
estate, rather than the va-
garies of the stock market.”
Most of these portfolios
are known as interval funds,
a quirky structure offered
through financial advisers
that allows investors to buy
daily but sell only once a
quarter. Fees are stiff, gener-
ally running at least 2.5% an-
nually.
“Individuals aren’t
Yale…they need liquidity,”
says Ramin Kamfar, chief ex-
Please see INVEST page B7
Glencore Masters the Zinc Market and Revival Ensues
BY SCOTT PATTERSON
AND TIMOTHY PUKO
No one in the world mines
more zinc than Glencore PLC.
No one in the world trades
more of this essential metal
for making steel. And no one
has gotten richer, taking mines
out of production and with-
holding refined zinc from the
market to drive prices higher.
Chief Executive Ivan Gla-
senberg says his company is
reaping the rewards of a bold
and risky strategy that helped
reverse the mining-and-trad-
ing behemoth’s downward spi-
ral and turn it into a profit-
making machine.
Zinc prices jumped 7% on
the day in October 2015 when
the Switzerland-based com-
pany said it was shutting
MARKETS DIGEST B6 | WEEKEND INVESTOR B7 | HEARD ON THE STREET B10
* * * *
STOXX 600 378.32 À 0.2%
to $4 million from $6.3 million
last year, while his salary re-
mained the same at $2 million.
The Goldman CEO, who
took the role more than a de-
cade ago, joins Citigroup Inc.’s
Michael Corbat as the only
CEO of a big Wall Street firm
to get a pay cut for 2016. Bank
of America Corp.’s Brian Moy-
nihan, J.P. Morgan Chase &
Co.’s James Dimon and Mor-
gan Stanley’s James Gorman
all got raises. Mr. Gorman,
whose firm is a fierce rival of
Goldman, outearned Mr.
Blankfein for the first time
since he became Morgan Stan-
ley CEO in 2010.
Goldman also tied more of
Mr. Blankfein’s pay to the
bank’s performance. All $16
David Miller, a Princeton University professor by day, reviews projects or ideas in which top Citigroup executives have concerns.
The Soul of Citigroup
Former banker turned ethicist consults on issues of business and morality
BY CHRISTINA REXRODE
Can a big bank have a
conscience? Citigroup Inc.
hired one.
David Miller is an on-call
ethicist the bank consults on
weighty questions of right
and wrong,
WEEKEND supplementing
PROFILE its armies of
lawyers and
compliance of-
ficers. A Princeton University
professor by day, Dr. Miller
has worked with Citigroup
intermittently for the past
three years to tackle abstract
issues about banking and
morality.
Those are squishy topics
for Wall Street, where ag-
gression is a virtue and mak-
ing money a necessity. Dr.
down production amounting
to 4% of global production of
zinc. Prices for the metal have
climbed 70% since as demand
has outpaced supply, outper-
forming copper (up 15%) and
aluminum (up 20%) during a
broad-based global commodi-
ties rally.
Mr. Glasenberg is outspo-
ken about Glencore’s approach
to managing supply and thus
market prices, something that
is typically verboten for min-
ing executives, who are wary
of complaints about market
power.
“When we cut back our zinc
production, we looked at the
benefit it had on the rest of
our zinc production,” Mr. Gla-
senberg said on an earnings
call last month. The result for
prices: “A very positive ef-
THE WALL STREET JOURNAL.
10-YR. TREAS. À 7/32 , yield 2.500%
million of his stock-based bo-
nus is in the form of units that
are awarded based on Gold-
man’s returns over the next
few years. In 2014 and 2015,
only half of Mr. Blankfein’s bo-
nus hinged on future returns
in this way. Before that, none
did, though any stock-based
bonus gets more valuable if
the share price rises.
The changes come after just
66% of shareholders approved
the bank’s pay plan last year,
an unusual rebuke. Goldman’s
directors “viewed this out-
come as an indication that fur-
ther engagement was needed”
and spent the fall getting feed-
back from investors.
Shareholders, who generally
like to see executives’ fortunes
Miller, who spent years in
banking before going to sem-
inary, acknowledges the di-
chotomy—and the ribbing
from friends and colleagues
who thought he had sold his
soul when he agreed to work
with Citigroup.
“You need banking, just
like you need pharmaceuti-
cals,” says the 60-year-old
New Jersey native. “And
pharma can save lives, or it
can kill and cause addic-
tions.”
If the topic is philosophi-
cal, the stakes aren’t. As Citi-
group President James Forese
pointed out in a 2015 industry
conference, the bank made $1
million in revenue from dubi-
ous foreign-exchange trading
and paid roughly $2.5 billion
in penalties.
fect,” he said.
While the prices of zinc and
other commodities have been
powered by Chinese demand,
analysts said zinc’s greater
buoyancy was a demonstration
70%
Zinc’s price rise since 2015 when
Glencore said it would trim output
of one company’s market
power that is rare in the com-
modity market. Other miners
such as Rio Tinto PLC and BHP
Billiton Ltd., which have large
positions in iron ore, have de-
cided against pulling back pro-
OIL $48.78 À $0.03
tied to their own, also had
pushed in the years following
the financial crisis for banks
to de-emphasize cash bonuses
in favor of awards paid in
company shares.
In another nod to share-
holders, Goldman based its bo-
nuses for 2016 on returns that
will be judged relative to its
banking peers, not on an abso-
lute basis. That may actually
bring higher payouts in the
short term; Goldman has
posted better returns on eq-
uity than most rivals in recent
years, but has repeatedly
fallen short of the 11% abso-
lute figure needed for Mr.
Blankfein and other top execu-
tives to receive their maxi-
mum bonus.
Dr. Miller’s role at Citi-
group is strategic. He
doesn’t walk the trading
floor, hold office hours at
call centers or even have an
office. Instead, he reviews
projects, ideas and locations
where top executives have
concerns.
The bank describes his
role as providing “advice and
input to senior manage-
ment.” His conversations
with top executives like
Chief Executive Michael Cor-
bat filter through the organi-
zation.
At a meeting with manag-
ing directors, for example,
Mr. Corbat raised an idea
that came from Dr. Miller. In
an uncertain situation, Mr.
Corbat said, ask the four
M’s: What would your
duction to lift prices.
On the earnings call, Mr.
Glasenberg said zinc prices
had fallen so low in 2015 that
it made more sense to keep it
in the ground for the long run.
He credited zinc’s price rise
with Chinese demand and
“voluntary cutbacks” of supply
like Glencore’s, “one of the
leaders in that area.”
Analysts agreed. The price
rally has “been driven by Glen-
core’s decision,” said Vivienne
Lloyd, a metals analyst at in-
vestment bank Macquarie
Group Ltd.
Glencore has said it can pull
it off because it combines one
of the world’s largest mining
divisions with a savvy com-
modity-trading house.
Glencore is the world’s larg-
est zinc miner, accounting for
MARKETS BONDS & STOCKS BOOSTED B10
Saturday/Sunday, March 18 - 19, 2017 | B1
GOLD $1,229.80 À $3.30
A Payday Rivalry
Annual pay award for heads of two largest investment banks
Goldman CEO Lloyd Blankfein
$25 million
20
15
10
5
0
2010 ’11 ’12
Source: the companies
MICHAEL BUCHER/THE WALL STREET JOURNAL
mother, your mentor, the
media and—if you’re in-
clined—your maker think?
Dr. Miller also tries to get
the bank to look beyond pro-
grams such as whistleblower
hotlines and compliance
training to human impulses.
The problem, he adds, isn’t
the bad apples. Rather, it is
how easy it is for good em-
ployees to justify bad deci-
sions when they face gray-
zone questions.
Citigroup, with a reputa-
tion for ethical problems be-
fore and after the financial
crisis, brought on Dr. Miller
at the behest of Mr. Corbat.
The CEO was surprised when
employee surveys found
some workers weren’t com-
fortable escalating concerns
Please see SOUL page B2
8% of global mined output, ac-
cording to Macquarie, ahead of
Teck Resources Ltd. (6%) and
Vedanta Resources PLC (4%).
Glencore also controls
about half the world’s trading
of zinc metal and the raw ma-
terial that makes it, excluding
domestic Chinese production,
according to Wood Mackenzie
and other analysts, roughly
the same level it last publicly
disclosed in 2011.
The company began mining
zinc in the 1980s, when the
firm was run by the late finan-
cier Marc Rich. Its acquisition
of miner Xstrata in 2013 ex-
panded its production assets
in a heavily traded metal that
is expected to become more
widely used in developing
economies such as India and
Please see ZINC page B2
CHIP SOMODEVILLA/GETTY IMAGES
EURO $1.0738 YEN 112.69
Morgan Stanley CEO James Gorman
’13 ’14 ’15 ’16
THE WALL STREET JOURNAL.
Google
Promises
Brands
More Say
On Ads
BY JACK NICAS
Google on Friday said it
plans to give advertisers more
control over where their ads
appear online after major cli-
ents in the U.K. withdrew their
spots because some ads ran
before extremist videos on its
YouTube site.
Tensions between Google,
the world’s biggest advertising
platform, and its advertisers
have increased over the past
several days following a report
showing ads by the British
government and several com-
panies—including French cos-
metics giant L’Oréal SA and
British grocery chain J Sains-
bury PLC—appeared before
videos supporting terrorist
groups.
In response, many advertis-
ers, including the British gov-
ernment, pulled their spending
from YouTube and the Google
Display Network, a network of
more than 2 million websites
that partner with Google to
serve ads.
The British unit of France’s
Havas SA, the world’s sixth-
largest ad-agency holding
company, said it was suspend-
ing all advertising on YouTube
and the Google Display Net-
work for its clients in the U.K.,
including Domino’s Pizza Inc.
and British mobile operator
O2, because it couldn’t be as-
sured that the “environment is
safe, regulated to the degree
necessary and additive to their
brands’ objectives.”
Havas SA said its British
unit’s policy was “a temporary
move made by the local team”
and that Havas didn’t change
its use of Google globally.
Google, a unit of Alphabet
Inc., said in a blog post that it
has “heard from our advertis-
ers and agencies loud and
clear that we can provide sim-
pler, more robust ways to stop
their ads from showing
against controversial content.”
The company said it has
started reviewing its policies
and “will be making changes
in the coming weeks to give
brands more control over
where their ads appear across
YouTube and the Google Dis-
play Network.”
The advertising industry is
starting to demand more
transparency and say over
placement of their ads after
several reports showing big
brands being promoted along-
side hateful content and fabri-
Please see GOOGLE page B2
INDEX Insider-Trading Spotlight.... B4
Bond Tables................................... B7 Markets Digest............................ B6
Cash Prices..................................... B8 Money Rates................................. B4
Dividend News............................ B8 Mutual Funds............................... B4
Exchange-Traded Funds...... B4 New Highs & Lows................... B8
Futures.............................................. B7 Stock Listings............................... B5
Heard on the Street.............. B10 Weekend Investor..................... B7
B2 | Saturday/Sunday, March 18 - 19, 2017
INDEX TO BUSINESSES
These indexes cite notable references to most parent companies and businesspeople
in today’s edition. Articles on regional page inserts aren’t cited in these indexes.
A
Aer Lingus.............A1,A8
AirAsia...................A1,A8
Air Canada.............A1,A8
Air France-KLM.....A1,A8
Akzo Nobel..................B3
American Airlines Group
..........................A1,A8,B3
Amgen.......................B10
AmTrust Financial
Services.....................B2
Apple...........................B1
B Lions Gate
Bank of America.........B1
BHP Billiton................B1
BRF..............................A8
C Marvel EntertainmentB4
Chainalysis..................B9
Chipotle Mexican GrillB3
Citigroup......................B1
Comcast.......................B4
D UBS Group...................B9
Delta Air Lines A1,A8,B3
Deutsche Lufthansa
............................... A1,A8
DreamWorks Animation
.....................................B4
E P
Elliott Management ... B3
Eurowings..............A1,A8
G Volkswagen.................B3
General Electric .......... B4
Glencore ...................... B1
Goldman Sachs Group B1
Green Street Advisors
.....................................B7
Griffin Capital.............B7
INDEX TO PEOPLE
A Gorman, James...........B1
Ackman, William ........ B3
Anderson, Caleb..........D6
B H
Bakish, Bob.................B4
Baradaran, Natasha....D7
Bikoff, Sasha .............. D6
Blankfein, Lloyd..........B1
Bogle, John.................B2
C K
Carlino, Mario.............D4
Carrier, Jesse..............D6
Casimir, Gerry.............B1
Cook, Tim....................B1
Corbat, Michael...........B1
D Thummel, Rob.............B9
Dimon, James.............B1
Dorin, Ian....................D4
E McGukin, Drew...........D6
Elhage, Samih.............B3
F-G
Feinberg, Ken..............B2
Forese, James.............B1
Gianopulos, Jim..........B4
Glasenberg, Ivan.........B1
SOUL
Continued from the prior page
about possible wrongdoing.
Mr. Corbat was also moti-
vated by the banking indus-
try’s image problem. “If you
look today at what the poll
numbers say, what the gen-
eral population says, there is
distrust of banks,” Mr. Cor-
bat said in an interview.
Despite that, Dr. Miller be-
lieves banks can change. “To
make the assumption that an
organization cannot be more
ethical than it was is to give
up before you start,” said the
professor, who declined to
say how much the bank pays
him. “It is not naive. It is a
realistic and necessary goal.”
Citi’s global reach
posed an unusual
challenge in dealing
with local customs.
At Princeton, where Dr.
Miller runs the university’s
Faith & Work Initiative, he
works from a cramped room
piled with books by John
Bogle and John Calvin, Mar-
tin Luther and Martin Luther
King Jr. Posters advertise
Q&As he conducted on the
intersection of faith and work
with Mr. Bogle, the founder
of Vanguard Group, and for-
mer pay czar Ken Feinberg.
That wasn’t always his ca-
reer trajectory. As an under-
graduate at Bucknell Univer-
sity, he studied business and
helped run fraternity parties
and a rock-concert commit-
tee. His career featured
stints at International Busi-
ness Machines Corp., State
Street Corp. and what was
then Midland Securities in
London.
Dr. Miller’s poise im-
pressed colleagues at Mid-
land, which in the early
1990s was struggling. “You
walk into a room where you
would think, ‘Oh God, I can’t
deal with this guy, he’s im-
maculate, he’s tall, he looks
like a movie star and had
this 200-watt smile,’ ” said
Richard Greensted, who
worked with him at Midland.
“But he was very, very good
at putting people at ease.”
Dr. Miller eventually fired
* ***** THE WALL STREET JOURNAL.
BUSINESS & FINANCE
I
International Business
Machines ............. B1,B2
International
Consolidated Airlines
Ryanair Holdings........A1
S
Samsung Electronics..A6
Singapore Airlines A1,A8
AmTrust Shares Slide 19%
Group ........................ A1
Skadden, Arps, Slate,
Meagher & Flom.......B2
Insurer will restate were “immaterial” errors last surer is controlled by the Kar- AmTrust had overstated prof-
month, saying it would need funkel family, which includes its by setting aside inadequate
J Snap...........................B10 three years of earnings more time to file its 10k an- Chief Executive Barry D. Zys- reserves for underwriting
JBS..............................A8 Sony.............................B4
Johnson & Johnson....B1 Sony Pictures and delay filing annual nual report with the Securities kind. Over the past few years, losses, as filings with regula-
Entertainment..........B4 and Exchange Commission. AmTrust has moved from a tors showed “adverse develop-
JPMorgan Chase.........B1
Southern ................... B10 report following errors But AmTrust now says it niche insurance firm into one ment” in reserves for several
L Southwest Airlines can’t meet the extended dead- of the country’s largest work- years. Barron’s is owned by
............................... A1,B3 BY GEOFFREY ROGOW line of this week and that its ers’ compensation insurers, News Corp, publisher of The
Entertainment..........B4 State Street................B2
AND MICHAEL RAPOPORT financial results going back to according to SNL Financial LC. Wall Street Journal.
Lucasfilm.....................B4 Swatch Group ........... B10
2014 shouldn’t be relied upon. A surge in gross written in- Last month, when AmTrust
M T Shares of AmTrust Finan- AmTrust said it would file its surance premiums and net op- first disclosed accounting er-
Teck Resources...........B1 cial Services Inc. fell 19% Fri- report “as soon as practicable.” erating earnings has helped fuel rors, it also took a charge of
Medtronic....................A3 Tortoise Capital
day to a 52-week low after the In a statement Friday, a surging stock price. AmTrust $65 million against its fourth-
Metro-Goldwyn-Mayer Advisors....................B9
.....................................B4 Toshiba......................B10
company said it would re- AmTrust said it was “disap- is up 60% over the past five quarter 2016 earnings because
state its last three years’ pointed” to have a further de- years and has a market capital- of adverse development in re-
Morgan Stanley..........B1 U
MuleSoft...................B10 worth of earnings and further lay in filing its annual report, ization of over $3 billion. serves on some product lines.
delay filing its annual report. but the company reiterated its On Friday, AmTrust fell $4.03 AmTrust said Friday it isn’t
N United Continental
Holdings.........A1,A8,B3 The New York property and previous assertions that it re- to close at $17.58. The shares making any further revisions to
Nintendo......................B3
Nokia...........................B3 US Airways.................B3 casualty insurance firm said mains “financially strong” and hit a 52-week low of $17.10 dur- reserves and that its insurance
Norwegian Air Shuttle V Thursday there were errors in is “making the necessary im- ing the day and are now down companies’ filings with regula-
.....................................A1 Vanguard Group..........B2 the timing of when it had re- provements in our finance and 36% so far this year. tors include reserve disclosure
Vedanta Resources.....B1 corded some revenue and bo- accounting resources.” Articles published by Bar- and demonstrate that they
Paramount Pictures....B4 Verizon Communications nuses. The firm first said there Founded in 1998, the in- ron’s have questioned whether have adequate reserves.
Pershing Square Capital .....................................B3
Management.............B3 Viacom.........................B4
Pixar Animation Studios
W
.....................................B4
Porsche Automobil Walt Disney................B4
Holding......................B3 Y
R Yahoo...........................B3
Rio Tinto ..................... B1 Yext ........................... B10
P
Gorsky, Alex................B1 Parry, Matt..................B9
Greensted, Richard.....B2 Piech, Ferdinand ......... B3
R
Hayek, Nayla.............B10 Rometty, Ginni............B1
Hayek, Nick...............B10 Rothman, Tom ............ B4
Hurley, Patty...............B2 S
J Sanderse, Menno........B2
MICHAEL BUCHER/THE WALL STREET JOURNAL
Jayne, Thomas............D6 Shane, David...............D4
Shields, Kevin.............B7
Kamfar, Ramin............B1 Shirinian, Natalie ....... D6
Koch, Bill.....................D4 Smyth, Matthew........D6
Snowden, John ........... B7
L
Stringer, Tom..............D6
Leifer, Bennett ........... D7
T
Lloyd, Vivienne...........B1
M Tucker, Suzanne..........D6
Mandel, Rob................D4
W
Mayer, Marissa...........B3
Waldman, Adam.........D4
Walsh, Willie..............A8
Miller, David................B1 A worker scrapes off excess zinc from steel parts at a plant in New Jersey. At about $2,800 a ton, zinc prices are historically high.
Wong, Jarvis...............D7
Morris, Jennifer Jean.D6
ZINC
Moynihan, Brian ......... B1 X
Glencore’s zinc strategy has it—to send supply and demand But Wood Mackenzie esti-
N-O Xu, Lin.........................B1 risks. As prices rise and pro- into a surplus or deficit. mates that about 200,000 tons
Nussbaumer, MichelleD6 Y duction becomes more profit- Mr. Glasenberg said in Feb- of zinc sit unsold there, show-
Overstreet, Dennis.....D4 Yoshida, Kenichiro......B4 able, other miners are more ruary that Glencore calculated ing that even when zinc is
Continued from the prior page likely to increase output or re- that reducing its zinc produc- produced, Glencore doesn’t
China. Zinc is a key ingredient start idled operations, pump- tion to one million annual tons have to sell it. A Glencore
Mr. Greensted, who wasn’t a
good fit for the bank, ac-
cording to Mr. Greensted and
confirmed by Dr. Miller. The
in U.S. pennies and is used as
an antirust coating on many
automobiles.
At about $2,800 a ton, zinc
ing more supply into the mar-
ket, said Morgan Stanley
analyst Menno Sanderse.
If demand in China cools un-
from 1.5 million annual tons
could move the price “a cer-
tain amount for you to get the
benefit.”
spokesman declined to com-
ment on the estimate.
Glencore also enjoys low
production costs at its zinc
two remain friends and are prices are historically high, expectedly, prices could plunge. Analysts at Macquarie esti- mines, which can pump out
still in touch. though still about 35% below Mr. Glasenberg has said he ex- mate that the zinc market is in the metal at essentially zero
While in London, Dr. their peak in late 2006. pects demand in China to re- a short supply of about expense in part due to added
Miller’s wife, Karen, left her The rising costs can trans- main strong, but he also said in 500,000 tons a year, equal to revenue it gets from gold by-
job as an attorney at Skad- late into higher auto prices February: “We don’t under- the amount Glencore cut in products.
den, Arps, Slate, Meagher & and make steel used for con- stand China, exactly what may 2015. The company’s zinc shut-
Flom LLP to teach law and struction more expensive. In or may not happen from one Glencore has ways of offset- downs were announced at
ethics at Notre Dame Law the lightly regulated global day to the next.” ting revenue it might lose about the same time it
School’s London campus. zinc market, there are few Mr. Glasenberg has said from the production cuts. It launched a comeback plan
Soon Dr. Miller felt a similar rules governing a company’s Glencore also tried to lift cop- says its trading arm can make from a disastrous summer in
tugging. market share beyond some per and coal prices with sup- money no matter which direc- 2015, when investors con-
When he penned a letter countries’ antitrust regula- ply cuts, though with less ef- tion commodity markets are cerned about its high debt
to announce he was going to tions for mergers. fect on those larger markets. moving in, making up for sent the firm’s share price
study theology at Princeton, Instead, international com- Zinc traders often compare weaker commodity prices. down to record lows.
he was embarrassed to use modity traders and miners gen- Glencore to the Organization Glencore’s zinc supremacy Glencore returned to profit
the word “calling.” erally resist cutting output for of the Petroleum Exporting is illustrated at its San Juan in 2016, with net earnings of
“I never thought of Dave fear of losing market share to Countries because, like the oil de Nieva plant in northern $1.4 billion thanks in part to
as a scholar,” said Patty Hur- competitors. Miners like BHP cartel in the 1970s and 1980s, Spain on the Bay of Biscay. zinc, which was responsible
ley, a longtime friend. “He and Rio Tinto say they have fo- it controls what is known as The world’s second-largest for 26% of its mining arm’s
was a sales guy, he was a cused on producing the cheap- marginal supply. That means it zinc smelter produces about a earnings before interest, taxes,
people person. And then he est iron ore instead of holding can produce enough of a prod- half million tons of nearly depreciation and amortization,
was learning Greek and He- back output to increase prices. uct—or withhold enough of pure metal a year. according to securities filings.
brew, and he loved it.”
Dr. Miller assumed he
would return to finance, but
ended up pursuing a doctor-
ate in ethics. After the Sept.
GOOGLE with millions of sites in our
network and 400 hours of
video uploaded to YouTube ev-
11 attacks, he spent nine Continued from the prior page ery minute, we recognize that
months working overnight cated news stories, some of we don’t always get it right,”
shifts at Ground Zero as a which garner significant audi- Google said in its post Friday.
volunteer chaplain. ences. “We know we can and must do
During his doctoral studies, The videos that sparked the more.”
Dr. Miller also began advising most recent controversy, re- Advertisers can also black-
senior executives. While he vealed in stories in the Times list certain YouTube channels
has worked with different of London, were made by sup- or sites in the Google network.
RUBEN SPRICH/REUTERS
companies, Citigroup posed porters of terrorist groups, in- Google is planning to ask ad-
unusual challenges including cluding Islamic State and a vi- vertisers and ad agencies what
operations in nearly 100 olent pro-Nazi group, and additional controls they want,
countries where local cus- were broadly condemned. but it declined to comment
toms produce varying stan- Procter & Gamble Co., the further on potential changes.
dards of right and wrong. world’s top advertising Havas UK, which spends
Last month, Citigroup spender, has publicly com- WPP Chief Executive Martin Sorrill said that Google and about $217 million annually on
confirmed that it, along with plained in recent months Facebook must take more responsibility in screening content. digital advertising in the U.K.,
other banks, is being investi- about problems in the digital- said it decided to pull its You-
gated over whether it im- ad industry, including ads be- British Advertisers, a British they are appropriate for ad- Tube spending because Google
properly hired the adult chil- ing placed next to inappropri- ad-industry trade group, called vertising before placing ads on couldn’t guarantee Havas ads
dren of foreign officials in ate content. P&G’s marketing on Google to immediately pull them. But those checks can would only run next to appro-
Asia, where it can be a com- chief, Marc Pritchard, has from its inventory of ad slots miss many videos because of- priate content.
mon practice but can violate called on advertisers to in- any YouTube videos or web- fensive content can be nu- Martin Sorrell, chief execu-
U.S. laws. crease pressure on the effec- sites that “it cannot guarantee anced. tive of the world’s largest ad
The bank has embraced tive digital-ad giants, Google as a safe environment for ad- Google policies prohibit it agency, WPP PLC, said in a
Dr. Miller’s idea of three and Facebook Inc., which to- vertising.” The group also from showing ads on a variety statement that Google and
lenses to apply in ethical de- gether account for roughly pushed Google to study of websites or videos, includ- Facebook must take more re-
cision-making, an approach half of world-wide digital-ad whether it should first review ing those that are porno- sponsibility in screening con-
influenced by Plato and Aris- revenues, according to esti- videos before placing ads on graphic, promote illegal be- tent on which they place ads.
totle: Is it right, good and mates from research firm them, rather than automati- havior or incite violence. “They cannot masquerade as
fitting? Citigroup executives eMarketer. cally placing ads on videos af- Google also allows advertisers technology companies, partic-
composed their own three Advertisers are also con- ter they are uploaded. “Google to exclude their ads from be- ularly when they place adver-
questions: Is it in our clients’ cerned about the accuracy of should ensure that content is ing shown next to certain top- tisements,” he said.
interest, does it create eco- data fed to them by Google quarantined until properly cat- ics or categories of sites, such In an email to clients Fri-
nomic value, and is it sys- and Facebook about their ads. egorized,” the group said. as content that is sexual, pro- day, WPP said Google “deploys
temically responsible? The companies say they are L’Oréal and Sainsbury, two fane or discusses tragedies. brand safety technology but it
Citigroup is sharing the auditing their metrics. of the companies whose ads Google said it employs is not infallible.…We have
idea with employees and On Friday, the British gov- appeared during the videos thousands of people to stop communicated at the highest
plans to work it into training ernment demanded that supporting terrorist groups, violations of its ad policies. levels with Google and are
manuals. It is also posting Google officials provide an didn’t respond to requests for The company said that last working toward a solution in
the questions in its mission explanation soon about how comment. year it removed more than respect of un-curated content,
statement and at its offices it will prevent ads from ap- Google said it already em- 100,000 websites from its ad if there is one.”
around the world, including pearing on inappropriate con- ploys software to automati- inventory and blocked ads —Nick Kostov, Jenny Gross
in big letters in the lobby of tent. cally scan YouTube video titles from more than 300 million and Suzanne Vranica
its Manhattan headquarters. The Incorporated Society of and images to decide whether YouTube videos. “However, contributed to this article.
THE WALL STREET JOURNAL. * * * * * * Saturday/Sunday, March 18 - 19, 2017 | B3

BUSINESS NEWS

Apple’s Cook Slipping

Top five smartphone
vendors in China

To Deepen
Shipments, in millions
2015 2016 Change

BERND THISSEN/AGENCE FRANCE-PRESSE/GETTY IMAGES

Oppo s122%

Chinese Ties
Huawei s22%

Vivo s97%

BY TRIPP MICKLE
Apple Inc. launched a new
round in its charm offensive in
China, announcing two addi-
tional research-and-develop-
ment centers ahead of
speeches Chief Executive Tim
Cook is scheduled to give at a
major Chinese government
conference.
The new centers, to be set
up in Shanghai and Suzhou,
bring Apple’s total commit-
ment to R&D facilities in China
to more than 3.5 billion yuan,
or about $500 million, the
company said Friday in an an-
nouncement issued only in
Chinese. Apple currently oper-
ates a center in Beijing and
last year committed to open-
ing another in Shenzhen.
Mr. Cook is expected to
mention those commitments
in a speech on innovation and
corporate social responsibility
at the China Development Fo-
rum, a gathering of China’s se-
nior leadership and global
business executives that be-
gins Saturday. Mr. Cook has
visited China numerous times,
but it will be his first speech
to the forum, which is hosted
by an arm of the State Council,
China’s cabinet. The guest list
of the event, which is held at
the Diaoyutai State Guest-
house in Beijing, also includes
International Business Ma-
chines Corp. CEO Ginni Rom-
etty and Johnson & Johnson
CEO Alex Gorsky.
The Apple chief is also
slated to make introductory
remarks at the event on Mon-
day for a session titled “Secu-
rity and Governance in Cyber-
space” featuring Xu Lin, who
as head of China’s Cyberspace
Administration presides over
the nation’s internet censor-
ship system. Mr. Cook’s ap-
Apple t23%
Xiaomi t36%
0 40 80
Note: 2016 data are preliminary
Source: IDC
Tim Cook, shown last month, is slated to speak to China’s leaders and global business executives. THE WALL STREET JOURNAL.
pearance at what is scheduled Greater China, which includes half the devices’ battery life supported 4.8 million jobs in
to be a closed-door event Taiwan and Hong Kong, fell remained. Apple said a limited China.
points up Apple’s balancing 17% in its latest fiscal year to number of phones were af- Longer term, though, Ap-
act in a huge market for its $48.49 billion, as Huawei fected and offered free re- ple’s business is out of step
products; while the company Technologies Co. and other placement batteries for those with the Chinese government’s
champions values at home Chinese companies gained devices. goal to reduce its dependence
such as individual privacy and share against its iPhone—al- China is a critical manufac- on expensive foreign technol-
media accuracy, it must also though Apple said sales stabi- turing hub for Apple—a fact ogy, and facilitate the develop-
deal with a Chinese govern- lized in the most recent quar- that triggered criticism during ment of homegrown competi-
ment that tightly limits speech ter in mainland China. the election campaign last tors like Huawei, Xiaomi Corp.,
and other individual freedoms. Apple last year was forced year from then-candidate Don- Oppo and Vivo.
Apple confirmed Mr. Cook’s to halt its online music and ald Trump, who said Apple “Apple is annoying to China
scheduled appearances. book services in China because should make more products in because it’s selling phones and
The company is grappling they violated local media the U.S. The vast majority of sending money back to the
with rising pressure from rules. The company also faced its products sold world-wide United States,” said Roger Kay,
homegrown rivals and a string criticism from local consumer are made in China by contract an analyst at Endpoint Tech-
of other setbacks in China, its groups last year amid reports manufacturers such as Fox- nologies Associates Inc. “It’s
most important market out- that iPhones were spontane- conn Technology Group, and competing with Xiaomi and
side the U.S. Its sales in ously shutting down even as Apple says it has created and Huawei, and that’s an irritant.”

For Amgen, Positive Data on Drug Does Little for Stock

BY JONATHAN D. ROCKOFF
AND BETSY MCKAY
Amgen Inc. on Friday re-
ported widely anticipated data
on its new cholesterol-lower-
ing drug Repatha, showing it
reduced the risk of deaths,
heart attacks and strokes. But
the positive findings failed to
persuade Wall Street that
health-care insurers would be-
gin easing access to the expen-
sive drug.
A 6.4% drop in Amgen’s
share price underscored a
mounting challenge for drug
companies once they have se-
cured regulatory approval for
a new medicine: getting health
plans to pay for it.
Researchers found, in a
study following 27,564 pa-
tients over 2.2 years, that Re-
patha reduced the risk of
deaths, heart attacks and
strokes by 20% compared with
standard treatment with statin
drugs. Repatha lowered the
risk of a wider array of heart-
related events by 15%.
The risk reduction, al-
though significant, may still
not be enough to overcome
reservations about a drug that
lists for more than $14,500 a
year, according to analysts.
“It is likely that the major-
ity of restrictions” on coverage
such as requiring prior autho-
rization, will remain, Barclays’
Geoff Meacham said in a re-
search note. Kettering Cancer Center’s Cen-
To persuade health plans ter for Health Policy and Out-
and drug-benefit managers to comes, said after reviewing
pay for Repatha, Amgen has the trial data.
”Now that Repatha has
proven a meaningful reduction
The high price of the in cardiovascular events, we
expect payers to remove oner-
cholesterol treatment ous barriers” to patient access,
has been an issue Joshua Ofman, an Amgen se-
nior vice president, said Fri-
with health plans. day.
In 2016, Repatha sales to-
taled $141 million, including
$101 million in the U.S.
offered to refund the cost to Amgen has been striking so-
payers for patients who suffer called value-based reimburse-
a heart attack or stroke. About ment deals with health plans
4.9% of trial subjects suffered like Cigna and Harvard Pilgrim
one of the events, Peter Bach, Health Care that tie the pay-
director of Memorial Sloan ments the company receives to
the benefits to patients. Repatha had met the goals of
Repatha, among the new in- its study, but released the spe-
jectable cholesterol-fighting cific findings only on Friday at
agents known as PCSK9s, was a medical meeting.
approved in 2015 after studies Amgen is “very confident”
showed it cut levels of bad that doctors will view the re-
cholesterol. Unclear was
whether that LDL-cholesterol
sults as “practice-changing”
and incorporate Repatha into
reduction also reduced the risk their care of patients whose
of heart-related events, such
as heart attacks and strokes.
cholesterol remains high de-
spite treatment with a statin
Without such evidence, or who can’t tolerate a statin,
health plans have limited ac- said Sean Harper, Amgen’s
cess to Repatha, as well as to chief of research and develop-
rival drug Praluent from ment.
Sanofi SA and Regeneron Doctors not involved in the
Pharmaceuticals Inc., in favor study said that determining
of much-cheaper statin pills. which patients can benefit
Shares in Sanofi and Regen- most from PCSK9 inhibitors
eron also fell Friday. will still be critical, given their
Amgen said last month that high cost.

Nintendo’s New Console Catches On DR® CHIPPERS

BY TAKASHI MOCHIZUKI month, but one person famil-
iar with production said 2.5
now at our Lowest
TOKYO—Nintendo Co. has
decided to at least double
planned production of its
million or more is likely.
Nintendo plans to discuss
the Switch’s March sales and
Prices EVER!
FRANCK ROBICHON/EUROPEAN PRESSPHOTO AGENCY

Switch console in the coming
fiscal year owing to strong de-
mand, people briefed on the
plans said.
The move suggests that the
Switch, which went on sale
globally March 3, is on track
for a debut year similar to
that of Nintendo’s popular Wii
system a decade ago. If so, it
would deliver a badly needed
hit for a company whose pre-
vious console, the Wii U, fell
far short of expectations.
The Switch, a hybrid prod-
uct designed for use both at
home and on the go, has been
scarce in stores since it went
on sale. Nintendo hasn’t pro-
vided any sales figures, but its
North American unit described
the initial momentum as the
strongest in the company’s
history.
The company’s shares,
which gained 1.7% in Tokyo on
Friday, are up sharply since
March 2, the day before the
Switch’s launch.
In the fiscal year starting
next month, assemblers under
contract with Nintendo are
Strong demand for the Switch will mean stepped-up production.
now planning to manufacture
16 million or more Switches,
up from an initial plan for
eight million, said people
briefed on the plans.
Even after accounting for
inventory, that suggests Nin-
tendo believes it can sell sig-
nificantly more than 10 million
units during the 12-month pe-
riod, they said, beating expec-
tations of many analysts.
A Nintendo spokesman de-
clined to comment.
First-year sales above 10
million would clear the thresh-
old that analysts say must be
BUSINESS WATCH
the outlook for the coming fis-
cal year when it reports its
latest earnings on April 27.
The company tends to offer
conservative forecasts to avoid
the need for downward revi-
sions.
Sales of the original Wii
console, which hit the market
in November 2006, reached 20
million units by the end of
2007 after two holiday sea-
sons. Its motion-sensor con-
trollers and fitness board at-
tracted many first-time
reached to generate interest console players.
from outside software produc- Sales of the Switch could
ers, who in turn can deliver a pick up further when more
fresh stream of titles to keep games go on sale. Nintendo
consumers interested in the saved some of its popular
device. franchises for later releases.
Nintendo has been fending Among those scheduled for
off pressure from some inves- this year are the third-person
tors who say the Kyoto-based shooter game “Splatoon,”
company should get out of the planned for summer, and an • Chip big branches up to 5.75" LOWEST
console business and focus on action game featuring Mario thick! PRICES
making games using its collec- the plumber for the holiday
• Self-feeding models available. EVER!
tion of famous characters. season.
Nintendo Chief Executive A game in the “Legend of No more force-feeding! Starting
Tatsumi Kimishima has said Zelda” franchise was already • Powerful engines spin big at just
the company would ship two released simultaneously with
million units globally this the Switch. fly-wheels (up to 62 lbs.), $
79999
generating massive chipping
PTO
force!
• Models that shred yard and
MODELS TOO!

garden waste as well as

CHIPOTLE MEXICAN GRILL
Burrito Maker Has
Board Openings
Chipotle Mexican Grill Inc.
said four of its directors won’t
seek reelection this year, in the
wake of a deal with activist in-
vestor William Ackman.
At the end of last year, the
burrito maker reached a settle-
ment to give Mr. Ackman’s Per-
nesses linked to its restaurants
in 2015 exposed underlying prob-
lems with Chipotle’s operations
and customer service. Efforts to
win back customers have been
halting.
—Imani Moise
VOLKSWAGEN
Heir of Car Designer
Looks to Cash In
about €1.14 billion ($1.22 billion) tries Inc., according to people fa- CHIP branches.
based on Friday’s share price. miliar with the matter.
Under agreements with other Elliott, which has had a stake
heirs in the Piech and Porsche since 2016, had wanted Akzo to
families, they have the first op- separate its specialty-chemicals
tion to buy Mr. Piech’s shares. business, a move the company
The sale would be the final said it would consider last week
step in Mr. Piech’s withdrawal as it rejected a $22.1 billion take-
from the role of power broker at over offer from PPG. But now El-
Volkswagen. He resigned as liott wants Akzo to consider a
chairman of the supervisory sale too, though only at a price
board in 2015 after a bitter feud above the €83 a share ($89.04)
with his family over his efforts PPG offered, the people said.
95481X © 2017

shing Square Capital Manage-
ment LP two seats and
announced the appointment of
two additional independent direc-
tors. Mr. Ackman disclosed a big
stake in Chipotle in September. A
Chipotle representative said the
changes announced Friday “are
the product of individual deci-
sions and are in no way part of
our agreement” with Pershing
and Mr. Ackman.
After years of strong sales
growth, a series of food-borne ill-
Ferdinand Piech, whose
grandfather designed the original
VW Beetle, is in talks with the
remaining heirs to sell most of
his shares that control Volks-
wagen AG, the family holding
said Friday.
Mr. Piech, who turns 80 this
year, owns about 14.7% of the
common stock of Porsche Auto-
mobil Holding SE, the family
holding that controls about 52%
of Volkswagen voting stock.
Mr. Piech’s shares are worth
to oust then-Chief Executive In its rejection, Akzo said
Martin Winterkorn. PPG’s bid “substantially underval- FREE SHIPPING 6 MONTH TRIAL
—William Boston ues” the company. On Friday an
Akzo spokesman said: “We have SOME LIMITATIONS APPLY
AKZO NOBEL firmly rejected the proposal from
PPG in the interests of all of our Call for FREE DVD and Catalog!
Activist Investor stakeholders, including our share-
Gives Sale a Nudge holders, due to a range of sub- TOLL-FREE
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Activist investor Elliott Man-
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877-202-1061
Akzo Nobel NV and is pushing happen in the future.” DRchipper.com
the Dutch paint maker to engage —Dana Mattioli
in talks with suitor PPG Indus- and David Benoit
B4 | Saturday/Sunday, March 18 - 19, 2017 * *** THE WALL STREET JOURNAL.

BUSINESS NEWS

Sony, Paramount Try to Get Off the B List

BY BEN FRITZ according to documents re-
leased in a corporate hack.
As Hollywood’s two worst- Sony still controls film rights
performing movie studios seek to Spider-Man.
new leaders, Paramount Pic- Paramount and Sony ha-
tures and Sony Pictures En- ven’t bought assets to aug-
tertainment also face more ment their movie businesses
fundamental questions about in the past decade.
how to turn around their busi- Paramount previously dis-
nesses after years of underin- tributed movies from Marvel
vestment by their parent com- and DreamWorks Animation
panies. and considered trying to buy
Paramount has consistently both, employees said. Instead,
ranked last at the box office Marvel and DreamWorks were

HOPPER STONE/COLUMBIA PICTURES/EVERETT COLLECTION

among Hollywood’s six major acquired by Disney and Com-
studios since 2013 and Sony cast, respectively. Sony Pic-
Pictures has been No. 5 or No. tures executives discussed
4, according to industry data. buying Metro-Goldwyn-
Paramount’s profits have Mayer, whose James Bond
declined for five straight movies Sony had distributed
years, most recently reaching for years. Instead MGM reor-
a loss of $445 million for the ganized itself into an indepen-
fiscal year ended September. dent venture. Other potential
Sony Corp. doesn’t report its acquisitions targets for Sony
motion-picture profit sepa- included DreamWorks Anima-
rately from television, but re- tion and pay-cable network
cently took a write-down of Starz, according to employees.
nearly $1 billion at its studio. Lions Gate Entertainment
It also reduced profit projec- Corp. ended up buying the
tions for movies after a series Sony recently took a write-down of nearly $1 billion at its studio. Above, a scene from ‘Ghostbusters.’ network.
of box-office disappointments. “There was a cautious busi-
Viacom Inc. abandoned thanson Research. “You need sumer-products and theme- the studio management to groundwork has been laid for ness philosophy where we did
plans to sell 49% of Paramount to build a good farm system parks businesses and last year take those resources and pro- meaningful, long-term re- not want to take big swings,”
last year and Sony has denied and then you need to execute.” bought DreamWorks Anima- duce returns for sharehold- form,” said a Sony Pictures said a former Sony Pictures
rumors it is looking to sell its For instance, Walt Disney tion SKG Inc. The investments ers,” Mr. Bakish said in an in- spokesman. executive. Many at the studio
studio. Both companies are Co.’s multibillion-dollar acqui- have boosted Universal’s prof- terview. Sony finance chief Ken- have also expressed frustra-
looking to turn around their sitions of Pixar Animation its, and employees say this Sony isn’t as close to find- ichiro Yoshida said last month tion at the lack of synergy
movie businesses under new Studios, Marvel Entertain- has helped improve morale. ing a new CEO for its studio, a that the struggles of the Japa- with Sony’s biggest entertain-
management, but face formi- ment and Lucasfilm LLC have Rather than increase larger job than Paramount as nese company’s studio stem ment asset: the PlayStation.
dable challenges, current and provided most of the fran- spending, new Viacom Chief it also includes a television partly from decisions “to raise The company could have used
former employees say. chises that have helped it Executive Bob Bakish wants business in which it has in- short-term cash in exchange the videogame console’s huge
Their struggles illustrate dominate the movie business the studio to focus on films vested. But since Tom Roth- for long-term cash flow when global footprint to launch a
the importance of long-term in recent years. Universal Pic- related to shows and talent on man was named head of Sony the electronics units were Netflix-like streaming service
investments and strategic ac- tures for years lingered at the its cable networks such as Pictures’ motion-picture unit struggling.” featuring Sony Pictures con-
quisitions in the film business bottom of the box-office rank- MTV and Nickelodeon. in 2015, he has sought to im- He cited the company’s de- tent, they note.
at a time when franchises and ings until Comcast Corp. Viacom is negotiating with prove results by increasing cision to sell its 25% interest Paramount and Sony have
recognizable brands generate bought it from General Elec- former Fox studio executive the focus on international in the merchandise rights to each made two or three such
the biggest profits. “The tric Co. in 2011. Jim Gianopulos to lead Para- markets and trying to bring Spider-Man to Marvel in 2011. movies annually for the past
movie business has become a The cable company upped mount, according to people PlayStation games to the big Under the deal, which also re- few years, while studios such
story of haves and have-nots,” annual production spending to familiar with the matter. screen, although box-office re- solved longstanding legal dis- as Disney and Universal have
said Michael Nathanson, se- about $1.2 billion from $850 “There are significant re- sults haven’t improved. putes, Marvel made a net pay- made between four and eight
nior analyst at MoffettNa- million, invested in its con- sources and it will be up to “We are confident that the ment of about $180 million, such movies.

Mutual Funds | WSJ.com/fundresearch Fund

Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret
TotalBond 10.53 +0.02 0.6 MFS Funds Class I Prudential Cl Z & I InfProAd 25.65 +0.04 0.7 WdsrllAdml 65.88 -0.07 5.7 TgtRe2020 29.40 +0.03 4.0 DevMktsIndInst 12.65 +0.02 7.7
Explanatory Notes Data provided by Fidelity Selects ValueI 38.53 -0.06 6.3 TRBdZ 14.13 +0.02 1.0 IntlGrAdml 75.33 +0.0511.9 WellsIAdml 62.97 +0.07 2.1 TgtRe2025 17.10 +0.01 4.6 ExtndInst 76.33 +0.17 5.0
Biotech r 204.79 -2.4117.7 Mutual Series Schwab Funds ITBondAdml 11.24 +0.03 0.5 WelltnAdml 70.09 -0.04 3.9 TgtRe2030 30.71 +0.02 5.2 GrwthInst 62.81 -0.03 9.6
Top 250 mutual-funds listings for Nasdaq-published share classes with net assets of ITIGradeAdml 9.65 +0.01 0.7 InPrSeIn 10.45 +0.02 0.7
First Eagle Funds GlbDiscA 32.01 -0.04 4.7 S&P Sel 36.73 -0.05 6.7 WndsrAdml 73.81 -0.29 6.6 TgtRe2035 18.75 +0.01 5.7
at least $500 million each. NAV is net asset value. Percentage performance figures LTGradeAdml 9.99 +0.04 0.2 InstIdx 217.50 -0.29 6.7
are total returns, assuming reinvestment of all distributions and after subtracting GlbA 57.36 +0.10 5.7 GlbDiscz 32.61 -0.04 4.8 TIAA/CREF Funds VANGUARD FDS TgtRe2040 32.10 +0.02 6.3
FPA Funds Oakmark Funds Invest EqIdxInst MidCpAdml 173.63 +0.07 6.6 DivdGro 25.03 +0.03 6.8 TgtRe2045 20.11 +0.01 6.5 InstPlus 217.53 -0.28 6.7
annual expenses. Figures don’t reflect sales charges (“loads”) or redemption fees. 17.64 -0.02 6.3
MuHYAdml 11.01 ... 0.8 TgtRe2050 32.35 +0.01 6.4 InstTStPlus 53.55 -0.03 6.4
NET CHG is change in NAV from previous trading day. YTD%RET is year-to-date FPACres 33.95 -0.07 4.1 EqtyInc r 31.94 -0.08 5.0 Tweedy Browne Fds HlthCare r 205.04 -0.9511.0
MuIntAdml 13.90 +0.01 0.7 TgtRetInc 13.08 +0.01 2.1 MidCpInst 38.36 +0.02 6.6
return. 3-YR%RET is trailing three-year return annualized. FrankTemp/Frank Adv Oakmark 76.24 -0.25 5.2 GblValue 26.63 +0.05 6.3 INSTTRF2020 20.95 +0.02 4.0
MidCpIstPl 189.17 +0.07 6.6
MuLTAdml 11.35 +0.01 0.5 TotIntBdIxInv 10.75 +0.01 -0.7
IncomeAdv 2.33 ... 3.1 OakmrkInt 24.86 +0.01 9.5 VANGUARD ADMIRAL INSTTRF2025 21.03 +0.01 4.6
e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e MuLtdAdml 10.89 ... 0.8 SmCapInst 64.28 +0.16 4.1
FrankTemp/Franklin A Old Westbury Fds 500Adml 220.42 -0.29 6.7 INSTTRF2030 21.08 +0.01 5.1 WellsI 25.99 +0.03 2.0
and s apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply, MuShtAdml 15.76 ... 0.5 Welltn
SmCapIstPl 185.53 +0.44 4.1
CA TF A p 7.32 +0.01 0.9 LrgCpStr 13.69 +0.01 6.7 BalAdml 32.32 ... 3.9 INSTTRF2035 21.14 +0.01 5.7 40.58 -0.02 3.9
12b-1. r-Redemption charge may apply. s-Stock split or dividend. t-Footnotes p and r PrmcpAdml r 117.95 -0.23 8.4 STIGradeInst 10.64 +0.01 0.5
Fed TF A p 11.96 ... 0.6 Oppenheimer Y CAITAdml 11.55 +0.01 0.7 INSTTRF2040 21.19 +0.01 6.3 WndsrII 37.13 -0.04 5.7
apply. v-Footnotes x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not REITAdml r 116.81 +0.46 -0.1 TotBdInst 10.62 +0.02 0.2
available due to incomplete price, performance or cost data. NE-Not released by Lipper; IncomeA p 2.35 ... 3.0 DevMktY 35.32 +0.1010.5 CapOpAdml r 134.41 -0.48 8.2 SmCapAdml 64.28 +0.15 4.1 INSTTRF2045 21.26 +0.01 6.5 VANGUARD INDEX FDS TotBdInst2 10.58 +0.02 0.2
data under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period. RisDv A p 55.62 +0.26 5.7 IntGrowY 37.06 +0.05 6.9 EMAdmr 33.23 +0.0811.6 STBondAdml 10.42 +0.01 0.2 LifeCon 18.96 +0.02 2.8 500 220.38 -0.29 6.7 TotBdInstPl 10.62 +0.02 0.2
FrankTemp/Franklin C Parnassus Fds EqIncAdml 72.02 -0.04 5.3 STIGradeAdml 10.64 +0.01 0.5 LifeGro 30.52 +0.02 5.7 ExtndIstPl 188.37 +0.43 5.0 TotIntBdIdxInst 32.25 +0.02 -0.7
Income C t 2.38 ... 3.3 ParnEqFd 41.26 ... 5.0 ExplrAdml 85.79 +0.13 6.7 TotBdAdml 10.62 +0.02 0.2 LifeMod 25.18 +0.02 4.3 SmValAdml 53.29 +0.11 2.5 TotIntlInstIdx r106.81 +0.19 8.4
Friday, March 17, 2017
FrankTemp/Temp A PIMCO Fds Instl ExtndAdml 76.33 +0.17 5.0 TotIntBdIdxAdm 21.49 +0.01 -0.7 PrmcpCor 23.89 -0.11 7.7 TotBd2 10.58 +0.02 0.2 TotItlInstPlId r106.83 +0.18 8.4
Net YTD Net YTD Net YTD
Fund NAV Chg %Ret Fund NAV Chg %Ret Fund NAV Chg %Ret GlBond A p 12.38 +0.02 3.8 AllAsset NA ... NA GNMAAdml 10.46 +0.01 -0.3 TotIntlAdmIdx r 26.71 +0.05 8.4 SelValu r 30.42 -0.05 5.7 TotIntl 15.97 +0.03 8.4 TotStInst 59.67 -0.05 6.4
Growth A p 25.12 -0.05 6.6 HiYld 8.86 ... 1.7 GrwthAdml 62.81 -0.02 9.6 TotStAdml 59.66 -0.04 6.4 STAR 24.88 +0.01 5.1 TotSt 59.63 -0.04 6.4 ValueInst 37.86 -0.07 4.5
American Century Inv HiYldBd 7.70 ... 2.0 TMktIdxF r 68.65 -0.05 6.4
FrankTemp/Temp Adv TotRt 10.07 +0.02 1.0 HlthCareAdml r 86.49 -0.4011.0 TxMIn r 12.63 +0.02 7.6 STIGrade 10.64 +0.01 0.5 VANGUARD INSTL FDS Western Asset
Ultra 38.21 ... 9.5 StratIncOpptyIns 9.92 ... 1.5 TMktIdxPrem 68.65 -0.04 6.4 HYCorAdml r 5.85 ... 1.5
GlBondAdv p 12.33 +0.02 3.8 PIMCO Funds A ValAdml 37.86 -0.07 4.5 TgtRe2015 14.98 +0.02 3.2 BalInst 32.33 +0.01 3.9 CorePlusBdI NA ... NA
American Funds Cl A Del Invest Instl USBdIdxPrem 11.45 +0.02 0.2
AmcpA p 29.08 -0.03 6.8 Value 20.50 +0.02 4.2 USBdIdxInstPrem 11.45 +0.02 0.2 Harbor Funds IncomeFd NA ... NA
AMutlA p 38.63 -0.25 5.4 Dimensional Fds Fidelity Advisor I CapApInst 62.56 +0.0310.4 PIMCO Funds D
BalA p 25.76 ... 4.2 5GlbFxdInc 10.91 +0.01 0.4 NwInsghtI 29.06 -0.01 8.8 IntlInst r 63.14 +0.23 8.1 IncomeFd NA ... NA
BondA p 12.72 +0.02 0.4 EmgMktVa 27.45 +0.0214.6 Fidelity Freedom Invesco Funds A PIMCO Funds Instl
-0.03 3.1 IncomeFd NA ... NA
Insider-Trading Spotlight
CapIBA p 59.83 +0.10 4.7 EmMktCorEq 19.78 +0.0513.9 FF2020 15.70 ... 4.7 EqIncA 10.85
Trading by ‘insiders’ of a corporation, such as a company’s CEO, vice president or director, potentially conveys
CapWGrA 47.06 +0.01 7.8 IntlCoreEq 12.54 +0.01 7.5 FF2025 13.50 ... 5.1 John Hancock Class 1 PIMCO Funds P
EupacA p 49.18 +0.08 9.0 IntSmCo 18.70 +0.04 8.3 FF2030 16.75 ... 6.1 LSBalncd 14.90 ... 4.6 IncomeP NA ... NA new information about the prospects of a company. Insiders are required to report large trades to the SEC
FdInvA p 57.97 -0.01 6.8 IntSmVa 20.54 +0.04 8.0 FreedomK2020 14.62 +0.01 4.7 LSGwth 15.58 +0.01 6.0 Price Funds within two business days. Here’s a look at the biggest individual trades by insiders, based on data received by
GwthA p 45.58 -0.01 8.4 US CoreEq1 20.38 -0.01 5.8 FreedomK2025 15.34 +0.01 5.1 John Hancock Instl BlChip 80.18 -0.0710.4
HI TrA p 10.35 ... 2.0 US CoreEq2 19.51 -0.02 4.8 FreedomK2030 15.79 ... 6.1 DispValMCI 22.58 +0.01 5.2 CapApp 27.68 +0.02 5.7
Thomson Financial on March 17, and year-to-date stock performance of the company
ICAA p 38.40 -0.22 6.4 US Small 34.36 +0.13 1.5 FreedomK2035 16.46 ... 6.7 JPMorgan Funds EqInc 32.79 -0.05 4.2 KEY: B: beneficial owner of more than 10% of a security class CB: chairman CEO: chief executive officer CFO: chief financial officer
IncoA p 22.31 +0.03 3.7 US SmCpVal 37.15 +0.10 -0.6 FreedomK2040 16.49 ... 6.8 MdCpVal L NA ... NA EqIndex 64.10 -0.09 6.7 CO: chief operating officer D: director DO: director and beneficial owner GC: general counsel H: officer, director and beneficial owner
N PerA p 38.70 +0.04 9.5 US TgdVal 24.24 +0.04 1.0 Fidelity Invest JPMorgan R Class Growth 59.00 -0.0210.8 I: indirect transaction filed through a trust, insider spouse, minor child or other O: officer OD: officer and director P: president UT:
NEcoA p 39.87 ...10.9 USLgVa 36.66 -0.11 4.5 Balanc 23.18 -0.02 5.3 CoreBond NA ... NA HelSci 66.35 -0.2112.3 unknown VP: vice president Excludes pure options transactions
NwWrldA 56.73 +0.0910.3 Dodge & Cox BluCh 74.77 -0.0811.0 JPMorgan Select Cls InstlCapG 32.32 -0.0210.5
SmCpA p 49.80 +0.12 8.3 Balanced 107.79 -0.18 4.3 Contra 108.05 -0.0310.5 CoreBond NA ... NA IntlValEq 13.71 +0.02 7.0
TxExA p 12.73 +0.01 0.6 Income 13.69 +0.02 0.7 ContraK 107.99 -0.0310.5 USLgCpCorPls NA ... NA IntlStk 16.81 +0.03 9.9 Biggest weekly individual trades
WshA p 42.94 -0.18 5.3 Intl Stk 41.79 -0.04 9.7 CpInc r MCapGro 81.70 +0.17 8.4
10.01 -0.01 3.9 Lazard Instl Based on reports filed with regulators this past week
AMG Managers Funds Stock 195.49 -0.66 6.1 DivIntl 35.90 +0.02 7.8 MCapVal 29.98 ... 3.2
EmgMktEq 17.85 +0.0811.8
YacktmanFd I 22.89 ... 7.0 DoubleLine Funds GroCo 150.85 +0.0210.3 N Horiz 47.75 +0.1310.3 No. of shrs in Price range ($) $ Value
Loomis Sayles Fds
Baird Funds TotRetBdI NA ... NA GrowCoK 150.72 +0.0210.3 N Inc 9.35 +0.01 0.3 Date(s) Company Symbol Insider Title trans (000s) in transaction (000s) Close ($) Ytd (%)
LSBondI 13.90 +0.01 3.0
AggBdInst 10.70 +0.01 0.4 TotRetBdN NA ... NA InvGB 7.78 +0.01 0.4 OverS SF r 9.82 +0.01 8.3
11.04 +0.01 0.5 Federated Instl Lord Abbett A
CorBdInst
BlackRock Funds A StraValDivIS 6.20 +0.01 5.3
InvGrBd
LowP r
11.09
51.65
+0.01 0.5
+0.02 4.4
ShtDurIncmA p 4.30 ... 0.6
R2015
R2020
14.76
21.42
... 4.1
+0.02 4.9
Buyers
GlblAlloc p 18.99 ... 4.5 Fidelity Lord Abbett F R2025 16.36 ... 5.5 Mar. 13-14 TransDigm Group TDG R. Small DI 105 231.20-234.27 24,452 240.05 -3.6
LowPriStkK r 51.61 +0.02 4.4
BlackRock Funds C ShtDurIncm 4.29 ... 0.6 R2030 23.91 +0.01 6.1
500IdxInst 83.61 -0.11 6.7 MagIn 97.67 -0.39 6.9 Mar. 10 Herbalife HLF C. Icahn BI 372 51.35 19,119 56.45 17.3
GlblAlloc t 17.26 ... 4.3 500IdxInstPrem 83.61 -0.11 6.7 Metropolitan West R2035 17.37 +0.01 6.6
OTC 93.20 -0.1411.9
BlackRock Funds Inst 500IdxPrem 83.60 -0.11 6.7 Puritn 21.74 -0.02 5.6
TotRetBd 10.52 +0.01 0.2 R2040 24.84 +0.01 7.0 Mar. 8-10 Navistar International NAV C. Icahn BI 423 25.37-25.92 10,831 27.49 -12.4
TotRetBdI 10.51 +0.01 0.2 SmCapStk
EqtyDivd 23.58 -0.06 4.6 ExtMktIdxPrem r 58.29 +0.13 5.0 SrsEmrgMktF 17.92 +0.0513.9 46.68 +0.16 3.9 Mar. 9 Restaurant Brands International QSR A. Van Damme DI 141 54.29 7,661 54.45 14.2
GlblAlloc 19.10 ... 4.5 IntlIdxPrem r 38.02 +0.07 7.6 TRBdPlan 9.90 +0.02 0.3 Value 35.67 -0.07 6.0
SrsInvGrdF 11.10 +0.02 0.5 Mar. 9-13 Calavo Growers CVGW L. Cole CEO 95 55.00-56.92 5,360 58.30 -5.0
Mar. 13-15 Tandy Leather Factory TLF J. Pappas DI 482 7.25-7.30 3,498 7.75 -4.3
Mar. 2 La Jolla Pharmaceutical LJPC K. Tang DOI 100 34.64 3,464 35.88 104.7
Exchange-Traded Portfolios | WSJ.com/ETFresearch Mar. 9-10 Fifth Street Finance FSC L. Tannenbaum B 595 4.37-4.43 2,622 4.59 -14.5
Mar. 13-14 L. Tannenbaum B 533 4.50-4.51 2,402
Closing Chg YTD
Largest 100 exchange-traded funds, latest session ETF Symbol Price (%) (%) Mar. 8 Chesapeake Energy CHK A. Dunham D 500 5.24 2,622 5.29 -24.6
iShRussell1000Gwth IWF 114.23 –0.06 8.9 Mar. 10-14 Compass Diversified Holdings CODI A. Offenberg UT 150 16.49-16.71 2,495 16.50 -7.8
Friday, March 17, 2017 Closing Chg YTD
ETF Symbol Price (%) (%) iShRussell1000ETF IWB 132.58 –0.11 6.5 Mar. 9-13 Seritage Growth Properties SRG B. Berkowitz BI 53 44.24-45.63 2,423 44.42 4.0
Closing Chg YTD iShRussell1000Val IWD 116.63 –0.27 4.1
ETF Symbol Price (%) (%) iShCoreS&PMdCp IJH 172.72 0.09 4.5 iShRussell2000Gwth IWO 162.25 0.27 5.4 Mar. 10-13 PIMCO Dynamic Credit & Mortgage Income Fund PCI E. Roman AI 95 20.53-20.54 1,950 21.00 3.9
AlerianMLPETF AMLP 12.60 –0.71 ... iShCoreS&PSmCpETF IJR 69.79 0.56 1.5 iShRussell2000ETF IWM 138.46 0.40 2.7 Mar. 15 ICU Medical ICUI G. Lopez DO 12 155.60 1,867 158.30 7.4
CnsmrDiscSelSector XLY 87.36 0.14 7.3 iShS&PTotlUSStkMkt ITOT 54.58 –0.04 6.4 iShRussell2000Val IWN 119.23 0.45 0.2
iShCoreUSAggBd AGG 107.89 0.21 –0.2 iShRussell3000ETF IWV 141.25 –0.09 6.2 Mar. 10 LCI Industries LCII J. Gero D 10 101.12 1,011 102.95 -4.5
CnsStapleSelSector XLP 54.98 –0.27 6.3
iShSelectDividend DVY 92.33 0.20 4.2 0.04
DBGoldDoubleLgETN DGP 22.71 0.46 12.9 iShRussellMid-Cap IWR 188.39 5.3 Mar. 9-10 American Assets Trust AAT E. Rady CEOI 24 40.99-41.24 1,007 42.33 -1.7
iShEdgeMSCIMinEAFE EFAV 65.88 0.30 7.6 iShRussellMCValue IWS 83.54 0.07 3.9
DBGoldDoubleShrt DZZ 5.97 –0.33 –12.9
iShEdgeMSCIMinUSA USMV 48.26 0.29 6.7 iShS&PMC400Growth IJK 192.34 0.15 5.6 Mar. 9 DDR Corp DDR T. Ahern D 76 13.11 996 13.09 -14.3
DeutscheXMSCIEAFE DBEF 29.58 0.20 5.4
iSharesGold IAU 11.82 0.08 6.7 –0.02
EnSelectSectorSPDR XLE 69.80 –0.07 –7.3 iShiBoxx$InvGrCpBd LQD 116.82 0.23 –0.3
iShS&P500Growth IVW 132.23 8.6 Mar. 13 Occidental Petroleum OXY V. Hollub CEO 15 62.72 941 64.09 -10.0
FinSelSectorSPDR XLF 24.45 –0.97 5.2 iShS&P500ValueETF IVE 105.71 –0.38 4.3
iShiBoxx$HYCpBd HYG 87.08 0.03 0.6 iShS&PMC400Value IJJ 149.84 0.10 3.2
–0.03
GuggS&P500EW
HealthCareSelSect
RSP
XLV
91.06
75.16 –0.54
5.1
9.0
iShJPMUSDEmgBd
iShMBSETF
EMB
MBB
113.04
105.92
0.41
0.23
2.6
–0.4
iShUSPfdStk PFF 38.46 0.16 3.4 Sellers
IndSelSectorSPDR XLI 65.68 0.55 5.6 iShSilver SLV 16.47 0.43 9.0
iShMSCIACWIETF ACWI 63.51 –0.05 7.3
iShTIPSBondETF TIP 113.81 0.22 0.6 Mar. 14 Planet Fitness PLNT C. Esserman DOI 14,775 20.44 302,001 20.19 0.4
iShIntermCredBd CIU 108.41 0.18 0.2 iShMSCIEAFESC SCZ 54.14 0.37 8.6
iSh1-3YTreasuryBd SHY 84.38 0.05 –0.1 Mar. 14 P. Lecomte DOI 14,775 20.44 302,001
iSh1-3YCreditBond CSJ 105.01 0.04 0.1 iSharesMSCIEAFEETF EFA 62.23 0.26 7.8
iSh3-7YTreasuryBd IEI 122.41 0.16 –0.1 iShMSCIEmgMarkets EEM 39.49 –0.18 12.8
iSh7-10YTreasuryBd IEF 104.73 0.27 –0.1 Mar. 14-16 Wal-Mart Stores WMT S. Walton DOI 3,000 70.34-70.86 211,497 69.89 1.1
iShCoreHiDividend HDV 85.30 –0.04 3.7 iShRussellMCGrowth IWP 104.43 0.11 7.2 Mar. 14-16 A. Walton BI 3,000 70.34-70.86 211,497
iShMSCIEurozoneETF EZU 37.25 –0.11 7.7
iShCoreMSCIEAFEETF IEFA 57.86 0.24 7.9 PwrShQQQ 1 QQQ 131.69 –0.03 11.1 Mar. 14-16 J. Walton BI 3,000 70.34-70.86 211,497
iShMSCIJapanETF EWJ 51.83 0.33 6.1
iShCoreMSCIEmgMk –0.02 13.0 PwrShS&P500LoVol SPLV 43.85 0.37 5.5
IEMG 47.95 iShNasdaqBiotech IBB 295.28 –1.11 11.3 Mar. 10 Financial Engines FNGN M. Martin DI 4,109 43.85 180,185 42.30 15.1
iShCoreS&P500ETF IVV 239.59 –0.20 6.5 iShNatlMuniBdETF MUB 108.11 0.06 –0.1 PwrShSrLoanPtf BKLN 23.25 –0.09 –0.5
SPDRBloomBarcHYBd JNK 36.63 –0.03 0.5 Mar. 8-9 Facebook FB M. Zuckerberg CEOI 381 137.69-138.53 52,499 139.84 21.5
SchwabIntEquity SCHF 29.82 0.13 7.7
SchwabUS BrdMkt SCHB 57.61 –0.09 6.3 Mar. 8-10 Marsh & McLennan Cos MMC D. Glaser CEO 488 73.11-73.34 35,743 75.14 11.2

Borrowing Benchmarks | WSJ.com/bonds SchwabUS LC

SPDR DJIA Tr
SCHX
DIA
56.86
208.86
–0.11
–0.08
6.8
5.7
Mar. 16
Mar. 8
Oracle
Arista Networks
ORCL
ANET
M. Hurd
K. Duda
CEO
OI
700
200
46.44
123.53
32,511
24,706
45.66
128.10
18.8
32.4
SPDR GldTr GLD 116.99 0.22 6.7
Money Rates March 17, 2017 SPDR S&PMdCpTr
SPDR S&P 500
MDY
SPY
314.22
237.03
0.07
–0.17
4.1
6.0
Mar. 13 Monster Beverage MNST M. Hall OD 488 46.34 22,591 46.47 4.8
SPDR S&P Div SDY 88.96 0.17 4.0 Mar. 14-16 Stamps.com STMP K. Huebner P 145 127.71-133.23 19,037 128.80 12.3
Key annual interest rates paid to borrow or lend money in U.S. and TechSelectSector XLK 53.34 0.23 10.3 Mar. 7-8 Dr Pepper Snapple Group DPS L. Young CEO 196 94.12-94.53 18,469 95.59 5.4
international markets. Rates below are a guide to general levels but UtilitiesSelSector XLU 51.23 0.61 5.5
Mar. 10-14 Public Storage PSA R. Havner CEOI 83 218.95-220.05 18,220 222.49 -0.5
VanEckGoldMiner GDX 22.67 –0.44 8.4
don’t always represent actual transactions. VangdInfoTech VGT 135.79 0.01 11.8 Mar. 8 E. Reyes CFO 65 225.09 14,631
VangdSC Val VBR 123.94 0.17 2.4 Mar. 10-14 Glaukos Corp GKOS J. Silverstein DI 383 44.54-46.13 17,339 48.89 42.5
Inflation Week —52-WEEK— VangdDivApp VIG 91.44 0.31 7.3
Latest ago High Low VangdFTSEDevMk VEA 39.34 0.15 7.7 Mar. 13-14 Newell Brands NWL M. Franklin D 340 48.13-48.48 16,434 48.42 8.4
Feb. index Chg From (%) VangdFTSE EM VWO 40.06 –0.10 12.0 Mar. 8-9 FleetCor Technologies FLT R. Clarke CEO 100 160.68-162.55 16,091 162.23 14.6
level Jan. '17 Feb. '16 Britain 0.25 0.25 0.50 0.25 VangdFTSE Europe VGK 51.63 0.14 7.7
Australia 1.50 1.50 2.00 1.50 VangdFTSEAWxUS VEU 47.98 0.06 8.6 * Half the transactions were indirect **Two day transaction
U.S. consumer price index VangdGrowth VUG 121.96 –0.07 9.4 p - Pink Sheets
Secondary market VangdHlthCr VHT 139.43 –0.56 10.0
All items 243.603 0.31 2.7 VangdHiDiv VYM 78.93 –0.06 4.2
Core 251.143 0.42 2.2 0.22
Fannie Mae VangdIntermBd
VangdIntrCorpBd
BIV
VCIT
83.05
85.73 0.21
–0.0
0.0
Buying and selling by sector
International rates 30-year mortgage yields VangdLC VV 109.25 –0.15 6.7 Based on actual transaction dates in reports received this past week
VangdMC VO 140.19 0.02 6.5
30 days 3.758 3.853 3.865 2.806 VangdMC Val VOE 102.75 –0.03 5.7
Week 52-Week
Latest ago High Low 60 days 3.790 3.887 3.899 2.832 VangdREIT VNQ 82.44 0.46 –0.1 Sector Buying Selling Sector Buying Selling
Notes on data: VangdS&P500 VOO 218.56 –0.20 6.5
VangdST Bond BSV 79.50 0.08 0.1
Basic Industries 1,990,196 18,917,784 Finance 8,680,820 125,023,493
Prime rates U.S. prime rate is effective March 16, 2017.
U.S. prime rate is the base rate on corporate VangdSTCpBd VCSH 79.46 0.10 0.1 Business services 788,949 26,447,959 Health care 6,976,954 63,521,766
U.S. 4.00 3.75 4.00 3.50 loans posted by at least 70% of the 10 largest VangdSC VB 133.98 0.16 3.9 Capital goods 0 0 Industrial 598,750 32,762,716
VangdTotalBd BND 80.58 0.20 –0.3
Canada 2.70 2.70 2.70 2.70 U.S. banks; Consumer durables 0 30,909,451 Media 52,341 20,102,017
Other prime rates aren’t directly comparable; VangdTotIntlBd BNDX 53.73 –0.09 –1.0
Japan 1.475 1.475 1.475 1.475 VangdTotIntlStk VXUS 49.76 –0.02 8.5 Consumer nondurables 10,041,265 123,417,152 Technology 718,021 158,042,611
lending practices vary widely by location.
VangdTotalStk VTI 122.57 –0.06 6.3
Policy Rates Complete Money Rates table appears Monday
VangdTotlWrld VT 65.69 0.03 7.7
Consumer services 734,321 150,601,915 Transportation 421,816 14,251,993
through Friday.
Euro zone 0.00 0.00 0.00 0.00 VangdValue VTV 97.01 –0.26 4.3 Energy 6,197,358 3,083,657 Utilities 323,925 12,286,351
Sources: Bureau of Labor Statistics; SIX Financial WisdTrEuropeHdg HEDJ 62.02 0.27 8.0
Switzerland 0.50 0.50 0.50 0.50 Information WisdTrJapanHdg DXJ 51.56 –0.41 4.1 Sources: Thomson Financial; WSJ Market Data Group
THE WALL STREET JOURNAL. * * * * Saturday/Sunday, March 18 - 19, 2017 | B5

BIGGEST 1,000 STOCKS

YTD 52-Week Yld Net YTD 52-Week Yld Net YTD 52-Week Yld Net
How to Read the Stock Tables % Chg Hi Lo Stock Sym % PE Last Chg % Chg Hi Lo Stock Sym % PE Last Chg % Chg Hi Lo Stock Sym % PE Last Chg
The following explanations apply to NYSE, NYSE Arca, NYSE MKT and Nasdaq Stock Market listed securities. Prices
are composite quotations that include primary market trades as well as trades reported by Nasdaq OMX BXSM 0.71 28.55 14.04 JoyGlobal JOY 0.1 dd 28.20 -0.02 21.28 84.48 66.43 Salesforce.com CRM ...308 83.03 -0.49 3.77 8.46 6.23 BlackBerry BBRY ... dd 7.15 -0.02
(formerly Boston), Chicago Stock Exchange, CBOE, National Stock Exchange, ISE and BATS. 1.49 29.21 21.18 JuniperNetworks JNPR 1.4 19 28.68 0.16 9.55 44.58 36.81 Sanofi SNY 3.6 22 44.30 -0.27 25.12 227.75 139.18 Broadcom AVGO 1.8 dd 221.18 -1.18
The list comprises the 1,000 largest companies based on market capitalization. 7.09 47.03 35.68 KAR Auction KAR 2.8 29 45.64 0.12 0.10 33.31 24.85 Sasol SSL 2.6 18 28.62 0.01 2.08 34.99 29.12 CA CA 3.1 17 32.43 0.08
Underlined quotations are those stocks with large changes in volume compared with the issue’s average trading s 29.36 45.86 26.45 KB Fin KB ... 10 45.65 -0.04 -7.37 76.41 65.08 Scana SCG 3.6 16 67.88 0.20 9.04 81.36 61.22 CBOE Holdings CBOE 1.2 35 80.57 0.12
volume. 18.00 18.50 11.63 KKR KKR 3.5 34 18.16 -0.19 -5.24 87.84 71.34 Schlumberger SLB 2.5 dd 79.55 -0.10 11.44 67.49 43.88 CDK Global CDK 0.8 38 66.52 ...
Boldfaced quotations highlight those issues whose price changed by 5% or more if their previous closing price was 19.16 17.16 12.88 KT KT ... 13 16.79 -0.16 s 8.59 43.65 23.82 SchwabC SCHW 0.7 33 42.86 -0.67 15.88 61.00 37.80 CDW CDW 1.1 24 60.36 -0.24
$2 or higher. -0.85 100.69 79.05 KSCitySouthern KSU 1.6 19 84.13 -1.73 -3.47 98.82 65.80 ScottsMiracleGro SMG 2.2 31 92.23 0.20 7.73 81.16 65.57 CH Robinson CHRW 2.3 22 78.92 0.71
Footnotes: h-Does not meet continued listing v-Trading halted on primary market. 1.90 87.16 70.73 Kellogg K 2.8 39 75.11 0.35 1.59 52.83 42.01 SealedAir SEE 1.4 19 46.06 0.18 8.01 127.60 89.00 CME Group CME 2.1 28 124.59 -0.15
s-New 52-week high. standards vj-In bankruptcy or receivership or 0.44 19.53 10.21 KeyCorp KEY 1.9 23 18.35 -0.12 -9.58 7.74 3.84 SemicondctrMfg SMI ... 2 6.89 -0.02 30.48 50.31 24.36 CSX CSX 1.5 26 46.88 -0.72
t-New 52-week low. lf-Late filing being reorganized under the 6.70 39.36 25.49 KeysightTechs KEYS ... 18 39.02 -0.10 10.06 114.66 92.95 SempraEnergy SRE 3.0 21 110.76 0.60 s 26.33 32.00 22.63 CadenceDesign CDNS ... 45 31.86 0.23
dd-Indicates loss in the most recent q-Temporary exemption from Nasdaq Bankruptcy Code, or securities 0.26 78.33 58.05 KilroyRealty KRC 2.0 25 73.41 1.31 12.97 45.30 32.07 SensataTech ST ... 29 44.00 -0.46 5.25 17.97 14.35 Carlyle CG 4.0 dd 16.05 -0.40
four quarters. requirements. assumed by such companies. 16.77 138.87 111.30 KimberlyClark KMB 2.9 22 133.26 -1.27 9.19 32.21 22.86 ServiceCorp SCI 1.7 34 31.01 0.13 s 8.66 127.64 94.42 Celgene CELG ... 51 125.77 -0.85
FD-First day of trading. t-NYSE bankruptcy -9.42 32.24 21.46 KimcoRealty KIM 4.7 51 22.79 ... 8.44 41.49 32.41 ServiceMaster SERV ... 36 40.85 0.16 19.51 67.50 47.01 Cerner CERN ... 31 56.61 0.26
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and 2.75 23.36 16.63 KinderMorgan KMI 2.3 85 21.28 -0.28 19.33 94.72 59.77 ServiceNow NOW ... dd 88.71 -0.09 13.16 341.50 214.06 CharterComms CHTR ... 21 325.81 2.09
changes in the closing prices from 4 p.m. the previous day. 9.32 5.82 2.88 KinrossGold KGC 4.7 dd 3.40 -0.04 2.69 21.84 17.92 ShawComm B SJR 4.4 21 20.60 0.05 s 20.08 102.24 74.34 CheckPointSftw CHKP ... 24 101.42 -0.50
YTD 52-Week Yld Net -18.00 59.67 33.87 Kohl's KSS 5.4 13 40.49 ... 16.61 316.66 239.48 SherwinWilliams SHW 1.1 27 313.38 2.05 -0.75 79.60 63.87 CincinnatiFin CINF 2.7 21 75.18 0.48
Friday, March 17, 2017 s 2.88 31.53 23.00 KoninklijkePhil PHG 2.7 18 31.45 0.08 s 8.06 125.93 85.86 Cintas
% Chg Hi Lo Stock Sym % PE Last Chg 15.46 43.98 30.57 ShinhanFin SHG ... 9 43.46 -0.22 CTAS 1.1 27 124.87 5.63
YTD 52-Week Yld Net 6.98 28.37 17.36 KoreaElcPwr KEP ... 4 19.77 0.64 s 56.26 67.39 24.96 Shopify SHOP ... dd 66.99 2.00 13.27 34.53 25.80 CiscoSystems CSCO 3.4 18 34.23 ...
% Chg Hi Lo Stock Sym % PE Last Chg 1.58 62.53 38.31 Citigroup C 1.1 13 60.37 -0.78 -14.37 39.22 28.29 Kroger KR 1.6 18 29.55 0.23 3.00 31.35 15.70 SilverWheaton SLW 1.24061 19.90 -0.17 16.32 87.99 60.15 CitrixSystems CTXS ... 24 82.72 0.15
2.78 39.75 18.34 CitizensFin CFG 1.5 18 36.62 -0.48 s 13.98 56.74 41.23 Kyocera KYO ... 19 56.74 0.16 -5.43 229.10 166.65 SimonProperty SPG 4.2 30 168.02 -1.38 26.93 81.14 35.15 Cognex CGNX 0.4 47 80.75 0.38
NYSE 14.60 140.47 111.24 Clorox CLX 2.3 28 137.54 -0.47 43.89 12.02 5.81 LATAMAirlines LFL ... dd 11.77 0.09 -0.97 62.69 47.61 SixFlags SIX 4.3 48 59.38 0.44 4.52 63.23 45.44 CognizantTech CTSH ... 23 58.56 -0.85
13.48 43.71 34.07 Coach COH 3.4 22 39.74 0.07 -22.27 88.77 47.93 L Brands LB 4.7 13 51.18 1.21 s 10.18 52.26 36.90 SmithAO AOS 1.1 28 52.17 0.34 8.50 38.44 29.34 Comcast A CMCSA 1.7 21 37.46 -0.22
10.44 23.90 18.72 ABB ABB 3.2 25 23.27 0.14 1.37 47.13 39.88 Coca-Cola
-1.95 40.72 26.46 AECOM ACM ... 34 35.65 -0.43 KO 3.5 28 42.03 -0.22 -3.81 14.36 9.84 LGDisplay LPL ... 11 12.36 -0.07 3.82 35.38 26.96 Smith&Nephew SNN 2.4 19 31.23 0.34 0.74 60.61 40.93 CommerceBcshrs CBSH 1.5 22 58.24 -0.05
14.87 54.54 30.55 Coca-Cola Euro CCE ... 18 36.07 -0.13 5.17 51.48 30.90 LINE LN ...110 35.77 0.11 8.19 157.31 122.05 Smucker SJM 2.2 24 138.55 -0.17 6.56 40.57 25.91 CommScope COMM ... 35 39.64 -0.14
-1.38 13.32 10.49 AES AES 4.2 dd 11.46 0.16 11.13 87.58 59.44 Coca-Cola Femsa KOF 2.5 27 70.61 0.63 11.41 171.24 116.97 L3 Tech LLL ... 19 169.46 1.59 t-20.18 29.44 18.90 Snap SNAP ... ... 19.54 -0.35 s 10.97 61.70 39.86 Copart CPRT ... 19 61.49 0.22
4.21 74.50 62.34 Aflac AFL 2.4 11 72.53 0.13 13.02 75.38 63.43 Colgate-Palmolive CL 2.2 27 73.96 0.06
0.19 43.89 36.10 AT&T T 4.6 20 42.61 0.17 11.97 145.00 112.16 LabCpAm LH ... 21 143.75 -0.43 0.94 181.73 145.17 SnapOn SNA 1.6 19 172.88 -0.01 8.81 224.79 174.49 CoStarGroup CSGP ... 78 205.09 -1.68
-12.20 16.09 9.70 ColonyNorthStar CLNS 8.2 34 13.10 -0.03 11.62 43.47 28.75 LambWeston LW ... 19 42.25 0.26 17.98 34.84 19.46 SOQUIMICH SQM 4.9 32 33.80 0.48 4.81 178.71 138.57 Costco COST 1.1 31 167.81 0.75
4.60 71.06 51.01 AXIS Capital AXS 2.2 13 68.27 -0.05 4.77 75.00 36.27 Comerica CMA 1.3 27 71.36 -0.53 7.04 63.38 41.45 LasVegasSands LVS 5.1 27 57.17 0.65 14.48 34.17 23.62 Sony SNE ... dd 32.09 0.20 22.65 50.37 37.36 Ctrip.com CTRP ... dd 49.06 0.06
17.65 45.84 36.76 AbbottLabs ABT 2.3 49 45.19 0.21 17.51 11.22 6.01 SABESP SBS 0.6 10 10.20 -0.16 10.12 47.09 26.21 Lazard LAZ 3.4 15 45.25 -0.71 3.01 54.64 46.20 Southern SO 4.4 20 50.67 0.48 10.24 64.74 43.28 DISH Network DISH ... 21 63.86 0.64
4.90 68.12 54.80 AbbVie ABBV 3.9 18 65.69 -0.21 12.05 71.79 31.27 CSC CSC 0.8 dd 66.58 -2.21 9.55 149.00 97.35 Lear LEA 1.4 11 145.01 -1.76 13.12 39.50 24.90 SoCopper SCCO 0.9 36 36.13 0.13 9.58 65.83 55.00 DentsplySirona XRAY 0.6 32 63.26 0.16
6.91 125.72 107.14 Accenture ACN 1.9 19 125.22 1.12 4.73 41.68 33.08 ConagraBrands CAG 1.9 29 41.42 -0.06 3.48 54.62 44.02 Leggett&Platt LEG 2.7 18 50.58 0.41 6.70 59.68 35.42 SouthwestAirlines LUV 0.8 15 53.18 -0.97 32.14 96.38 57.68 DexCom DXCM ... dd 78.89 1.51
-9.75 280.89 193.06 AcuityBrands AYI 0.2 30 208.34 -1.09 -1.61 147.55 95.87 ConchoRscs CXO ... dd 130.47 0.30 5.49 54.97 37.79 Leidos LDOS 2.4 22 53.95 0.21 -6.02 50.48 40.19 SpectraEnerPtrs SEP 6.4 15 43.08 0.05 3.59 114.00 73.12 DiamondbackEner FANG ... dd 104.69 1.25
24.27 76.09 39.66 Adient ADNT 1.5 dd 72.82 -1.08 -8.88 53.17 38.19 ConocoPhillips COP 2.3 dd 45.69 -0.15
-9.89 177.83 132.98 AdvanceAuto AAP 0.2 25 152.40 -1.01 23.06 53.79 39.68 Lennar A LEN 0.3 13 52.83 -0.14 s 16.34 143.20 105.16 SpectrumBrands SPB 1.2 26 142.32 -0.02 -1.20 30.80 23.85 DiscoveryComm B DISCB ... 15 28.80 0.75
4.07 81.88 68.76 ConEd ED 3.6 19 76.68 0.36 21.74 42.66 32.09 Lennar B LEN/B 0.4 11 42.00 -0.09 1.77 62.90 41.27 SpiritAeroSys SPR 0.7 16 59.38 0.65 2.19 29.91 23.66 DiscoveryComm A DISCA ... 14 28.01 -0.14
s 28.17 6.48 4.39 AdvSemiEngg ASX 3.9 17 6.46 0.13 5.51 173.55 144.00 ConstBrands A STZ 1.0 27 161.75 -0.29 12.31 172.61 130.34 LennoxIntl LII 1.0 27 172.03 -0.08 1.78 9.65 3.12 Sprint S ... dd 8.57 -0.04 2.13 29.07 22.43 DiscoveryComm C DISCK ... 14 27.35 -0.05
3.98 6.09 3.36 Aegon AEG 4.8 28 5.75 -0.09 -13.00 60.30 26.85 ContinentalRscs CLR ... dd 44.84 0.28 -1.92 99.93 72.55 DollarTree DLTR ... 20 75.70 0.17
9.25 49.66 31.45 AerCap AER ... 9 45.46 -0.17 13.29 27.34 15.32 LeucadiaNatl LUK 0.9 81 26.34 -0.32 26.78 18.17 8.42 Square SQ ... dd 17.28 0.07
11.55 201.83 141.67 Cooper COO 0.0 32 195.14 1.41 1.97 60.12 44.01 Level3Comm LVLT ... 31 57.47 0.44 14.51 136.90 100.61 StanleyBlackDck SWK 1.8 20 131.33 0.19 s 7.80 56.77 41.29 Dunkin' DNKN 2.3 27 56.53 0.89
6.28 136.50 104.59 Aetna AET 1.5 21 131.80 -1.26 12.24 28.36 18.21 Corning GLW 2.3 8 27.24 -0.04 2.19 38.61 21.52 E*TRADE ETFC ... 18 35.41 -0.42
12.05 179.85 130.48 AffiliatedMgrs AMG 0.5 19 162.81 -3.19 -2.46 42.26 31.80 LibertyProperty LPT 4.2 16 38.53 0.28 2.32 23.46 18.18 StarwoodProp STWD 8.5 15 22.46 0.07
6.12 31.60 17.94 Coty COTY 2.6 dd 19.43 0.12 14.15 86.14 64.18 EliLilly LLY 2.5 33 83.96 -1.03 1.15 83.49 50.59 StateStreet STT 1.9 16 78.61 -2.00 7.65 56.97 31.34 EastWestBancorp EWBC 1.5 18 54.72 -0.10
17.01 54.82 38.89 AgilentTechs A 1.0 34 53.31 0.26 3.89 173.79 121.38 Credicorp BAP 2.3 13 164.00 0.38 13.51 34.43 22.30 eBay EBAY ... 5 33.70 0.60
2.55 73.31 35.27 LincolnNational LNC 1.7 14 67.96 -1.37 -4.06 19.27 14.50 Statoil STO 5.0 dd 17.50 0.05
0.88 60.10 35.00 AgnicoEagle AEM 0.9 45 42.37 0.12 7.97 16.17 10.01 CreditSuisse CS ... dd 15.45 -0.14 13.75 91.81 61.10 ElectronicArts EA ... 22 89.59 -0.61
9.96 30.79 21.00 LiveNationEnt LYV ... dd 29.25 0.22 1.97 74.63 63.26 Steris STE 1.6 42 68.72 0.15
-3.66 111.88 81.17 Agrium AGU 3.6 17 96.87 0.07 -20.97 18.95 10.23 CrescentPoint CPG 2.5 dd 10.74 -0.22 5.10 391.07 311.95 Equinix EQIX 2.1218 375.64 -2.53
12.58 4.42 2.47 LloydsBanking LYG 4.8 21 3.49 -0.03 37.62 15.74 5.11 STMicroelec STM 1.5179 15.62 0.12
-2.98 150.45 124.02 AirProducts APD 2.7 21 139.53 1.56 -0.39 28.30 9.29 CrestwoodEquity CEQP 9.4 dd 25.45 0.15 s 8.82 272.18 217.14 LockheedMartin LMT 2.7 21 271.98 14.24 10.20 4.83 Ericsson ERIC 6.9 99 6.66 0.02
5.22 101.43 54.51 AlaskaAir ALK 1.3 14 93.36 -0.78 4.04 s 10.73 133.02 102.87 Stryker SYK 1.3 30 132.66 1.16
3.49 102.82 79.38 CrownCastle CCI 4.2 95 89.80 0.18 0.81 48.05 37.25 Loews L 0.5 24 47.21 -0.16 -0.65 8.30 5.43 SumitomoMits SMFG ... 10 7.59 -0.01 8.57 125.40 90.21 ErieIndemnity A ERIE 2.6 30 122.09 -2.64
s 23.39 106.53 60.34 Albemarle ALB 1.2 25 106.21 2.20 2.55 57.49 47.73 CrownHoldings CCK ... 15 53.91 0.13 47.75 23.49 3.64 Exelixis EXEL ... dd 22.03 0.16
17.45 84.00 64.87 Lowe's LOW 1.7 24 83.53 0.31 5.14 85.98 66.66 SunCommunities SUI 3.3298 80.55 0.30
24.54 39.78 20.00 Alcoa AA ... dd 34.97 -0.41 3.86 96.62 51.43 Cullen/Frost CFR 2.4 20 91.64 -0.07 15.82 133.55 96.58 Expedia EXPE 0.9 76 131.20 0.47
2.07 57.16 44.85 Luxottica LUX 1.8 28 54.81 1.05 -3.75 40.57 30.38 SunLifeFinancial SLF 3.5 9 36.97 -0.24
-0.77 120.96 87.10 AlexandriaRealEst ARE 3.0 dd 110.27 0.40 s 13.05 155.51 104.30 Cummins CMI 2.7 19 154.51 0.52 6.50 57.35 46.42 ExpeditorsIntl EXPD 1.4 24 56.40 0.30
5.01 97.64 69.82 LyondellBasell LYB 3.8 10 90.08 -0.27 -5.54 33.79 25.31 SuncorEnergy SU 3.2119 30.88 0.15
20.27 109.87 73.30 Alibaba BABA ... 47 105.61 -0.02 -2.68 42.45 24.70 DCP Midstream DCP 8.4 23 37.35 -0.31 -5.38 80.02 64.45 ExpressScripts ESRX ... 12 65.09 0.26
3.62 173.72 107.01 M&T Bank MTB 1.9 21 162.09 -2.40 -0.75 31.49 22.07 SunocoLogistics SXL 8.7 23 23.84 -0.39
3.71 667.19 478.40 Alleghany Y ... 21 630.67 -4.56 2.43 102.96 84.77 DTE Energy DTE 3.3 21 100.90 0.69 s 2.81 149.11 93.64 F5Networks FFIV ... 27 148.79 0.97
s 17.94 75.62 61.47 Allegion -4.34 30.62 20.14 MGM Resorts MGM ... 14 27.58 0.79 5.21 61.69 35.10 SunTrustBanks STI 1.8 16 57.71 -0.65
ALLE 0.8 32 75.48 0.33 11.34 88.01 70.07 Danaher DHR 0.6 24 86.67 0.27 3.26 39.43 25.98 MPLX MPLX 5.8 dd 35.75 -0.75 s 21.55 140.34 106.31 Facebook FB ... 43 139.84 -0.15
13.03 282.59 184.50 Allergan AGN ... 6 237.38 -2.04 -3.17 38.05 23.25 SynchronyFin SYF 1.5 13 35.12 -0.71
5.42 79.43 59.50 Darden DRI 2.9 22 76.66 1.26 23.55 109.29 70.16 MSCI MSCI 1.2 36 97.33 -0.34 11.68 89.13 74.52 Syngenta SYT 2.5 35 88.28 -0.20 10.41 52.64 37.70 Fastenal FAST 2.5 30 51.87 0.62
7.23 251.19 185.02 AllianceData ADS 0.8 33 245.01 -0.08 5.61 78.77 54.50 DaVita DVA ... 16 67.80 0.06 10.44 105.70 67.74 MSC Industrial MSM 1.8 27 102.04 0.71 -2.30 28.97 16.02 FifthThirdBncp FITB 2.1 14 26.35 -0.30
-4.69 25.12 20.75 AllianceBernstein AB 12.0 10 22.35 -0.30 -4.75 57.07 45.19 Sysco SYY 2.5 29 52.74 0.43
7.19 112.18 74.91 Deere DE 2.2 24 110.45 -0.28 -9.44 94.51 62.48 Macerich MAC 4.4 92 64.15 -0.47 s 41.77 99.97 47.69 TAL Education TAL ... 96 99.45 3.77 10.83 118.30 92.81 Fiserv FISV ... 28 117.79 0.53
4.41 40.99 34.08 AlliantEnergy LNT 3.2 24 39.56 0.43 21.53 83.23 58.04 DelphiAutomotive DLPH 1.4 19 81.85 -0.42 -2.33 85.45 62.82 MacquarieInfr MIC 6.6 43 79.80 16.91 16.98 11.39 Flex FLEX ... 31 16.80 -0.06
8.25 38.17 25.88 AllisonTransm ALSN 1.6 29 36.47 0.01 1.73 9.89 76.77 54.54 TE Connectivity TEL 1.9 13 76.13 0.02
-5.45 52.76 32.60 DeltaAir DAL 1.7 8 46.51 -0.90 -14.72 45.50 28.55 Macy's M 4.9 15 30.54 0.13 21.88 26.65 17.91 Tegna TGNA 2.1 13 26.07 0.03 23.27 38.33 27.95 Fortinet FTNT ...248 37.13 -0.16
s 11.78 83.09 64.36 Allstate ALL 1.8 18 82.85 -0.04 5.14 20.94 11.19 DeutscheBank DB 1.1 dd 19.03 -0.57 4.41 35.98 28.73 Gaming&Leisure GLPI 7.8 21 31.97 0.90
2.67 81.77 63.40 MagellanMid MMP 4.4 22 77.65 -0.73 1.00 34.12 30.31 Telus TU 4.6 16 32.17 0.14
11.20 23.62 14.84 AllyFinancial ALLY 1.5 10 21.15 -0.44 -11.23 50.69 24.57 DevonEnergy DVN 0.6 dd 40.54 -0.18 1.47 47.21 32.76 MagnaIntl MGA 2.5 6 44.04 -0.38 7.98 56.19 38.40 Garmin GRMN 3.9 19 52.36 ...
11.15 76.55 59.48 Altria MO 3.2 10 75.16 -0.14 10.23 28.04 15.32 Ternium TX 3.4 19 26.62 -0.70
11.69 117.84 99.46 Diageo DEO 2.1 23 116.09 1.19 s 16.59 103.90 57.26 Manpower MAN 1.7 16 103.61 0.49 s 37.97 16.52 9.15 TIM Part TSU 1.7 35 16.28 -0.11 s 11.17 22.12 14.66 Gentex GNTX 1.6 18 21.89 -0.18
23.21 13.85 7.22 AlumofChina ACH ... 37 12.58 -0.67 -8.95 62.88 37.96 Dick's DKS 1.4 19 48.35 0.15 1.63 19.52 12.55 ManulifeFin MFC 3.5 13 18.11 -0.25 -3.56 103.10 65.38 GileadSciences GILD 3.0 7 69.06 0.52
12.22 6.34 4.70 Ambev ABEV ... 24 5.51 -0.02 5.44 83.64 71.50 TJX TJX 1.3 23 79.22 ...
4.71 113.21 85.50 DigitalRealty DLR 3.6 47 102.89 -0.52 -10.69 19.28 9.65 MarathonOil MRO 1.3 dd 15.46 -0.09 s 13.36 32.76 22.75 TaiwanSemi TSM 2.9 16 32.59 0.18 18.69 37.20 24.31 Goodyear GT 1.1 8 36.64 -0.17
4.94 55.51 46.29 Ameren AEE 3.2 20 55.05 0.70 -2.47 74.33 48.68 DiscoverFinSvcs DFS 1.7 12 70.31 -0.69 0.87 54.59 32.02 MarathonPetrol MPC 2.8 23 50.79 -0.39 9.96 18.00 14.27 Grifols GRFS 2.2 20 17.67 0.31
11.06 15.95 11.02 AmericaMovil AMX 1.9 91 13.96 0.36 0.71 61.83 26.46 TargaResources TRGP 6.4 dd 56.47 -0.35
7.23 112.89 90.31 Disney DIS 1.4 20 111.76 0.05 8.37 992.00 811.05 Markel MKL ... 31 980.17 -0.45 -24.84 84.14 54.12 Target TGT 4.4 12 54.29 -0.30 -1.72 44.73 30.05 HDSupply HDS ... 42 41.78 0.39
12.36 15.93 10.83 AmericaMovil A AMOV 1.9 90 13.82 0.32 -2.35 96.88 66.50 DollarGeneral DG 1.4 16 72.33 -0.87 s 11.17 75.23 59.11 Marsh&McLennan MMC 1.8 22 75.14 0.46 s 28.87 100.55 76.14 Hasbro HAS 2.3 23 100.25 1.01
-4.84 54.56 43.66 AmCampus ACC 3.5 62 47.36 0.29 5.84 44.79 26.97 TataMotors TTM 0.0 20 36.40 -0.30
0.69 78.97 68.71 DominionRscs D 3.9 22 77.12 0.32 -4.32 243.98 150.75 MartinMarietta MLM 0.8 32 211.95 1.58 5.69 33.76 6.55 TeckRscsB TECK 0.3 12 21.17 -0.45 12.88 183.00 146.23 HenrySchein HSIC ... 28 171.25 0.08
5.57 71.32 57.89 AEP AEP 3.6 53 66.47 0.46 16.07 192.01 116.91 Domino's DPZ 1.0 43 184.83 -0.79 9.61 37.38 29.11 Masco MAS 1.2 24 34.66 0.01 6.16 42.97 32.64 Hologic HOLX ... 36 42.59 0.09
6.98 82.00 57.15 AmericanExpress AXP 1.6 14 79.25 -0.52 -2.25 11.79 6.95 TelecomItalia TI 3.0 16 8.69 0.11
7.22 47.68 30.25 Donaldson DCI 1.6 28 45.12 0.01 s 9.28 113.50 86.65 Mastercard MA 0.8 31 112.83 0.16 -2.61 9.69 5.61 TelecomItalia A TI/A 4.4 13 7.10 0.13 -3.21 102.38 75.71 JBHunt JBHT 1.0 25 93.95 -0.51
8.92 97.00 66.78 AmericanFin AFG 1.3 13 95.98 -0.21 5.33 40.79 29.26 DouglasEmmett DEI 2.4 70 38.51 0.31 9.29 107.84 88.64 McCormick MKC 1.8 28 102.00 0.52 3.86 14.74 8.04 HuntingtonBcshs HBAN 2.3 20 13.73 -0.19
10.53 23.98 15.07 AmerHomes4Rent AMH 0.9 dd 23.19 0.38 21.70 198.89 136.53 Teleflex TFX 0.7 39 196.12 0.85
6.37 82.56 61.64 Dover DOV 2.2 24 79.70 0.36 9.41 108.26 89.14 McCormickVtg MKC/V 1.8 28 101.86 1.16 10.76 15.69 11.28 TelefonicaBras VIV ... 21 14.82 -0.16 14.23 77.46 45.00 IAC/InterActive IAC ... dd 74.01 0.21
-4.43 67.47 48.41 AIG AIG 2.1 dd 62.42 -0.49 11.90 64.50 47.51 DowChemical DOW 2.9 20 64.03 0.17 5.69 131.96 110.33 McDonalds MCD 2.9 24 128.64 29.57 153.94 74.16 IdexxLab IDXX ... 62 151.95 0.33
0.66 23.48 11.43 8.15 Telefonica TEF 6.3 22 11.36 0.13
9.77 118.26 98.87 AmerTowerREIT AMT 2.1 59 116.01 0.92 5.43 98.80 81.05 DrPepperSnap DPS 2.4 21 95.59 -0.82 5.33 199.43 114.53 McKesson MCK 0.8 16 147.93 -0.90 13.95 41.00 28.70 IHSMarkit INFO ... 82 40.35 -0.47
5.31 85.24 67.02 AmerWaterWorks AWK 2.0 29 76.20 0.46 6.21 34.65 24.69 TelekmIndonesia TLK 0.5 17 30.97 0.06
-8.37 54.73 39.65 DrReddy'sLab RDY 0.7 45 41.49 -0.23 23.84 94.40 69.25 MeadJohnson MJN 1.9 30 87.63 -0.12 -8.65 37.21 22.96 Tenaris TS 1.6333 32.62 0.10 23.05 124.27 76.22 IPG Photonics IPGP ... 25 121.46 1.30
-6.64 50.11 40.81 Amerigas APU 8.4 40 44.74 -0.13 s 10.69 81.54 61.12 DuPont DD 1.9 28 81.25 0.64 5.84 76.96 59.36 Mednax MD ... 20 70.55 0.79 -12.02 65.78 45.18 IcahnEnterprises IEP 11.4 dd 52.44 -0.03
18.72 135.20 84.92 Ameriprise AMP 2.3 17 131.71 -2.89 s 21.38 31.07 18.07 Teradyne TER 0.9 dd 30.83 ...
5.44 87.31 72.34 DukeEnergy DUK 4.2 26 81.84 0.22 15.44 89.27 69.35 Medtronic MDT 2.1 29 82.23 0.40 -2.41 93.50 69.49 Tesoro TSO 2.6 14 85.34 0.21 25.29 186.88 119.37 Illumina ILMN ... 51 160.42 0.96
11.95 94.50 68.38 AmerisourceBrgn ABC 1.7 15 87.53 -0.47 -3.54 28.99 21.11 DukeRealty DRE 3.0 29 25.62 0.14 8.54 66.80 51.59 Merck MRK 2.9 46 63.90 -0.28 47.56 153.15 62.63 Incyte INCY ...274 147.96 -0.48
11.75 55.48 43.28 Ametek AME 0.7 25 54.31 0.21 5.47 60.14 41.22 TesoroLogistics TLLP 6.8 28 53.59 -0.92
-0.56 33.40 26.15 ENI E 5.3 dd 32.06 -0.19 -0.98 58.09 36.17 MetLife MET 3.0 87 53.36 -0.66 -7.20 58.16 31.90 TevaPharm TEVA 4.0210 33.64 -0.29 -2.76 38.45 29.50 Intel INTC 2.9 17 35.27 0.13
6.16 71.98 54.94 Amphenol APH 0.9 27 71.34 -0.10 -4.62 109.37 69.66 EOG Rscs EOG 0.7 dd 96.43 0.60 15.12 489.92 331.34 MettlerToledo MTD ... 34 481.83 1.67 -0.44 41.40 31.96 InteractiveBrkrs IBKR 1.1 29 36.35 -0.43
-9.29 73.33 43.52 AnadarkoPetrol APC 0.3 dd 63.25 -0.15 -1.69 50.93 34.00 Textron TXT 0.2 14 47.74 0.09
-11.59 80.61 56.46 EQT EQT 0.2 dd 57.82 0.27 -11.98 58.63 34.92 MichaelKors KORS ... 9 37.83 0.09 11.90 161.66 137.40 ThermoFisherSci TMO 0.4 31 157.89 -0.13 8.12 128.45 99.20 Intuit INTU 1.1 41 123.92 -0.43
5.98 136.08 98.28 AB InBev BUD 3.0159 111.75 0.90 1.17 82.99 69.15 EQT Midstream EQM 4.4 15 77.58 -0.36 3.94 110.01 85.04 MidAmApt MAA 3.4 39 101.78 0.56 s 18.24 752.20 562.60 IntuitiveSurgical ISRG ... 40 749.83 6.30
10.33 11.29 9.83 AnnalyCap NLY 10.9 9 11.00 0.05 -0.73 45.68 38.23 ThomsonReuters TRI 3.2 22 43.46 -0.33
5.27 82.10 62.70 EastmanChem EMN 2.6 14 79.17 0.28 8.60 7.01 4.16 MitsubishiUFJ MTU ... 11 6.69 -0.03 s 7.72 192.36 163.05 3M MMM 2.4 24 192.36 2.05 24.06 32.47 19.51 JD.com JD ... dd 31.56 0.02
11.66 35.74 20.52 AnteroMidstream AM 3.2 28 34.48 -0.24 9.18 74.35 54.30 Eaton ETN 2.1 17 73.25 -0.10 5.29 3.87 2.69 MizuhoFin MFG ... 8 3.78 0.02 7.12 95.64 79.00 JackHenry JKHY 1.3 29 95.10 0.35
-0.72 30.66 23.07 AnteroResources AR ... dd 23.48 -0.15 s 19.36 94.00 56.98 Tiffany TIF 1.9 26 92.42 2.44
9.55 47.83 31.78 EatonVance EV 2.4 22 45.88 -0.95 16.90 10.91 7.09 MobileTeleSys MBT 3.5 17 10.65 0.44 2.10 99.29 68.97 TimeWarner TWX 1.6 20 98.56 0.10 23.61 160.00 95.80 JazzPharma JAZZ ... 21 134.77 -1.08
17.04 170.79 114.85 Anthem ANTM 1.5 18 168.27 -0.15 6.99 126.17 107.74 Ecolab ECL 1.2 30 125.41 0.59 58.74 61.51 33.69 Mobileye MBLY ...134 60.51 -0.23 -10.08 23.15 14.76 JetBlue JBLU ... 9 20.16 0.14
s 6.62 119.88 99.67 Aon AON 1.1 23 118.91 -0.33 18.29 37.27 25.29 Toll Bros TOL 0.9 17 36.67 -0.41
-1.33 10.29 7.65 Ecopetrol EC ... 35 8.93 -0.03 15.28 233.70 175.52 MohawkIndustries MHK ... 18 230.20 -1.20 6.60 79.53 52.46 Torchmark TMK 0.8 17 78.63 -0.08 s 20.35 95.27 66.88 KLA Tencor KLAC 2.3 17 94.69 0.49
-19.30 69.00 46.15 Apache APA 2.0 dd 51.22 0.14 10.57 80.61 67.44 EdisonInt EIX 2.7 20 79.60 0.42 1.10 112.19 89.40 MolsonCoors B TAP 1.7 11 98.38 0.15 5.34 97.77 75.86 KraftHeinz KHC 2.6 33 91.98 -0.79
-2.73 47.91 39.14 ApartmtInv AIV 3.3288 44.21 0.08 10.13 62.49 40.43 Toro TTC 1.1 29 61.62 0.42
0.75 121.75 81.12 EdwardsLife EW ... 36 94.40 1.45 7.18 116.04 84.79 Monsanto MON 1.9 31 112.76 0.25 0.32 54.44 40.98 TorontoDomBk TD 3.7 10 49.50 -0.21 -1.11 36.35 29.37 LKQ LKQ ... 20 30.31 -0.10
18.75 24.00 14.25 ApolloGlobalMgmt APO 7.8 11 22.99 -0.19 8.70 64.36 48.45 EmersonElectric EMR 3.2 26 60.60 0.37 18.74 114.03 87.30 Moody's MCO 1.4 87 111.94 -1.60 s 19.63 127.44 72.00 LamResearch LRCX 1.4 23 126.48 0.51
6.76 35.83 28.03 AquaAmerica WTR 2.4 24 32.07 0.88 -1.98 52.04 43.55 Total TOT 5.2 20 49.96 0.12
-30.49 26.36 16.86 EnbridgeEnPtrs EEP 13.2 dd 17.71 -0.05 6.56 47.33 23.11 MorganStanley MS 1.8 15 45.02 -1.31 8.91 56.54 44.71 TotalSystem TSS 0.7 31 53.40 -0.52 15.56 79.09 58.68 LamarAdvertising LAMR 4.3 25 77.70 1.06
5.01 38.30 31.38 Aramark ARMK 1.1 29 37.51 0.25 -2.21 45.77 36.55 Enbridge ENB ... 21 41.19 -0.52 -0.55 34.36 22.77 Mosaic MOS 3.8 35 29.17 0.18 16.55 87.47 54.53 LibertyBroadbandA LBRDA ... 13 84.45 0.18
23.70 9.37 3.88 ArcelorMittal MT 2.2 19 9.03 -0.09 -4.26 123.18 97.80 ToyotaMotor TM ... 10 112.21 -1.03
-8.94 13.85 5.36 Encana ECA 0.6 dd 10.69 -0.11 2.21 87.55 62.76 MotorolaSolutions MSI 2.2 26 84.72 -0.43 1.64 49.77 36.76 TransCanada TRP 4.2164 45.89 -0.22 15.74 88.12 54.45 LibertyBroadbandC LBRDK ... 14 85.73 0.30
-2.04 47.88 34.55 ArcherDaniels ADM 2.9 21 44.72 -0.13 0.48 93.31 62.78 Endurance ENH 1.6 19 92.84 -0.04 9.79 49.90 25.20 NCR NCR ... 27 44.53 0.14 22.13 37.69 26.16 LibertyGlobal A LBTYA ... 24 37.36 0.23
48.33 30.69 16.75 Arconic ARNC 0.9 ... 27.50 0.18 -3.58 294.38 214.65 TransDigm TDG ... 29 240.05 2.89
21.80 10.08 7.02 EnelAmericas ENIA 1.5 17 10.00 0.04 s 47.31 18.56 9.84 NRG Energy NRG 0.7 dd 18.06 0.17 22.66 38.46 25.93 TransUnion TRU ... 58 37.94 0.19 23.33 37.00 25.86 LibertyGlobal C LBTYK ... 24 36.63 0.13
32.38 128.93 57.89 AristaNetworks ANET ... 51 128.10 0.96 10.03 29.52 18.35 EnelGenChile EOCC 3.1 8 21.39 -0.13 6.29 28.43 21.96 NTTDoCoMo DCM ... 15 24.18 0.06 3.32 42.63 19.10 LibertyLiLAC A LILA ... 15 22.69 ...
5.68 75.88 58.09 ArrowElec ARW ... 13 75.35 0.26 0.59 125.49 103.45 Travelers TRV 2.2 12 123.14 0.40
-1.81 20.05 6.37 EnergyTrfrEquity ETE 6.0 20 18.96 -0.03 23.37 2081.96 1478.04 NVR NVR ... 20 2059.05 0.71 24.93 10.87 6.35 TurkcellIletism TKC 19.9 15 8.62 0.13 9.83 44.95 19.33 LibertyLiLAC C LILAK ... 15 23.25 -0.07
13.79 125.00 105.50 AshlandGlobal ASH 1.3 dd 124.36 1.31 -0.56 43.50 27.65 EnergyTrfrPtrs ETP 11.9 dd 35.61 -0.49 5.50 74.97 56.50 NationalGrid NGG 5.1 16 61.54 0.78 -4.69 26.98 17.62 LibertyQVC B QVCB ... 9 19.30 -1.50
6.58 101.32 76.33 Assurant AIZ 2.1 11 98.97 0.38 -0.31 3.80 2.44 TurquoiseHill TRQ ... 18 3.22 -0.07
-14.77 10.33 3.40 Enerplus ERF 1.1 6 8.08 -0.16 4.99 43.63 26.86 NatlOilwell NOV 0.5 dd 39.31 0.16 -7.48 25.25 13.72 Twitter TWTR ... dd 15.08 -0.11 0.10 27.25 17.24 LibertyQVC A QVCA ... 9 20.00 -0.07
12.34 35.04 25.55 AstraZeneca AZN ... 24 30.69 0.17 -4.40 19.89 10.51 EnLinkMidPtrs ENLK 8.9 dd 17.61 -0.27 0.36 53.59 39.86 NatlRetailProp NNN 4.1 37 44.36 0.54 20.56 45.17 34.26 LibertyVenturesA LVNTA ... 14 44.45 0.26
8.61 55.00 43.25 Athene ATH ... 6 52.12 -1.60 9.51 175.77 120.33 TylerTech TYL ... 68 156.35 -0.02
2.64 82.08 66.71 Entergy ETR 4.6 dd 75.41 0.46 s 30.88 55.68 33.47 NewOrientalEduc EDU ... 37 55.10 0.90 0.26 77.05 55.72 TysonFoods TSN 1.5 12 61.84 -0.16 11.66 33.21 13.13 Liber