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

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

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. * * * * * * * * Saturday/Sunday, March 18 - 19, 2017 | A3

U.S. NEWS

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%
LARGEST GROWTH
Sioux Falls, S.D. 63%
60
Columbia, Mo. 55

50 Fargo, N.D.-Minn. 52

40

30 U.S. 32

20

GREG LATZA FOR THE WALL STREET JOURNAL


10

0
LARGEST DECREASE
Danville, Ill. -10
–10 Youngstown-Warren-
Boardman, Ohio-Pa. -10
Weirton-Steubenville
–20
W. Va. -Ohio -15
1990 ’95 2000 ’05 ’10 ’15
Source: Bureau of Economic Analysis THE WALL STREET JOURNAL. Construction in Sioux Falls, S.D., this month. The city’s unemployment rate, at 2.8%, is among the lowest in the U.S.

Sioux Falls Prospers as Other Cities Slump


Financial firms, health house in the middle of provider, named Avera, are the
cornfields. biggest employers in the city,
care help South Dakota For decades, Sioux Falls was with some 16,000 workers com-
metro area reduce a typical regional farm city, bined. Sanford Health has also
with a still-operational slaugh- branched into medical research.
reliance on agriculture terhouse, grain elevators and a The nonprofit’s medical-re-
livestock auction. In 1980, its search team is doing ground-
BY SHIBANI MAHTANI population was about 81,000. breaking work in rare chil-
Then, in 1981, Citibank relo- dren’s diseases like Battens
SIOUX FALLS, S.D.—When cated credit-card operations to disease, a neurodegenerative
Ruth Sturm told East Coast Sioux Falls to take advantage of disorder, and Type 1 diabetes.
friends she was moving here, a relatively new state law that Now, the growth of health
many had to ask where it was. eliminated caps on interest care and the strong financial
“I got a lot of, ‘Do people live rates and fees, even if a bank’s sector have spurred other in-
in teepees?’ ” said the 26-year- headquarters was elsewhere dustries, Mr. Swenson said.
old digital strategist, who is and the account holders lived When Lawrence & Schiller,
among the 20,000 new people to out of state. Soon, other banks, now the state’s biggest ad
settle in this once-sleepy city of such as Wells Fargo, followed. agency, set up shop in Sioux
178,500 in the past five years. “Citibank’s arrival was a Falls in 1976, it was one of two
Despite the sometimes complete breakthrough,” said players, said Chief Executive
harsh weather, she now boasts Evan Nolte, former president Scott Lawrence. Now, there are
about her new home, which in- of the Sioux Falls Area Cham- at least two dozen.
cludes four breweries within ber of Commerce. “It exposed The growth has come with
walking distance and a thriv- us to the reality that we could downsides. Construction com-
ing theater and music scene. move away from agriculture The Sanford Research Lab in Sioux Falls, where work includes investigating rare children’s diseases. panies say finding workers is
“I legitimately fell in love,” and become a financial hub.” getting tougher and homes can’t
said Ms. Sturm, who grew up Dave Swenson, an economist nancial industry has “taken on nation, at 2.8%, and Sioux Falls Falls Mayor Mike Huether. be built fast enough to meet de-
in the suburbs of Washington, at Iowa State University, said a life of its own,” he added. helped make South Dakota the In 2007, the city received the mand. Residents say the popula-
D.C. “I have never seen a place Sioux Falls is a bit of a “freak” The city’s population jumped fastest-growing state economy first $400 million of what would tion of youngsters is rising
where people were honestly as that was able to grow based on 63% over the past 15 years, the in the third quarter last year, grow to $1 billion in donations to faster than the city can handle,
excited about the growth and the state’s unique law loosen- fastest growth of any metro area according to the Bureau of the regional health-care system leading to crowded day-care fa-
change in their city.” ing financial restrictions. of more than 50,000 people be- Economic Analysis. from billionaire T. Denny San- cilities and elementary schools.
Many areas of the Midwest “What was done at the time tween Ohio and North Dakota. A Growth has come without ford, a longtime South Dakota Sioux Falls economic devel-
have struggled with population was considered heresy, and it building boom downtown the traditional economic driv- resident who made his fortune opers say the only way to sus-
loss as manufacturing has de- paid off well. Much like the pushed the value of construction ers of many smaller cities, such at the helm of First Premier tain the growth is to embrace
clined and farms have needed heresy of gaming and easy di- permits to $701.8 million last as the oil boom playing out in Bank, which issued high-interest immigration and attract diverse
less labor. But Sioux Falls is on vorces in Nevada,” said Mr. year, up from $282.9 million in North Dakota, a large univer- credit cards to customers with residents, sometimes a tough
a tear after undergoing an un- Swenson. While other states 2010, city records show. sity or a state legislature. poor credit histories. sell in a city in the middle of a
likely transformation into a fi- have also loosened caps on in- The city’s unemployment “We’re a boomtown, and we The rechristened Sanford heavily conservative state where
nancial and health-care power- terest rates, the Sioux Falls fi- rate is among the lowest in the don’t have any oil,” said Sioux Health, together with another about 82% of people are white.

Gorsuch Criticizes Agency Powers As Scandal Unfolds,


BY BRENT KENDALL

WASHINGTON—Supreme
Marines Fight Online
Court nominee Neil Gorsuch, BY BEN KESLING posing these creeps,” he said.
whose confirmation hearing Other social media users
begins Monday, has been un- WASHINGTON—A small have begun to follow his exam-
usually forceful with his con- group of Marines that contends ple by posting names and pho-
cerns that judges allow gov- the official military response to tos of Marines and veterans sus-
ernment agencies too much a nude-photo and cyber-harass- pected of involvement in the
power to make policy, a red ment scandal has been too slow offending online sites.
flag for liberals who worry is pursuing a vigilante-like Gen. Neller was criticized by
that such views could weaken name-and-shame campaign in senators at a hearing last week
JIM WATSON/AGENCE FRANCE-PRESSE/GETTY IMAGES

environmental, labor and hopes of forcing swifter action. for his handling of the situation.
health regulations. Both active duty and veteran But those familiar with the pro-
But in a twist, especially Marines said they have for days cess said Gen. Neller, while an-
for a nominee of President been providing names to inves- gry about the actions of some
Donald Trump, some of Judge tigators, or publishing them on Marines, also is constrained by
Gorsuch’s best-known cases the internet, identifying service military law.
criticizing the power of the members allegedly associated After victims and their allies
administrative state have with websites that have posted bypassed the normal military
come in defense of illegal im- nude photos of female Marines chain of command, the Marine
migrants, a sign that his ap- and harassed other service Corps disavowed the effort.
proach could cut in unpredict- members. “These actions are an indica-
able ideological directions. “Marine leadership hasn’t tion that many Marines, former
The way a government done much of anything the last Marines and individuals who re-
panel treated one illegal immi- six years of this,” Marine vet- spect our organization are in-
grant left such an impression Neil Gorsuch, center, has criticized federal agency power in cases that defended illegal immigrants. eran Shawn Wylde said in an censed by the recent reports of
on Judge Gorsuch that he dis- email to The Wall Street Journal. online misconduct and are mak-
cussed it at length in a speech The case stemmed from a tions inconsistent with those previously entered the U.S. il- Marine Commandant Gen. ing individual efforts to acceler-
in April last year. lawsuit by environmentalists interpretations,” he wrote of legally and were again in the Robert Neller said he first ate justice,” said Maj. Clark Car-
“Just describing what hap- challenging what they saw as the Chevron effect in a second country without permission. learned of widespread sharing penter, a spokesman for the
pened here might be enough industry-friendly pollution immigration case last year. The BIA effectively over- of nude photographs by Marines Marines. “However, we must op-
to make James Madison’s rules from Environmental Pro- In both immigration cases ruled the courts, saying such in January, and then moved to erate within the boundaries of
head spin,” the judge said at tection Agency. The agency at Judge Gorsuch took aim at the immigrants needed to leave shut down the main site in- the law.”
Case Western Reserve Univer- the time was run by Judge BIA for what he saw as play- the U.S. for 10 years before volved and launch an investiga- Mr. Wylde is himself associ-
sity School of Law. He retold Gorsuch’s mother, Anne Gor- ing bait-and-switch with ille- being eligible for resi- tion. Since then the Marine ated with a Facebook site and
the tale of Mexican immigrant such Burford. The EPA won. gal immigrants trying to navi- dency. The BIA then sought to Corps and other branches have webpage that has sometimes
Alfonzo De Niz Robles, who is The Chevron precedent ini- apply that interpretation ret- broadened the investigation. crude content.
married to a U.S. citizen, has tially benefitted Republican roactively. Mr. Wylde, who has a Face- He also has a checkered
four U.S. citizen children, and presidents seeking to lighten Judge Gorsuch, joined by book page with tens of thou- past in the Marines, acknowl-
spent about a decade trying to regulation, but has since
His concerns about two other judges, in both sands of followers, has been edging he defrauded the De-
obtain permission to stay in boosted Obama administration federal agencies stem cases barred that effort. In posting names of people alleg- partment of Veterans Affairs
the U.S., only to run up efforts to use longtime laws to one ruling he explicitly called edly affiliated with controversial of some $100,000. The Justice
against a new policy interpre- support new regulations on is-
from a 33-year-old for reconsideration of the social-media sites, including the Department said he pleaded
tation from the Board of Im- sues like climate change. Supreme Court case. Chevron precedent. group “Marines United,” attract- guilty in 2013 and was sen-
migration Appeals. To Judge Gorusch, who sits His views on the issue ing attention from investigators. tenced to four months in
Judge Gorsuch’s concerns on the Denver-based 10th Cir- make him much the opposite Mr. Wylde said he is acting prison in 2014, something his
about agency power stem cuit Court of Appeals, Chevron of Judge Merrick Garland, now because of a March 10 adversaries on social media
from a pivotal 33-year-old Su- creates problems because it gate seemingly conflicting President Barack Obama’s statement of condemnation highlight in trying to discredit
preme Court decision, Chev- can give agencies room to en- provisions on seeking U.S. res- nominee for the current Su- about the cyber harassment by his efforts.
ron v. Natural Resources De- act policies better left to Con- idency. preme Court vacancy who was Defense Secretary Jim Mattis, a He agreed to pay back the
fense Council. The case gress, without a robust review Some courts had inter- never considered by the Sen- retired Marine general. money, documents show, and
established that courts should by judges. preted the conflict in a way ate. Judge Garland is consid- “Once General Mattis came said his current campaign is a
defer to the judgment of fed- “Courts are not fulfilling that was more favorable to ered particularly deferential out the other day against this form of atonement. “I’m partly
eral agencies when interpret- their duty to interpret the law immigrants, letting them seek to agencies under the Chevron online harassment we took it as doing this as a way to make
ing ambiguous laws. and declare invalid agency ac- legal status even if they had standard. a signal to move forward in ex- 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. * * * * * * * Saturday/Sunday, March 18 - 19, 2017 | A5

U.S. NEWS

Trump Stands By Ruling


On Revised
Wiretap Claim; Travel Ban
No U.K. Apology Is Appealed
BY CAROL E. LEE agency was asked to conduct BY BRENT KENDALL
AND PETER NICHOLAS surveillance on Mr. Trump is
“utterly ridiculous.” WASHINGTON—The Justice

IAN LOVETT/THE WALL STREET JOURNAL


WASHINGTON—President A spokesman for U.K. Prime Department formally appealed
Donald Trump stuck Friday to Minister Theresa May said Fri- a Maryland judge’s decision
his unsubstantiated claim that day that the White House had this week that blocked the im-
his predecessor wiretapped assured U.K. officials that it plementation of President
Trump Tower and he brushed won’t repeat the allegations. Donald Trump’s revised execu-
off tensions that his adminis- “We’ve made clear to the tive order barring U.S. entry
tration ignited with the United administration that these for people from six Muslim-
Kingdom by citing a media re- claims are ridiculous and they majority countries.
port alleging British intelli- should be ignored, and we’ve The appeal on Friday kicks
gence was involved. received assurances that these off a new phase in litigation
Mr. Trump, asked about the allegations will not be re- Esma Arslan, a 21-year-old who moved to Hawaii at 9, reads a Quran at the mosque in Honolulu. over whether Mr. Trump’s lat-
citation in a news conference peated,” the prime minister’s est travel restrictions improp-
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
Hawaii’s Muslims Voice Fears erly target people based on
their religion. The president
says the restrictions are neces-
sary to protect the country
Darroch, on Thursday at a St. BY IAN LOVETT by religious animus toward In February, a middle- from terrorism.
Patrick’s Day event and gave Muslims. On Wednesday night, school girl in a hijab, or head Judges in Hawaii and Mary-
‘We said nothing. All an explanation similar to the HONOLULU—With only a few a federal judge agreed and put scarf, was followed off a bus land, in rulings issued only
we did was quote a one Mr. Trump offered on Fri- thousand Muslim residents, Ha- the order on hold. by a man shouting profanities hours apart this week, said Mr.
day. The official said Mr. waii may seem an unlikely place Mr. Trump, who has said at her; her family is now also Trump appeared to have been
certain very talented Spicer didn’t apologize or to challenge—and halt—Presi- the ban is necessary for na- considering leaving Hawaii. motivated by improper reli-
legal mind.’ promise not to repeat the al- dent Donald Trump’s travel ban. tional security reasons, has A Honolulu Police Depart- gious animus. Among other
legation. Only a half-dozen of refugees said he would appeal the Ha- ment spokeswoman said the in- things, the judges cited past
Another White House offi- are settled here each year. The waii ruling. The administration cidents were being investigated statements in which Mr.
cial said U.K. national security small Muslim community has Friday appealed a similar rul- as possible hate crimes. But Trump as a presidential candi-
ministration, at least we have adviser Mark Lyall Grant ex- quietly thrived, away from the ing by a Maryland judge. Muslims across the island said date voiced support for a
something in common, per- pressed his concerns to Mr. conflicts on the mainland. They For Mr. Elshikh, who is of small expressions of hate—from “Muslim ban.”
haps.” Trump’s national security ad- built a mosque in the hills over- Egyptian descent, the effects of drivers giving women in hijab The rulings weren’t final
The comment was a refer- viser, Lt. Gen. H.R. McMaster looking Waikiki, celebrated the the travel ban were personal. the middle finger at red lights decisions on the legality of the
ence to U.S. surveillance of Ms. in a telephone conversation end of Ramadan on the beach, His mother-in-law is in Syria, to men yelling at them to go revised executive order.
Merkel’s phone, which was dis- Thursday night. That official and enjoyed good relationships one of the countries targeted by back to their country—have re- Several courts blocked the
closed in 2013. said Gen. McMaster also told with neighbors in this multicul- the ban. “This is a great day for cently become commonplace. president’s first travel ban.
Mr. Trump also dismissed Mr. Grant that Mr. Spicer was tural state. Anti-Islamic threats democracy, religious and human Over 20 years in Hawaii, Mr. Rather than continue to fight
the U.K.’s fury over White pointing to public reports, not or hate speech was virtually un- rights,” Mr. Elshikh, a named Ouansafi, a Moroccan who has those cases, Mr. Trump re-
House press secretary Sean endorsing them heard of, Muslims here say. plaintiff in the lawsuit, said in a been in the U.S. for three de- wrote the executive order,
Spicer citing on Thursday a Mr. Spicer told reporters af- But that has changed in re- text message after the judge’s cades, has seen the Muslim making several concessions
Fox News commentator’s re- ter news conference that the cent weeks, as Hawaii’s Muslim order was issued. community here grow from less along the way. This week’s
port alleging that the British White House has no regrets community has found itself at Even Muslims here who don’t than 1,000 people to roughly court decisions found those
intelligence agency GCHQ was about citing the Fox News the center of the nationwide have relatives overseas say 5,000 from over 40 countries. concessions were insufficient
involved in wiretapping Trump commentary. battle over immigration and Is- that—after decades of feeling Before Mr. Elshikh arrived in because the problem of reli-
Tower, the New York building In response to a request for lam’s place in American society. safe in Hawaii and largely avoid- Honolulu in 2002, Mr. gious discrimination remained.
where the president lived and comment, Fox News referred to Anti-Muslim incidents have ing the political fray—they were Ouansafi—who is executive di- The government’s appeal
worked before moving to the an on-air statement made Fri- jumped since late last year, driven to action because they rector of the Hawaii Public will go to the Fourth U.S. Cir-
White House. day afternoon by anchor Shep- Muslims here say, and mem- have become targets in the Housing Authority—spoke at cuit Court of Appeals in Rich-
“We said nothing. All we did ard Smith, which read: “Fox bers of the community have months since the election. Friday prayers because there mond, Va.
was quote a certain very tal- News cannot confirm Judge been separated from their A Muslim cabdriver was at- was no full-time imam on the The Justice Department
ented legal mind who was the Napolitano’s commentary. Fox families by the travel ban. tacked by three men who island. Now there is a mosque didn’t respond to a request to
one responsible for saying that News knows of no evidence of The state of Hawaii—along called him “Osama” in Waikiki on all four of the most popu- comment.
on television,” Mr. Trump said. any kind that the now-presi- with the imam at the mosque late last year, said Hakim lated islands, Mr. Ouansafi The government hasn’t yet
In a statement, GCHQ, which dent of the United States was here, Ismail Elshikh—sued to Ouansafi, president of the Mus- said, and Friday prayers in Ho- filed appeals papers in the Ha-
rarely comments on media re- surveilled at any time, in any stop the revised ban from taking lim Association of Hawaii; the nolulu draw about 400 people, waii case, though it is expected
ports, said any claim that the way, full stop.” effect, saying it was motivated driver has since left the state. including tourists. to do so at some point.

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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 didn’t respond to requests for
South Korea against missile confirmation, and Danish pros-
threats from the North. ecutors said they haven’t been
Mr. Trump chimed in hours informed of an appeal.
later, saying Beijing hasn’t Since the scandal erupted
done enough to address the last year, prosecutors have
threat from Pyongyang, which identified the 20-year-old Ms.
is closing in on the ability to Rex Tillerson, center, and, to his right, U.S. Forces Korea commander Gen. Vincent Brooks, at the Korean Demilitarized Zone on Friday. Chung as a beneficiary of Sam-
mount a nuclear warhead on a sung funds given to entities
long-range ballistic missile. the longstanding one-China with the process. were his most direct state- proach puts the U.S. on a colli- tied to her mother, Choi Soon-
“North Korea is behaving policy, in which Washington North Korea has proceeded ments on North Korea since he sion course with South Korea, sil, a confidante of impeached
very badly. They have been agrees not to extend diplo- with missile tests since the inau- was sworn in last month. where an election on May 9 is President Park Geun-hye.
‘playing’ the United States for matic recognition to the gov- guration, including one staged Mr. Tillerson also took aim at expected to bring in a leader South Korean prosecutors
years. China has done little to ernment of Taiwan. Mr. Trump while the U.S. and Japanese what he described as President who will pursue more engage- allege Ms. Choi colluded with
help!” Mr. Trump tweeted. later committed to “one leaders were meeting in Febru- Barack Obama’s inaction on ment with Pyongyang. Ms. Park to extract donations
Mr. Tillerson was expected China” in a phone call with ary and a burst of midrange mis- North Korea. “Let me be very “You’re going to get a lib- from Korean conglomerates in
to arrive in Beijing on Satur- Mr. Xi in February. siles aimed at Japan this month. clear: The policy of strategic pa- eral president in South Korea exchange for political favors.
day for meetings over the Other issues of contention in- Plans for back-channel talks tience has ended,” he said. who agrees with the Chinese Ms. Choi and Ms. Park have
weekend with Chinese Presi- clude China’s trade and currency in New York between govern- During last year’s presiden- that a hard-line approach denied wrongdoing. Samsung
dent Xi Jinping as well as policy and its territorial ambi- ment representatives from tial campaign, Mr. Trump sug- doesn’t work,” said John De- admitted providing funds to
China’s foreign minister. tions in the South China Sea. North Korea and former U.S. gested he would consider a lury, an expert in Chinese and entities linked to Ms. Choi but
A spokeswoman for China’s But since Mr. Trump took officials were scuttled last wide range of policies on North North Korean affairs at Yonsei denied seeking favors in return.
Foreign Ministry on Friday office in January, the most month after the State Depart- Korea, at one point calling University in Seoul. According to a report
pointed to China’s efforts to pressing matter has been ment withdrew visa approvals leader Kim Jong Un a madman Mr. Tillerson, whose China from prosecutors this month,
promote dialogue between North Korea. Mr. Trump has for Pyongyang’s top envoy on who had to be stopped, and at visit comes at the end of a funds from Samsung were
Pyongyang, Washington and launched a White House policy U.S. relations, according to peo- another suggesting that the three-nation trip through East used to purchase a horse
Seoul, and declined to com- review—which is continuing— ple familiar with the matter. two men talk over hamburgers. Asia, said he plans to raise named Vladimir for Ms.
ment on the secretary of state’s that includes the possibility of Tougher sanctions remain an Mr. Tillerson’s statements U.S. concerns about Beijing’s Chung, who won an eques-
remarks ahead of his arrival. military force or regime option in dealing with Pyong- dimmed the prospect that the opposition to the South Ko- trian-dressage gold medal at
U.S. relations with China change to blunt the country’s yang, Mr. Tillerson said Friday. new administration could pur- rean missile-defense system, the 2014 Asian Games.
have been rocky since Mr. nuclear-weapons threat, ac- The former oil executive’s re- sue a diplomatic strategy. the Terminal High-Altitude —Eun-Young Jeong
Trump said he would review cording to people familiar marks to reporters in Seoul An emerging hard-line ap- 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 ter after hearing the alert. Au-
AND ALASTAIR GALE CHINA RUSSIA thorities chose strong build-
Tongchang-ri ings as evacuation centers that
OGA, Japan—Sirens blared (site of four missile would shield residents from
a warning against incoming launches on March 7) explosions and debris caused
North Korean missiles as lo- Oga by missiles landing nearby in
The Perfect Pear cals rushed to a community
center here, Japan’s first drill
NORTH
KOREA Sea of
the event of a real attack.
Some residents expressed
7.08-Carat Diamond to simulate an evacuation in
light of a rising threat. SOUTH
Japan
( E a s t S ea )
skepticism about any threat
from North Korean missiles. But
Tokyo
“Missiles appear to have KOREA several said local concerns had
Exquisite stone. Dazzling size. Timeless perfection. J A PA N
been launched!” a loudspeaker risen after a North Korean mis-
The spellbinding 7.08-carat pear-shaped diamond voice warned on Friday. sile landed about 150 miles from
in this classic platinum necklace captivates with This coastal northwestern 100 miles the city in August, followed by
its spectacular size, color, and clarity. Certified by city was one of the closest P a c i fi c O ce a n three in September and four
100 km
points in Japan to the splash- this month in the same region.
the Gemological Institute of America, the rare gem
down at sea of a series of mis- THE WALL STREET JOURNAL. After the latest launch,
showcases a near colorless G grading with VS2 clarity, siles fired by North Korea North Korea said it was training
meaning it is virtually unmarred to the naked eye. since last year. Japanese politicians to develop for an attack on U.S. bases in
Its excellent polish and symmetry further distinguish The exercise didn’t rise to the ability to strike Pyong- Japan. A U.S. air base is situ-
the level of the famed “duck yang’s missile sites if an attack ated around 120 miles north-
the sensational stone. 16” length. #30-5113
and cover” drills that a genera- on Japan appears imminent. east of Oga. A Japanese military
tion of Cold War-era American On Friday, Japan also radar station sits on a hill close
schoolchildren withstood to launched an intelligence-gath- to where the drill took place.
ostensibly protect themselves ering satellite to enhance “The drill is good to get us
against the threat of a Soviet monitoring of North Korean psychologically prepared,”
nuclear attack. By and large, missile sites. Tokyo revealed said Susumu Takano, the 77-
despite the standoff with this week that fishing vessels year-old head of the local
North Korea’s advancing mis- weren’t warned about a March neighborhood association.
sile and nuclear programs, 7 missile launch by North Ko- “But I wonder if reports of
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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


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

JONATHAN ERNST/REUTERS
In dispute is the wording of Mr. Mnuchin, representing stress the close relations be-
a joint statement that the fi- the Trump administration at tween the U.S. and Germany.
nance ministers are scheduled his first G-20 meeting, said “There are a number of is-
to adopt on Saturday and is the administration wants to sues where we will continue to
meant to define the nature of avoid trade wars too, But cooperate very closely,” Ms.
their trade relationships. Washington also seeks to re- Merkel said.
While the so-called communi- balance cross-border flows of She said she would be happy
qué is a symbolic, nonbinding goods, services and capital. if negotiations for a free-trade Chancellor Angela Merkel and President Donald Trump at a news conference in the White House Friday.
act, it has come to embody the Japan, a longtime ally of agreement between the U.S.
balance of power in the global Washington whose trade ties and the EU were resumed. The proposed EU-U.S. trade ers. They sat next to each Trump has been critical of the
tug of war over economic pol- with China have grown expo- “It is, of course, more than deal, the Transatlantic Trade other in separate chairs. Ms. EU and NATO. German offi-
icy. Delegations have argued nentially, was a rare delegate fair that both sides that make and Investment Partnership, Merkel was leaning toward Mr. cials also have been concerned
fiercely over the carefully cali- to back the U.S. position. agreements want to benefit has long been supported by Trump. But he didn’t look at about Mr. Trump’s approach
brated text in the past, but Some officials said they from them,” Ms. Merkel said Ms. Merkel. The talks weren’t her and sat with his hands be- to trade, which favors unilat-
trade has rarely been a focus wouldn’t rule out a postpone- at the news conference. “In finished when former Presi- tween his knees. eral agreements rather than
of those debates. ment of an agreement on this spirit, I would be happy if dent Barack Obama left office. At one point, Ms. Merkel those with multiple nations.
Europe, China and Brazil trade language until G-20 we resumed the negotiations Mr. Trump, who pulled the asked the president if he Ms. Merkel, whose govern-
want the G-20 to preserve cur- leaders meet in July. between the European Union U.S. out of Mr. Obama’s 12-na- wanted to shake hands, as is ment has allowed hundreds of
rent language calling for a re- The Trump administration and the United States of tion Pacific trade agreement, customary in these instances. thousands of refugees and mi-
jection of protectionism “in all argues that the trade surpluses America.” has attacked past U.S. trade Mr. Trump didn’t respond. grants to enter Germany, also
its forms.” They see that for- of China, Germany, South Ko- She noted, however, that policy, and he hasn’t resumed Following the news confer- drew contrasts to Mr. Trump’s
mulation as a way to hem in rea and other countries repre- only the EU—rather than indi- talks with the EU on the TTIP. ence, the two leaders did policy on immigration and for-
the economic nationalism ad- sent an unfair trading system vidual member states such as After their Oval Office shake hands. eign aid.
vocated by Mr. Trump’s that isn’t adequately moni- Germany—was able to negoti- meeting, there appeared to be Mr. Trump and Ms. Merkel —Peter Nicholas
“America First” platform. The tored by the WTO or the IMF. ate trade agreements. 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 “How might politics affect
BY THOMAS GROVE your portfolio in 2017?”
Arms Race
MOSCOW—When Russian Russia is the world’s second-largest arms exporter but is still recovering
officials struck a deal with from a sharp drop in sales after its 2014 annexation of Crimea.
the United Arab Emirates Our annual Capital Markets Forecast explores our
last month to develop a cut- Total arms exports outlook for economies and markets, and provides an
ting-edge combat plane, they $12 billion in-depth look at the themes we see continuing to unfold
sent a clear signal: Moscow 2016
Russian annexation of Crimea

is fighting to win back lost and the potential implications for portfolios.
10 U.S.
market share in arms ex- $9.9B U.S. economy pulling ahead, with risks. We are
ports and courting major 8 optimistic about the prospect of expansion, with the passing
U.S. customers.
Moscow’s foreign arms Russia of the mantle from monetary to fiscal stimulus and President
6
sales plummeted after its $6.4B Tony M. Roth Trump’s growth-stimulating policies. This outlook is
2014 annexation of Crimea 4 M.A., J.D., LL.M. (Tax) tempered, however, by
as Ukraine, which was a ma- DOWNLOAD OUR
Chief Investment Officer, concerns over the likely toll
jor supplier of parts to Rus- 2
sian arms manufacturers, cut WTIA
that reduced tax revenue 2017 CAPITAL
off shipments in protest. 0 Tony brings his extensive MARKETS
But Russian arms exports knowledge and more than
and increased spending FORECAST
rose 16% last year, to $6.4 2000 2010 may have on our already- wilmingtontrust.com/CMF2017
20 years of experience to
billion, according to data Source: Stockholm International Peace Research Institute THE WALL STREET JOURNAL. soaring national debt.
bear on client portfolios
compiled by the Stockholm
International Peace Research portunity—that we no longer Ambassador Carlos Sor- every day. He is responsible “Income inequality”– finding the yield sweet spot.
Institute, or SIPRI, which have—to build their influ- reta, Manila’s ambassador to for strategic direction, Income is a greater portion of total return in this low-
tracks arms sales. Russian ence,” said Remy Nathan, Moscow, said his country’s quality risk management, growth, low-return environment. But there is inequality or
President Vladimir Putin said vice president of interna- military is hemmed in by and comprehensive
last year that customers had tional affairs at the Aero- U.S. export restrictions that unevenness as far as interest-bearing capabilities of stock
investment solutions.
placed orders for $56 billion space Industries Association, stipulate weapons won’t be He is part of a seasoned
dividends and bond coupons. In an effort to find value,
in future deliveries, a record a trade group that repre- used to commit human- we propose bond proxies and alternative investable ideas.
team of professionals who
for Russia. sents U.S. manufacturers. rights violations. “It’s almost
“I think they’re on an up- At the same time, Russia like when you buy the gun exemplify Wilmington Opportunity in emerging markets. Stocks are primed
ward trajectory, and I expect is also moving aggressively there is a string attached to Trust’s 114-year heritage for opportunity in emerging market economies that are
they will improve with time to increase sales to countries it,” he said. “Russia’s strat- of successfully advising moving from “older” industries like mining to newer ones
as they try to reap the gains that traditionally have been egy is very different.” our clients. For access
of the relationships they’re customers in the past, such Russia is also working to such as e-commerce and mobile hardware. This space is a
to knowledgeable
putting in place,” said Doug as Indonesia, which is close fulfill a $3.5 billion arms disparate one, making regional selectivity paramount.
professionals like Tony
Berenson, managing director to reaching a deal with a deal with Egypt that includes For more insights and guidance that seek to
at Washington-based defense Russian state-owned arms jet fighters. The raft of con- and the rest of our team,
industry consultancy Avas- firm to purchase jet fighters. tracts came about as Cairo’s contact Larry Gore at sidestep obstacles and pursue investment opportunities,
cent. Belarus, Iran and Nicaragua ties with Washington cooled 302-651-1665. visit wilmingtontrust.com/CMF2017.
Russia had long been the were among the countries following the 2013 military
world’s second-largest arms that imported more arms coup that brought President FIDUCIARY SERVICES | WEALTH PLANNING | INVESTMENT MANAGEMENT | PRIVATE BANKING
exporter behind the U.S., but from Russia last year than Abdel Fattah Al Sisi, a for-
it had been gaining ground the prior year. mer defense minister, to
and even outsold the U.S. in The Philippines is negoti- power. Officials at the Egyp-
2013 before the drop. ating an agreement that tian Embassy in Moscow
Moscow’s efforts to bounce would allow Manila to im- couldn’t be reached to com-
back have caught the atten- port Russian arms for the ment.
tion of U.S. arms makers, in first time. The deal would be The U.S. has far outsold
part because Russia is dealing striking because the Philip- Russia in Egypt and the This article is for informational purposes only and is not intended as an offer or solicitation for the sale of any financial product or service. This article
in some cases with countries pines is a former American U.A.E. over the past 10 years, is not designed or intended to provide financial, tax, legal, accounting, or other professional advice since such advice always requires consideration of
individual circumstances. If professional advice is needed, the services of your professional advisor should be sought.
such as the U.A.E., Egypt and colony and has a military according to SIPRI. But
Private Banking is the marketing name for an offering of M&T Bank deposit and loan products and services.
the Philippines that have long modeled along U.S. lines. Washington has been reluc-
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been major buyers of U.S. The talks come as Philip- tant to sell certain military Wilmington Trust Investment Advisors, Inc., a subsidiary of M&T Bank, is a SEC-registered investment advisor providing investment management
weapons, though some have pine President Rodrigo Du- gear, such as Lockheed Mar- services to Wilmington Trust and M&T affiliates and clients.
also purchased arms from terte has strained relations tin Corp.’s radar-evading Wilmington Trust is a registered service mark. Wilmington Trust Corporation is a wholly owned subsidiary of M&T Bank Corporation. Wilmington
Russia as well. with the U.S. through his F-35 Joint Strike Fighter, to Trust Company, operating in Delaware only, Wilmington Trust, N.A., M&T Bank, and certain other affiliates provide various fiduciary and non-
fiduciary services, including trustee, custodial, agency, investment management, and other services. International corporate and institutional
“If one of our partners abrasive remarks about for- Persian Gulf nations to en- services are offered through Wilmington Trust Corporation’s international affiliates. Loans, credit cards, retail and business deposits, and other
like U.A.E.…starts turning on mer President Barack Obama sure that Israel maintains an business and personal banking services and products are offered by M&T Bank, member FDIC.
any given transaction to the and an antidrug campaign edge in the region. ©2017 Wilmington Trust Corporation and its affiliates. All rights reserved.
Russians, that means the that critics say has been rife —Asa Fitch in Dubai
Russians have gained an op- with extrajudicial killings. contributed to this article.
A8 | Saturday/Sunday, March 18 - 19, 2017 * ***** THE WALL STREET JOURNAL.

WORLD NEWS

Saudis Expect U.S. to Reverse Terror Law


WASHINGTON—Saudi Ara- sideration by the new Congress
bia expects that the Trump ad- and the new administration, Tehran, Riyadh is set to start in late August.
ministration will take steps to that corrective measures will The announcement, pub-
Agree on Hajj Deal

NICHOLAS KAMM/AGENCE FRANCE-PRESSE/GETTY IMAGES


dismantle a 2016 law allowing be taken,” Mr. Falih said of lished by the official Saudi
U.S. terror victims to sue the Jasta. He didn’t specify what Press Agency, marks a rare
kingdom, according to a high- corrective measures would sat- Iranians to resume Muslim moment of consensus between
ranking government minister. isfy Saudi Arabia. pilgrimage as rivals end standoff the Sunni Muslim kingdom and
Expectations in Washington Shiite Iran, whose rivalry has
By Justin Scheck, for a congressional reversal are played out across the Middle
Elena Cherney low. Mr. Trump was an ardent DUBAI—Iran and Saudi East, often along sectarian
and Thorold Barker supporter of Jasta and called Arabia reached an agreement lines.
former President Barack to allow Iranians to partici- Last year’s talks ended be-
But chances are remote that Obama’s veto of the bill “shame- pate in this year’s hajj pilgrim- cause the two sides couldn’t
Congress will reverse the bill, ful.” A significant change would age to Mecca, resolving a agree on how Iranians would
said people in Washington fa- invite critical attention in his point of tension in the bitter obtain visas after Riyadh broke
miliar with discussions on the home state of New York, where rivalry between the regional diplomatic ties with Tehran in
issue. There has been no signal the bill—which allows victims powers. January 2016. The diplomatic
that the White House wants to of the Sept. 11, 2001, attacks to Iran barred its citizens from rupture came after Iranian
see the measure rolled back, President Donald Trump and Deputy Crown Prince Mohammed sue Saudi Arabia—has many attending last year’s annual mobs stormed Saudi diplo-
and lawmakers haven’t signaled bin Salman had lunch together in the White House on Tuesday. proponents. holy pilgrimage after the col- matic facilities in Iran to pro-
any new effort to change the Mr. Trump and the Saudi lapse of talks over its partici- test the kingdom’s execution of
law this year after a previous the state oil company, which is A favorable U.S. environ- prince didn’t discuss the law in pation with the Saudi govern- a Shiite cleric.
effort stalled—setting up a po- the world’s single biggest oil ment for Saudi investment is their meeting, Mr. Falih said. ment, a reflection of the Saudi Arabia takes pride in
tential conflict. producer, and the initial public timely, Mr. Falih said, as the But Mr. Falih expressed confi- downward spiral in ties be- its role as keeper of Islam’s ho-
In an interview with The offering is expected to be the kingdom embarks on an eco- dence that the U.S. would make tween the two countries. liest sites, located in the cities
Wall Street Journal, Saudi En- largest in history. nomic overhaul to diversify its changes because otherwise it It was the first time since of Mecca and Medina. But its
ergy Minister Khalid al-Falih Mr. Falih’s comments came economy away from depen- could face retaliation from 1990 that Iranians were ex- handling of past pilgrimages
highlighted how Congress’s after a meeting Tuesday be- dence on oil. That plan revolves other countries in the form of cluded from the hajj, a religious has provided ammunition to its
passage in September of the tween President Donald Trump around the Saudi Aramco offer- similar laws, he said. obligation that all able-bodied critics. In 2015, a deadly stam-
Justice Against Sponsors of and Saudi Arabia’s deputy ing and a strategy to invest After the bill’s passage in Muslims have to fulfill at least pede during the hajj left 769
Terrorism law, known as Jasta, crown prince. Mr. Falih said the more heavily abroad, including September, key U.S. lawmakers, once in their lifetimes. people dead, according to the
stoked tension in U.S.-Saudi re- kingdom sees a number of fa- in the U.S. concerned about such a back- On Friday, Saudi Arabia an- Saudi government.
lations and threatens to chill vorable shifts in U.S. policy Mr. Falih also warned of po- lash, proposed changes that nounced that following a meet- Other estimates put the
Saudi investment in the U.S. with Mr. Trump. He cited Mr. tential legal repercussions would limit the law’s scope ing last month between the death toll much higher. Iran has
The terror law, Mr. Falih Trump’s tougher stance toward abroad if Jasta survives. The and, lawmakers suggested, kingdom’s hajj minister and his said hundreds of its citizens
said, is one consideration in the Iran as an issue on which the Saudi government was “not would decrease the chances of Iranian counterpart, the two were among the victims, and
Saudi decision about whether two countries are now more happy” about the law, Mr. Falih retaliatory lawsuits. That effort sides had completed arrange- publicly questioned the kingdom’s
to list shares of Saudi Arabian closely aligned, and Mr. said, adding it was passed “dur- stalled and hasn’t been revived. ments for Iranians to partici- fitness to oversee the event.
Oil Co., or Saudi Aramco, in the Trump’s support for the fossil- ing the heated political period.” —Felicia Schwartz pate in the six-day hajj, which —Margherita Stancati
U.S. Mr. Falih is chairman of fuels industry. “We believe after due con- contributed to this article.

WORLD WATCH
CARIBBEAN
Brazil Accuses Meatpackers of Paying Bribes
SÃO PAULO—Brazilian au- linked to JBS was also under said participants in the scheme the government didn’t have duced in Brazil is imported by
Nobel-Winning Poet, thorities are investigating investigation. falsified sanitation certifica- enough information yet to say. the U.S. About 37,000 metric
Derek Walcott, Dies some of the world’s biggest JBS, with units on five conti- tions for beef and chicken as Brazil is second only to the tons of fresh beef were imported
meatpacking companies for al- nents, said it and its units “rig- well as for hot dogs, bologna, U.S. in beef and poultry pro- from Brazil in 2016, when the
Derek Walcott, a Nobel-prize legedly bribing food-sanitation idly follow” all regulations re- animal feed and pet food. duction, according to U.S. De- U.S. consumed about 11.7 million
winning poet known for captur- inspectors to approve sales to garding health inspection of its “The crime against the Bra- partment of Agriculture data, metric tons, according to the
ing the essence of his native Ca- domestic and foreign buyers of products and supports all efforts zilian people is grave,” said and is the world’s largest ex- USDA. The U.S. typically imports
ribbean, died on the island of St. meats that might otherwise aimed at punishing violations. Mr. Novacki, adding the Brazil- porter of chicken meat, ship- no chicken and negligible
Lucia. He was 87 years old. have failed to pass muster. BRF said that it meets all reg- ian government was also con- ping more than 4 million met- amounts of pork from Brazil.
The Caribbean’s most interna- ulations and that its products cerned about the impact on ric tons overseas in 2016. A USDA spokeswoman said
tionally famous writer, Mr. Wal- By Rogerio Jelmayer pose no risk to consumers in the country’s image abroad. Brazil’s meat sector relies the agency was in contact with
cott, “poet, playwright, and and Luciana Brazil or abroad. The company “We’re big players in the heavily on exports, shipping 30% Brazilian authorities and was
painter, died peacefully today…at Magalhaes added it was cooperating with world market, and consumers of its poultry meat and about monitoring the situation. Fed-
his home in Cap Estate, Saint authorities on the probe. can seek products from our one-fifth of its beef abroad, es- eral officials have safeguards
Lucia,” according to a statement Among the dozens of firms An Agriculture Ministry of- competitors,” he said. “We’re pecially to China. Any questions in place to protect the U.S.
released by his family. targeted are JBS SA and BRF ficial said the ministry was worried and we’re taking over the safety and quality of food supply through inspec-
The prolific and versatile poet SA, which both have substantial still investigating how much of steps” to maintain confidence Brazilian meat exports could tions of all imports, she said.
received the Nobel Prize in liter- operations outside Brazil. JBS, the affected meat and meat in Brazilian products. give an edge to U.S.-produced “We can ensure the American
ature in 1992. Mr. Walcott, who the world’s leading meatpacking derivatives were exported, When reporters at a press meat in markets where the two food supply is safe,” she said.
was of African, Dutch and Eng- company, owns Swift Foods and noting most of it was probably conference asked repeatedly countries compete, such as Hong —Jeffrey T. Lewis
lish ancestry, said his writing re- a majority share of Pilgrim’s, sold in the Brazilian market. how consumers could avoid Kong, the Middle East and Chile. and Jacob Bunge
flected the “very rich and com- both familiar U.S. brands. BRF is The official, Eumar Novacki, tainted food, Mr. Novacki said Relatively little meat pro- contributed to this article.
plicated experience” of life in the one of the world’s biggest
Caribbean. His dazzling, painterly chicken exporters.
work earned him a reputation as “[The firms under investi-
one of the greatest writers of gation] didn’t care about the
the second half of the 20th cen- quality of the meat or food”
tury. they sold, said a Federal Police
—Associated Press official, Mauricio Moscardi
Grillo. “They didn’t care at all
YEMEN about what they were selling
to consumers.”
Dozens of Refugees Shares of JBS plunged
Are Killed in Attack 10.6% on Friday, and shares of
BRF were down 7.6%. Brazil’s
At least 42 Somali refugees benchmark Ibovespa stocks in-
were killed Friday after a boat car- dex was down 2.4% on the day.
rying them apparently came under The investigation could
attack off Yemen’s coast, accord- threaten a planned initial pub-
ing to the International Organiza- lic offer by JBS for its interna-
tion for Migration. tional operations, and could
The incident occurred at cause problems for a possible
around 3 a.m. local time, accord- sale by BRF of a stake in one
JUAN FORERO/WASHINGTON POST/GETTY IMAGES

ing to spokesman Joel Millman. of its units as well, said Shin


There were 91 survivors, some of Lai, an investment strategist
whom were hospitalized, he said. at São Paulo-based research
Some survivors said they were firm Upside Investor. JBS an-
attacked by a military vessel nounced in December a reor-
near Yemen’s Hodeida port, while ganization plan that includes
others thought a helicopter that an IPO in the U.S. of shares in
flew from the vessel attacked its international businesses.
them, according to the IOM. An inspector-veterinarian
Most of the Somalis had employed by JBS at one of its
been living in a refugee camp in plants was allegedly involved
southern Yemen, the IOM said. in the scheme, documents pro-
An official from Hodeida said vided by judicial authorities
they were believed to be travel- show. Police said an executive A JBS meat plant in Lins, Brazil, in 2011. Besides the companies, Brazilian food-sanitation workers are also targets of the investigation.
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
FARES 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
year to service smaller U.S. cit-
ies by flying smaller, narrow-
body planes to locations such
as Stewart International Air-
operate from other European
cities. “This is just the start,”
IAG Chief Executive Willie
Walsh said.
military action in the area on Continued from Page One flying on such routes. prices to be more competitive port in New York, Green Air- The company, which also
Thursday or Friday morning. Punta Cana in the Dominican The market for trans-Atlan- with the startup rivals. port in Providence, R.I., and owns Irish carrier Aer Lingus,
—Asa Fitch Republic and Buenos Aires. Ser- tic flight was dominated for de- Low-cost trans-Atlantic Bradley International Airport said Level would start opera-
vice is to start in June. cades by a handful of U.S. and flights are typically operated near Hartford, Conn. It is these tions with two new Airbus
SYRIA IAG is basing the budget car- European airlines, many of with planes carrying more pas- new routes for which it is offer- A330 planes seating 293 pas-
rier in Barcelona partly because which have paired up with air- sengers than normal. Tickets ing introductory fares of as low sengers in economy class and
Israeli Airstrikes Met the airline’s Spanish short-haul lines on the other side of the can cost a fraction of tradi- as $65 one way. 21 premium-economy seats.
With Antiaircraft Fire budget carrier, Vueling, is based ocean to cooperate on sched- tional prices for intercontinen- Air Canada, Lufthansa and Crew from IAG’s Spanish car-
there, enabling passengers from ules and fares. British Airways Air France-KLM also recently rier Iberia will initially staff the
Israeli air force planes carried places throughout Europe to works closely with American launched no-frills subsidiaries planes.
out airstrikes in Syria on Friday, transfer to the trans-Atlantic Airlines Group Inc., the No. 1 to ferry passengers on long- The service from Barcelona
drawing fire from government flights. U.S. carrier. United Continental
A new breed of budget haul flights, including across will set off the first head-to-
antiaircraft missile batteries in The deep discounting isn’t Holdings Inc. is linked with airline has started the Atlantic, at budget prices. head contest between a net-
the most intense military ex- playing out only across the At- Deutsche Lufthansa AG, and But legacy carriers often work carrier’s budget long-haul
change between the two coun- lantic. The long-haul arm of Ai- Delta Air Lines Inc. cooperates
offering super-cheap struggle in setting up discount unit and an airline focused at
tries since the start of the Syr- rAsia Bhd., Asia’s giant budget with Air France-KLM SA. long-haul flights. units, and several efforts in the inception on discount travel.
ian conflict six years ago. carrier, is poised to link its base Those relationships have helped U.S. have failed. Incumbents in Norwegian Air has announced
The Israeli military didn’t dis- in Kuala Lumpur, Malaysia, keep routes lucrative. some cases found they couldn’t plans to expand its budget
close what it had targeted but with Honolulu later this year. The market remains attrac- match the cost structure of long-haul operations to the
said the aircraft returned safely Scoot Pte Ltd., a budget long- tive for these legacy airlines, tal flights, although passengers their budget rivals, or aban- Spanish city in June.
to their base, denying a Syrian haul affiliate of Singapore Air- but the new competition has generally have to pay extra for doned efforts once their dis- Level will offer high-speed
claim that one plane had been lines Ltd., plans to start operat- pushed down ticket prices. For amenities such as meals. count operations threatened to onboard Wi-Fi for prices start-
downed and another damaged. ing cheap flights between the both discounters and incum- Norwegian Air has been a cannibalize their regular busi- ing at about $9.65. Premium
Israel has said it reserves the Asian city state and Athens this bent airlines, prices fluctuate trailblazer. The Scandinavian ness. Lufthansa’s Eurowings economy passengers will have a
right to strike arms shipments year. with demand, so it is difficult carrier now offers service from budget arm was plagued by op- checked bag, food, seat selec-
to Hezbollah, the Iranian-backed Tim Clark, president of to assess how much any one several European cities, includ- erational missteps, including tion and movie access included
military and political group in Emirates Airline, the world’s carrier’s move affects prices ing London and Paris, to desti- long flight delays, when it first in the price of their tickets.
Lebanon that is supplying fight- largest carrier by international more generally. Fares on dis- nations such as New York, Fort began flying across the Atlan- Economy class passengers will
ers for the Assad regime. traffic, this month called low- count carriers at times can be Lauderdale, Fla., and Los Ange- tic. have the option of paying extra
—Rory Jones cost, long-haul service a “gath- on par, or even higher, than les. It expanded earlier this IAG plans to expand Level to for these items.
THE WALL STREET JOURNAL. * * * * Saturday/Sunday, March 18 - 19, 2017 | A9

BLOOMBERG

THE NEW YORK TIMES

FINANCIAL
TIMES

What
Competition?
When it comes to senior executives, WSJ
has 1.5x the reach of Bloomberg, 2x The
New York Times and 6x The Financial Times.

For 30 years running, The Wall Street Journal has been the No. 1 media brand
for reach and influence in American business. According to Erdos & Morgan, our
readers manage $4.6 trillion in expenditures. That’s $2 out of every $3 spent on B2B
purchases. The Wall Street Journal—we mean business.

Source: 2016–2017 Purchase Influence in American Business, Erdos & Morgan. Brand nets reflect net of print average issue audience and past 30 day use of measured digital
platforms; purchasing volumetric reflects aggregate of 47 measured categories.

© 2017 Dow Jones & Co., Inc. All rights reserved. 6DJ5243
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 the most complicated types of op-
wasn’t talking. His parents tions. His agency theory spurred
took him to a hospital for research into how incentives can
BY JAMES R. HAGERTY tially fatal mistakes worsened. tests and were assured nothing be structured to align the inter-
“With growing concern, I came to was wrong. Sure enough, he be- ests of principals (such as inves-

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

D
gans and whether it was worth do- then won medical degrees at North- talked companies into lending oris Damm, a former moti- eral Electric Co., took out a sec-
ing such costly surgery when many western University. He had four their corporate jets to rush livers vational speaker for ond mortgage on their home.
people couldn’t even get basic care. years of surgical training at Johns to recipients. Weight Watchers, got a job Her ACCU Staffing Services
“Most mortal people would have Hopkins Hospital in Baltimore. In 1990, he had coronary bypass in the 1970s as an account man- now has 13 branch offices and
given up,” said John Fung, who Stung by what he saw as a slight surgery. Worn out by travels and ager and receptionist at a small serves hundreds of companies in
heads the University of Chicago’s from one of his supervisors, he debates, he retired as a surgeon executive-search firm in Cherry New Jersey, Pennsylvania and
Transplantation Institute. moved to the University of Miami but continued researching. Prog- Hill, N.J. At the time, companies Delaware. Mrs. Damm’s insights
Dr. Starzl died March 4 at home medical school for his residency. ress, he said, had vastly exceeded were getting leaner and less will- into the regional economy drew
in Pittsburgh, a week before his During that period, he wrote, “I felt his early dreams. ing to offer long-term employ- the attention of the Federal Re-
91st birthday. His memorial service like a missile looking for a trajec- Was he the father of transplanta- ment. Some told her they didn’t serve Bank of Philadelphia, where
was attended by hundreds of col- tory.” tion? “I didn’t make that claim,” he want her help finding new execu- she served on the board from
leagues, friends and admirers, as In Miami, crime furnished more said in an interview late in his life. tives but needed temporary staff. 2001 to 2007, the last two years
well as his golden retriever, than enough gunshot wounds to With a laugh, he added: “On the So Mrs. Damm quit her job and as chairman. That meant quar-
Chooloo. train a young surgeon. He learned other hand, I haven’t rejected it.” set up a temporary-staffing firm terly trips to Washington for
Thomas Earl Starzl was born the arts of replacing blood vessels. Dr. Starzl is survived by his in 1979 on her kitchen table, with meetings that included Fed Chair-
March 11, 1926, and grew up in Le In his spare time, he experimented wife, Joy Starzl, a son and a grand- one assistant. Soon, she had cli- man Alan Greenspan and later
Mars, Iowa. His father, who wrote on dogs, devised a technique for child. Two other children died be- ents, but was struggling to meet Ben Bernanke.
science fiction as a young man, removing livers and began thinking fore him. her payroll. She had to pay the Mrs. Damm died of respiratory
settled into running a small-town about how to “install” new ones. temps weeks before clients paid failure Feb. 27 at a hospital in
newspaper. His mother had worked As his surgical skills improved,  Read a collection of in-depth her. She and her husband, Edward Camden, N.J. She was 82.
as a surgical nurse and wanted her his anxieties about making poten- profiles at WSJ.com/Obituaries Damm, a sales executive for Gen- —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 Brendan Lax at the Hillsboro Public Library in Oregon.
popper,” he says.
To generate buzz for the framed prints of famous paint- vival strategy but a response
chimney-cleaning brushes, Mr. ings. “You could check out a to what their communities
Lax dressed up as an old-fash- van Gogh reproduction,” she want. “We are not doing this
ioned British sweep and ad- says. “We want to be needed,” to make it through some cata-
opted a cockney accent for a says Dr. Todaro, who applauds clysm. It is not about ‘books
video where he and a col- libraries’ efforts to reinvent are over,’ ” says Eli Neiburger,
league channeling her inner themselves. deputy director of the Ann Ar-
Mary Poppins lip-synced the Lisa Downing, director of bor District Library, who adds
movie’s “Chim Chim Cher-ee” the Forbes Library in North- that libraries have questioned
song-and-dance number. ampton, Mass., says, “I feel their offerings for decades.
Lending out novel items the writing is on the wall— Early in the 20th century, he
can bring twists. In Southold, and I love being relevant.” A says, there were debates
one patron brought back a few years ago, the Forbes be- about whether libraries should
tackle box he had borrowed gan lending ukuleles. They stock popular fiction or carry
and complained he had found children’s books.
a dead fish inside. In Ann Ar- While Ann Arbor lets pa-
bor, a patron returned a rep- trons take out a sewing ma-
lica of a prehistoric woolly
One library lets chine and a spinning wheel,
mammoth tooth, which had patrons take out a books remain in demand.
been broken in many pieces “They have declined slightly,
and then meticulously glued
sewing machine and but we still circulate hundreds
back together. a spinning wheel. of thousands,” he says.
Several libraries are “lend- The library also lends ther-
ing” flower and vegetable emins, a type of electronic in-
seeds. Will they get them strument dating to the 1920s.
back? Probably not, says Re- were a hit with patrons so the The theremin’s spooky tones
becca Judd, of the Bainbridge library branched out into evoke soundtracks from old
Island branch of the Kitsap bongo drums and banjos, sci-fi and horror movies, Mr.
Regional Library, near Seattle, among other instruments. Neiburger says, and tend to
which makes available packets Recently, the library asked grate on parents after their
of seeds to grow zinnias, to- people what else they would children spend hours tinkering
matoes, spinach and carrots. like to borrow. Ms. Downing with the instrument. “It starts
The seeds are stored in the says she tries to keep an open being obnoxious,” he says,
old wooden drawers of the mind at survey responses, “and it has to go back to the
card catalog, which once such as requests for kayaks, library.”
tracked the library’s books. canoes and snowshoes, but did In Southold, library direc-
Ideally, patrons bring seeds a double take when someone tor Caroline MacArthur wants
back after their harvest, but suggested a Geiger counter. to install a book stand in the
Every child deserves to wake up with hope. Ms. Judd, the library branch There were two requests for local laundromat. Patrons
For about the same amount you spend buying coffee every morning, manager, acknowledges: kittens and puppies. While she could read during the wash
you can provide an entire year’s tuition for a girl in Kenya, giving her “There are more seeds going can’t see cats and dogs in the and dry cycles, then take
the education she needs to improve her and her family’s livelihood. out than coming in.” library, she says, “Who books home.
Sponsor a girl today and help her achieve a better tomorrow. Julie Todaro, president of knows?” Snowshoes are a se- As far as loans beyond fish-
EAST AFRICA
EastAfricaChildrensHope.org CHILDREN’S HOPE the American Library Associa- rious contender, she allows, ing poles and the telescope,
tion, a professional group, re- adding, “These programs take Ms. MacArthur has a really
calls that the Houston Public a leap of faith.” zany notion: “Maybe a beach
Library, where she worked in Some librarians say the un- bag with—I hesitate to say
the early 1970s, once lent orthodox loans aren’t a sur- it—books.”
THE WALL STREET JOURNAL. * * * * Saturday/Sunday, March 18 - 19, 2017 | A11

IN DEPTH

MEMOIR Mack told me Capote wanted


to buy the manuscript from
him.”
Alan Schwartz, a California
Continued from Page One attorney who represents the
hogtied the terrified Clutters, Capote estate, didn’t return
Herb and Bonnie and their emails and calls seeking com-
teenagers Nancy and Kenyon, ment.
assuring them that they By that time, early 1962,
meant no harm right up until Mr. Nations had fashioned
the instant that they blasted Hickock’s writing into a book
each in the head with a shot- and sent it to Random House,
gun. apparently unaware the pub-
Hickock gleefully described lishing house already had
how, in a house the killers signed a contract with Mr. Ca-
kept dark to avoid the atten- pote to write about the Clut-
tion of neighbors, he shined a ter murders.
flashlight on each victim’s Soon after, when a package
head while Smith pulled the came back from the publisher,
trigger. Of the instant Smith Mr. Nations handed it to Ms.
emptied a shell into the face Wise and asked her to open it,
of 15-year-old Kenyon Clutter, she said. “When I asked him

F. MARTIN RAMIN/THE WALL STREET JOURNAL


Hickock wrote, “I would of what it was, he said, ‘It’s my
liked to see the embalmer fill retirement,’ ” said Ms. Wise,
that hole.” In the document, now an 81-year-old insurance
the only regret Hickock ex- agent in Wichita. But it was a
pressed was that Smith did all rejection. “As I recall, the let-
the killing. ter said Random House al-
The twist comes in why ready had Capote under con-
they did it. tract,” she said.

New motive Income-tax case


In Mr. Capote’s telling— A month after Mr. Nations
which echoed the case prose- gave state officials the copy
cutors presented at trial— of Hickock’s letters, federal
Hickock and Smith entered ‘But I can’t back out, I’ve taken the money. I’ve spent some of it. prosecutors in Topeka
the house believing that Mr. brought income-tax evasion
Clutter kept $10,000 in a safe, Besides I thought, I know too much.’ charges against the journalist.
based on a tip Hickock had re- The case was related to an al-
ceived from a cellmate during leged payoff to Gov. Fred Hall
a recent stint in prison. Once Richard Hickock’s handwritten manuscript on the Clutter murders suggests the killers were paid for the job. that Mr. Nations was accused
they discovered no such safe of handling in 1955, when he
existed, they could have fled script at the request of The was in an earlier job as the
with little chance of getting Wall Street Journal, Michael politician’s executive secre-
caught, since the Clutters Stone, a Columbia University tary. The $10,000 bribe was
didn’t know their identities psychiatrist specializing in allegedly paid by Kansas law-
and since limited investiga- the study of killers, said, “I yers to arrange parole for
tive resources would have don’t believe for a minute someone who had performed
been devoted to a robbery that they got paid to do it.” an illegal abortion that re-
that left nobody hurt and that Also improbable is that the sulted in death. Mr. Nations
fetched only $40. The mur- Hickock manuscript would was charged with tax evasion
ders made no sense. In inter- have remained undiscovered, on his alleged $5,000 cut.
views following the publica- and the story surrounding it When Mr. Capote learned,
tion of “In Cold Blood,” Mr. untold. As a book that created via the KBI, of the indictment
Capote theorized that Smith the so-called nonfiction novel, against Mr. Nations, he ex-
snapped at the sight of an in- launched the true-crime genre pressed delight. “Remember
tact family—something he and made Mr. Capote an icon Mack Nations, the newspaper
had never had. of 20th-century American lit- bastard who has caused me so
In his manuscript, however, erature, “In Cold Blood” much trouble?” he wrote in a
Hickock suggested that some- spawned articles, books and March 1962 letter to Random
one named Roberts paid them films galore. Two years ago, House founder Bennett Cerf.
to kill one or more of the the Weinstein Co. optioned “Well, he has been arrested
Clutters. Describing the mo- television rights to “In Cold for income tax evasion!” The
ment he and Smith parked in Blood,” and last fall, Sundan- letter was reprinted in “Too
the Clutter drive, Hickock ceTV announced plans for a Brief a Treat: The Letters of
wrote, “I was going to kill a four-part documentary on the Truman Capote,” a book ed-
person. Maybe more than one. Clutter murders. ited by Capote biographer
Could I do it? Maybe I’ll back Yet the story of Hickock’s Gerald Clarke and published
out. But I can’t back out, I’ve literary project has escaped in 2004.
taken the money. I’ve spent attention of even Capote Mr. Nations was acquitted
some of it. Besides, I thought, scholars, even though Hick- after a trial. But his career at
I know too much.” ock’s partner in that project the Wichita Eagle was over,
Two handwritten pages was the late Mack Nations, a and legal expenses had ruined
later, with the Clutters now prominent Kansas journal- him financially, according to
held hostage, Hickock de- ist. “I didn’t know about any his son. Mr. Nations moved to
scribed a sense of urgency Hickock manuscript, and I’d Colorado, took charge of a
mounting as he and his part- never heard of Mack Nations,” small newspaper and died in a
ner searched the house. “We said Ralph Voss, who spent single-car accident in 1968,
were running short on time,” years researching his ac- two years after “In Cold
Hickock wrote. “It was almost claimed 2011 book, “Truman Blood” became an interna-
two o’clock and our meeting Capote and the Legacy of In tional sensation.
Cold Blood.” After its rejection, Mr. Na-
Officials of the KBI and tions’ manuscript remained
Kansas attorney general’s of- for years with Ms. Wise.
The implication likely
ASSOCIATED PRESS

fice declined to respond to Eventually, Ms. Wise said she


would have infuriated questions about the Hickock delivered the manuscript to
manuscript, or any suggestion Mr. Nations’ mother. Called
Mr. Capote and also that a person named Roberts “High Road to Hell,” the man-
the KBI detectives. ordered the killings. uscript found its way back to
In 1962, Mr. Nations sent to A captured Richard Hickock is led out of jail in Las Vegas in 1960. His handwritten manuscript, lost him in Colorado, where his
Kansas authorities a copy of before now, describes the murder of the Clutter family and his days on the run with Perry Smith. son recalled seeing it on his
the manuscript he had re- father’s desk shortly before
with Roberts was about an ceived from Hickock. That fell Nations, suggest that Kansas stallments to Mr. Nations, Mr. Capote hired a power- his death. “After he died, no-
hour away. We didn’t want to into the possession of Robert prison and law-enforcement who would fashion it into a ful Kansas law firm to seek an body ever saw it again,” said
miss that. Five thousand Hoffman, a lawyer in the Kan- officials sought to thwart the book-length manuscript, ac- exception for himself to the Michael Nations.
bucks is a lot of dough.” sas attorney general’s office Hickock/Nations book while cording to the younger Mr. ban, according to documents The journalist’s son be-
The reasons to discount who successfully batted down enabling Mr. Capote’s. Nations and to prison corre- at the Kansas Historical Soci- lieves it is no coincidence that
Hickock’s claim go beyond his Hickock’s and Smith’s appeals “Capote was telling the spondence on file at the Kan- ety. That effort was success- the federal charges against
lack of credibility as a patho- for clemency. When he died, story that Kansas authorities sas Historical Society. ful, and in January 1962 Mr. his father came a few weeks
logical liar. If he and Smith the copy passed to his son, wanted told, and Mack Na- Over the following months, Capote paid his first visit to after state officials received a
were paid to kill the Clutters, Kurt Hoffman. After the Jour- tions was telling a story that Hickock sat on death row Smith and Hickock at the pen- copy of the Hickock manu-
why didn’t they use that in- nal learned of it, the younger they wanted to silence,” said writing about 200 pages by itentiary. script. “They trumped it up to
formation to try negotiating Mr. Hoffman agreed to let the Houston probation officer Mi- hand, putting his initials in put a stop to that book,” said
their way off death row? Why Journal review the manu- chael Nations, son of the late the top corner of some pages. the younger Mr. Nations, who
were they dirt poor before script. Mack Nations. Whether he saw himself as Rejected book in recent months has posted
and after the crime? Why did In early 1961, a year after competing with Mr. Capote That same month, state several long YouTube videos
Hickock, later in the manu- Hickock and Smith were con- isn’t known. At that point, prison officials requested in which he theorizes that the
script, describe the killings Mack Nations deal victed of killing the Clutters, Hickock hadn’t seen Mr. Ca- from Mr. Nations a full copy Clutter killings might have
with no mention of a Roberts? A look at the history of the Mack Nations visited the Kan- pote in more than a year, not of the raw manuscript he had been a paid hit and his father
And how to explain the role of Hickock/Nations project sug- sas State Penitentiary in Lan- since the author had traveled received in installments from the victim of a coverup.
Floyd Wells, the former cell- gests that its obscurity isn’t sing to write stories about to western Kansas for the Hickock. Mr. Nations complied The only piece of Hickock’s
mate of Hickock’s (and former necessarily an accident. Docu- death row for his employer, Clutter-murders trial. In the on Feb. 1, 1962, although in a writing that Mack Nations
Clutter employee) who testi- ments on file at the Kansas the Wichita Eagle. While he film “Capote,” the author is cover letter to Mr. Hoffman in ever published was a short
fied that his jailhouse talk of Historical Society in Topeka was interviewing Hickock the portrayed as a constant visi- the Attorney General’s office story in a long-defunct maga-
a cash-stuffed safe was what and the New York Public Li- idea of a book arose, and ulti- tor to death row. In fact, an he expressed dismay that the zine called Male in late 1961,
got Hickock obsessed with the brary, along with letters of mately they agreed to a joint execution date and almost ban prohibiting him from vis- in which Hickock came off as
Clutters? Mr. Capote and interviews venture. Hickock would write two years passed without Mr. iting or corresponding with unrepentant and repugnant.
After reviewing the manu- with people who knew Mr. his story and mail it in in- Capote paying any visits to Hickock had been lifted for The Male magazine story ac-
the eastern Kansas prison Mr. Capote. “I can’t help but knowledged that Smith and
where Smith and Hickock feel the attorney general’s of- Hickock killed the Clutters but
awaited the gallows, docu- fice played a little politics in made no mention of anyone
ments at the Kansas Histori- opening the penitentiary to paying them to do the killing.
cal Society show. Truman Capote while all Smith and Hickock were
It was only after KBI Detec- other reporters, including my- hanged in 1965.
tive Alvin Dewey, chief inves- self, are prohibited from mak- Ms. Wise said Mr. Nations
tigator in the Clutter case, ing such visits,” he said in the once remarked to her that
STEVE SCHAPIRO/CORBIS/GETTY IMAGES (CAPOTE); NATIONS FAMILY

wrote to Mr. Capote in May letter, acquired by Gary McA- “there was something fishy
1961 informing him of the voy, a Capote scholar and the about the Clutter case. But he
Hickock-Nations project that author of a coming book wouldn’t say what.” She de-
Mr. Capote made plans to about the Clutter case. scribed the late journalist as a
visit death row, according to Meanwhile, Mr. Capote gregarious raconteur who also
the letter, now in the Capote tried getting his own copy of had a penchant for secrecy.
collection at the New York the Hickock manuscript, ac- In the lengthy section of
Public Library. By then, how- cording to Shirley Wise, then “In Cold Blood” devoted to
ever, he faced an obstacle: A a general assignment reporter the Clutter killers’ five years
few months after Hickock be- at the Wichita Eagle. “Capote on death row, Mr. Capote por-
gan sending his story to Mr. called the Eagle asking for trayed Hickock as a vain hood
Nations, Kansas prison offi- Mack Nations, and I answered who spent his time reading
cials imposed a new ban on the phone,” said Ms. Wise, erotic literature and legal
Truman Capote, author of ‘In Cold Blood,’ shown outside the Clutter visits and correspondence be- who was also Mr. Nations’ manuals on how to seek clem-
home in Holcomb, Kan., in 1967, was given access to the killers tween the media and death- girlfriend back then. “I trans- ency. He never mentioned
during their time on death row. Journalist Mack Nations, right, row inmates. The reason for ferred the call to Mack, and I that Hickock tried publishing
worked on Hickock’s manuscript and tried to have it published. the ban isn’t clear. 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?
d t
Edmonton 10s <0
V
Vancouver 50s 20s 0s
C gary
ary
Calgary 10s
p
Winnipeg
Seattle 30s 20s

l Montreal 30s
Helena Ottawa
P d
Portland Bismarckk
Eugene
Billings 40s A g t
Augusta 40s BY ANDREW BEATON
Boise T t 50s
40s Mpls./St.. Paul
Pau Toronto Albany
A b
bany t
Boston
60s oux FFalls
ll l
Buffalo rtford
Hartford 60s
Milwaukeek Detroit Pierre Sioux
P IN THE FINAL minute of
Cleve d
Cleveland New Yorkk
ew Y 70s
Ch
Chic
Chicago
Reno Salt Lake
lt Lak
Lake Cityy
kee C
Cit Che
h y
Cheyenne Deses Moines
Pittsburgh
Pit b h P hil d lphi
h
Philadelphia
Thursday’s Northwestern-
Omahah 80s
Sacramento 80s 50s Denver 50s
Indianapo
p
Indianapolis
h
Washington on
n D.C.
DC
Vanderbilt thriller, Commo-
90s
San Francisco
70s CColorado Topek
k
Topeka p g d Charleston
Kansas Springfield Charles
h dores guard Matthew
d City h
Richmond d 100+
LLas p
Springs
70s Wichita h
hit St.. Louis
L
Lou LLouisville
Lou Fisher-Davis committed
Ve g
Vegas l i h
Raleigh
Nashville
h ill what is being hailed as a
Los A
Ange l
Angeles 60s Charlotte
Chh
90s Santaa FFe Oklahoma
kl Cityy Memphisphi blunder for the ages.
Ph
Phoenix A b q q
Albuquerque C b
Columbia
San Diego LLittlee Rockk A t
Atlanta Warm Rain But maybe that analysis—
Tuc
Tucson El Paso
Ft. Worth D
Birminghamh based on decades of conven-
Dallas Cold T-storms
JJackson
k
bil
Mobile Jacksonville tional basketball wisdom—is
80s 80s
-0s A ti
Austin
Houston t Stationary completely wrong.
Snow
0s ew Orleans
New l d
Orlando With 17 seconds left, Van-
80s an Antonio
San A Tampa
10s Anchorage
A h g Honolulu
l l Showers Flurries derbilt had taken a one-
Miami
20s 30s 70s point lead. On the ensuing
Ice inbound pass, Fisher-Davis
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. * * * * Saturday/Sunday, March 18 - 19, 2017 | A13

OPINION
THE WEEKEND INTERVIEW with Thomas Sowell | By Tunku Varadarajan

The Education of an American Sage


T
Stanford, Calif. of my life, there’s virtually no way I admired: “Oh, Milton Friedman,
homas Sowell is sitting in could have followed the same path certainly. He was one of the few
my chair. He’d driven in that I did.” people I know who had both genius
to Stanford University Having dodged a calamitous ed- and common sense.” (Friedman,
from his home 50 miles ucation solely on the advice of a who died in 2006, was Mr. Sowell’s
away, and since he’s 86 worldly child, it isn’t surprising colleague at the Hoover Institution,
years old, the least I could do was that Mr. Sowell—who went on to where I also work.)
to let him choose between the two earn degrees from Harvard, Colum- Growing up, Mr. Sowell admired
seats in my office. So he parks be- bia and the University of Chicago Joe DiMaggio, Joe Louis and Frank-
hind my desk on the lovely chair before teaching at some of the lin D. Roosevelt. Later, he says, he
that swivels, and I face him, country’s finest universities—has “realized what tremendous damage
hunched and immobile, on the had a lifelong distaste for the FDR had done. But I think two out
other side—a fitting way to inter- “ideologues” who have come to run of three is not bad!”
view one of America’s great sages. America’s schools. I press him on the sportsmen,
This feels like the perfect time The nomination of Betsy DeVos wondering how they came to be
to ask Mr. Sowell to ruminate on as education secretary, and the the idols of a cerebral economist.
the things that have mattered most possibility of promoting charter He talks with visible awe of DiMag-
to him. He’d announced, at the end schools nationwide, so energized gio. “There’s a famous moment in
of 2016, that he would give up the Mr. Sowell that he “briefly came the World Series—1947—between
newspaper column he’d written for out of retirement to write two col- the Yankees and the Dodgers. The
ZINA SAUNDERS

Creators Syndicate for more than umns in support—because I Dodgers are leading. Joe DiMaggio
25 years, a retirement that sug- thought that this is a moment that comes up with runners on the base,
gested the end of an era. Before might not come again in our life- and he hits a blast, 415 feet to left
that Mr. Sowell, an economist and time, and I mean even the younger field. The Dodgers outfielder
conservative, had written columns people’s lifetime. If we lose it now, catches right up against the 415-
for another news service, Scripps- we may have lost it forever.” foot sign. If that had been a home
Howard, but had quit after an edi- Mr. Sowell has what he calls “my run, that would have put the Yan-
tor changed a line about carbon reservations” about Donald Trump, kees ahead.
monoxide emissions to read as one but he gives the president credit “DiMaggio by this time is round-
for being “the first Republican ing second base. He gives a little
who’s made any serious attempt to kick of the dust and goes on back
The scholar and longtime get the black vote by addressing to enact school choice, Mr. Sowell world, the ones that are lagging in. That was the biggest outburst
columnist discusses his problems that affect most blacks says, “he would have some hope behind are those where their lead- there had been from DiMaggio in
who are trying to do the right of beginning the process of peel- ers always tell the same story: that his career. It wasn’t that violent a
rise from poverty and the thing—such as education, which is ing away black votes from the it’s other people holding you back, kick, just enough to barely raise a
country’s ‘degeneration’ such low-hanging fruit.” Republi- Democrats. It doesn’t have to be a and that therefore you need to little dust. I still remember that
cans have “no reason whatever to majority of the black vote. If stand against those other people self-control all these years later.”
into ‘grievance culture.’ be worried about teachers unions, there’s a narrow race for Con- and resist their culture. But that And Joe Louis? “He was a gen-
because the teachers unions aren’t gress, and you can reduce the culture may be the key to success.” tleman, who carried himself in a
going to vote for them anyway,” he black support for the Democrats Here Mr. Sowell pivots to 18th- certain way that inspired respect.
about “carbon dioxide.” This says. “They’re spending millions of from 90% to 80%, that could be century Scotland and the philoso- I’m not a big fan of the role model
caused an indignant Mr. Sowell to dollars trying to get Democrats the difference.” pher David Hume: “Hume urged thing, but it has its effect.”

H
terminate his contract—perhaps elected.” Scots to learn the English lan- Mr. Sowell recalls a time when
the original source of his fearsome But the good that can be done is ow has America changed guage,” he says. “He didn’t do he was “quite young, maybe 5
reputation among editors. (When I, obvious to Mr. Sowell. “The most over Mr. Sowell’s lifetime? that because his job was that of years old, down in North Carolina.”
as an editor for this page, was successful schools for educating “Oh my God,” he responds, an ethnic leader. He did it because One day, a kid told him that he had
handed a Thomas Sowell piece to black kids have been a few charter “that is truly a depressing subject.” he was an intellectual.” Yet it “some big secret down in his base-
work on back in 2001, my boss schools,” he says. “There are liter- He laments the “huge degenera- helped bring progress to his ment that he wanted to show me. I
whispered to me: “Careful, it’s ally tens of thousands of kids on tion” and what he sees as the homeland. “One of the most mi- said, ‘What’s down there?’ and he
Sowell. Don’t change anything.”) waiting lists for charter schools in spread of “the grievance culture to raculous advances of a people oc- said, ‘Just go down in the base-
Thomas Sowell was born into New York alone. You needed some- low-income whites—and even to curred in Scotland from the 18th ment, you’ll see.’ He had me go
poverty in North Carolina, in 1930. body who was going to fight to places like Great Britain.” century into the 19th,” Mr. Sowell down first—which I shouldn’t have
At age 9, he moved with his mother break through these caps that have An idea has taken root “that says. “A wholly disproportionate done, but I did, and he ran back up-
to Harlem, in New York, to live been put on the number of charter you’re entitled to certain things, share of the leading British think- stairs, closed the door, and locked
with relatives who promised a bet- schools.” that you don’t necessarily have to ers was Scottish. I mean Adam me in that pitch-black basement.”

T
ter life for the boy. There he visited Mr. Sowell has stopped swivel- earn them,” he says. “There’s a be- Smith in economics, Hume in phi-
a library for the first time, and ing in my chair, and he looks lief that something’s wrong if you losophy, Sir Walter Scott in litera- he furious young Tom pushed
though he’s not entirely sure, he straight at me to make his next don’t have what other people ture, James Watt in engineering. and kicked at the door, and
thinks the first books he borrowed point. “You see, in order to get have—that it’s because you’re ‘dis- You can run through the whole forced it open. “I think I was
from this “wondrous” institution these reforms, you would have to advantaged.’ A teenage dropout list. A people who were really far angrier than I ever had been—that
were “The Story of Doctor Dolittle” go against the dogmas not only of mother is told she has a disadvan- behind in one century had sud- I’d ever been before or since. He
and “Alice in Wonderland.” educators, but of the American in- tage. But if you’re going to call the denly come out of nowhere and was standing there and I came at
A family friend called Eddie—a telligentsia in general,” he says. negative consequences of chosen were on the forefront of human him and just hit him as hard as I
boy roughly Mr. Sowell’s age—had “The teachers unions complain that behavior ‘disadvantage,’ the word progress.” could. The punch must have landed
taken it upon himself to help the charter schools really have is corrupt beyond repair and useful Could black Americans one day just right, because he went down
callow little Southerner navigate skimmed off the cream. Of course only for propaganda purposes.” be like the Scots? “They can be,” and out. He was prone on the
his new metropolitan minefields. “I that’s nonsense, because people are Has there been any change for says Mr. Sowell, “and for those ground, limp as a dishrag. and I
was assigned to a junior high chosen by lottery. In another sense, the better? “Oh, yes, yes, yes,” he who haven’t gotten into this corro- was going to hit him again. I could
school in a really very bad part of there’s a point there, because these says. “In fact, for blacks who have sive new culture, they’re already have killed him. But something
Harlem, and Eddie told me, ‘You are the parents who care about education and who have not suc- doing that. But it’s going to be very stopped me, a thought in my head.
don’t have to go there. You can ask what’s going to happen to their cumbed to a new lifestyle—the hard. Both the media and academia “ ‘Joe Louis wouldn’t do that,’ I
to be sent to a different school.’ kids. These people are just desper- grievances, and the coarseness rep- promote the idea that people fall said to myself.”
That’s what he’d done. And then I ate to get into the charter schools. resented by rap music—it’s gotten behind because others are holding
followed him to Stuyvesant”—a se- They don’t want to be raising a tremendously better. What’s dis- them back.” Mr. Varadarajan is a fellow at
lective high school for smart kids. bunch of little thugs.” heartening, though, is that when I ask Mr. Sowell to talk about Stanford University’s Hoover Insti-
“He led me. If you take Eddie out If a Republican could manage you study ethnic groups around the some of the public figures he’s tution.

New York’s Investigated Mayor Gets Away Scot-Free


New York Mayor de Blasio has insisted all by Mr. Bharara last month, the mayor homeless that never seem to square planeload of passengers waiting 20
Bill de Blasio could along that there was nothing to see jetted to the Democratic National when Mr. de Blasio gives figures for minutes.
hardly be blamed if here: “We did everything right,” he Committee’s winter meeting in At- those to whom his government is There’s a maxim that a person
he celebrated St. told a local TV station at the end of lanta. His welcome was chilly. providing shelter. who can’t do the small things well
Patrick’s Day with a January. “My team did everything “They’re not happy he’s here,” one There are also the little things— shouldn’t be trusted with the big
few cold ones and a right. I did everything to abide by Democratic source told the New York for instance, time. In 2015, the things either. It’s a timeworn truth
long sigh of relief. the law and comport ourselves in an Post. Nothing quite sticks out like a mayor missed half of the St. Pat- that Mayor de Blasio has worked
CROSS
COUNTRY This week showed ethical fashion.” Still, it’s hard not to 6-foot-5 man standing alone at a rick’s Day parade in Queens because hard to fulfill since taking the city’s
New York’s mayor to raise an eyebrow at the details. party with people who don’t care a he didn’t show up soon enough. (He reins in 2014. But no heavy hitter
By Elisha
be one lucky lepre- Mr. de Blasio’s nonprofit, Cam- whit about him. explained that there had been “some has stepped up to challenge his re-
Maldonado
chaun. paign for One New York, essentially Now that the prosecutors have stuff we had to deal with.”) The year election. If New York can’t come up
With re-election supported his pet projects, like elim- backed off, this year’s mayoral cam- before that he was so late to a with better mayoral competition in
coming this November, Mr. de Blasio inating income inequality, creating paign may turn out to be pretty con- morning memorial service for a the next few months, we’ll soon
had faced a litany of inquiries, both universal prekindergarten, building ventional—meaning Mr. de Blasio 2001 airliner crash that he missed watch Mr. de Blasio’s second inaugu-
state and federal, into his past politi- affordable housing, tackling police seems destined to win. Still, a the moment of silence. (He’d had a ration—provided that the mayor
cal fundraising. Did the mayor and brutality, and getting horse-drawn strong challenger would have plenty “very rough night, woke up slug- shows up in time to take the oath.
his cohorts violate election law by carriages full of Central Park sight- of ammunition: gross mismanage- gish.”) Then Mr. de Blasio’s tardi-
funneling hundreds of thousands of seers off city streets. (The animal- ment of the city’s Administration for ness to board a commercial flight Ms. Maldonado is a member of
dollars through upstate county com- rights group Nyclass came out heav- Children’s Services, numbers of out of JFK Airport left an entire the New York Post’s editorial board.
mittees? Did he trade government fa- ily against Mr. de Blasio’s rival in the
vors for donations to his now-defunct 2013 mayoral race.) Hizzoner raised

Notable & Quotable: Mere Fiscal Christianity


nonprofit? Manhattan’s U.S. Attorney $4.3 million for the nonprofit before
Preet Bharara—a prosecutor with a shutting it down last year, saying it
reputation for taking down politi- had done its job. A serious question,
cians on corruption charges—seemed though, is why it donors were From James Freeman’s Best of as they attempt to justify big gov- government that is much more hu-
to be circling Mr. de Blasio. largely people and groups with some the Web, WSJ.com, March 17: ernment. It’s not necessarily per- mane than the one that Jesus en-
sort of business or special interest suasive. countered. This raises the interest-
before the city. Nicholas Kristof of the New York The ancient book has numerous ing question of what Jesus would
Bill de Blasio seems Perhaps the shadiest was a spe- Times is having fun implying that admonitions to perform charity and say about our contemporary politi-
cial deal to lift deed restrictions on Speaker of the House Paul Ryan’s various condemnations of greed, cal debates. Perhaps he would gaze
destined for re-election a Lower East Side nursing home, effort to replace ObamaCare is at but it’s not easy to find a passage in approvingly upon the $4 trillion an-
now that prosecutors thereby allowing its owners to make odds with Mr. Ryan’s Catholic faith. which Jesus says that government nual federal budget and intone,
a $72 million profit by selling the The column is of a piece with the is the best vehicle to provide aid, or “Whatever you do to the least of my
say he won’t be charged. building, which will now be turned “Jesus was a socialist” arguments that anyone should force others to appropriations, you do to me.” But
into luxury condos. The deed-change that bounce around the left half of donate. would he still say that after examin-
was heavily backed by a local of the the social media universe. Even casual readers of the Bible ing all the line items? Beyond ques-
All that has changed. Mr. Bharara Service Employees International Without wrestling with any diffi- may notice that Jesus doesn’t get tions of specific allocations for
is now unemployed, fired by Presi- Union, which conveniently heavily cult questions of faith or logic, Mr. along all that well with the political Planned Parenthood and the like,
dent Trump last week after refusing backed Mr. de Blasio for mayor. Kristof simply casts the federal bu- authorities of his time and (spoiler would Jesus see even a relatively
to resign. Then on Thursday federal There’s also a lobbyist who worked reaucracy in the role of Jesus. Then alert!) his relationship with govern- benign government like ours as su-
and state prosecutors announced for the company that bought the the Timesman proceeds to suggest ment ends rather badly. Back then, perior to individual acts of charity
that they wouldn’t charge Mr. de building and had raised funds for the through satire that by seeking to re- tax collectors were not presumed to in comforting the afflicted?
Blasio after all. A statement from mayor and donated $10,000 to the duce outlays and improve incentives be the dedicated public servants In contrast to Mr. Kristof’s drive-
Mr. Bharara’s successor, the acting Campaign for One New York. But ev- in federal programs, Mr. Ryan is de- that we appreciate so much today. by, John Gehring nicely limns the is-
U.S. attorney, cited the “totality of eryone, of course, denies everything. fying the will of his God. Of course And in our own time, social conser- sues at the heart of this debate in a
the circumstances here.” A longer The SEIU says it didn’t know the if federal agencies were ever actu- vatives who think the U.S. govern- 2015 piece for the National Catholic
letter from the Manhattan district building would be sold. Mr. de Blasio ally given the statutory mission to ment has become hostile to reli- Reporter. . . . Mr. Gehring refers to
attorney, Cyrus Vance Jr., noted that says he found out about the deal do as Jesus would do, Mr. Kristof gion—Christianity in particular— a 2012 lecture Mr. Ryan delivered at
the campaign activity appeared from the news. would be as horrified as anyone. should consider what Jesus had to Georgetown University. “Simply put,
“contrary to the intent and spirit of While the investigations were go- But this seems to be a political sea- put up with. I do not believe that the preferen-
the laws” but said that under state ing on, Mayor de Blasio tried to shore son when people who spend much Fortunately, in part because of tial option for the poor means a
law “the parties involved cannot be up his cred with national progres- of the year driving religion out of the influence of the Bible on Amer- preferential option for big govern-
appropriately prosecuted.” sives. Hours after being interviewed public life abruptly drag it back in ica’s founders, we enjoy a form of 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. * * * * Saturday/Sunday, March 18 - 19, 2017 | A15

OPINION

Reach Across the Aisle, Mr. President


that Congress is so exhausted as an by triumphalist House Democrats,
institution, everyone’s ideologies so ignored the teaching of history and
played out, that they’re all just play- passed ObamaCare without a single
ing a part, going through the mo- Republican vote. The Democrats
DECLARATIONS tions, mindlessly replicating past bat- would get all the credit. In time they
By Peggy Noonan tles in hope of some new reward. got all the blame. Republicans had

A
Really, this week, that’s how it no incentive to bail them out.
ll the emphasis seems to looks to me. But the health-care system, as
be on cutting. We will cut I am among those who think it Ohio Gov. John Kasich has observed,
CPB, NPR, NEA. absurd that Republicans on Capitol is crucial. The Democrats must be in
Why aren’t we talking Hill decided to throw their initial at- on the process to achieve “true and
about growing and build- tention on a hopelessly complex and lasting reform.”
ing and knocking down barriers? convoluted health-care bill, and for No doubt Democrats would clean
Why aren’t we talking about jobs procedural reasons so obscure they up the program along more liberal
and a boom and reforming regula- sound like Stockholm syndrome: “We lines than Republicans, which would
tion and taxes so people can build must pay for the cuts or we blow up please their progressive base. But it

ASSOCIATED PRESS
and invest? in reconciliation.” How can you ex- would also please many in Mr.
Is cutting the absolute No. 1 pri- pect people to follow you when they Trump’s base.
ority right now? In a country that is, can’t even understand the marching If it worked, Mr. Trump would
in Pope Francis’ famous character- orders, or why they should take the crow he’s made the first big biparti-
ization of the modern world, “a field hill? And focusing on the replace- san deal in a generation—it’s a new
hospital after battle”? Is that what ment only highlighted party fissures. Donald Trump and House Minority Leader Nancy Pelosi on Inauguration Day. day. It might help on future biparti-
the Republican party wants to lead The party leadership appears to san efforts, such as infrastructure
with? Why isn’t the priority unleash- have lost control of events. They come to see as an entitlement. Some leadership. That may be changing. spending. And he can make it up to
ing, getting past limits, pushing to- view politics as the art of the possi- look at the country around them and Wednesday night he told Tucker Republicans with conservative regu-
ward dynamism and expansion? ble, which it is, but they have a see crises—in employment, drug Carlson on Fox News that the bill is latory and tax reform.
highly constricted sense of the pos- abuse, family formation, education. “very preliminary” and can be “ne- It would be no scandal if the pres-
sibilities. They put me in mind of the This is no time to make things gotiated” down the road. “We will ident threw in with Democrats and
For health-care reform observation that a great leader has harder for people, even for a while. take care of our people or I’m not moderate Republicans at the expense
more in common with an artist than Some are merely practical: Obama- signing it, OK?” Which is interesting of Republican leadership. He’s al-
to succeed, it requires an economist. Economists drill deep Care helped some of their constitu- because it contradicted Speaker Paul ways been philosophically unreliable,
buy-in and compromise in narrow fields, but the artist’s view ents and jerked others around with Ryan, who said March 6: “It’s not his commitments ever-changeable.
is more expansive; he’s more able to lost coverage and jacked-up deduct- that this is open for negotiation.” Everyone knows this. The American
from both parties. grasp the big picture, and see how it ibles. A fix can’t just spread the mis- The president should confound people hired him knowing it.
is changing. The GOP leadership ery around in a new way. expectations, pivot, and turn to the His supporters would forgive a
needs a greater artistic sense. Maybe So far they’re called moderates. I Democrats for a bipartisan deal. failed attempt to replace ObamaCare
All these old arguments—we have they can put in for a grant from the asked one of these, an officeholder Here is the tradition. If you are along Republican lines. But they
to have them now? Why? Because NEA before it’s too late. who cares about mental-health Franklin Roosevelt in 1935 and you wouldn’t forgive a bad bill that suc-
it’s important for a party to prove it The leadership’s foes on the right needs and the opioid epidemic, if he want to create Social Security—an ceeds.
doesn’t know what time it is? comport themselves like the original was experiencing himself as a popu- act that affects Americans very per- In a telephone interview Mr. Ka-
How about a little prudence and uncompromised men. They are, to list. He said he has in the past been sonally—you get the other party in sich said, “Ronald Reagan made
patience? The priorities should be their credit, almost alone in their called a “positive populist.” which he on it. You need them co-owning it, deals with Tip O’Neill on Social Se-
jobs, growth, social cohesion and an willingness to declare their philo- liked: It suggested a realistic yet invested in it. You want the Ameri- curity.” All the big reforms of the
atmosphere, in Washington, of con- sophical predicates and resultant generous assessment of the actual can people saying, “Congress did past—of welfare, of the Pentagon—
structiveness. We don’t need any policy commitments. But they are lives of his constituents, joined with this,” not “the Democrats did this,” were bipartisan efforts. Progress will
new culture wars—we’ve got enough, supporting players in the drama, “a can-do spirit that we can help because if they say the latter the re- come when both parties end “the
thanks! Is the worst thing that could their numbers are not growing, and each other individually and with the form will always divide. FDR got 81 civil war” over health care. Biparti-
happen in the world right now that a there’s something exhausted about government.” But “negative popu- Republicans to vote for it in the sanship must come back if things are
kid from New Jersey can come into them, too. lism,” carries the connotation of House, and 284 Democrats. The to work.
Manhattan and see an off-Broadway There is a third group emerging darkness and resentment: “Someone same with Medicare in 1965: Lyndon As he spoke I thought: a biparti-
show seeded with a $30,000 grant that doesn’t have a name. They see took something from me.” So he Johnson did all he could to get the san deal on health care would also
from the National Endowment for themselves not as philosophers or sticks with the label Republican. GOP on board. A majority of House be a boost to the national morale. It
the Arts? No, that’s not the worst ideologues but as people who live in President Trump should have Republicans supported it. wouldn’t be about constricting and
thing that could happen! reality. Some are tough-eyed: Ameri- been the leader of this group but Barack Obama, full of himself af- cutting. It would feel expansive, con-
The worst that could happen is cans will never give up what they’ve threw his lot with the congressional ter his 2008 victory and surrounded structive, even hopeful.

Would You Rather See Trump’s Tax Return or Have Saturday Off?
By Amity Shlaes Couzens publicly trashed Mellon’s special Senate committee to investi- how much tax people like Andrew days a week. If the choice was be-

A
argument. “You have produced no ev- gate the Bureau of Internal Revenue, Mellon paid. tween relishing a plutocrat’s embar-
mericans tend to be interested idence that lowering the rate of sur- thereby gaining access to Mellon’s For months the papers entertained rassment and Saturday off, most
in presidential tax returns tax to a minimum of 25 percent will tax history. readers with reports of various workers took the Saturday.
partly because presidents tend increase the income from the surtax,” Mellon then made another rash Americans’ tax bills and guesses at Mellon’s tax touch became so pop-
to be wealthy. But our tradition of Couzens wrote Mellon. There was no decision. He authorized his tax offi- the level of income from which the ular that there was much support
tax privacy shields the returns of evidence, he said elsewhere, that re- cers to scrutinize Couzens’s returns. tax was derived. Film star Charlie when in 1926 he and President Calvin
wealthy Americans from prying eyes. ducing surtaxes on the rich “would be Chaplin had paid $345 in tax, but Coolidge slashed the top income-tax
That wasn’t always the case. In good for the country as a whole.” how much he’d made was a mystery. rate to 25%. The same 1926 legisla-
1924 Congress passed a tax law that The ordinarily sage Mellon made Make the economy roar The wealthy J. Ogden Armour of Ar- tion repealed the Peeping Tom rule—
included what was known as a “Peep- the error of hitting back personally. like it did in the 1920s mour & Co. in Chicago did not appear with surprisingly little notice.
ing Tom” provision. It required that “It is reported in the newspapers that to pay any taxes at all. Why not? Tax cuts did indeed fill the Trea-
the names of all taxpayers, and the all your capital is now in tax-exempt and the issue will go away. Maybe that was a story. But many sury’s coffers, as Mellon supposed
amount of tax they paid, be made securities and I have not seen any de- Americans found themselves a bit they would. And after the rate cuts
public. Unbelievably, the information nial from you,” he wrote to Couzens. embarrassed at this airing of tax the rich bore a greater share of the
was posted on the walls at regional “This means, if it means anything, The move backfired when his investi- laundry. “This is the annual snooping tax burden. The Peeping Tom story
tax offices. that you pay no income tax.” gators discovered that the senator festival under government auspices,” of the 1920s suggests what President
The Peeping Tom provision at first Couzens, no dummy, saw his had overpaid, not underpaid. concluded the New York World. Trump might do today: prioritize tax
grabbed more attention than the rest opening. If Mellon brought up his The 1924 tax deal reflected the The public was less interested in cuts. Presiding over an expanding,
of the 1924 law. But other parts of tax returns, Couzens could bring up Mellon-Couzens feud. The old-time the tax strategies of the rich than productive economy, he may find
the legislation—income-tax rate cuts, Mellon’s. “So long as you have en- Republicans got a rate cut, though they might have been for other rea- that stories about his tax returns no
specifically—ultimately proved more tered into the record of my securi- not as dramatic as the one they sons. The economy expanded dra- longer hold the headlines.
consequential. That has relevance for ties,” he wrote Mellon, “will you sought: The new top rate was 46%. matically during the mid-1920s. Pro-
President Trump’s tax policy. please tell us what your securities The progressives got the Peeping ductivity was so strong that big Miss Shlaes is the author of the bi-
The Peeping Tom story starts in are?” Couzens demanded, and got, a Tom provision—a chance to learn companies let employees work five ography “Coolidge” (Harper, 2013).
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
Russia’s Yahoo Hack Shows Risk of Spies Run Amok
revenue lawmakers expected. Many To save Rachel nel and priorities of the intelligence linked to Shaltai-Boltai, a hacker their national security. On the con-
of the wealthiest Americans took to Maddow embar- services are in charge. group that exploits stolen data to trary, their neighbors clamor to be
dumping money into tax-exempt mu- rassment, it should Secret information is the obses- embarrass and blackmail Russian part of NATO. Their grafting leaders
nicipal bonds, a strategy to which the be noted that Don- sion of such states, and of the people politicians and business officials. have led them into four wars, in
progressive wing of the Republican ald Trump was not who staff them. They crave hidden Only one of the four defendants Chechnya, Georgia, Ukraine and
Party did not object. president when the data with which to blackmail, under- named by the Justice Department is Syria. Relations with key trade part-
The progressives believed the so- Russia-sponsored mine or discredit their enemies. Who likely to see a U.S. courtroom: Karim ners like France and Germany have
BUSINESS
lution to the revenue problem was to hack of Yahoo oc- are their enemies? Truth tellers, for- Baratov, a Canadian resident alleg- been consigned to the dumpster.
WORLD
raise rates again, or shame the curred in 2014. eign and domestic, of any kind, in- edly hired by the FSB to crack open, Their economy is weighed down by
By Holman W.
wealthy into paying more tax. The He was president cluding those similarly selfishly mo- looting and corruption. Even as
Jenkins, Jr.
loudest voice among them belonged this week when the tivated. Policy debate barely exists fracking devastates the Kremlin’s
to Michigan Sen. James Couzens, a Justice Department in Russia. For such states, delivering When intelligence agencies conventional oil and gas revenues,
millionaire who had made his money indicted two Russian officials and two adequate results for their peoples, or Russia is cut off by sanctions from
at Ford Motor Co. Russia-backed freelance hackers for even for significant internal constit- use their powers for Western technology to develop its
Treasury Secretary Andrew Mel- these cybercrimes. uencies, is not the priority. Using se- domestic fights and self- own fracking potential.
lon, even wealthier than Couzens, Ms. Maddow, an MSNBC host, cret information—kompromat—to Mr. Trump untweeted himself
had a different plan for increasing would seem to be at high risk of get- wage war on anybody who threatens advancement, look out. back into the world of the credible
revenues. Mellon reasoned that the ting this information backward in their power is the main agenda. this week with his revision of his
government was like a railway owner her urgency to deliver a scoop on That’s the real story of this week’s phone-tapping allegations. When he
and should charge only “what the the evils of Mr. Trump. Justice Department charges in the using the stolen data, a handful of tweeted that President Obama had
traffic will bear.” Lower rates, he What this week’s Yahoo indict- Yahoo attack that violated 500 mil- specific Google and Yahoo accounts tapped his phone lines, he didn’t re-
thought, would bring more business ments really show is the squalor of a lion private accounts. of persons of interest to Russia’s FSB. ally mean President Obama and he
activity, and therefore more revenue. state like Russia’s, where the person- Two of the indictees not only Mr. Baratov, 22, has been easily iden- didn’t mean phone lines—he meant
work for the FSB, the Russian suc- tified by private cybersleuths U.S. spy agencies, in their broad sur-
cessor agency to the Soviet-era KGB, through social media postings show- veillance efforts, taking undue inter-
they work for the division that is ing off his fancy cars and through his est in Trump associates.
PUBLISHED SINCE 1889 BY DOW JONES & COMPANY supposed to cooperate with Amer- ownership of websites offering email- We already know as much from
Rupert Murdoch Robert Thomson ica’s FBI on cybercrime investiga- cracking services. His tradecraft, their interception and leak of infor-
Executive Chairman, News Corp Chief Executive Officer, News Corp tions. What’s more, one of these offi- ahem, is apparently low-grade. mation about a phone call between
Gerard Baker William Lewis cials, the former hacker and now Intelligence agencies are neces- former Trump adviser Mike Flynn
Editor in Chief Chief Executive Officer and Publisher Russian major Dmitry Dokuchaev, sary and useful national assets, but and the Russian ambassador. We
Matthew J. Murray DOW JONES MANAGEMENT: was himself arrested recently on we should not kid ourselves about know from the New York Times that
Deputy Editor in Chief Mark Musgrave, Chief People Officer; what the Moscow press calls “trea- the tendencies on display here. Espe- the outgoing Obama administration
Edward Roussel, Innovation & Communications;
DEPUTY MANAGING EDITORS: Anna Sedgley, Chief Operating Officer & CFO;
son” charges, allegedly for passing cially when intelligence professionals hoped to aid such leakage by making
Michael W. Miller, Senior Deputy; Katie Vanneck-Smith, President information to the CIA. A plausible involve themselves in domestic po- sure any damaging information was
Thorold Barker, Europe; Paul Beckett, OPERATING EXECUTIVES: version, told in the Russian media litical fights, or use their powers to circulated in unusually wide fashion
Washington; Andrew Dowell, Asia; Ramin Beheshti, Product & Technology;
Christine Glancey, Operations;
and by Western cybersecurity ex- pursue narrow bureaucratic or per- among its loyalists in government
Jason P. Conti, General Counsel;
Jennifer J. Hicks, Digital; Frank Filippo, Print Products & Services; perts, is that Maj. Dokuchaev was sonal interests, any similarity to before leaving office.
Neal Lipschutz, Standards; Alex Martin, News; Steve Grycuk, Customer Service; among many criminals working in- James Bond flies out the window. “There are no free passes for for-
Ann Podd, Initiatives; Matthew Rose, Enterprise; Kristin Heitmann, Transformation;
Stephen Wisnefski, Professional News
side Russia’s intelligence bureau- In Russia’s case, we’re talking eign state-sponsored criminal behav-
Nancy McNeill, Advertising & Corporate Sales;
Paul A. Gigot, Editor of the Editorial Page; Jonathan Wright, International cracy. For personal profit, he sold in- about slobs and sociopaths who have ior,” Acting Assistant Attorney Gen-
Daniel Henninger, Deputy Editor, Editorial Page DJ Media Group: formation to intermediaries that nothing to fear from the law because eral Mary B. McCord said in
Almar Latour, Publisher; found its way to the CIA. they are the law, and thus don’t nec- unveiling this week’s Yahoo-related
WALL STREET JOURNAL MANAGEMENT: Kenneth Breen, Commercial
Suzi Watford, Marketing and Circulation; Professional Information Business: Also apparently implicated in the essarily invest heavily in finesse, dis- indictments.
Joseph B. Vincent, Operations; Christopher Lloyd, Head; case are various rivalries inside the cretion or good judgment. For the It will inevitably be necessary
Larry L. Hoffman, Production Ingrid Verschuren, Deputy Head Kremlin intelligence establishment Russian people, turning their state from time to time to test whether
EDITORIAL AND CORPORATE HEADQUARTERS: as well as inside the Russian cyber- over to siloviki, or politicians de- that proposition also applies to do-
1211 Avenue of the Americas, New York, N.Y., 10036 crime underworld with which it scended from the intelligence ser- mestic state-sponsored criminal be-
Telephone 1-800-DOWJONES
overlaps. Maj. Dokuchaev has been vices, has not noticeably improved havior.
A16 | Saturday/Sunday, March 18 - 19, 2017 * *** THE WALL STREET JOURNAL.

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© 2017 Dow Jones & Company. All Rights Reserved. * * * * THE WALL STREET JOURNAL. Saturday/Sunday, March 18 - 19, 2017 | B1
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Goldman Chief Took 4% Pay Cut in 2016


Decline in cash bonus to $4 million from $6.3 million million of his stock-based bo- tied to their own, also had
last year, while his salary re- nus is in the form of units that pushed in the years following A Payday Rivalry
put Blankfein’s total mained the same at $2 million. are awarded based on Gold- the financial crisis for banks Annual pay award for heads of two largest investment banks
behind that of Morgan The Goldman CEO, who man’s returns over the next to de-emphasize cash bonuses
Goldman CEO Lloyd Blankfein Morgan Stanley CEO James Gorman
took the role more than a de- few years. In 2014 and 2015, in favor of awards paid in
Stanley CEO Gorman cade ago, joins Citigroup Inc.’s only half of Mr. Blankfein’s bo- company shares. $25 million
Michael Corbat as the only nus hinged on future returns In another nod to share-
BY LIZ HOFFMAN CEO of a big Wall Street firm in this way. Before that, none holders, Goldman based its bo- 20
to get a pay cut for 2016. Bank did, though any stock-based nuses for 2016 on returns that
Goldman Sachs Group of America Corp.’s Brian Moy- bonus gets more valuable if will be judged relative to its
Inc.’s board cut Chief Execu- nihan, J.P. Morgan Chase & the share price rises. banking peers, not on an abso- 15
tive Lloyd Blankfein’s pay by Co.’s James Dimon and Mor- The changes come after just lute basis. That may actually
4% and tied more of it to how gan Stanley’s James Gorman 66% of shareholders approved bring higher payouts in the
the bank does for its investors, all got raises. Mr. Gorman, the bank’s pay plan last year, short term; Goldman has 10
a sign that even the powerful whose firm is a fierce rival of an unusual rebuke. Goldman’s posted better returns on eq-
and profitable Wall Street firm Goldman, outearned Mr. directors “viewed this out- uity than most rivals in recent
isn’t immune to investor pres- Blankfein for the first time come as an indication that fur- years, but has repeatedly 5
sure. since he became Morgan Stan- ther engagement was needed” fallen short of the 11% abso-
Mr. Blankfein received $22 ley CEO in 2010. and spent the fall getting feed- lute figure needed for Mr.
0
million in total pay for 2016, Goldman also tied more of back from investors. Blankfein and other top execu-
according to a regulatory fil- Mr. Blankfein’s pay to the Shareholders, who generally tives to receive their maxi- 2010 ’11 ’12 ’13 ’14 ’15 ’16
ing Friday. His cash bonus fell bank’s performance. All $16 like to see executives’ fortunes mum bonus. Source: the companies THE WALL STREET JOURNAL.

Funds Offer Google


New Way Promises
To Invest Brands
In Property More Say
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.
On Ads
But the approach also carries BY JACK NICAS
its own risks.
These funds largely invest Google on Friday said it
directly in property, rather plans to give advertisers more
than in real- control over where their ads
MICHAEL BUCHER/THE WALL STREET JOURNAL

estate in- appear online after major cli-


vestment ents in the U.K. withdrew their
trusts, or spots because some ads ran
REITs, before extremist videos on its
which are YouTube site.
THE pools of Tensions between Google,
INTELLIGENT properties the world’s biggest advertising
INVESTOR that trade platform, and its advertisers
JASON ZWEIG like stocks. have increased over the past
Their key several days following a report
selling point showing ads by the British
is high income derived from government and several com-
rental payments. They have David Miller, a Princeton University professor by day, reviews projects or ideas in which top Citigroup executives have concerns. panies—including French cos-
also been less prone than metics giant L’Oréal SA and

The Soul of Citigroup


REITs to big price moves. British grocery chain J Sains-
“A lot of investors will bury PLC—appeared before
trade in and out of REITs videos supporting terrorist
based on what’s happening groups.
elsewhere in the markets
rather than what’s going on
Former banker turned ethicist consults on issues of business and morality In response, many advertis-
ers, including the British gov-
in real estate,” says Gerry ernment, pulled their spending
Casimir, portfolio manager BY CHRISTINA REXRODE Miller, who spent years in Dr. Miller’s role at Citi- mother, your mentor, the from YouTube and the Google
of the $24.5 billion TIAA banking before going to sem- group is strategic. He media and—if you’re in- Display Network, a network of
Real Estate Account, avail- Can a big bank have a inary, acknowledges the di- doesn’t walk the trading clined—your maker think? more than 2 million websites
able to retirement-plan par- conscience? Citigroup Inc. chotomy—and the ribbing floor, hold office hours at Dr. Miller also tries to get that partner with Google to
ticipants. In a fund that in- hired one. from friends and colleagues call centers or even have an the bank to look beyond pro- serve ads.
vests directly in commercial David Miller is an on-call who thought he had sold his office. Instead, he reviews grams such as whistleblower The British unit of France’s
property, however, you get ethicist the bank consults on soul when he agreed to work projects, ideas and locations hotlines and compliance Havas SA, the world’s sixth-
“returns that reflect the per- weighty questions of right with Citigroup. where top executives have training to human impulses. largest ad-agency holding
formance of investment real and wrong, “You need banking, just concerns. The problem, he adds, isn’t company, said it was suspend-
estate, rather than the va- WEEKEND supplementing like you need pharmaceuti- The bank describes his the bad apples. Rather, it is ing all advertising on YouTube
garies of the stock market.” PROFILE its armies of cals,” says the 60-year-old role as providing “advice and how easy it is for good em- and the Google Display Net-
Most of these portfolios lawyers and New Jersey native. “And input to senior manage- ployees to justify bad deci- work for its clients in the U.K.,
are known as interval funds, compliance of- pharma can save lives, or it ment.” His conversations sions when they face gray- including Domino’s Pizza Inc.
a quirky structure offered ficers. A Princeton University can kill and cause addic- with top executives like zone questions. and British mobile operator
through financial advisers professor by day, Dr. Miller tions.” Chief Executive Michael Cor- Citigroup, with a reputa- O2, because it couldn’t be as-
that allows investors to buy has worked with Citigroup If the topic is philosophi- bat filter through the organi- tion for ethical problems be- sured that the “environment is
daily but sell only once a intermittently for the past cal, the stakes aren’t. As Citi- zation. fore and after the financial safe, regulated to the degree
quarter. Fees are stiff, gener- three years to tackle abstract group President James Forese At a meeting with manag- crisis, brought on Dr. Miller necessary and additive to their
ally running at least 2.5% an- issues about banking and pointed out in a 2015 industry ing directors, for example, at the behest of Mr. Corbat. brands’ objectives.”
nually. morality. conference, the bank made $1 Mr. Corbat raised an idea The CEO was surprised when Havas SA said its British
“Individuals aren’t Those are squishy topics million in revenue from dubi- that came from Dr. Miller. In employee surveys found unit’s policy was “a temporary
Yale…they need liquidity,” for Wall Street, where ag- ous foreign-exchange trading an uncertain situation, Mr. some workers weren’t com- move made by the local team”
says Ramin Kamfar, chief ex- gression is a virtue and mak- and paid roughly $2.5 billion Corbat said, ask the four fortable escalating concerns and that Havas didn’t change
Please see INVEST page B7 ing money a necessity. Dr. in penalties. M’s: What would your Please see SOUL page B2 its use of Google globally.
Google, a unit of Alphabet
Inc., said in a blog post that it

Glencore Masters the Zinc Market and Revival Ensues has “heard from our advertis-
ers and agencies loud and
clear that we can provide sim-
pler, more robust ways to stop
BY SCOTT PATTERSON down production amounting fect,” he said. duction to lift prices. 8% of global mined output, ac- their ads from showing
AND TIMOTHY PUKO to 4% of global production of While the prices of zinc and On the earnings call, Mr. cording to Macquarie, ahead of against controversial content.”
zinc. Prices for the metal have other commodities have been Glasenberg said zinc prices Teck Resources Ltd. (6%) and The company said it has
No one in the world mines climbed 70% since as demand powered by Chinese demand, had fallen so low in 2015 that Vedanta Resources PLC (4%). started reviewing its policies
more zinc than Glencore PLC. has outpaced supply, outper- analysts said zinc’s greater it made more sense to keep it Glencore also controls and “will be making changes
No one in the world trades forming copper (up 15%) and buoyancy was a demonstration in the ground for the long run. about half the world’s trading in the coming weeks to give
more of this essential metal aluminum (up 20%) during a He credited zinc’s price rise of zinc metal and the raw ma- brands more control over
for making steel. And no one broad-based global commodi- with Chinese demand and terial that makes it, excluding where their ads appear across
has gotten richer, taking mines ties rally. “voluntary cutbacks” of supply domestic Chinese production, YouTube and the Google Dis-
out of production and with-
holding refined zinc from the
market to drive prices higher.
Chief Executive Ivan Gla-
Mr. Glasenberg is outspo-
ken about Glencore’s approach
to managing supply and thus
market prices, something that
70%
Zinc’s price rise since 2015 when
like Glencore’s, “one of the
leaders in that area.”
Analysts agreed. The price
rally has “been driven by Glen-
according to Wood Mackenzie
and other analysts, roughly
the same level it last publicly
disclosed in 2011.
play Network.”
The advertising industry is
starting to demand more
transparency and say over
senberg says his company is is typically verboten for min- Glencore said it would trim output core’s decision,” said Vivienne The company began mining placement of their ads after
reaping the rewards of a bold ing executives, who are wary Lloyd, a metals analyst at in- zinc in the 1980s, when the several reports showing big
and risky strategy that helped of complaints about market vestment bank Macquarie firm was run by the late finan- brands being promoted along-
reverse the mining-and-trad- power. Group Ltd. cier Marc Rich. Its acquisition side hateful content and fabri-
ing behemoth’s downward spi- “When we cut back our zinc of one company’s market Glencore has said it can pull of miner Xstrata in 2013 ex- Please see GOOGLE page B2
ral and turn it into a profit- production, we looked at the power that is rare in the com- it off because it combines one panded its production assets
INDEX Insider-Trading Spotlight.... B4
making machine. benefit it had on the rest of modity market. Other miners of the world’s largest mining in a heavily traded metal that Bond Tables................................... B7 Markets Digest............................ B6
Zinc prices jumped 7% on our zinc production,” Mr. Gla- such as Rio Tinto PLC and BHP divisions with a savvy com- is expected to become more Cash Prices..................................... B8 Money Rates................................. B4
the day in October 2015 when senberg said on an earnings Billiton Ltd., which have large modity-trading house. widely used in developing Dividend News............................ B8 Mutual Funds............................... B4
Exchange-Traded Funds...... B4 New Highs & Lows................... B8
the Switzerland-based com- call last month. The result for positions in iron ore, have de- Glencore is the world’s larg- economies such as India and Futures.............................................. B7 Stock Listings............................... B5
pany said it was shutting prices: “A very positive ef- cided against pulling back pro- est zinc miner, accounting for Please see ZINC page B2 Heard on the Street.............. B10 Weekend Investor..................... B7
B2 | Saturday/Sunday, March 18 - 19, 2017 * ***** THE WALL STREET JOURNAL.

INDEX TO BUSINESSES BUSINESS & FINANCE


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
I
International Business
Machines ............. B1,B2
International
Consolidated Airlines
Ryanair Holdings........A1
S
Samsung Electronics..A6
Singapore Airlines A1,A8
AmTrust Shares Slide 19%
Akzo Nobel..................B3 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
American Airlines Group
..........................A1,A8,B3
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
Amgen.......................B10
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-
AmTrust Financial Entertainment..........B4 and Exchange Commission. AmTrust has moved from a tors showed “adverse develop-
Services.....................B2
JPMorgan Chase.........B1
Southern ................... B10 report following errors But AmTrust now says it niche insurance firm into one ment” in reserves for several
Apple...........................B1 L Southwest Airlines can’t meet the extended dead- of the country’s largest work- years. Barron’s is owned by
B Lions Gate ............................... 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
Bank of America.........B1 AND MICHAEL RAPOPORT financial results going back to according to SNL Financial LC. Wall Street Journal.
Lucasfilm.....................B4 Swatch Group ........... B10
BHP Billiton................B1 2014 shouldn’t be relied upon. A surge in gross written in- Last month, when AmTrust
BRF..............................A8 M T Shares of AmTrust Finan- AmTrust said it would file its surance premiums and net op- first disclosed accounting er-
C Marvel EntertainmentB4 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
Chainalysis..................B9 day to a 52-week low after the In a statement Friday, a surging stock price. AmTrust $65 million against its fourth-
Chipotle Mexican GrillB3 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
Citigroup......................B1 state its last three years’ pointed” to have a further de- years and has a market capital- of adverse development in re-
Comcast.......................B4 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.
D UBS Group...................B9
delay filing its annual report. but the company reiterated its On Friday, AmTrust fell $4.03 AmTrust said Friday it isn’t
Delta Air Lines A1,A8,B3
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
Deutsche Lufthansa 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
............................... A1,A8
DreamWorks Animation 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-
.....................................B4 .....................................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
E P 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.
Elliott Management ... B3
Pershing Square Capital .....................................B3
Eurowings..............A1,A8
Management.............B3 Viacom.........................B4
G Volkswagen.................B3
Pixar Animation Studios
General Electric .......... B4 W
.....................................B4
Glencore ...................... B1
Porsche Automobil Walt Disney................B4
Goldman Sachs Group B1
Holding......................B3 Y
Green Street Advisors
.....................................B7 R Yahoo...........................B3
Griffin Capital.............B7 Rio Tinto ..................... B1 Yext ........................... B10

INDEX TO PEOPLE
A Gorman, James...........B1 P
Ackman, William ........ B3 Gorsky, Alex................B1 Parry, Matt..................B9
Anderson, Caleb..........D6 Greensted, Richard.....B2 Piech, Ferdinand ......... B3
B H R
Bakish, Bob.................B4 Hayek, Nayla.............B10 Rometty, Ginni............B1
Baradaran, Natasha....D7 Hayek, Nick...............B10 Rothman, Tom ............ B4
Bikoff, Sasha .............. D6 Hurley, Patty...............B2 S
Blankfein, Lloyd..........B1 J Sanderse, Menno........B2

MICHAEL BUCHER/THE WALL STREET JOURNAL


Bogle, John.................B2 Jayne, Thomas............D6 Shane, David...............D4
C K Shields, Kevin.............B7
Carlino, Mario.............D4 Kamfar, Ramin............B1 Shirinian, Natalie ....... D6
Carrier, Jesse..............D6 Koch, Bill.....................D4 Smyth, Matthew........D6
Casimir, Gerry.............B1 Snowden, John ........... B7
L
Cook, Tim....................B1 Stringer, Tom..............D6
Leifer, Bennett ........... D7
Corbat, Michael...........B1 T
Lloyd, Vivienne...........B1
D Thummel, Rob.............B9
M Tucker, Suzanne..........D6
Dimon, James.............B1
Mandel, Rob................D4
Dorin, Ian....................D4 W
Mayer, Marissa...........B3
E McGukin, Drew...........D6 Waldman, Adam.........D4
Elhage, Samih.............B3 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
F-G Morris, Jennifer Jean.D6

ZINC
Moynihan, Brian ......... B1 X
Feinberg, Ken..............B2 Glencore’s zinc strategy has it—to send supply and demand But Wood Mackenzie esti-
Forese, James.............B1 N-O Xu, Lin.........................B1 risks. As prices rise and pro- into a surplus or deficit. mates that about 200,000 tons
Gianopulos, Jim..........B4 Nussbaumer, MichelleD6 Y duction becomes more profit- Mr. Glasenberg said in Feb- of zinc sit unsold there, show-
Glasenberg, Ivan.........B1 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

SOUL 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
Continued from the prior page two remain friends and are prices are historically high, expectedly, prices could plunge. Analysts at Macquarie esti- mines, which can pump out
about possible wrongdoing. 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
Mr. Corbat was also moti- 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
vated by the banking indus- 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-
try’s image problem. “If you job as an attorney at Skad- late into higher auto prices February: “We don’t under- the amount Glencore cut in products.
look today at what the poll den, Arps, Slate, Meagher & and make steel used for con- stand China, exactly what may 2015. The company’s zinc shut-
numbers say, what the gen- 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
eral population says, there is ethics at Notre Dame Law the lightly regulated global day to the next.” ting revenue it might lose about the same time it
distrust of banks,” Mr. Cor- School’s London campus. zinc market, there are few Mr. Glasenberg has said from the production cuts. It launched a comeback plan
bat said in an interview. 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
Despite that, Dr. Miller be- tugging. market share beyond some per and coal prices with sup- money no matter which direc- 2015, when investors con-
lieves banks can change. “To When he penned a letter countries’ antitrust regula- ply cuts, though with less ef- tion commodity markets are cerned about its high debt
make the assumption that an 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
organization cannot be more study theology at Princeton, Instead, international com- Zinc traders often compare weaker commodity prices. down to record lows.
ethical than it was is to give he was embarrassed to use modity traders and miners gen- Glencore to the Organization Glencore’s zinc supremacy Glencore returned to profit
up before you start,” said the the word “calling.” erally resist cutting output for of the Petroleum Exporting is illustrated at its San Juan in 2016, with net earnings of
professor, who declined to “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
say how much the bank pays 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
him. “It is not naive. It is a 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
realistic and necessary goal.” 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.”
Citi’s global reach Dr. Miller assumed he
posed an unusual
challenge in dealing
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-
with local customs. 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
At Princeton, where Dr. During his doctoral studies, The videos that sparked the more.”
Miller runs the university’s Dr. Miller also began advising most recent controversy, re- Advertisers can also black-
Faith & Work Initiative, he senior executives. While he vealed in stories in the Times list certain YouTube channels
works from a cramped room has worked with different of London, were made by sup- or sites in the Google network.
RUBEN SPRICH/REUTERS

piled with books by John companies, Citigroup posed porters of terrorist groups, in- Google is planning to ask ad-
Bogle and John Calvin, Mar- unusual challenges including cluding Islamic State and a vi- vertisers and ad agencies what
tin Luther and Martin Luther operations in nearly 100 olent pro-Nazi group, and additional controls they want,
King Jr. Posters advertise countries where local cus- were broadly condemned. but it declined to comment
Q&As he conducted on the toms produce varying stan- Procter & Gamble Co., the further on potential changes.
intersection of faith and work dards of right and wrong. world’s top advertising Havas UK, which spends
with Mr. Bogle, the founder Last month, Citigroup spender, has publicly com- WPP Chief Executive Martin Sorrill said that Google and about $217 million annually on
of Vanguard Group, and for- confirmed that it, along with plained in recent months Facebook must take more responsibility in screening content. digital advertising in the U.K.,
mer pay czar Ken Feinberg. other banks, is being investi- about problems in the digital- said it decided to pull its You-
That wasn’t always his ca- gated over whether it im- ad industry, including ads be- British Advertisers, a British they are appropriate for ad- Tube spending because Google
reer trajectory. As an under- 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
graduate at Bucknell Univer- 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-
sity, he studied business and Asia, where it can be a com- chief, Marc Pritchard, has from its inventory of ad slots miss many videos because of- priate content.
helped run fraternity parties mon practice but can violate called on advertisers to in- any YouTube videos or web- fensive content can be nu- Martin Sorrell, chief execu-
and a rock-concert commit- U.S. laws. crease pressure on the effec- sites that “it cannot guarantee anced. tive of the world’s largest ad
tee. His career featured 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
stints at International Busi- 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
ness Machines Corp., State lenses to apply in ethical de- gether account for roughly pushed Google to study of websites or videos, includ- Facebook must take more re-
Street Corp. and what was cision-making, an approach half of world-wide digital-ad whether it should first review ing those that are porno- sponsibility in screening con-
then Midland Securities in influenced by Plato and Aris- revenues, according to esti- videos before placing ads on graphic, promote illegal be- tent on which they place ads.
London. totle: Is it right, good and mates from research firm them, rather than automati- havior or incite violence. “They cannot masquerade as
Dr. Miller’s poise im- fitting? Citigroup executives eMarketer. cally placing ads on videos af- Google also allows advertisers technology companies, partic-
pressed colleagues at Mid- composed their own three Advertisers are also con- ter they are uploaded. “Google to exclude their ads from be- ularly when they place adver-
land, which in the early 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.
1990s was struggling. “You 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-
walk into a room where you 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
would think, ‘Oh God, I can’t temically responsible? The companies say they are L’Oréal and Sainsbury, two fane or discusses tragedies. brand safety technology but it
deal with this guy, he’s im- Citigroup is sharing the auditing their metrics. of the companies whose ads Google said it employs is not infallible.…We have
maculate, he’s tall, he looks idea with employees and On Friday, the British gov- appeared during the videos thousands of people to stop communicated at the highest
like a movie star and had plans to work it into training ernment demanded that supporting terrorist groups, violations of its ad policies. levels with Google and are
this 200-watt smile,’ ” said 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
Richard Greensted, who the questions in its mission explanation soon about how comment. year it removed more than respect of un-curated content,
worked with him at Midland. 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.”
“But he was very, very good around the world, including pearing on inappropriate con- ploys software to automati- inventory and blocked ads —Nick Kostov, Jenny Gross
at putting people at ease.” in big letters in the lobby of tent. cally scan YouTube video titles from more than 300 million and Suzanne Vranica
Dr. Miller eventually fired 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%

Apple t23%
BY TRIPP MICKLE at the China Development Fo-
rum, a gathering of China’s se- Xiaomi t36%
Apple Inc. launched a new nior leadership and global
round in its charm offensive in business executives that be- 0 40 80
China, announcing two addi- gins Saturday. Mr. Cook has Note: 2016 data are preliminary
tional research-and-develop- visited China numerous times, Source: IDC
ment centers ahead of but it will be his first speech Tim Cook, shown last month, is slated to speak to China’s leaders and global business executives. THE WALL STREET JOURNAL.
speeches Chief Executive Tim to the forum, which is hosted
Cook is scheduled to give at a by an arm of the State Council, pearance at what is scheduled Greater China, which includes half the devices’ battery life supported 4.8 million jobs in
major Chinese government China’s cabinet. The guest list to be a closed-door event Taiwan and Hong Kong, fell remained. Apple said a limited China.
conference. of the event, which is held at points up Apple’s balancing 17% in its latest fiscal year to number of phones were af- Longer term, though, Ap-
The new centers, to be set the Diaoyutai State Guest- act in a huge market for its $48.49 billion, as Huawei fected and offered free re- ple’s business is out of step
up in Shanghai and Suzhou, house in Beijing, also includes products; while the company Technologies Co. and other placement batteries for those with the Chinese government’s
bring Apple’s total commit- International Business Ma- champions values at home Chinese companies gained devices. goal to reduce its dependence
ment to R&D facilities in China chines Corp. CEO Ginni Rom- such as individual privacy and share against its iPhone—al- China is a critical manufac- on expensive foreign technol-
to more than 3.5 billion yuan, etty and Johnson & Johnson media accuracy, it must also though Apple said sales stabi- turing hub for Apple—a fact ogy, and facilitate the develop-
or about $500 million, the CEO Alex Gorsky. deal with a Chinese govern- lized in the most recent quar- that triggered criticism during ment of homegrown competi-
company said Friday in an an- The Apple chief is also ment that tightly limits speech ter in mainland China. the election campaign last tors like Huawei, Xiaomi Corp.,
nouncement issued only in slated to make introductory and other individual freedoms. Apple last year was forced year from then-candidate Don- Oppo and Vivo.
Chinese. Apple currently oper- remarks at the event on Mon- Apple confirmed Mr. Cook’s to halt its online music and ald Trump, who said Apple “Apple is annoying to China
ates a center in Beijing and day for a session titled “Secu- scheduled appearances. book services in China because should make more products in because it’s selling phones and
last year committed to open- rity and Governance in Cyber- The company is grappling they violated local media the U.S. The vast majority of sending money back to the
ing another in Shenzhen. space” featuring Xu Lin, who with rising pressure from rules. The company also faced its products sold world-wide United States,” said Roger Kay,
Mr. Cook is expected to as head of China’s Cyberspace homegrown rivals and a string criticism from local consumer are made in China by contract an analyst at Endpoint Tech-
mention those commitments Administration presides over of other setbacks in China, its groups last year amid reports manufacturers such as Fox- nologies Associates Inc. “It’s
in a speech on innovation and the nation’s internet censor- most important market out- that iPhones were spontane- conn Technology Group, and competing with Xiaomi and
corporate social responsibility ship system. Mr. Cook’s ap- 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 Researchers found, in a search note. Kettering Cancer Center’s Cen- the benefits to patients. Repatha had met the goals of
AND BETSY MCKAY study following 27,564 pa- To persuade health plans ter for Health Policy and Out- Repatha, among the new in- its study, but released the spe-
tients over 2.2 years, that Re- and drug-benefit managers to comes, said after reviewing jectable cholesterol-fighting cific findings only on Friday at
Amgen Inc. on Friday re- patha reduced the risk of pay for Repatha, Amgen has the trial data. agents known as PCSK9s, was a medical meeting.
ported widely anticipated data deaths, heart attacks and ”Now that Repatha has approved in 2015 after studies Amgen is “very confident”
on its new cholesterol-lower- strokes by 20% compared with proven a meaningful reduction showed it cut levels of bad that doctors will view the re-
ing drug Repatha, showing it
reduced the risk of deaths,
standard treatment with statin
drugs. Repatha lowered the
The high price of the in cardiovascular events, we
expect payers to remove oner-
cholesterol. Unclear was
whether that LDL-cholesterol
sults as “practice-changing”
and incorporate Repatha into
heart attacks and strokes. But risk of a wider array of heart- cholesterol treatment ous barriers” to patient access, reduction also reduced the risk their care of patients whose
the positive findings failed to
persuade Wall Street that
related events by 15%.
The risk reduction, al-
has been an issue Joshua Ofman, an Amgen se-
nior vice president, said Fri-
of heart-related events, such
as heart attacks and strokes.
cholesterol remains high de-
spite treatment with a statin
health-care insurers would be- though significant, may still with health plans. day. Without such evidence, or who can’t tolerate a statin,
gin easing access to the expen- not be enough to overcome In 2016, Repatha sales to- health plans have limited ac- said Sean Harper, Amgen’s
sive drug. reservations about a drug that taled $141 million, including cess to Repatha, as well as to chief of research and develop-
A 6.4% drop in Amgen’s lists for more than $14,500 a $101 million in the U.S. rival drug Praluent from ment.
share price underscored a year, according to analysts. offered to refund the cost to Amgen has been striking so- Sanofi SA and Regeneron Doctors not involved in the
mounting challenge for drug “It is likely that the major- payers for patients who suffer called value-based reimburse- Pharmaceuticals Inc., in favor study said that determining
companies once they have se- ity of restrictions” on coverage a heart attack or stroke. About ment deals with health plans of much-cheaper statin pills. which patients can benefit
cured regulatory approval for such as requiring prior autho- 4.9% of trial subjects suffered like Cigna and Harvard Pilgrim Shares in Sanofi and Regen- most from PCSK9 inhibitors
a new medicine: getting health rization, will remain, Barclays’ one of the events, Peter Bach, Health Care that tie the pay- eron also fell Friday. will still be critical, given their
plans to pay for it. Geoff Meacham said in a re- director of Memorial Sloan ments the company receives to 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 the outlook for the coming fis-
fiscal year owing to strong de- cal year when it reports its
mand, people briefed on the latest earnings on April 27.
plans said. The company tends to offer
The move suggests that the conservative forecasts to avoid
Switch, which went on sale the need for downward revi-
globally March 3, is on track sions.
for a debut year similar to Sales of the original Wii
that of Nintendo’s popular Wii console, which hit the market
system a decade ago. If so, it in November 2006, reached 20
would deliver a badly needed million units by the end of
hit for a company whose pre- 2007 after two holiday sea-
vious console, the Wii U, fell sons. Its motion-sensor con-
far short of expectations. Strong demand for the Switch will mean stepped-up production. trollers and fitness board at-
The Switch, a hybrid prod- tracted many first-time
uct designed for use both at now planning to manufacture reached to generate interest console players.
home and on the go, has been 16 million or more Switches, from outside software produc- Sales of the Switch could
scarce in stores since it went up from an initial plan for ers, who in turn can deliver a pick up further when more
on sale. Nintendo hasn’t pro- eight million, said people fresh stream of titles to keep games go on sale. Nintendo
vided any sales figures, but its briefed on the plans. consumers interested in the saved some of its popular
North American unit described Even after accounting for device. franchises for later releases.
the initial momentum as the inventory, that suggests Nin- Nintendo has been fending Among those scheduled for
strongest in the company’s tendo believes it can sell sig- off pressure from some inves- this year are the third-person
history. nificantly more than 10 million tors who say the Kyoto-based shooter game “Splatoon,”
The company’s shares, units during the 12-month pe- company should get out of the planned for summer, and an • Chip big branches up to 5.75" LOWEST
which gained 1.7% in Tokyo on riod, they said, beating expec- console business and focus on action game featuring Mario thick! PRICES
Friday, are up sharply since tations of many analysts. making games using its collec- the plumber for the holiday
• Self-feeding models available. EVER!
March 2, the day before the A Nintendo spokesman de- tion of famous characters. season.
Switch’s launch. clined to comment. Nintendo Chief Executive A game in the “Legend of No more force-feeding! Starting
In the fiscal year starting First-year sales above 10 Tatsumi Kimishima has said Zelda” franchise was already • Powerful engines spin big at just
next month, assemblers under million would clear the thresh- the company would ship two released simultaneously with
contract with Nintendo are old that analysts say must be million units globally this the Switch. fly-wheels (up to 62 lbs.), $
79999
generating massive chipping
PTO
BUSINESS WATCH force!
• Models that shred yard and
MODELS TOO!

garden waste as well as


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

shing Square Capital Manage- Ferdinand Piech, whose to oust then-Chief Executive In its rejection, Akzo said
ment LP two seats and grandfather designed the original Martin Winterkorn. PPG’s bid “substantially underval- FREE SHIPPING 6 MONTH TRIAL
announced the appointment of VW Beetle, is in talks with the —William Boston ues” the company. On Friday an
two additional independent direc- remaining heirs to sell most of Akzo spokesman said: “We have SOME LIMITATIONS APPLY
tors. Mr. Ackman disclosed a big his shares that control Volks- AKZO NOBEL firmly rejected the proposal from
stake in Chipotle in September. A wagen AG, the family holding PPG in the interests of all of our Call for FREE DVD and Catalog!
Chipotle representative said the said Friday. Activist Investor stakeholders, including our share-
changes announced Friday “are Mr. Piech, who turns 80 this Gives Sale a Nudge holders, due to a range of sub- TOLL-FREE
the product of individual deci- year, owns about 14.7% of the stantial issues including signifi-
sions and are in no way part of
our agreement” with Pershing
common stock of Porsche Auto-
mobil Holding SE, the family
Activist investor Elliott Man-
agement Corp. owns a stake in
cant timing and delivery risk. We
will not speculate on what may
877-202-1061
and Mr. Ackman. holding that controls about 52% Akzo Nobel NV and is pushing happen in the future.” DRchipper.com
After years of strong sales of Volkswagen voting stock. the Dutch paint maker to engage —Dana Mattioli
growth, a series of food-borne ill- Mr. Piech’s shares are worth 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