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What’s Friction
News Weighs
Business & Finance
On U.S.
T he global manufactur-
ing slowdown worsened
last month and trade flows
are set to increase this year
at the weakest pace since BY AMARA OMEOKWE
the financial crisis, as tariffs AND PAUL HANNON
rise and growth cools. A1
U.S. factory activity con-
 The Dow slumped 1.3% as
tracted for the second straight
the disappointing manu-
month in September to hit a
facturing data spurred con-
10-year low, spurring a broad
cerns about the health of the
stock-market decline on con-
economy. U.S. government-
cerns abut the health of the
bond prices surged. B13
 Visa and Mastercard are The manufacturing readings
among partners reconsid- were among other data points
ering their involvement in released Tuesday suggesting a
Facebook’s effort to build global slowdown, as trade
a global cryptocurrency- flows are set to grow this year
based payments network. B1 at the weakest pace since the

financial crisis.
 Schwab said it would
The Institute for Supply
eliminate commissions on
Management reported its man-
online stock trades, extend-
ufacturing index fell to 47.8 in
ing a broad-based price war
September, the lowest level
in the financial sector. B1
A Hong Kong police officer fired on protesters as demonstrations against China’s Communist Party turned violent Tuesday. An 18- since June 2009, from 49.1 the
 Johnson & Johnson year-old student was struck in the chest and was in critical condition after surgery. Police said the shooting was in self-defense. prior month. Readings below
reached a $20.4 million set- 50 indicate contraction, while

Hong Kong’s Violent Unrest Grows

tlement with two Ohio coun- those above signify expansion.
ties over its alleged role in The August result marked the
the opioid-addiction crisis. B1 first drop in three years.
U.S. stock indexes fell after
 A Credit Suisse-ordered

As Beijing Marks Communist Rule

release of the data, with the
probe cleared Thiam of in-
S&P 500 losing more than 1%
volvement in a spy scandal
in afternoon trading.
at the bank and laid primary
“Thank the trade war, which
blame on a close deputy of
means no improvement is likely
the CEO, who resigned. B1
BY NATASHA KHAN high-school student, swung at antigovernment movement, The violence marked an anytime soon,” Ian Shepherd-
 GM said a parts short- AND JOYU WANG him with a metal bar. Other which was sparked by opposi- embarrassment for Beijing, Please turn to page A2
age stemming from a UAW footage showed the protester tion to a bill allowing extradi- souring its National Day fes-
strike in the U.S. forced it HONG KONG—A police offi- on the ground with blood tion to China. The Hong Kong tivities despite President Xi
to idle a pickup-truck fac- cer shot a young antigovern- spilling from his chest. government in September Jinping’s repeated demands
tory in Silao, Mexico. B2 ment protester in the chest
during the worst day of vio-
The police confirmed the
shooting, saying the officer had
scrapped the proposal and has
appealed for calm, but the
for smooth celebrations. The
ferocity and intensity of the
Judge Backs
 Ford said it would trans-
fer most of its operations
in India to Mahindra as
lent unrest to hit Hong Kong
in half a century, as Beijing
fired at Mr. Tsang in self de-
fense. The teenager underwent
movement has drawn momen-
tum from what protesters al-
clashes have left Mr. Xi with a
dilemma as to how the upris-
part of a joint venture with
the Indian auto maker. B2
celebrated the 70th anniver-
sary of Communist Party rule
in mainland China.
emergency surgery and health
officials said his condition was
critical early Wednesday.
lege to be police brutality and
a lack of accountability.
Efforts to ease tensions and
ing can be contained.
Please turn to page A6 Admissions
 U.S. Steel said it would
acquire a stake in Big River,
Video footage on Tuesday
showed an officer firing his
The incident—the first of
its kind since protests erupted
weaken protests before Tues-
day’s anniversary failed, with
 Hong Kong district becomes
a combat zone.......................... A6
forging a partnership with pistol at close range after in the city in early June—is events in the city upstaging  China narrows weaponry gap
a rival that has threatened Tsang Chi-kin, an 18-year-old likely to further inflame the the celebrations. with U.S........................................ A7 BY MELISSA KORN
its core business. B3
Harvard University’s under-
World-Wide Price War Hits Online Trading Barr, Giuliani Tensions graduate admissions process
doesn’t intentionally discrimi-
Charles Schwab said it would eliminate commissions on online nate against Asian-American
 A police officer shot an
antigovernment protester in
the chest during the worst
stock trades, rattling online brokers that have been squeezed by
investors’ resistance to fees for financial services. B1 Hinder Trump Defense applicants, a federal judge
ruled, a victory for the univer-
sity that is expected to be ap-
day of violent unrest in Hong Index and share-price performance on Tuesday pealed as high as the Supreme
Kong in half a century, as Bei- WASHINGTON—Attorney Mueller’s dismissal. Court.
jing celebrated the 70th anni- 5% General William Barr called Why, Mr. Barr wanted to In a 130-page ruling on
versary of Communist Party President Trump in April with know, was the president’s pri- Tuesday, U.S. District Judge Al-
rule in mainland China. A1 a question: What was Rudy vate lawyer making a spectacle lison Burroughs found that
0 S&P 500 Giuliani doing? of himself rather than declar- Harvard’s practices were “not
 Harvard’s undergraduate
admissions process doesn’t ing victory in the Mueller in- perfect” and could use im-
intentionally discriminate –5 By Rebecca Ballhaus, vestigation and moving on, ac- provements, including implicit
against Asian-American ap- Sadie Gurman, cording to a person who bias training for admissions of-
plicants, a judge ruled. A1 Schwab Andrew Restuccia paraphrased the conversation. ficers, but said “the Court will
–10 and Michael C. Bender Mr. Barr wanted the president not dismantle a very fine ad-
 Tensions between Giu- to tell Mr. Giuliani, in effect, to missions program that passes
liani and Barr are compli- Mr. Trump had just avoided knock it off. constitutional muster, solely
–15 E*Trade
cating White House efforts criminal charges with the re- Five months later, Mr. because it could do better.”
to build a strategy to keep lease of former special counsel Trump’s two highest-profile The school’s admissions
the president in office. A1 –20 Robert Mueller’s report on lawyers are again struggling to process is in line with Su-
 House leaders set plans Russian electoral interference. get on the same page, this time preme Court precedents and
to question two key State TD Ameritrade But Mr. Giuliani was on televi- in the face of an impeachment doesn’t violate federal civil
Department officials after sion attacking former White Please turn to page A4 rights law, the judge found.
Secretary Pompeo sought House counsel Don McGahn, a The ruling came just shy of
to block the effort. A4 –30 longtime friend of the attorney a year after the judge heard
10 a.m. noon 2 p.m. 4 general who had testified to Ukraine Probe three weeks of trial testimony
 China is increasingly investigators about some of  House seeks to question in Boston. Harvard’s admis-
developing and deploying Source: FactSet the most notable incidents in two State Department sions dean and other witnesses
indigenous weaponry on a the report, including Mr. officials............................... A4 defended the university against
par with, or in some cases Trump’s efforts to seek Mr. Please turn to page A5
more advanced than, that
of the U.S. and its allies. A7
 North Korea fired two To Declutter, Americans Buy Cars
ballistic missiles off its east
coast shortly after Pyongyang
and the U.S. said they would First Get
With Piles of Debt Salesforce.
Lots of Books #1 CRM.
resume nuclear talks. A7
 Salazar briefed top
Nike officials on his exper- i i i
iments to manipulate the
use of performance-en- Lifestyle gurus Booming financing, stretched-out loans,
Ranked #1 for CRM Applications based on
hancing drugs for track are signs of middle-class indebtedness IDC 2018 Revenue Market Share Worldwide.
and field athletes. A2 compete to peddle 16.8%

 An appeals court upheld

most parts of a Republican the simple life BY BEN EISEN can’t afford a middle-class
rollback of Obama-era reg-
BY ELLEN GAMERMAN Incomes have risen at a
ulations governing so-
Walk into an auto dealer- sluggish pace in the past de-
called net neutrality. A3
Bookshelves have become ship these days and you cade, but car prices have
 A former Dallas police of- cluttered with books on all might walk out with a seven- grown rapidly. New techno-
ficer who shot and killed her kinds of decluttering. year car loan. logical and safety features,
upstairs neighbor in 2018 was Global lifestyle philosophies That means monthly pay- such as larger and more so- 5.7%
found guilty of murder. A3 are doing battle over the best ments that last well past phisticated multimedia dis- 5.6%
path not just to orderly clos- when the brake pads give out plays, have made even the 3.5%
CONTENTS Property Report... B6 ets, but to organized thoughts and potentially beyond when most basic cars more expen-
Business News.. B3,5 Sports....................... A14 3.4%
Crossword.............. A14 Streetwise.............. B12 and neater emotional spaces. the car gets traded in for a sive. U.S. consumers have
Heard on Street. B14 Technology............... B4 Readers have been peddled new one. About a third of also veered toward pricier
Life & Arts....... A11-13 U.S. News............. A2-5 the essentials of simplicity auto loans for new vehicles rides such as sport-utility ve- 2014 2015 2016 2017 2018
Markets.................... B13 Weather................... A14
Opinion.............. A15-17 World News... A6-8,10
with the magic of Ikigai (Japa- taken in the first half of 2019 hicles that tend to dominate Source: IDC, Worldwide Semiannual
Software Tracker, April 2019.
nese reason for being), Sisu had terms of longer than six auto showrooms. The result
(Finnish resilience) and Lagom years, according to credit-re- is that consumers are seeking
> (Swedish moderation). porting firm Experian PLC. A bigger loans than ever to
Ichigo ichie, pronounced decade ago, that number was purchase a car.
itchy-GO itchy-A, is a Japanese less than 10%. A lending machine has salesforce.com/number1CRM
concept about making the Car loans that are increas- revved up in response, mak-
s 2019 Dow Jones & Company, Inc.
most of life’s moments. Keep a ingly stretched out are a pro- ing it possible for more Source: IDC, Worldwide Semiannual Software Tracker, April 2019. CRM market includes the following IDC-defined
functional markets: Sales Force Productivity and Management, Marketing Campaign Management, Customer Service,
Contact Center, Advertising and Digital Commerce Applications. © 2019 salesforce.com, inc. All rights reserved.
All Rights Reserved journal describing different nounced sign that some Americans to procure a vehi- Salesforce.com is a registered trademark of salesforce.com, inc., as are other names and marks.

Please turn to page A11 American middle class buyers Please turn to page A10
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A2 | Wednesday, October 2, 2019 NY * **** THE WALL STREET JOURNAL.

Coach Told Nike CEO of Doping Research
BY SARA GERMANO Usada described as “orchestrat- chief on the testosterone ex- tests. It will be interesting to his athletes could be victims of any rules as a medical doctor
AND JOSHUA ROBINSON ing and facilitating prohibited periment, in which he relayed determine the minimal sabotage by competitors. was involved. Furthermore,
doping conduct.” testing varying amounts of amount of topical male hor- Usada argues that “this same Mark’s understanding was that
Nike-backed running coach The reports also allege that hormonal creams on Mr. Sala- mone required to create a pos- experiment can be used to fur- Alberto was attempting to pre-
Alberto Salazar on numerous at least one of the pair’s ex- zar’s adult sons, who aren’t itive test. Are there other topi- ther the nefarious purpose of vent doping of his athletes.”
occasions briefed top Nike Inc. periments—determining professional athletes. cal hormones that would evading doping control just as Mr. Parker sent an email to
officials, including Chief Execu- whether the use of topical tes- “We tested levels in the create more dramatic re- easily as it can be used for the employees underscoring his
tive Mark Parker, on his experi- tosterone cream would trigger commonly used screening at sults…or other substances that claimed prophylactic purpose of support for Mr. Salazar. “I
ments to manipulate the use of a positive doping test—was least for track and field of uri- would accelerate the rate of determining the likely success would never condone cheating
performance-enhancing drugs conducted in a laboratory at nary T/E (testosterone/epites- absorption into the body?” of attempted sabotage.” of any kind in sport or other-
for track and field athletes, ac- Nike’s headquarters. tosterone) ratios after 1 pump Testosterone is a substance “At the time Alberto was wise and I expect you wouldn’t
cording to emails referenced in Mr. Parker was included on (1.25 grams) and 2 pumps (2.5 banned by the World Anti- concerned that Nike runners either,” he wrote, adding that
reports published by the U.S. several emails from Mr. Salazar grams) of Androgel,” Dr. Doping Agency, the global an- could be sabotaged by some- “we looked into these allega-
Anti-Doping Agency on Monday. and Dr. Brown, detailing the Brown wrote, according to the tidoping authority whose codi- one rubbing testosterone tions and did not find that he
The reports, prepared by the pair’s research to find perfor- report on his sanction, refer- fied rules are adopted by cream on them,” a Nike violated any rules.”
American Arbitration Associa- mance-enhancing benefits for a encing the brand of testoster- Usada, the International Olym- spokesman said Tuesday. Mr. Salazar said Monday he
tion for Usada, delivered four- stable of Olympic runners in the one cream used. “We found pic Committee, and various “Mark was shocked that this was “shocked” by the ban and
year bans for Mr. Salazar and a Nike Oregon Project, an elite that even though there was a other national and interna- could be the case and given planned to appeal. A recep-
Nike-sponsored doctor, Jeffrey training group based at Nike’s slight rise in T/E ratios, it was tional sports organizations. Mark’s passion for running, Dr. tionist at Dr. Brown’s medical
S. Brown. Together they show Beaverton, Ore., headquarters. below the level of 4 which According to the reports, Mr. Brown and Alberto made Mark office in Houston said he
that Mr. Parker was made In a July 2009 email ex- would trigger great concern.” Salazar contends he devised aware of their findings. Mark wasn’t available Tuesday. He
aware of Mr. Salazar and Dr. change, Dr. Brown wrote to Mr. Parker responded, “Jeff, the testosterone experiment af- Parker had no reason to be- stopped consulting for Nike in
Brown’s ongoing work in what Mr. Parker to apprise the Nike thanks for the update on the ter he became concerned that lieve that the test was outside 2013, according to the reports.

PENNSYLVANIA bribes to allow a test proctor to
cheat on SAT and ACT exams,
Mail-Order Fentanyl agreed to plead guilty in connec-
Ring Linked to China tion to his role in the sprawling
college-admissions cheating
Three Chinese nationals scheme, according to a plea
worked with a former deputy agreement filed federal court in
sheriff in Pennsylvania to run an Boston.
international mail-order drug op- Mr. Dvorskiy was charged in
eration linked to five overdose March with racketeering conspir-
deaths in the U.S., state and fed- acy, accused of accepting money
eral authorities said Tuesday. from college counselor William
The Chinese nationals, using “Rick” Singer in exchange for
an alias, allegedly ran websites looking the other way when
based in China that offered us- Mark Riddell, another participant
ers fentanyl, a synthetic opioid. in the scheme, helped students
The drugs were then shipped to cheat on the tests or corrected
a storage facility in Pennsylvania their answers afterward. Mr. Rid-
rented by David Landis, a former dell and Mr. Singer have both
deputy sheriff in suburban Phila- pleaded guilty.
delphia, according to William M. A lawyer for Mr. Dvorskiy de-
McSwain, U.S. Attorney for the clined to comment.
Eastern District of Pennsylvania. —Melissa Korn
Mr. Landis, who pleaded

guilty to separate charges last GEORGIA

year, shipped an estimated
2,900 packages across the U.S. Federal Judge Blocks
and internationally, officials said. New Abortion Law
—Talal Ansari
A federal judge temporarily
JUSTICE DEPARTMENT blocked Georgia’s restrictive new
abortion law from taking effect
Judge Sets Deadline CROSSES ON THE STRIP: People pray at a Las Vegas memorial on the second anniversary of the mass shooting that killed 58 people. on Tuesday, following the lead of
On McCabe Charges other judges who have blocked
cizing prosecutors for leaving undermining the credibility of The order comes weeks after COLLEGE-ADMISSIONS CASE similar measures in other states.
A federal judge has given the the decision “in limbo.” both the department and the a federal grand jury met to con- The law signed in May by Re-
Justice Department about six At a hearing on Monday in a court by not making a decision, sider the case against Mr. Mc- Test Administrator publican Gov. Brian Kemp bans
weeks to either charge former lawsuit seeking records related according to a transcript of the Cabe, the FBI’s former deputy di- Will Plead Guilty most abortions once a fetal
FBI No. 2 Andrew McCabe or to an internal Federal Bureau of hearing. rector, without issuing an heartbeat is detected, which can
drop its investigation into Investigation inquiry into Mr. Judge Walton ordered the de- indictment, indicating the case Igor Dvorskiy, a West Holly- happen as early as six weeks
whether he lied to investigators McCabe, Judge Reggie Walton partment to make a decision by against him was in jeopardy. wood, Calif., high-school adminis- into a pregnancy.
about a media disclosure, criti- said the Justice Department was Nov. 15. —Aruna Viswanatha trator who prosecutors say took —Associated Press

Factory Spreading Weakness

Factory activity contracted in the U.S. and abroad amid slowing growth in global trade. Firms Look to Duck In their requests to the Of-
fice of the U.S. Trade Represen-

Activity The Institute for Supply Management's manufacturing index

Duties on Imports tative, companies typically say
they are either unable to find
comparable replacement goods

WASHINGTON—U. S. com- outside of China, or that doing

60 panies are continuing to seek so would be at prohibitive cost.

exemptions to tariffs on a wide “We have not been able to
50 assortment of Chinese im- move infant knitted cotton hat
Continued from Page One ports—including frozen fish, au- production to the U.S. due to
son, chief economist at Pan- 40 tomotive parts, cosmetics and capability, volume and cost im-
theon Macroeconomics, said in other products—ahead of a pact,” retailer The Gap wrote in
a note to clients, referring to 30 planned increase in levies. one of its 13 submissions.
the ISM reading, which is based More than 2,500 companies About a third of the re-
2000 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19
on a survey of U.S. purchasing had asked the Trump adminis- quests came from a single
and supply executives. tration to exclude about 31,000 company, Minnesota-based Ar-
Annual change in volume of global merchandise trade Manufacturing PMI
A separate survey of U.S. products as of midnight Mon- rowhead Engineered Products
manufacturing activity from 20% day, the deadline for filing re- Inc., which imports from China
data firm IHS Markit showed 15 quests to be exempted from aftermarket repair parts for

factory activity increased in 10 the $200 billion tranche of tar- cars, lawn mowers, all-terrain
September, though the reading Japan iffs that the U.S. implemented vehicles and other products.
also indicated the July-Sep- last year on items imported The USTR has ruled on 439
0 50
tember period marked the from China. Two earlier requests for exclusions from
worst quarterly performance –5 South Korea tranches covering $50 billion in the $200 billion tranche so far,
for the sector since the same 45 goods also allowed for exemp- or about 1% of all filings. Of 61
period in 2009. IHS Markit Germany tions. The targeted Chinese im- requests granted as of Tuesday
said its September manufac- –15 40 ports are currently subject to a morning, 10 went to Apple Inc.
turing index rose to 51.1 from 2000 ’05 ’10 ’15 ’19 2017 ’18 ’19 25% tariff. On Oct. 15, the duty —Anthony DeBarros
50.3 in August. Sources: Institute for Supply Management (ISM manufacturing index); World Trade Organization (merchandise trade volume); IHS Markit (Germany,
is set to rise to 30%. and Josh Zumbrun
Surveys of purchasing man- South Korea and Japan purchasing managers’ indexes)
agers in Europe and Asia re-
leased Tuesday pointed to third time this year. jor economies, and the manu- slowing trade could hit invest- in China is down about 40%, to boost revenue by about 5%
deepening declines in factory President Trump, however, facturing sector’s woes to the ment and jobs. dragging down overall revenue this year.
activity in September, as a blamed the Fed for the worsen- escalating trade disputes. “Job creation may be ham- by about 20%. “We are still running over-
slowdown in exports hit facto- ing U.S. factory numbers, say- “The dollar’s strength is pered as firms employ fewer “Not only has the volume time and extra days,” Mr. Byrd
ries. ing its interest-rate policies are hurting our [U.S.] ability to workers to produce goods and been reduced substantially but said, adding that the company
Slowing economic growth responsible for the recent ap- export. It’s the number one services for export,” said Ro- it’s caused pricing to drop sig- has increased its starting wages
has prompted a wave of central preciation of the U.S. dollar. He comment I hear from suppli- berto Azevêdo, the WTO’s di- nificantly,” Jeff Meyer, presi- by $2 to around $15 an hour
bank stimulus measures around has urged the central bank to ers, outside of trade issues,” rector-general. dent of Baillie, said last month. this year to retain workers.
the world, including from the cut rates more aggressively said Timothy Fiore, head of The Geneva-based body said While U.S. manufacturing Surveys of purchasing man-
Federal Reserve and the Euro- than it has. the ISM manufacturing survey it now expects flows of goods was down, ISM’s new orders in- agers in Asia and Europe
pean Central Bank. The latest Many economists attribute committee. across borders to grow by just dex—one of the measures that showed continued weakness in
effort came Tuesday, when the the dollar’s strength to the U.S. The World Trade Organiza- 1.2% this year, down from 3% in contributes to the overall man- factory activity.
Reserve Bank of Australia cut economy’s solid, if cooling, per- tion, in new forecasts on trade 2018. If the WTO is correct, it ufacturing index—rose slightly Compiled by IHS Markit, the
its key interest rate for the formance relative to other ma- flows, warned Tuesday that would be the lowest annual in- to 47.3 in September from 47.2 surveys pointed to declines in
crease since 2009. in August. activity in South Korea, Japan
The global trade system has New orders for export, and Indonesia. A separate sur-
(USPS 664-880) (Eastern Edition ISSN 0099-9660)
CORRECTIONS  been disrupted by the dispute
between the U.S. and China
however, dropped for the third
straight month, underscoring
vey by the Bank of Japan
showed sentiment among the
(Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241)
Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y. 10036 AMPLIFICATIONS that has resulted in a steady
increase in tariffs since early
the challenges posed by trade
tensions. Newly placed orders
country’s large manufacturers
deteriorated to the weakest
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THE WALL STREET JOURNAL. * * * * Wednesday, October 2, 2019 | A3


Ex-Officer Convicted
In Neighbor’s Death
BY DAN FROSCH the Dallas Police Department During the trial, prosecutors


AND ELIZABETH FINDELL following the shooting. She cast Ms. Guyger as careless
faces from five to 99 years in and trigger-happy, saying she
DALLAS—A jury found a for- prison. was making plans to meet up
mer Dallas police officer guilty The unusual circumstances for a tryst with her police part-
of murder for shooting and surrounding the death of Mr. ner, Martin Rivera, before a
killing her upstairs neighbor Jean, who was black, and the conversation with him left her
after she mistakenly walked trial of Ms. Guyger, who is so distracted that she made a
into the wrong apartment. white, has roiled Dallas, a city series of terrible decisions.
Prosecutors had accused Of- that has been shaken both by Ms. Guyger broke down
ficer Amber Guyger, 31, of reck- racial tension and the targeted sobbing during her testimony
lessly gunning down Botham killings of police officers in and said she wished she’d died
Jean, a 26-year-old accountant, years past. instead.
who was sitting on his couch Lawyers for Mr. Jean’s fam- “I feel like a terrible person,
eating ice cream when she ily hailed the verdict on Tues- I feel like a piece of crap,” she
walked through the open door day, saying it was a win for said. “I feel like I don’t deserve
of his apartment on Sept. 6, other unarmed African-Ameri- the chance to be with my fam- Allison Jean, mother of the man shot by a Dallas police officer, gets a hug after the guilty verdict.
2018, after a shift at work. cans who had been killed by ily and friends....I am so sorry.
Ms. Guyger’s lawyers said the police. This is not about hate, it’s to show his hands. She said when she thought there was a dents, more than 90 said they
she was tired from a long day “This is a huge victory, not about being scared that night.” she fired her service weapon burglar inside, rather than re- had accidentally walked to the
and believed Mr. Jean’s apart- only for the family of Botham Ms. Guyger said she heard because she was afraid he maining outside the door and wrong door on at least one oc-
ment, located directly above Jean…but for black people in noises in the apartment would kill her. calling for backup. casion, defense attorney Rob-
where she lived, was hers. America,” said S. Lee Merritt, shortly before opening the After she shot him, she re- Whether Ms. Guyger walking ert Rogers said.
They said Ms. Guyger one of the family’s attorneys. door, became terrified, and alized she was in the wrong into the wrong apartment was The sentencing phase of the
thought Mr. Jean was a bur- “It is a signal that the tide is went in to find the intruder. apartment and called 911. a reasonable mistake remained trial began Tuesday afternoon
glar and acted in self-defense. going to change here. Police She said Mr. Jean began Prosecutors questioned why the central point of contention with Mr. Jean’s mother, Alli-
Ms. Guyger, a five-year vet- officers are going to be held coming toward her, yelling Ms. Guyger had chosen to en- during the trial for the jury. son, testifying, and was sched-
eran of the force, was fired by accountable for their actions.” “Hey, hey” as she ordered him ter the apartment by herself In a survey of building resi- uled to continue Wednesday.

Rollback Bid to Save Whales Grips Maine Lobstermen


Neutrality Along the rocky coast of

Maine, lobstermen are worried
new federal requirements to

Is Upheld clear fishing lines from the

path of endangered whales
will damage their iconic New
England industry.
BY BRENT KENDALL A National Oceanic and At-
AND JOHN D. MCKINNON mospheric Administration
agency is trying to save North
WASHINGTON—A federal Atlantic right whales that are
appeals court upheld most dying at an alarming rate in
parts of a Republican rollback U.S. and Canadian waters, of-
of Obama-era rules governing ten after getting tangled in
so-called net neutrality, but fishing gear or hit by ships.
the decision gave room for The still-forming federal
states to issue tougher restric- regulations will cover other
tions that run counter to the parts of New England, but
deregulatory approach. Maine, where lobstermen dan-


At issue are internet traffic gle more than 800,000 lines
rules implemented last year by from buoys to ocean-floor
the Federal Communications traps in their busiest months,
Commission under Republican has the most at stake.
Chairman Ajit Pai. The new re- Meeting an aggressive fed-
gime gave broadband providers eral target for reducing whale
leeway to block or slow inter- hazards could mean pulling
net traffic but required them to half of those lines from the wa-
be transparent if they do so. ter. The state’s lobster industry
Those new guidelines wiped and political leaders say this is
out rules adopted by a Demo- untenable for the armada of
cratic FCC in 2015. Those reg- mostly small lobster boats
ulations were dubbed net neu- fishing the Gulf of Maine. It Maine lobstermen say significant cuts to the number of fishing lines, in which whales can get tangled and die, will hurt the fishery.
trality because they prohibited also misses the target, they
internet-service providers like say, because most dead whales poses to right whales under smaller boats, lobstermen say. even one death each year, food supply in local waters.
AT&T Inc., Comcast Corp. and recently have turned up in orders from Democratic Gov. Fishing this way also makes it NOAA Fisheries estimates. But Eighteen dead right whales
Verizon Communications Inc. Canada, and none in Maine. Janet Mills, who believes harder to maneuver traps into 30 have been found dead since have turned up in the Gulf of
from blocking or slowing traf- “We’re not unwilling to NOAA’s National Marine Fish- the best spots, they say. June 2017, including 21 in Ca- St. Lawrence alone since the
fic or from offering priority adapt, we just want to adapt in eries Service has put too The state, where some nadian waters, NOAA data start of 2017, prompting Cana-
service where companies could a way that will actually benefit heavy a burden on her state, 4,800 harvesters fish for lob- show. The reason for deaths dian authorities to enact new
pay for their content to reach the species,” said Chris Welch, and could have a plan by No- sters, has a lot at stake. The isn’t always clear, but the fishing and shipping restric-
internet users at faster speeds. a 31-year-old lobsterman from vember. industry supports thousands whales are dying prematurely tions.
The rollback’s impact so far Kennebunk, Maine, regarding NOAA Fisheries, which aims more jobs on shore while and not from natural causes, But the rash of Canadian
has been muted. Backers say the whales. “We don’t want to to move ahead with its rule- pumping nearly $1.5 billion researchers have found. deaths doesn’t mean whales
deregulation has led to higher go extinct either.” making process in the coming into the state’s economy, Researchers believe more have abandoned Maine waters,
internet speeds and easier in- The impasse could come to months, will then decide if Colby College economics pro- whales may be hunting for which remain an important
ternet access for millions of a head in the coming months. Maine’s plan goes far enough. fessor Michael Donihue found food in Canada’s Gulf of St. habitat, according to NOAA
Americans. Critics question A state agency is reassessing Five members of the Maine in a study last year. Lawrence because warming Fisheries and whale research-
those claimed benefits and say the risk Maine believes it Lobstermen’s Association in- “In many coastal communi- waters have reduced their ers.
the rules will eventually create dustry group initially sup- ties, particularly in rural parts
different tiers of service that On the Brink ported a 50% reduction in ver- of the coast, almost every per-
harm some consumers and tical fishing lines during an son and job is related to the
Endangered North Atlantic
content providers. advisory meeting in April to lobster fishery,” Ms. Mills said
right whales are dying at an
Tuesday’s ruling could lead hash out whale protections. in a recent letter to Chris Oli-
alarming rate, with heavy
to more months or years of
regulatory uncertainty as some
losses in Canadian waters.
But the lobster group pulled
its support months later after
ver, assistant administrator at
NOAA Fisheries. IWC PILOT’S.
states test their powers to
place additional requirements
North Atlantic right whale
saying that it found flaws in
NOAA Fisheries’ analysis, and
Mr. Oliver said the agency
was disappointed the Maine
on internet-service provid-
ers. Congress has been unable U.S. Canadian
that it thinks other kinds of
fishing gear are more hazard-
industry group pulled support
for the right whale protec-
to agree on a policy solution. 15 mortalities ous to whales. tions, and that the species is
The decision, by the U.S. The lobstermen plying the at a critical point. He also said
Court of Appeals for the Dis- Gulf of Maine have made gear his agency was reviewing the
trict of Columbia Circuit, found 10 changes over two decades to industry group’s critiques and
that most of the rollback was reduce the amount of rope conducting more analysis.
lawful, with a three-judge panel 5 that could snag passing “With a population of only
unanimously concluding that it whales. But stringing too about 400, and fewer than 95
was reasonable for the current many traps together underwa- breeding females remaining,
FCC to change course and 0 ter to sharply reduce vertical protecting every individual is
abandon the Obama-era ap- 2012 ’14 ’16 ’18 lines means putting a lot more a priority in order to avoid ex-
proach of regulating internet- rope on deck while fishing, tinction,” Mr. Oliver said.
Note: 2019 figure as of Sept 16. Locations
service providers like utilities. reflect where the whales are found. creating safety risks and The situation is so perilous,
Judges, however, were di- Source: NOAA straining the capacity of the population can’t sustain
vided when they threw out
part of the FCC rules that
sought to pre-empt states from
issuing tougher regulations
than the federal government.
“At bottom, the commission
lacked the legal authority to
categorically abolish all fifty
States’ statutorily conferred
authority to regulate intrastate Big Pilot’s Watch Edition “Le Petit Prince”
communications,” the court Ref. 5010
wrote in a portion of the deci-
sion endorsed by Judges Patri-
cia Millett and Robert Wilkins,
both Obama appointees.
Dissenting from that holding,
Judge Stephen Williams, a Rea-
gan appointee, said the ruling
would leave broadband “subject
to state regulation in which the
most intrusive will prevail.”
FCC officials are reviewing
the ruling but believe state
regulations may be pre-
empted on a case-by-case ba-
sis if they conflict with the
commission’s approach. Chris Welch says Maine lobstermen can adapt to help whales, but ‘we don’t want to go extinct either.’
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A4 | Wednesday, October 2, 2019 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.


House Democrats Press State Officials

BY REBECCA BALLHAUS ers published on Twitter, Mr. fied matter related to Ukraine, tral to the inquiry. Mr. Volker in-
AND JESSICA DONATI Pompeo accused them of trying a congressional aide said. troduced Mr. Giuliani to Andriy
to bully department officials House Democrats have Yermak, a top aide to Ukrainian
House leaders set plans to into appearing before the com- moved rapidly in recent days, President Volodymyr Zelensky.


question two key State Depart- mittees, saying officials weren’t as lawmakers have issued sub- The two spoke by phone several
ment witnesses after Secretary given enough time to prepare, poenas to Mr. Pompeo and times this summer and met in
of State Mike Pompeo sought including consulting with the Rudy Giuliani, the president’s Madrid in August. Mr. Giuliani
Tuesday to block the effort, in department’s legal counsel. personal lawyer, for documents has said he raised the matter of
the first clash between congres- That letter drew a swift re- related to the administration’s investigating Mr. Biden to Mr.
sional Democrats and the Trump buke from the chairmen of requests that Ukraine investi- Zelensky.
administration of the newly three House committees, who gate Democrat Joe Biden just Ms. Yovanovitch was ousted
minted impeachment inquiry. warned Mr. Pompeo that pres- as aid to the country was being from her ambassadorial post in
Marie Yovanovitch, the for- suring witnesses not to speak held up. May following criticism from
mer U.S. ambassador to with lawmakers could be seen In the face of the quickly es- conservatives, including Mr.
Ukraine, will be deposed Oct. as an illegal attempt to protect calating inquiry, Mr. Trump on Giuliani, who publicly accused
11, postponing her scheduled himself and Mr. Trump. Mr. Tuesday continued to lash out her of acting against the presi-
session by nine days, a commit- Pompeo took part in the July Former Ambassador Marie Yovanovitch will be deposed Oct. 11. against the whistleblower whose dent’s interests. Mr. Giuliani
tee aide said Tuesday. Kurt 25 phone call that is central to complaint sparked the investiga- has denied he sought to pres-
Volker, the U.S. special repre- the inquiry, The Wall Street Oversight Committee. “he should not be making any tion last week. In tweets, Mr. sure her ouster.
sentative for Ukraine negotia- Journal reported on Monday. The three House committee decisions regarding witness Trump pushed for the whistle- Ms. Yovanovitch, who re-
tions who resigned last week, “Any effort to intimidate chairmen also sent a response testimony or document produc- blower’s identity to be revealed mains a State Department em-
will be deposed on Thursday. witnesses or prevent them in a letter addressed not to the tion in order to protect himself and asked: “Why aren’t we enti- ployee and is a senior State De-
The planned questioning and from talking with Congress—in- secretary but to Deputy Secre- or the president.” tled to interview & learn every- partment fellow at Georgetown
the back-and-forth with Mr. cluding State Department em- tary of State John Sullivan, on A State Department official thing about the Whistleblower, University, hasn’t responded to
Pompeo show how House Dem- ployees—is illegal and will con- the grounds that the top U.S. acknowledged receipt of the and also the person who gave all requests to comment.
ocrats increasingly see the stitute evidence of obstruction diplomat “now appears to have chairmen’s letter and said it of the false information to him.” Mr. Trump, in a rough tran-
State Department as central to of the impeachment inquiry,” an obvious conflict of interest.” was under review. Later Tuesday, Mr. Trump script the White House released
their inquiry of whether Presi- said a joint statement by Reps. Mr. Pompeo’s participation in Also on Tuesday, the State said he was becoming con- of his call with Mr. Zelensky, de-
dent Trump inappropriately Eliot Engel (D., N.Y.) of the For- the call between Mr. Trump Department’s inspector general vinced that “what is taking scribed Ms. Yovanovitch as “bad
used his office to pressure eign Affairs Committee, Adam and the Ukrainian president, contacted several House and place is not an impeachment, it news” and said she would “go
Ukraine’s president into investi- Schiff (D., Calif.) of the Intelli- the lawmakers wrote, renders Senate committees and asked is a COUP.” through some things.” It is un-
gating a political rival. gence Committee and Elijah him a witness in the congres- to brief their staffers on The depositions by Mr. Volker usual for a president to criticize
In a letter to House lawmak- Cummings (D., Md.) of the sional inquiry, and as a result, Wednesday about an unspeci- and Ms. Yovanovitch will be cen- a U.S. official to a foreign leader.

Trump, RNC
$125 Million
In Quarter

President Trump and the

Republican National Commit-
tee together raised $125 mil-

lion in the past three months,

the re-election campaign said.
Mr. Trump and the RNC had
reported raising $105 million
in the second quarter and
about $76 million in the first
three months of the year.
Campaign manager Brad
Parscale said Tuesday on
Twitter that the re-election ef-
fort began this month with
$156 million in the bank.
The campaign said it saw
an $8.5 million cash infusion
from small donors in the 48
hours after House Speaker
Nancy Pelosi announced a for-
mal impeachment inquiry of
Mr. Trump.
The president’s partnership
with the Republican Party
means he can solicit checks of
more than $360,000 from each
donor, far exceeding the
$2,800 each Democratic candi-
President Trump and Attorney General William Barr, shown in the East Room of the White House in May, are grappling with an impeachment inquiry. date can ask of donors for that
party’s primary election.
That was something he didn’t Mr. Barr didn’t believe it been close and that he is pri- The eventual Democratic
Tensions know, didn’t appreciate and
I’m not sure if he’s ever fully
was necessary to recuse him-
self from deliberations given
vately mystified by what many
in conservative legal circles
stered his standing with Mr.
Trump with his loyal support
of his campaign in 2016. Mr.
nominee can join with the
Democratic National Commit-
come to terms with.” that he didn’t know until later tee and accept six-figure dona-
Hinder Mr. Barr was surprised and
angry to discover weeks later
that the president had invoked
his name on the call, but none-
view as Mr. Giuliani’s med-
dling in matters that should be
handled by officials in govern-
Trump didn’t always return
the favor. He often needled the
former mayor for falling asleep
tions from each donor.

Defense that the president had lumped

him together with Mr. Giuliani
on the phone call with Mr. Zel-
theless didn’t oversee the re-
view, an official said.
In the days since House
ment. Mr. Barr has privately
told associates that he be-
lieves Mr. Giuliani’s behavior
on long flights, and joked
about whether Mr. Giuliani was
looking at cartoons on his Sanders
ensky, according to a person Democrats opened an impeach- in general isn’t helpful to the iPad, a former aide said.
Continued from Page One
inquiry launched by congres-
familiar with the matter. The
Justice Department said Mr.
ment inquiry, Mr. Giuliani has
been a near-constant fixture
Mr. Trump likes and re-
Mr. Trump also berated Mr.
Giuliani in front of others at the
Took in
sional Democrats last week.
The president’s relationships
with his private lawyer who
Trump never asked Mr. Barr to
contact the Ukrainians.
House committees on Mon-
on TV, declaring himself a
whistleblower and confirming
he would deliver a paid speech
spects Mr. Giuliani but his per-
ception of him is “cyclical” and
varies depending on the day, a
wedding of Treasury Secretary
Steven Mnuchin in 2017. The
president complained that Mr.
$25 Million
once aspired to be his attorney
general and the man who cur-
day subpoenaed Mr. Giuliani
for documents related to his
person close to the president
said. The president so far ap-
Giuliani was spitting while he
was talking and ordered him to
In Period
rently has that post are com- efforts to pressure Ukraine to pears to appreciate Mr. Giu- stand elsewhere, the aide said.
plicating White House efforts probe Mr. Biden. liani’s very public defense of After the release of the “Ac- BY JULIE BYKOWICZ
to build a legal and public-rela- Mr. Giuliani said Tuesday their Ukraine strategy. cess Hollywood” tape weeks be-
tions strategy to keep Mr. that Jon Sale, a former assistant On Wednesday, speaking at fore the election in which Mr. Vermont Sen. Bernie Sand-
Trump in office. special prosecutor in the Water- the United Nations, Mr. Trump Trump was captured making ers raised $25.3 million in three
Mr. Trump is receiving ad- gate investigation, will serve as called Mr. Giuliani a “great lewd comments about women, months for his Democratic
vice from two very different his lawyer in the congressional lawyer” and said: “I’ve few advisers were willing to go presidential bid, his campaign
lawyers: Mr. Giuliani, who blan- investigations. Mr. Sale didn’t watched the passion that he’s on the Sunday talk shows to de- said Tuesday, exceeding the $18
kets the airwaves morning and immediately respond to a re- had on television over the last fend the candidate. Mr. Giuliani million he raised in each of the
evening with combative inter- quest for comment. few days. I think it’s incredible taped all five shows—after previous two quarters this year.
views and is prone to exaggera- Democrats have used the the way he’s done.” which Mr. Trump attacked him Mr. Sanders and Massachu-
tion; and Mr. Barr, a more mea- Trump-Zelensky phone call to “The only person that likes for his performance. “Man, setts Sen. Elizabeth Warren
sured figure but one who has raise questions about Mr. Rudy on TV right now is Rudy, you sucked. You were are financing their primary
drawn criticism for appearing Barr’s own conduct. “I do think Trump,” said another person weak. Low energy,” the candi- campaigns through small con-
overly close to Mr. Trump. the attorney general has gone close to the president, adding date told him, according to a tributions, rather than seeking
As Mr. Trump’s personal rogue,” House Speaker Nancy that Mr. Trump “likes people book by two former campaign larger donations by making
lawyer, Mr. Giuliani’s job is to Pelosi (D., Calif.) said Friday on who get on TV and fight for aides, Corey Lewandowski and calls and attending fundraising
defend the president; as attor- CNN. “Since he was mentioned
Rudy Giuliani is a him.” David Bossie. events. Ms. Warren’s campaign
ney general, Mr. Barr’s is to in all of this, it’s curious that ‘great lawyer,’ said Mr. Giuliani said he hasn’t Mr. Giuliani rarely com- hasn’t said what it raised dur-
defend the Justice Department he would be making decisions heard of any frustrations with plained about such treatment, ing the three-month period
and the institution of the pres- about how the complaint
President Trump on him. Asked about criticism of jockeying with other aides and that ended Monday.
idency. would be handled.” Wednesday. his attacks on Mr. McGahn, he advisers to sit next to Mr. While many of the 19 Demo-
Yet Mr. Trump at times re- Some argued he should have said in an interview that he Trump at dinner or on the cratic presidential candidates
fers to the two men almost in- recused himself from legal de- wasn’t aware of Mr. Barr’s plane. “Rudy never wanted to are struggling to reach 165,000
terchangeably. In a July call cisions surrounding a whistle- concerns. be left out,” one former aide donors—one of the party’s re-
with Ukrainian President Volod- blower complaint about Mr. at a Kremlin-backed confer- “Maybe he should notice said. “If you were ever be- quirements for making the No-
ymyr Zelensky in which Mr. Trump’s call with Mr. Zelensky ence, only to reverse himself that McGahn hasn’t testified,” tween Rudy and the president, vember debate stage—Mr.
Trump pressed his counterpart and other matters which ulti- hours later. Mr. Barr, in con- Mr. Giulani said, referring to a look out. You were going to get Sanders says he has raised
to investigate Democrat Joe Bi- mately led House Democrats to trast, departed for Italy for a subpoena for Mr. McGahn’s trampled.” money from one million people
den, Mr. Trump didn’t draw a launch a formal impeachment previously scheduled trip and testimony from a House com- After the election, Mr. Giu- and that his average donation
distinction between the roles of inquiry. hasn’t spoken publicly. mittee investigating Mr. liani was eager for an adminis- is $19. Donors can give a maxi-
Messrs. Giuliani and Barr, say- The Justice Department ini- On Monday, a Justice De- Trump’s efforts to curtail the tration post—foremost, that of mum of $2,800 to a candidate
ing repeatedly that he would tially blocked the complaint partment official said Mr. Barr Mueller investigation. “I love attorney general. He didn’t get for the primary election.
have both of them call to dis- from being turned over to Con- had asked the president to when people Monday morning it. The small-donor focus
cuss the possible Biden investi- gress, advising the director of make introductions in several quarterback what you decide Yet Mr. Trump valued his helped Mr. Sanders avoid a
gation and other matters. national intelligence that it countries that may have infor- as a lawyer.” loyalty. In staff meetings at the summer fundraising slump.
“When he was in private didn’t constitute an urgent mation relevant to a federal Since joining the president’s White House, the president Political candidates often find
life, Trump was accustomed to concern that required report- probe into the origins of the legal team in April 2018, Mr. would pre-empt complaints the third quarter the most dif-
having lawyers where he was ing to the intelligence commit- Mueller investigation, which Giuliani has developed a repu- about Mr. Giuliani’s behavior ficult time of year to raise
the client, he would give direc- tees. Justice Department law- Mr. Trump has repeatedly de- tation for combative TV inter- on television by interrupting money. But Mr. Sanders raised
tives and they’d do their best yers then said they didn’t find cried as a “witch hunt.” views. Mr. Barr, in contrast, is and making clear that he ap- slightly less this summer than
to fulfill his directives,” a for- enough evidence to warrant Despite legal careers that blunt yet more careful in his preciated how hard the former he did in the summer of 2015,
mer senior administration offi- opening a criminal investiga- intersected under Mr. Trump, public statements. mayor was fighting for him. when he hauled in $26.2 mil-
cial said. “The government tion into possible campaign-fi- people close to Mr. Barr say he Mr. Giuliani has known the “Everyone shuts up after lion while challenging even-
works a little bit differently. nance violations. and Mr. Giuliani have never president for decades, but bol- that,” a White House aide said. tual nominee Hillary Clinton.
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THE WALL STREET JOURNAL. * * * * Wednesday, October 2, 2019 | A5


Black Voters
Measure Up
Biden Rivals

The ex-vice president
has broad support, but
some Democrats say
they are open to others

Kim Solomon was surprised

to see Democratic presidential
candidate Kamala Harris seated
in the first row of pews at
Royal Missionary Baptist
Church in the predominantly
African-American city of North
Charleston, S.C.
Ms. Solomon, of Huntsville,
Ala., has been supporting for-
mer Vice President Joe Biden
and knew almost nothing about Joe Biden, shown in July at Morris Brown AME Church in Charleston, S.C., has the support of voters like Nicholas Hubbard, left.
the California senator, who is
black. But she is now consider- black Democratic and Demo- facing renewed pressure to de- who often leads the campaign’s runs a nonemergency transpor- Age Gap
ing supporting Ms. Harris when cratic-leaning participants liver strong performances in outreach to younger black vot- tation business in Summerville,
Alabama votes in March. backed Mr. Biden, down slightly Iowa, which holds its first-in- ers, said in an interview. S.C., was fishing off a pier with Younger and older black
“It’s making me want to go from August but higher than the-nation caucuses Feb. 3, and Mr. Biden has maintained his friends on a recent Sunday. He Democratic voters have
out and find out more about any other candidate’s support next-up New Hampshire. national lead among black vot- said he is with Mr. Biden be- different views of the
her,” Ms. Solomon, 54 years old, in that group. Biden campaign “The idea of electability for ers despite a series of contro- cause of “the Obama thing.” primary field:
said of Ms. Harris’s speech, officials say his strength with some is that moderate white versies about race, including But he said Mr. Obama’s en- Enthusiasm for top three
which assailed President black voters proves he can rally people will vote for Vice Presi- his opposition to mandated dorsement of another candidate candidates by age
Trump’s leadership in the White a diverse coalition in 2020, and dent Biden—that’s what gives busing to desegregate schools might sway him away from Mr.
House. “Biden is still the one, the former vice president has him the electability cloak, to in the 1970s and comments re- Biden. “I’ll follow Obama what- Enthusiastic Have some
but I’d at least consider her.” pitched electability as the chief paraphrase Harry Potter,” said garding his work with segrega- ever he says.” (Mr. Obama’s
Black voters like Ms. Solo- argument for his candidacy. Leah Daughtry, who chaired the tionist senators. aides have signaled the former Comfortable Very
mon have been key to Mr. Bi- But Mr. Biden has hit a 2016 and 2008 Democratic na- A big help is his tie to former president is unlikely to endorse
Joe Biden
den’s lead in polls ahead of rough patch in surveys of early- tional conventions. “If he doesn’t President Obama. Rep. Danny early in the primary.)
next year’s Democratic prima- voting states—polls in Iowa win in two of the whitest states Davis (D., Ill.), one of several Several candidates, including Ages 18-49 29% 38 19 10
ries. But interviews with more and New Hampshire recently in the nation, it would raise members of the Congressional Sen. Bernie Sanders of Ver- Age 50 43 39 11
than three dozen black voters showed him trailing Ms. War- some questions going forward.” Black Caucus to endorse Ms. mont, see an opening with or older 2
across key primary states such ren—just as African-American Mr. Biden’s opponents point Harris, said black people tend younger black voters.
as South Carolina suggest many voters, like much of the elector- to the experience of Hillary to view the Obama years as an “It’s wild the oldest person Elizabeth Warren
of his admirers could be per- ate, appear to be increasingly Clinton, the national front-run- era when the country was run- has the best views for young
Ages 18-49 24 30 26 1
suaded to support another can- tuning into the race. ner going into Iowa in 2008. ning in the right direction. people,” Nicholas Hubbard, 23,
Age 50 17 39 21 7
didate—particularly if they be- The newly launched impeach- She lost there to Barack “Vice President Biden was a said of Mr. Sanders, who at 78 is
or older
gin to believe someone else ment proceedings against Mr. Obama, and her black support part of that,” Mr. Davis said, ar- the oldest Democratic candidate.
could win the general election Trump, stemming from the pres- in other states collapsed. guing Mr. Biden has a reservoir Still, Mr. Hubbard, a com- Bernie Sanders
in November. Besides Ms. Har- ident’s pressuring Ukraine to in- The Biden campaign has of goodwill among older black puter-science major at South
ris, some voters expressed vestigate Mr. Biden’s son’s work pushed back on the comparison. voters in particular. Carolina State University, said he Ages 18-49 29 44 21 4
growing interest in Elizabeth in Ukraine, add uncertainty to “That argument was specifically As the first state on the is supporting Mr. Biden for now Age 50 14 46 23 10
Warren, and recent polls show the primary—though other about then-Sen. Obama’s ability nominating calendar where the based on a purely pragmatic be- or older
the Massachusetts senator Democratic candidates are so far to put together a coalition of Democratic electorate is mostly lief: He could beat Mr. Trump.
earning more black support. largely sidestepping questions white people. And that is not black, South Carolina offers a “Until I see something that Note: ‘Don’t know/not sure’ responses
A September Quinnipiac Uni- about the former vice president. what this is,” Symone Sanders, unique test for 2020 hopefuls. makes me think otherwise, I’m not charted
versity poll found that 40% of All that means Mr. Biden is a senior adviser to Mr. Biden Antonio Thompson, who not changing,” he said. Source: Merged 2019 WSJ/NBC News polls

Harvard affirmative action at a private

university to come before the
nine justices.
American students who were
rejected by Harvard.
Judge Burroughs noted the

Wins on Harvard has said race is

one of many factors it takes
into consideration in making
absence of such students from
the presentation of the case,
saying “SFFA did not present a
Maximize Warehouse Productivity
with Automation
Admissions admission decisions, and that
race alone is never the reason
a student is granted or denied
single Asian American appli-
cant who was overtly discrimi-
nated against or who was bet- Flexibility and scalability: a wide variety of systems
admission. ter qualified than an admitted for pallets and boxes.
Continued from Page One Judge Burroughs agreed, white applicant when consid-
a lawsuit alleging the school saying in her ruling that while ering the full range of factors Maximum space utilization.
imposed a penalty on Asian- “race is an important consid- that Harvard values in its ad-
American applicants by hold- eration in deciding to admit missions process.”
Real-time inventory and stock control.
ing them to a higher standard many African American and At trial, a central tenet of Optimal profitability to keep you a step ahead of the competition.
than applicants of other races. Hispanic applicants,” it is the plaintiffs’ argument fo-
The lawsuit, filed in 2014 never the “defining feature” of cused on an aspect of Har-
by a nonprofit group called applications. vard’s admissions review
Students for Fair Admissions, She said the magnitude of called the personal rating.
accused the university of en- the boost those applicants are Asian applicants consistently
gaging in “racial balancing,” given is modest considering scored lower than white appli-
similar to quotas, and limiting how well-qualified all admit- cants on that measure but per-
the number of Asian-American ted students are. formed better on extracurricu-
applicants who are admitted. Since Asian-Americans now lar and academic ratings.
The group is led by conser- make up roughly one-quarter Judge Burroughs said all
vative legal activist Edward of Harvard’s admitted class three ratings include subjec-
Blum, who spearheaded a sim- but only account for about 6% tive and objective elements.
ilar lawsuit against University of the U.S. population, the While implicit bias—by ad-
of Texas-Austin that reached judge said, “it is reasonable missions officers or by teach-
the Supreme Court. The group for Harvard to determine that ers and guidance counselors
also has a case pending students from other minority who write recommendations—
against the University of may affect the ratings “at the
North Carolina at Chapel Hill. margins,” Judge Burroughs
Judge Burroughs’s decision wrote, the differences don’t
is the first major ruling in a
The judge affirmed a prove intentional discrimina-
legal battle that could funda- ‘very fine admissions tion “and would not be cured
mentally reshape undergradu- by a judicial dictate that Har-
ate admissions.
program that passes vard abandon considerations
The lawsuit challenges a constitutional muster.’ of race in its admission pro-
bedrock principle of American cess.”
higher education supported by Judge Burroughs found in
four decades of Supreme her ruling that the expert
Court precedents: that univer- backgrounds are more likely to analysis of six years of admis-
sities should be allowed to offer perspectives that are less sions data, on which both
consider an applicant’s race in abundant in its classes and to sides relied heavily, proved in-
crafting their undergraduate therefore primarily offer race- conclusive.
class because diverse cam- based tips to those students.” “Even assuming that there
puses have educational bene- Harvard applauded the rul- is a statistically significant
fits, such as better preparing ing, with President Lawrence difference between how Asian
students for the global work- Bacow saying the decision al- American and white applicants
force. lows the school to “reaffirm score on the personal rating,
Court filings and testimony the importance of diversity— the data does not clearly say
from the bench trial brought and everything it represents what accounts for that differ-
to light a number of unflatter- to the world.” ence,” she wrote.
ing but captivating facts about Mr. Blum said Tuesday his “In other words, although
Harvard’s admission process, group was disappointed with the statistics perhaps tell
including how legacy status or the outcome and would appeal ‘what,’ they do not tell ‘why,’
donor connections can help the decision to the First U.S. and here the ‘why’ is critically
applicants, and just how much Circuit Court of Appeals and, important.”
of a boost one can get by be- if necessary, to the U.S. Su- However, the judge said
ing a recruited athlete. preme Court. such statistical reviews can
The judge said eliminating “We believe that the docu- help Harvard and other
those preferences may im- ments, emails, data analysis schools find problems and
prove socioeconomic diversity, and depositions SFFA pre- anomalies, and “should be
but on their own such changes sented at trial compellingly re- used as a check on the process
wouldn’t help with racial di- vealed Harvard’s systematic and as a way to recognize
versity and could weaken the discrimination against Asian- when implicit bias might be
academic strength of Har- American applicants,” he said. affecting outcomes.”
vard’s class and hurt alumni Students for Fair Admis- Judge Burroughs also sided
relations. sions declined to identify indi- with Harvard in finding there
Should the Harvard lawsuit vidual plaintiffs in bringing its were no sufficient race-neutral
reach the Supreme Court, it case but says it has 22,000 alternatives to current poli-
would be the first challenge to members, including Asian- cies.
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A6 | Wednesday, October 2, 2019 * * THE WALL STREET JOURNAL.

District Becomes a Combat Zone Injured
Protesters and police from the sidelines to hurl abuse.
clash in Hong Kong’s
Sha Tin residential
“You guys are crazy!” one
man shouted at the police. A
woman chimed in: “There are a
Is ‘Bravest
lot of people living up there!”
Before dusk, another group
of protesters advanced toward
BY JOHN LYONS the scene across a nearby BY JOYU WANG
AND CHUN HAN WONG bridge, blocked only by a AND WENXIN FAN
group of about 40 police offi-
HONG KONG—They started cers. A commander on the HONG KONG—The high-
streaming toward confrontation bridge directed his team’s school student shot in the


on a sunny Tuesday afternoon. shooting, alternating between chest by police during a street
A parade of young and mid- tear gas and rubber rounds. battle on Tuesday is a sea-
dle-class Hong Kongers, For a few tense minutes, it soned protester who is “never
dressed in black, couples walk- appeared the protesters, ad- afraid to speak his mind and
ing hand in hand, moved along vancing under the cover of would put his words into ac-
a placid river in what looked umbrellas and traffic barriers, tion,” according to a cousin.
more like a procession for would overrun the small force. Tsang Chi-kin, 18 years old,
peace than a march toward Then a large number of elite became the first protester to
battles where some would pick riot-police officers ran to the be shot with live ammunition
up Molotov cocktails and scene and led a baton charge on the increasingly perilous
bricks and hurl them at police. across the bridge. The protest- front lines of the protest
Yet by midafternoon, the ers swiftly retreated, regroup- movement that began in Hong
northern suburban district of ing about a block away. Kong in early June.
Sha Tin had become a combat As daylight waned, police Witness accounts and vid-
zone, one that brought into cleared the crowds in the eos put Mr. Tsang, wearing a
sharp relief the conflict be- Police detained protesters in the Sha Tin district on Tuesday, as violent demonstrations erupted. town center. Officers fired re- gas mask with a pink filter,
tween a city seething against peated volleys of tear gas and among a group of protesters
what protesters see as in- they fired real bullets six front of a shopping mall. A group of police officers in rubber projectiles as they wielding metal bars who
creasingly violent police tac- times on Tuesday. In recent “Does anyone have any bet- riot gear arrived to loud jeers charged at protesters, fought with police during af-
tics and the isolated and out- weeks, officers have fired ter ideas?” he yelled. After a of “Black police, may your en- prompting many to flee. ternoon demonstrations in the
numbered officers tasked with warning shots when outnum- vote, some in the group de- tire families die,” and “Five They left empty streets be- district of Tsuen Wan.
maintaining order. bered or under attack. cided to build a perimeter and demands, not one less,” a ref- hind them. Strips of paper One video shows Mr. Tsang
A police communiqué the The march in Sha Tin, the prepare for a fight. erence to protesters’ call for money, labeled “hell ban- swinging a bar at a police offi-
night before struck an omi- city’s biggest residential dis- Hundreds of protesters took government concessions in- knote” and typically burned at cer, who shoots him at close
nous note about the mood trict, started from an iconic over the above-ground maze cluding an independent in- funerals, lay strewn across the range with a pistol. Another
among officers. It said investi- temple dedicated to an ancient of balconies and overpasses, quiry into police violence. roads along with metal fenc- shows Mr. Tsang lying on the
gators believed some violent, Chinese general and attracted gaining a height advantage. The officers, numbering ing, bricks, broken umbrellas ground talking as blood spilled
hard-core protesters were several thousand people by They dragged bricks to the about 100, lined up across an and spent tear-gas shells. A from the left side of his chest.
plotting to kill police, perhaps the time it reached the inter- scene in public garbage bins intersection. Some protesters dropped cellphone started He shouts his name and asks to
by using disguises to get in connected residential towers and lined them up alongside hurled bricks and Molotov ringing, the music echoing be sent to hospital. “My chest
close. Protesters haven’t been and shopping malls at its ur- full cans of Coke and beer on cocktails. In response, police down the deserted street. hurts so much,” he says.
known to use such tactics, but ban center. the parapet. Asked if he fired volleys of tear gas and The sun started to set, and Mr. Tsang is “the bravest
the statement was a signal the Protesters dug up bricks to planned to throw the cans at less-lethal ammunition such as a helicopter whirred overhead. type,” said his cousin, Thomas
police would be on edge. use as projectiles, erected tri- the police, one protester re- rubber projectiles. Moments later, a series of Chan, who described Mr. Tsang
On the other side of the ter- angular barriers from roadway sponded with a grin, “Maybe.” Some tear-gas shells landed dull pops echoed through the as the family’s leading pro-
ritory, a police officer under fences and debated strategy. Behind him, a group partly near residential apartments, neighborhood. Tear gas wafted tester. Mr. Tsang was arrested
attack shot an 18-year-old pro- One young man suggested shielded from view prepared prompting a group of middle- through the air. Another street for assaulting police officers,
tester in the chest. Police said building defensive lines in dozens of Molotov cocktails. aged men and women watching battle had begun. but hasn’t been charged.

Hong Kong that has turned the city that

we call home into an unfamil-
iar place.”

Police Shoot Mr. Xi said during the Bei-

jing festivities that “no force
can shake the great foundation

Protester of our nation” and that it re-

mained committed to the
strategy of peaceful unifica-
tion and “One Country, Two
Continued from Page One Systems,” an arrangement that
While Beijing has indicated gives Hong Kong more auton-
its preference to let the city’s omy than in the mainland.
government take the lead in Demonstrators in Hong
resolving the crisis, mainland Kong were intent on marring
officials have warned that they
reserve the right to step in if
the situation gets out of hand.
Some Chinese academics have
China officials warn
urged Hong Kong’s govern- they reserve the right
ment to consider invoking
emergency laws that would al-
to act if the situation
low local police to take gets out of hand.
tougher measures to restore
order, including expanded ar-
rest powers, asserting control
over transportation and cen- the big day, expressing opposi-
soring media. tion to Mr. Xi’s vision of a
The protests are aimed at a united country. The city was in
perceived erosion of the city’s virtual lockdown for most of
liberties by China and the tac- the day, with dozens of malls
tics of the city’s police, who and more than half the city’s
have angered people across subway stations shuttered by

Hong Kong after a number of the evening.

violent incidents were caught In Sha Tin, the city’s largest
on video. residential district, protesters
“It’s a dark turn,” Ho-Fung seized overpasses and rained
Hung, a political-economy pro- rocks, Molotov cocktails and
fessor at Johns Hopkins Uni- full soda and beer cans down
versity, said of the shooting. on outnumbered police. Police
“The movement and the con- responded with multiple
flict has passed the point of no rounds of tear gas and other
return, and the use of live am- A police officer, below, in Hong Kong’s Causeway Bay neighborhood took aim at protesters who gathered en masse on Tuesday. projectiles.
munition is adding fuel to the About 20 miles away in
fire.” business districts and turned Tuen Mun, protesters armed
Besides the bill’s with- out in suburbs across the ter- with sticks and umbrellas
drawal, protesters have four ritory in anti-China counter- charged a small contingent of
other demands. Chief among rallies to the National Day cel- police in riot gear. The police,
them is the establishment of a ebrations. Their tactics left cornered against a building,
judge-led commission to inves- police thinly stretched and fought back with batons and
tigate violent behavior by the outmatched in spots, leading pepper spray but were quickly
police. Hong Kong leader Car- to pitched battles. overwhelmed and forced to re-
rie Lam has resisted appoint- Police said they fired live treat inside. Police said pro-
ing such a commission while ammunition six times over the testers in the neighborhood
another policy inquiry plays course of the day. More than also threw corrosive fluid on
out. There are no active nego- 180 arrests were made, police officers.
tiations to resolve differences said. Health officials said 74 Thousands more protesters
between the protesters and people, aged from 11 to 75, filled a main road through the
the government. were hospitalized early heavily populated district of
In response to the police Wednesday, including two in Kowloon, across the harbor
shooting of Mr. Tsang, inter- critical condition. from downtown Hong Kong,
net users on LIHKG, a Reddit- Shortly after reports of the where thousands more people

like news site popular among shooting—which occurred in occupied streets until being
protesters, called for more the western district of Tsuen cleared as water cannon and
people to support a citywide Wan—emerged, huge numbers riot police firing tear gas ad-
strike planned for Wednesday. of police swept through cen- vanced.
“There will be a second shot tral districts on Hong Kong is- “For Hong Kong people,
after the first one was fired,” land to break up protesters there’s nothing to celebrate
one post read. that joined the day’s biggest today,” said Bonnie Leung,
Pro-government lawmakers march, which police had who was in the leadership of
urged the government to in- banned. quiet at some battlegrounds, and carrying offensive weap- lant anniversary celebrations the Civil Human Rights Front
voke sweeping emergency A woman originally from though skirmishes continued ons, he said. in Beijing that included the when the group applied for
powers to quell the unrest, a the U.K. fell to the ground af- into the evening. An initial assessment of the country’s biggest-ever military police permission to stage a
move the government has de- ter being hit by a projectile In a rare public address, the shooting in a life-threatening parade to showcase the na- march on Tuesday, but was
scribed during the current un- police fired outside Admiralty city’s police chief, Stephen Lo, situation made it seem to be tion’s might. denied.
rest as a last resort. Such subway station. She said she blamed violent protesters for legal and reasonable, he said, Mrs. Lam was seen in Bei- “China has a habit of silenc-
powers were previously in- had lived in Hong Kong for 25 endangering officers’ lives and though the force would inves- jing smiling as she watched ing people during ‘celebra-
voked in 1967 when Hong years. “I just don’t want to see forcing them to draw guns. tigate further. the parade, which featured a tions’ like National Day to cre-
Kong was a British colony and this,” she said. “This is my “Today is really sad for “We are heartbroken and Hong Kong float carrying a ate a cosmetic peaceful scene,”
police shot leftist Chinese pro- home; this is my children’s me,” said Mr. Lo, referring to worried,” Mr. Lo said of the golden egg, a reference to the she said. “It might work in
testers who revolted while home.” widespread chaos that saw teenager’s injuries. “I believe city’s science park. In Hong Beijing, but it would never
China was in the tumult of the Clashes raged across more subway stations attacked and that no one would like to see Kong, her deputy, Matthew work in Hong Kong.”
Cultural Revolution. than a dozen districts across storefronts—particularly busi- other people injured—no mat- Cheung, led a Chinese-flag- —John Lyons, Chun Han
Tuesday’s shooting hap- the city, many simultaneously. nesses perceived as being pro- ter if they are officers, report- raising ceremony in the morn- Wong, Wenxin Fan,
pened as tens of thousands of As protesters were alerted to China—smashed. Arrests were ers or protesters.” ing, telling guests that Hong Mike Bird, Lucy Craymer
demonstrators poured into the the shooting on their smart- made for rioting, unauthorized The scenes in Hong Kong Kong people were “shocked and Jing Yang
streets of Hong Kong’s main phones, there was temporary assembly, attacking officers contrasted with colorful, jubi- and saddened by the violence contributed to this article.
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THE WALL STREET JOURNAL. * * * * Wednesday, October 2, 2019 | A7


China Narrows Weaponry Gap With U.S.


BEIJING—The sophisticated
Chinese weaponry paraded
past Tiananmen Square on
Tuesday, including a new hy-
personic missile and a stealth
combat drone, sent a clear
message to Washington: In
military terms, the U.S.’s tech-
nological advantage over
China is shrinking fast.
The display, marking the
70th anniversary of Communist
Party rule in China, highlighted


the People’s Liberation Army’s
growing emphasis on its mis-
sile force, as well as on un-
manned systems and electronic
warfare, defense experts said.
Although primarily designed
to show strength for a domes-
tic audience, it also demon-
strated how China is increas-
ingly developing and deploying
indigenous weaponry on a par
with, or in some cases more POMP AND POWER: China's Dongfeng-26 conventional and operations as critical elements
advanced than, the U.S. and its nuclear missiles, top, were paraded in Beijing on Tuesday for the of future combat across all do-
allies, those experts said. 70th anniversary of Communist rule. The Dongfeng-17 hypersonic mains of warfare,” said Elsa
While China still lags far be- missile, right, made its public debut, and Beijing surprised Kania, a research fellow fo-
hind the U.S. in overall fire- defense experts with a pair of underwater drones. cused on Chinese military in-
power and combat experience, novation at Georgetown Uni-
it now has a broad range of do- versity’s Center for Security
mestically produced arms de- and Emerging Technology.
signed to project Chinese power

far from its shores and to pre- HSU001 UNDERWATER

vent America and its allies from

intervening in a conflict in Asia.
Tuesday’s parade is likely to One highlight of the parade
intensify calls in the U.S. for that took many defense experts
tighter controls on transfers to by surprise was a pair of large
China of technology or expertise unmanned underwater vehi-
with any potential military use. cles, or UUVs, that were dis-
Here are some highlights: played for the first time. They
had “HSU001” written on their
That allows it to evade current technology by China and Rus- tem, the DF-41 has clearly been final version of an earlier sides and appeared to be
DF-17 HYPERSONIC missile-defense systems. sia. Lockheed Martin Corp. ex- designed and deployed with de- model known as Sharp Sword. mounted with a set of sensors.
MISSILE “China is now, in some pects test flights of its first terring the United States in With a wing design similar That suggested that they
Making its public debut, the spheres of military technology, prototype missiles next year. mind,” said Andrew Erickson, an to that of an American B-2 could be used to track foreign
Dongfeng-17, is thought to be ahead of any Western nation,” expert on the Chinese military strategic bomber, the drone is naval vessels, either to protect
China’s first operational mis- said Sam Roggeveen, director DF-41 ICBM at the U.S. Naval War College. designed to sneak undetected Chinese nuclear missile sub-
sile mounted with a hyper- of the International Security “This system has long been into enemy-controlled airspace marines or to monitor other
sonic glide vehicle—capable of Program at the Lowy Institute The biggest piece of weap- known, but had never been and to fire missiles at targets countries’ naval operations
flying at more than five times in Sydney. onry on display was the Dong- seen,” said Ankit Panda, an ad- beyond the reach of manned farther afield.
the speed of sound—and the He said it was likely de- feng-41, or DF-41, a road-mo- junct senior fellow at the Fed- combat aircraft. Some experts said they re-
first such weapon deployed signed to be used in the Asia- bile intercontinental ballistic eration of American Scientists. It could greatly enhance sembled the Orca extra-large
anywhere in the world, de- Pacific region as one of several missile, whose estimated China’s aerial firepower in a UUV, which is being built for
fense experts said. weapon systems meant to deter range of 7,500 miles allows it GONGJI-11 STEALTH potential conflict over the the U.S. Navy by Boeing Co.
Once launched, the missile is the U.S. and its allies from en- to conduct a nuclear strike on South China Sea, Taiwan or “The rolling out of this large
designed to release a hyper- gaging China in conflict there. any part of the U.S.
COMBAT AERIAL DRONE points beyond. Some experts UUV is significant as only a
sonic glide vehicle that can The Pentagon has identified It can carry multiple re-entry Also on display for the first said they expect it to be used few major powers have man-
cruise at relatively low altitude hypersonic missiles and sys- vehicles, which are designed to time was a stealthy combat on China’s next generation of aged such programs,” said Col-
and speeds above Mach 5, or tems to defend against them as evade missile-defense systems. aerial drone called the aircraft carriers. lin Koh, research fellow at the
about 3,400 miles an hour, among its highest priorities, “China’s most powerful and Gongji-11, or GJ-11, which Chi- “This parade illustrates the S. Rajaratnam School of Inter-
changing direction if needed. citing development of similar advanced nuclear weapons sys- nese state media said was the PLA’s embrace of unmanned national Studies in Singapore.

North Korea Fires Missiles

After Agreeing to U.S. Talks
BY ANDREW JEONG ating table. vides over how, and when, the
AND DASL YOON On Tuesday, state media regime would relinquish its nu-
quoted First Vice Minister of clear program in return for
SEOUL—North Korea said it Foreign Affairs Choe Son Hui sanctions relief.
would resume working-level as saying North Korea and the Pyongyang’s most recent
talks with the U.S. on Saturday, U.S. plan a preliminary meet- launch is “a statement that it is
reviving a denuclearization ing on Friday followed by offi- not being pressured into talks
process that has been stalled cial talks the next day. but intends to negotiate from a
since a February summit in Ms. Choe is one of leader position of strength,” said Leif-
Vietnam ended without a deal. Kim Jong Un’s most prominent Eric Easley, a professor at Ewha
Hours later, the North fired interlocutors with the U.S. The University in Seoul.
two ballistic missiles off the state-media report didn’t One of the missiles traveled
country’s east coast on specify where the negotiations about 280 miles and soared to
Wednesday morning, Japanese would take place. The State an altitude of 565 miles, the
officials said. Department confirmed the South Korean military said. The
The weapons launch was meeting without providing de- missile flew much higher than
North Korea’s ninth since July tails. any of Pyongyang’s other tests
25. It last test-fired a weapon Nuclear talks have remained this year, suggesting it was a
about three weeks ago—a gridlocked since the two sides new type of weapon.
launch that came hours after
Pyongyang signaled it was will-
ing to come back to the negoti-
failed to strike a deal eight
months ago in Hanoi. The
breakdown revealed deep di-
—Timothy W. Martin
and Alastair Gale
contributed to this article.
You can help
New Japan Tax Hike Tests Economy end AIDS
BY MEGUMI FUJIKAWA gotten back to its level before for quarterly data to act be-
the previous tax increase in cause it might be too late. “We
TOKYO—Japan raised its na- April 2014, when the tax rose will try to catch the direction
tional sales tax for the first to 8% from 5%. “The tax in- or get a sign by analyzing daily
time in more than five years on crease clearly kept destroying and weekly indicators,” he said. UNAIDS is working to end the AIDS epidemic as a
Tuesday, putting the world’s the Japanese economy,” said Initial signs suggested the
third-largest economy and its Taro Yamamoto, leader of a economy could be in for at global public health threat by 2030.
cautious consumers to the test. small opposition party that ad- least a partial repeat of 2014,
After postponing it twice, vocates eliminating the tax. when consumers rushed to buy
Prime Minister Shinzo Abe’s Aware of the risk, Mr. Abe’s before the tax increase and Ending AIDS is everybody’s business – please join us
government went ahead with government is returning more then held back afterward.
raising the tax to 10% from 8%. than half of the money raised At electronics retailer Bic in leveraging your resources to:
Mr. Abe said the government by the latest tax increase to the Camera Inc., sales of refrigera-
needed more money to support tors, washing machines and air
a fast-aging population. conditioners in September • Provide workplace programs for HIV prevention,

“This will be a big step to- were double last year’s level, a
ward building a social security spokesman said.
testing and treatment
system to benefit all genera- Mitsubishi UFJ Morgan
tions,” he said. “We will keep a Stanley Securities expects the
close eye on the impact of the New national sales levy, up economy to shrink an annual- • Influence policy to strengthen community health
increase and take all possible from 8%, and 5% before 2014 ized 3.2% in the October-De- systems and prevention programs
measures.” cember period because of weak
Critics including populist private consumption.
lawmakers on the left and Still, the impact this time
some right-wing economists public through new benefits in- may not be as bad as 2014 be-
• Innovate solutions in pharmaceutical, diagnostics,
sympathetic to Mr. Abe called cluding free preschool and cause many retailers are swal- service delivery, finance and tech
the tax increase unnecessary point rewards for purchases lowing the increase them-
because the government has no made with credit cards, smart- selves, which will slightly dent
problem borrowing money, phone apps or other cashless corporate profits but spare the Please visit unaids.org or email partner@unaids.org
even though its outstanding methods. consumer.
debt is double the size of the The government is also “Japanese companies have today to partner on solutions that will realize the
economy. ready to rush an extra budget shifted their stance back to low
The 10-year government through parliament with more prices after price increases vision of ending AIDS.
bond currently has a yield of spending in case the economy seen in 2014 and 2015 caused
minus 0.16%, meaning investors slips. sharp drops in sales,” said Na-
have to pay for the privilege of Economic revitalization min- omi Muguruma, a Mitsubishi
lending Japan their money. ister Yasutoshi Nishimura said UFJ Morgan Stanley Securities
Consumption has only now Monday that he wouldn’t wait economist.
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A8 | Wednesday, October 2, 2019 * **** THE WALL STREET JOURNAL.


Military Aid
Brings Libya
To Stalemate
Fight for the capital better armed, with more com-
mitted foreign backers.
drags on with support Mr. Sarraj said that in addi-
to both sides from tion to receiving military sup-
port from Egypt and the
foreign powers United Arab Emirates, Mr. Haf-
tar is employing mercenaries
BY RAJA ABDULRAHIM from Africa. He said his gov-
ernment has also found evi-
TRIPOLI, Libya—When Tur- dence—including personal ef-
key sent armored vehicles here fects found on the battlefield
in May to help stave off an at- and videos posted online—that


tack on the capital, there was a Russian private military con-
problem: The trucks didn’t tractors are fighting alongside
have mounted machine guns. Mr. Haftar’s forces.
“Because they lack weap- Foreign interference “is
ons, they do us more harm making the situation more dif-
than good,” said militia com- ficult. It is not helping Libyans
mander Yusuf bin al-Amin. sit down and find a solution,”
“They are essentially just he said.
closed boxes, and those inside The militias defending the
die if it’s hit with a missile.” capital say they often rely on
Foreign powers have fun- Soviet-era weapons left over
neled military support to both from the fallen regime of Col.
sides of Libya’s civil war—but Moammar Gadhafi, to hold off
not enough to give either a de- Mr. Haftar’s forces. As bullets Yusuf bin al-Amin, above, commands a militia supporting the United Nations-backed government in Tripoli. His fighters, including
cisive advantage. flew over their heads, young these operating from a house south of the capital, work with limited, often defective equipment, some of it from the Soviet era.
On one side is the United militia members on the front
Nations-recognized Govern- line on the southern edge of
ment of National Accord, or Tripoli struggled recently with In Capital in Limbo,
GNA, which controls Tripoli a Soviet-era 120 mm mortar.
and much of the country’s west To avoid a dangerous misfire, ‘People Are Tired’
with help from arms supplied one fighter tied a white rope
by Turkey. On the other is the to the launcher’s switch, al-
attacking force of Khalifa Haf- lowing it to be fired from a Gas lines in Libya’s capital
tar, a Libyan-American dual nearby house. snake around entire blocks,
citizen who rules the country’s “If we were with Haftar, matched only by those of
east and south with help from you’d see all new weapons,” people waiting at banks low
Egypt, the United Arab Emir- said Muneer al-Swaih, a 32- on cash. Across Tripoli, con-
ates and Saudi Arabia. year-old member of Mr. al- struction projects have sat
In June, the government re- Amin’s militia. unfinished for years with
captured the strategically im- Mr. al-Amin lamented the cranes still hovering overhead.
portant town of Gharyan, south state of his militia’s equip- In a bank line, Amnia Ibra-
of Tripoli, from Mr. Haftar. But ment, as a young fighter drove him, a 52-year-old high-school
since then the conflict has up an oft-targeted road on a art teacher and mother of six,
stalled, with efforts to broker moped. “This is what we drive said she and her husband had
peace sidelined by fighting. to the front-line on,” he said. taken additional jobs to sup-
The conflict risks becoming Mr. al-Amin wore cargo port their family because her
another dragged-out war in a pants, a black T-shirt and san- bank branch rarely has cash
region where foreign powers dals. Like many of his fighters, to dispense.
are also major actors in Yemen he has eschewed traditional try. In May, Turkey began lars in financial aid before his Washington has for years Over the previous four
and Syria. combat gear because of the delivering armored vehicles advance on Tripoli, according supported the GNA and ini- days, power outages had
“This is not a war between heat, making the government’s and armed drones to Tripoli, to senior advisers to the Saudi tially condemned Mr. Haftar’s blanketed Tripoli, leaving her
Libya’s east and west,” said forces look more like ragtag selling $350 million of military government, which says it offensive. But at the urging of without electricity.
Fayez al-Sarraj, prime minister fighters than an army. equipment to the GNA, said maintains an even hand in Saudi Arabia and Egypt, Presi- As the conflict drags on
of the GNA. “It is between Mr. Haftar has framed his people familiar with the Libya and backs U.N. media- dent Trump called Mr. Haftar between Khalifa Haftar’s
people who back civilian gov- offensive as a liberation of matter. tion efforts. The Saudi govern- in mid-April and “discussed a forces and militias defending
ernment and those who want Tripoli from a weak govern- But Turkish President Re- ment hasn’t commented about shared vision for Libya’s tran- the city, some in Tripoli have
military rule.” ment that can’t keep the elec- cep Tayyip Erdogan is hesitant its support to Mr. Haftar. sition to a stable, democratic warmed to Mr. Haftar.
More than 1,000 people tricity on, fill bank coffers or to be sucked deeper into an Egypt and the U.A.E. have political system,” the White “I think he will bring back
have been killed during the control the militias that patrol arms race with wealthy Gulf provided air support to Mr. House said. order,” Ms. Ibrahim said of Mr.
battle for the Libyan capital its streets. states, the people said. Haftar’s forces, according to a “This muddled, divided Haftar. “People are tired.”
according to the U.N.; entire The Saudis and some other A Turkish government U.N. panel that monitors a 2011 global approach has been a Protesters once demon-
Tripoli suburbs have been Middle Eastern states have spokesman declined to com- arms embargo that limits sup- gift to Libyan actors on the strated against Mr. Haftar on
evacuated and hospitals have backed Mr. Haftar, saying he is ment on the equipment sold to port to both sides. Egypt denies ground, because they can turn Fridays at Tripoli’s Martyrs
been bombed. a bulwark against Islamist Libya. Turkish officials said its it has provided air support and to different sides,” said Fred- Square, where Moammar
For months, militia com- groups, notably the Muslim arms sales were concluded the U.A.E. hasn’t acknowledged eric Wehrey, a fellow at the Gadhafi used to hang dissi-
manders allied with the GNA Brotherhood. within the framework of a 2012 the presence of its aircraft. Carnegie Endowment for In- dents. Now, no one comes ex-
have been clamoring for more Turkey has sought to coun- bilateral defense pact and U.S. officials say they are ternational Peace. cept for families seeking dis-
Turkish weapons for a decisive ter the influence of Gulf states didn’t violate the embargo. consulting with a range of Lib- —David Gauthier-Villars traction, said a vendor selling
counterattack, complaining in Libya and prevent Mr. Haf- Saudi Arabia offered Mr. yan leaders to bring both sides and Jared Malsin belts and sunflower seeds.
that Mr. Haftar’s forces are tar from taking over the coun- Haftar tens of millions of dol- back to the negotiating table. contributed to this article.

Crisis Divides Peru’s Political Class EL SALVADOR CANADA
BY RYAN DUBE maker was hit in the back of
the head with an orange pylon U.S. Eases Warning Weak Energy Output
LIMA—Peru’s political crisis outside Congress. On Travel Safety Stalled Growth in July
deepened with both the presi- Mr. Vizcarra’s strategy
dent and his vice president stands to improve his approval The U.S. State Department The Canadian economy unex-
claiming to be head of state ratings, currently around 50%, eased its travel advisory for El pectedly stalled in July following

and defiant lawmakers occupy- said Alfredo Torres of pollster Salvador, days after the U.S. four straight monthly advances,
ing the legislature on Tuesday Ipsos Peru. He said Congress government signed an agree- as a decline in oil and gas extrac-
even after it was shut down. has about 10% to 15% support ment with the Central American tion weighed on overall growth.
The turmoil, with roots in a among Peruvians. country to send some asylum Canada’s gross domestic
corruption crisis, culminates a “Everyone agrees with what seekers in the U.S. there. product, which tracks broad ac-
bitter confrontation between the president did,” said Irma El Salvador’s travel advisory tivity in goods and services in
President Martín Vizcarra and Caceres, a 46-year-old in rating was reduced Tuesday to the economy, was essentially un-
Congress, which is controlled Lima’s middle-class San Miguel Level 2, “Exercise increased cau- changed in July from the previ-
by lawmakers from a party neighborhood. “There is so tion when traveling to El Salva- ous month at a seasonally ad-
loyal to jailed opposition much theft in Congress, they dor due to crime.” The State justed 1.970 trillion Canadian
leader Keiko Fujimori. don’t do anything for the Department noted that the dollars (US$1.488 trillion), Statis-
The latest crisis erupted on country.” country has a high murder rate tics Canada said Tuesday. The
Monday when Mr. Vizcarra Hugo Perea, chief economist and other violent crime due to result marks a slowdown from
dissolved Congress, which re- for Peru at BBVA Research, widespread gang activity. the 0.2% month-over-month in-
sponded by suspending the said a drawn-out dispute could It was previously Level 3, the crease posted in June and a re-
president’s powers and swear- hurt a projected economic re- second-highest rating. vised 0.3% advance in May.
ing in the vice president as the President Martín Vizcarra announced the dissolution of Congress covery. He expects the econ- A State Department spokes- On a one-year basis, the
new leader. Peru’s armed on Monday, prompting a standoff with opposition lawmakers. omy to accelerate 3.4% next man said the travel advisory economy grew 1.3% in July.
forces and national police year from 2.5% this year. “If change wasn’t connected to the —Kim Mackrael
backed Mr. Vizcarra late Mon- obstruction…will continue.” sure of Congress was legal. this is not resolved in the next recent agreement on asylum.
day, saying he remained their In the Congress on Tuesday, The tribunal has made no pub- few days, many investors will —Michelle Hackman SPAIN
“supreme leader,” as the public Cecilia Chacón, a leading law- lic statement about the dispute put their plans on hold,” he
also supported him. maker from Ms. Fujimori’s and didn’t respond to calls said. EUROPE Catalonia Rallies
“I think the majority view is Popular Force party, said Mr. seeking comment on Tuesday. Peru’s biggest business or-
‘Fast-Track System’ Mark Secession Vote
that Vizcarra will prevail but I Vizcarra’s move was dictato- Ms. Fujimori, jailed on cor- ganization, Confiep, criticized
just hope and pray there is no rial. She said the head of Con- ruption allegations, narrowly Mr. Vizcarra’s move as a viola- For Refugees Backed Thousands of supporters of
violence,” said Cynthia McClin- gress was reaching out to mul- lost the presidential vote to a tion of the constitution that the secession of Catalonia from
tock, a Peru expert at George tilateral organizations president who then resigned undermined democracy and in- Four European Union nations the rest of Spain marched in
Washington University. “The including the United Nations two years later amid corrup- creased political uncertainty in will seek endorsement next Barcelona on Tuesday to mark
opposition is clearly not going and the Organization of Amer- tion allegations and political one of Latin America’s stron- week from their EU partners for two years since a banned inde-
to take this lying down.” ican States for support. Ms. battles with opposition law- gest economies. a “fast-track system” for getting pendence referendum that shook
Mr. Vizcarra, in shutting Chacón was one of a handful makers, resulting in then-Vice Peru’s political class has migrants off boats in trouble in Spanish politics.
down Congress and setting of lawmakers who spent the President Vizcarra’s rise to been roiled by corruption in- the Mediterranean Sea and dis- More rallies were held in
new legislative elections for night in Congress, fearful they president. vestigations stemming from a tributing people aboard who towns across the northeastern
Jan. 26, accused lawmakers of would not be allowed back in Ms. Fujimori, who heads the scandal involving Brazilian want to seek asylum among Catalonia region of 7.5 million
obstructing the government’s if they left. Popular Force party, is the construction company Ode- countries willing to take them. people, where separatist senti-
anticorruption revamp and “No one knows what is go- daughter of ex-President Al- brecht, which paid millions of Germany, France, Italy and ment has been on the rise for
trying to stack the country’s ing to happen. A dictator sim- berto Fujimori, the jailed auto- dollars in bribes to win public- Malta want approval for a pro- nearly a decade.
top court. Mr. Vizcarra had ply does what he wants, what crat who ruled Peru in the works contracts. Three of cess that would screen migrants, Police in Barcelona estimated
proposed early elections to he can, not what the norms 1990s and at one point closed Peru’s past presidents are un- relocate asylum seekers and re- 18,000 people participated.
break the impasse, which Con- say,” she said. Congress. der investigation in connection turn people who don’t apply or Many carried pro-independence
gress rejected last week. The OAS’s secretary-gen- Peruvians have little sympa- with the scandal, while an- qualify, all within four weeks, ac- flags and shouted “Not forgot-
“Peruvian people, we’ve eral, Luis Almagro, said Peru’s thy for Congress, which is other former president, Alan cording to a statement obtained ten, not forgiven!” in reference
done everything we can,” said highest court, the constitu- deeply unpopular here due to García, died by suicide this by the civil-liberties watchdog to clashes between voters and
Mr. Vizcarra on Monday. tional tribunal, was responsi- accusations of rampant cor- year when police tried to ar- Statewatch. police during the referendum.
“However, it’s clear that the ble for determining if the clo- ruption. On Tuesday, one law- rest him. —Associated Press —Associated Press
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Explore the forces reshaping the global business of food.


Join the editors of The Wall Street Journal and leaders from across the farm
economy and food industry to discuss and debate how new technology, global
competition, consumer tastes and other trends are transforming the sector.

Ted McKinney Frank Yiannas

Under Secretary for Deputy Commissioner
Trade and Foreign Dirk Van de Put
for Food Policy and
Agricultural Affairs Chairman and CEO
U.S. Department of Mondelēz International
U.S. Food and Drug
Agriculture Administration

Ruth Kimmelshue
Paul J. Fribourg Chris Kempczinski Senior Vice President,
Chairman and CEO President, Business Operations and
Continental Grain McDonald’s USA Supply Chain & Chief
Company McDonald’s Corporation Sustainability Oficer

Ertharin Cousin
Distinguished Fellow,
The Chicago Council on Sonia Lo Jonathan Neman
Global Affairs CEO Co-Founder and CEO
Visiting Scholar, Center Sweetgreen
Crop One Holdings
on Food Security and the
Environment, Stanford

Peter Beetham, Ph.D.

Jessica Almy James A. Blome
Co-Founder, President
Director of Policy CEO
and CEO
The Good Food Institute Calyxt

Suzy Friedman
Senior Director, Jennifer Houston Sanjeev Krishnan
Agricultural President Chief Investment Oficer
Sustainability National Cattlemen’s and Managing Director
Environmental Beef Association S2G Ventures
Defense Fund

Amanda Little
James Mulhern
Author Don Niles, D.V.M.
President and CEO
The Fate of President
National Milk Producers
Food: What We’ll Eat Peninsula Pride Farms
in a Bigger, Hotter,
Smarter World

Meera Shekar, Ph.D.

Wanda Patsche Lead Health & Nutrition Kiersten Stead, Ph.D.
Co-Owner Specialist, Health, Managing Partner
CW Pork, Inc Nutrition and Population Data Collective (DCVC)
Global Practice
World Bank

John H. Stone
Dan Steere Senior Vice President, Ponsi Trivisvavet
CEO Intelligent Solutions CEO
Abundant Robotics Group Inari
Deere & Company
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Patrick Westhoff, Ph.D.

Professor and Director Mario Ubiali Andrea Bariselli, M.D.
Food and Agricultural Co-founder and Chief
Co-Founder and CEO
Policy Research Institute Scientist
University of Missouri Thimus


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U.K. Tory Gathering Reveals Split on No-Deal Brexit

BY MAX COLCHESTER to see the sun rise on Nov. 1 sage for the future: Even if Mr. broadly united behind Mr. makers were expelled for vot- “The worst outcome for us is
AND JASON DOUGLAS on a free country,” said Con- Johnson secures a deal with Johnson’s desire to get the ing for a law that forces the leaving without a deal,” said Da-
servative lawmaker Mark the EU, he faces a struggle to U.K. out of the EU. prime minister to ask for a vid Gauke, former justice secre-
MANCHESTER, England— Francois, to loud applause. get lawmakers to back it. But there the unity ends Brexit extension beyond Oct. tary and one of those ejected
Boris Johnson’s Brexit prob- John Redwood, a Conserva- The people in the room are and lawmakers fall into two 31 if a deal with the EU isn’t from the parliamentary party, at
lem was laid out this week in a tive lawmaker who has cam- ostensibly allies of Mr. John- camps: those who advertise sealed by Oct. 19. an event Tuesday.
dimly lighted comedy club in paigned against the EU since son, who has staked his politi- their Brexit credentials by say- The split has been visible at Mr. Gauke said he thinks an
this northern English city. 1975, said people in the U.K. cal fortunes on delivering ing they have voted three the party’s annual get-to- extension is inevitable as Par-
As the British prime minis- don’t want to be “slaves” to Brexit by the end of October. times for the deal negotiated gether, where the rival fac- liament won’t permit Mr. John-
ter prepares to present a re- the bloc’s rules. But many of them are likely to by Mr. Johnson’s predecessor, tions have jostled for attention son to pursue a no-deal split.
vised divorce proposal to the The event on the fringes of vote against any new deal the Theresa May; and those who at a host of events. At the Healing the party’s fissure
European Union in coming the Conservative Party confer- prime minister brings back show off their Brexit creden- comedy club, Conservative ac- and delivering Brexit will be
days, more than a hundred ence is a reminder of the his- from Brussels. tials by saying that they voted tivists booed when the names complicated and perhaps im-
people gathered in a room dec- tory of anti-EU sentiment in Meanwhile, opponents of against it repeatedly—because of some of the 21 rebels were possible, analysts say. Mr.
orated with a photo of Marga- the party. It was organized by Mr. Johnson in Parliament, it kept the U.K. too closely tied mentioned. Johnson must present a pro-
ret Thatcher to hear and cheer the Bruges Group, a think tank where his government is in a to the EU. The latter group Some rebels thrown out by posal different enough from
Conservative lawmakers who formed in the months after a minority, have closed off the comprises around 20 Conser- Mr. Johnson still turned up to Mrs. May’s to persuade some
are adamant the U.K. should 1988 speech by Thatcher in the alternative: a British exit with- vative lawmakers who call the conference to argue that of his party’s Spartans to vote
leave the bloc at the end of Belgian city in which she out a deal. themselves “the Spartans.” an abrupt split with the EU for it, while not veering so far
this month without a deal. warned of a European “super- At the annual gathering, This divide has ruptured would be economically damag- away from her deal that the
“I want nothing more than state.” It also carries a mes- members of Parliament are the party. Last month, 21 law- ing and politically perilous. EU rejects it out of hand.


Car Buyers more than he had expected to

pay when he walked in to buy
his first new car in 18 years.

Lean on “I wish my research would

have been deeper to be more
ready,” he said.

Financing Finance managers at dealer-

ships typically use an elec-
tronic portal to hash out the
terms of the loans. On the
Continued from Page One other end are various financial
cle by spreading the debt over institutions that buy up the
longer periods. Wall Street in- loan pretty much as soon as
vestors snap up these loans, the dealer closes the deal.
which are bundled into bonds. Banks and credit unions are
Dealers now make more money big lenders, as are the finance
on the loans their customers arms of major car makers.
take than on the cars they sell. Some of these lenders shunned
For many Americans, the riskier subprime borrowers af-


availability of loans with longer ter the financial crisis, fueling
terms has created an illusion of the growth of independent
affordability. It has helped fuel nonbank auto lenders.
car purchases that would have Westlake Services LLC is
been out of reach with three-, among the biggest. Its owner,
five- or even six-year loans. billionaire Don Hankey, started
“People can get into very ex- lending four decades ago when,
pensive cars,” said Bronson Ar- as a dealer, he realized sub-
gyle, a professor at Brigham prime buyers needed some-
Young University in Provo, where to get their financing.
Utah, whose research focuses Westlake is still focused on
on consumer credit. “House- these borrowers, but it has
holds are taking on, on aver- pursued more creditworthy
age, more risk.” The dealership in St. Joseph, Mo., where Deven Jones, below, bought a new car, along with a loan that cost more than $500 a month. customers as it has grown in
Deven Jones walked into the recent years.
Rolling Hills Honda dealership 2015, auto sales had reached
in St. Joseph, Mo., in early records.
2017 after a salesman emailed Low rates, in effect, served ‘I got ‘em’
him and said he might be able as a bailout for the entire auto Westlake needs to make
to buy a new car for less than industry. Last year, investors sure the monthly payments on
$400 a month. bought a record $107 billion of its auto loans keep flowing.
Mr. Jones, now 22 years old, bonds backed by cars, accord- Late borrowers can expect calls
walked out with a gray Accord ing to the Securities Industry from the company immediately.
sedan with heated leather and Financial Markets Associa- Roughly 40% of its employees
seats. He also took home a 72- tion, a trade group. That is the focus exclusively on collecting.
month car loan that cost him first issuance record since In mid-April, a representa-
and his then-girlfriend more 2005 and nearly triple the tive who handles the most-dif-
than $500 a month. When they amount two decades earlier. ficult cases called a past-due
split last year and the monthly The outstanding pile of auto borrower to iron out payment
payment fell solely to him, it bonds swelled to a record $264 on a 2018 Toyota RAV4. The
suddenly took up more than a billion. borrower had struggled to
quarter of his take-home pay. So far this year, dealerships keep up with a payment of
He paid $27,000 for the car, made an average of $982 per more than $800. The car al-
less than the sticker price, but new vehicle on finance and in- ready had been repossessed
took out a $36,000 loan with surance versus $381 on the ac- from the borrower once.
an interest rate of 1.9% to tual sale, according to J.D. The Westlake representative
cover the purchase price and Power, a data and analytics switched between English and
unpaid debt on two vehicles he company. A decade earlier, fi- Spanish. He offered an exten-
bought as a teenager. It was nancing brought in $516 per sion on the March payment,
particularly burdensome when car and the sale made dealers meaning it wouldn’t be due un-
combined with his other debt, $837. til the end of the loan in 2024.
including credit cards, he said.
Stretched-out Debt To see these shifts up close, But he collected nearly $600
Auto loans are increasingly getting stretched out to keep payments manageable. visit a dealership’s finance of- on a partial payment for April
Auto loan terms* fice. Dealers call it “the box,” a over the phone. Borrowers are
Loan sizes soar reference to the holding cell to less likely to resume payments
85 or more months 73 - 84 61 - 72 49 - 60 37 - 48 1 - 36
Just 18% of U.S. households 100% which Paul Newman’s character if they stop altogether.
had enough liquid assets to was sent in the 1967 movie After hanging up, the repre-
cover the cost of a new car, ac- 80 “Cool Hand Luke.” Since most sentative rang a bell at his
cording to a Wall Street Jour- buyers borrow to pay for their desk. “35K,” he called out, re-
nal analysis of 2016 data from cars, it falls on the finance ferring to the balance of the
the Fed’s triennial Survey of manager to figure out a man- loan that was no longer consid-
Consumer Finances, a propor- ageable payment schedule. ered seriously delinquent. “It
tion that hasn’t changed much 40 The dealership commonly took a while but I got ’em.”
in recent years. holds on to a portion of the in- Across the industry, delin-
Even a conservative car loan 20 terest rate, typically between 1 quencies have trended higher
often won’t do it. The median- and 2 percentage points, or in the past few years, but they
income U.S. household with a 0
gets a one-time payment from haven’t surged like mortgage
four-year loan, 20% down and the lender. The dealer also delinquencies did during the fi-
a payment under 10% of gross 2009 ’11 ’13 ’15 ’17 ’19 pitches high-margin add-on nancial crisis. Investors have
income—a standard budget— services, such as extended war- been largely content to buy
could afford a car worth Dealers make more money A growing share of buyers Wall Street investors have ranties and insurance for dings lenders’ auto bonds as they
$18,390, excluding taxes, ac- on car loans than the cars won't pay off their debt snapped up car loans packaged and dents, which are rolled search for returns in a low-rate
cording to an analysis by per- they sell. before trading their car in into bonds, reshaping the into the loan. world. Losses are significantly
sonal-finance website Bank- for a new one. automobile market. higher when loan terms
rate.com. lengthen, according to S&P
But the size of the average Average dealer profit Share of trade-In with Auto loans-backed Adding add-ons Global Ratings.
auto loan has grown by about a from a new vehicle sale† negative equity‡ securities** When potential buyers enter Mr. Jones, in Missouri, got
third over the past decade to $1500 35% $300 billion Petrov Degand’s office at Earl his loan from Honda’s financ-
$32,119 for a new car, accord- Stewart Toyota in North Palm ing arm, which pools a large
ing to Experian. To keep pay- 200 Beach, Fla., he walks them portion of its loans into bonds
ments manageable, the car in- 30 through each add-on, present- that it sells to investors. A
1000 Vehicle gross
dustry has taken to adding 100 ing the full menu of options, he $1.25 billion sale from late
more months to the end of the Outstanding
said. He has seen finance man- 2017 contained more than
loan. 25 agers quote a price in which 7,000 loans tied to 2017 Ac-
The average loan stretches the add-ons are already bun- cords like the one Mr. Jones
500 2009 ’11 ’13 ’15 ’17 ’19
for roughly 69 months, a re- dled into the loan amount to owns, according to loan-level
cord. Some last much longer. In Financing and insurance $100 billion increase the bottom line, a tac- data.
the first half of the year, 1.5% tic known as “packing the pay- The investors who hold Mr.
of auto loans for new vehicles 0 15 0 Issuance ment.” Jones’s loan are still getting
had terms of 85 months or lon- Jose Mercado agreed to buy paid because he has remained
ger, according to Experian. Five 2009 ’11 ’13 ’15 ’17 ’19 2009 ’11 ’13 ’15 ’17 ’19 2009 ’11 ’13 ’15 ’17 ’19 a series of add-ons, including current. Mr. Jones took on
years ago, these eight- and *For new cars only, as of the end of June 2019 †Through August 2019 ‡2019 figure as of end of June **2019 figure as of end of June an extended warranty, for his more overtime shifts at the
nine-year loans were practi- Source: Experian (loan terms); J.D. Power (dealer profit); Edmunds (trade-In); SIFMA (securities) new RAV4 midway into his plastic factory where he works
cally nonexistent. fifth hour at a Toyota dealer- as a machine operator. A raise
As a result, a growing share ter before the financial crisis. tem flirted with disaster more est rates had fallen to practi- ship this spring. Mr. Mercado, and a bonus helped get him to
of car buyers won’t pay off the Americans have been bor- than 10 years ago, two of the cally zero. Suddenly, it was 41, who lives in Blackwood, stable ground. Still, he will be
debt before they trade in their rowing to buy their cars for de- big three U.S. auto makers re- much cheaper to finance a car. N.J., and works in a chocolate making payments for years to
cars for new ones, either be- cades, but auto debt has ceived government bailouts Loans made to buyers were factory, had spent the previous come.
cause the car is in need of re- swelled since the financial cri- and restructured their debt in snapped up by Wall Street in- six months reading reviews Mr. Jones said he doesn’t
pairs or because they want a sis. U.S. consumers held a re- bankruptcy. The industry vestors looking for returns as and figuring out how much he plan to take out another auto
newer model. A third of new- cord $1.3 trillion of debt tied to emerged into a battered econ- income from supersafe Trea- should pay for the car. loan soon. “Even just signing
car buyers who trade in their their cars at the end of June, omy when consumers hardly surys drifted toward zero. He found himself unpre- the paper, not even driving the
cars roll debt from old vehicles according to the Federal Re- had the cash to go car shop- The combination of rock- pared for the hard sell from car off the lot, suddenly I’m
into their new loans, according serve, up from about $740 bil- ping. bottom rates and yield-hungry the finance manager. The add- underwater,” he said.
to car-shopping site Edmunds. lion a decade earlier. Yet for the auto industry, investors helped bring the U.S. ons brought his payment to —Shane Shifflett contributed
That is up from about a quar- As the global financial sys- there was a silver lining: Inter- auto industry back to life. By $448 a month, nearly $100 to this article.
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Ex-New York Congressman Pleads Guilty
Christopher Collins biotechnology company Innate said he regretted his actions Cuomo call an election imme- Collins with eight criminal
Immunotherapeutics Ltd. told and apologized to his wife, son diately. “This is a dark red Re- counts, two of which he
admits committing him of a failed drug trial. and constituents. publican seat that is now pleaded guilty to on Tuesday.
crimes related to “I was devastated by the His resignation throws into without a voice,” he said. “By virtue of his office,
news,” said Mr. Collins, 69 question his upstate congressio- Under state law, leaders of Christopher Collins helped write


insider trading years old, who had been on the nal seat, which spans eight party committees in the district the laws of this country, but he
company’s board. He said he counties between the suburbs of choose candidates in special acted as if the law did not apply
BY CORINNE RAMEY called his son and tipped him Buffalo and Rochester. In 2016, elections. Some Republicans to him,” Manhattan U.S. Attor-
AND JIMMY VIELKIND off while in an emotional state. voters supported President have said they intend to run for ney Geoffrey Berman said.
“I understood that I had a Trump over Hillary Clinton by the seat, including state Sens. Judge Broderick set Mr.
Christopher Collins, the duty not to disclose certain con- the widest margin of any con- Robert Ortt of Niagara County Collins’s sentencing for Jan. 17.
newly resigned upstate New fidential information,” Mr. Col- gressional district in the state. and Chris Jacobs of Erie County, He faces up to five years in
York congressman, pleaded lins told U.S. District Judge Ver- Gov. Andrew Cuomo said as well as Beth Parlato, an at- prison on each count.
guilty Tuesday to conspiracy non Broderick. He said he lied Tuesday that he would call a torney from Genesee County. Cameron Collins and Ste-
to commit securities fraud and to federal agents who asked special election to replace the Christopher Collins has resigned. Nate McMurray, a Democrat phen Zarsky, Mr. Collins’s co-
lying to the FBI, ending his about the call. former congressman “sooner who challenged Mr. Collins defendants in the case, are ex-
federal insider-trading case. Due to the illegal tip, his rather than later,” but state law another election. New Yorkers last year, has continued to pected to appear in court
Seated at the defense table son, Cameron Collins, and oth- prevents him from scheduling a are set to go to the polls on April campaign for the seat. “A long Thursday and plead guilty. A
of a federal courtroom in Man- ers avoided more than vote on the Nov. 5 general elec- 28 for a presidential primary. Western New York nightmare lawyer for Mr. Zarsky declined
hattan, Mr. Collins, a Republi- $768,000 in losses, prosecu- tion. The Democratic governor Republican State Commit- is over today,” he said. to comment. A lawyer for Cam-
can, said that on June 22, tors said. said he would like to schedule tee Chairman Nick Langworthy In the most recent indict- eron Collins didn’t respond to
2017, the chief executive of The former congressman the contest on the same day as said he would like to see Mr. ment, prosecutors charged Mr. a request for comment.

METRO MONEY | By Anne Kadet

Seven-Day Shopkeepers Can’t Slow Down Blocked
you’re due for
For Adult
a day off? Sal
Di Palo, one of
three siblings
Palo’s Fine Foods in Man- AND CORINNE RAMEY
hattan, has been working at
the family’s Grand Street A federal judge temporarily
storefront every day, seven blocked New York City restric-
days a week, since 1974. tions on strip clubs and adult-
“I get four days off a entertainment establishments,
year,” Mr. Di Palo says. “New a win for such businesses that
Year’s, Easter, Thanksgiving have argued their operations
and Christmas. You know were protected by constitu-
why I’m off those days? tional rights to free speech.
We’re closed.” The ruling came in a long-
Many New York City shop- running legal dispute that has
keepers work seven days a pitted adult bookstores and
week. The bodega man, the gentlemen’s clubs against city
wash-and-fold lady, the cafe zoning regulations that limit

owner—they pretty much where and how such businesses

live in their stores. can open and expand. The city
The seven-day shopkeeper has argued it has a right to reg-
is perhaps most often found ulate such establishments,
among the city’s newest which it says can lead to crime
businesses. and quality-of-life problems.
When Maria Ho-Burge Putting a zoning amend-
opened her neighborhood sa- ment on hold during a fuller
lon, PrimpNYC, in Manhat- examination of the case won’t
tan’s Seaport District in hurt the city, U.S. District
April, she hired a front-desk Judge William Pauley III said
receptionist along with a Monday. Free-speech protec-
team of stylists. The atten- tions apply to adult clubs and
dant was soon gone. Gerard Greco opened Brooklyn Bike Peddler in 2011. He works every day, but takes two weeks off in the winter when business slows. bookstores, he said. “Nude
“It was too much over- dancing and erotic materials
head,” she says. 2011 with a vow: “If my busi- next day.” produce market for ingredi- ents, who launched the Little nevertheless fall within the
She considered closing the ness is going to fail, it’s not He tried closing one day a ents before opening her shop Italy store in 1925. ambit of the First Amend-
salon one day a week, but going to be because I didn’t week, but that didn’t suit him. and working there all day. “This is our home. This is ment’s free speech guaran-
not after crunching the num- work hard enough.” “On my days off, all I’m doing “But I realize I can’t be where we live,” he says. “I go tees,” Judge Pauley wrote.
bers. While he envisioned sell- is sitting two floors up in my standing in there every day home to Brooklyn to sleep.” The plaintiffs in the case,
“I can’t afford to miss that ing $10,000 bikes, sponsor- underwear, so I might as well if I want to grow the busi- Mr. Di Palo’s niece, who first filed in 2002, include the
revenue,” she says. “The rent ing race teams and sailing be down here,” he says. ness,” Ms. Kelly says. helps run the family wine operators of the strip clubs
is so expensive.” the world in a yacht, the Every winter, when busi- She kept the morning rou- store and the new cafe Platinum Dolls and Satin Dolls.
Ms. Ho-Burge is in the sa- neighborhood demanded ness is slow, Mr. Greco tine, but hired full-time help around the corner, doesn’t “This ruling, as the Court
lon nearly all day, every day, something simpler—a used closes for two weeks to to take the afternoon shift. want to continue the tradi- reiterated, says nothing about
to greet customers, book ap- bike and repair shop. travel with his girlfriend. Now, she spends those hours tion. whether the adult-only busi-
pointments and answer Mr. Greco adjusted and “Instantly I feel regret,” at home on her laptop, mar- “I try to take a day off, nesses will succeed on the
phones while tending to now earns enough to have he says. “I’m going to the keting and networking, before just because you get burnt merits of their claims,” a New
marketing, operations and part-time help join him on airport. Guilty, guilty, guilty. returning to close the store. out if you don’t,” Caitlin Di York City Law Department
the retail shop. weekends. Regret. Dread!” It takes a “Some days it’s exhilarat- Palo says. spokesman said. He noted that
“I started getting mi- few days to start enjoying ing, some days it’s challeng- “I don’t know how they do the state’s highest court ruled

graines,” she says. “I was e’s proud of his busi- the time off. ing. I’m 56 years old,” Ms. it,” she adds of the older for the city in a similar chal-
running myself too hard.” ness and has come to Where does he see things Kelly says. “Let’s be realis- generation. “I tell them take lenge and upheld the zoning
Her solution: Excedrin, appreciate the seven- in five years? “I hope they’re tic.” a day off. There’s no need for regulations at stake. The rules
more water and an early day routine. He lives in the more or less the same, re- them to be always here.” haven't been enforced since

bedtime. upstairs apartment. After a ally,” he says. r. Di Palo, mean- “We feel we support each 2002 due to various legal chal-
“What sustains me is I day in the shop, he typically For some, the seven-day while, says his 80- other,” her uncle responds. lenges, a city official said.
love this business,” she says. takes a martial-arts class be- routine can feel restrictive. hour workweek “We’re like a triangle. We Lawyers for the plaintiffs
“I love when women come in fore heading back to HQ for Dawn Kelly plans to open doesn’t feel taxing. help each other through the didn’t respond to requests for
and feel beautiful when they dinner and a shower. locations of the Nourish “I haven’t worked a day in day.” comment.
leave.” “It’s kind of nice having a Spot Inc., her healthy foods my life,” he says. “I’m behind Mr. Di Palo vows to keep In the early 1990s, then-
In some cases, the seven- regular schedule,” Mr. Greco and fresh juice bar, in air- the counter serving custom- working seven days a week. Mayor Rudy Giuliani cracked
day lifestyle is the product says. “I know what I’m doing ports across the country. ers.” “As long as I physically can. down on adult businesses.
of necessity and preference. tomorrow, and I know what For 18 months after her He and his siblings simply Until I take the dirt nap!” In 1994, the City Council
Gerard Greco opened I’m doing the next day, and I 2017 launch, she woke at 4 are following the routine es- imposed a year-long ban on
Brooklyn Bike Peddler in know what I’m doing the a.m. to hit the wholesale tablished by their grandpar- anne.kadet@wsj.com new adult stores and prohib-
ited existing establishments
from expanding.

Newark to Tap Port Authority Lease Funds for Lead Crisis The following year, the coun-
cil established more stringent
zoning regulations. Strip clubs,
BY JOSEPH DE AVILA minals will provide the city which connect city-owned wa- of the service lines. The city has distributed about adult video and bookstores had
with $5 million annually, ac- ter mains to the internal Last week, the city released 38,000 water filters. to be at least 500 feet from a
Newark has reached a $155 cording to city officials. New- plumbing in homes. City offi- preliminary results showing The new test results came church, school or residential
million lease deal with the ark will get $5 million upfront cials have said lead leaches about 97% of city-distributed after a smaller round of test- district, and at least 500 feet
Port Authority of New York as well. into the water from these lead water filters that were tested ing in August concluded that from another adult shop, ac-
and New Jersey, giving the “This money is another ex- pipes and not from Newark’s worked properly and reduced two out of three filters tested cording to the ordinance.
city a cash boost it plans to ample of this city using its water source. lead levels in the tap water. had failed to reduce lead suffi- Judge Pauley wrote that the
use to address its crisis with own resources to solve our Newark already has taken When faucets were run for at ciently. regulations were a “throwback
lead-contaminated drinking own problems,” Newark Mayor out a $120 million loan from least five minutes, 99% of the The U.S. Environmental to a bygone era” and noted
water. Ras Baraka, a Democrat, said Essex County to help pay for filters successfully reduced the Protection Agency advised city that the city had changed dra-
The 30-year amended Tuesday. the service-line replacements. lead levels. and state officials to urge resi- matically since they were writ-
agreement covering rent at The city is replacing more It is estimated that it will take The test included more than dents to use bottled water fol- ten. He set a conference in the
Newark’s marine and air ter- than 18,000 lead service lines, up to 30 months to replace all 1,700 samples from 300 filters. lowing those first test results. case for later this month.
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Lawmakers to Probe
Transit-System Woes
Lawmakers in New Jersey
are launching an investigation
into the state’s beleaguered
transit system.
Democratic Senate President
Steve Sweeney said Tuesday he
is setting up a committee to
probe NJ Transit concerning
“continued failures and to de-

velop an action plan to turn

around the embattled agency.”
A NJ Transit spokeswoman
said the agency looks forward to
working with the Legislature,
and it shares “the common goal”
of safe, reliable service.
Passengers have endured fre-
quent train cancellations dating
back to last year.
—Associated Press


Manhattan’s SoHo site is the first U.S. outpost for Flipper’s, which has 12 locations in Japan that sell the popular, extra-fluffy but not-too-sweet pancakes. Late Prelate Faulted
For Abuse Response

Japanese Souffle-Pancakes Rise Up in NYC Past Roman Catholic leaders

in Bridgeport, including eventual
New York Cardinal Edward Egan,
BY TYLER BLINT-WELSH some delicious pancakes. quite frankly with the rush.” often were hostile toward peo-
New York City is the first The restaurant’s inaugural ple who alleged clergy sexual
New York City has a new, U.S. outpost for Flipper’s, a days have brought a number abuse and merely transferred
made-for-Instagram dish chain of 12 locations in up- of popular Instagram influ- many accused priests, thus al-
foodies are lining up to try: scale neighborhoods in Japan encers, who have helped the lowing them to continue their
Japanese souffle-pancakes. owned by Baycrew’s Co., a venue add thousands of fol- misconduct, an independent re-
Since Flipper’s opened Tokyo-based fashion and res- lowers in just days. Even port released Tuesday found.
Friday in SoHo, a near-con- taurant company. when the momentum wears Current Bridgeport Bishop
stant stream of customers “We started our expansion off, he said, “the quality is Frank Caggiano ordered an inves-
have been parked on the cor- in Asia and have now opened always going to be what re- tigation last year into priests’
ner of West Broadway and for business in America. ally keeps the brand going, sexual abuse of minors dating to
Grand Street waiting to try From here on, we will set no matter what happens. the diocese’s founding in 1953.
the extra-fluffy but not-too- our sights on the entire A self-described “big pan- Former Connecticut state Judge
sweet concoction that is world and aim to make a cake guy,” Jake Ungrey, a Robert Holzberg laid out his find-
making its stateside debut mark on global food culture barber who lives in Brooklyn, ings during a news conference.
after building a cult follow- through pancakes,” said Ka- was first exposed to Flip- The yearlong review found
ing in Japan. oru Oyama, a Baycrew’s per’s while on a trip to that 281 people—mostly males
For $16 diners get a trio spokeswoman. Japan last year. He said its between 5 and 18—were abused
of 2-inch-wide pancakes, The Japanese locations of pancakes are some of the by 71 priests since the diocese’s
topped with powdered sugar Flipper’s, such as one in Dai- best he has ever tasted. The inception. Mr. Holzberg said
and a signature cream. For kanyama, a Tokyo fashion longest he would wait in line there probably are many more
an additional $3, you can get district, have similar lines for most things is about 30 victims who couldn’t be identi-
the strawberry-flavored ver- slips off. out of ingredients to make “almost every day,” said minutes, he said. fied because church records
sion. With Monday off from her the Strawberry Flipper’s Pan- Jimmy Welleby, Flipper’s op- He will make an exception were destroyed. The diocese has
The pancakes’ fluffiness job as a receptionist, Patricia cake. She learned about the erations manager in New for Flipper’s, though. spent about $56 million settling
deflates within two minutes, Nieves paid her second visit restaurant from an Insta- York City. “I’d wait 45 minutes, and victims’ lawsuits.
leaving a precious window to Flipper’s in as many days. gram page called @feedyour- The hype around the New fly 14 hours to Japan, for Cardinal Egan, who served as
for the perfect bite. And if She came on Sunday, only to girlfriend. In line, Ms. Nieves York opening exceeded his these pancakes,” he said. Bridgeport bishop from 1988 to
the plate moves, the pan- get turned away while in line said she was excited for a expectations, he said. “We —Peter Landers in Tokyo 2000, died in 2015.
cakes slide and the cream because the restaurant ran cool Instagram post and got a little bit overwhelmed contributed to this article. —Associated Press


Edward C. Byers Jr. Karl Horst Greg Welteroth

U.S. Navy SEAL Major General, U.S. Army (Ret.) Circle of Honor
Master Chief Petty Officer President & CEO of the Recipient
Special Warfare Operator Congressional Medal of Honor Founder of
Medal of Honor Recipient Foundation Welteroth Enterprises

October 9th 2019 at

Hilton Philadelphia at Penn’s Landing
10:30 am to 2:00 pm: Speakers, Complimentary Lunch,
Networking, and Partnership Opportunities.
Check-in begins at 9:30 am.
Dress code calls for Business Casual attire.

Seating is limited, so make your reservation today.

To RSVP, visit us at info.ameristrong.com/rsvp
or call (800) 353-7956

Moving America Forward

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THE WALL STREET JOURNAL. Wednesday, October 2, 2019 | A11


Teen Hackers Fight for ‘Hack Clubs’

High-school students who seek to form coding groups find they have to win over their parents, school administrators

he first rule of Hack ence at all, due in part, to a lack of
Club is: You talk funding.
about Hack Club. The “Our generation is going to face
second rule of Hack the biggest challenges humanity
Club is: You talk has ever had to solve, including
about Hack Club. climate change. All of these giant
Teenagers across the country problems are rooted in technology,
are forming hacking clubs, attend- and we need more thoughtful, un-
ing hackathons and trying to conventional problem solvers, and
spread the word that hacking that’s what we’re trying to create,”
doesn’t always mean breaking Mr. Latta said. “By using the word

into government servers or steal- ‘hack,’ it gives students a sense of
ing bank data. Convincing teach- identity.”
ers and parents of that isn’t al- Michigan State University last
ways easy. month published a study, based on
“My dad was like, ‘You’re always interviews with nearly 50,000
up to something. You’re always on teens, to determine how illegal
your computer. I don’t know what hacking begins and found that ini-
you’re doing,’ ” said 15-year-old tial hacking attempts usually
Snigdha Roy of Mount Sinai, N.Y. In aren’t serious but that kids can de-
July, she became executive director cide to take their hacking abilities
of TeenHacks LI, a Long Island club further once they see what they
that organizes hackathons, typi- are able to accomplish.
cally one-day events in which stu- Some programs redirect that
dents in small teams compete to rising talent for non-nefarious pur-
create apps or poses. An 11-year-old boy who at-
websites. tended last year’s Def Con hacking
Her parents, conference was able to breach a
she said, finally replica of a Florida election-results
got looped in website in just 10 minutes.
about her activ- Joshua Kats, a 16-year-old in
ities when she ing traditional education, Students at Susan E. Wagner High School in New York’s sounds orders of magni- New York’s Staten Island borough
had to get their by creating ways to learn Staten Island meet weekly to code. Below, Claire Wang tude cooler,” said Claire considers himself an ethical
permission to about coding from each programmed a robot at her Hawthorne, Calif., school. Wang, 14, whose Haw- hacker, and says he once pointed
attend a hacka- other instead of a thorne, Calif., school, out a bug in Apple’s iPhone voice-
thon at the teacher in a classroom. which focuses on STEM, memo software. He co-founded a
University of Of course, some are actu- was supportive of her Hack Club chapter at his school
Pennsylvania. It took her about ally doing real hacking— forming a Hack Club last month.
two months of showing them her but even that can be for chapter. “Our high school is a perform-
coding projects and putting them good, not evil. Zach Latta, a 21-year- ing arts school, mostly focused on
in touch with members of her “A hacker, to me, is old who at 16 dropped out music and visual arts, so the fact
hackathon team before they anyone who’s able to see of high school to work as that 60 students are interested in
agreed to let her go to the Sep- a problem, understand an engineer at a San a computer-science club is great,”
tember event. that something doesn’t Francisco tech startup, is he said.
“I thought it had to do with tak- work and come up with a behind the bluntly named Jack Cable, a 19-year-old Stan-
ing people’s credit cards,” said her solution,” said Chaleb Hack Club organization. It ford University student and self-
mom, Shailly Roy. Pommells, 14, of Miramar, provides high-school stu- described “white hat” hacker, says
Parents have good reason to be Fla., who is working on dents with a curriculum, the world is coming around. Many
suspicious, however. A U.K. teen- developing a website to connects students government groups and corpora-
ager last month was arrested for show voters which politi- through a Slack channel tions invite hackers to do their
allegedly hacking into musicians’ cal candidates have bene- where they can contact best to penetrate their systems,
websites and stealing unreleased fited from super PACs. He each other with technical in an effort to find and patch
music. Another U.K. teen who was started a maker space at questions, and teaches weaknesses. Sometimes money is
convicted of hacking the British his church a few months them how to raise money offered in the form of “bug
telecommunications firm TalkTalk ago in an effort to bring and nab corporate spon- bounties.”
Group in 2015 now faces computer- computer-science educa- sorships for hackathons. “Ten years ago, someone get-
fraud charges in the U.S. for alleg- tion to minority students Mr. Latta estimates that ting into hacking would have had
edly accessing a cryptocurrency and is trying to start a each week, about 3,000 no resources to try real-world sit-
exchange. A group of teens once chapter of the nonprofit students in the U.S.—plus uations that were legal because
infamously hacked into Microsoft Hack Club at his high an additional 2,000 stu- there was nowhere to try out your
Corp.’s Xbox gaming system. school. But he, too, had dents in South Asia—at- skills,” said Mr. Cable, who started
So what, exactly, are these teens to explain his pursuits to tend Hack Clubs his group hacking when he was 15. “Now,
doing? his initially suspicious has helped organize. with bug-bounty programs, ethical
At Penn, Snigdha and her team mom, when he was invited to a allegedly hacked into his school’s Other organizations are doing hackers have a legitimate place to
created an app that lets you scan a hacking summit this past summer computer system to change grades. similar things to encourage kids to practice their skills.”
container of food for a list of in- in San Francisco. “I have friends whose teachers code at a time when computer-sci- That’s good because, much like
gredients and suggested recipes. “When Chaleb initially came to don’t want them to call it ‘hack ence education in K-12 schools is Matthew Broderick’s character, Da-
No credit-card stealing. me about this, I said, ‘What do you club.’ If you call it ‘code club’ or lacking. A Microsoft survey last vid, in the classic 1983 movie
Teens who are forming hacking mean, hack?’ ” said Sharmaine ‘girls who code,’ or ‘maker club,’ year found that two out of every “WarGames,” Jack has even hacked
clubs or attending hackathons say Pommells, who was familiar with it’s fine. It’s pretty disappointing, 10 teachers said their students the Pentagon—at the Defense De-
what they really are doing is hack- the news of a local teen who had because ‘hack club’ or ‘hackathon’ don’t learn about computer sci- partment’s invitation, of course.

Competitors ism troubles some of its fans. “If

you have someone who gets with
the idea of appearing on Insta-
cautions against striving for an ex-
cess of less. “Minimalism is not a
competition,” he writes. “Don’t
Loechner’s “Chasing Slow.” She
even tried a clothing purge via the
blogger Courtney Carver, attempt-
and more into the mindset of it,”
says Francine Jay, who preaches
what she calls mindful minimalism

Vie to Teach gram like they have a very simple

life, already you’ve introduced a
goal into something that’s not
boast about how little you have.”
Caroline Donahue tried Mr. Sa-
saki’s approach but stopped. “It
ing to live with just 33 items in her
closet for three months. Ms.
Carver’s book on that process,
in her 2019 book “Lightly.” In-
cluded in her prescription for sim-
plicity: Create breathing space at

Simplicity goal-oriented,” says Jenny Odell,

author of “How to Do Nothing,”
the 2019 book on the need for pur-
didn’t feel like a relief to think of
just having a hand towel to dry my-
self with in the bathroom,” she
“Project 333,” comes out this
Simplicity gurus are arriving at
home by using no more than three
decorative items per room, eat less
by baking cakes in coffee mugs
suits that defy productivity or says, referring to the writer’s a moment of over- and opt out of gift exchanges.
Continued from Page One achievement. description of his per- load for Attempting to find the root
smells, the new book suggests, And rival philoso- causes of the mess, professional
study the shapes of clouds, eat an phies have started organizer Tracy McCubbin has
apple blindfolded, think about not to emerge amid the identified seven “emotional clutter
thinking. calls for harmony. blocks” in her boldly titled new
In the five years since the U.S. “Discard it even if book, “Making Space, Clutter Free:
release of Japanese author Marie it sparks joy,” writes The Last Book on Decluttering
Kondo’s mega-hit “The Life-Chang- Fumio Sasaki in his You’ll Ever Need.” A messy master
ing Magic of Tidying Up,” sales of book “Goodbye, bedroom holds clues to a deeper
self-help and home organizing Things,” con- problem. “When it’s a couple,
books have soared. Annual print there are intimacy issues,” she
sales of books related to tasks like writes. “If the client lives alone, he
cleaning, caretaking and organiz- or she is keeping secrets.”
ing rose 78% from 2014 to 2018 Self-help books that lean into
and are up an additional 94% in Zen-like ideas are particularly pop-
the past year, driven primarily by ular at the moment, timing that
Ms. Kondo, according to the NPD makes sense to Ken Mogi, author of
Group. the 2018 title “Awakening Your Iki-
The latest entries train their gai.” Zen Buddhism developed in
sights on the people making the Japan during a period of upheaval,
mess. The mantras strike similar says Mr. Mogi, who draws connec-
notes: Embrace simplicity, stop tions to today’s anxieties.
trying so hard and slow down. Shunmyo Masuno, head priest
“There’s a profound desire and tradict- of a 450-year-old Zen Buddhist
even need among readers for this ing Ms. temple in Japan, prescribes 100
kind of content,” says John Si- Kondo’s ad- tips for finding calm and joy in his
ciliano, executive editor of Penguin vice to read- Trying to declutter your mind and many Ameri- 2019 book “The Art of Simple Liv-
Books and Penguin Classics who is ers to keep closet? Make space for how-to books. cans. Baby boomers are struggling ing.”
overseeing several less-is-more only items that under the weight of possessions The slim volume, published in
lifestyle titles including “The Book make them happy. Mr. Sasaki’s sonal hygiene routine. “Once or handed down from elderly parents. more than 30 languages, encour-
of Ichigo Ichie” by Héctor García minimalism is so extreme, he says twice when I bought a book I Consumers are clicking “add to ages readers to find peace by not
and Francesc Miralles, due out in he easily moved out of his home in thought it was silly and ironic to cart” at lightning speed. Families wasting food (eat discarded radish
December. 30 minutes. buy a thing that was going to tell are worrying about the waste un- greens, for instance), watching a
More back-to-basics campaigns “I’m able to move anywhere I me to have fewer things.” derpinning their abundant life- flower grow and walking around
are coming. “The Power of like with the same casualness as The 42-year-old writer credits styles. the house barefoot.
Nunchi,” a Korean theory on suc- stepping out for coffee,” he writes Ms. Kondo with speeding her deci- Denaye Barahona started buying Leslie Yazel, editor in chief of
cess that encourages Americans to in the book, released in the U.S. sion to leave Los Angeles and move her 5-year-old son five pairs of the Real Simple magazine, urges cau-
trust their instincts when reading two years ago. to Berlin, where she and her hus- same pants in the same color so tion if the quest for that simplicity
people and navigating relation- A spokeswoman for Ms. Kondo band felt they could live with less neither of them ever has to think comes with a hefty price tag.
ships, hits in November. “Kaizen: declined to comment. stuff and enjoy a higher quality of about his bottoms. Suddenly, her “Too many products that prom-
The Japanese Secret to Lasting The author bio for “Goodbye, life. The change came after she cy- home life feels easier, says Ms. Ba- ise to simplify your life actually do
Change,” based on the practice of Things” says Mr. Sasaki furnished cled through at least five lifestyle rahona, author of “Simple Happy the opposite.,” she says. “Often
taking tiny steps toward a goal, ar- his home with only a small wooden methods: Not just Ms. Kondo and Parenting” out this year. when I see the latest kitchen gad-
rives the following month. box, a desk and a rolled-up futon Mr. Sasaki, but Janet Luhrs’s “The “We’re moving a little bit be- get, I think, ‘Or you can just use a
The commerce around minimal- pad. But in his book, Mr. Sasaki Simple Living Guide” and Erin yond the mechanics of decluttering paring knife.’ ”
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A12 | Wednesday, October 2, 2019 * *** THE WALL STREET JOURNAL.



When Datsun
Met Corvette
An amped up Datsun Scarab flies

The 1972 Datsun 240Z Scarab that attorney Joe Morrey has owned
since 1984 packs a powerful Corvette engine. The high-performance
Scarab brand was created by an entrepreneur named Brian Morrow for
a short time decades ago, and surviving examples are rare today.

Joe Morrey, 67, an attorney from St. Jo-

seph, Mo., on his 1972 Datsun 240Z Scarab,
as told to A.J. Baime.
As a law student in the 1970s, I used to
read car magazines to take breaks from
studying. One day I saw an article about a
car called Scarab. An entrepreneur named
Brian Morrow was taking Datsun 240Zs
(built in Japan) and upgrading them for
higher-performance, with Corvette engines.
The idea intrigued me. In the 1960s, the
Shelby Cobra became an icon—a foreign
body mated to a powerful American en-
gine—and the Scarab struck me as a Cobra
for the 1970s.
In 1984, I was looking at used cars in
Hemmings magazine when I saw a Scarab. I
thought, that’s interesting. Then I saw that
it was serial number 1. I thought, that’s
even more interesting. It was expensive and
I had to take out a loan to buy it. It blew
me away the day I got in it.
Over the years I have owned many cars—
Porsches, Jaguars, Mustangs. I keep looking
for a car that excites me more than the
Scarab, and I have never found one. The
power-to-weight ratio is off the charts, and
the engine shakes the ground. When I did
Above, Mr. Morrey at the wheel. Part of the allure of this car, he says, is the sound of the engine some research, I learned that my car was
‘It shakes the ground.’ The car has a 327-cubic inch V-8 engine (detail pictured at right). the original Scarab prototype, the car that
appeared on the company’s brochure, and
it originally belonged to the company’s
‘I keep looking for a car that
owner, who had nicknamed the prototype excites me more than the
In recent years, some Datsun fans got cu-
Scarab, and I have never found
To advertise: 800-366-3975 or WSJ.com/classifieds
rious about Scarabs. How many were built?
Did they still exist? Last year I was con-
one,’ says owner Joe Morrey.
tacted to bring my car to the annual
“ZCon” car show, in Branson, Mo., in July.
PORSCHE Other Scarab owners were bringing their my car, which was under a cover. We pulled
cars, and the founder, Brian Morrow, was the cover off and he said, “It’s Sliver!”
going to be there. (Says Mr. Morrow: “I can still remember
We arranged to make my car a featured building that car in my garage. It was re-
vehicle at the convention banquet. But we ally emotional seeing the car again.”)
kept it a secret from Mr. Morrow. When I Later we went for a drive, 12 Scarabs
met him, he kept saying how much he through the Ozarks, and Mr. Morrow got to
wished he could see his original Scarab drive the car he had built decades earlier.
again. Eventually, we ended up in front of It was a day neither of us will ever forget.

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The Datsun 240Z is a cult favorite of car fans, and this Scarab version has numerous high-
performance upgrades. This vehicle was the company’s original prototype.
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THE WALL STREET JOURNAL. Wednesday, October 2, 2019 | A13



The Beatles’ Stop Sign: ‘Abbey Road’ at 50

A remixed edition of the album reveals it as a crowning achievement—and an example of creativity cut short

FEW ALBUMS put the double bar

at the end of a band’s career as
conclusively as the Beatles’ “Abbey
Road,” released 50 years ago last
week and celebrated in a new re-
mixed 50th Anniversary Edition, in
several configurations, released by
Apple Corps Ltd./Capitol/UMe. Not
counting the brief “Her Majesty”—
a rejected song that an engineer
tacked onto the end of the reel
and was kept because the Beatles
found its appearance, after a long
pause, amusingly quirky—the al-
bum closes with “The End,” an un-
ambiguously named track that in-
cludes valedictory solos for all
four Beatles and a sweetly harmo-
nized closing lyric, “And in the
end, the love you take is equal to
the love you make.”
Paul McCartney has said that
he was inspired to write that phil-
osophical wrap-up by Shake-
speare’s practice of ending plays
with a rhymed couplet. How could
that fail to create an image of the
Beatles ringing down their own
Still, whether the Beatles in-
tended “Abbey Road” as an elabo-
rate farewell, or whether it just
happened that way, has long been
a matter of debate, and Kevin
Howlett’s informative, lavishly il-


lustrated liner notes for the new
edition raise it afresh. (“Let It Be,”
though released in 1970, was re-
corded before “Abbey Road.”) Mr.
Howlett argues that it was not
meant as a good-bye, and quotes a The Beatles photographed in Tittenhurst Park on Aug. 22, 1969, above; the cover of ‘Abbey Road,’ below, is one of the most iconic in all of music.
few of the Beatles saying
that they had not the street outside the EMI among the best of his Beatles con- velatory as the outtakes included
thought the album would Recording Studios. (The stu- tributions. on the “Sgt. Pepper’s Lonely
be their last. Further evi- dio complex was renamed But it is Mr. McCartney’s idea of Hearts Club Band” and “White Al-
dence, which Mr. Howlett Abbey Road, in honor of the turning a stack of his and Lennon’s bum” anniversary sets, and several
does not discuss, is an album, in 1970.) unfinished songs into a quasi-oper- just sound unpolished. But there is
extant tape of a meeting, The pity is, “Abbey Road” atic suite, with colorful characters, much to be learned about the
held just after the album captures the Beatles on the thematic recapitulations and lush Beatles’ process from these early
was completed, in which cusp of a new maturity in vocal harmonies that remains the takes, some with unfinished lyrics
the Beatles discussed their music-making. Their defining achievement here. and different guitar lines.
plans for a new album playing is more fluid than In their new mix, Giles Martin Particularly telling are an early
and single. ever, with probing, contra- and Sam Okell upgrade what was take of “I Want You (She’s So
But those plans were puntal guitar lines, and already the best-recorded sound Heavy),” in which Billy Preston’s
soon scuttled. A few some fresh timbres, includ- on any Beatles album. Vocal har- organ contributions are far wilder
days after the meeting, ing those of a primitive but monies are smoother and better than those on the finished ver-
John Lennon played a inventively used Moog syn- balanced, and instruments are sion, and a trial edit of “The Long
concert with his Plastic thesizer. Their vocal harmo- more texturally vivid and heftier. One,” the working title for the
Ono Band, in Toronto, nies, always a hallmark, had Unlike last year’s “White Album” suite that closes the album, cre-
and returned so ener- become both more sophisti- remix, which occasionally restored ated when “Her Majesty” ap-
gized by the experience cated and more playful. elements that had been submerged peared between “Mean Mr. Mus-
that he told the other All four contributed songs in the original, there are no sur- tard” and “Polythene Pam.”
Beatles that he wanted that covered vast musical prises here. But Mr. Martin and It may be that “Abbey Road” was
“a divorce,” effectively ground—from Lennon’s soul- Mr. Okell have tweaked some of the perfect place for the Beatles to
breaking up the band unilaterally. erence to another engineer’s pre- ful, proto-Minimalist “I Want You the vocal and instrumental place- stop—the group’s Everest, after all.
The idea of “Abbey Road” as a ferred brand of cigarettes, was the (She’s So Heavy),” and his other- ments, moving everything closer But hearing it in this crisp new re-
self-conscious swan-song has well- Beatles’ way of saying that they worldly fantasies, “Sun King” and to the center without eradicating mix, it’s hard not to feel that it
placed advocates. John Kurlander, were stopping at their peak. They “Because,” to Ringo Starr’s child- the stereo picture. The 5.1 and ought to have been the beginning of
an engineer at the sessions, told had agreed to be flown to Mount friendly “Octopus’s Garden” and Dolby Atmos surround mixes clar- a new creative phase, not the end of
me that it was clear, if unspoken, Everest to take the cover photo, Mr. McCartney’s popsy but socio- ify those textures further. the band’s exquisite chemistry.
that this was the Beatles’ last al- but when the mixing sessions ran pathic “Maxwell’s Silver Hammer.” The Super Deluxe Edition also
bum, adding that its original title, long, Mr. McCartney proposed hav- George Harrison’s “Something” includes 86 minutes of session ex- Mr. Kozinn writes about music for
“Everest,” though ostensibly a ref- ing the cover shot in Abbey Road, and “Here Comes the Sun” are tracts on two CDs. Few are as re- the Journal.

BY ROBERT GRESKOVIC in mostly deadly dull hues, espe-

DANCE REVIEW cially once the eight women re-
New York move their foil-shiny skirts. In his

At New York City Ballet,

NEW YORK CITY BALLET’S current first original work for NYCB, Mr.
run, through Oct. 13, marks the first Liang’s choreography is dominated
full season for the troupe—founded by conventionally arranged duets

New Beginnings Take the Stage

in 1948 by George Balanchine and in which the men variously allow
Lincoln Kirstein—under the leader- their women to stick their legs this
ship of Jonathan Stafford as artistic way and that.
director and Wendy Whelan as as- The one memorable, if merely
sociate artistic director. The pro- flashy, element in “Lineage” sends
gramming, now half concluded, of NYCB’s eager firebrand, corps de
16 different ballets grouped into six ballet dancer Roman Mejia, spin-
individual bills was planned before ning and bounding about for no
Mr. Stafford’s and Ms. Whelan’s ap- notable theatrical reason. Mark
pointments in February, under the Stanley’s lackluster lighting further
guidance of Mr. Stafford and Justin adds to the overall colorlessness of
Peck, who were part of an interim the affair.
team in place since former director Bright spots in the season so far
Peter Martins retired in January have come from some notable de-
2018. but performances. Most promi-
Each program has an overview ti- nently, 18-year-old Mira Nadon
tle. The one offering the season’s breezed through the stylish show-
two premiere works, Lauren girl choreography of “Rubies” in
Lovette’s “The Shaded Line” and Ed- Balanchine’s “Jewels” with sensa-
waard Liang’s “Lineage,” and first tional physicality mated with a kit-
presented at the company’s eighth ten-soft demeanor, and, in one of
Fall Fashion Gala, is called “Classic the trickier solos of “Raymonda
NYCB,” where the new ballets are Variations,” she showed unerring
framed by Jerome Robbins’s “Opus aplomb and radiance.

19/The Dreamer” (1979, to In a leading cast, all new to New

Prokofiev) and Balanchine’s “Sym- York, of Balanchine’s 1978 “Kam-
phony in C” (1947, to Bizet). mermusik No. 2”—arranged with
Novice and veteran NYCB-goers Mira Nadon in ‘Rubies’ from George Balanchine’s ‘Jewels,’ one of the works in NYCB’s current run what feels like a nonstop, accented,
might well wonder about the bill’s pulsing thrust from start to fin-
“classic” designation. The Robbins rangy Andrew Scordato); by the fi- dancer, soloist Georgina Pazcoguin acting as a partner for one of the ish—Emilie Gerrity, Jovani Furlan,
work, which got a reliable but not nale, however, teeming with white- dressed in fitted white shirt and women, the stellar Unity Phelan. Ms. Phelan and Mr. Gordon kept
rich performance last week, is a tutu-clad women and black-outfit- black slacks, surrounded by 14 At the end, Ms. Pazcoguin holds the pace smilingly and vigorously
standard moody affair showcasing ted attendant men, the aura of an women and nine men costumed in a clear, formal ballet stance, per- throughout.
a prominent male dancer and his enduring classic beamed forth. an array of peach tones, variously haps indicating that she’s co-opted By the run’s end, “Masters at
female counterpart; it passes The newest entries into the trimmed to give the women cotton- the canon embodied by the more Work: Balanchine & Cunningham”
agreeably without amounting to company’s extensive repertory candy-like plumage and the men elaborately costumed ballet men will offer a rare NYCB outing for
something suggesting lasting depth proved, at best, more curious than sleekly detailed tunics. and women working around her. modern-dance-innovator Merce
despite its somewhat regular ap- potentially classic. “The Shaded In her singularity, the gamine- The route, however, that Ms. Cunningham’s limpid 1958 “Sum-
pearances in the repertory. Line,” Ms. Lovette’s oddly titled wigged Ms. Pazcoguin, whose Lovette takes to reach her calm merspace,” which with Robert
Balanchine’s symphonic staging 20-minute ballet, her third for moves project a restiveness, might punctuation meanders more than it Rauschenberg’s pointillist décor
of Bizet’s music has been unforget- NYCB, is something of a puzzle, an be a struggling choreographer or a stays a course, making “The Shaded and costumes and Morton Feld-
tably stirring since its first outing ambitious, at times intriguing, ef- fashion designer laboring in her Line” more fuzzy than focused. man’s austere music NYCB first
with NYCB in 1948. It was per- fort for a cast of 24 that fails to workroom. As the rest of the cast Mr. Liang’s 22-minute “Lineage” performed in 1966. One cast is
formed here with a mix of verve marshall its various, eccentric ele- repeatedly poses in strict ballet is set to Oliver Davis’s sometimes slated for the work’s four perfor-
and fleetness in some parts (for ex- ments with reliable momentum. postures arrayed in neat lines, the soupy “Apollo” and is described in mances, which should give the
ample Megan Fairchild and Joseph Set to Tan Dun’s often dissonant work’s featured figure, who re- a program essay as making refer- dancers good time to plumb the
Gordon in the first movement) and and boisterous “Fire Ritual” for moves her black pointe shoes for a ence to Balanchine’s Georgian cul- poetics of the often darting dance.
with a lack of projection elsewhere solo violin and orchestra, “Shaded while before donning them again at tural roots. To these ends, Anna
(such as in the fourth movement Line” has costume designs by Zac the end, suggests a dance-maker in Sui has provided the ballet with Mr. Greskovic writes about dance
led by Erica Pereira, partnered by a Posen. It presents one central her studio, sometimes instructively Eastern European-style costuming, for the Journal.
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A14 | Wednesday, October 2, 2019 THE WALL STREET JOURNAL.

Baseball’s Lowest-Paid Team Is a Powerhouse
Despite limited financial resources, the Tampa Bay Rays won 96 games and earned a spot in the postseason

oney still doesn’t
ensure success in
baseball. The Boston
Red Sox and Chicago
Cubs, the organiza-
tions with the biggest payrolls in
their respective leagues, both
missed the 2019 playoffs despite
combining to allocate about $450
million on players. The Oakland
Athletics, the model for winning
with limited financial resources,
will participate in October for the
10th time this century.


But no team proves this sport’s
unpredictable nature better than
Oakland’s opponent in the Ameri-
can League wild card game on
Wednesday night: the Tampa Bay
Rays—a team more “Moneyball”
than the Moneyball A’s themselves.
The Rays opened the year with a
budget of about $60 million, the
lowest in the major leagues. They
still managed to finish with 96
wins and earn a spot in the post-
season for the first time since
2013, with a matchup in the divi-
sion series against the Houston As-
tros on the line.
Other teams have put together
brilliant seasons with even lower
payrolls. The A’s, for instance,
spent less than $60 million to
build the roster that claimed the
AL West crown in 2012. Back then,
however, the average payroll regis- Reigning American League Cy Young winner Blake Snell, left, made $1 million
tered at about $100 million. Now, this season. Only two Rays players have 2019 salaries of $5 million or more.
that figure has risen to nearly $134
million, meaning the Rays landed but you have to embrace the chal- All told, Tampa Bay pitched to a
at more than 55% below average. lenge, form your own identity and 3.65 ERA this season, best in the
That almost never happens. In stay true to who you are,” Bloom AL and trailing only the Los Ange-
fact, only one team since 2000 has said. “We know there are chal- les Dodgers.
made the playoffs with a payroll lenges we face financially, but we For a team that rarely awards
that far below league average—and don’t let ourselves be limited by multiyear contracts to high-priced
once again, it was the Rays, whose them. We use them to inspire us, free agents, Morton represented a
2011 payroll clocked in at 56% be- to spur us to work harder and be massive expenditure. Morton justi-
low average. more creative.” fied the Rays’ confidence in him.
“Baseball is a game where noth- Bloom points to a series of cru- “It’s hard to think this could be
ing is guaranteed, nothing is cer- cial trades—some of them contro- possible with someone who gets
tain,” Rays senior vice president of versial at the time—that el- the rave reviews that Char-
baseball operations Chaim Bloom evated the Rays to this lie does, but he even ex-
said in an interview last weekend.
“Having enormous resources is no
point. Chief among
them: the decision $60 ceeded our expecta-
tions,” Bloom said.

doubt a huge advantage, but it to deal popular As baseball’s top
doesn’t guarantee anything.” right-hander Chris payrolls continue
In an industry that boasts an- Archer to the Pi- The Rays’ estimated to grow, the gap
nual revenues in excess of $10 bil- rates at the 2018 between the rich
opening-day payroll, the
lion, the Rays stand alone as per- deadline. The re- and poor in base-
haps its strangest outlier. lowest in baseball and
turn? Meadows ball will only keep
They play half their schedule in and Glasnow, two about 55% lower than widening. Last sea-
St. Petersburg, Fla., the smallest key contributors to league average. son, the A’s made the
city that hosts a MLB team. Their the 2019 squad. That playoffs with a $66
home, Tropicana Field, seats just same day, they acquired million opening-day pay-
25,000 fans in the league’s only slugger Tommy Pham from roll, or just over 51% lower
fixed-roof ballpark. They have and New York Yankees. They have in salary this season. Reigning Cy the St. Louis Cardinals. than league average.
ranked either last or second-to-last accomplished this by emerging as Young winner Blake Snell made $1 The finishing touch to this in- That doesn’t bother the Rays,
in attendance in each of the last arguably baseball’s most progres- million, while Tyler Glasnow, an- carnation of the Rays came this who probably won’t see a substan-
nine seasons. Earlier this year, sive and innovative team, popular- other top pitcher, made $566,700. past offseason in a rare example of tial jump in payroll until they se-
MLB granted them permission to izing now-ubiquitous tactics like Only two Rays players have 2019 Tampa Bay opening its checkbook. cure a new stadium, whether in St.
explore the possibility of staging a the defensive shift and the salaries of $5 million or more: The Rays committed $30 million Pete, across the bay in Tampa or
bizarre scheme to split their time “opener”—the practice of starting pitcher Charlie Morton ($15 mil- over two years to pitcher Charlie somewhere else entirely. Until
between the Tampa Bay area and a game with a relief pitcher. lion) and outfielder Kevin Kier- Morton, an integral member of the then, their minuscule budgets will
Montreal. That, coupled with their shrewd maier ($8 million). By contrast, the rotation that carried the Astros to only lead to the rest of the league
In spite of everything, the Rays scouting and player development, Red Sox have 12, including four a title in 2017. Morton excelled in underestimating them as they pur-
keep finding ways to compete, have turned the Rays into an un- with compensation of $20 million his first year with the Rays, post- sue their first trip to the World Se-
posting a record above .500 eight likely powerhouse. Their leader in or more. ing a 3.05 ERA in 33 starts, earning ries since 2008. And if 2019 has
times since 2008 even though they home runs and RBIs, outfielder “We know our revenue is a chal- the nod to start in the do-or-die shown anything, it’s this: Underes-
play in a division with the Red Sox Austin Meadows, earned $557,400 lenge and an obstacle to overcome, contest in Oakland on Wednesday. timate the Rays at your peril.

Weather The WSJ Daily Crossword | Edited by Mike Shenk

Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
50s Edmonton
d t <0 1 2 3 4 5 6 7 8 9 10 11 12 13 63 Bankruptcy filer 22 Long time
40s 0s of December
Vancouver Calgary
C ry 14 15 16 25 “Abide With Me,”
ttl 30s
10s e.g.
ip 17 18 19
50s 40s 20s 64 Additionally
40s 26 Past paunchy
Por d 50s 30s 20 21 22
Helena Montreal 65 Frat supply
g Bismarckk Ottawa
ttawa 40s
28 Exact repetition
Billings Augusta
A 23 24 25 26 66 The Germans
50s 30s 60s
50s Toronto
T Albany
A banyy 50s 30 Congregants’
Boise 30s Mpls./St.
p s / . Paul
ff capitalize them
60s Boston
60s 27 28 29 30 31 answers
Pierre Sioux ux Falls
ll Milwaukeek Detroit
t 70s Hartford
tford 67 First lady before
C hi g New
ew York 70s 32 33 34 35
Mamie 33 Pursue, as a
70s Reno 40s 40s Cheyenne 50s Dess Moines Cleveland
C d
h Phhil d lph
Philadelphia 80s police tip
Sacramento Salt Lake City Omaha h Indianapolis
d p Pittsburgh
b gh 36 37 38
Denver 60s Kansas Washington
h D.C.
an Francisco City
C y Springfield
p g d 80s 90s 35 Slight
Top k
Ch l Richmond
h d 100+ 39 40 41 42 1 Mummify
Colorado St.. Louis
Lou Louisville
Lou ill 36 Blocking up
80s Las Springs
p g Raleigh
h 2 Metcalf of “Lady
70s Wichita
h 43 44 45 46 47 48 49
Los A
Angel Vegas
Ve Nashville
h ill 37 Cabbage variety
Santata Fe
F 80s Memphishi
C h l tt Bird”
Alb q q Columbia
C b 50 51 52 53 54
San Diego 90s Phoenix
Ph Oklahoma
oma City
k homa Cit
C y
Little Rock Atlanta
Atl t Warm Rain 3 Pouted 38 “Well, isn’t that
Tucson Birmingham
i h 55 56 57 fancy!”
F . Worth
th Dallas
D ll
70s Cold T-storms 4 Architect’s
El Paso
P 90s Jackson
bil Jacksonville 58 59 60 61 addition 39 Gate keeper
30s Austin
A ti Stationary Snow
40s 90s New
eww Orleans Orlando
l d 62 63 64 5 Dated label 40 Living blobs
80s San
an Antonio Tampa
A h g 90s recommendation 44 Popular
l l Showers Flurries 65 66 67
50s 6 Kibbutz greeting 45 Yap
70s 80s
CLOSE THE BARN DOOR! | 7 Conceal 47 Get under one’s
U.S. Forecasts City
Hi Lo W
Hi Lo W City
Today Tomorrow
Hi Lo W Hi Lo W
By David Alfred Bywaters 8 Before, in poetry skin
s...sunny; pc... partly cloudy; c...cloudy; sh...showers; Across 24 Ida. neighbor 44 “The Planets” 9 Spectrum’s end 48 “Seems to me...”
Omaha 61 43 r 60 45 s Frankfurt 59 42 pc 58 43 pc
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice
Orlando 90 70 s 91 71 s Geneva 63 42 sh 60 42 pc 1 Besides composer 49 Realty units
Today Tomorrow Philadelphia 93 63 s 67 59 r Havana 88 70 t 87 72 t 25 The pig broke 10 Into the hold,
City Hi Lo W Hi Lo W Phoenix 90 67 s 94 71 s Hong Kong 91 80 pc 91 79 s 5 Program loose! 46 Bit of a hit say
51 General ideas
Anchorage 51 40 s 51 43 c Pittsburgh 86 66 pc 81 52 t Istanbul 80 65 s 80 66 s distributor
Atlanta 96 75 s 98 74 pc Portland, Maine 69 38 sh 57 46 pc Jakarta 93 77 pc 93 76 pc 27 Jason’s lover 50 The hound is 11 “Don’t you
53 Park sections
Austin 96 72 pc 96 72 pc Portland, Ore. 65 50 c 60 49 r Jerusalem 80 62 s 79 58 s 10 Nursery denizen missing! agree?”
Baltimore 96 70 s 78 61 pc Sacramento 78 47 s 78 47 s Johannesburg 68 46 pc 73 53 s 29 Neither yes nor 56 Almond’s kin
Boise 62 39 s 65 39 s St. Louis 93 70 c 74 53 c London 58 40 pc 58 53 pc 14 Heavy hammer no 52 Copying 12 Moved
Boston 78 48 r 59 53 c Salt Lake City 59 39 s 70 47 s Madrid 76 48 pc 81 51 pc energetically 59 Bear’s lair
Burlington 61 37 c 57 41 c San Francisco 71 52 s 70 53 s Manila 89 76 t 90 77 sh 15 English county 31 Earthy prefix 54 In the past
Charlotte 96 67 s 99 70 s Santa Fe 76 40 pc 72 50 pc Melbourne 77 61 pc 81 53 s 13 Nuevo México 60 Get-rid-of-your-
Chicago 67 59 r 66 47 pc Seattle 63 50 c 59 48 r Mexico City 74 57 t 72 55 t 16 Australian 32 Espionage org. 55 Not a scam y Carolina del cards game
Cleveland 83 61 pc 77 53 t Sioux Falls 51 41 r 51 37 s Milan 74 53 t 69 49 s avifauna Norte
Dallas 95 76 s 93 72 t Wash., D.C. 97 71 s 84 66 pc Moscow 57 52 c 66 53 pc 34 Montmartre Mrs. 56 Its planes have 61 Science class
Denver 70 37 s 70 41 s Mumbai 89 78 pc 89 78 t 17 The bovine took the Star of 18 Luau locale feature
35 Many profs
74 54 r
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67 49 r
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Rio de Janeiro
62 40 pc 58 51 pc
82 66 pc 84 70 s
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Today Tomorrow 36 The pullet tails Previous Puzzle’s Solution
Houston 92 74 s 91 73 s Riyadh 106 83 s 108 84 s 19 Enumerate S P A C E D A S
Indianapolis 91 66 pc 81 52 t City Hi Lo W Hi Lo W Rome 74 59 t 76 51 t escaped!
Kansas City 76 50 r 62 48 c Amsterdam 56 48 t 59 47 sh San Juan 91 78 pc 89 79 pc 20 Animal refuge of 57 Holy sister A I L E Y A L T
Las Vegas 80 58 s 88 62 s Athens 82 68 s 81 71 pc Seoul 75 69 r 76 62 r note 39 ___ Alto S L A Y E R N O N O S
Little Rock 94 69 s 92 65 pc Baghdad 107 75 s 106 72 s Shanghai 83 70 sh 85 69 s
58 Geisha sashes H O R N E T S N E
Los Angeles 82 60 s 86 58 s Bangkok 93 79 t 93 79 t Singapore 88 76 pc 88 79 sh 21 Fit 41 Almond’s kin A V I A T E H E A D E D
Miami 88 79 pc 88 78 pc Beijing 87 61 pc 86 57 pc Sydney 76 57 s 82 62 s
59 The drake L E N M A R A U D
Milwaukee 62 54 r 65 46 c Berlin 54 43 r 54 42 sh Taipei City 93 75 c 91 74 s 22 It comes from 42 Long, long time decamped! R I D G E D R O E
Minneapolis 56 44 r 54 39 pc Brussels 56 43 pc 57 47 pc Tokyo 81 72 pc 81 74 pc the heart H E L P M E S U B D U E
Nashville 98 67 s 97 63 s Buenos Aires 60 41 pc 60 49 pc Toronto 61 46 r 57 44 r 43 Latin lover’s 62 Possible RSVP A X E B A S S E T H O U N D
23 Inventive account declaration reply S H E L L A N N U A L
New Orleans 94 76 s 94 76 s Dubai 103 85 s 100 87 s Vancouver 58 49 r 57 48 sh H A R P E R L E E U T T E R
New York City 90 57 pc 62 56 r Dublin 53 41 pc 58 51 r Warsaw 63 44 r 53 42 pc E L A N D O R M L OW L Y
Solve this puzzle online and discuss it at WSJ.com/Puzzles.

Oklahoma City 89 62 s 72 58 sh Edinburgh 55 37 pc 53 45 pc Zurich 62 39 t 57 38 pc S E T S A N D Y S N A K E

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THE WALL STREET JOURNAL. Wednesday, October 2, 2019 | A15

All Roads Lead to Mueller BOOKSHELF | By Moira Hodgson

Wa te rga te
sons are in
istration has reached out in
similar fashion to other gov-
ernments, including Italy’s,
bomb on the eve of a Justice
Department inspector gen-
eral’s report that will begin
that four congresswomen of
color should “go back” to their
countries of ethnic origin.
The Honored
the air but a
big differ-
ence is over-
looked. Only
Britain’s and Australia’s.
House Democrats,
course, are free to impeach
over any charge that can win a
opening the lid on FBI and CIA
actions during the 2016 cam-
At least by the public, ques-
And it continues. The magi-
cal ellipses have been rolled
out again to make Mr. Trump’s
conversation with the Ukrai-
WORLD a few days
elapsed be-
majority, including a claim Mr.
Trump sought foreign inter-
tions should also be asked
about the mainstream media’s
nian president sound a lot less
ambiguous and a lot more in-
A Guest of the Reich
By Holman W.
tween news ference in the 2020 election. conspicuous reluctance to look criminating than it was. By Peter Finn
Jenkins, Jr.
breaking of But they didn’t bargain on the into Democratic and Obama The media’s hopscotching (Pantheon, 240 pages, $28.95)

anonymous Russia-collusion fiasco forcing administration behavior in the from one impeachment cause
whistleblower allegations its way into the drama they to another, until they landed n September 1944, while at the Ritz in Paris celebrating
against Donald Trump (the ac- are trying to create. Even a on one Mrs. Pelosi would en- the city’s liberation, Gertrude Legendre made the
tual report hadn’t even been daily email blast from the The Russia collusion dorse, is not likely at this late reckless decision to visit the front. She loved adventure
seen yet) and Nancy Pelosi’s Trump-unfriendly Columbia date to convince a broad spec- and wanted to get close enough “to smell the fighting.”
opening of an impeachment Journalism Review acknowl- morass threatens to trum of Americans. How fit- Together with three American intelligence officers, she set
inquiry. edges that the “Trump- spoil the Democrats’ ting, though, that they hop- off for the German border village of Wallendorf, which they
No Ben Bradlee. No weeks Ukraine story, it’s safe to say, scotched to one that serves thought had been taken by the Allies. The idea was to
and months as the story de- is now about much more than impeachment drama. Mr. Trump’s own obsession “mosey up to the line,” as one of her companions put it, “so
veloped to ponder and reflect Trump and Ukraine.” with 2016. All roads lead back the lady could hear some gunfire.” When they arrived, they
on what it might mean. Luck- Democrats were going to to Mueller, and the fact that heard plenty of shots, but the shots were directed at them.
ily, media ranks today are face powerful counterargu- Russia-collusion matter. Why, Mr. Trump, surely one of the The village had been retaken by the Nazis.
overflowing with people who ments anyway: The U.S. media it’s almost like the press most controversial and sin- In “A Guest of the Reich,” his gripping account of Legendre’s
don’t need to labor their itself had raised questions doesn’t want the subject in- ning of presidents, may also captivity by the Germans in World War II, Peter Finn brings to
minds over the matters that about Mr. Biden; Mr. Trump vestigated, for fear of what be the most sinned against. light an unfamiliar side of the Nazi regime. During her time as
come before them. They in- had merely asked Ukraine to might be learned about the He is the paradox that a prisoner, Mr. Finn tells us, Legendre discovered that there
stantly know the answer be- take up the allegations with press. keeps on giving. Illicit actions was “a parallel Nazi detention system whose relative privileges
cause Twitter tells them. the U.S. attorney general, Three years ago, I had an by FBI chief James Comey stood in stark contrast to the horrors and barbarism of the
And yet, once again, their which is a pretty good shield epiphany watching the George may have helped elect him. death camps.” Castles, private villas and hotels were used to
rush to judgment is getting against Mr. Trump himself Stephanopoulos show on ABC. Joe Biden, said to be the op- detain high-ranking figures. “Eventually, the system housed
ready to blow up in their lapsing toward any illegalities. Mr. Trump behaved badly ponent he fears most, is being hundreds of prisoners; members
faces. But more important is the (typically) when the family of taken out by friendly fire. of several European royal families;
Numerous press accounts new outpouring of reporting a slain soldier appeared at the Questions about 2016 that German dissidents whom Hitler
claimed falsely, even with the that sets these questions in Democratic convention, but he could have been aired years or Himmler didn’t wish to be
evidence in hand, that Mr. the broader context of a legiti- never equated the dead sol- ago, if the mainstream media killed, at least not immediately.”
Trump had asked for a “favor” mate inquiry into the actions dier with a radical Islamic ter- had played it straight, may Legendre (1902-2000) was a
from Ukraine’s president in the of U.S. intelligence agencies in rorist, as one of the ABC soon crowd out the Demo- big-game hunter from South
form of “dirt” on Joe Biden. the last presidential election. show’s panelists said. cratic hopes of a 2020 cam- Carolina high society. After the
Yet the plain words of the The implications are not An unspoken decision paign focused on his manifest attack on Pearl Harbor she joined
available transcript show the small. Democrats may have to seems to have been made that deficiencies. the OSS, the wartime intelligence
“favor” he sought was cooper- reconsider their selection of Mr. Trump has no reputation If liberals are looking for agency created by Franklin
ation with the Justice Depart- Adam Schiff as impeachment to injure; he is an illegitimate someone to blame, they might Roosevelt, and worked first in
ment’s perfectly proper inves- frontman because of his role president, so the media is free start with their own favorite Washington, then in London,
tigation of the 2016 election. in promoting the Russia-collu- to put words in his mouth. It news outlets, which owed it to where she was privy to closely
Now come reports in the sion canard. Questions will happened with his Charlottes- them to keep their critique of guarded government secrets. She was not
Journal, the New York Times have to be asked about the ville comments. It happened Mr. Trump grounded in reali- afraid of danger. She’d always rebelled against
and the Washington Post that motives of the whistle- with his infamous tweet that ties and even mention the oc- the strictures of high society, preferring the wild outdoors to
at the behest of Attorney Gen- blower—a CIA official who tried to say something a lot casional unwelcome truth balls and debutante parties. Before the war, she and her
eral William Barr, the admin- dropped his highly polished more complicated than just once in a while. husband would spend months hunting in Africa and Asia,
leaving their two children at home with a nanny. Most of
the animals she felled were brought back to museums and

Polls Argue Against Impeachment other institutions in America. It’s hard to read about her
expeditions, which Mr. Finn recounts in gory detail, without
a feeling of revulsion. After she shot a lion standing with his
When Oliver peaching and removing him, cism about their motives. Ac- ing President Nixon in 1974, pride—three lionesses and six small cubs—Legendre wrote
W e n d e l l and support for this outcome cording to the Quinnipiac sur- six out of 17 Republicans sup- in her diary, “It was a gala, red letter day.” She shot zebras
Holmes Jr. has averaged 42% in seven vey, only 36% of the electorate ported the charge that he had for their skins, which her tailor made into “summer sports
was a Har- CNN surveys since the summer believes that advocates of im- obstructed justice, and seven coats.” (You needed six for one coat.) When she shot a rhino,
vard under- of 2018. Although recent peachment and removal are agreed with the charge that the wounded animal let out such “high shrill shrieks” that
graduate, he events have had an effect on responding to the facts, com- he had abused the powers of she almost felt sorry for killing “such a huge, happy beast.”
POLITICS wrote an es- public opinion, it is important pared with 56% who think his office. This presaged the The big strip she took off its back made a nice tabletop.
say criticiz- not to exaggerate the extent of they are moved mainly by dramatic trip down Pennsyl- Autres temps, autres moeurs.
ing Plato as the change. “partisan politics.” vania Avenue of a Republican Legendre saw Germany firsthand on a trip across the
By William
“loose and The latest Quinnipiac sur- Nevertheless, there is some delegation headed by Sen. country in August 1936, the year of the Berlin Olympics. Mr.
A. Galston
unscientific” vey underscores this cau- basis for Democrats’ hopes. Barry Goldwater to inform Finn reports that she gives no account of Nazis in her
and sent it to tionary note. Mr. Trump’s The Republicans’ attempt to Nixon that his support in the journal. You’d think they’d be hard to miss. In 1938 the news
his intellectual hero, Ralph job approval stands at 41%, remove President Clinton from Senate had collapsed. In 1998, that Hitler was threatening Czechoslovakia also made little
Waldo Emerson, who within its narrow 4-point office fell short, not because by contrast, only five House impact on her. She was hunting in Persia at the time and
promptly set him straight. “I range throughout 2019. The the American people doubted Democrats out of 205 favored couldn’t imagine “war being declared over something so
have read your piece,” Emer- share of respondents ex- any of the articles of im- hopelessly small and pathetic as Czecho.” She was an anti-
son replied. “When you pressing “strong” approval peachment against Mr. Clin- Semite and a racist, “casual with her prejudice in her private
strike at a king, you must kill of the president jumped from Nixon only fell after ton, who retained the support correspondence.”
him.” 29% to 35%, its highest level of every Senate Democrat, When she accidently crossed the front line into Germany
While it is too early to ever, and the share regarding Republicans defected. leaving the Republicans far with her friends, Legendre was dressed in the khaki uniform
gauge how likely impeach- him as “honest” rose from So far, Trump retains short of the two-thirds of the Women’s Army Corps. The Nazis at first suspected her
ment-minded Democrats are to 30% to 37%. The Democrats’ threshold for conviction. of being a spy. She was relentlessly interrogated (but not
meet Emerson’s test, the early decision to open an impeach- their strong support. This year is shaping up as tortured) and subjected to stretches of solitary confinement.
signs aren’t encouraging. ment inquiry appears to have a rerun of 1998. It is possible Once they became aware of her wealth (and connections to
Public opinion is sharply di- rallied the president’s core that not a single House Re- senior American generals) they saw a potential propaganda
vided, as illustrated in two supporters. the truth of the charges publican will support any ar- tool and treated her as a “special and honored” prisoner.
surveys released Sept. 30. A It has also energized Mr. against him, but rather be- ticle of impeachment against
CNN poll found 47% of respon- Trump’s opponents. Quinnipiac cause they overwhelmingly Mr. Trump. Of the 53 Senate
dents in favor of impeaching finds that the share of regis- concluded that the charges Republicans, 45 hail from sol- Gertrude Legendre, an American socialite
and removing President Trump tered voters favoring impeach- didn’t rise to the level of im- idly red states where the with a taste for adventure, was for six months
from office (a 6-point gain ment and removal surged by peachable offenses. main threat to their re-elec-
since late May) and 45% op- 10 points while opposition fell Not this time. Fifty-two tion would come from a pri- held captive by the Nazis.
posed. Democrats support pur- by the same amount. This percent of voters, including mary contest in which their
suing this course by a 55-point large shift leaves the American 54% of independents, believe opponent was backed by Mr.
margin, Republicans resist it people divided, 47% to 47%, that asking a foreign leader Trump. Of the remaining When the Allies pushed toward the Rhine, the Germans
by a 66-point margin, and in- and partisan polarization has for help defeating an oppo- eight, only four will face the retreated, taking their prisoners with them. Legendre was
dependents are split down the only intensified. nent in the forthcoming elec- voters in 2020. moved from city to city and witnessed firsthand the damage
middle. Most of the increased sup- tion is enough to warrant re- The odds are that when done by the Allies. She arrived in Frankfurt under moonlight
These results should be in- port for removing the presi- moving the president. If Mr. Democrats strike at the king, to see “crumbled buildings, heaps of rubble, gaunt skeletons
terpreted in a wider context. dent has come from Demo- Trump’s accusers can make a they won’t kill him. Now is of towers” silhouetted against the night sky, a shocking con-
By many measures, Mr. Trump crats, among whom it rose convincing case that this is the time for them to ask trast to the vibrant town with its medieval center that she
is the most polarizing presi- from 73% to 90%. The rest is what happened, they will whether this outcome will had visited in 1936. The center of Berlin was a “dead city”;
dent in the history of survey attributable to independents, probably gain ground among improve their chances of de- the gaunt pedestrians wore “masks of defeat and apathy.”
research. It is nothing new for up from 34% to 42%, while 92% independent voters. feating Mr. Trump in the Eventually she was escorted to the Rheinhotel Dreesen in
his adversaries to support ex- of Republicans continue to op- Still, the chances of bipar- 2020 election and, if not, Bad Godesberg. The hotel had been a favorite of the Führer
pelling him from office. An- pose the Democrats’ effort. tisan support for President whether they should pursue a before the war, the place where he and Goebbels planned the
other CNN poll, conducted in Despite the revelations of Trump’s removal are slim. course more likely to benefit Night of the Long Knives, the 1934 purge of Nazi leaders.
September 2018, found 47% of the past week, Democrats still When the House Judiciary the country and their own Legendre found the distinguished Art Nouveau building,
Americans in favor of im- face substantial public skepti- Committee voted on impeach- prospects. despite the barbed wire, watchtowers and SS troops on its
grounds, less like a prison than an old-folks’ home. There
were hot-water bottles; games of chess, bridge and Chinese

Electricity Doesn’t Light Up the Soul checkers; math lessons; lectures; even deck tennis. Residents
each had a favorite chair and were given to picky grumbling
about the food, which was plentiful.
By Richard Fernandez millions of government-hating gious optimism. “Thinking of Here it comes again: All Other “guests” included retired French officers—42

Americans, need to accept sending your ‘thoughts and you have to do is accept the generals and 75 colonels—and Marie-Agnès Cailliau de
he 20th-century left high taxes and severe curtail- prayers’?” asks a CNN report. answers. Yet even if the solu- Gaulle, older sister of Charles, who had been arrested in
tended to define prog- ment of their familiar life Don’t bother: “Some atheists tions advocated by Ms. Thun- Normandy. After much pleading on her part, her husband—
ress in terms of mate- styles without revolting. They and agnostics would pay berg work, they won’t stop who had been sent to the Buchenwald death camp—was
rial goods, and that was true must accept the reality of cli- money to avoid them, accord- history. The human system finally allowed to join them at the hotel. His arrival was a
of liberals and Communists mate change and have faith in ing to a study.” A co-author of can’t be sealed off at the per- stark reminder of the other side of Nazi prison life. He’d lost
alike. Lyndon B. Johnson the extreme measures taken the study told the network fect moment. Tomorrow keeps so much weight that at first his wife didn’t recognize him.
waged “war on poverty,” and to combat it. . . . Every day, that the “result is surprising upsetting arrangements with During her six months’ captivity, Mr. Finn writes,
in 1920 Lenin confidently de- instead of thinking about because one might expect that new events, new informa- Legendre showed a great deal of courage. She had a
clared that “communism is breakfast, they have to think atheists/agnostics would be in- tion—Pearl Harbor, the Soviet personality that “radiated confidence and resolve” and was
Soviet government plus the about death.” different to people praying for Union’s collapse, 9/11, the “an archetypical American woman, endowed with a kind of
electrification of the whole them—why care, if you don’t 2008 financial crisis, Brexit. bullying certainty, as if she had just strolled, cigarette in
country.” believe in the gesture?” Part of the reason progres- hand, out of a celluloid frame.” She also had an enormous
That optimism is gone. Secular humanism Secular humanism seems sives find President Trump so ego and a strong sense of entitlement.
Americans live in a world of to be having an existential maddening is that after com- At the Rheinhotel there was plenty of wine on hand but
mass air travel, endless enter- was full of promise. crisis. Five-year plans and so- ing so close, they had to begin water was limited. Baths were allowed just once a month.
tainment options, food deliv- Now it’s having an cial engineering didn’t pro- all over again. During air raids, Legendre, who hated to go down to the
ery, constant connectivity and duce happiness. We got the Kurt Godel warned that cellar, would stay back so she could steal some of the hotel’s
air-conditioning, and the left existential crisis. electricity, and it’s destroying there would be questions we supply of hot water. “Without a twinge of conscience, I
insists we have to renounce it the planet. Yet the failure could not answer without ap- hopped into many a tub not meant for me and thus
all. “Every one of the world’s hasn’t persuaded ideologues pealing to a larger system in a increased my baths far above the legal quota.”
major polluting countries,” Children shouldn’t even to change their approach. universe with one puzzle Mr. Finn, the Washington Post’s national-security editor
writes novelist Jonathan Fran- think about schoolwork, ac- “Some people say that we nested inside another. There’s and the co-author of “The Zhivago Affair” (2014), has drawn
zen in the New Yorker, must cording to 16-year-old Greta should study to become cli- nothing to do but see where it upon memoirs, diaries, letters and OSS archives to provide
“institute draconian conserva- Thunberg, organizer of the mate scientists so that we can goes—though it helps if you both a fascinating character-portrait and an intriguing foot-
tion measures, shut down Global Climate Strike: “Why ‘solve the climate crisis,’ ” have faith. note to events that led up to the collapse of Nazi Germany.
much of its energy and trans- should we study for a future Ms. Thunberg says. “But the His book is as well-paced and exciting to read as a good thriller.
portation infrastructure, and that is being taken away from climate crisis has already Mr. Fernandez is a soft-
completely retool its economy. us?” This atmosphere pro- been solved. We already have ware developer and author of Ms. Hodgson is the author of “It Seemed Like a Good Idea at
. . . Human beings, including motes an antipathy to reli- all the facts and solutions.” the Belmont Club blog. the Time: My Adventures in Life and Food.”
UPLOADED BY "What's News" vk.com/wsnws TELEGRAM: t.me/whatsnws
A16 | Wednesday, October 2, 2019 THE WALL STREET JOURNAL.


Foreign Influence and Double Standards Is a Carbon Tax the Least Bad Green Plan?

ashington is in an impeachment ping off U.S. intelligence about Trump campaign Christopher Crane and Ted Hal- Conservatives may be able to de-
frenzy, which is a dangerous mo- adviser George Papadopoulos’s comments about stead tout the Climate Leadership lay Congress, but allowing climate
Council’s (CLC) proposed carbon- change to worsen even more before
ment for facts and context. A classic Russia in July 2016. This relates to how the FBI
emissions tax combined with a car- starting to take action will increase
example is the political and came to rely on Russian misin- bon dividend paid to American fami- the chance that radicals will craft
media overreaction to Mon- Democrats want to stop formation to open a counterin- lies as a pro-business, pro- the needed response as voters be-
day’s stories concerning Sec-
retary of State Mike Pompeo
Barr from investigating telligence probe into the
Trump 2016 campaign.
environment and pro-consumer come more frightened.
climate solution (“How to Cut Emis- The sooner we adopt a market-
and Attorney General William what happened in 2016. The press is portraying sions Without Wrecking the Econ- based solution like the carbon-divi-
Barr and impeachment. Monday’s news as a plot to omy,” op-ed, Sept. 23). They say that dend plan, the better the chance we
Mr. Pompeo’s alleged mis- “discredit” former special a carbon “fee” will start at $40 a ton have to avoid the worst conse-
deed is that he was among those listening to Mr. counsel Robert Mueller. But the Mueller probe and increase annually at 5% above quences of both climate change and
Trump’s July 25 telephone call with Ukraine is over. The former special counsel chose not to inflation. Assuming 2% inflation, the the actions needed to address the
President Volodymyr Zelensky. But why investigate the Russian origin story and he $40 fee will be $110 (an increase of problem.
175%) in 15 years. That type of finan- E.J. PARKER
shouldn’t a Secretary of State be on a call to the never publicly explained his reasons. Yet there
cial bite will accomplish a desired Long Beach, Calif.
new President of an important country? U.S. are many unanswered questions that deserve in- change in American lifestyles, but
foreign policy is the secretary’s job. As far as vestigation because laws may have been broken. also might depress business and The authors lead us to believe
we know, Mr. Pompeo isn’t responsible for Mr. It is routine for U.S. prosecutors to seek help consumer sentiment, disrupt vital that 70% of Americans will see a net
Trump’s decision to mention Joe Biden in that from foreign counterparts in such cases. economic sectors and dampen eco- benefit in the carbon dividend. As-
conversation. This is not impeachable behavior, Note the double standard at work here. Dem- nomic growth. “Dividends” (i.e., re- suming that is true, then 70% of
or even impeachment news. ocrats and most of the press corps want to im- bated tax money) will offset the Americans would be disincentivized
As for Mr. Barr, he is supposedly implicated peach Mr. Trump for inviting foreign help to in- pain, but in Washington the house to reduce their carbon emissions.
because he asked Mr. Trump to ask Prime Min- vestigate Joe Biden and his son’s role in always wins. How do the authors propose to hit
ister Scott Morrison for Australia’s cooperation Ukraine. But at the same time they want every- A study indicates that the bottom their emission-reduction targets?
with the Justice Department probe of illegal one to forget that the Clinton campaign in 2016 70% of American households (ranked JOSEPH SCHMIDT
by income) will receive more in divi- Kew Gardens, N.Y.
foreign influence in the 2016 election. Mr. Barr paid for foreign dirt that the FBI used to justify dends than they pay in increased en-
and prosecutors have also sought the coopera- a secret surveillance warrant against the Trump ergy costs. There is a significant in- The CLC believes not one dime
tion of other foreign governments. campaign. come-redistribution teaser to make will be siphoned off to pay for other
We certainly hope they have. Everyone has That is what Mr. Barr has asked Mr. Durham the plan more popular, but no tax noble climate causes, including many
known for some time that Justice is investigat- to investigate, and the U.S. Attorney has a repu- plan in the U.S. has ever been pro- of those outlined in the now infa-
ing what happened in 2016, and Justice made tation for being thorough and fair. He may find gressive enough to satisfy progres- mous Green New Deal. The CLC says
that public last week in a statement when the there was no illegality involved. But investigat- sives. Also, Messrs. Crane and Hal- its plan is “revenue-neutral and
transcript of Mr. Trump’s Ukraine phone call ing this is a public service because half of Amer- stead reassure us that the tax-to- won’t increase the size of the federal
was released. ica now wonders if James Comey’s FBI took dividends conduit will be secured by government.” Who, but the federal
“A Department of Justice team led by U.S. sides in a presidential election based on foreign ironclad legal covenants that prevent government, has the authority to es-
any diversion of funds. The “lock- tablish and maintain carbon border
Attorney John Durham is separately exploring propaganda ginned up by the opponents of Don-
box” for Social Security and Medi- adjustments for the tens of thou-
the extent to which a number of countries, in- ald Trump. care isn’t an encouraging example of sands of products—from foodstuffs
cluding Ukraine, played a role in the counterin- This attack on Mr. Barr looks like a pre-emp- Washington’s fiduciary conduct. to manufactured goods—that enter
telligence investigation directed at the Trump tive warning to steer him and Mr. Durham off One appeal of the proposal is that and leave the U.S. every year? The
campaign during the 2016 election,” the state- the case, or to discredit anything they might it could be viewed as a hush-money bureaucracy needs to set, monitor
ment said. “While the Attorney General has yet conclude or prosecute. “Democrats’ worst fears payment that keeps the Green New and reset these “adjustments.” The
to contact Ukraine in connection with this in- about William Barr are proving correct,” says Deal zealots at bay for a couple of reaction of other nations to all this
vestigation, certain Ukrainians who are not the headline on a news article by the Washing- years, but the risks of economic mal- will be nothing short of massive.
members of the government have volunteered ton Post’s Aaron Blake that is a textbook exam- feasance in Washington outweigh The CLC needs to pull its head out
information to Mr. Durham, which he is evaluat- ple of partisan framing. the plan’s meager effect on global of the sand and look at the political
ing.” Some media scoop. We hope the prosecutors won’t be deterred. climate change and the temporary gold rush its deeply flawed plan will
sidelining of Green New Dealer’s de- set off.
Australia’s cooperation is important because When Washington is in impeachment heat, it
manding zero carbon emissions and PAUL RANKIN
it relates to the role that Alexander Downer, for- pays to be skeptical and look for the other half a full overhaul of the U.S. economic Annapolis, Md.
mer Australian foreign minister, played in tip- of the story. system.
RON ALLEN What I don’t see in this proposal
Columbia, Md. is a cost-benefit analysis. No men-
There Is a Commission-Free Lunch tion is made of the increased prices

The market-based proposal by the of consumer goods and services that
harles Schwab caused brokerage stocks the norm, brokers may cut fees on other prod- CLC may be one of the last chances will be necessitated by these “in-
to tumble on Tuesday by announcing ucts too. As the Securities and Exchange Com- for American conservatives to have a creased energy costs.” Higher energy
commission-free online trades that mission recently noted in its broker best-inter- voice in the crafting of legislation costs, whether contrived or genuine,
could trigger a cascade across the industry. Be- est rule, “Although discount brokerage firms fighting climate change. Make no will result in a lower standard of liv-
mistake, this is coming; public and ing for all Americans.
hold how competitive markets are making in- generally provide execution-only services and private perception of the effects of WILLIAM MORSE
vesting less expensive for ordinary folks with- do not compete directly in the advice market climate change will force it. Grosse Ile, Mich.
out government intervention. with full service broker-dealers and investment
Only 7% of retail broker-dealers offer online advisers, entry by discount brokers has contrib-
or internet trading business, but they have be- uted to lower commission rates throughout the
come popular among younger and small-dollar
investors who want to try their hand at stock-
broker-dealer industry.”
This price deflation is especially notable af-
No End in Sight for California Homeless Mess
picking. They also help banks and brokerage ter Obama Labor Secretary Tom Perez sought Regarding your editorial “Califor- that is spent on the problem, the
firms attract new customers, which is one rea- to ban broker-dealers from charging commis- nia’s Hobo Paradise” (Sept. 24): Men- worse it seems to get. In San Fran-
son they are cutting commissions and fees. sions with his fiduciary rule, which was blocked tal illness, addiction and the release cisco there are more than 8,000 core
of thousands of prisoners, all un- homeless despite city expenditures of
J.P. Morgan Chase last year announced 100 by the courts. The rule would have impelled
doubtedly contribute to the current more than $300 million a year to ad-
commission-free trades in an effort to recruit brokers to shift customers to fee-based ac- California homeless situation, but the dress the crisis.
young customers to its other investment ser- counts that can cost small savers more than core of the problem is supply and de- The current approach to homeless-
vices. Fintech companies have also launched trade-based commissions. mand. The Golden State has a 3.5 ness sets up a permanent homeless-
free trades with smart-phone apps, and last Many brokerage firms had already moved to million unit dwelling deficit, and last industrial complex, as Christopher
week discount electronic trading platform In- charging fees for investment advice because year constructed just 125,000 new Rufo (“‘New Left Urbanists’ Want to
teractive Brokers Group Inc. introduced zero- they can be more profitable than commissions homes. Remake Your City,” op-ed, Aug. 23)
commission trades. for executing transactions. Mr. Perez elided the California’s dirty little secret is points out. Armies of well-inten-
This put pressure on Schwab, which has long practical distinction between the two, and his that its housing shortage, and the tioned—and salaried—outreach work-
been an industry trend-setter, to eliminate its fiduciary rule would have reduced competition homeless crisis it created, persist be- ers beg homeless people to accept
$4.95 commission. Schwab’s stock dropped 9% and limited retirement investment options. cause every current California home- free services and then report that
owner and most politicians have a they are not ready yet.
on Tuesday following its announcement, though The SEC’s new best-interest rule allows bro-
vested interest in maintaining the A radical conservative approach to
TD Ameritrade Holding Corp. (26%) and kers to continue charging commissions as long status quo. For the truly wealthy, it is the problem would begin with St.
E*Trade (16%) fell even more as shareholders as they aren’t putting their own pecuniary in- a matter of scenery, proximity and Paul’s admonition: Those who don’t
predicted they will also eliminate online trade terests ahead of their customers. But Schwab density. No tech titan or Hollywood work shall not eat. It’s worth a try.
commissions to stay competitive. is showing how competition can make busi- celebrity wants his or her views DAVID OWEN ROBINSON
Once commission-free online trades become nesses better stewards for their customers. blighted with affordable housing. Danville, Calif.
Likewise, while they are all publicly
concerned with economic disparity I agree. President Trump did per-
Liberal Meltdown at the FEC and childhood poverty, elites want
neither anywhere near their own
form a public service last week when
he highlighted the causes of home-

or an example of why so many Ameri- tional” could “result in the receipt of a prohib- progeny. Finally, like everyone else, lessness in California, particularly
they desire no more traffic than they San Francisco.
cans perceive administrative agencies ited in-kind contribution.” However, the Justice currently endure. Like many, for years I took my
as partisan and unaccountable, look at Department found that Mr. Trump’s call with Mr. Most politicians, beholden to family to San Francisco, looking for-
the antics of Federal Election Zelensky was not a campaign- wealthy donors, acquiesce to their ward to walking the hilly streets, rid-
Commission Chair Ellen Wein- The chair politicizes finance violation. wishes. Even those politicians who ing the cable cars, visiting the sea-
traub, who has inserted her campaign-finance law to The rule Ms. Weintraub try to improve the situation inevita- port, making our way to Alcatraz and
agency into the Trump im- proposes would likely be un- bly shoot themselves in the foot. enjoying the diverse dining options.
peachment debate and dis- support impeachment. constitutional. If any “infor- Watch the effects of statewide rent San Francisco is no longer a destina-
torted campaign-finance law. mation” offered “in connection control worsen the problem. tion for us. We simply don’t feel safe
Last week Democrats with an election” is prohibited, Any student of OPEC or De Beers there. When will the politicians
started calling for President Trump’s impeach- then gossip between an American campaign realizes that California’s housing (Democrats) in California wake up
shortage isn’t organic, but purpose- and see what their policies are doing
ment over his phone call with Ukrainian Presi- staffer and a noncitizen Uber driver ahead of an
ful. The shortage, and the homeless to this wonderful city? We have truly
dent Volodymyr Zelensky. Ms. Weintraub, who election could be prosecuted. There’s a reason crisis it begets, will remain until the left a piece of our hearts in San Fran-
has been publicly baiting Mr. Trump for the Mueller report said treating “opposition re- housing supply dramatically in- cisco—and are not going back.
months, posted to the FEC website a draft cam- search or similar information as a thing of creases. The day before you pub- JOHN WARD
paign-finance interpretation designed to sug- value” could “raise First Amendment ques- lished this editorial, Gov. Gavin Darien, Conn.
gest the President had committed a crime. An- tions.” Perhaps “anti-regulatory people” simply Newsom, speaking at the U.N., noted
other FEC commissioner, Caroline Hunter, want to follow the Constitution. how humiliating he found the current
objected to the rule’s inclusion in the FEC’s Ms. Weintraub appears more interested in presidential administration. Evidently Pepper ...
email digest without further discussion. That grandstanding than in the substance of the law. the governor is more embarrassed by
could lend the agency’s imprimatur to a parti- She posted the rule to the website unilaterally President Trump then the fact that
And Salt
san stunt. and in response to political developments though 130,000 of his fellow Californians THE WALL STREET JOURNAL
permanently reside outside, like live-
The digest was never sent out. Ms. Wein- the FEC lacks a quorum to adopt it.
stock. Perhaps that, too, is part of
traub then reproduced the digest in a series of This isn’t the first time Ms. Weintraub has the problem.
tweets Friday, which have been retweeted more politicized her position. She sent a letter in Au- RONDA ROSS
than ten thousand times. She wrote, “I always gust asking Mr. Trump “in terms a former ca- Austin, Texas
thought these anti-regulatory people”—pre- sino operator should understand” to back up his
sumably referring to Ms. Hunter—“liked the claims about voter fraud, and piped up with an- There’s no evidence that even the
First Amendment well enough. I guess they other campaign-finance rebuke on Twitter after most liberal and generous approaches
think it’s just for corporations.” Mr. Trump’s remarks to ABC in June. If she were to homelessness make any dent in
Speaking of the First Amendment, consider honest about her bias, she’d recuse herself from the problem. Indeed, the more money
Ms. Weintraub’s campaign-finance interpreta- FEC cases concerning Mr. Trump.
tion. Federal law prohibits “a contribution or do- Regardless of whether Congress impeaches, Letters intended for publication should
nation of money or other thing of value” to a U.S. Mr. Trump will one day leave office. But by be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
election campaign by a foreign national. Ms. casting aside constitutional considerations and or emailed to wsj.ltrs@wsj.com. Please
Weintraub wants to expand “thing of value” to shedding even the appearance of impartiality, include your city and state. All letters
include information. Her draft rule states that bureaucrats like Ms. Weintraub are inflicting are subject to editing, and unpublished
“soliciting, accepting or receiving information serious damage to public confidence in U.S. in- letters can be neither acknowledged nor “Is it just me or
in connection with an election from a foreign na- stitutions that may last far longer. is ‘flatbread pizza” redundant?”
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Escalation From Beijing on Its National Day

By Jillian Kay Melchior Hong Kongers don’t buy it. They commissions to explore how Hong
believe only international pressure Kong can reform its police depart-

Hong Kong has prevented a massacre. They were ment or gradually work toward a
resident Xi Jinping wanted especially heartened when President more representative government.
Tuesday—Beijing’s Na- Trump told reporters in August that But no one braves water cannons,
tional Day—to be a celebra- “it would be very hard to deal” with rubber bullets and tear gas for lis-
tion of the 70th anniver- Beijing “if it’s another Tiananmen tening sessions or the dithering of
sary of communist China. Square” in Hong Kong. Wong Chun bureaucrats. And dialogue, like a
Instead, it marked an escalation in Wing, 20, told me he first regarded commission or special report, sets
violence against Hong Kong. For the Mr. Trump as crazy but has come to the expectation that the government
first time, police fired a live round at respect him because he stands up for will eventually address Hong
a protester, an 18-year-old student, human rights and challenges China. Kongers’ concerns. A disappointing
who suffered a chest wound. Mr. Wong doesn’t believe Hillary outcome would only exacerbate the
National Day had loomed for Clinton would have taken such a hard public discontent.
months as a potential milestone for line. Protesters now carry American Beijing and its pawns in the

the protest movement that has roiled flags as “a way to say thank you,” he Hong Kong government have tried
Hong Kong since June. Authorities said. to intimidate protesters with nonle-
wanted to quell the unrest before Oct. Emboldened by international sup- thal force and wait until their en-
1, while protesters strove to keep it port, Hong Kongers say they will ergy runs out. That strategy has
alive until then—and they prevailed. quit the streets only if the govern- failed, and Tuesday’s violence will
ment meets their “five demands, not Hong Kong police detain a protester Tuesday. add to the protesters’ momentum.
one less,” as the rallying cry goes. Against all odds, Hong Kongers suc-
As a live round wounds Beijing is afraid of conceding too to accede to the protesters’ remain- August Hong Kong’s Financial Secre- ceeded in defeating the extradition
much, lest mainland Chinese learn ing four demands—for free elections, tary Paul Chan announced a US$2.4 bill that presented an immediate
a Hong Kong protester, that demonstrations and disorder an independent inquiry into police vi- billion spending package, which in- threat to their autonomy, calling
there’s no obvious solution yield results. olence, official acknowledgment that cludes numerous handouts. In a New global attention to Beijing’s abuses
Hong Kong Chief Executive Carrie the protests aren’t riots, and amnesty York Times op-ed last week, Ms. Lam of power, and leaving Beijing with
to the political crisis. Lam acquiesced to one demand last for those who’ve been arrested. In- promised “bold initiatives to tackle no good way to end an embarrass-
month, agreeing to withdraw the ex- stead authorities are working to dis- deep-seated problems, such as access ing spectacle.
tradition bill that triggered the large- credit the protesters. While the vast to affordable housing,” along with The greatest threat to their suc-
Tuesday’s shooting will invigorate scale protests in June. “That invited majority have been peaceful, a mi- “numerous major projects and initia- cess may be the prospect of a U.S.-
the protests, and Beijing has no obvi- a lot of criticism in China,” said Fu nority have brawled with cops, tives . . . that will provide thousands of China trade deal. If Mr. Trump suc-
ous solution to this political crisis. King Wa, an associate professor at thrown Molotov cocktails or bricks, jobs and opportunities for young peo- ceeds in striking one, he may be less
In a video address Tuesday night, the University of Hong Kong who has started fires, and damaged property. ple to explore for years to come.” eager to take Beijing to task over
a police spokeswoman claimed that been tracking online discussion in Ms. Lam argues that giving them am- In another effort at appeasement, Hong Kong. The risk for protesters
protesters had attacked officers, one the mainland. “They take withdrawal nesty would “run counter to rule of Ms. Lam launched a series of “com- is that the world will lose interest
of whom fired “to save his own life of the bill as a major concession” and law.” munity dialogue sessions,” where the in the confrontation, emboldening
and his colleagues’ lives.” She added: question why the government would Following the lead of their main- public can vent concerns. Some in Beijing.
“The police do not wish to see any- “back down” in response “to a rioter land counterparts, Hong Kong authori- Hong Kong have speculated that
one injured in the incident. It is re- who created violence.” ties are also attempting to buy legiti- without directly addressing protest- Ms. Melchior is an editorial page
ally heart-breaking.” It would be even harder for Beijing macy with material blandishments. In ers’ demands, she may also establish writer at the Journal.

Ringmaster Rashida Tlaib Introduces the Impeachment Circus

President Trump the 2016 election or shown anything do so in response to an anonymous off Twitter was supposed to have best chance at defeating Mr. Trump.
had to know this but barely disguised contempt for whistleblower complaint about a caught up with him by now. But Mr. Elizabeth Warren is on Mr. Biden’s
was coming. Hours his administration and supporters. phone call between Mr. Trump and Trump has governed precisely as he heels, but he remains the front-run-
after Democrats All Ms. Tlaib did was shout out loud Ukrainian President Volodymyr Zel- campaigned while delivering eco- ner for the Democratic nomination
took control of the what others had been whispering. ensky smacks of desperation. The nomic growth, low unemployment both in national polls and in most
House in January, For Democrats, the question from contents of the phone conversation and higher wages. And his support- of the early-voting states. Impeach-
freshman Rep. the start has been when, not and the complaint are now in the ers don’t seek validation from CNN ment could change that. As my col-
Rashida Tlaib told a whether, to begin this fight. The public domain, and voters can de- and the Washington Post. Demo- league Kimberley Strassel wrote last
room full of pro- question Democrats now face is termine whether anything in them crats and the media want to obsess week, it will be difficult for Mr. Bi-
By Jason L.
gressives exactly whether they waited too long. over the president’s temperament, den to criticize the president’s deal-
what the new major- We’re 13 months out from the but his supporters weigh other fac- ings with Ukraine given that his son
ity intended to do. 2020 election, so why the rush? Big fun under the big tors as well. If voters are tired of Hunter is linked to the Ukrainian
“We’re gonna go in there and we’re Isn’t the opinion of voters more im- his style, they’ll let him know next gas company at the center of the
gonna impeach the motherf—.” She portant than that of House Demo- top as Democrats walk a November. scandal. Mr. Biden has a problem
wasn’t bluffing. crats? It’s true that support for a tightrope. But will there Democrats can take some reas- similar to Hillary Clinton’s in 2016,
Perhaps the president took com- formal impeachment inquiry has surance that Mr. Trump continues when she couldn’t draw attention to
fort in the fact that a few Demo- grown steadily among Democrats in be enough elephants? to poll in the low to mid-40s, which Mr. Trump’s tomcatting without
cratic Party elders, like Judiciary Congress. But Mrs. Pelosi has said is right around where he was poll- also drawing attention to her hus-
Committee Chairman Jerrold Na- in the past that any such process ing at the start of his presidency. band’s womanizing and her treat-
dler, distanced themselves from Ms. will lack legitimacy without biparti- should cost Mr. Trump a second But they also know that his job-ap- ment of his accusers.
Tlaib’s remarks. Or maybe Mr. san cooperation, which she doesn’t term. Democrats know they don’t proval rating today approximates Meanwhile, on Thursday Ms.
Trump believed Speaker Nancy have. When Congress decided to have the votes in the Republican- that of other recent presidents who Tlaib began hawking T-shirts that
Pelosi when she promised that Con- move forward with the Richard controlled Senate to remove Mr. went on to win second terms. Ac- read “Impeach the MF.” They sell
gress under her leadership “will be Nixon and Bill Clinton impeachment Trump from office. This is about cording to Gallup, at this point in for $29 and the money goes to her
transparent, bipartisan and unify- inquiries, the entire House voted the spectacle. It’s about roughing their presidencies, Bill Clinton was re-election campaign. Her home-
ing” and “will seek to reach across and both votes won large bipartisan up the president for next year’s at 46%, George W. Bush was at 51%, town newspaper, the Detroit Free
the aisle in this country, and across majorities. Mrs. Pelosi so far has re- campaign. and Barack Obama was at 41%. Mr. Press, said the stunt is “exactly the
divisions across our nation.” So fused to honor this precedent, per- Democrats never expected the Trump is now at 43%. sort of thing Donald Trump might
much for that. haps because she fears an over- Trump presidency to last this long. The impeachment inquiry puts do, if he were in Tlaib’s position.”
The plain truth is that Democrats whelmingly partisan result. He wasn’t supposed to survive the House Democrats from swing dis- Perhaps. Or maybe it’s an indication
have been itching for impeachment The Democrats’ decision to move porn-star hush-money scandal or tricts at risk, and making it about of how seriously Democrats expect
since Mr. Trump was inaugurated. forward with impeachment is born the Mueller report revelations. His Ukraine could also handicap Joe Bi- people to take this impeachment
They’ve never accepted the result of of frustration, not principle. And to relentlessly crude behavior on and den, who might be the Democrats’ circus.

To Make Banks Stable, End, Don’t Mend, the Repo Market

By Amar Bhidé esoteric explanations included a in the repo market routinely, not interact with factors that regulators such guarantees as an abhorrent

holiday in Japan, the “glut” of safe only during emergencies, and partic- cannot control—such as tax pay- elimination of market discipline. But
don’t understand how your assets overwhelming scarce cash re- ularly at the end of financial quar- ments, Japanese holidays and drone- there isn’t much market discipline to
‘repo’ market works,” a vet- serves, the Federal Reserve’s foreign- ters, when banks’ cash requirements and-missile strikes—to make the eliminate. Besides, we already have
eran Scandinavian banker tells repo program for non-U.S. lenders surge. repo market complex and unstable. a parallel system that shows banks
me. “There’s nothing like it at home; and central banks, and even the re- But does the repo market really Complexity tends to beget more can successfully access credit with-
our world is much simpler.” cent attack on Saudi oil facilities. warrant “constructive support” from complexity. Temporizing fixes would out providing collateral or detailed
Repo markets are like pawnbro- The risks of another credit col- regulators? Markets in physical com- only increase the repo market’s com- financial information to lenders—the
kers for banks. They provide no- lapse that surfaced last month modities provide valuable price sig- plexity and expand the power of in- fed-funds market. Banks lending to
questions-asked cash against pledged spurred forceful intervention by the nals: A rise in the price of tin encour- siders who claim to know what’s go- each other in that market trust that
collateral, typically Treasury bonds, Fed. For the first time since 2008, ages miners to increase production ing on. As we know from 2008, regulatory examination, the Fed’s
and serve as crucial conduits for the the central bank directly and repeat- and users to reduce consumption of byzantine complexity can cause fi- safety net, and whatever discipline
credit that banks need. Many finan- edly made repo loans. In response to the metal. But the Fed produces cash nancial systems to collapse. stock- and bond-holders might pro-
cial institutions routinely use repos criticism of the Fed’s failure to fore- as if out of thin air and requires Simplifying how banks borrow vide are sufficient to make the sys-
to secure overnight loans from see the problem, Chairman Jay Pow- banks to hold this cash through its would make the banking system more tem function properly except in
money-market funds and other insti- ell asserted that the Fed understood reserve requirements. Routine Fed resilient. The Fed could routinely offer times of acute stress.
tutions with surplus cash looking for repos as well as anyone and ob- examinations also encourage a ritual- unsecured short-term loans to banks Simple, explicit guarantees would
a safe return. Trouble in repo mar- served that market participants had istic charade that increases the vola- at its target fed-funds rate. Now, the reduce the complexity of short-term
kets can spill into the “fed-funds” also been surprised. New York Fed tility of repo borrowing: Every three Fed grudgingly lends at its “discount borrowing by banks. Banks would
market, another source of overnight Chief John Williams declared that months banks scramble for cash to rate” against eligible collateral gain more-stable funding, and all
cash for large banks. Credit problems the Fed was “consistently and con- pass end-of-quarter checks of their pledged by banks. Regulators could would benefit from a sounder bank-
can cripple the economy, as in 2008 structively supporting stability” in reserves. The Fed’s monetary policies also decouple overnight borrowing ing system. The way to prevent fu-
after repo markets imploded. repo markets. affect the availability of Treasury from collateral pledges by explicitly ture repo crises, as in Scandinavia, is
Analysts described last month’s Critics who assert that the repo bonds used as repo collateral. And guaranteeing all the short-term liabili- to make the market unnecessary.
spike in repo rates—from about 2% snafu marked an “unequivocal” regulators set the rules for the repo ties banks hold. To discourage over-
to 10% on Sept. 15—as “wild” and breakdown in the Fed’s control of market: Intraday borrowing, for in- borrowing, regulators could charge a Mr. Bhidé, a professor of business
“seismic,” sowing “shock and confu- monetary policy have demanded stance, is prohibited. guarantee fee, as the Federal Deposit at Tufts University, is author of “A
sion.” Some blamed high cash de- forceful and permanent changes in Fiat money, macromonetary poli- Insurance Corp. does. Call for Judgment: Sensible Finance
mand to pay estimated taxes and set- repo policy. Some bankers have ar- cies and bank reserve requirements Free-market purists might regard for a Dynamic Economy.”
tle Treasury bond auctions. More- gued that the Fed should intervene


Impeachment Isn’t Futile for the Left
Rupert Murdoch Robert Thomson
Executive Chairman, News Corp Chief Executive Officer, News Corp
By J.T. Young (with one independent). Two seats funding, personnel—all would bend

Matt Murray William Lewis
are vacant, so 217 votes are needed to the left’s liking.
Editor in Chief Chief Executive Officer and Publisher hy are Democrats pressing to impeach. Thirty-one Democrats For years the left has been an im-
Neal Lipschutz Karen Miller Pensiero DOW JONES MANAGEMENT: impeachment when the pos- hold districts Mr. Trump won in portant Democratic constituency, but
Deputy Editor in Chief Managing Editor Ramin Beheshti, Chief Technology Officer; sibility of getting 20 Republi- 2016. To get to 217 without Republi- it never entirely called the tune. It
Natalie Cerny, Chief Communications Officer;
Jason Anders, Chief News Editor; Kamilah Mitchell-Thomas, Chief People Officer; can Senate votes to convict President can help, at least 12 of those 31 could be used in triangulation. With
Thorold Barker, Europe; Elena Cherney, Coverage Edward Roussel, Chief Innovation Officer; Trump is so remote? Impeachment is would have to vote for impeachment. the establishment secure, the left had
Planning; Andrew Dowell, Asia; Alex Martin, Print Christina Van Tassell, Chief Financial Officer
& Writing; Michael W. Miller, Features & Weekend;
the left’s means of gaining control of The pressure to do so will be im- nowhere else to go. As much as those
Emma Moody, Standards; Shazna Nessa, Visuals; Kenneth Breen, Commercial; the Democratic Party—which is lib- mense, making it a defining vote. At on the left want to get rid of Mr.
Matthew Rose, Enterprise; Michael Siconolfi, Jason P. Conti, General Counsel; eral, but not as far left as many Re- a trial, Senate moderates would also Trump, they need control of the Dem-
Investigations; Louise Story, Strategy and Interim Tracy Corrigan, Chief Strategy Officer; publicans imagine. have to take a stand. ocratic Party more. He will be out of
Product & Technology; Nikki Waller, Live Frank Filippo, Print Products & Services;
Journalism; Stephen Wisnefski, Professional News Kristin Heitmann, Chief Commercial Officer; The impeachment probe not only Those who oppose impeachment office in a little more than five years,
Nancy McNeill, Corporate Sales; commits the party to ousting Mr. would risk a primary challenge from if not one. Seizing control of a major
Gerard Baker, Editor at Large Thomas San Filippo, Customer Service; Trump but forces moderate Demo- the left. Those who support it would party is a once-in-a-lifetime opportu-
Josh Stinchcomb, Advertising Sales;
Paul A. Gigot, Editor of the Editorial Page; Suzi Watford, Chief Marketing Officer; cratic lawmakers to join the left or endanger themselves in the general nity that would offer dividends for
Daniel Henninger, Deputy Editor, Editorial Page Jonathan Wright, International face its wrath. The focus on Ukraine election. Either way, the left wins by decades.
Barron’s Group: Almar Latour, Publisher could also cost Joe Biden the Demo- converting or purging moderates.
WALL STREET JOURNAL MANAGEMENT: Professional Information Business:
Joseph B. Vincent, Operations; Christopher Lloyd, Head;
cratic presidential nomination, clear- Controlling both the nominee and Mr. Young served under President
Larry L. Hoffman, Production Ingrid Verschuren, Deputy Head ing the way for one of their own, like the Democratic caucuses in Congress George W. Bush in the Office of Man-
EDITORIAL AND CORPORATE HEADQUARTERS: Elizabeth Warren or Bernie Sanders. would strengthen the left’s hand agement and Budget and Treasury
1211 Avenue of the Americas, New York, N.Y., 10036 Consider the congressional math. considerably, whether or not it was Department. He was a congressional
Telephone 1-800-DOWJONES
Democrats hold a 235-197 majority good for the party as a whole. Rules, staffer from 1987-2000.
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As part of the Overall Strategy for the Awarding of Petroleum Concessions in the period V. Terms of Reference for the offered blocks
2019-2025, approved by Presidential Decree 52/19 of 18th of February, the National Agency
of Petroleum, Gas and Biofuels (“ANPG”) of Angola, hereby announces, pursuant to the
provisions of Articles 6 and 7 of Presidential Decree 86/18 of 2nd of April, the opening of
the Bidding Process for the granting of new Oil Concessions of the following Blocks:

• Benguela Basin: Block 10.

• Namibe Basin: Blocks 11, 12, 13, 27, 28, 29, 41, 42 and 43.

For each of the above-mentioned Blocks, the submission of proposals must comply with the
following requirements:


1. Bids must be written in Portuguese language or, if submitted in another language, must
be accompanied by an official translation in Portuguese;

2. Bids must indicate the bidder’s wish to be an operator or a non-operator, as well as the
pursued working interest in the block(s) in which it is bidding;

3. The agreement to be entered into by the National Concessionaire (i.e. ANPG) and its
associates shall be a Production-Sharing Agreement (“PSA”). It should be noted that, by
submitting bids, the bidder undertakes to accept the terms described in the model PSA
available on ANPG’s website (www.anpg.co.ao). Nonetheless, the right to negotiate
items subject to bidding will be safeguarded;

4. Concession areas offered in the bidding round are included in the maps available on
ANPG´s website;

5. Small, medium or large-sized companies, either national or foreign, may bid individual-
ly or through a Consortium;

6. In case of submission of a bid through a Consortium, each of the companies comprising

the Consortium will be assessed individually for the purposes of their qualification;

7. All templates reproduced herein will be available on ANPG’s website (www.anpg.co.ao);

8. Bids must be submitted by 5:30 pm Luanda time (GMT+1) on the 12th of November 2019, in a
closed and sealed envelope. All proposals handed over after such date will be deemed null and

9. All bids must be sent to the following address:

Edifício Torres do Carmo – Torre 2

Rua Lopes de Lima, Município de Luanda
Luanda - República de Angola
Tel.: 226 428 577
Att.: Paulino Jerónimo, Chairman of ANPG
Ref.: Proposta - Ronda de Licitações 2019

10. Companies must deliver all bids directly to the office of the Director of Negotiation on
the 5th floor at the above-mentioned address.

All bids will be opened in a Public Session to be held on the 13th of November 2019, at a
time and location to be announced in due course.



Bidders intending to undertake the role of Non-Operator shall prove its good reputation and
financial strength by providing the following information:

a) Company´s name;
b) Place of incorporation, registration and address of its headquarters;
c) Main activities carried out;
d) Detailed information on its equity structure, namely, the amounts of owner´s equity,
current and fixed assets, as well as liabilities;
e) Comfort letter from reputable banking institutions, which accredits for its financial
f) Annual reports of the activity carried out, including the Balance Sheet and accounts
for the last 3 (three) years, or since its incorporation, if the company was incorpo-
rated in less than 3 (three) years, audited by an independent and reputable auditing
g) Detailed information regarding experience in exploration and production of hydro-
carbons, including details of reserves and production;
h) Number of employees and professional experience of the management personnel in
the area exploration and production of hydrocarbons;
i) Detailed information on the judicial and arbitration proceedings brought against the
company, in the last 5 (five) years (Statement of Responsibility);
j) Detailed information on anticipated plans, future obligations, including work pro-
grams or risks that may impact its ability to fulfill the work program which may be
set out for the Angolan concessions of which it may form part of;
k) Detailed information on the business activity carried out in Angola up to the date of
the submission of the application (if applicable).



Bidders intending to undertake the role of an Operator must, in addition to presenting the
information referred to in the Non-Operator’s requirements, prove the possession of follow-
ing requirements:

a) Competence and experience in the management and execution of petroleum opera-

b) Technical and operational competence;
c) Efficient organizational structure;
d) Information showing evidence of experience in carrying out petroleum operations
that the company deems relevant to enhance its application, namely with respect to
safety, environmental protection, pollution prevention and employment, integration
and where relevant, training of Angolan personnel.

Additionally, Companies must provide evidence of the following:

a) Demonstrate a Quality, Health, Safety and Environment Policy that shows commit-
ment to Prevention of Health injury, Prevention of Environmental Pollution, Protec-
tion of Heritage and continuous improvement;
b) Comply with applicable laws and regulations;
c) Demonstrate that its employees have the necessary skills to ensure compliance with
the Quality, Health, Safety and Environment aspects;
d) Demonstrate the mechanisms applied for HSE risks assessment and management;
e) Highlight the use of methodologies that eliminate the causes of nonconformities in
order to avoid repetition and eliminate the causes of potential nonconformities;
f) Demonstrate competence to implement and sustain Quality, Health, Safety and Envi-
ronment Management Systems in oil and gas exploration and production operations;
g) Present the methods to be employed for control and emergency response and oil
spill control;
h) Present Management Indicators of the last 6 (six) months and the mechanisms to be
used to assess Quality, Health, Safety and Environment performance.
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© 2019 Dow Jones & Company. All Rights Reserved. * * * * ** THE WALL STREET JOURNAL. Wednesday, October 2, 2019 | B1

S&P 2940.25 g 1.23% S&P FIN g 2.08% S&P IT g 0.85% DJ TRANS g 2.35% WSJ $ IDX g 0.05% LIBOR 3M 2.089 NIKKEI (Midday) 21742.70 g 0.65% See more at WSJ.com/Markets

Schwab Strikes Blow in Broker Price War

Company rattles tomers—rattled online brokers for many funds offered on their Brokers Group Inc.—which set lators in 1975 abolished fixed follow Schwab’s lead. “There is
that have been squeezed by in- platforms, and financial advice, the stage for Schwab’s price trading commissions—blowing no way to sugar coat this devel-
industry by cutting vestors’ expectation that fees which some digital advisers are move last week when it an- up a decadesold system—he opment,” analysts at Wells
fees for online stock for financial services should be offering free of management nounced plans to launch a zero- launched one of the first dis- Fargo said in a research note.
low or even nonexistent. Shares fees. commission stock-trading ser- count brokerages and took on “We were hoping the challeng-
trades to zero of larger banks and brokerages “There are certain parts of vice—fell 9.4%. Wall Street with ever-declining ing macro environment (i.e. de-
also declined as the Dow Jones finance that have become com- After the close of trading fees. clining interest rates) would
BY ALEXANDER OSIPOVICH Industrial Average dropped moditized,” said Devin Ryan, an Tuesday, TD Ameritrade said it, This year, e-brokers and prevent the industry from com-
AND LISA BEILFUSS 1.3% on concerns about a wors- analyst at JMP Securities LLC. too, would cut online trading Wall Street trading desks have peting on price like this, but
ening U.S. economic outlook. “Trading is one of them.” commissions to zero. TD Amer- been hurting because of falling that is clearly not what is hap-
Charles Schwab Corp. said Digital upstarts such as Rob- Shares of TD Ameritrade itrade said it expects the loss of stock-trading volumes, as con- pening.”
it would eliminate commissions inhood Markets Inc. helped Holding Corp. plummeted 26% commissions to wipe out $220 cerns over slowing economic Schwab may be better posi-
on online stock trades, one of popularize the zero-commis- in their biggest one-day per- million to $240 million in quar- growth have made investors tioned to weather the storm.
most dramatic moves yet in a sion model in the online-bro- centage decrease since 1999. terly revenue, or 15% to 16% of more cautious. Interest-rate Compared with its rivals, it is
broad-based price war that is kerage business. But the race to E*Trade Financial Corp. its top line. cuts by the Federal Reserve more reliant on its banking arm
crimping profitability across zero is also happening in other dropped 16%, and Schwab fell Eliminating trading commis- have dealt another blow, by and less dependent on commis-
the financial sector. areas of finance, like asset 9.7%. The three firms’ declines sions is the latest step in a long cutting into e-brokers’ ability to Please turn to page B5
The move by Schwab—the management, where Vanguard wiped out more than $13 billion road for Schwab, founded by collect interest on clients’ cash.
largest publicly traded e-broker, Group and Fidelity Invest- in aggregate market value. Charles Schwab to bring invest- Analysts warned other on-  Heard on Street: Free trades
with 12 million brokerage cus- ments recently eliminated fees Another rival, Interactive ing to the masses. When regu- line brokers would be forced to won’t kill online brokers.... B14

Oil Loses Gains Since Saudi Attack Facebook’s Backers

1.4 million barrels a day
Recent cuts to projections for the world’s
consumption of oil amid trade tensions
Of Libra Reconsider
continue to weigh on the energy sector. Their Involvement
Monthly estimates for global oil-demand growth in 2019 BY ANNAMARIA ANDRIOTIS a network of financial partners
AND PETER RUDEGEAIR that could help transfer cur-
rencies into Libra and global
Cracks are forming in the retailers to accept it as a form
coalition Facebook Inc. assem- of payment, Libra’s reach
bled to build a global crypto- would be limited.
currency-based payments net- When it unveiled the proj-
1.2 work. ect in June, Facebook said Li-
Jan. Sept. Visa Inc., Mastercard Inc. bra could change the entire fi-
and other financial partners nancial system, giving
that signed on to help build consumers a new way to move
and maintain the Libra pay- money across borders. The
Shares of energy companies Oil prices are well below their ments network are reconsider- project’s backers saw the pay-
have long trailed the market. recent peaks. 1.1 ing their involvement follow- ments-network effort as a
ing a backlash from U.S. and long-shot way to profit on
Energy sector S&P 500 U.S. crude performance European government offi- Facebook’s 2.4 billion monthly
40% $80 a barrel cials, according to people fa-
Hedge funds and other
miliar with the matter.
speculative investors lowered
Wary of attracting regula-
net bets on higher oil prices.
tory scrutiny, executives of
Executives of some
20 70 Weekly net bullish bets on U.S. crude some of Libra’s backers have partners declined
declined Facebook’s requests
300,000 contracts
to publicly support the project,
requests to publicly
0 60 the people said. support the project.
200,000 Their reluctance has Face-
book scrambling to keep Libra
on track. Policy executives
–20 50
100,000 from Libra’s more than two active users.
dozen backers—a group called After watching popular so-
the Libra Association—have cial-media company Tencent
–40 40 Front-month futures 0 been summoned to a meeting Holdings Ltd. come to domi-
2017 ’18 ’19 2017 ’18 ’19 Jan. Sept. in Washington, D.C., on Thurs- nate the market for Chinese
day, according to people famil- digital payments with WeChat
Sources: International Energy Agency and Organization of the Petroleum Exporting Countries (demand); FactSet (index performance, price); Commodity Futures Trading Commission (bets) iar with the matter. Pay, some payments compa-
On Oct. 14, representatives nies agreed to take part in Li-
BY AMRITH RAMKUMAR weak demand could herald a than a decade in September— to start the week on oversupply from the companies are slated bra to avoid missing out on
AND SARAH TOY broad economic slowdown that the latest downbeat gauge of worries. to meet in Geneva to review a the next big thing.
would offset some of those factory activity. Fears that the Brent crude, the global charter for the Libra Associa- Facebook, which worked in
Oil has erased all of the rally benefits. weakness could spread to other gauge of prices, surged 15% in tion and appoint a board of di- secret for more than a year to
that followed recent disrup- The recent slide is the latest sectors pushed down stocks its biggest one-day gain ever rectors, according to a memo develop Libra, has broad ambi-
tions to Saudi Arabian output, setback for global energy com- and sent investors to the safety following Sept. 14 attacks on reviewed by The Wall Street tions for the project as part of
indicating how a darkening panies, many of which are try- of bonds and gold, pushing the Saudi Arabian oil facilities. It Journal. a shift away from its nearly
outlook for global growth con- ing to limit output to support yield on the benchmark 10-year has since dropped back below Major defections could im- complete reliance on targeted
tinues to tamp down fuel the price of crude and their U.S. Treasury note down to $60 a barrel—well below the peril Libra, Facebook’s attempt advertising. Facebook Chief
prices. flagging shares. 1.651% from 1.723% earlier in levels analysts say are needed to persuade consumers to Executive Mark Zuckerberg is
While lower costs at the The Institute for Supply the day. Yields fall as prices for the kingdom and other swap their national currencies steering the social-media com-
pump and a drop in heating Management on Tuesday said rise. large producers to support for a digital coin that could be pany to more private and en-
bills could benefit consumers its U.S. manufacturing index Oil edged lower Tuesday, ex- their economies. U.S. crude has used to pay for goods and ser- crypted communications, and
around the world, analysts say fell to its lowest level in more tending declines after tumbling Please turn to page B13 vices on the internet. Without Please turn to page B4

INSIDE Credit Suisse Says WeWork Set to Call Retreat in China Expansion

Operating Chief Alone

Ordered Surveillance
BY JENNY STRASBURG Mr. Khan. He said surveillance

AND MARGOT PATRICK isn’t a standard practice for

Credit Suisse and can’t be con-
A probe ordered by Credit doned. Another board member
Suisse Group AG cleared Chief who oversaw the review, John
Executive Tidjane Thiam of in- Tiner, called the surveillance a
volvement in a spy scandal “highly unusual and irregular
that has enveloped the bank, act.”
BUSINESS and laid primary blame for the Mr. Rohner rejected the no-
Bayer bows affair on a close deputy, who tion, posed by a journalist,
resigned. that the recent events showed
to investors The bank said Chief Operat- deeper problems at Credit
with new board ing Officer Pierre-Olivier Suisse.
appointment B5 Bouée, who was part of Mr. “I do not believe that we
Thiam’s inner circle, resigned have a problem with our com- PULLBACK: The shared-workspace company has struggled to make money in the country. B6
after the probe found he or- pany culture,” Mr. Rohner
dered the surveillance of the said, adding that Mr. Thiam
bank’s former wealth-manage- maintains the full support of
ment chief, Iqbal Khan, with-
out discussing it with Mr.
Thiam or other senior bank of-
the board.
The scandal took a dark
turn Monday, when a lawyer in
Switzerland said that an un-
J&J Settles Ohio Opioid Suits
Credit Suisse also said it
found no evidence Mr. Khan
made any attempt to poach
identified security consultant
who helped the bank hire in-
vestigators to trail Mr. Khan
Seen as Bellwether for Others
employees or clients, contrary died last week in an apparent BY SARA RANDAZZO slated to begin this month in continues to seek meaningful
to suspicions that people close suicide. federal court in Cleveland. The progress in addressing the na-
to the bank had described as Mr. Rohner on Tuesday Johnson & Johnson said it trial is considered a bell- tion’s opioid crisis.”
underpinning the surveillance. confirmed the person’s death has agreed to a $20.4 million wether for thousands of opi- The deal, which includes no
FINANCE He started work at rival UBS and expressed the bank’s con- deal to avoid a trial accusing oid-related lawsuits that mu- admission of liability, still
Wisconsin is famous Group AG on Tuesday. dolences. the company of helping spark nicipalities and states have leaves J&J facing hundreds of
Credit Suisse Chairman Urs A lawyer from Swiss law an opioid-addiction crisis in filed against drugmakers. other opioid lawsuits.
for its lakes, Rohner told reporters Tuesday firm Homburger who super- two Ohio counties. The company said Tuesday The two Ohio counties be-
cheese and lately… that there was “zero evidence” vised the investigation, Flavio The settlement makes J&J the settlement allows it “to hind the lawsuit, Cuyahoga
risky bonds B12 that Mr. Thiam had been in- Romerio, told reporters Tues- the fourth drugmaker to reach avoid the resource demands and Summit, are home to cit-
volved in the operation to tail Please turn to page B5 such a deal ahead of the trial, and uncertainty of a trial as it Please turn to page B2
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B2 | Wednesday, October 2, 2019 * ***** THE WALL STREET JOURNAL.


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 F International.............B3
Air France-KLM.........B14 Facebook................B1,B4 Pinterest ................... B14
Alitalia.......................B14 Fastly.........................B14 R
Allergan.......................B2 Fidelity Investments..B1 Refinery29...................B4
Altria Group................B3 Ford Motor..................B2 Robinhood Financial ... B1
Amazon.com..........B5,B6 G
American Airlines.....B14 S
AmerisourceBergen....B2 General Motors ... B2,B14 Saudi Arabian Oil.......A2
Apollo Global GOL Linhas Aereas Shutterfly....................B4
Management.............B4 Inteligentes. ........... B14 Snapfish......................B4
Apple...........................A2 GPM Municipal Advisors Stripe...........................B4
Arrowhead Engineered
Grupo Aeromexico ...B14
TD Ameritrade Holding
AT&T............................A3 H
B1,B13, B13
B Honda Motor...............B2 Tokyo Electric Power
Barclays.......................B4 I Holdings..................B12
Bayer...........................B5 Interactive Brokers Toyota Motor..............B2
Beyond Meat.............B14 Group.........................B1 U
Big River Steel ........... B3
J UBS Group...................B1
Boeing ....................... B14 Johnson & Johnson....B1 United Airlines Holdings
Juul Labs.....................B3 B14
C United Parcel Service.B4
Cardinal Health...........B2 United States Steel....B3
Charles Schwab Koch Minerals.............B3
Korean Air Lines.......B14 V
China Eastern Airlines L Vanguard Group..........B1
B14 Verizon Communications
Latam Airlines Group A3
Citadel Securities.......B5 B14
Citigroup......................B4 Vice Media..................B4
Liberty Mutual Group.B5 Virgin Atlantic..........B14
CogitAI ........................ B5


Comcast ...................... A3 M Virgin Australia
Continental Resources Mahindra & Mahindra B2 Holdings..................B14
B13 Mallinckrodt................B2 Virtu Financial............B5
CoStar Group .............. B6 Mastercard..................B1 Visa..............................B1
Credit Suisse Group ... B1 McKesson....................B2 W
D Morningstar................B5
Walgreens Boots
Delta Air Lines ......... B14 N Alliance.....................B2
Denver Great Hall.....B12 Nike.............................A2 We...............................B6
Diamondback Energy B13 Nissan Motor..............B2 WestJet Airlines ...... B14
Endo International......B2 PayPal Holdings..........B4 Zoom Video
EOG Resources ......... B13 Peloton Interactive...B14 Communications.....B14 Joint-venture partner Mahindra will offer expertise in low-cost engineering. A Mahindra assembly line last year.
E*Trade FinancialB1,B13 Philip Morris Zscaler.......................B14

INDEX TO PEOPLE Ford Retrenches With India Deal

B G-H Ozden, Omer...............B6 AND PATRICK THOMAS Japanese Makers sold 169,656 vehicles in its lat- lower than the past few years.
Bastian, Ed................B14 Gallucci, Frank.............B2 Parker, Mark...............A2 est month, a decrease of nearly Rising car prices and higher in-
C Guyger, Amber............A3 R Ford Motor Co. said it will Stumble in the U.S. 17% on a volume basis and a terest rates dulled demand in
Hamm, Harold...........B13 transfer most of its operations decline of 9% on a daily selling the first six months of 2019.
Cousin, Ertharin..........B5 Ryan, Devin.................B1
Hite, Amanda..............B6 in India to Mahindra & Ma- rate, compared with the same Detroit auto makers General
Crosthwaite, K.C.........B3 S
Hooper, Kristina........B13 hindra Ltd. as part of a joint Major Japanese auto mak- period a year earlier. Analysts Motors Co. and Ford Motor Co.,
Cueto, Enrique..........B14
J Salazar, Alberto..........A2 venture with the Indian auto ers reported a drop in U.S. vehi- at Edmunds had expected the as well as Fiat Chrysler Auto-
D Samuels, Chuck ........ B12 maker, the latest example of cle sales for September as the company to sell 180,595 vehi- mobiles NV, recently ended
Jean, Botham ............. A3
Day, Kim....................B12 Simko, Sean..............B13 auto makers pooling resources American car market’s historic cles for the month. their long-term practice of re-
Jong, Kim....................A7
Disparte, Dante .......... B4 and reducing exposure to chal- run tapers off. Honda reported its U.S. porting monthly U.S. sales
Dittes, Terry................B2 lenging markets. Toyota Motor Corp., Nissan sales fell 14% to 113,925 vehi- numbers, although most major
Mayor, Regina...........B13 Tran, Michael............B13 The Dearborn, Mich., auto Motor Co. and Honda Motor cles, below the roughly 120,000 car companies still disclose the
Meir, Edward.............B13 W maker has struggled to earn Co. all posted double-digit-per- that analysts were expecting. results each month. The com-
Ebeling, Thomas.........B5
Morgan, Daniel ......... B13
Wenning, Werner ....... B5
money in India, where its mar- centage sales declines from a Nissan said its U.S. sales de- panies now report their U.S.
F Muguruma, Naomi......A7 ket share remains below 5%, year earlier. clined 18%, slightly better than sales quarterly.
Fabian, Matt ............. B12 Murillo, Joe.................B3 Z and pricing pressure on the Two fewer selling days and the 20% drop that was ex- Car prices have been rising
Farley, Jim...................B2 Neumann, Adam.........B6 Zuckerberg, Mark ....... B1 cars it sells there keeps profit an early Labor Day holiday pected. Nissan’s falling sales rapidly as new technological
margins slim. were expected to slow down come as it searches for a new and safety features, such as
The joint venture will en- auto sales, but the decline was chief executive. larger and more sophisticated

J&J Settles for trial “to hold the remain-

ing opioid makers and distrib-
utors accountable for fueling
able Ford, which has been
making cars in India for more
than two decades, to remain in
greater than industry analysts
had expected.
Toyota said Tuesday that it
U.S. vehicle sales this year
are projected to be 17.1 million,
according to Edmunds, slightly
multimedia displays, have made
basic cars more expensive.
—Patrick Thomas

Opioid the crisis that has led to thou-

sands of deaths in Ohio and
across the country.”
a country that has growth po-
tential without having to
shoulder the full cost burden Farley said. hauling Ford’s overseas opera- has made over the past several

Lawsuits Drugmaker Mallinckrodt

PLC completed a $30 million
deal this week with Cuyahoga
of developing new models.
Ford said the joint venture
will design and build vehicles
There has been a prolifera-
tion of strategic tie-ups among
major car companies in recent
tions, under a plan to boost
overall profitability by steer-
ing investment toward more-
years under Chief Executive
Mary Barra. GM has left Rus-
sia and several Asian markets,
and Summit counties. Endo for Ford and Mahindra in India years, driven by their pressing profitable parts of the auto and ended sales in India. It
Continued from page B1 International PLC had previ- and serve as an export hub to need to invest capital in elec- maker, such as its North also sold its European busi-
ies including Cleveland and ously agreed to pay the coun- North America, Europe and tric cars, in-vehicle connectiv- American truck portfolio. ness in 2017.
Akron that have been hard hit ties $10 million, while Aller- other regions. The company ity and other budding technol- In markets where Ford has Ford said its decision to re-
by the opioid crisis. gan PLC had agreed to pay $5 said the move will also add ogies with an uncertain payoff. struggled to turn a profit or main in India through the joint
As in thousands of other million to avoid the trial. scale by gaining access to Ma- The auto industry also faces build sizable market share, it venture was based on growth
opioid-related lawsuits filed The litigation has weighed hindra’s Indian supply base slowing sales in key markets expectations for the market
by local and state govern- on J&J, of New Brunswick, N.J. and leveraging its expertise in such as China, Europe and the and its strategic importance as
ments, the counties accused The company lost the first low-cost engineering. U.S. after a long period of an export hub.
A new joint venture
c F

J&J and other companies of opioid case to go to trial, in Each auto maker will con- growth, putting pressure on Ford exports its EcoSport
contributing to widespread Oklahoma. tinue to sell vehicles under auto executives to find more will develop vehicles small sport-utility vehicle
addiction through aggressive A state court judge there their respective brands in In- cost savings. from India to the U.S. and
marketing practices and lax ordered the pharmaceutical dia, where combined they have Under Chief Executive Jim
for export to other developed markets. Ma-
distribution policies. and consumer-products com- a 14% market share, the com- Hackett, Ford has struck many emerging markets. hindra’s engineering expertise
J&J said Tuesday the com- pany to pay $572 million for panies said. partnerships with car compa- in emerging-market vehicles
pany is “open to identifying an contributing to the state’s opi- Ford will use Mahindra’s nies, technology firms and will help Ford develop low-
appropriate, comprehensive oid crisis. The company is ap- engineering approach to de- startups to spread costs and cost SUVs for export to emerg-
resolution of the overall opioid pealing the verdict. velop vehicles for export to access technology. This year, has reduced its presence or ing markets, Mr. Farley said.
litigation” but is also prepared The Ohio trial is now shap- emerging markets, including Ford formed an alliance with exited entirely. Last spring, Mahindra will own 51% of
to defend its marketing and ing up to focus mostly on the Southeast Asia and Africa, Jim Volkswagen AG to co-develop Ford ended production and the venture and Ford 49%. The

other actions. companies that distribute Farley, Ford’s president of new commercial and electric vehi- sales in Russia. The company companies value the venture
Attorneys for the two coun- drugs. business, technology and cles and work together on au- also is in the midst of selling at $275 million.
ties said the settlement pro- Companies still included in strategy, said in an interview. tonomous cars. Ford also is or closing several plants in Ford expects to book an
vides urgently needed funds the case as of Tuesday include The joint-venture structure working on an electric vehicle Western Europe, narrowing its $800 million to $900 million

for programs like those to AmerisourceBergen Corp., will reduce Ford’s expenses with Rivian Automotive, an focus mostly to larger vehicles noncash charge related to the
treat babies born to opioid-ad- McKesson Corp., Cardinal while increasing scale in India, electric-truck startup based in for commercial buyers. establishment of the joint ven-
dicted mothers. The lawyers Health Inc. and Walgreens where the auto maker turned the Detroit area. The moves are similar to ture in the third quarter, the
said they continue to prepare Boots Alliance Inc. a small profit last year, Mr. Mr. Hackett has been over- ones rival General Motors Co. company said Tuesday.

GM Idles Mexico Truck Plant Amid Strike 320 Park avenue, new York, nY 10022-6839
Notice of Nomination of Directors
BY MIKE COLIAS resulting in customers having In accordance with Section 4210 of the Insurance Law of the State of
to wait for service work. New York and Regulation 14-A of the Insurance Regulations of the
General Motors Co. said a The shutdown in Mexico State of New York, notice is hereby given that the Board of Directors
parts shortage stemming from means GM isn’t currently of Mutual of America Life Insurance Company has nominated the
following named persons as candidates for election as Directors in
a United Auto Workers strike building any pickup trucks, a the class designated to serve until the election in 2023 or until their
in the U.S. led it to idle a situation that could signifi- respective successors have been duly elected.
pickup-truck factory in Mexico, cantly dent earnings the longer
Rosemary T. Berkery
cutting off the supply of GM’s the strike drags on. GM makes Chairman and CEO (Retired)
most-profitable vehicles and versions of its Chevrolet Sil- UBS Bank USA
further threatening to dent its verado and GMC Sierra pickup New York, New York
bottom line. trucks at the Mexico plant. John R. Greed
GM has temporarily let go Those models are GM’s top- Chairman, President and Chief Executive Officer
about 6,000 workers at its selling U.S. vehicles and gener- Mutual of America Life Insurance Company

truck plant in Silao, Mexico, ate the bulk of the company’s New York, New York
along with a transmission plant global profit, analysts estimate. Amir Lear
nearby, a company spokesman GM also makes those trucks Chairman and Chief Executive Officer
confirmed. The auto maker at factories in Indiana and Mutual of America Capital Management LLC
closed the facilities because Michigan, which have been New York, New York
parts shipments from the U.S., idled for more than two weeks Connie Mack (Former U.S. Senator-FL)
where factory workers remain after some 46,000 full-time Chairman Emeritus
on strike, have dried up, he With a parts shortage, the company can no longer make pickups. workers went on strike after a H. Lee Moffitt Cancer Center
said. Those affected by the four-year contract expired. Tampa, Florida
work stoppage will get some owned parts warehouses and union’s demands. The UAW re- The lost production from Robert J. McGuire, Esq.
pay or take vacation while the distribution centers also sponded with a counterpro- the strike so far hasn’t led to a New York, New York
plant is idled, he said. staffed with UAW-represented posal Tuesday, Mr. Dittes said. shortage of trucks or other ve- A certificate of nomination of the above candidates has been duly filed
The move is the latest sign workers. Contract talks be- GM said: “We continue to hicles at GM showrooms, deal- with the New York State Department of Financial Services.
that the strike is having a tween GM and the UAW contin- negotiate and exchange pro- ers have said. The election of Directors of Mutual of America Life Insurance Company
broader ripple effect on the ued Tuesday but the two sides posals.” But the strike has been a di- will be held at the Home Office, 320 Park Avenue, New York, New York,
company’s North American op- are still far apart on resolving Large parts suppliers have rect hit to GM’s profit, because on Thursday, April 23, 2020, from 10:00 a.m. to 4:00 p.m. Policyholders
erations and the auto-parts their differences. suffered from the work stop- auto makers book revenue whose policies or contracts are in force on the date of the election and
suppliers and firms dependent In a letter to members Tues- page at GM, with some facing a when vehicles are shipped to have been in force at least one year prior thereto are entitled to vote in
person or by mail, by proxy or by ballot.
on GM’s U.S. factory production day, UAW Vice President Terry weekly hit to the bottom line of dealerships. Analysts had esti-
for business. Dittes, the union’s lead bar- more than $10 million a week, mated the strike was costing Scott H. Rothstein
The strike, which began 16 gainer with GM, said the com- JPMorgan Chase & Co. said in a GM $50 million to $100 million Executive Vice President,
Deputy General Counsel
days ago, has halted manufac- pany made a comprehensive research note Tuesday. a day before the Mexican truck and Interim Corporate Secretary
turing lines at more than 30 proposal for a new labor agree- GM dealers are scrambling plant was idled.
GM factories in the U.S. and ment Monday night but the of- to find parts to fix vehicles and —Nora Naughton October 2, 2019
suspended work at company- fer still failed to meet the perform regular maintenance, contributed to this article.
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Juul Taps Altria

Executive to Lead
Regulatory Efforts
BY JENNIFER MALONEY Juul is combining its scien-
tific and clinical affairs with
Juul Labs Inc. is bringing regulatory affairs under Mr.
over a second high-ranking ex- Murillo.
ecutive from Marlboro maker Mr. Murillo understands
Altria Group Inc. as the vap- well the FDA application pro-
ing startup attempts to repair cess that Juul must navigate
its damaged relationship with and will help the company
regulators amid a rise in teen work with regulators and pol-


vaping. icy makers to earn their trust,
Joe Murillo, who headed Mr. Crosthwaite said in a
regulatory affairs for Altria statement.
and previously ran the tobacco “We invite an open dia-
company’s e-cigarette busi- logue, will listen to others and
ness, is now Juul’s chief regu- will be responsive to their
latory officer, according to an concerns,” Mr. Crosthwaite
internal memo sent Tuesday added.
to staff. Blamed for a surge in vap-
Most important, the 24- ing among young people, Juul The agreement involves paying $700 million for a nearly 50% stake in Big River Steel. The industrial giant’s plant in Illinois.
is the subject of several inves-

U.S. Steel Bids for Efficiency

tigations, including a criminal
probe by federal prosecutors
Joe Murillo is the in California, The Wall Street
first big hire made Journal recently reported. The
San Francisco-based company
by the startup’s new
chief executive.
also faces investigations by
the FDA, the Federal Trade
Commission and several state
attorneys general into its mar-
keting practices.
By Investing in Young Rival
year Altria veteran will shep- Juul has tried over the past BY BOB TITA steel from melting iron ore in past 15 years. The Pittsburgh- the past year, though, as man-
herd the applications that Juul year to position itself as a re- a coal-fired blast furnace, is based company has a union- ufacturers’ demand for steel
must submit by May to the sponsible actor. U.S. Steel Corp. said it one of the highest-cost steel ized workforce and reputation waned, making it more diffi-
Food and Drug Administration The company overhauled its would acquire a stake in Big producers in the U.S. Execu- for a bulky management struc- cult for U.S. Steel to make a
for any products it wants to marketing, halted retail-store River Steel, forging a partner- tives are attempting to lower ture, whereas Big River isn’t profit with its high-cost struc-
keep on the market beyond sales of its fruity-flavored ship with a lower-cost rival production costs with invest- unionized and is regarded as ture and pushing it to pursue a
that point. products that are appealing to that has threatened its core ments in a new rolling line at having a nimble management lower-cost partner.
Mr. Murillo is the first big young people and introduced business. its Mon Valley Works near team. Big River is doubling capac-
hire made by Juul’s new chief an electronic age-verification U.S. Steel agreed to pay Pittsburgh and the construc- Mr. Burritt said in an inter- ity of its Osceola mill along the
executive, K.C. Crosthwaite, system to curb illegal sales to $700 million in cash for a tion of an electric furnace at view that Big River’s manage- Mississippi River to 3.3 million
who himself moved over from minors. 49.9% stake in Arkansas-based its mill in Fairfield, Ala. ment team will remain in tons of steel a year. Mr. Burritt
Altria last week to take the But Juul’s deal with Altria, Big River, with an option to “Big River helps us get place. He said U.S. Steel’s large said Big River will extend U.S.
helm of the startup. Juul faces and its intense White House take full ownership within four where we’re going faster,” U.S. presence in the steel industry Steel’s reach into the South
a proposed U.S. ban on most lobbying, angered officials at years. Big River, which began Steel Chief Executive David will help Big River’s business and Southwest regions, where
of its products and cited the the FDA. operating in 2017, gives U.S. Burritt said Tuesday on a con- development in the coming Steel Dynamics and Nucor
need to focus on regulatory A lawyer by training, Mr. Steel access to the technology ference call. years as U.S. Steel moves to- have been expanding.
matters for the leadership Murillo joined Altria in 1995. and know-how for producing Big River, backed by Koch ward full ownership. Mr. Burritt said U.S. Steel
shift. He led the tobacco giant’s e- sheet steel by melting scrap in Minerals LLC, makes high- Big River began operating will continue with the upgrade
Altria last year invested cigarette business, Nu Mark, an electric furnace. strength, lightweight sheet just as the U.S. steel market of the rolling mill at Mon Val-
$12.8 billion for a 35% stake in before Altria pulled its e-ciga- Big River’s mill in Osceola, steel for the automotive indus- began rebounding. Tariffs im- ley Works that is expected to
Juul. The deal gave the to- rettes off the market as part Ark., is one of the newest and try, a market that U.S. Steel posed on imported steel in cost at least $1 billion. As a re-
bacco company seats on Juul’s of its deal with Juul. most efficient in the U.S. The has invested in heavily to March 2018 drove prices sult of the Big River deal, the
board that are pending an an- Mr. Murillo also developed deal is expected to help U.S. counter a trend toward using higher, prompting domestic steelmaker said it is scaling
titrust review. regulatory strategies for a Steel compete against such ri- aluminum in auto bodies. steel producers to embark on back about $250 million in im-
Mr. Crosthwaite last week heat-not-burn tobacco device vals as Nucor Corp. and Steel The integration of Big River plant expansions slated to add provements at its mills that
told his new staff that his ap- called IQOS that Altria is Dynamics Inc. that use electric would pose a significant chal- more than 10 million tons of were part of a $2 billion asset-
pointment wasn’t a sign that launching in the U.S. with furnaces to turn scrap steel lenge for executives at U.S. flat-rolled steel to the domes- revitalization strategy launched
the Marlboro maker was tak- partner Philip Morris Inter- into new product. Steel, which has struggled with tic market. two years ago and that is now
ing over. national Inc. U.S. Steel, which makes acquisitions made over the Prices have fallen sharply in nearly 60% completed.




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B4 | Wednesday, October 2, 2019 * *** THE WALL STREET JOURNAL.


Vice Media Nears Deal for Refinery29

Media startups have book Inc. and Alphabet Inc.’s
Google that dominate the digi-
been teaming up tal advertising market. Last
to battle tech giants week, Vox Media agreed to
buy New York Media, owner of
for digital ad revenue New York magazine, in a deal
that valued the target com-
BY BENJAMIN MULLIN pany at about $105 million,
AND SHALINI RAMACHANDRAN the Journal reported.
Adding Refinery29 would
Vice Media LLC and provide Vice Media with a
Refinery29 Inc. have ham- needed infusion of revenue.
mered out most of the details Vice Chief Executive Nancy
of a cash-and-stock deal that Dubuc has stated that she is
would add a large and female- focused on making the com-
skewing digital media com- pany profitable after years of
pany to Vice’s portfolio, ac- losses. She has embarked on a
cording to people familiar strategy that has included


with the matter. cost-cutting and investment in
The price that Vice Media is key businesses such as Vice
looking to pay for Refinery29 Studios and the company’s ad
couldn’t be learned. The two agency, Virtue Worldwide.
new-media companies are In recent months, Vice Me-
working to finalize the deal dia has lost deals to produce
and have agreed that some of content for WarnerMedia’s
Refinery29’s founders and se- HBO unit that were valued at
nior managers would stay on, more than $50 million annu-
the people familiar with the ally, according to people famil-
deal said. Both companies are iar with the matter.
based in New York. Last week, Vice Media an-
Vice Media is interested in nounced a deal to produce 13
Refinery29 primarily because documentaries for CBS Corp.’s
its mostly female audience will The acquisition of the website publisher would bring with it a mostly female audience. An event sponsored by Refinery29 in Dallas. Showtime unit. It is currently
complement Vice Media’s ex- producing content for Hulu.
isting digital footprint, one of shrunk their losses this year, It is possible the deal with A person familiar with the said. “Vice News Tonight,” which
the people said. Refinery29 according to a person familiar Vice Media could still fall transaction said the aim is to The Wall Street Journal re- recently won five Emmy
will also bring revenue with the matter. apart, but that is unlikely, one use Vice Media’s global foot- ported in July that Vice Media awards, will move to Viceland,
streams that include advertis- Earlier this year, Refinery29 of the people said. That per- print to build up the combined was in talks to acquire the company’s cable channel,
ing, content licensing and said it had raised about $8 son said Refinery29’s inves- company. About 60% of Vice Refinery29. sometime in early 2020, the
events. million out a total of $20 mil- tors are still working through Media’s audience and about New-media companies have company said.
Both companies have in- lion in convertible debt financ- the terms of payment in the 50% of revenue comes from been teaming up to compete —Joe Flint
creased their revenue and ing that it was seeking. event of a deal. outside the U.S., the person with tech giants such as Face- contributed to this article.

UPS Cleared to Deliver With Drones Backers of Holdings Inc. and Stripe Inc.
asking for a complete overview
of their money-laundering

BY ANDY PASZTOR eventually incorporating new

technologies to help detect
Facebook’s compliance programs and how
Libra will fit into them, people
familiar with the matter said.
United Parcel Service Inc.
said it received the first-of-its-
kind federal approval to start
and avoid potential airborne
Amazon.com Inc. and Uber
Libra Waver Dante Disparte, head of pol-
icy and communications at the
Libra Association, said in an
setting up a fleet of unmanned Technologies Inc. are among email that the group has held
aircraft to deliver health sup- those companies vying for Continued from page B1 regular meetings with regula-
plies and eventually consumer similar U.S. approvals to po- Libra could offer a means of tors and policy makers to dis-
packages potentially through- tentially transport food and providing financial services cuss conforming to anti-
out the U.S. small consumer goods to resi- through those channels. money-laundering laws and
After the latest regulatory dential customers. In announcing the project in preventing terrorism financing.

boost for expanded commer- Many of those firms have June, the company said it Libra Association members,
cial drone services, the com- turned overseas to test pre- hoped to provide basic financial meanwhile, have been pressing
pany also intends to phase in liminary delivery systems, cit- services to people around the Facebook for more informa-
routine night flights and ing accelerated regulatory ac- world who lack bank accounts tion. They have asked Mr.
heavier cargo limits—areas tion from Australia to Iceland and to save some of the $25 Marcus and other Facebook
now generally off limits to to Switzerland. billion “lost by migrants every executives how illegal activi-
most operators. Like Wing, UPS ultimately year through remittance fees.” ties such as money laundering
Under the Federal Aviation will be able to operate in the Some analysts have been and terrorist financing would
Administration’s announce- U.S. as something akin to a bullish that Libra could help be kept off Libra and haven’t
ment Tuesday, the company’s small charter or cargo carrier Facebook diversify its revenue received detailed answers, one
Flight Forward unit obtained using conventional aircraft, base and potentially transform of the people familiar with the
an immediate green light to The FAA’s move applies to medical shipments in North Carolina. featuring specific pilot-train- the digital consumer economy matter said.
ship medical products and ing programs and accident- over the long term. Mr. Marcus said on Twitter
specimens in North Carolina pabilities,” David Abney, the Inc.’s Wing Aviation unit ini- prevention procedures. Yet government officials and on Tuesday evening that it was
across various hospital cam- company’s chairman and chief tial authorization to fly a fleet Mr. Abney also said UPS central bankers were quick to “categorically untrue” that de-
puses. But the broad approval executive, said in an interview. of drones for consumer-goods plans to invest in ground- criticize the project, citing con- tailed information about how to
for an entire fleet of future “We’re going to move ahead deliveries. That approval cov- based technologies to better cerns about how the network protect the Libra network from
drones and pilots on the quickly and expand rapidly,” ered only a rural area around track drones, while working would protect users’ privacy illegal activity wasn’t shared. “I
ground—going beyond what he said, “It’s not going to be a Blacksburg, Va., and mandated with manufacturers to create and prevent criminals from us- can tell you that we’re very
the FAA approved previously— small operation.” detailed scrutiny of applica- new drone models. ing it to launder money. calmly, and confidently working
opens the door for many other Within months, Mr. Abney tions for similar applications Along with all other drone David Marcus, the Facebook through the legitimate concerns
types of longer-range applica- predicts, the first phase could elsewhere. champions, the UPS initiative executive in charge of the that Libra has raised by bring-
tions spanning rural and sub- include 100 or more hospital By contrast, UPS said its still faces major hurdles to project, endured two days of ing conversations about the
urban areas. complexes. certification offers a faster rapid growth until the FAA es- tongue-lashings from members value of digital currencies to
The FAA approval doesn’t As delivery options expand, and easier path to case-by- tablishes industrywide rules of Congress over the summer the forefront,” he said.
apply to urban areas. the company said future steps case approvals of new uses. allowing flights over urban ar- for the lack of details about how It is unclear how many of
Calling it a major step to might include a single opera- If that process proves suc- eas and sets standards for re- the new cryptocurrency would the initial Libra Association
enhance services for health- tor on the ground controlling cessful, the latest step could mote identification of drones work as well as Facebook’s past members will commit to the
care customers and ultimately multiple flights or using set an important precedent in by law enforcement and air- missteps on data privacy. Fed- network. So far, members have
other types of industries, the drones to supplement tradi- the budding, fiercely competi- traffic control. eral Reserve Chairman Jerome signed nonbinding letters of
company said the FAA’s ap- tional package delivery by tive drone industry’s quest to Those long-awaited regula- Powell told legislators he had intent and haven’t handed over
proval “has no limits on the trucks in rural areas. step up the frequency and tions will be partly based on “serious concerns” about Libra. the $10 million that Facebook
size or scope of operations.” The goal is to be the first breadth of services. input from real-world flights Privately, U.S. regulators requested from each member
UPS said it already has started drone operator to operate on a UPS intends, among other and pilot programs champi- have leaned on Libra’s backers. to fund the creation of the dig-
limited flying under the new sizable scale, Mr. Abney said. things, to establish an opera- oned by the Transportation The Treasury Department sent ital coin and build out the pay-
certification. The FAA’s move comes tions control center able to Department and White House letters to companies including ments network, people famil-
“It just gives us a lot of ca- months after it gave Alphabet monitor a fleet of drones, aides. Visa, Mastercard, PayPal iar with the matter said.

Banks Struggle to Raise $2 Billion

Travel the Globe With
China For Apollo’s Buyout of Shutterfly
BY MATT WIRZ unsold buyout loans on their the two companies into a larger
The Wall Street Journal AND ALEXANDER GLADSTONE books.
Fund managers hesitated to
business that offers online and
printed photos, school photog-
and National Geographic Investment banks have
struggled in recent days to
lend to Shutterfly, an online-
photo service, because of wor-
raphy and personalized holiday
cards, among other services.
raise about $2 billion of debt ries about its business model Shutterfly and its bankers
Explore the world on one of ive extraordinary expeditions, for Apollo Global Manage- and its relatively low single-B began marketing a $1.285 bil-
each hosted by renowned experts from National Geographic ment’s buyout of Shutterfly credit rating, the people famil- lion loan and a $500 million
and The Wall Street Journal. Wherever you choose to travel, South Africa Inc., highlighting investors’ iar with the matter said. bond to investors in early Sep-
newfound caution toward the Investment banks rarely take tember, touting strong growth
you’ll discover remarkable insights on efforts underway
riskiest portions of the credit such large buyout loans on in Shutterfly’s sales of person-
to bring about a better and more sustainable future for markets. their own balance sheets. alized gifts such as photo mugs
communities around the world. Barclays PLC, Citigroup Inc. and pillows, according to filings
and other banks Apollo hired with the Securities and Ex-
for the sale agreed to buy up to change Commission and re-
Israel and the West Bank: The Future of Innovation South Korea
$280 million of the financing
The trouble shows ports by S&P Global Market In-
Amid Conlict
March 5–15, 2020
themselves after failing to find how hard it is now telligence.
enough outside investors, peo- The loan included a rare fea-
Colombia: The Future of Sustainable Peace ple familiar with the matter
for Wall Street to ture committing the company
March 27–April 6, 2020 said. They also were forced to unload risky debt. to repay $100 million of the
slash the price of the debt to debt at the end of 2019 with
South Korea: The Future of a Society at a Crossroads entice investors to buy up the cash from holiday-season sales,
Israel and the West Bank
April 12–22, 2020 balance, they said. people familiar with the matter
China: The Future of a Global Economy
While not all buyout financ- The structure of the Shut- said.
ings are struggling, Shutterfly’s terfly financing may also affect Still, investors were put off
May 13–24, 2020
difficulties show how much overall returns on the buyout by declining sales of photo
South Africa: The Future of Art in Society harder it has become for Wall for Apollo as the firm agreed to prints and what they saw as a
June 16–26, 2020 Street to unload risky debt buy $300 million of unsecured low barrier to entry for larger
since a global selloff in August bonds. The more of their own competitors such as Ama-
prompted many investors to capital that buyout firms com- zon.com Inc. or Google, the
LEARN MORE: shift toward a cautious ap- mit to an acquisition, the slim- people familiar with the matter
888-205-5621 | natgeoexpeditions.com/wsj proach. Some worry the high- mer their profit margin be- said. The banks cut the price of
yield market may be headed to- comes. the debt hoping to finalize the
*Copyright © 2019 National Geographic Partners, LLC. All Rights Reserved.
NATIONAL GEOGRAPHIC EXPEDITIONS and the Yellow Border are trademarks of National Geographic Society and used with permission.
ward a freeze like in 2015, Apollo is purchasing Shut- deal last week but still failed to
© 2019 Dow Jones & Co., Inc. All Rights Reserved. 3DJ8083 when investment banks were terfly and its competitor Snap- secure enough orders, they
stuck with billions of dollars of fish LLC in an effort to roll up said.
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THE WALL STREET JOURNAL. * * * * Wednesday, October 2, 2019 | B5


Board Adds
Race Cars Teach Machine Learning
Amazon league’s mini
Farming self-driving vehicles
train workers on
Expert artificial intelligence

MONHEIM AM RHEIN, Ger- Employees at companies in-

many—Bayer AG appointed a cluding Morningstar Inc. and
prominent U.S. agriculture ex- Liberty Mutual Group Inc. are
pert to its board in the chemi- learning about advanced artifi-
cals and pharmaceuticals com- cial-intelligence techniques by
pany’s latest effort to convince programming and racing minia-
investors that it has its trou- ture self-driving cars.
bled crop-science business un- The DeepRacer league, devel-
der control. oped by Amazon.com Inc.’s Am-
Bayer said Ertharin Cousin, azon Web Services cloud busi-
a former director of the United ness, is designed to teach a
Nations World Food Program, branch of AI known as reinforce-
would succeed German man- ment learning. In this type of
ager Thomas Ebeling on its su- machine learning, algorithms
pervisory board. learn the correct way to perform
Large Bayer shareholders an action based on trial and er-
had expressed concern about a ror and observations.

lack of expertise among the The technique is different
company’s nonexecutive direc- from a type of AI commonly
tors in assessing the difficulties used in business called super-
Bayer has faced since acquiring vised learning, in which algo-
U.S. agriculture company Mon- rithms have to be fed with la- Morningstar’s Mumbai office hosted a DeepRacer event last week. The league was developed by Amazon Web Services.
santo Co. last year. beled training data to learn to
With the acquisition, Bayer recognize images or make pre- of investment research firm about machine learning in a ered cars, that could include especially for individuals who
inherited thousands of lawsuits dictions. Here, the cars supply Morningstar. Thanks to the more engaging way than reading such tasks as staying close to the are not necessarily computer sci-
claiming that Monsanto’s their own data: images collected training, the company expects to scientific articles, Mr. Miller said. centerline on the track, minimiz- entists,” he said.
Roundup herbicide causes can- with cameras. have dozens of projects based on The algorithms are complex ing wide steering angles and Earlier this year, one of the
cer. Bayer has argued that Anyone with an Amazon Web reinforcement learning and because they gather data on turning to avoid barriers and Morningstar teams came up with
Roundup is safe, but it lost the Services account can participate other machine-learning tech- their own, instead of being fed crashes. an idea for a tool based on rein-
first three U.S. jury trials, in the league. Teams or individu- niques in deployment by the end millions of images to learn from, At Morningstar, more than forcement learning that looks for
which sent its share price als can compete online in virtual of 2020, he said. said Peter Stone, professor of 450 software developers, equity patterns in regulatory filings.
plummeting and frustrated races or in person at events Reinforcement learning can computer science at the Univer- analysts and quantitative re- Liberty Mutual has 270 em-
shareholders. world-wide. also be used to help robots walk sity of Texas at Austin. searchers have formed nearly ployees, including software engi-
As tension rose between Teams build and train AI al- faster or to develop security sys- Mr. Stone, who is president of 100 racing teams in 10 countries neers and data scientists, partici-
shareholders and management, gorithms using Amazon Sage- tems that automatically adapt to AI software company CogitAI since January, when Mr. Rhodes pating in DeepRacer.
culminating in a rare no-confi- Maker software, deploy them to different environments. It’s “a Inc., isn’t involved with Deep- began allowing employees to use “It’s a fun way for people to
dence vote at this year’s gen- self-driving cars measuring pretty complicated technology Racer. the technology. get practical exposure for what
eral meeting, investors pushed about 10 inches, then race them and there’s a pretty steep learn- Programmers write code to Morningstar has invested are very important algorithms in
the company to beef up its le- around a track of roughly 17 feet ing curve,” said Mike Miller, gen- reward the algorithms when “north of tens of thousands of a safe environment where
gal expertise and bring in more by 26 feet. eral manager of AI devices at they do something right, such as dollars” on the miniature cars they’re not going to mess up any
people to oversee an agricul- “It’s actually having practical Amazon Web Services. winning a race or avoiding an and training software to date, he core business applications,” said
ture business that now ac- applications,” said James AWS developed the program obstacle. said. “It’s bringing the virtual James McGlennon, the insurer’s
counts for nearly half of group Rhodes, chief technology officer to teach software developers In the case of algorithm-pow- [world] into the physical space, chief information officer.
Ms. Cousin, a lawyer by
training, served as the U.S. am-
bassador to the U.N. Agencies
for Food and Agriculture from
Schwab Last summer, Vanguard said
it was making online trading
free for almost all exchange-
Schwab’s average
trading commission*
ers at least 100 free stock or
ETF trades a year and is aimed
at younger, first-time investors.
long to respond to new en-
trants,” Chief Financial Officer
Peter Crawford said in a note
2009 to 2012 and held several
positions in the private sector,
such as head of public affairs
Cuts Trade traded funds bought and sold
through its brokerage platform.
A month later, Fidelity unveiled
Bank of America Corp.’s Merrill
Edge also offers some commis-
sion-free online stock and ETF
on the company’s website. “It
has seemed inevitable that
commissions would head to-
at U.S. supermarket chain
Bayer Chairman Werner
Fees to Zero the first zero-fee index funds.
Fidelity later expanded the
number of ETFs that trade free
trades, an offering it expanded
in February.
To make money, zero-com-
wards zero, so why wait?”
Other online brokers grap-
pled with the prospects of a
Wenning said Ms. Cousin’s “ex- on its own platform to more mission brokerages like Robin- race to zero.
pertise and international expe- Continued from page B1 than 500. hood rely heavily on a practice A Fidelity spokeswoman de-
rience at the interface between sions, which make up only Fee-free financial advice also 20 called “payment for order clined to say whether her firm
government, business, aca- about 7% of total revenue. is cropping up, disrupting the flow,” in which they route cus- was considering a commission
demia and civil society” would TD Ameritrade, meanwhile, business of old-school financial tomers’ orders to buy or sell cut of its own. “We will always
give Bayer new perspective. derives about one-quarter of its advisers which typically charge shares to electronic-trading look for ways to leverage our
revenue from trading. For 1% to 2% of a client’s assets an- firms such as Citadel Securi- scale to deliver even more
E*Trade, commissions com- nually. ties and Virtu Financial Inc., in value,” she said.
prise about one-fifth of total In 2014, Schwab announced return for cash payments. Vanguard is “happy to see
revenue. its system that uses algorithms 0
Schwab’s move on trading others in the industry continue
Some e-brokers may need to to provide portfolio-manage- fees is set to take effect Oct. 7. to follow our lead in reducing
2001 ’05 ’10 ’15 ’19
merge with competitors to sur- ment services. For some cus- It applies to commissions for the cost of investing,” a spokes-
vive, JMP’s Mr. Ryan said. That tomers it has waived fees for *Data are for the second quarter of each year. stocks, exchange-traded funds woman said. E*Trade didn’t re-
process has already been under the digital advice in exchange Source: company reports and JMP Securities and options listed on U.S. or spond to requests for comment.
way, with TD Ameritrade ac- for a relatively high cash allo- Canadian exchanges. Interactive Brokers said it

quiring Scottrade in 2017. cation that flows into Schwab’s said, “The changes taking place The financial-services com- welcomed Schwab’s announce-
Asset managers also have bank. across the brokerage industry pany currently charges a com- ment, which came just five
been shaken by the shift to- Online brokerages recently reflect a focus on the customer mission of $4.95 for online U.S. days after the firm unveiled its
ward ever lower fees. Investors’ have lost ground to the likes of that’s been inherent to Robin- stock, ETF and options trades. commission-free “IBKR Lite”
surging demand for cheap in- Robinhood. hood since the beginning.” Charles Schwab said clients platform.
dex funds has thinned the ranks Founded in 2012, Robinhood Even the biggest, boldest trading options will continue to “The more the merrier,” the
of Wall Street stock pickers and has amassed around six million names in financial services pay 65 cents a contract. company’s Chairman and CEO
rewarded those players able to users with its smartphone app have been forced to play this “We don’t want to fall into Thomas Peterffy said in an
meet investors’ appetite for that lets investors buy and sell game. JPMorgan Chase & Co. the trap that a myriad of other email.
low-fee products. In some cases stocks without paying a fee. last year unveiled its You Invest firms in a variety of industries —Justin Baer and Dawn Lim
Ertharin Cousin fees have sunk to zero. A spokesman for Robinhood product, which offers custom- have fallen into and wait too contributed to this article.

Operating reputational damage to the

bank,” the bank said. Bank of-
ficials added they believed Mr.
had tracked that of Mr. Thi-
ams for two decades, and in-
cluded stints alongside the
Investigo GmbH, a small
Zurich detective firm, in a
statement provided to Credit

Chief Cited Bouée acted in the bank’s in-

A representative for Mr.
CEO at McKinsey & Co., Aviva
PLC and Prudential PLC before
he joined Credit Suisse in
Suisse and Swiss authorities
last week said its mandate was
to follow Mr. Khan at a dis-

In Probe Khan said he wouldn’t be com-

menting on the review.
The bank-commissioned in-
Mr. Khan joined UBS three
months after quitting Credit
tance and take pictures of peo-
ple he met with.
—Pietro Lombardi
vestigation found that Mr. Suisse. He negotiated the un- contributed to this article.
Continued from page B1 Bouée ordered the bank’s head usually short mandatory break
day that the review studied of global security services, between jobs with Mr. Rohner,
company emails and Whats- who has also resigned, to start also without the involvement
App messages between the observation of Mr. Khan. of Mr. Thiam, The Wall Street
Messrs. Thiam and Bouée in a Bank officials and lawyers Journal reported previously.
period from around Aug. 22 to said they didn’t have access to Mr. Rohner confirmed Tuesday
Sept. 23, looking at all com- testimony or evidence gath- that he handled the departure
munication considered poten- ered by Swiss police or prose- talks with Mr. Khan.
tially relevant. cutors, who said last week On Sept. 17 in Zurich, Mr.
“The Homburger investiga- they opened a criminal inves- Khan spotted an investigator
tion did not identify any indi- tigation into possible assault following him. Mr. Khan filed a
cation that the CEO had ap- and threat based on Mr. complaint with police, and Zu-
proved the observation of Khan’s complaint. rich prosecutors last week
Iqbal Khan nor that he was A spokesman for the Zurich said “temporary arrests” had
aware of it prior to Sept. 18, been made as part of the re-
2019, after the observation sulting probe.
had been aborted,” the bank Despite the fact that the
Credit Suisse’s CEO bank’s shares have lost about
Mr. Thiam in a memo to said the surveillance half their value since Mr.
staff Tuesday said that it was Thiam took over in 2015, big
regrettable that the reputation
was ‘strictly an shareholders have largely wel- Part of Your
of the bank had suffered, and isolated incident.’ comed his restructuring Daily Rotation.
that the surveillance was moves.
“strictly an isolated incident He quickly ramped up Discover essential news,
and full accountability for that Credit Suisse’s focus on selling business, markets and
incident has been taken by the prosecutor’s office said Tues- investment and trading prod- analysis with the What’s
individuals concerned.” day the investigation is ongo- ucts to ultrawealthy clients.
News podcast.
The resignation of Mr. ing. In the case of the security He promoted Mr. Khan, hired
Bouée is effective immediately, consultant’s death, the spokes- in 2013 as the finance chief of
the Swiss bank said. Mr. Bouée man said there has been no the wealth management arm, LISTEN NOW
couldn’t be reached for com- evidence of misconduct or in- to run the bulk of that busi-
ment. He hasn’t responded to volvement by a third party. ness internationally. WSJ.COM/WHATS-NEWS
previous requests for com- Mr. Bouée will be replaced Credit Suisse on July 1 said
ment over the past week. as operating chief by James Mr. Khan would leave the bank
“The board of directors Walker, who has held several to pursue his career else-
considers that the mandate for roles at the bank including fi- where. In a statement, Mr.
the observation of Iqbal Khan nance chief of its U.S. subsid- Thiam wished him well. In late
was wrong and disproportion- iaries. August, UBS named him co- © 2019 Dow Jones & Co., Inc. All rights reserved. 1DJ7219
ate and has resulted in severe The career of Mr. Bouée head of wealth management.
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B6 | Wednesday, October 2, 2019 * *** THE WALL STREET JOURNAL.


Amazon Advances Grocery-Store Plan
The e-commerce giant foot store was previously oc-
cupied by Toys “R” Us, and its
plans to open a chain neighbors are Citibank, Office
as it increases its Depot and Sharky’s Woodfired
Mexican Grill. There is a
offline presence Costco wholesale market half
a mile away.
BY ESTHER FUNG Paragon Commercial Group,
the owner of the strip center,
Amazon.com Inc. is ad- didn’t respond to requests to
vancing a plan to open a chain comment.
of U.S. grocery stores with Amazon doesn’t comment
early outposts in Los Angeles, on rumors or speculation, an


Chicago and Philadelphia, ac- Amazon spokeswoman said.
cording to people familiar Amazon is also looking at
with the matter. grocery spaces in the New
In the Los Angeles area, it York metropolitan area, New
has signed more than a dozen Jersey and Connecticut. Many
leases, the people said. The of these locations are in strip
first few stores are likely to be centers and open-air shopping
in the dense suburban loca- centers and would occupy
tions of Woodland Hills and about 20,000 to 40,000 square
Studio City, while another gro- feet, the people said.
cer is slated for the city of Ir- In March, The Wall Street
vine, in nearby Orange County, Journal reported that Ama-
a person familiar with the zon’s new grocery chain isn’t
matter said. These stores intended to compete directly
could open as early as the end Amazon has signed leases in the Los Angeles area, including at this site in Woodland Hills, Calif., people familiar with the matter said. with the company’s upscale
of the year. Whole Foods Market chain,
Amazon is planning to op- pared foods, they will stock and 18 Amazon Books stores. items that customers select in contractors hired by Amazon which doesn’t sell products
erate dozens of grocery stores mainstream items such as Revenue from these bricks- the store, but exclude pur- permits to change the facade, with artificial flavors, preser-
in cities across the country, soda and Oreos, people famil- and-mortar businesses is small chases made online and picked start electrical work on light vatives and sweeteners,
part of the online giant’s in- iar with the matter said. but edging up. In the second up at a store. fixtures and fire sprinklers, among other quality stan-
creasing focus on a bricks- The company now has 16 quarter, net sales from Ama- One of Amazon’s first gro- and to install an espresso ma- dards.
and-mortar presence to find Amazon Go stores, where cus- zon’s physical stores rose 1% cery locations will be on N. chine and kitchen equipment The Journal was unable to
more ways to reach consum- tomers can grab ready-to-eat to $4.3 billion from a year ear- Topanga Canyon Boulevard, at at the property there. Filings determine what the new
ers. food and grocery purchases lier, compared with 16% a strip center in the Woodland show that there will be a sub- stores would be called or
Many of the proposed loca- checkout-free. It also has four growth recorded in its online Hills neighborhood of Los An- stantial kitchen, indicating whether they will use a similar
tions are outside urban cores Amazon 4-star stores, which stores, according to Amazon’s geles, the people said. that the store will offer pre- cashierless technology used by
and cater to middle-income stock products rated 4-stars earnings statement. Sales in Local building and safety pared foods. its chain of convenience
consumers. Apart from pre- and above on the Amazon site, its physical stores include departments recently granted The roughly 35,000 square- stores, Amazon Go.

CoStar to Buy Hotel Data Firm STR for $450 Million

BY PETER GRANT As one of the world’s larg- sold data on office buildings. high, rose $3.95, or 0.7%, to a consent decree pledging not after,” said Amanda Hite,
est hotel data collectors, STR Over the years, it has ex- $597.15 on Tuesday. to restrict customers from STR’s chief executive.
CoStar Group Inc., which gathers confidential informa- panded into industrial, retail Before Mr. Florance started providing competitors with CoStar hopes to use STR’s
has built a multibillion-dollar tion on such metrics as reve- and rental apartments, partly CoStar, commercial real-estate real-estate information. expertise in providing data for
business out of selling com- nue and occupancy from more through acquisitions, growing firms directly controlled most CoStar executives said they performance comparisons to
mercial real-estate data, is than 66,000 hotels world-wide to a market value of more data on such things as leasing, didn’t think the STR deal serve investors in office build-
making a push into the lodg- in some 180 countries. Compa- than $21.5 billion. building occupancy and tenant would trigger any antitrust ings, stores and apartments.
ing industry with a deal to buy nies including Marriott Inter- “We’re trying to get really rosters. Those firms now rely concerns. The hotel data Co- Such a move would pit Co-
the hotel data firm STR for national Inc. and Wyndham high-quality data for a $3 tril- heavily—and pay high prices— Star now collects is limited to Star against startup data firm
$450 million. Hotels & Resorts Inc. use STR lion asset class,” CoStar Chief to CoStar for that data. basic property information VTS, whose backers include
STR began marketing itself data to compare their own Executive Andrew Florance The Federal Trade Commis- and details on property sales. big landlords.
for sale in August, according performance—in some cases said in an interview. The fig- sion imposed in 2012 strict CoStar is planning to use its Hendersonville, Tenn.-based
to CoStar and STR executives, daily—with competitors. ure referred to his firm’s esti- conditions on the firm’s effort large sales force to expand STR was founded by Randy
and the companies shortly The acquisition opens up a mate of the combined market to acquire LoopNet, another STR’s reach geographically. Smith and his late wife, Caro-
struck a deal. The all-cash pur- new market for CoStar. It was value of all hotels world-wide. real-estate data firm. “There are 350,000 hotels lyn J. Smith. Its revenue in
chase is expected to close late founded in 1987 primarily as a CoStar shares, which have CoStar had to spin off Loo- outside of the U.S. that are 2019 is expected to be about
this year. company that amassed and been trading near their record pNet’s Xceligent unit and sign targets that we could be going $64 million, according to STR.


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