* * * * * * WEDNESDAY, JUNE 24, 2020 ~ VOL. CCLXXV NO. 147
00
DJIA 26156.10 À 131.14 0.5%
What’s
News
Business & Finance
ell is examining op-
D tions, including a spinoff
for its roughly $50 billion
stake in VMware, as the PC
maker seeks a boost for its
lackluster stock price. A1
 The divergence in the per-
formance of the major U.S.
stock indexes this year is the
widest in over a decade. A1
 The Nasdaq rose 0.7% to
another record, while the
Dow and S&P 500 added 0.5%
and 0.4%, respectively. B13
 Surveys of purchasing
managers showed output
contracting at a slower
pace in the U.S., Europe
and Asia this month. A2
 A Missouri court upheld
a jury verdict that J&J’s tal-
cum powder caused cancer in
22 women but cut the dam-
ages awarded by more than
half to about $2.1 billion. B1
 Wirecard’s ex-CEO was
arrested and released on bail
days after the German fintech
company revealed a $2 bil-
lion hole in its books. B1, B12
 Mall owner Simon Prop-
erty is teaming up with
Brookfield Property in explor-
ing a bid for J.C. Penney. B6
 Silicon Valley executives
criticized Trump’s order
suspending new immigra-
tion on several employment-
based visa programs. B1
 Amazon is launching a
$2 billion internal venture-
capital fund focused on tech
investments to reduce the
impact of climate change. B4
 The government may
consider postponing the
2019 annual tax-filing dead-
line a second time, Treasury
Secretary Mnuchin said. A2
World-Wide
 New coronavirus cases
rose sharply in several states,
with Arizona, Texas and Cali-
fornia reporting new daily re-
cords of infections, prompt-
ing more elected officials to
tighten rules on gatherings
and strongly urge people to
stay home and follow so-
cial-distancing guidelines. A1
 A prosecutor in the crimi-
nal case against Roger Stone
said in prepared remarks that
supervisors repeatedly told
him the ex-Trump adviser
would receive special treat-
ment because of his relation-
ship with the president. A4
 The American Hospital
Association was dealt a loss
in its legal bid to stop the
Trump administration from
requiring hospitals to disclose
secret rates they negotiate
with insurance companies. A6
 Senate Democrats
threatened to block consid-
eration of Republicans’
law-enforcement bill un-
less bipartisan talks over a
broader overhaul begin. A3
 The Louisville, Ky., po-
lice chief officially fired one
of the three police officers
involved in the March kill-
ing of Breonna Taylor. A3
 The FBI said that a noose
found in the racetrack garage
stall of Nascar driver Bubba
Wallace had been there for
months and didn’t appear to
have been targeted at him. A3
 Russians are set to begin
voting on constitutional
changes that could allow Putin
to stay in office for years. A9
 A strong earthquake
struck Mexico’s Pacific
coast state of Oaxaca. A9
CONTENTS
Banking & Finance B12
Business News.. B3,7,8
Crossword.............. A14
Heard on Street.. B14
Life & Arts....... A11-13
Markets.................... B13
s 2020 Dow Jones & Company, Inc.
All Rights Reserved
WSJ.com
NASDAQ 10131.37 À 0.7% STOXX 600 367.40 À 1.3%
Precautions Test Voters in Elections Around the U.S.
BRETT CARLSEN/GETTY IMAGES
BALLOT BOX: Voters kept their distance in Louisville, Ky., Tuesday as primaries were held in several states. A string of chaotic
voting days in recent months has raised concerns about the country’s ability to run a smooth election during the pandemic. A4
Nasdaq Outpaces Blue Chips,
S&P 500 as Tech Stocks Rally
BY KAREN LANGLEY
The divergence in the per-
formance of the major U.S.
stock indexes this year is the
widest in more than a decade.
A surge in big technology
stocks has helped the Nasdaq
Composite rally 13% in 2020,
while the Dow Jones Industrial
Average of blue-chip stocks is
down 8.3%. The benchmark
S&P 500 is hovering in be-
tween them, off 3.1%.
The Nasdaq’s advantage
Funeral Is Held as Police Bill Stalls
ERIK S. LESSER/EPA/SHUTTERSTOCK
A funeral was held Tuesday in Atlanta for Rayshard Brooks, who
was killed by police in a Wendy’s parking lot on June 12. In
Washington, Senate Democrats threatened to block consideration
of Republicans’ law-enforcement bill, saying it was too narrow. A3
Plexiglass to the Rescue: Supplies
Run Short as Barriers Go Up
i i
Designers plan pandemic protection for
the beach, restaurants and schools
BY PIETRO LOMBARDI
AND KIM RICHTERS
ROME—Stefano Antonelli
has sculpted plexiglass for de-
cades in his workshop, making
bikes and furnishings and
works of art. But a recent cus-
tomer request stood out. A lo-
cal hospital asked for a box to
Opinion.............. A15-17 cover patients’ heads, a bar-
Property Report... B6
Sports....................... A14 rier to prevent transmission of
Technology............... B4 the coronavirus.
U.S. News......... A2-4,6 It was one of many pleas
Weather................... A14
World News........ A7-9
for protective equipment made
of the transparent acrylic that
the 58-year-old artisan has re-
> ceived over the past months
from stores, restaurants and
professionals.
“It has been like a tsu-
nami,” Mr. Antonelli said at
his workshop, a stone’s throw
from the Colosseum. “In 40
HHHH $4.
10-YR. TREAS. g 1/32 , yield 0.708%
over the Dow and S&P 500 is
the biggest since 1983. The gap
between the S&P 500 and the
Dow is the widest since 2002,
when the Dow was ahead.
The Nasdaq continued its
outperformance Tuesday, out-
pacing the Dow and S&P 500
for the day and notching its
21st record close of 2020. The
index climbed 0.7%, while the
Dow edged up 0.5% and the
S&P 500 added 0.4%, driven by
improving economic data.
One explanation for the gap
i China Won Access to
years I had never seen some-
thing similar.”
Plexiglass, a type of plastic,
came into its own during
World War II, when it was
touted as a safer alternative to
glass in aircraft windshields.
Now the pandemic is twisting
the material into some mind-
bending shapes. In a world
marked by social distancing
and shields, designers are of-
fering plexiglass corrals for
the beach, individual boxes for
pupils in classrooms and a
host of other new applications.
One of them is Christophe
Gernigon. The Paris designer
was browsing social media one
night, looking at measures
used in restaurants to keep so-
cial distance such as plexiglass
dividers on tables.
Please turn to page A10
OIL $40.37 g $0.36
in returns: A handful of
growth stocks that have
surged this year have an out-
size influence on the Nasdaq
and the S&P 500. Apple Inc.,
Microsoft Corp., Amazon.com
Inc., Google parent Alphabet
Inc. and Facebook Inc. to-
gether account for about 40%
of the Nasdaq and 20% of the
S&P. Of those stocks, only Ap-
ple and Microsoft are in the
Dow.
The disparities add to the
challenges facing investors
Dell Explores Spinning Off
$50 Billion VMware Stake
BY CARA LOMBARDO
Dell Technologies Inc. is ex-
amining options, including a
spinoff for its roughly $50 bil-
lion stake in VMware Inc., as
the PC maker seeks a boost for
its lackluster stock price.
Dell recently kicked off a
process to explore the possi-
bility of unloading the stake or
taking other steps that could
include buying the rest of VM-
ware, according to people fa-
miliar with the matter. The
companies are working with
outside advisers, these people
said.
In a sign of investor enthu-
siasm for a transaction that
will unlock value, shares of
both companies jumped in af-
Donors Linked to
Trump and GOP
Money flowing to president’s re-election
committee opened doors in Washington
BY BRIAN SPEGELE
Soon after Donald Trump
took office, people with ties
to the Chinese state poured
hundreds of thousands of
dollars into his re-election
bid to get close to and po-
tentially influence the new
president.
The effort had early suc-
cess in gaining access for
those involved, helping them
meet the president or top
Republicans at fundraisers
or at an internal GOP leader-
ship meeting. It reveals how
China seeks to build inroads
into U.S. politics, gather in-
formation on U.S. leaders
GOLD $1,772.10 À $15.40
who are trying to make sense
of a dizzying stretch of volatil-
ity in markets. Valuing stocks
became increasingly difficult
after the coronavirus pandemic
brought the economy to a halt
and companies from Caterpil-
lar Inc. to McDonald’s Corp. to
PayPal Holdings Inc. pulled
forecasts.
Although economic data
Please turn to page A8
 Nasdaq enjoys another record
trading session........................ B11
ter-hours trading when The
Wall Street Journal reported
on the review.
Dell shares rose 18% to
$57.80 after rising 1.5% in reg-
ular trading. VMware shares,
which were little changed in
regular trading, rose 8% to
$161.50.
Dell’s review is at an early
stage, no decision is imminent
and it is still possible the com-
pany will choose to do noth-
ing.
The goal of the review is to
address a gap between Dell’s
market value—about $36 bil-
lion on Tuesday afternoon—
and the value of its 81% stake
in VMware, which suggests the
market is assigning little or no
worth to Dell’s core PC and
and if possible affect policy-
making.
Several of those involved
in the effort worked closely
with China’s national-secu-
rity apparatus, including or-
ganizations linked to its mili-
tary, and briefed prominent
Chinese political figures
about their efforts.
As guests of a Republican
official named Shawn Steel,
Chinese nationals, including
a man working for China’s
central government, at-
tended an invitation-only
gathering in May 2017 where
GOP leaders discussed cam-
paign strategies and other
Please turn to page A10
EURO $1.1309 YEN 106.53
Virus
Cases Hit
Records
In Many
States
Officials tighten rules
and social-distancing
enforcement as world
total tops 9.1 million
BY TALAL ANSARI
New coronavirus cases rose
sharply in several states, with
Arizona, Texas and California
reporting new daily records of
infections Tuesday, prompting
more elected officials to
tighten rules on gatherings
and strongly urge people to
stay home and follow social-
distancing guidelines.
The total number of con-
firmed coronavirus cases
world-wide surpassed 9.2 mil-
lion, with more than 2.3 million
cases in the U.S., as the na-
tion’s death toll reached more
than 121,000, according to data
from Johns Hopkins University.
The two most populous states,
California and Texas, each re-
ported more than 5,000 new
infections, breaking their previ-
ous daily records.
On Monday, Texas Gov.
Greg Abbott said he didn’t
want to backtrack on reopen-
ing the state and said resi-
dents need to take it upon
themselves to wear masks and
practice social distancing. But
on Tuesday he urged Texans
to take precautions, saying
people shouldn’t go out unless
absolutely necessary.
“The safest place for you is
at home,” Mr. Abbott said.
Please turn to page A6
 Cases climb as European
capitals open.............................. A7
 Latin America is grim new
center of pandemic................ A8
data-storage business. Sepa-
rating the companies could
help highlight the value of one
or both businesses.
A transaction involving VM-
ware could also be designed to
help reduce Dell’s $48 billion
debt load.
To the frustration of Dell
investors, the company’s stock
has barely budged since re-
turning to the public markets
in 2018.
That is despite a more than
50% rise in the same period
for the tech-heavy Nasdaq
Composite Index, which hit a
record high on Tuesday as in-
vestors pile into stocks of
companies that are thriving
amid the coronavirus lock-
Please turn to page A2
INSIDE
LIFE & ARTS
With vacationers
postponing plans, next
year’s bookings are
filling up. A11
ANDREJ CUKIC/EPA
SPORTS
Djokovic and other
players test positive
for virus after
tournament. A14
A2 | Wednesday, June 24, 2020
U.S. NEWS
Global Economy Shows Some Positive Signs Another
BY PAUL HANNON
AND DAVID HARRISON
The global economy is grad-
ually pulling out of its stall as
businesses reopen after pan-
demic-induced lockdowns, with
output contracting at a slower
pace in the U.S., Europe and
Asia this month, according to
surveys of purchasing manag-
ers.
A composite index produced
by data firm IHS Markit
pointed to a more gradual de-
cline in business activity in the
U.S., suggesting a possible re-
bound in coming months.
The firm’s U.S. purchasing
managers index for manufac-
turing was 49.6 and its services
index was 46.7 in June, in both
cases the highest reading in
four months. The composite in-
dex on the month was 46.8,
FCA/REUTERS
also the highest in four months.
A level below 50 points to a
decline in activity, while a read-
ing above that mark points to
an increase.
The data could be a sign that
the sharp drop in economic ac-
tivity that started in March,
when coronavirus cases began
to rise, could be bottoming out.
Still, the U.S. economy will
likely remain weaker than it
was at the beginning of the
year for some time.
“The big picture is that the
economy is now on the road to
recovery following the corona-
virus lockdowns,” said Andrew
Hunter, senior U.S. economist
at Capital Economics in a note
to clients.
Chris Williamson, chief busi-
ness economist at IHS Markit,
said output and employment
were falling at “far more mod-
est rates” in both the manufac-
turing and service sectors.
“The improvement will fuel
hopes that the economy can re-
IMMIGRATION
Court Ends Injunction
On Quick Deportation
A federal appeals court ruled
Tuesday that a federal judge
was incorrect to block a Trump
administration policy allowing
the government to quickly de-
port unauthorized immigrants
without going through immigra-
tion courts.
The U.S. Court of Appeals for
the District of Columbia Circuit
reversed a preliminary injunction
that prevented the administra-
tion from expanding its swift
deportation authority.
The policy, known as expe-
dited removal, is now applied to
immigrants who are found
within 100 miles of the Mexican
or Canadian borders, and who
have entered the U.S. illegally
within the previous two weeks.
In July 2019, the Trump ad-
ministration moved to expand
the application of the policy to
the entire country and to any
immigrant who entered the U.S.
unlawfully in the previous two
years.
The Department of Homeland
Security and U.S. Immigration
and Customs Enforcement didn’t
return requests to comment.
Federal immigration officials
have defended the policy change
as necessary to divert more
cases from immigration courts,
which are working through a
backlog of cases that has grown
to more than a million this year.
Dell Mulls
$50 Billion
Spinoff
Continued from Page One
downs.
Dell has recently organized
working groups to explore var-
ious possibilities for the VM-
ware stake.
The primary option is a
spinoff to Dell shareholders of
the stake in VMware, a major
player in the fast-growing
market for cloud software,
some of the people said.
Dell is assessing various
implications of such a move,
from corporate governance to
capital structure and how the
companies would work to-
gether following a separation,
these people said.
Any deal is unlikely before
next year.
Dell can’t spin off its VM-
ware stake tax-free until Sep-
tember 2021, or about five
years after the PC maker com-
THE WALL STREET JOURNAL.
Recovery Path Taxpayer
Reprieve
June surveys of purchasing
managers pointed to a return
to growth in France and
Is Possible
Australia, and less severe
contractions in Germany and
Japan.
Purchasing managers BY PAUL KIERNAN
composite output indexes
WASHINGTON—The govern-
France Germany ment may consider postponing
Japan Australia the 2019 annual tax-filing
60 deadline a second time, though
Treasury Secretary Steven
50 Mnuchin suggested Tuesday
that the benefits of doing so
40 would be less clear than before.
Federal income-tax filings
30
and payments by individuals
20 and companies that are nor-
mally due on April 15 were de-
10 layed this year to July 15, as
the Treasury Department
0 sought to bolster household
2018 ’19 ’20 and business finances amid
the coronavirus pandemic.
Note: Readings below 50 indicate contraction,
above, expansion Asked in an interview at a vir-
Curtains intended to prevent virus spread are seen at a Fiat Chrysler plant in Sterling Heights, Mich. Sources: IHS Markit tual Bloomberg event if he
was considering another delay
turn to growth in the third sion in private-sector activity look, curbing spending by busi- IHS Markit, and firms ex- to Sept. 15, Mr. Mnuchin said
quarter,” he said. for the first time since February. nesses and households.” He pressed confidence that activity it is possible.
The slower decline, albeit But the surveys also re- added that “the recovery could would pick up. “As of now we’re not intend-
tentative, is most visible in corded continued declines in also be derailed by new waves Signs of a return to growth ing on doing that, but it is
countries that issued stringent activity in countries that im- of virus infections.” in France and Australia, com- something we may consider,”
stay-at-home rules during the posed softer lockdowns, includ- Federal Reserve officials bined with indications of stabi- he said.
coronavirus pandemic, where ing Germany and Japan. The have cautioned against reacting lization elsewhere, come as Mr. Mnuchin said the initial
economic activity fell sharply in latter recorded a sharper drop too strongly to hints of positive economists are reassessing decision to extend the tax
March, April and May. in manufacturing activity than data, noting the U.S. faces a their most pessimistic projec- deadline was based in part on a
The lifting of many of those in May, suggesting the path long road to recovery. tions for the global economy concern that people couldn’t
restrictions appears to have led back will be long and bumpy. “It’s just going to take a long during the three months access their accountants as of-
to a stronger rebound in June, A rise in new coronavirus time, I think, to get back to through June. They still expect fices and stores across the
and surveys in some instances cases in the U.S. could prompt where we were in February,” to see the sharpest contraction country shut down in March.
showed an expansion. officials to impose new lock- Cleveland Fed President Loretta on record for many parts of the He also noted that most tax-
In the eurozone, the com- down measures, possibly affect- Mester said last week. global economy but are moder- payers have filed their taxes,
posite purchasing managers in- ing the nascent recovery. Some U.S. companies re- ating their estimates. including most who were owed
dex—a measure of activity in Mr. Williamson said that ported a pickup in demand in German bank Berenberg last refunds.
the manufacturing and services “any return to growth will be June and said they were able to week said it expects the U.S. “I’d encourage all Ameri-
sectors—rose to 47.5 in June prone to losing momentum due pass on higher input costs to economy to contract by 4.1% cans, if you can file your tax re-
from 31.9 in May to reach its to persistent weak demand for their customers. Companies this year, having previously ex- turns, go ahead and do it, par-
highest level since February. many goods and services, had also been able to shrink pected to see a 6.1% drop. ticularly if you think you have a
The composite PMI for linked in turn to ongoing social their backlogs of orders. refund,” Mr. Mnuchin said.
France rose to 51.3 in June from distancing, high unemployment Job cuts continued, though  Heard on the Street: Europe’s “And we’ll look carefully as we
32.1 in May, indicating an expan- and uncertainty about the out- at a slower pace, according to bulls run roughshod............. B14 approach this July day.”
U.S. WATCH
The appeals court for now
withheld issuing its mandate to
give challengers time to seek
additional review, making it un-
clear when the administration
can begin applying its expanded
authority across the country.
KRISTOPHER RADDER/THE BRATTLEBORO REFORMER/ASSOCIATED PRESS
“To put people who are inside
of the United States, rather than
people at the border, into sum-
mary removal proceedings with-
out a right to counsel, that vio-
lates due process,” said Anand
Balakrishnan, senior staff attor-
ney at the American Civil Liber-
ties Union, one of the plaintiffs.
—Michelle Hackman
GEORGIA
Legislature Passes
Hate-Crimes Bill
The Georgia legislature ap-
proved a hate-crimes bill on
Tuesday, after it came under SO SWEET: Allison Maynard’s 3-year-old daughter, Emarie, samples one of the strawberries they picked Tuesday at a farm in Newfane, Vt.
pressure from a wide coalition
of civic groups and companies lina and Wyoming. spread civil unrest, Georgia has JUSTICE DEPARTMENT ant, as well as the states’ cur-
following the killing of Ahmaud Legislators in Georgia said stood strong for that which is rent thinking on joining a Justice
Arbery, an unarmed black man. they wanted to act quickly to right.” Next Step in Potential Department lawsuit or setting
The bill would increase the honor Mr. Arbery, who prosecu- Wanda Cooper-Jones, Mr. Ar- Google Suit Looms out on their own, the people
prison sentences in cases where tors say was fatally shot in Feb- bery’s mother, said in a state- said.
the victim was selected on the ruary after being pursued by ment that she was grateful her The Justice Department and The Wall Street Journal re-
basis of race, religion, sexual ori- three white men while running. son hadn’t died in vain. “I know a group of state attorneys gen- ported last month that both the
entation or other bias, and cre- Republicans dominate both he is still with us and this law is eral are scheduled to meet Fri- Justice Department and a group
ate a hate-crimes investigations chambers of the legislature, and evidence of that,” she said. day to talk about the next steps of states are likely to sue Google
database. Republican Gov. Brian the bill passed by large margins Georgia’s legislature has been in bringing a likely antitrust case on allegations that the company
Kemp said he would sign the with bipartisan support. considering a hate-crimes bill for against Alphabet Inc.’s Google, is using its dominant position to
legislation as soon as possible. “This is a defining moment 20 years. The version that according to people familiar with suppress competition, and are
Georgia is one of four states for Georgia,” said House Speaker passed Tuesday was approved the matter. well into litigation planning.
that don’t have a law punishing David Ralston, a Republican by the House in March 2019, Federal and state officials are Google has repeatedly denied
crimes based on bias, according from rural north Georgia. “It is a but had been stalled in the Sen- expected to meet virtually to that it runs its businesses in an
to the Justice Department. The moment where in the midst of ate since then. talk about the scope of any legal anticompetitive manner.
others are Arizona, South Caro- a global pandemic and wide- —Valerie Bauerlein complaint against the search gi- —John D. McKinnon
bined with EMC Corp., be-
cause of a rule requiring both
companies involved in a
capital structure by managing
cash flow, paying down debt
and making the right invest-
billion.
The demand for cloud com-
puting, which enables custom-
cloud services, making them a
priority for many technology
giants.
age with its purchase of EMC,
which at the time was the
largest technology merger in
spinoff to have operated con-
tinuously for five years to
qualify for such treatment.
ments.
VMware has a strong posi-
tion in the market for “hy-
ers to rent computing horse-
power rather than invest in
their own, has exploded in re-
The personal-computer
sector, on the other hand, no
longer enjoys the heady
history.
Included in that purchase
were several other businesses
Dell, founded by Michael
Dell in 1984, has become
known for its complicated fi-
brid” cloud, in which large
companies mix public cloud
services like those offered by
cent years.
Businesses such as startups
that couldn’t support in-house
growth it once did after the
market condensed into a few
key players and consumers
such as cybersecurity firm
RSA Security LLC, software-
development company Pivotal
nancial engineering over the Amazon.com Inc. and Micro- IT departments were among turned their attention to Software Inc. and VMware,
years. soft Corp. with their own pri- the earliest cloud adopters, smartphones and tablets. which has since bought Piv-
It went private in a 2013 vate networks. It has a mar- but now companies across al- That is partly what led Dell otal. Dell sold RSA to a pri-
leveraged buyout by Mr. Dell ket value of around $62 most every industry rely on to push further into data-stor- vate-equity firm.
and private-equity firm Silver
Lake that was one of the larg-
est on record. After buying
EMC, they undertook a com-
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THE WALL STREET JOURNAL.
Detective
Involved in
Killing Fired
BY ARIAN CAMPO-FLORES
The Louisville, Ky., police
chief on Tuesday officially
fired one of the three police
officers involved in the March
killing of Breonna Taylor, a
26-year-old black woman.
Ms. Taylor was asleep with
her boyfriend when the three
officers, who had secured a
no-knock warrant to search
her home in connection with a
drug case, broke through her
apartment’s front door. Her
boyfriend, thinking they were
intruders, shot at them, ac-
cording to his attorney. Offi-
cers responded by firing more
than 20 bullets, at least eight
of which hit and killed Ms.
Taylor, according to attorneys
for her family.
In a letter released by the
Louisville Metro Police De-
partment, Police Chief Robert
Schroeder said he was firing
Detective Brett Hankison ef-
fective Tuesday.
He said he took the action
after a pretermination hearing
held earlier in the day and his
review of an investigative file
by the department’s public in-
tegrity unit. Last Friday, Chief
Schroeder had notified Mr.
Hankison of his intention to
fire him.
In Tuesday’s letter, Chief
FBI Says Noose Didn’t Target Driver Democrats Balk at
BY LOUISE RADNOFSKY
AND ANDREW BEATON
The Federal Bureau of Inves-
tigation said Tuesday that a
noose found Sunday in the ga-
rage stall of Nascar driver
Bubba Wallace had been there
for months and didn’t appear to
target the lone black driver at
the highest level of the sport.
The rope’s discovery, involv-
ing a star black athlete who had
become a leading voice against
racism, jolted Nascar and the
country at a moment of height-
ened tensions over racial injus-
tice and race relations. Nascar
said it is still investigating why
a rope resembling a noose had
ever been in the garage in the
first place.
The FBI and U.S. Attorney
Jay Town of Alabama’s North-
ern District said agents re-
viewed video evidence showing
the presence of the noose
since at least October, well be-
fore the stall was assigned to
Mr. Wallace ahead of the
planned start of the race at
Talladega Superspeedway on
Sunday.
“Although the noose is now
Link to Extremist Group Alleged
In Charges Related to Protests
BY RACHAEL LEVY
Four men the government
says are part of a loose-knit
group of right-wing antigov-
ernment extremists will ap-
pear in federal court this week
to answer charges based on
their alleged actions targeting
law enforcement at protests
after George Floyd’s killing.
Steven Carrillo, an Air Force
sergeant, is expected to plead
not guilty to federal charges of
murder and attempted murder
of two Federal Protective Ser-
vice officers outside a court-
house in Oakland, Calif., on
May 29. According to his law-
yer, he will enter the plea from
the Santa Rita jail, where he is
being held. Court cases are
taking place over videoconfer-
ence due to the pandemic.
At the time of his alleged
crimes, demonstrators had
gathered nearby to protest Mr.
Floyd’s May 25 death at the
hands of Minneapolis police,
according to the Justice De-
partment. Mr. Carrillo also
faces state charges for alleg-
edly murdering a Santa Cruz
County sheriff’s deputy several
days later as authorities closed
in on him after a manhunt.
In Las Vegas, three men who
were indicted by a federal
grand jury last week for alleg-
edly conspiring to destroy gov-
ernment and private property
during protests in that city on
* * * * *
Schroeder said Mr. Hankison
violated procedures when he
“wantonly and blindly” fired
10 rounds into Ms. Taylor’s
apartment. The chief said Mr.
Hankison fired into a patio
door and window covered with
material that prevented him
from verifying whether some-
one was an imminent threat.
Some of the rounds entered
the neighboring apartment,
endangering the three people
there, the chief said.
“I find your conduct a
shock to the conscience,” Chief
Schroeder wrote. “I am
alarmed and stunned you used
deadly force in this fashion.”
Mr. Hankison was disci-
plined last year for reckless
conduct that injured an inno-
cent person, Chief Schroeder
said. The chief said Mr. Hanki-
son had 10 days to appeal his
termination—a move that
would result in a public hear-
ing.
An attorney for Mr. Hanki-
son didn’t respond to a re-
quest for comment.
Activists have called for the
three officers involved in the
shooting to be fired and crimi-
nally charged, and their de-
mands have become more in-
sistent in the wake of the
killing of George Floyd in Min-
neapolis May 25.
known to have been in garage
number 4 in 2019, nobody
could have known Mr. Wallace
would be assigned to garage
number 4 last week,” they said
in a joint statement. Nascar, in
a statement, referred to it as a
“garage door pull rope fash-
ioned like a noose.”
The incident has the poten-
tial to fuel criticisms that pro-
testers of racial injustice are
exaggerating problems, or
The rope was in
place months before
the stall was assigned
to Mr. Wallace.
even seeking to create them.
Although the federal investiga-
tion is complete, Nascar said it
would continue to look into
why the noose, a symbol of vi-
olence and racism against
black Americans for the evoca-
tion of lynchings of black peo-
ple that long took place across
the South, had been there for
Steven Carrillo
May 30, and for allegedly pos-
sessing Molotov cocktails, face
arraignments Wednesday in
federal district court.
The Justice Department
says the four men have ties to
a movement that calls itself
the boogaloo. The movement’s
adherents, mostly young white
males who often call them-
selves “boogaloo bois” (pro-
nounced “boys”), grew their
ranks in recent years on social
media, mainly Facebook, ac-
cording to researchers who
track extremist groups. Some
used the protests as an oppor-
tunity for violence.
Sarah Pollack, a spokes-
woman for Facebook, said the
company recently removed ac-
counts for Mr. Carrillo and an
alleged accomplice, as well as
for several boogaloo-con-
nected groups that have sup-
ported violence. She added
that the company is working
U.S. NEWS
Activists Expand Campaign Against Statues to Presidents, Others
Activists across the country
are targeting statues of former
presidents and other well-known
figures, escalating a campaign
that previously focused on Con-
federate generals and prompting
a national reckoning over the
value and meaning of historical
monuments.
As protests over racial injus-
tice continue in major U.S. cities,
activists have forcefully removed
statues and monuments honor-
ing historical figures who owned
slaves or participated in the op-
pression of minority groups.
In Portland, Ore., last week,
protesters tore down statues of
months.
Steve Phelps, Nascar’s pres-
ident, said Tuesday that Mr.
Wallace and his crew had no
involvement in the incident,
and that he had no regrets
about the way that Nascar re-
sponded. “It is fantastic to
hear from the FBI, definitively,
that there was not a hate
crime,” Mr. Phelps said. “To be
clear: We would do this
again.”
Nascar previously said that
a crew member had found the
noose, leading to Nascar secu-
rity being contacted.
Mr. Phelps had told report-
ers that only a few racing per-
sonnel would have had access
to the garage amid tight secu-
rity and restrictions imposed
by the novel coronavirus, and
that any suggestion that the
incident had been faked “is
something that personally of-
fends me.”
The FBI’s announcement
that the rope wasn’t evidence
of a hate crime comes after a
charged two days in which the
racing circuit expressed revul-
sion over the alleged incident.
Before the race at Talladega
with law enforcement.
President Trump, Attorney
General William Barr and oth-
ers on the right blamed occa-
sional violence during the na-
tionwide demonstrations on
left-wing elements, primarily
antifa—short for “antifascist,”
an activist movement that has
at times violently confronted
entities they say are authori-
tarian, racist or anti-Semitic.
None of the charged incidents
has been publicly attributed to
that group. Mr. Barr later ac-
knowledged that the boogaloo
group has played a role in
some of the violence.
The Anti-Defamation
League tracked multiple in-
stances of boogaloo actions at
the protests, but found no
similar evidence of antifa, said
Oren Segal, vice president for
ADL’s Center on Extremism.
Other researchers have backed
up that analysis.
The boogaloo appears to
have no leader or central
structure, but its followers of-
ten are white supremacists
who hold antigovernment
views, believe strongly in gun
rights and traffic in conspiracy
theories, researchers say.
Some of the boogaloo’s
more libertarian elements have
stood in solidarity with Black
Lives Matter protesters, and
have taken offense at being
lumped in with white suprema-
cists, said J.J. MacNab, a fellow
George Washington and Thomas
Jefferson, both of whom owned
slaves.
In Washington on Monday,
police blocked activists who
tried to pull down a statue of
Andrew Jackson (above). The
statue of the former president
on horseback has been a focus
of protests since the May 25 po-
lice killing of George Floyd in
Minneapolis. President Trump
has cited Andrew Jackson, a
wealthy landholder and slave
owner who rose to power using
populist rhetoric, as one of his
heroes. His legacy has come un-
der criticism for his advocacy of
was run on Monday, a day late
because of a weather delay, ri-
val drivers and their crews
marched on the track behind
Mr. Wallace’s car as a show of
solidarity with him.
The discovery of the noose
on Sunday came as the sport
was already grappling with
heightened tensions over race.
In the wake of the killing of
George Floyd, Mr. Wallace
emerged a leading activist in
the predominantly white
sport, calling for a ban on
Confederate flags at races and
driving a car with the message
“Black Lives Matter” on it.
Nascar had embraced Mr.
Wallace’s car, and imple-
mented a ban of Confederate
flags inside its venues.
Outside Talladega Super-
speedway, in Lincoln, Ala., on
Sunday, when the race was
originally scheduled, fans pa-
raded with Confederate flags
in defiance of the new rule.
Mr. Phelps, who did not
take questions on Tuesday,
said that the image of support
for Wallace was “indelible” for
him and that it would be on
his mind until the day he died.
May 29 video provided by the FBI shows someone in a van firing outside a courthouse in Oakland, Calif.
at the George Washington Uni-
versity Program on Extremism.
One shared belief, experts
who follow violent extremism
say, is that they are preparing
for a coming American civil
war, either with the state or
with the left; the white su-
premacists among them view
it as a race war.
“It’s people who want to mo-
bilize to violence,” said Clint
Watts, a fellow at the Foreign
Policy Research Institute and
former FBI agent who served on
a Joint Terrorism Task Force.
“This is their excuse to do it.”
Reopening businesses in the
early months of the pandemic
had been a rallying cry for the
boogaloo, with many showing
up at demonstrations over the
coronavirus lockdown—often
armed and wearing floral Ha-
waiian shirts, which represent
a distortion of boogaloo as “big
Wednesday, June 24, 2020 | A3
the Indian Removal Act, which
resulted in the forced removal of
Native Americans from their
lands.
The debate over monuments
has forced some public officials to
grapple with the country’s deep
legacy of racism and the degree
to which it casts a shadow on a
range of historical figures, many
of whom have long been written
about with reverence.
Ulysses S. Grant, for instance,
whose statue was toppled Friday
in San Francisco, led the Union
Army during the Civil War, advo-
cated arming black troops and
worked as president to secure the
GOP Policing Bill
BY KRISTINA PETERSON
AND NATALIE ANDREWS
WAS H I N GT O N — S e n a te
Democrats threatened to block
consideration of Republicans’
law-enforcement bill unless bi-
partisan negotiations over a
broader overhaul begin, dim-
ming hopes of passing legisla-
tion responding to the police
killing of George Floyd and
subsequent protests.
Democratic senators balked
Tuesday at starting debate
over the GOP bill crafted by
Sen. Tim Scott of South Caro-
lina, saying it was too “thread-
bare” to even serve as a start-
ing point for discussions.
“In place of real change and
accountability for police offi-
cers and departments, the Re-
publican bill proposes a slew
of studies and commissions,”
Minority Leader Chuck
Schumer (D., N.Y.) said Tues-
day.
Republicans said Democrats’
unwillingness to begin debate
luau.” They also use hashtags
such as #BigIgloo. Their name
stems from an inside joke
about the 1984 breakdancing
film “Breakin’ 2: Electric
Boogaloo,” researchers said.
Mr. Carrillo’s attorney, Jef-
frey Stotter, declined to com-
ment on the defendant’s alleged
connection to the boogaloo ide-
ology. But he expressed con-
cern about the group.
“We basically have an ex-
tremist ideology and group that
is based not overseas and not
in some foreign land but here
in the United States,” he said.
He added that the accusa-
tions against Mr. Carrillo are
inconsistent with his character
and history. He said Mr. Car-
rillo, 32 years old, was still
shaken by his wife’s 2018 sui-
cide, had suffered a traumatic
brain injury, and that he is
sorry for what happened. “I’d
KEVIN LAMARQUE/REUTERS
rights of former slaves in the
South. Before the war, he freed a
slave he had owned for more
than a year, and he managed a
Missouri farm where slaves were
forced to do much of the labor.
The efforts to pull down stat-
ues have drawn criticism from
Republicans, including President
Trump and Senate Majority
Leader Mitch McConnell (R., Ky.)
and from some Democrats.
Mr. Trump said Tuesday that
he planned to sign an executive
order to bolster laws that pro-
tect monuments.
— Andrew Restuccia
and Paul Kiernan
on the bill, set to come up for
a vote Wednesday, would likely
mean the collapse of efforts to
overhaul police laws.
“If they won’t even start it,
that tells me that this is al-
ready over,” Mr. Scott said.
Senate Majority Leader
Mitch McConnell (R., Ky.) said
the “horse-trading” over
amendments should begin
once the chamber has started
debating it, but Democrats
said it was clear that the sig-
nificant changes they sought
wouldn’t be approved.
Mr. Scott’s bill is narrower
than Democrats’ legislation,
which is expected to be ap-
proved in the House on Thurs-
day. The GOP bill seeks to col-
lect data around controversial
police practices, establish new
training programs and widen
the use of body cameras,
among other proposals, but
wouldn’t take more far-reach-
ing steps to curb officers’ legal
protections or change stan-
dards for prosecution.
FROM LEFT: FBI/AP; SANTA CRUZ SHERIFF’S OFFICE/AP
ask that people refrain from a
rush to judgment,” he said.
The three men in Nevada—
Stephen T. Parshall, aka
“Kiwi,” 35, Andrew Lynam, 23,
and William L. Loomis, 40—al-
legedly were bent on using fire
and explosives to destroy U.S.
government property and a
public utility facility, accord-
ing to a Justice Department
statement, which also said
they “possessed Molotov cock-
tails to throw at police in
downtown Las Vegas.”
An attorney for Mr. Par-
shall, Robert Draskovich, said
his client will plead not guilty.
Mr. Parshall denies any ties to
right-wing groups, including
the boogaloo, the lawyer said.
A public defender repre-
senting Mr. Lynam declined to
comment. An attorney for Mr.
Loomis didn’t respond to a re-
quest for comment.
A4 | Wednesday, June 24, 2020 P W L C 10 11 12 H T G K R F A M 1 2 3 4 5 6 7 8 9 O I X X ****** THE WALL STREET JOURNAL.

U.S. NEWS

Primary Voters Encounter Fewer Issues

BY ALEXA CORSE recent voting problems in
Georgia and other states, in-
States holding primaries cluding many more requests
Tuesday faced some com- for absentee ballots than in
plaints from voters, but noth- previous elections and diffi-
ing approaching the kind of culty finding poll workers to
logistical problems seen on re- staff in-person voting stations
cent voting days in states such because of coronavirus fears.
as Georgia and Wisconsin. In the Kentucky Senate
While relatively limited, is- contest, former Marine fighter
sues encountered by some pilot Amy McGrath, the Demo-
voters—including long waits cratic Party’s handpicked cen-
in Lexington, Ky., and delayed trist candidate, was hoping to
absentee ballots in New fend off Charles Booker, a pro-
York—highlighted the contin- gressive member of the state
ued challenges of administer- House. The winner will com-
ing elections during the coro- pete in November against Re-
navirus pandemic. The heavy publican Senate Majority
use of mail-in voting also Leader Mitch McConnell.
meant delays in determining New York’s primaries fea-
the winner of some key races. tured several marquee races, in-
Kentucky and New York had cluding one that pit House For-
presidential primaries on the eign Affairs Committee
ballot, along with tightly con- Chairman Eliot Engel against
tested Senate and House pri- fellow Democrat Jamaal Bow-
maries. They are dealing with man, who founded a middle
challenges that contributed to school in the Bronx. Mr. Bow-
man had the lead in early re- nett in the GOP primary runoff there was higher turnout than ers, while observing social
turns, while Rep. Alexandria Oc- for the House seat vacated by expected and that he was add- distancing, said Nore Ghiba-
asio-Cortez (D., N.Y.) cruised to current White House chief of ing more stations to speed the udy, county clerk spokesman.
victory against challenger Mi- staff Mark Meadows. Mr. process. A dramatic scene unfolded
chelle Caruso-Carbrera, a for- Meadows and President Trump Multiple Kentucky counties late Tuesday when the doors
mer CNBC journalist. In another had both endorsed Ms. Bennett opened just one in-person vot- were locked to the exposition
race, Rep. Carolyn Maloney (D., for the seat. Mr. Cawthorn ing site. A group of Kentucky center at 6 p.m., when polls
N.Y.) was in a tight contest with turns 25 this summer, the mini- Republicans and Democrats closed. A large group of peo-
hotel executive Suraj Patel. mum age to serve in the House. tried to force the state’s most ple stuck outside were ulti-
Virginia also held primaries Rep. Thomas Massie (R., populous counties to open mately let in after chanting
for U.S. Senate and House Ky.) easily won a primary more, but they lost their bid and banging the doors. Mr.
races, and North Carolina, against lawyer Todd Mc- in federal court last week. Ghibaudy said that the doors
South Carolina and Mississippi Murtry after drawing national In Louisville, voting-rights were reopened to allow any-
had primary runoff elections. attention—and barbs from Mr. groups had criticized the deci- one who was at the site to
In one closely watched Vir- Trump—for forcing House sion by officials in Jefferson vote and then locked at 6:30
ginia race, Dr. Cameron Webb, lawmakers to return to Wash- County—the state’s most popu- p.m. due to a judge’s order.
a former adviser to the Obama ington to vote on an economic lous county with a large popu- Kentucky added new voting
administration, won by a land- stimulus package. lation of African-American vot- options to reduce the need for
slide in a crowded field in the Voters reported waiting up ers—to open only one in-person voters to turn out in person.
state’s fifth district. Dr. Webb to two hours to cast ballots at polling location, compared with A deal between Democratic
will face Republican nominee the only in-person voting sta- the usual 231 voting sites. Gov. Andy Beshear and Secre-
Bob Good, who defeated in- tion in Lexington at University Jefferson County election tary of State Michael Adams, a
cumbent Rep. Denver Riggle- of Kentucky’s Kroger Field officials believed the voting Republican, allowed any voter to
man in a GOP nominating con- football stadium, according to station, at the Kentucky Expo- cast an absentee ballot for the
vention this month. local news reports. Fayette sition Center on the state fair- primary, and the state added
In North Carolina, Madison County Clerk Don Blevins said grounds, would be large early in-person voting starting
Cawthorn defeated Lynda Ben- late Tuesday morning that enough to accommodate vot- two weeks before primary day.

Michigan’s Hard Times Cloud Election Outlook President

BY JOHN MCCORMICK Focuses
Bad news has piled up in
Muskegon County along Lake
Michigan’s eastern shore in re-
On Border,
cent months, from canceled
summer festivals and tour-
boat visits to layoffs at manu-
Statues
facturers such as Northern BY ALEX LEARY
Machine Tool Co.
Steve Olsen, that company’s PHOENIX—President Trump
co-owner and president, said delivered a fiery speech to a
he has had to lay off the major- full house Tuesday, raising
ity of his 33 employees since fears about voter fraud and
the start of the coronavirus denouncing protesters for try-
pandemic that has driven the ing to topple statues as he
KEITH KING FOR THE WALL STREET JOURNAL (2)

county’s unemployment rate to sought a boost in a state that

29.3% from 3.8% before the cri- has trended more Democratic
sis hit in March. He figures it and faces concerns about his
will be at least a year until the standing in other states that
family-owned business is back drove his 2016 victory.
to that level of staffing. Coming off a smaller-than-
“It’s been pretty devastat- expected Saturday rally in
ing,” said Mr. Olsen, whose Oklahoma, Mr. Trump on Tues-
company supplies the automo- day inspected the U.S.-Mexico
tive and aerospace industries, border wall and addressed
like many others in the area. young conservatives at a
The impact of both the pan- packed megachurch in Phoenix.
demic and the economic A farmers market in Muskegon, Mich. The state has the third-highest jobless rate and has seen over 6,000 coronavirus-related deaths. “The radical left, they hate
downturn that followed lock- our history,” Mr. Trump said,
downs is widespread in Michi- Battleground-state Unemployment rate, 2000–20 delivering a speech that
gan, a Wall Street Journal unemployment rates, May echoed his law-and-order
analysis of unemployment and 30% theme from Saturday’s rally in
death data in more than 3,100 Mich. 21.2% Tulsa, Okla. “They hate our
U.S. counties shows. 25 values and they hate every-
Almost a quarter of Michi- Fla. 14.5 thing we prize as Americans.”
gan’s counties are among the 20 Muskegon Co., Mich. During a stop in San Luis
top 20% nationally for both in- earlier Tuesday to see the bor-
Pa. 13.1
creases in unemployment from 15 der wall, Mr. Trump said he
a year earlier and deaths per was making good on his 2016
1,000 residents linked to N.C. 12.9 campaign pledge, though much
10
Covid-19. Only Massachusetts of what has been done is re-
and New Jersey saw a greater Wis. 12.0 5 placing existing structures.
proportion of counties in both He said he would impose a
U.S. Avg: U.S. avg.
categories. Ariz. 8.9 0 harsh crackdown on people try-
Economic fallout from the 13.3% ing to destroy historical statues
2000 '05 '10 '15 '20
pandemic makes for a volatile Note: National rate is seasonally adjusted, county rate is not. and monuments. “These aren’t
political situation in Michigan, Sources: Bureau of Labor Statistics; Federal Reserve Bank of St. Louis protesters. These are agita-
a key battleground that Presi- tors,” he said, returning to the
dent Trump won in 2016 by states where the tourism in- unemployment and Covid-19- theme again at the rally.
fewer than 11,000 votes, or 0.22 dustry has been crushed by the related death rates include In- Standing at the towering
percentage point, the narrow- pandemic. Among the nation’s diana, Ohio, New Hampshire, steel structure under heat sur-
est outcome in the nation. top 50 counties for unemploy- Alabama, Mississippi, Pennsyl- passing 100 degrees, the presi-
Muskegon was among the ment in April—the most recent vania and New York. dent said the wall is “unclimb-
counties in the state decided by data available at the local Muskegon County, with a able,” adding, “Maybe
less than 2 percentage points, level—32 are in Michigan. population of more than somebody can get an extraor-
with Democrat Hillary Clinton The state also has recorded 173,000, recorded 43 Covid-19- dinarily long ladder.”
narrowly winning it in 2016. the eighth-highest rate of related deaths as of June 17. Inside Dream City Church in
The RealClearPolitics aver- deaths per 1,000 residents tied Stephen Gawron, mayor of Phoenix, about 3,000 people
age of state polls has the pre- to Covid-19, with more than the county seat of Muskegon, sat shoulder-to-shoulder. The
sumptive Democratic nominee, 6,000 fatalities so far. In re- said his city typically wel- Kellie and Patrick Lemke with their children in Muskegon. crowd roared when Mr. Trump
former Vice President Joe Bi- sponse, Democratic Gov. comes 800,000 to one million They have both lost their jobs and plan to move in with family. called the coronavirus “kung
den, leading Mr. Trump by 8 Gretchen Whitmer imposed people to its downtown from flu,” a slur critics say is racist.
percentage points in Michigan. some of the most stringent so- May through mid-September, done,” he said. unemployment assistance, food Very few people wore masks.
With less than five months cial-distancing requirements but local businesses won’t Kellie and Patrick Lemke stamps and the extra $600-a- Mr. Trump also went on an
before the election and econo- in the country. benefit from those crowds this have both lost their jobs. Be- week benefit for unemployed extended riff about mail-in
mists predicting a prolonged “It’s Depression-level unem- summer, because downtown fore mid-March, she was workers, a benefit that is set to ballots, alleging fraud and
downturn, voters by November ployment,” said Patrick Ander- festivals and lake cruises have working in a medical office as expire at the end of July. An raising that idea that ballots
may turn to whichever candi- son, chief executive of Ander- been canceled. part of a training program and extension of the benefit is be- could be printed by “foreign
date they believe can best pull son Economic Group, a Mr. Gawron, who has spent he was a temporary worker at ing debated as Congress con- powers.” There is no evidence
the economy out of decline consulting firm based in East most of his life in the city, said a manufacturing plant. siders a new stimulus package. of large-scale fraud with mail-
while addressing concerns Lansing. “The economy is going he remains optimistic because “It’s been an emotional To save money, Ms. Lemke in ballots, and some states are
about the spread of the virus. to get better, but we are talking he has watched his community roller coaster,” said Ms. Lemke, said her family plans to move turning to them as a safer al-
Michigan had the nation’s about a very deep hole.” get through hard economic a mother of five in her late 20s. out of their $875-a-month ternative as the coronavirus
third-highest unemployment Other states with the larg- times in the past. “We will “It’s going to take a while for rental property at the end of spreads. “We can safely go to
rate in May—21.2%—behind est proportions of counties move beyond this because his- us to get back on our feet.” September and in with family the polls and vote during
only Nevada and Hawaii, two ranked in the top 20% for both torically that is what we have The family is getting by with members. Covid-19,” Mr. Trump said.

Prosecutor to Describe Pressure to Go Easy on Trump Ally Stone

BY ARUNA VISWANATHA A jury convicted Mr. Stone in
AND BRENT KENDALL November of lying to Congress
and witness tampering, and
A prosecutor in the criminal prosecutors who had handled
case against former Trump ad- the case initially recommended
viser Roger Stone said supervi- he serve more than seven years
sors repeatedly told him Mr. behind bars. A day later, the de-
Stone would receive special partment reversed itself and
treatment “because of his rela- asked for less time. Mr. Zelin-
tionship with the president,” sky and the three other prose-
according to prepared remarks cutors withdrew from the case
posted Tuesday before a House as a result.
hearing. Mr. Stone was ultimately sen-
The prosecutor, Aaron Zelin- tenced to around three years in
sky, said the U.S. attorney in prison. However, the judge criti-
Washington, D.C., was “receiving cized what she described as the
heavy pressure from the highest Justice Department’s “unprece-
levels” of the department to “cut dented” turnabout and said
Stone a break.” In an episode prosecutors were right to en-
that roiled the agency, senior of- dorse a sentence within the
ficials earlier this year ordered guidelines, as they do in the
prosecutors to seek a more le- most criminal cases.
nient punishment than sentenc- The remarks were posted as
ing guidelines suggested. the Justice Department has
come under scrutiny this week president. Mr. Trump had cutors in the case to…water in two areas of enforcement. Be-
for Attorney General William tweeted that the initial recom- down and in some cases outright cause marijuana commerce is
Barr’s abrupt Friday night dis- mendation was “horrible,” hours distort the events that trans- unpopular with Mr. Barr, the de-
missal of the U.S. attorney in before it was reversed. pired in his trial and the crimi- partment forced companies in
Manhattan, Geoffrey Berman. “The attorney general deter- nal conduct that gave rise to his 10 proposed mergers in the can-
The House Judiciary panel’s mined the high sentence pro- conviction,” Mr. Zelinsky said. nabis industry to comply with
hearing, “Political Interference posed by the line prosecutors in The prosecutor said he wasn’t unduly lengthy and expensive
and Threats to Prosecutorial In- the Roger Stone case was exces- himself involved in discussions government requests for docu-
dependence,” is expected to fea- sive and inconsistent with simi- with political leadership about ments and information, Mr.
ture testimony Wednesday from lar cases,” the spokeswoman, the case but said the motiva- Elias alleged.
both Mr. Zelinsky and John Kerri Kupec, said, adding that tions were relayed to him by He also alleged the depart-
Elias, a 14-year Justice Depart- Mr. Barr had directed that the other supervisors. “I was told ment had improper motivations
ment official now serving in the sentencing be left to the discre- that…the U.S. Attorney’s sen- for investigating four auto mak-
antitrust division. tion of the judge. tencing instructions to us were ers that had reached a tailpipe-
The chairman of the panel, In a 13-page statement, Mr. based on political consider- emissions deal last summer with
New York Democratic Rep. Jerr- Zelinsky, who remains employed ations. I was also told that the the state of California.
old Nadler, has said he expected at the Justice Department and is acting U.S. Attorney was giving “The Department strongly
Mr. Berman to testify before the a federal prosecutor in Mary- Stone such unprecedentedly fa- disagrees with Mr. Elias’s claim
committee at a later date. land, described the handling of vorable treatment because he that the Antitrust Division
A Justice Department spokes- the sentencing recommendation was ‘afraid of the President,’ ” acted inappropriately in any in-
woman defended the agency’s as “unusual and unprecedented.” Mr. Zelinsky said. vestigation,” a spokeswoman
decision regarding Mr. Stone’s “What I saw was the Depart- On the antitrust front, Mr. said. “Mr. Elias does not pres-
sentence as not driven by re- ment of Justice exerting signifi- Elias’s written testimony alleges ent any evidence in support of
quests for leniency from the cant pressure on the line prose- improper political interference his allegations.”
THE WALL STREET JOURNAL. Wednesday, June 24, 2020 | A5

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A6 | Wednesday, June 24, 2020 * ***** THE WALL STREET JOURNAL.

U.S. NEWS

Threats on Public-Health Officials Rise Cellphone

Controls
BY JEFF HORWITZ

Public-health officials around

the country are facing intimi-
Urged for
dation both online and off.
Opponents of social-distanc-
ing rules are using Facebook
Agencies
Inc. to organize and broadcast BY BYRON TAU
protests at the homes of
health officials, sometimes us- WASHINGTON—A national
ing violent rhetoric, in cam- trade group representing the
paigns that health authorities digital advertising industry
say amount to harassment. has advised member compa-
Some of the campaigns nies to put stricter controls on
against health officials also ap- consumer mobile-phone loca-
pear to violate the social-media tion data they provide to gov-
giant’s rules against spreading ernment units such as public-
coronavirus misinformation, by health authorities and law-en-
encouraging people to defy forcement and intelligence
public-health directives on agencies.
mask use that are based on The Network Advertising
widely accepted scientific think- Initiative on Tuesday released
ing on combating the virus. a new set of best-practices
“Hey public health officers recommendations designed to
JOHN G. MABANGLO/EPA/SHUTTERSTOCK

you’re in our cross hairs,” a address the growing use of

group of reopening advocates consumer-location data by
calling themselves the Freedom government entities, advising
Angels wrote recently. In a live advertising companies to pre-
video, one of its leaders, Denise vent governments from trying
Aguilar, demanded the repeal to identify individuals in such
of mask-wearing mandates and data sets as a condition of
called public-health officers providing the data.
“public enemy number one.” NAI, which has more than
Facebook told The Wall 100 member companies in the
Street Journal that live-stream- The Freedom Angels demonstrated for a complete reopening of California outside the capitol building in Sacramento on May 7. digital-advertising industry,
ing protests held at health offi- also recommended that com-
cers’ homes violates its privacy gels or similar groups that ad- death threats started last public except children under more than 4,000 members. panies that collect or sell loca-
rules and removed three such vocated for protesting in ways month, during a Covid-19 Face- age 2 and those who have Neither Dr. Acton nor Dr. tion data drawn from mobile
posts from the group. Face- that violated health orders. book Live public briefing when trouble breathing. Quick could be reached to devices should provide more
book’s rules ban harassment “Certainly saying that so- someone very casually sug- In Orange County, Calif., comment. robust consumer disclosure
and doxxing, the practice of cial distancing is not effective gested that I should be shot.” protesters used Facebook to Kat DeBurgh, head of the about what their clients intend
putting people’s personal infor- to help limit the spread of cor- In the debate about reopen- target the county’s chief California Public Health Offi- to do with the data and dis-
mation on the internet so they onavirus, we do classify that ing the U.S., masks have health officer, Nichole Quick, cers Association, said social- close if law-enforcement or
can be harassed by others. as harmful misinformation and emerged as a flashpoint, with after her department issued a media fueled harassment of other government entities are
Along with other members we take that down,” Facebook some saying mandates either a requirement for residents to public-health officers had con- buying or using the data.
of the group, she has been founder and Chief Executive manifestation of the nanny wear face coverings outside tributed to the burnout of pub- “Ad tech companies have
live-streaming protests out- Mark Zuckerberg said in an their homes when social dis- lic-health officers already data that can be a powerful re-
side public-health officers’ April interview. tancing wasn’t possible. Dr. working long hours during the source for the public good if
homes to their 22,000 follow- Some of the central argu- Quick resigned this month, pandemic. Seven of California’s they follow this set of best
ers. The group has said it is ments of mask opponents—
‘The death threats and the county backed down, 61 public-health officers have practices for consumer pri-
committed to keeping its pro- such as claims that masks started last month,’ recommending face coverings stepped down since the begin- vacy,” Leigh Freund, NAI pres-
tests peaceful. don’t offer significant protec- instead of requiring them. ning of the crisis, she said, one ident and chief executive, said
The company hasn’t taken tion from the virus or lead to
one Los Angeles In that instance, the protest- directly because of protests tar- in a written statement.
action on other posts in which potentially fatal oxygen depri- County leader says. ers used Facebook to share pic- geting her personally. Another NAI’s new guidelines are
the group seeks to recruit pro- vation—rely on information tures of a banner depicting Dr. is under around-the-clock pro- only advisory, however they
testers for future events or deemed false by Facebook fact Quick with a Hitler mustache tection from the county sheriff represent one of the first in-
promotes claims that wearing checkers. While that designa- in front of a swastika and because of credible threats. dustry efforts to grapple with
masks can cause oxygen depri- tion slows the spread of the state or a slippery slope to- spread allegations that her The outpouring of anger to- the privacy implications of
vation. In April, as reopen pro- original post on Facebook, it ward increasingly totalitarian mother had been photographed ward public-health officers has government acquisition of
tests began in Michigan, Face- doesn’t affect nearly identical conditions. outdoors without a mask. caught the profession by sur- consumer-location data drawn
book pledged it would remove claims in reopen protesters’ There is no evidence that Ohio’s top public-health of- prise, said Lori Freeman, chief from cellphones. The data is
posts that encouraged people new posts and live videos. the masks are harmful for ficial, Amy Acton, also re- executive of the National As- often taken from ordinary cell-
to attend protests in violation “An increasing number of adults, and scientists have re- signed this month after armed sociation of County and City phone apps such as weather
of public-health orders or pro- public-health officials, across ported such measures are es- protesters showed up at her Health Officials. “This has tra- and games, for which consum-
vided false information about the country—myself included— sential for society to reopen house to register their displea- ditionally been a very trusted ers have explicitly allowed
coronavirus precautions. are threatened with violence without a spike in disease and sure with her role in the community partner role,” she their location to be logged.
A spokeswoman didn’t re- on a regular basis,” said Bar- deaths. The U.S. Centers for state’s efforts to stop the said. Public-health officers are The Wall Street Journal has
spond to questions about why bara Ferrer, director of Los Disease Control and Preven- spread of the coronavirus. trying to take criticism of vi- previously reported that such
Facebook wasn’t taking down Angeles County’s public-health tion says everyone should Facebook groups explicitly de- rus restrictions into account, data has long been of interest
posts from the Freedom An- department. “In my case, the wear cloth face coverings in voted to her firing gathered she said. to U.S. intelligence agencies
surveilling targets abroad. In
recent years, the U.S. govern-

Mandate to Disclose Hospital Rates Upheld

BY STEPHANIE ARMOUR had argued that the rule com-
pelling the hospitals to publish
The American Hospital Asso- their negotiated rates with in-
ciation lost its legal bid to stop surers violates the First
the Trump administration from Amendment and goes beyond
requiring hospitals to disclose the statutory intent of the Af-
secret rates they negotiate with fordable Care Act.
insurance companies, a victory President Trump welcomed
for one of President Trump’s the decision, tweeting on Tues-
central health-policy initiatives. day: “BIG VICTORY for pa-
The ruling Tuesday from tients—Federal court UP-
Judge Carl Nichols with the HOLDS hospital price
U.S. District Court for the Dis- transparency. Patients deserve
trict of Columbia was a sum- to know the price of care BE-
mary judgment, meaning the FORE they enter the hospital.
case didn’t go to trial although Because of my action, they
it can be appealed. He was ap- will. This may very well be big-
pointed by Mr. Trump. ger than healthcare itself. Con-
The hospital trade group gratulations America!”
AHA’s senior vice president,
Melinda Hatton, said the group
plans to appeal.
“The proposal does nothing
to help patients understand
their out-of-pocket costs,” she
said. “It also imposes signifi-
cant burdens on hospitals at a
time when resources are
stretched thin and need to be
devoted to patient care.”
She said hospitals and
health systems have supported
efforts to provide patients with
information about the costs of
their medical care, but this rule
isn’t the right way to achieve
the goal.
“This was a disingenuous
self-serving lawsuit designed to
keep patients in the dark,”
tweeted Centers for Medicare
and Medicaid Services Admin-
istrator Seema Verma. CMS
promulgated the rule.
The rule could upend the $1
trillion hospital industry be-
cause it unveils rates long
guarded as trade secrets.
It requires hospitals to pub-
licize the rates they negotiate
with individual insurers for all
services, including drugs, sup-
plies, facility fees and care by
doctors who work for the facil-
ity. It is scheduled to take ef-
fect in January 2021, with hos-
pitals facing fines of up to $300
a day if they don’t disclose ne-
gotiated rates.
The price-disclosure require-
ments would cover the more
than 6,000 hospitals that ac-
cept Medicare.
The initiative represents the
Trump administration’s grow-
ing effort to shift away from
rolling back the Affordable
Care Act and put its own stamp
on health care instead. Central
to that strategy is the notion
that more price transparency
will inject greater competition
into the market and lower
costs.
—Jess Bravin
contributed to this article.
ment has grown interested in
such data for law-enforcement
purposes. The Journal re-
ported this year that both the
Department of Homeland Se-
curity and the Internal Reve-
nue Service began buying such
data in 2017 from a vendor
called Venntel Inc.
In the case of the IRS, the
agency’s criminal investiga-
tions division was trying to
use the tool to identify and
track individual suspects.
After the outbreak of
Covid-19, government interest
in mobile-phone location infor-
mation surged, as public health
authorities looked for ways to
do contract tracing on those ex-
posed to the virus and measure
how effectively social-distanc-
ing orders were being followed.

States See cord number of cases Tuesday.

The 3,591 new Covid-19 cases
bring the state’s total to more
make it clear.” Later on Air
Force One en route to Phoenix
with the president, Ms.

Virus Cases than 58,000, according to data

from the Department of Health
Services.
McEnany said he “was making
a serious point but he was us-
ing sarcasm to do that.”

Hit Records The state became one of the

country’s largest coronavirus
hot spots weeks after Gov.
The Trump administration
strategy has largely put the
burden for testing on states.
Doug Ducey, a Republican, re- Most testing decisions are
Continued from Page One moved stay-at-home orders. handled at the state and local
Citing the rise in cases and Last week, Mr. Ducey reversed level. The administration said
the coming July Fourth week- course to allow local govern- its role will be to provide
end, Mr. Abbott said he would ments to mandate use of swabs and tubes.
expand “the ability of mayors masks in public. The Centers for Disease Con-
and county judges to impose New York has reached its trol and Prevention and the De-
restrictions on outdoor gath- lowest percentage of positive partment of Health and Human
erings of over 100 people,” Covid-19 test results since Services have reviewed the
KEVIN DIETSCH/PRESS POOL

which previously applied to March, but health officials are state plans on testing and are
gatherings over 500. closely monitoring hot spots providing technical assistance
He directed the Texas where higher rates of infection and support, HHS officials said.
Health and Human Services persist, including some lower- Dr. Fauci said one confusing
Commission to enact emer- income neighborhoods in New issue is the virus’s range—a-
gency rules that would in- York City. The city moved this symptomatic to mild in some
crease health and safety pro- week into phase two of its re- people, fatal in others—so that
tocols at child-care centers, opening plan, allowing work- A worker disinfected a table Tuesday before top U.S. virus expert Dr. Anthony Fauci testified to Congress. some young people in particu-
after data showed that those ers to return to offices and lar tend to treat it casually.
centers are a source of trans- outdoor dining to resume. tion’s leading infectious-dis- Adm. Brett Giroir, who is public-health doctors after Mr. “You can spread the infec-
mission. In neighboring New Jersey, ease expert, and other U.S. coordinating coronavirus test- Trump said at a rally in Tulsa, tion even if you don’t get sick,
Mr. Abbott and Florida Gov. Gov. Phil Murphy, a Democrat, health officials defended the ing, said he expected the U.S. Okla., on Saturday that he and you can infect someone
Ron DeSantis, both Republi- said that amusement and wa- government’s response to the to be able to carry out 40 mil- called for lower levels of test- who infects someone who in-
cans, outlined plans to step up ter parks in the hard-hit state pandemic Tuesday, saying lion to 50 million tests ing because higher numbers of fects someone very vulnerable,
enforcement of social-distanc- will be allowed to open at 50% they planned to increase test- monthly by fall. So far, 28 mil- infections look bad. White such as your grandmother,” he
ing guidelines by revoking or capacity. Staff and guests will ing over the summer and lion tests total have been House press secretary Kayleigh said.
suspending liquor licenses of be required to wear face cov- hadn’t been told by President done, now averaging about McEnany said at a briefing Federal health officials said
establishments violating lim- erings. Playgrounds in the Trump to slow down. 500,000 day. Public-health ex- Monday that the GOP president they were looking ahead to fall,
its. Florida, which has re- state will open on July 2. “None of us have ever been perts said the U.S. must con- was joking and didn’t give his when cases are expected to in-
ported more than 103,000 Concerns over the coronavi- told to slow down on testing,” duct at least six million tests a staff such an order. crease.
cases of coronavirus and more rus prompted the University of Dr. Fauci said in testimony be- week if the country is to re- Mr. Trump, asked Tuesday “CDC has begun to prepare
than 3,200 deaths, has seen a Michigan on Tuesday to pull fore a congressional commit- open safely. outside the White House for the months ahead,” said
recent increase in coronavirus out as host of a planned presi- tee. “It’s the opposite. We’re The government’s approach whether he was kidding with CDC Director Robert Redfield,
cases among younger people. dential debate in October. going to be doing more testing to testing has come under scru- the remark, said: “I don’t kid. adding that it could challenge
Arizona also reported a re- Dr. Anthony Fauci, the na- and not less.” tiny from House Democrats and Let me just tell you. Let me the health-care system.
THE WALL STREET JOURNAL. Wednesday, June 24, 2020 | A7

WORLD NEWS
Cases Climb as European Capitals Open
Public-health officials
worry about a second
wave of infections;
Berlin reimposes curbs
BY BOJAN PANCEVSKI

BERLIN—A rebound in
Covid-19 cases in Berlin and
elsewhere in Europe is fueling
concerns among public-health
authorities about a second
wave of infections following
the lifting of lockdowns across
the continent.
In Berlin, daily new corona-
virus cases shot back up to
levels last seen in April after
weeks of steady fall. The Ber-
lin state government on Tues-
day said it would start impos-
ing fines for violations of a
mask-wearing requirement

KAY NIETFELD/DPA/ASSOCIATED PRESS

that has been in place for
weeks but not enforced.
In Portugal, authorities
blamed a surge in new infec-
tions on parties and other so-
cial events, and the capital,
Lisbon, on Monday banned all
gatherings of more than 10
people and ordered bars and
shops to close at 8 p.m.
The rebounds in the two High-school graduates and relatives kept their distance from other families during a graduation ceremony on Tuesday in Berlin, which has seen a rise in coronavirus infections.
capitals, while relatively small
and not yet visible across Eu- cerning for scientists because it Andreas Geisel, Berlin’s in- Confirmed daily Covid-19 Some scientists think the public gatherings, as other
rope, could be cause for con- appears relatively spread out terior minister, in a broadcast cases in Berlin increase in cases needn’t lead German state governments
cern in large U.S. cities such as across the city, which could interview blamed the rise in to a devastating second wave have done in recent weeks.
300
New York that are slowly re- make it harder to contain. infections on “testosterone- of infections, but shows that Germany’s main epidemiol-
opening after being hit hard Scientists think the in- driven young men,” a refer- cases can rise again when re- ogy institute, the Robert Koch
by the virus. crease could have several fac- ence to the proliferation of il- strictions are lifted, even after Institut, said on Tuesday that
Berlin was never a corona- tors, including a rise in illegal legal rave parties in the city’s falling for weeks, forcing au- the country’s closely watched
virus hot spot and infections parties in recent weeks, large parks after dark since the clo- 200 thorities to temporarily reim- coronavirus reproduction
are rising from a very low and regular weekend protests sure of Berlin’s clubs in March. pose some measures to keep number—a measure of how
base, making it hard to discern where police have struggled to Berlin Mayor Michael Mül- flare-ups in check. fast it spreads in the popula-
whether the surge is part of a enforce social-distancing rules, ler said anyone caught not Governments and societies tion—had risen to 2.88 from
sustained trend or a tempo- and more isolated outbreaks in wearing a mask in designated will have to get used to such below one, largely because of
rary blip. Daily new cases in religious and migrant commu- areas such as shops and com- 100 back-and-forth and should the meatpacking-plant cluster.
Berlin hit a post-lockdown nities. muter trains would be fined continue to practice and en- Lothar Wieler, president of
peak of 130 on Friday after One rally in support of between €50 and €500 ($57 to force basic prevention rules if the institute, said continued
falling into single digits in Black Lives Matter drew criti- $570). new lockdowns are to be testing, watching for the ap-
early May. cism after 15,000 participants, “There are residential areas avoided, said Jonas Schmidt- pearance of Covid-19 symp-
Authorities in western Ger- many of them not wearing where infection numbers are 0 Chanasit, a professor of virol- toms, maintaining physical
many put the town of Güter- masks and standing shoulder rising very quickly if residents March April May June ogy at Hamburg University. distance and wearing masks in
sloh and a neighboring county to shoulder, filled the city’s Al- are careless and don’t follow Source: State Office for Health and Social Affairs This could be a challenge some settings were key to
under a new lockdown on exanderplatz square on June 6. the rules,” he said. “In this re- for authorities that have come avoiding a second wave of in-
Tuesday after some 1,500 peo- “We must assume that opening phase, we need to the city are under a loosely under economic and political fections.
ple connected to a local meat- gatherings of people are pos- show responsibility, not just enforced quarantine after pressure to roll back confine- “I am confident that we can
processing plant tested posi- ing a grave potential risk for for ourselves but for our more than 100 people tested ment measures. On Tuesday, avoid a second wave if we use
tive for the virus. Covid-19 infections,” a spokes- neighbors.” positive for coronavirus. The while beginning enforcement the tools that we have already
While Berlin’s renewed out- man for the health department At least two residential lockdown prompted protests of mask-wearing, Berlin also mastered, even without ther-
break is much smaller, it is con- of the Berlin government said. blocks in several districts of from residents. lifted some constraints on apy or a vaccine,” he said.

French Are Slow to Adopt

New Covid-Tracking App
BY SAM SCHECHNER

PARIS—France was one of

the first large Western coun-
tries out of the gate in the
scramble to build mobile ap-
plications to help track expo-
sure to the new coronavirus. It
is off to a slow start.
With other countries now
following suit, its struggle
casts a shadow on the poten-
tial utility of such apps to help
slow the spread.
StopCovid, as France’s app
is known, has been activated
1.8 million times since June 2,
French officials said on Tues-
day, corresponding roughly to
2.7% of the population, one of
LUDOVIC MARIN/AGENCE FRANCE-PRESSE/GETTY IMAGES

the lowest rates in Europe. The

French app has led to the noti-
fication of just 14 people that
they may have been exposed to
the virus, the officials said.
While it is still early,
France’s experience provides a
cautionary tale for countries
looking to adopt contact-trac-
ing apps. Part of the problem,
officials say, is that after
months of confinement, peo-
ple in areas where the virus is
declining may have less incen-
american beauty
tive to avail themselves of Only 14 people have been notified by the French StopCovid app enoch bolles
tools that could help protect that they may have been exposed to the coronavirus.
against future waves of it.
“The epidemic is declining population, in just one week af- use of its app after complaints American artist. Cover illustration.
faster than expected, and the ter its launch—among the fast- from privacy regulators, who Early pin-up. This original oil on canvas
fears attached to it are reced- est takeup rates among big Eu- said the low incidence of the was painted by American illustrator
ing even faster,” explained ropean countries so far. German disease no longer made the app Enoch Bolles. One of the earliest and
Cédric O, France’s junior min- officials say they are happy worth the encroachment on in- most successful painters of pin-up girls,
ister for digital affairs, noting with the figures, though they dividual privacy it required. Bolles was celebrated for his vibrant Art
that tens of thousands of peo- add that it is too soon after the In Latvia, where coronavi- Deco beauties. Featuring a scantily clad
ple a day have recently started launch to determine how effec- rus cases have receded, the blonde thumbing through her little black
uninstalling StopCovid. tively the system is operating. Apturi Covid app has reached book, this work was created for the cover
In light of StopCovid’s low Moreover, while one study nearly 80,000 downloads, ac- of the popular pulp magazine Pep Stories.
numbers, French officials say said it would take adoption by counting for between 4% and Signed (lower right). Circa 1930. Canvas:
they aim to study how people more than 60% of the popula- 5% of the population, said Ing- 24”h x 18”w; Frame: 29”h x 23”w. #31-1369
are using the app, and will begin tion for such an app to effec- mars Pukis, a board member
broader campaigns to encourage tively stop an epidemic, it also for mobile-network operator
its use after the summer holi- said such apps can provide in- LMT, which helped develop
days, when they say they worry cremental help to human con- the app. The app has yielded
a second wave of the epidemic tact tracers at far lower one confirmed exposure notifi-
could surge in Europe. “With takeup rates—a position cation, Mr. Pukis said.
growing fear, the app’s down- echoed by French officials. Regardless of the slow start,
load rate will grow,” Mr. O said. Still, there are signs France developers of the apps say
To be sure, the jury is unde- isn’t alone in seeing low adop- now is a good time to develop
cided on the adoption and effi- tion levels. Italy’s app recently and hone them in preparation 622 Royal Street, New Orleans, LA • 877-677-2801 • ws@rauantiques.com • msrau.com
cacy of such contact-tracing crossed three million down- for a second coronavirus wave.
apps. Germany on Tuesday said loads, which covers around 5% “The logic hasn’t changed,” Since 1912, M.S. Rau has specialized in the world’s finest art, antiques and jewelry.
it has seen 12 million down- to 6% of its population. Den- Mr. Pukis said. “We are quite Backed by our unprecedented 125% Guarantee, we stand behind each and every piece.
loads of its new Corona-Warn- mark’s app is at 300,000 down- firm in our belief that if the
App, which would account for loads or roughly 5%. Norway, second wave comes it will be
more than 14% of the country’s for its part, recently suspended very useful.”
A8 | Wednesday, June 24, 2020
Latin America
Is Pandemic’s
Grim New Center
Brazil, which pushed
to reopen, is on pace
to top U.S. death toll;
distrust in Mexico
BY LUCIANA MAGALHAES
AND JUAN FORERO
RIO DE JANEIRO—In early
May, the new coronavirus
swept through the crowded
homes in Alley 24 of Rocinha,
one of the largest of Brazil’s
favelas, or slum communities.
Twenty of the 35 members
of Ivanete Dias de Carvalho’s
extended family who live
crammed together here came
down with symptoms of
Covid-19, from high fevers to
fluid-filled lungs. Few were
able to get a test. Her 65-year-
old aunt died.
And the disease rolls on.
Across Rio, the official number
of deaths is approaching 6,000.
For Brazil, with a population
of 210 million, that number is
more than 51,000, with 1.1 mil-
lion people infected—a toll
second only to the U.S. The
real tally of dead is almost cer-
tainly much higher, public-
health experts say.
Latin America is the grim
new center of the pandemic,
with more than two million
people infected and 100,000
deaths. The region has 8% of
the world’s population, but ac-
counted for 47% of coronavi-
rus deaths recorded in the
past two weeks.
Infectious-disease experts
fear Latin America is a harbin-
ger of things to come in India
and other developing coun-
tries, as deaths decline in much
of the developed world. The
pandemic is also taking a huge
toll on the economies of poorer
nations, sending poverty rates
skyrocketing and eroding the
social gains made in the past
two decades, particularly in re-
gions like Latin America. Mex-
ico’s antipoverty agency pre-
dicts up to 10 million people
will have fallen into poverty by
the end of June, and in Peru
the figure will likely be 2.5 mil-
lion by year’s end, the coun-
try’s central bank says.
The coronavirus preys on
the weaknesses in many poorer
countries. It spreads rapidly in
densely packed neighborhoods
where hygiene is a challenge.
People working as day laborers
and in the informal sector
can’t stay home if they want to
feed their families.
On top of that, in Latin
America, there is widespread
distrust of the government,
which has led many people to
doubt official warnings about
the dangers of Covid-19 and
avoid hospitals. And unlike
Nasdaq
Outpaces
S&P, Dow
Continued from Page One
have improved in recent weeks,
many investors expect the re-
covery to remain uneven and
they are bracing for more tur-
bulence as the presidential
election season ramps up.
“You really need to triangu-
late across the three different
indexes,” said Susan Schmidt,
head of U.S. equities at Aviva
Investors. “You can’t depend
on any one index.”
The S&P 500 has long been
considered the broadest gauge,
accounting for about 80% of
the available market capitaliza-
tion of the U.S. stock market.
The Dow, on the other
hand, with just 30 stocks—
many of which are economi-
cally sensitive—is weighted by
price, instead of market value.
The Nasdaq Composite, gen-
erally deemed a tech bench-
mark, is composed of the ap-
proximately 2,700 stocks listed
on the Nasdaq Stock Market.
The stay-at-home practices
adopted to help slow the
spread of the virus have accel-
erated digital trends that have
benefited many big tech stocks.
Shares of Apple, Microsoft,
Amazon, Alphabet and Face-
book have rallied this year, led
by Amazon’s 50% advance.
some rich countries, testing is
spotty and hospital care is un-
even and difficult to access.
Mexico tests the least of any
major nation, with just 3.3 tests
per 1,000 people, Colombia is
at 12.2 and Argentina is at 6.5,
according to Our World in Data.
In the U.S., the figure is 83.
Governments are reeling as
they face the challenges of the
pandemic with limited re-
sources, while being pressured
by millions of people and busi-
nesses to abandon lockdowns
and reopen economies.
Lenin Moreno, president of
hard-hit Ecuador, said the rav-
ages of the disease have been
worse than war. “In a war you
can flee somewhere else,” he
said in a videoconference call
with The Wall Street Journal.
“Here, you can’t flee anywhere.”
The disease has walloped
Latin America’s two giants,
Brazil and Mexico. Both are led
by presidents—Jair Bolsonaro
in Brazil and Andrés Manuel
López Obrador in Mexico—who
have played down the dangers
of the virus, been skeptical of
scientific advice and pushed
for economies to reopen.
A federal court on Tuesday
ordered Mr. Bolsonaro, who is
among a handful of prominent
world leaders who refuse to
wear a mask, to put one on
when he is out in public in the
country’s capital.
Health experts say the lead-
ers’ approach has confused cit-
izens, with some sticking to
self-isolation measures while
others go about life as if there
were no pandemic.
“In Brazil and Mexico, there
was an executive decision to
not control this,” said Irene
Bosch, an MIT scientist who
does work in Latin America for
the Atlanta-based Centers for
Disease Control and Preven-
tion. “You end up getting your-
self in a situation where noth-
ing works to control the
pandemic. The result is death.”
Mr. Bolsonaro has defended
his approach, saying lives are
priceless but that the economy
and employment must return
to normal. Mexico’s president
has repeatedly said his gov-
ernment managed to “tame
the pandemic.”
Here in Rocinha, where
100,000 people live in cinder-
block dwellings packed on
steep hillsides, the homes are
small and many residents are
heavily dependent on a day’s
wages. Many working-age peo-
ple can’t shelter inside.
Ms. de Carvalho said she had
worried for months that if the
virus came to Rocinha, she and
her relatives would be defense-
less. “I was neurotic, I was tell-
ing everyone, ‘Take care,’ ” said
Ms. de Carvalho, 36, who
Other industries haven’t
kept up. The three sectors of
the S&P 500 that contain those
stocks—information technol-
ogy for Microsoft and Apple;
consumer discretionary for
Amazon; and communication
services for Alphabet and Face-
book—are the only groups in
positive territory for the year.
The energy, financial, industrial
and utility segments are down
by double-digit percentages.
“All the big companies are,
in some way or another, with
almost no exception, heavily
focused on some dimension of
tech,” said Bob Browne, chief
investment officer at Northern
Trust. “That has actually been
a good thing in terms of re-
turn, but it’s not a good thing
in terms of diversification go-
ing forward.”
Although tech stocks have a
similar weighting in the S&P
500 and Dow, at 27% and 26%,
some of those in the Dow don’t
have the same growth pros-
pects—and that is evident in
their share prices. Neither
Cisco Systems Inc., which had
warned of a pause in customer
spending even before the pan-
demic, nor Intel Corp., which
has faced competition from
chip-making rival Advanced
Micro Devices Inc. as well as
manufacturing issues, have re-
claimed their dot-com era
highs. Cisco shares are off 5.2%
this year, while Intel is up 0.1%.
“The fact that the Dow
Jones does not have Amazon
especially, and then Alphabet
and Facebook, definitely has
contributed to the underper-
WORLD NEWS
started using a mask before
others in her family. “People
thought I was going crazy.”
Elizabete Gomes da Silva,
55, a mother of six and a mem-
ber of the extended Dias clan,
now does what she can, like
constantly cleaning her home
on Alley 24. But she holds no
illusions. “In the communities,
we always pay a higher price
for everything,” she said,
speaking of her favela.
“There’s a chance everyone
here is going to get sick.”
Brazil regularly logs more
than 1,000 deaths on any given
day. In the past week, it aver-
aged 31,000 positive results a
day for Covid-19 tests, according
to government figures—about
twice the level of any country
except the U.S. at its peak.
Projections by various Bra-
FROM PAGE ONE
Index performance through late June of each year
Nasdaq Composite
40%
30
20
10
0 Its tumble has also tilted
–10
–20
–30
1972 ’80
Note: Index performance data as of June 21-23 of each year.
Source: Dow Jones Market Data
formance,” said James Ragan,
director of wealth-management
research at D.A. Davidson.
It is unlikely those stocks,
particularly Amazon and Al-
phabet, would be candidates
to join the Dow because their
high share prices would skew
the index. Amazon’s shares
trade above $2,500, while Al-
phabet’s Class A shares are
zilian universities estimate the
country is on track to overtake
the U.S. in total deaths over
the summer. The University of
Washington in the U.S. proj-
ects 165,960 deaths in Brazil
by early August, compared
with 145,728 for the U.S.
Mexico, with more than
22,000 deaths, is seeing the
disease rip through towns on
the country’s border with the
U.S., where hundreds of thou-
sands of factory workers re-
turned to their jobs after vol-
untary lockdowns were lifted
at the start of June.
The city of Mexicali, which
has roughly 700,000 people
and is home to American
plants, has 3,826 confirmed
cases and 664 deaths from
Covid-19 and is experiencing
what health officials call a
Dow Jones Industrial Average S&P 500
’90 2000
near $1,500.
The Dow is calculated by
adding the prices of the 30
stocks and dividing by a factor
that accounts for changes like
stock splits. This means that
companies with a higher share
price hold greater sway, regard-
less of their total market value.
The S&P 500 and Nasdaq
Composite, by contrast, are
THE WALL STREET JOURNAL.
Daily life in Rocinha, a Rio de Janeiro favela, above, goes on largely
unchanged despite a surge in Covid-19 deaths. Below, a picture of
one victim. At left, a woman whose husband was killed by police.
“period of intensive transmis-
sion.” Mexicali’s general hospi-
tal is at 92% of capacity, ac-
cording to the state of Baja
California Health Department.
In Mexico, people are so
wary of public health care that
many families of Covid pa-
tients avoid taking them to the
hospital until they are criti-
cally ill—at which point it is
often too late, doctors say.
Distrust also runs high in
Peru, but that country’s govern-
ment instituted a stringent
lockdown and followed interna-
tional protocol. It didn’t matter.
People flocked to markets, cre-
ating dangerous clusters that
spread. Peru now has more than
8,200 deaths and 257,000 cases,
more than Italy and Spain.
There are success stories in
the region. In Medellín, Colom-
bia’s second-largest city, the
mayor is using a smartphone
app in which residents provide
information to officials so they
can more easily track and
check the spread of the virus.
Only seven have died.
Argentina, with 44 million
people, has recorded fewer
than 1,100 deaths, while Spain,
only slightly larger in popula-
Performance spread between
the Nasdaq Composite and
Dow Jones Industrial Average
21.3 pct. pts.
’10 ’20
weighted by market capitaliza-
tion, so larger companies hold
greater influence.
The equal-weighted S&P
500—which gives the same
status to both the smallest
and largest companies in the
index—has underperformed its
traditional counterpart this
year, falling 11%.
Another issue for the Dow:
LEONARDO CARRATO FOR THE WALL STREET JOURNAL (3)
tion, has more than 28,000.
Health officials have feted tiny
Uruguay and Costa Rica—both
with well-functioning health
systems and lower inequality
than other countries—for their
handling of the crisis.
But even in countries where
overall numbers appear low,
there are troubling spikes. That
is particularly worrisome to
health officials because while
the pandemic isn’t under con-
trol, economies are reopening
under pressure from the very
people who are most vulnera-
ble—those who work hand-to-
mouth, usually without any
kind of a social safety net.
“They tell us not to go out
but how do we eat,” said María
Herrara, who lives in the Chil-
ean capital and whose husband
works in a supermarket.
“I’m unemployed. My hus-
band is the only one who
works. And we’re afraid he
could lose his job,” she said.
“All the neighbors have coro-
navirus, many people do, but
we are also afraid of hunger.”
—Ryan Dube in Lima, Peru,
and Robbie Whelan and
David Luhnow in Mexico City
contributed to this article.
Only eight of its 30 constitu-
ents are up for the year and
most of their gains have been
wiped out by the slide in shares
of Boeing Co. The aerospace
company’s shares have declined
42% this year due to the slump
in air travel prompted by the
pandemic and the grounding of
its 737 MAX jet.
Boeing’s slide has knocked
about 930 points off the index
in 2020, erasing most of the
1,151-point contribution from
Apple, Microsoft, Home Depot
Inc., Visa Inc., UnitedHealth
Group Inc., Walmart Inc., Nike
Inc. and Intel, according to
Dow Jones Market Data.
the balance of the index away
from the industrials sector
whose weighting has dropped
to 14% from 19% at the start of
2020. The group makes up just
8% of the S&P 500.
The Dow’s underperfor-
mance versus the S&P 500 is
hardly new. The former has
surged 300% from its financial
crisis low on March 9, 2009,
but has still underperformed
the S&P 500’s 363% advance.
However, since the 2016 presi-
dential election, the indexes
are neck and neck, up 43% and
46%, respectively.
“This has been a market en-
vironment where tech has
been viewed as a defensive
area for investors,” said Kris-
tina Hooper, chief global mar-
ket strategist at Invesco. “In-
dustrials have largely been left
by the wayside, and so that’s
reflected in the changing com-
position of the Dow.”
THE WALL STREET JOURNAL.
INDIA-CHINA BORDER
After Clash, Nations
Try to Ease Tensions
Indian and Chinese security
forces agreed for the second
time this month to try to defuse
tensions along their disputed bor-
der in the Himalayan mountains.
The agreement, hammered
out during an 11-hour meeting
Monday between military com-
manders from the two sides,
comes after 20 Indian soldiers
died in a clash in one of the dis-
puted areas June 15. India has
said as many as 40 Chinese
troops also died in the clash.
China hasn’t confirmed the
deaths of any Chinese.
The same military command-
ers had met before the clash, an-
nouncing similar intentions to de-
escalate tensions that have risen
over the past several months.
Just over a week later, however,
security forces of the two nu-
clear-armed neighbors confronted
TOMAS BRAVO/REUTERS
each other, fighting with fists,
rocks, batons and clubs wrapped
in barbed wire at an altitude of
more than 14,000 feet in a re-
mote part of the Himalayas.
Neither India nor China gave
details of troop disengagement
from the disputed border points
in the Ladakh region in the
western Himalayas.
The region has seen a heavy
buildup of troops and artillery by
both Indian and Chinese forces
since early May, when a skirmish
broke out in one of the disputed
points during patrolling by troops.
Clashes between troops along
a de facto border that has sepa-
rated India and China since a
1962 war have become more
frequent in recent years. The re-
cent deaths were the first since
1975, when four Indian soldiers
were killed by Chinese troops.
—Rajesh Roy
MEXICO
Strong Earthquake
Hits State of Oaxaca
A strong earthquake struck
Mexico’s Pacific coast state of
Oaxaca on Tuesday, damaging
roads and buildings and leaving at
least six people dead in the state.
The quake, which occurred at
11:29 a.m. Eastern Daylight Time,
was felt across much of south-
ern and central Mexico, including
the capital Mexico City, where it
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WORLD WATCH
People in Mexico City react in the aftermath of an earthquake. The capital suffered no major damage,
the mayor said. At least six people died in the Pacific Coast state of Oaxaca, site of the epicenter.
set off warning alarms, caused
power outages and prompted
residents to leave buildings.
The National Seismological
Service measured the quake at
7.5, and reported a series of af-
tershocks throughout the day.
The U.S. Geological Survey rated
the quake’s magnitude at 7.4.
The state electric utility CFE
said that the quake knocked out
power to about two million cus-
tomers in seven states and that
93% of the service had been re-
established Tuesday afternoon.
Oaxaca state Gov. Alejandro
Murat said the quake left six peo-
ple dead, a woman and five men.
He said it damaged eight roads,
including three federal highways,
a bridge, some hospitals and
schools, as well as an estimated
500 houses. The state govern-
ment called on federal authorities
to declare a state of emergency
for 50 Oaxaca municipalities.
State oil company Petróleos
Mexicanos said its oil refinery in
Salina Cruz, Oaxaca, had stopped
production after an explosion in
a generator caused a small fire
that was quickly extinguished.
One Pemex worker was injured,
the company said.
Mexico City Mayor Claudia
Sheinbaum said via Twitter that
there were some reports of
fallen walls or fences, but no
major damage in the capital.
—Anthony Harrup
CHINA
Beijing Completes
GPS-Like Program
China launched the final satel-
lite in its Beidou constellation that
emulates and may seek to com-
pete with the U.S. Global Position-
ing System, marking a further
step in the country’s advance as a
major space power.
Tuesday’s launch of the satel-
lite onboard a Long March-3
rocket was broadcast live from
the satellite launch base of
Xichang, deep in the mountains
of southwestern China.
The third iteration of the
Beidou Navigation Satellite Sys-
tem promises to provide global
coverage for timing and naviga-
tion, offering an alternative to
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Russia’s Glonass and the Euro-
pean Galileo systems, as well as
America’s GPS.
The launch of the 55th satel-
lite in the Beidou family shows
China’s push to provide global
coverage has been “entirely suc-
cessful,” the system’s chief de-
signer Yang Changfeng told
state broadcaster CCTV.
China’s space program has
developed rapidly over the past
two decades as the government
devotes major resources toward
developing independent high-
tech capabilities.
The now complete current
system, known as BDS-3, con-
sists of 30 satellites and began
providing navigation services in
2018 to countries taking part in
China’s sprawling “Belt and
Road” infrastructure initiative,
along with others, according to
the official Xinhua News Agency.
Beidou could ultimately com-
pete against GPS and others in
the same way Chinese cellphone
makers and other producers of
technically sophisticated hardware
have taken on their foreign rivals.
—Associated Press
Wednesday, June 24, 2020 | A9
WORLD NEWS
Russians to Vote on
Extending Putin Rule
BY ANN M. SIMMONS
MOSCOW—Russian citizens
are set to begin voting on con-
stitutional changes that could
allow President Vladimir Putin
to remain in office for years,
potentially cementing his hold
on power.
If passed, the constitutional
amendments would reset the
clock on presidential term lim-
its, allowing Mr. Putin to run
for two more terms after his
current tenure ends in 2024.
Currently, term limits would
compel Mr. Putin, who has
held power in Russia since
1999 as either president or
prime minister, to step down.
If he were to subsequently
win re-election, Mr. Putin
could remain in the Kremlin
until 2036, making him the
longest-serving leader in Rus-
sia’s modern history.
The package also includes
measures aimed at easing Rus-
sians’ economic pain amid one
of the world’s worst outbreaks
of the novel coronavirus.
Those measures are a sweet-
ener that is likely to help
boost support for the referen-
dum, some analysts said.
The Russian parliament and
the country’s supreme court
have endorsed the proposed
constitutional changes. The na-
tional referendum, scheduled
to start on Thursday and run
until July 1, is widely expected
to pass, some analysts said.
A late May survey by the in-
dependent pollster Levada Cen-
ter in Moscow found that
among those who said they
were certain to vote, 55% said
they would support the consti-
tutional changes. The figure was
44% among all respondents.
“It’s absolutely a done
deal,” said Nikolay Petrov, a
senior research fellow at Brit-
ish think tank Chatham House.
Over the weekend, Mr. Putin
told Russian state television he
had “not ruled out” running for
another term if voters approve
the constitutional changes.
The amendments would give
the president greater sway
over courts and prosecutors,
LE AD
AR O
AT
N PT
H US
OW K
TO DS
AD OR
I
®
OP G
.
and boost the role of the State
Council—an advisory body that
Mr. Putin already heads—en-
shrining it in the constitution
as a tool of Russia’s executive
branch. As head of this em-
powered agency, Mr. Putin
could remain in control and
guide policy even after relin-
quishing the Kremlin following
another two six-year terms.
“What he wants is to trans-
form the political system in a
way which will let him find a
comfortable position after the
end of his presidential term,”
Mr. Petrov said.
The vote comes as Moscow
and many other major Russian
cities emerge from quarantine
restrictions imposed to slow
the spread of the novel corona-
virus, which has infected almost
600,000 people nationwide.
In a televised address on
Tuesday, Mr. Putin acknowl-
edged the virus was still a grave
threat. “In general, we are mak-
ing the epidemic recede, we are
The poll comes as
major Russian cities
emerge from virus
quarantine.
seeking a turnaround,” he said.
“But the virus is still danger-
ous—thousands of people still
face the disease every day.”
Many have expressed con-
cern over Mr. Putin’s determi-
nation to hold the vote when
the daily number of new infec-
tions hovers between 7,000 and
8,000 and some regions are still
operating under restrictions.
The vote had been pushed back
from its original date of April
22 because of the virus.
According to voting guide-
lines, voters will be allowed to
cast ballots indoors and out-
doors. They would be provided
with protective masks, gloves,
and disposable pens and mem-
bers of regional election com-
missions would be tested for
coronavirus before the vote.
A10 | Wednesday, June 24, 2020 THE WALL STREET JOURNAL.

FROM PAGE ONE

Plexiglass with scarce supply of raw ma-

terial, meant turning down
some requests and longer de-

Comes to livery times for the others.

One customer paid a sizable
deposit, pressing his request

The Rescue to jump the line. But “all plexi-

glass requests are created
equal,” Mr. Antonelli replied.
Like the designers, plexi-
Continued from Page One glass manufacturers and other
”It frightened me because it companies that use plexiglass
looked more like a jail visiting in Europe have been all-hands
room,” Mr. Gernigon said, re- on deck to meet requests.
ferring to the barriers. He In early March, Kunststoff-
aimed for something more ele- handel Rexin GmbH started
gant and more aesthetically scouting for extra plexiglass
pleasing. across Europe to avoid a
Mr. Gernigon came up with shortage later on. Back then,
a transparent pod that resem- the German company, which

AURELIEN MORISSARD/XINHUA/ZUMA PRESS

bles a lampshade suspended
over the heads and upper bod-
ies of restaurant guests. He
posted his design online. He
said he receives around 50 or-
ders a day, not only from res-
taurants. Other businesses like
casinos, hospital waiting
rooms and nail salons are also
interested, he said.
Production started in early
June, with orders shipped in-
ternationally to countries like
the U.S. and Japan. The cost:
€155 for a single pod, or
around $173.
The 47-year-old is currently
working on other versions of
his Plex’Eat design, one using
color and another large
enough to ensconce a couple.
The dining pods even en-
hance food aromas, he said,
having recently enjoyed a truf-
fle risotto under a plexiglass
dome.
The World Health Organiza-
Christophe Gernigon poses under his invention, a Plex’Eat prototype plexiglass bubble, at the H.A.N.D restaurant in Paris.
tion has recognized plexiglass
and other plastic barriers as
effective in helping to stop the
spread of the virus.
That didn’t stop critics
roasting Italian architects
Ilaria Bizzo and Stefano Cor-
nacchini for their design fea-
turing individual boxes for
students returning to schools
after lockdown. The two pro-
posed the idea as a “flexible,
economic and green solution”
to keep schools safe.
“Plexiglass boxes seem to
me more a dystopian vision of
the future than possible solu-
tions to a problem,” countered
architect Stefano Cardini, who
was the Italian chief academic
officer at the Istituto Europeo
di Design.
The country’s education
minister, Lucia Azzolina, and
far-right politician Matteo Sal-
vini even squabbled over its
spelling—is it plexiglass or
plexiglas?—as they argued
over a decree for the next
school year. While the mate-
rial is commonly known as
plexiglass in English, it is sold
under various trademarks, one
of them Plexiglas.
Roman artisan Mr. Anto-
nelli, who goes by the nick-
name of “plastic man” or “er
plasticaro” in local dialect,
said the original shapes and
designs he’s making pose
some difficulties. Some are
technical, such as getting the
makes products like terrace
roofs and carports, got some
initial requests for sneeze
guards from pharmacies.
Other businesses like fuel sta-
tions followed, said chief exec-
utive Michael Schwarz.
Now it’s hardly possible to
find plexiglass on the market,
the 40-year-old said, and he
doesn’t expect a change for
many weeks. “Current orders
will receive delivery dates, if
right thickness and weight to any, from the end of the year
achieve a functional design. to the beginning of 2021.”
Mr. Gernigon, the designer For Mr. Antonelli, the main
from Paris, also had to adjust problem has been getting his
the thickness of his prototype hands on enough plexiglass to
dome to make its shape work. meet demand. The protective
Typically, the material comes box he designed for the local
in sheets from manufacturers hospital was such a hit that he
and then can be cut and bent got a request for 50 more. He
to specification. had to turn it down due to the
At the height of the emer- lack of material.
gency, there was a rush to get “It’s like I have a shiny Fer-
protective tools, Mr. Antonelli rari but fuel is running dry,”
said. High demand, coupled he said.

China Link China whom its leaders ur-

gently needed to understand.
The Journal also examined
Political Web Mr. Steel said he doesn’t
“collect money from, nor have
received any funds from”

In Access campaign-finance records for Political donations helped people linked to China's Messrs. Zhao, Tang, Li or
Mrs. Clinton’s candidacy and government or Communist Party meet President Wang. Mr. Steel didn’t answer
for presumptive 2020 Demo- Trump and other Republicans. a question about why they

To Trump cratic nominee Joe Biden. It

Continued from Page One
issues.
In response to inquiries, the
Republican National Commit-
tee said it had instructed Mr.
Steel to break ties with several
people identified in Wall
Street Journal reporting.
“It’s important to do all we
can to safeguard our politics
from illegal foreign meddling,”
the RNC said in response to
questions. It said it wouldn’t
return donations identified by
the Journal that facilitated ac-
cess to the president and
other officials because it
didn’t believe campaign-fi-
nance laws were broken.
Separately, Mr. Steel, a Re-
publican national committee-
man from California, said it
would be “false, defamatory,
and offensive” to say he aided
any Chinese efforts. He didn’t
respond to specific questions.
There is no indication Mr.
Trump was aware of the polit-
ical contributions. The White
House didn’t respond to re-
quests for comment.
The Journal pieced together
details of the efforts from
campaign-finance records, Chi-
nese government websites and
U.S. corporate filings as well
as through interviews with
people involved. It couldn’t be
determined whether any of the
contributions or other activi-
ties violated U.S. laws. Federal
law prohibits political giving
by people who aren’t U.S. citi-
zens or permanent residents.
The initial effort to access
the Trump administration ap-
pears to have stalled as ten-
sions between the U.S. and
China have risen, over trade,
Covid-19 and other issues.
U.S. officials said China,
which has historically stepped
up efforts to influence U.S.
politics when it feels chal-
lenged, recently intensified ef-
forts to push misinformation
through social media and
other channels. China has long
denied meddling in other
countries’ affairs.
Most of the donations iden-
tified by the Journal flowed to
a fundraising committee called
Trump Victory in the first half
of the Trump presidency. The
donations were among the
largest of 2017. They account
for a fraction of the $190 mil-
lion-plus the fund has raised
since Mr. Trump took office.
Chinese nationals involved
said they weren’t acting on
behalf of China’s government
but sought to get close to Mr.
Trump for personal reasons or
to help them in business.
China’s government didn’t re-
spond to requests for com-
ment, nor did China’s Embassy
in Washington.
Unlike his 2016 rival Hillary
Clinton, whose positions on
global issues were well known
from her time as secretary of
state, Mr. Trump entered of-
fice as an unknown quantity to
didn’t find similar efforts in-
volving the two by people
linked to China’s government.
Chinese money has alleg-
edly flowed to Democrats pre-
viously, including to President
Bill Clinton’s 1996 re-election
effort, which led to guilty
pleas by Democratic fundrais-
ers for election-law violations
and other crimes.
Soon after the 2016 vote,
officials from China’s consul-
ate in Los Angeles approached
a pro-Trump organizer named
David Tian Wang, said people
who worked with him. A na-
tive of China with a U.S. green
card, Mr. Wang had founded a
group called Chinese Ameri-
cans for Trump and had long
associations with people and
groups in California supported
by China’s government, ac-
cording to Chinese official
websites and state media.
The consulate asked for Mr.
Wang’s help in lobbying on
China issues during the Trump
administration, said Lance
Chen, who said Mr. Wang tried
to recruit him for the effort.
Mr. Chen said he declined.
Mr. Wang was soon listed
as CEO of the newly registered
Wang & Ma Government Rela-
tions LLC, California business
records show. He also gave
$150,000 to Trump Victory, ac-
cording to Federal Election
Commission disclosures.
He became a frequent pres-
ence in GOP circles. In one
case, Mr. Wang was quoted in
Chinese-language media in the
U.S. as saying he used access
to the Trump campaign to
push a view that U.S. military
deployments in the contested
South China Sea were a waste
of money.
Lobbyists for foreign gov-
ernments must register with
the Justice Department. Mr.
Wang’s name doesn’t appear
in its foreign-agents database.
Mr. Wang didn’t answer
most specific questions from
the Journal but said in a text
message: “I have NO ties to
the Chinese government and
do not take orders from any-
one.” He said he loved China
and the U.S. and believed in
the GOP’s platform.
An RNC meeting
In May 2017, Mr. Wang at-
tended a Republican National
Committee leadership meeting
in San Diego as a guest of Mr.
Steel, the California commit-
teeman, people familiar with
the matter said.
Accompanying Mr. Wang to
the meeting as Mr. Steel’s
guests were three men linked
to China’s government.
The first was Zhao Gang,
whom Chinese official web-
sites identify as a researcher
for China’s Ministry of Science
and Technology focused on na-
tional security, tech diplomacy
and other issues. Mr. Zhao’s
work has connected him with
the senior echelons of China’s
Communist Party, including a
Wu Guangsheng
Works with Supplier
United
Front Chinese military
Controlled
by
Communist
Party of China consulate
*Money from Tang Ben and wife went exclusively to RNC
Sources: Federal Election Commission (donations); interviews with people familiar (consulate meeting); RNC (Tang, Zhao and Wu meeting Trump);
Chinese Americans for Trump (Wang meeting Trump); Chinese Academy of Science and Technology for Development (Zhao employment); Chinese
government websites (China Strategic Culture Promotion Association); Huaxun Fangzhou (Wu employment)
Chinese government researcher Zhao Gang, left, and Republican donor Tang Ben, right, who with
his wife gave $300,000, seen with President Trump and first lady Melania Trump in 2017.
close associate of President Xi
Jinping, say people who have
met Mr. Zhao.
Another was Tang Ben, a
China-born U.S. citizen who
served as an executive-com-
mittee member at the China
Strategic Culture Promotion
Association, an opaque group
that state media have said ad-
vises China’s leaders on secu-
rity issues. Its secretary-gen-
eral, retired Maj. Gen. Luo
Yuan, is well-known to U.S. of-
ficials for his hawkish posture
toward the U.S.
The third was Li Su, a gov-
ernment-connected business-
man who has worked with a
well-known former associate
of China’s vice president.
The presence of Messrs.
Zhao and Li at the GOP leader-
ship event was unusual be-
cause federal election rules
don’t permit foreign nationals
to play any role in decision
making at U.S. political com-
mittees.
David Tian Wang Tang Ben
Founder
Donated Donated,
$150,000 with wife,
$300,000
Chinese
Americans
for Trump Trump
Victory
Met with Transferred
Supported
funds to*
Chinese Trump Republican
campaign National
Committee
Joel Eastwood and Jessica Kuronen/THE WALL STREET JOURNAL
Mr. Zhao said that his par-
ticipation was out of “aca-
demic interest” and that
China’s government provided
no funding for it. Mr. Li also
said he was there in a per-
sonal capacity.
The three had appeared at
events together in China be-
fore. In September 2016,
Messrs. Zhao, Tang and Li par-
ticipated in a closed-door
meeting billed as a U.S.-China
security dialogue. They were
part of a Chinese delegation
that included a hard-line mili-
tary strategist and a leader of
a research center controlled
by China’s military, according
to an event program. An older
man wearing a Mao suit led
the Chinese side, who partici-
pants were told was a per-
sonal adviser to President Xi.
U.S. participants included
Michael Breen, then-CEO of
the center-left Truman Na-
tional Security Project, and a
former Defense Intelligence
Met Mr. Trump and
GOP lawmakers
Zhao Gang
Served on Researcher
for
China Strategic
Culture Promotion
Association
Chinese Ministry
of Science and
Led by Technology
Retired
major
general
Luo Yuan
Agency officer named Welton
Chang. They said that
throughout the three-hour
meeting, Chinese participants
voiced hope an election win by
Mr. Trump might lead to U.S.
retrenchment in the Asia-Pa-
cific region.
Both American participants
said they worried the event
was designed to let Chinese
intelligence get to know them.
Mr. Chang said he reported
the encounter to U.S. intelli-
gence.
The RNC said the men who
attended the Republican Party
meeting in San Diego didn’t
have any meaningful interac-
tion with GOP leaders there.
However, it said, it has barred
them from future RNC events.
The committee also said it
now has tightened its policy
on guests at such meetings, ef-
fectively excluding foreign na-
tionals, and it has cut ties
with Mr. Wang, the founder of
Chinese Americans for Trump.
were there as his guests.
The Federal Election Com-
mission declined to comment
on the men’s attendance at the
Republican meeting, citing
“potential for this matter to
come before the Commission
in an enforcement capacity.”
After the San Diego meet-
ing, Messrs. Zhao, Tang and Li
briefed a group of Chinese po-
litical figures in China, includ-
ing retired Gen. Luo, on their
access to top Republicans, ac-
cording to a video of the
event. Mr. Li said Mr. Trump’s
election could prove a win for
China, according to the video.
$300,000 donation
In June 2017, Trump Victory
received a combined $300,000
from Mr. Tang and his wife.
The donations allowed Mr.
Tang to attend a fundraiser at
Washington’s Trump Interna-
tional Hotel, where he led Chi-
nese guests to meet the presi-
Chinese
dent. The contributions by the
military Tangs, who FEC records show
hadn’t previously given to Mr.
Trump, were two of the big-
gest donations Trump Victory
received in 2017.
Mr. Tang described the visit
in a Chinese newspaper com-
mentary as grass-roots diplo-
macy for China. Interacting
with the president “can help
find a breakthrough in freeing
up the U.S.-China technology
trade,” he wrote.
On a Chinese social-media
account, he posted photos of
himself in the White House. “If
the Chinese people wish to
overtake the U.S., they must
study the U.S.,” he wrote.
Reached on a Chinese cell-
phone number, Mr. Tang hung
up when told the caller was a
reporter. Earlier, his wife said
in a brief interview that her
husband spent most of his
time in China and that she
wasn’t familiar with any polit-
ical donations.
Accompanying Mr. Tang at
the 2017 fundraiser, the RNC
confirmed, was Mr. Zhao from
the Chinese Ministry of Sci-
ence and Technology, plus the
chairman of a state-backed
Chinese producer of military
communications and satellite
gear, Huaxun Fangzhou Co.
The executive, Wu Guangsh-
eng, told Mr. Trump that Chi-
nese technology companies
were eager to invest in the
U.S., according to an account
on the website of Huaxun’s
parent company.
It said that shortly before
his Washington visit, Mr. Wu
attended a meeting in Beijing
with the then-head of the
United Front Work Depart-
ment, a Communist Party
agency that seeks to shape
global politics in China’s favor.
Mr. Wu’s company said he
wasn’t aware the event was a
fundraiser when invited. It
said he sought to open doors
to pursue U.S. business.
—Aruna Viswanatha, Caitlin
Ostroff and Lisa Schwartz
contributed to this article.
THE WALL STREET JOURNAL. * * * * NY Wednesday, June 24, 2020 | A10A

GREATER NEW YORK

Officials Monitor Virus Hot Spots
The percentage of reopening on Monday, city offi-
cials said more than 7,500 resi-
people testing positive
in lower-income NYC
dents have been diagnosed with
Covid-19 since June 1.
The state and New York
areas is concerning
BY MELANIE GRAYCE WEST
City have prioritized testing in
lower-income neighborhoods,
which historically have seen
New York state has hit the
lowest percentage of positive
Covid-19 test results since
more cases of the virus. Re-
search also has repeatedly
shown that the virus dispro-
portionately affects black and
March, but health officials are Latino New Yorkers.
closely monitoring hot spots Somos Community Care, a
where higher rates of infection nonprofit network of 2,500
persist. health-care providers across
Earlier this month, Gov. An- New York, has been tasked by
drew Cuomo said that less than the state to facilitate virus
1% of people checked for the testing in churches and clinics
novel coronavirus are testing in hard-hit neighborhoods in
positive. At the same time, the the Bronx and Queens.
percentage of people testing Data from Somos show that
positive in some lower-income in May, roughly 43% of people
neighborhoods in New York City tested at those sites were pos-
is higher than 1%. And while in- itive for antibodies, while 4.7%
fection rates dropped signifi- are testing positive for
cantly enough for the city to en- Covid-19. Across the Somos
ter phase two of its economic network, some 45% to 50% of
Street-
Parking
patients—largely part of vul-
nerable populations living in
some of the poorest communi-
ties—are showing antibodies
for the disease, according to
Ramon Tallaj, chairman of the
board of Somos.
Active transmission of the
virus in Latino households
where there are multiple gen-
erations of families remains
high, according to Dr. Tallaj.
“When you have a building
with 40 of those apartments,
with grandparents there, each
building is a nursing home in
the Hispanic community,” said
Dr. Tallaj. “Who lives there?
Immigrants, people without
documents, immigrants with
no salary who have no job.
Therefore, they go out and try
to find something to do and
they get infected.”
Data from the New York
City Department of Health and
Mental Hygiene show that the
Corona neighborhood of
Queens has the highest per-
centage of overcrowding in the
city, with 15.7% of households
having more than one occu-
pant per room. Roughly a
third of renters in the neigh-
borhood pay 50% or more of
household income on rent, and
58% of households have an in-
come below $60,000.
Corona and the neighboring
East Elmhurst community to-
gether have the highest rates
of infection in the city:
Elmhurst’s infection rate is
29.38% of those tested are
positive, while 28.34% are pos-
itive in the Corona neighbor-
hood, according to the most
recent city data available. A
month ago, the rates were
above 43% for the same areas.
In research published
Thursday in the Journal of the
American Medical Association,
researchers from Columbia
University Irving Medical Cen-
ter looked at 400 pregnant
City
Beaches
women in New York City who
were tested for Covid-19 at the
height of the city’s outbreak.
Researchers found that women
who lived in a neighborhood
To Open
with high household member-
ship were three times more
likely to be infected with the
July 1 for
virus. They were twice as likely
to get Covid-19 if they lived in
areas with a high poverty rate.
“The risk of infection is related
Swimming
to household, rather than ur- BY KATIE HONAN
ban, density,” says co-author
Cynthia Gyamfi-Bannerman. New York City Mayor Bill
Northwell Health has con- de Blasio will announce on
ducted more than 31,000 tests Wednesday that city beaches
to detect antibodies in hard-hit will officially open July 1 and
communities. As of Thursday, permit swimming, according
results showed that 48% of to a spokeswoman.
nearly 7,000 Latinos tested The city normally opens the
positive for antibodies, while city’s 14 miles of beaches to
the rate was 27% among some swimming on Memorial Day
11,500 black New Yorkers. Of weekend. But swimming has
the 334 Asian New Yorkers who been off limits to stem the
were tested, 21% were positive, spread of the new coronavirus.
while 16% of some 1,500 white People could still sunbathe
New Yorkers were positive. and enjoy the beaches.
In anticipation of the swim-
ming, city lifeguards will begin
working at the beaches on
July 1, ahead of the Fourth of
July holiday, said the mayor’s
spokeswoman, Freddi Gold-
stein.

Regulations The city’s Department of

Parks & Recreation, which op-
erates the beaches, also con-
Will Ease firmed the beaches will fully
open on July 1.
BY PAUL BERGER The mayor had previously
said that the city had prohib-
Car owners will soon see ited swimming out of concern
some relief in their search for that it would draw large
one of New York City’s scarcest crowds at beaches. The city
commodities: street parking. also feared the crowding
Mayor Bill de Blasio said would extend to the subways
Tuesday that new rules taking and buses that many people
effect on Monday would limit
alternate-side parking, which
requires vehicles to be moved
from one side of the street on a
No decision has
certain day so the street can be been made on
cleaned. “No New Yorker should
have to move their car more
whether to open
VICTOR J. BLUE/BLOOMBERG NEWS

than once a week,” he said, public pools.

speaking at a news conference
where he called the rules “a su-
per hassle.”
The new rules will be as- take to the beaches, he said.
sessed on a week-by-week ba- The city, hardest hit in the
sis over the summer and could nation by the coronavirus, en-
be extended or modified, the tered the second phase of its
mayor said. economic reopening on Mon-
Car owners should check Poll workers wearing face shields, masks and gloves helped a primary-election voter Tuesday in Brooklyn. day, allowing for retail busi-
parking signs carefully. nesses to have in-store shop-

Primary Draws Low Voter Turnout

A spokesman for the city’s ping and restaurants to offer
Transportation Department outdoor dining. However, so-
clarified that the rule change cial-distancing measures re-
only applies to residential main in place.
streets that are cleaned twice BY KATIE HONAN Elections had urged people to Manhattan, requested an absen- after President Trump was the The city’s public pools have
a week on each side of the AND JIMMY VIELKIND vote via absentee ballots. Gov. tee ballot because she has been only candidate to qualify for been closed because of the
street. For residential streets Andrew Cuomo signed execu- quarantining out of state since the ballot, further muddying pandemic. City officials ha-
that are cleaned once a week New Yorkers trickled into tive orders allowing anybody to mid-March because her wife turnout predictions. ven’t made a decision on
on each side of the street cur- the polls Tuesday to vote on request a ballot as a result of has an immune disease, she At polling sites, voters were whether to open them, Ms.
rent rules remain in effect. primary races for seats in Con- the pandemic, and requiring said. She was driving back to required to wear face masks, Goldstein said.
Alternate-side parking rules gress, the state Legislature and election officials to mail all eli- Manhattan on Tuesday morning and some poll workers donned As the summer season be-
have been halted for most of local government, but turnout gible voters a postage-paid ap- for the first time to vote in per- face shields. All voters were gan, elected officials expressed
the past three months because was low with many voters opt- plication. Nearly 1.75 million son. She is up for re-election. given a new pen to cast their concerns over unguarded
of the pandemic. The rules are ing for absentee ballots to people returned the applica- It was just one issue on pri- ballots. beaches, especially the possi-
a bane of many New York City avoid the spread of the new tions, the state board said Mon- mary day, the first time in With so many absentee bal- bility of drownings as the
car owners and a conundrum coronavirus. day, but it couldn’t be deter- New York history that a pri- lots, results on local races weather warmed.
for some out-of-town visitors. Some voters who did head mined how many were mailed mary for a presidential nomi- weren’t expected to be tallied Last week, another spokes-
Mr. de Blasio said street- to the polls said they were out. Many people posted on so- nation fell on the same day as for at least a week, officials woman for Mr. de Blasio, a
cleaning signs won’t change for given incomplete ballots, while cial media to say they hadn’t those for state and local of- said. More than 92,000 people Democrat, said 400 lifeguards
now. The streets will only be others said they didn’t receive received their ballots. fices, as well as House seats. voted during a nine-day early had passed the swim test and
cleaned on the second of the their absentee ballot. Rachel Lavine, a Democratic Republicans canceled their voting period that ended Sun- other qualifications needed to
two days posted on each sign. The New York State Board of state committeewoman from presidential primary in March day, the state board said. work on the beach.

Illegal Fireworks Are Sparking the Ire of Mayor de Blasio

BY KATE KING
City Plans Smaller guidelines. Spectators will be
For nights now, bursts of able to see the fireworks from
fireworks have exploded over July Fourth Displays their homes and rooftops, with
New York City, and on Tues- some pyrotechnics expected to
day, Mayor Bill de Blasio reach 1,000 feet high.
vowed to ferret out the source New York City will hold “The idea is very brief
of the illegal explosives. several short Fourth of July bursts,” the mayor said. “Brief
The city’s 311 and 911 sys- fireworks shows across all five but mighty. You’ll know this is
tems have logged more than boroughs starting Monday, a very professional, beautiful
24,000 fireworks complaints Mayor Bill de Blasio says. show.”
since Jan. 1, compared with The five-minute shows, The grand finale will be on
about 1,060 during the same sponsored by Macy’s, won’t be July 4, with fireworks over the
period last year, according to announced ahead of time to Empire State Building and a
the New York Police Depart- prevent people from gathering national broadcast with musi-
ment. Most of the complaints in violation of social-distancing cal TV performances on NBC.
have been made since June 1.
Mr. de Blasio says he is
forming a task force to find $333 million in 1999, according middle of the night?’ ” spokes-
JOHN MINCHILLO/ASSOCIATED PRESS

the source of the fireworks, to the American Pyrotechnics woman Katy Hansen said.
which are illegal in New York Association. Professional-dis- Jade Wiselogle, who lives in
City but allowed in other parts play fireworks revenue, by Brooklyn’s Prospect Heights
of the state. Fireworks are contrast, has grown to $375 neighborhood, said she hears
brought in from other areas, million from $167 million over fireworks nightly, often as late
often by networks of people the same period. as 3 a.m. She moved to the
who make large purchases and The professional-display area a year ago because of the
then resell them on city fireworks industry has been “quiet, relaxed vibe,” but now
streets, said New York City devastated this year by wide- spends her nights wrapping
Sheriff Joseph Fucito. Fireworks exploded Friday during Juneteenth celebrations above Brooklyn’s Bedford-Stuyvesant. spread event cancellations, her dog, an Australian shep-
“The way to go at this is at with many businesses on track herd named Clooney, in a blan-
the root: Cut off the supply,” pared with 22 calls during the couple thousand dollars of can effectively use community to bring in less than 10% of ket to calm him down. “You
Mr. de Blasio said. same week last year, according fireworks a week this time of leaders rather than police to normal revenue, said Julie have to suffer through it,” she
The mayor’s announcement to Sgt. Detective John Boyle. year, Ms. Rafferty said, with address quality-of-life issues. Heckman, the association’s ex- said.
followed a protest outside Gra- Fireworks are illegal in Massa- some customers driving from Mr. Adams said he would like ecutive director. Backyard fire- Jenn Kennedy, a Harlem res-
cie Mansion on Monday night chusetts. as far away as Long Island. to work with the Vulcan Soci- works sales, however, are ident, said it feels like the fire-
by residents, some honking Phantom Fireworks of Dela- “Customers that might nor- ety, an organization of black booming nationwide. works are shaking her apart-
their horns, upset about the ware Water Gap, in Strouds- mally spend $1,000 are instead firefighters, as well as anti-vio- Animal Care Centers of New ment, with the booming
nightly fireworks. Mr. de Blasio burg, Pa., about 75 miles west spending three times that lence intervenors and block as- York City, a nonprofit that runs stretching as late as 4 a.m. The
said the task force was in the of Manhattan, sold more than amount,” she said. sociations to educate residents the city’s animal shelters, has noise—and the lack of sleep it
works beforehand. $1 million in fireworks since Brooklyn Borough President about the dangers of fireworks. been fielding calls from people causes—has only added to her
Other cities are facing simi- May 29, manager Rosie Raf- Eric Adams said this will be The consumer fireworks in- looking for advice on how to stress level. “I’m already
lar problems. In Boston, the ferty said. “People are bored,” the first test since the large- dustry has grown dramatically help their pets cope. drained emotionally from the
police department fielded she said. “They just want to scale protests over the killing during the past two decades, “People are saying, ‘What do pandemic,” she said.
1,445 fireworks complaints be- blow stuff up.” of George Floyd by Minneapo- with revenue reaching $1 bil- I do when my 120-pound dog —Charles Passy
tween June 1 and June 7, com- The store usually sells a lis police of whether the city lion last year compared with jumps into the bathtub in the contributed to this article.
A10B | Wednesday, June 24, 2020 NY * * THE WALL STREET JOURNAL.

GREATER NEW YORK GREATER

NEW YORK
METRO MONEY | By Anne Kadet
WATCH
Event Planner Regroups, Moves in With Mom NEW JERSEY

Jes Gordon Three Drown in

recently cele- Backyard Pool
brated her
50th birthday Authorities have identified
dancing in a three family members who died
leopard-print in their swimming pool.
suit at a surprise disco party Bharat Patel, 62 years old, his
in the West Village. She was daughter-in-law Nisha Patel, 33,
renting an apartment in and her 8-year-old daughter
Hudson Yards, Manhattan’s were found unresponsive in the
most expensive neighbor- aboveground pool on Monday af-
hood, and producing million- ternoon by East Brunswick po-
dollar weddings along with lice responding to a 911 call from
MELISSA BUNNI ELIAN FOR THE WALL STREET JOURNAL

celebrations for hedge funds, neighbors who heard screams.

media firms and consumer Police Lt. Frank Sutter told
brands through her epony- reporters officers performed
mous events company. CPR when they arrived, but all
Then the pandemic hit, three victims were pronounced
and the party stopped. Ear- dead at the scene.
lier this month, Ms. Gordon On Tuesday, the Middlesex
put her whole life in storage County Regional Medical Exam-
and moved in with her iner’s Office said it had con-
mother in Poughkeepsie. cluded the deaths were by acci-
The coronavirus era has dental drowning.
spawned many stories of in- Neighbors said the family had
novation and heroism, but recently moved into the home.
not everyone has an inspir- “This is a devastating day for
ing tale to tell—at least not Jes Gordon, left, is living with her mother, Susan Reichin, because Ms. Gordon’s business stalled amid the coronavirus pandemic. our entire community,” Police
yet. More common are peo- Chief Frank Losacco said.
ple like Ms. Gordon who are rough days,” her daughter down started in March, she and chairman of BizBash, a through,” she admits. —Associated Press
floundering, especially in in- said. “I’m not a crier, and I figured it meant postponing media and events company Ms. Gordon has endured
dustries where recovery cry about three times a day, events until the fall. Then re- for the industry. “Everyone’s illness, the death of loved CONNECTICUT
could take years. wouldn’t you say?” ality set in—the rest of the struggling. It’s a cash flow ones and divorce. This is
I recently took the two- Mom agreed: “You’re year was effectively canceled. game, and if you don’t have harder. After working non- Four DMV Offices
hour train ride from New pretty good on that.” She offered clients virtual cash flow you’re in big trou- stop for decades, she can’t Partially Reopen
York City upstate to Pough- Ms. Reichin isn’t the only alternatives, but no one bit. ble,” he said. tolerate the void. “I am mis-
keepsie. Ms. Gordon picked Poughkeepsie parent to wel- A $30,000 Paycheck Protec- erable because the love of The Connecticut Department

W
me up in a leased BMW. come a middle-aged child tion Program loan went fast. hile Ms. Gordon’s my life is dormant. That is of Motor Vehicles on Tuesday
“It’s a beautiful place to home during the pandemic. The final stroke came when strategy is conser- the problem. I don’t know partially reopened four of its
visit,” she said, as we “I know of two cases where a client canceled a big De- vative, she’s more who I am without that part- branches to begin offering in-
cruised through the leafy the whole family has moved cember bash, the last left on likely to survive than those ner,” she said. person licensing and new vehicle
streets. “In fact, would you in with the mother,” she said. the calendar. “That’s when I who keep spending to main- On the bright side, this registration services by appoint-
take me back with you to- knew I was [expletive],” Ms. tain appearances. “A smart unwelcome period of reflec- ment only.

T
day? It’s horrible. I’m seri- his is Ms. Gordon’s
ously [expletive] losing it.” first time living with
Ms. Gordon knows things her mother since she
could be worse. “This is the went to boarding school
house,” she said, pulling up when she was 15 years old.
to mom’s spacious, three- She launched her events and
bedroom ranch with its large design company when she
in-ground pool. was 21 and spent decades
Mom is Susan Reichin, a throwing parties in cities
lively, 78-year-old jazz pia- from Los Angeles to Dubai.
nist who runs a real estate She’s appeared as a reality
appraisal business. TV design expert and has a
Ms. Reichin doesn’t envy novel coming out in July—
her daughter’s situation. about an events producer.
“There has to be this sense The decades had their ups
that who you were is no lon- and downs, Ms. Gordon said.
ger there,” she said. “And I But business was always
don’t think anyone can do steady, often keeping her
that easily.” busy 14 hours a day, seven
“Yeah, we’re having some days a week. When the lock-
Gordon said.
She called her business
manager. His advice? “Stop
the bleeding!” To preserve
deposits for postponed
events, she slashed overhead.
Ms. Gordon gave notice on
her $5,000-a-month rental
apartment, her $10,000-a-
month office lease and a
production space in Queens.
She furloughed her small
staff, saving another $20,000
a month. Then she called her
mom: “Would you like a
roommate?”
Ms. Gordon is faring rela-
tively well compared with
others in the events space,
said David Adler, founder
strategy is to lay people off
and come back when it’s bet-
ter,” Mr. Adler said. “I don’t
think you have any choice.
Moving in with your parents
sounds pretty good.”
But not easy. Ms. Gordon
now fills her days with exer-
cise, walking her bulldog Su-
preme, card games with her
mother’s friends, volunteer-
ing, strategy calls, mentoring
sessions, applying for cre-
ative consultant gigs, design-
ing flower arrangements to
sell online and helping
around the house.
And nearly every day,
around 3 p.m., she has a
meltdown. “Reality pokes
tion has her considering a
second marriage, another
dog, or a teaching job. And
everyone says the events
business will revive eventu-
ally, though it may not be
what it was.
When she returns to New
York City, Ms. Gordon envi-
sions renting a co-working
space and a Brooklyn apart-
ment. It won’t be as fabulous
as her old life, she opines,
and doesn’t need to be.
“It will be interesting,”
she says. “It’s going to be
different, and I have to em-
brace that.”
anne.kadet@wsj.com
Road testing also resumed
Tuesday, in partnership with pri-
vate driving schools, to reduce a
backlog of approximately 1,000
road tests that developed be-
cause of the Covid-19 pandemic.
“Who would have thought ev-
erybody was missing DMV so
much?” joked Gov. Ned Lamont,
as he stood outside the Water-
bury branch. Locations in Bridge-
port, Enfield and New Britain
also partially reopened Tuesday
for new registration and license
services.
New registration services will
begin June 30 at the Wethers-
field, Willimantic, and Danbury
branches.
—Associated Press

All the Power

Without the Pinch
Healthcare Starts with Healthy Food.

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 THE WALL STREET JOURNAL.
UNIVERSAL IMAGES GROUP/GETTY IMAGES (2)
Booking Next Summer Now
That major international vacation you scrapped is already selling out for 2021
D
BY NANCY KEATES
eborah Pilla’s sum-
mer travel is all
planned and
booked.
Next summer,
that is.
Dr. Pilla, a retired pediatric den-
tist from New York, was supposed
to go to Russia with her husband
and another couple in April. When
the coronavirus pandemic made
that impossible, she rescheduled
the exact same itinerary, including
private tours and hotels, for late
May 2021. Then, just to be safe,
she also reserved a vacation to
Sicily for June 2021.
“I definitely believe we’ll be up
and running by then, and I don’t
want to miss out,” she says.
Looking forward to next sum-
mer? Then it might be a good idea
to start looking now. Travel agents
say the majority of their clients
are postponing, instead of cancel-
ing, the big international trips
they’d planned to take this year.
Worried about lost deposits, and
still eager to celebrate the occa-
sions behind the expeditions, many
WHEN MY 10-year-old son re-
cently encountered a young adult
making rude comments in a game
of “Minecraft,” he and his friends
told the interloper to leave their
“world.” When he didn’t, my son
exited the world, resulting in all
the other players being booted.
Then he blocked the man from
ever playing with him again.
When he told me, I
wasn’t horrified that
he was so exposed to
strangers online. In
fact, it provoked a
feeling of pride. Why?
Because it showed me
that he’s learning how to spot bad
actors and deal with them.
This wasn’t the first time he
came across a stranger saying or
doing things he didn’t like in an
online game, and it likely won’t be
the last. He once blocked a teen-
ager who shared what my son only
described as an inappropriate
photo of his girlfriend. He has
blocked others for swearing.
At first I was uncomfortable.
Wouldn’t it be better if he never
had to experience these incursions
in the first place? But seeing how
he handled them made me wonder:
Are we doing children a disservice
when we lock everything down? Are
we better off giving them some free
rein and helping them develop the
digital smarts to navigate online
safely, knowing we can probably
pull back if necessary? Could it pos-
sibly be a good idea to let kids in-
teract with strangers?
To gut-check myself—and to
make sure I’m not steering readers
wrong—I called several experts in
online safety. They confirmed that
there’s a rethinking of the conven-
tional wisdom around stranger
avoidance.
“I’ve been in this field since the
mid-90s when the advice was,
‘Don’t talk to strangers online.’ In
the 25 years since, the messaging
has evolved and changed as the
online world has evolved and
changed,” said Stephen Balkam,
founder and chief executive of the
LIFE&ARTS
have committed to hotels, resorts
and safaris much further in ad-
vance than usual.
“It’s incredibly full already,”
says Wayne Nupen, the regional
touring director for &Beyond, a
South Africa-based travel company
that arranges high-end tours in
Asia, Africa and South America. He
says 89% of clients with trips up-
ended by the virus have rebooked
the same itineraries for 2021. The
lodges and camps the company
uses have limited space, and
they’re also seeing new bookings
for next summer on top of the
postponements.
Kensington Tours of Wilming-
ton, Del., has already rescheduled
thousands of bookings since Janu-
ary, most to Europe and Africa, for
next year. “They spent months
planning, so there’s an emotional
attachment to where they were go-
ing,” says Alison Hickey, the com-
pany’s president, who has dubbed
it the Do-Over Trip.
“Last year we never would have
had people making reservations a
year in advance,” says Jannes Soe-
rensen, the general manager of the
Beaumont, a 73-room hotel in the
FAMILY & TECH | JULIE JARGON
Teach Kids How to Talk
to Strangers Online
EXPERTS HAVE NEW ADVICE ABOUT MEETING AND INTERACTING WITH FRIENDS ONLINE
n Review the tech options. Rosa-
lind Wiseman, co-founder of Cultures
of Dignity, which supports the well-
being of young people, suggests sit-
ting down together to look at how to
block, mute or report online players
who make them uncomfortable. “That
shows them how to build compe-
tence and prepare for if something
happens,” she said.
Family Online Safety Institute.
As the line has blurred between
our online and offline worlds, ex-
perts are advising parents to
weigh risks and rewards, and help
children manage risks to get the
rewards of playing games online
or meeting people on social media,
Mr. Balkam said. “The way to be
risk-free is to disconnect all the
devices and switch off the router
until they’re 18. But then you take
away all the rewards.”
There are times when it’s neces-
Mayfair district of London. Al-
though the hotel has been closed
since March, and people usually
don’t book more than 90 days in
advance, he has been in continu-
ous contact with guests whose
stays were canceled and already
taken about a dozen bookings for
next summer.
89%
Clients of a South African travel
company that have rebooked for 2021
In a study released earlier this
month, Tripadvisor reported that
over a third of consumers surveyed
in late March reported rescheduling
a trip due to Covid-19 rather than
canceling it, with another quarter
planning to reschedule a canceled
trip at a later date. Two in five
travelers said they rescheduled as a
result of the travel restrictions or
because their chosen destination
was closed for visitors.
n Never let your guard down. Teach
kids to consider online-only friends as
always on probation. “People who are
good at grooming kids are sophisti-
cated enough to bide their time and
appear to be something else until kids
let their guards down,” Dr. Rich said.
n Stay on topic. It’s important to warn
kids against veering off topic in a
sary to intervene on kids’ behalf,
and even shut something down
when there’s evidence of predators
in their midst. Parents must re-
main vigilant about that, especially
now, when kids are spending more
time online than ever.
But a general rule to never talk
to strangers online seems as mis-
guided and unrealistic as a rule to
never talk to strangers in the real
world. Pre-pandemic, we inter-
acted with strangers every day—at
the grocery store, in the park, in
Wednesday, June 24, 2020 | A11
Travelers are rebooking trips to
Botswana, left, and Ireland, above.
her the longer she waited, the
fewer options she would have to
find dates next summer, since ev-
eryone else was deferring. Ms.
Howell decided to reschedule the
exact same trip for June 2021:
That way she didn’t lose her de-
posit, but she does have to pay an
additional $2,000 for the annual
rate increase.
Even though she had been plan-
ning the trip since September and
didn’t want to start from scratch,
Ms. Howell would have preferred
to cancel and rebook on her own
time. It is unclear whether there
will be a vaccine next year—or if
the camps she’s booked will even
still be in business. “I’m excited to
go, but I’m uncertain it will really
happen,” she says.
Henry Harteveldt, president of For Darcey Carr, the decision to
travel research company Atmo- postpone rather than cancel her
sphere Research Group, says that trip to Ireland was less about fear
while many people are postponing of losing the deposit than it was
trips until next summer, no one about protecting the health and
can really say what will happen, safety of her family and not being
because the course of the corona- able to secure a space at the loca-
virus remains so uncertain: “Book- tion of her dreams in the country
ings don’t always mean travelers.” where she was raised.
Susan Howell shares that uncer- The New York-based invest-
tainty. She was scheduled to go on ment banker planned a wedding
a two-week journey with her fam- with 175 people at Dromoland
ily to South Africa and Botswana
this June to celebrate her daugh-
ter’s acceptance to medical school.
In April, the travel company she
Castle in Ireland’s County Clare.
When she started looking into re-
scheduling it, she found many of
the people she’d hired, such as
booked through told her she would the photographer, makeup and
lose her deposit of $14,000 if she hair artists and the band, were al-
canceled the trip because even ready filling up fast with bookings
though the borders of the coun- for next summer.
tries were closed, the camps were Instead of June, as was planned
still planning on being open in this year, Ms. Carr picked a date in
June, and the borders might re- September.
open by then. She says the hotel and all the
Her travel insurance, which in- vendors honored the same rate she
cluded trip cancellation, didn’t would have paid this year. She ex-
cover a pandemic. pects almost all the guests will
“I was in a bind,” says Ms. How- still attend, in part because they
ell, who owns a custom home- will be much more grateful about
building company with her hus- being able to get away. “It will be
band based in Lawrence, Mass. In even greater to be able to cele-
mid-May, the travel company told brate,” she says.
ings to videogames and flags those
where players can interact online.
“The whole stranger-danger
movement did more to create anxi-
ety in children than it did to pro-
tect them,” said Michael Rich, di-
rector of Boston Children’s
Hospital’s Center on Media and
Child Health. “If you turn everyone
you don’t know into a danger, you
live in a pretty scary world.”
Stranger-danger is rooted in
highly publicized kidnapping cases
of the 1980s and resurfaced in the
early internet days. Those fears con-
tinue to shape how we parent and
view technology. So how do we let
go of them and prepare kids for lives
that are increasingly led online?
Experts I spoke to suggest a
ILLUSTRATION BY DAN PAGE
graduated approach to allowing
online interaction. Young children
might be allowed to communicate
only with adults and friends their
parents know and trust. FaceTim-
ing grandparents or texting friends
through a parent’s phone, or even
an app with stringent safety fea-
tures, are ways to start. Later, par-
ents can limit who they can play
with online by using parental con-
game or social-media post. A trols in gaming systems, and relax
stranger who starts chatting about the controls as children get older
personal things is a red flag. and demonstrate maturity.
At around age 10 or 12, “the
n Don’t go off-platform. If some- training wheels start to come off a
one asks your child to go into a bit, and we go from using parental
one-on-one direct chat or another controls to online safety tools,”
messaging service where there’s no Mr. Balkam said.
moderator, your child should know The tools my son used involved
better than to follow. being able to immediately remove
and permanently block someone
who isn't playing nicely. Although
restaurants. It’s how we interact I’m proud of how he handled the
that matters, experts say. Just like situation, I don’t have blind faith
we tell our kids not to get into a that he will always make the best
car with, or accept candy from a decision. He is, after all, still a
stranger, we should emphasize to good 15 years away from having a
them never to reveal personal in- fully developed prefrontal cortex.
formation to strangers online. His gaming console is in the
“What we’re teaching our kids is family room, where we can hear
to be respectful, and when they’re him talking while he plays. My
not being treated respectfully to husband joins in at random times,
use the tools at their disposal,” said identifying himself as the dad, so
Patricia Vance, president of the En- he understands who our son is
tertainment Software Rating Board, playing with and the players know
which assigns age and content rat- there’s an adult around.
 A12 | Wednesday, June 24, 2020
Quarantine Pals
Are in Demand
For Screen Roles
Directors try to limit risk of contagion
by casting actors’ relatives in series
BY ELLEN GAMERMAN
ACTORS, MEET your new scene
partners: Mom and Dad.
Performers who live with other
people are among the lucky few
getting work right now. Spouses,
roommates, children, parents and
pets have emerged as the ultimate
co-stars, able to perform close to
each other at a moment when very
few others can.
A scene “can never really come
alive until there is an actual hu-
man to engage with,” said Sienna
Miller, who recently appeared op-
posite longtime friend and fellow
actor Tara Sum-
mers in a piece
for the “24-Hour
Plays” series on-
‘We’re father and
line. Ms. Miller there was a shorthand,’ daughter who
chose to ride out
the crisis by iso-
said Robert Glenister of acts,
lating herself in acting together.
a house with six
other people,
most of them ac-
tors, in upstate New York. “When
the lockdown began, a group of us
decided to form a little commune.”
A talented germ bubble is help-
ful as the entertainment industry
takes slow and halting steps to get
back to business. Last week, the
CBS soap opera “The Bold and the
Beautiful” returned to set for the
first time since mid-March, but
production paused the next day to
refine Covid-19 testing procedures
for the cast and crew.
The idea of a ready-made cast—
also known as a family—appeals to
some producers.
“We needed actors, plural, all in
one address isolating together,”
said Jeff Pope, a producer of the
recent ITV/BritBox lockdown
drama “Isolation Stories,” which
premieres in the U.S. this week.
Actor Eddie Marsan seemed like
a logical choice, with two sons, Bo- Salengo. “We’d been quarantined for
dhi and Blu, around the age of the
boys in the script. Mr. Marsan
signed on after his sons agreed to
the idea. Bodhi Marsan, 12, already lengo didn’t miss a beat: “I person-
FROM TOP: BRITBOX; THE 24 HOUR PLAYS; BBC/GCB FILMS/INFINITY HILL
Georgia and David Tennant in the BBC’s ‘Staged,’ a series filmed over Zoom.
Riding the BMW Motorcycle That 007 Made Famous
Atlanta-based Brooke Wilson,
43, an independent marketing con-
sultant and author of the Biker
Brooke Blog, on her 1998 BMW R
1200 C, as told to A.J. Baime.
I love city living. But one of the
great things about Atlanta is how
fast you can be in the wilderness
on a motorcycle. The Great Smoky
Mountains, the Blue Ridge Park-
way, amazing roads in northern
Georgia, North Carolina, and Ten-
nessee—all of it is reachable on a
weekend trip, and there are camp-
grounds all over, some specifically
geared for motorcycle riders.
When I started riding in 2000, all
I knew was Harley-Davidson, and I
bought a Sportster. But when my
Harley was stolen in 2006, a friend
recommended the BMW R 1200 C.
It was known for being the bike
James Bond rode in “Tomorrow
Never Dies.” I liked the idea of reli-
AUDRA MELTON FOR THE WALL STREET JOURNAL
able German engineering, but the
bike also had that cruiser look and
feel I love. The bike was built for
the kind of riding I wanted to do,
and it didn’t hurt that it had a little
007 magic. I bought my first in
2006, a 1998 R 1200 C, and started
taking it on camping trips in the
mountains. I figured out how to
carry everything I needed to sustain
myself, on this bike.
In 2012, I was riding when a
a working actor, liked the idea of
shooting in their London home.
“The most fun experience was
knowing the set very well and be-
ing able to walk around freely, go-
ing to your room as if your room
was your trailer,” he said.
When the episode was about to
air, Mr. Marsan felt more excited
than he had in decades. His children
had shared his professional world.
“It felt like my first gig again.”
In the original script for an-
other episode of “Isolation Sto-
ries,” a young woman cares for
her sick father. But the concept
changed when Robert Glenister
got the part of
the senior citi-
zen. Mr. Glenis-
son, so ter does have a
but it was
his actor son
Tom Glenister,
24, who nabbed
the role because
he was the one
living at home.
“We’re father and son, so there
was a shorthand,” said Robert
Glenister, 60. Without much time to
rehearse, he said, “there was an un-
spoken understanding between us.”
When Lauren Greenhall was
casting her 35-minute YouTube
beauty-contest spoof “The Miss
Quarantine Pageant,” she searched
for two comedians to play room-
mates. After running through a list
of married actors, she knew she
wanted Courtney Maginnis. But
she felt extra confident because
she liked Ms. Maginnis’s newlywed
husband, Casey Salengo. “It wasn’t
like if I got her I would be stuck
with a lemon. I knew both would
be really good.”
Ms. Maginnis plays a pageant
contestant stuck with a roommate
who annoys her, portrayed by Mr.
many weeks—I don’t know if there
was a lot of digging,” she said of her
efforts to get into character. Mr. Sa-
woman pulled out in front of me. I
T-boned her vehicle, and while I
was fine, the bike was totaled. I was
heartbroken. I got an insurance
check and while I could have gotten
just about any bike, I immediately
started hunting for another R 1200
Atlanta resident Brooke Wilson with her 1998 BMW R 1200 C, which she uses for weekend camping trips in the region.
LIFE & ARTS
Robert Glenister and his son, Tom, in an episode of ‘Isolation Stories.’ Below, Tara Summers, left, and Sienna Miller, who
spent part of the lockdown with others in a house in upstate New York, performed in the ‘24-Hour Plays’ series.
ally enjoyed it and loved spending a
lot of time with my wife.”
Working with a significant other
can be tricky, especially in a new re-
lationship. Comics Taylor Tomlin-
son, 26, and Sam Morril, 33, had
been dating five months when the
virus hit. They decided to shelter in
place together at Ms. Tomlinson’s
Los Angeles home. Early in quaran-
tine, they posted Instagram skits
about their lockdown experience.
Suddenly, two people used to
being alone and working on the
road were thrust into an intimate
domestic life. “To do this during a
global emergency is terrifying and
stressful and also kind of hilarious
in how sci-fi it all feels,” said Ms.
Tomlinson. The couple said they
never would have been so public
with their relationship were it not
for the pandemic.
When the idea of the recent
BBC series “Staged” came along,
actor couple David Tennant and
his wife, Georgia, jumped at the
chance to participate after weeks
cooped up at home.
“We’d been doing home school-
ing for a long time, and we were re-
ally eager to not do that for a min-
ute,” said Ms. Tennant, who has five
children including a new baby.
MY RIDE | A.J. BAIME
C. It was not going to be easy;
BMW only made the bike for about
six years starting in model year
1998. You don’t see a lot of them.
Through Cycletrader.com, I
found one in Asheville, N.C., and I
convinced my mother to drive me
In the show, a lockdown comedy
filmed over Zoom about stage ac-
tors rehearsing a play remotely,
Mr. Tennant deliberately portrayed
a simpering version of himself. “I
was much more sympathetic to
David—I wouldn’t be in real life,”
said Ms. Tennant.
Co-star Michael Sheen’s partner,
Anna Lundberg, made her TV debut
in the show. The women held their
own, a critic for the U.K’s New
Statesman wrote, describing “the
joy of seeing both actors’ partners,
Georgia Tennant and Anna Lund-
berg, out-acting the men.”
Performing in a house under
lockdown can be challenging.
While trying to record their scene
in an attic, Ms. Miller and Ms.
Summers had to dodge the occa-
sional photo bomber. “There was a
cat and a dog in the house,” said
Ms. Summers. “It was tricky trying
to stop the animals.”
The “24-Hour Plays” series has
been popular with actors shelter-
ing in place together. The short
scenes, normally performed on
stage but now a nearly weekly fix-
ture online, require a playwright,
director and cast to complete a
new work in a single day.
Actor couples in recent install-
3½ hours there. I remember sitting
in the car with my gear on, helmet
in my lap, cash in hand. We got to
Asheville and the bike was a dud. I
was so dejected. As we drove
home, all the sudden I got a text
from a friend with a Craigslist link
THE WALL STREET JOURNAL.
ments include Zosia Mamet and
Evan Jonigkeit, Becky Ann and Dy-
lan Baker and John Gallagher Jr.
and Libby Winters.
“We’re both in a creative desert
right now because we can’t work
in the real world, so it’s nice to be
able to make things together,” said
Ms. Mamet, who spent an after-
noon wandering outside her up-
state New York home covered in
fake blood for the series.
Married actors Crystal Dickin-
son and Brandon J. Dirden ap-
peared in a “24-Hour Play” that
used their own kindergartner
Chase as a prop. In the comic
short, the couple battles over his
convoluted math problems for
home-school. As the grown-ups
lose their sanity, 6-year-old Chase
delivers a long deadpan look into
the camera.
Chase, who isn’t a professional
actor, was sometimes caught off
guard by his new job. When his
parents rehearsed, he thought they
were really fighting. And he was
no fan of endless takes. At one
point he told his mother: “I think
you got what you need.”
But he delivered. “I talked to
him like a real actor,” Mr. Dirden
said, “and he got it.”
for a 1998 BMW R 1200 C in Law-
renceville, Ga. This was in 2012,
and I still have that text. I wrote
back, “This has to be a joke. The
ad says the bike only has 749
miles on it.”
My mother drove me straight to
Lawrenceville. The owner lived on a
dirt road, and he had this garage
full of car parts. He led us to the
back and there was this pristine
bike—the same model year, even
the same color as my first BMW. I
asked, “How is it that this 14-year-
old bike has only 749 miles on it?”
He explained that he threw out his
back shortly after he bought it and
his wife now convinced him to sell
the thing. We agreed on $6,500 and
he was so excited that the bike was
going to a good home, he gave me
all these bags and accessories. It
was a once-in-a-lifetime find.
With all the sad news about the
pandemic, the bike has been a sav-
ing grace. We have had glorious
weather, and my friends and I have
been riding more than ever. Even in
campgrounds you can be social dis-
tancing. The camaraderie is a great
part of it. There’s nothing like a
cold beer around a campfire with
friends after a long ride.
Every now and then a stranger
will approach me and say, “Hey,
is that that James Bond bike?”
Yep, it is.
 THE WALL STREET JOURNAL.
FROM TOP: ROY COX; NIC ANTAYA/THE BOSTON GLOBE/GETTY IMAGES
Classical’s Opportune Moment
The pandemic offers the music genre a chance to reinvigorate itself
BY DAVID ROHDE
THE CORONAVIRUS pandemic is
a rolling catastrophe for all of the
performing arts, and arguably the
genre that could suffer the most is
classical music. Yet the path back
to live performances draws atten-
tion to what the classical-music
world has put off, mismanaged or
allowed its own insecurities to
block out. So the crisis could end
up as a blessing in disguise.
In many places in America, the
classical audience is a snapshot of
the most vulnerable population for
bad Covid-19 outcomes. But tell
concert presenters that it’s a prob-
lem that their ticket holders are
overwhelmingly senior citizens,
and they’ll either tell you that it’s
always been this way or they’ll
brag that they brought 150 high-
school students to their last con-
cert in February.
Yet it hasn’t always been this
way. Check the photos of any clas-
sical-music audience in the U.S.
from the 1950s to 1980s, and no-
tice all the people who look like
they either came from the office
or left the kids at home with a rel-
ative or babysitter.
And what about those high-
schoolers? Egged on by grant-dis-
pensing organizations, many con-
cert presenters paper their
audiences with free tickets for stu-
dents compelled to show up in the
concert hall. These programs have
merit in themselves, but they do
not solve the problem of getting
millennial and adult Gen-Z ticket
buyers to willingly fork over even
$10 to spend an evening with the
local orchestra or string quartet.
TELEVISION REVIEW | JOHN ANDERSON
An Epic of True-Crime
Obsession
“I’LL BE GONE in the Dark,” an
epic true-crime story for true-
crime junkies, is also about a true-
crime junkie: Michelle McNa-
mara—journalist, internet sleuth
and “citizen detective”—whose
posthumously published book
about her personal obsession, the
“madman” she dubbed the Golden
State Killer, is the basis for the six-
part series. “I had a murder habit
and it was bad,” she says. After an
episode or two, viewers may find
they have a similar problem.
“The great tragedy to me about
this case is that it’s not better
known,” McNamara is seen saying
during an interview in 2011, at
which time she was on the virtual
trail of a figure known by the acro-
nym EAR/ONS—the East Area Rap-
ist/Original Night Stalker, also
known as the Visalia Ransacker,
who was eventually credited with
three separate crime sprees in the
Sacramento and San Francisco ar-
eas between 1974 and 1986, and ul-
timately 50 rapes and at least a
dozen murders. McNamara coined
the term “Golden State Killer” in
2013, at which point a suspect had
not yet been arrested. Those who
can’t stand the suspense can em-
ploy McNamara‘s tool of choice—
Google—to learn the current dispo-
sition of the case. For those with an
affinity for tension, “I’ll Be Gone in
CULTURAL COMMENTARY
Before the world blew up, a se-
lect few orchestras around the
U.S., including the Seattle Sym-
phony and the Los Angeles Phil-
harmonic, had been seeing recent
success in attracting an urban and
near-suburban core of younger
adults to their regular concert se-
ries. One of their insights in doing
so was to stop confusing the fact
that younger adults don’t know
classical music with the idea that
they don’t like classical music.
Americans today grow up with
the Dark”—words the GSK whis-
pered in a victim’s ear—will pro-
vide plenty.
Directed principally by doc vet-
eran Liz Garbus (of last year’s first-
rate “Who Killed Garrett Phillips?”)
along with co-directors Elizabeth
Wolff, Myles Kane and Josh Koury,
“I’ll Be Gone” isn’t just a story
about unspeakable crime, though
there’s plenty of that. There are
also remarkably courageous survi-
vors willing to talk about their hor-
rific experiences. There is much
time spent on McNamara’s obses-
sions, not just with crime as an act,
but with the wreckage wrought on
victims’ lives, the holes that un-
solved cases leave in the social fab-
ric, and the new opportunities pre-
sented by technological innovations
—namely, the internet and DNA
testing—that can help to solve the
previously unsolvable. “Somebody
can now be wheeled out of their
house for something they did in
1957,” she says, with a mix of won-
derment and satisfaction.
She was also a person—no sur-
prise—who liked puzzles, and the
one the filmmakers had to grapple
with was integrating her story
with that of serial rape and mur-
der in a way that wouldn’t feel
grossly out of proportion. Or ex-
ploitative. Or just wrong. “I’ll Be
Gone in the Dark” is for the most
LIFE & ARTS
easy access to a much wider variety
of music—with the 50 or so sub-
genres of “rock” music—than the
tyranny of the Top 40 radio format
that greeted the baby boomers.
Trying out something new comes
naturally to younger Americans if
they have a trusted endorser.
Try this experiment right now:
Go to YouTube and pull up any
video of the Dmitri Shostakovich
Symphony No. 10, Second Move-
ment. It’s over in five minutes, or
four if the conductor had an extra
Writer Michelle McNamara, who helped solve the case of the Golden State Killer
part a well-executed juggling act
as well as a thoughtful examina-
tion of the criminal justice system
and its flaws, but sometimes the
celebration of McNamara throws
matters off balance, and the focus
on where her obsessive nature
would lead takes a little time to
make sense. Is her book deadline,
for instance, of any great signifi-
cance given the gravity of the
cases she’s writing about? Not re-
ally. But have patience.
That book, subtitled “One
Wednesday, June 24, 2020 | A13
cup of coffee that morning. Tell
me you are not blown away. But in
acting as your influencer, I’ve
saved you from the mountain of
inside-baseball program notes that
you would have been handed in
the concert hall about what this
music “means.”
Younger music fans know that it
was the cancellation of spring and
summer tours by pop artists—
from Taylor Swift to Alicia Keys
and Journey to Justin Bieber—that
started driving venue closures and
Woman’s Obsessive Search for the
Golden State Killer,” was com-
pleted after her 2016 death by fel-
low crime journalists Paul Haynes
and Billy Jensen and her husband,
comedian Patton Oswalt, who ap-
pears throughout and whose mem-
ories provide a palliative to the
terrors being retold and re-en-
acted. As Mr. Oswalt explains, as
no one else likely could, McNa-
mara was blazing a trail, using the
internet in a way it had never
been used, investigating crime in a
Bryan Lee, Joel Link, Milena Pajaro-van
de Stadt and Camden Shaw of the
Dover Quartet, left; pianist Aaron Diehl
at the Newport Jazz Festival, below
canceling entire summer festivals.
Few classical promoters recognize
that this year’s absence of stadium
and festival concert tours by pop/
rock icons opens up an opportu-
nity to get into the headspace of
potential new audience members
before they all gravitate to the pop
stars’ digital replacements. To do
so they need to focus attention on
one of classical music’s biggest as-
sets: its own tremendous inven-
tory of recordings and videos of
real, not virtual, performances.
Now is an ideal time for
promoters to get into the
headspace of potential
new audience members
So enough already with the pan-
demically clever Zoom ensemble
performances. It’s time to push out
the good stuff to new fans. This in-
cludes transitional pop-to-classical
material—such as daring videos by
the flamboyant piano duo of Greg
Anderson and Elizabeth Joy Roe,
covers of pop anthems by the Phil-
adelphia-based Dover Quartet, and
bluegrass-inflected new works by
Kentucky-born classical violinist
Tessa Lark.
On Broadway, some theaters
have reportedly considered one-
person shows as part of their
ramping back up. That may be
minimally appealing for the theater
audience, but classical music has a
ready-made, long-legitimized ver-
sion of the one-person show—the
piano recital. More than one era
has been labeled the Golden Age of
the Piano, and with symphony or-
chestras struggling to figure out
social distancing on stage, the time
may be ripe for another one.
Following World War II, Ameri-
cans didn’t just pack concerts by
European imports Arthur Rubin-
stein and Vladimir Horowitz. The
postwar period also saw the rise
of the OYAPs—the Outstanding
Young American Pianists, so la-
beled from a cliché phrase in many
of their reviews. Of course, back
then, all of the OYAPs were young
white guys. Today’s OYAPs include
Aaron Diehl, an African-American
classical/jazz crossover artist;
Daniel Hsu, a native-born Califor-
nian in his early 20s with aston-
ishingly mature interpretations of
the traditional repertoire; and
other male and female keyboard
artists from diverse global heri-
tages who bring their own unique
vibes to the concert stage.
If classical music wants to be a
big part of the future cultural pic-
ture, it can use some of its formats
to start returning sooner than
other genres and get some ear-
worms into new listeners’ heads. It
will put the field in better shape
than it had been coming into this
historic upheaval.
Mr. Rohde has conducted musicals
from “Oklahoma!” to “Rent” and is
a collaborative pianist, teacher
and writer based in Washington.
He can be reached at
@DavidBachToRock.
HBO
way that had never been done and
leading—through her True Crime
Diary website and subsequent pod-
cast—a group of like-minded, simi-
larly compulsive people doing the
same. Unlike the police, who inves-
tigate crime as a job, McNamara
and company did it for what might
be described as love. And, as we
come to see, because they basi-
cally couldn’t help it.
I’ll Be Gone in the Dark
Begins Sunday, 10 p.m., HBO
A14 | Wednesday, June 24, 2020 THE WALL STREET JOURNAL.

SPORTS
Washington Hates Its NFL Team’s Name
City officials want the league’s social justice drive to take out the racial slur in the local team’s name
BY LOUISE RADNOFSKY elected officials of the city whose
AND ANDREW BEATON name is the only portion of the
team’s name they’ll say—when

T
Washington they’re not calling it “that R-word.”
he National Football It isn’t clear what else it would
League’s intensified ef- take for him to change his mind
forts to show its social about it. He’s also had help.
consciousness during a In the past, the NFL attempted to
time of reckoning over defend the name. In 2018, Goodell
systemic racism have bypassed one pointed to a Washington Post poll
glaring instance: the racial slur that about the name he described as
one of its teams uses for a name. “overwhelmingly positive” in sug-
The name of Washington’s team, gesting that Native Americans don’t
owned by Dan Snyder, has long find the name offensive. The poll
been the hardest icon to topple in showed nine in 10 Native Americans
sports, even as national and corpo- don’t see the name in a negative
rate pangs of conscience have taken way. In a 2013 letter to Congress,
out Aunt Jemima, “Gone With the the commissioner described the
Wind,” Confederate flags in Nascar name as a “unifying force.”
and Confederate statues in cities. More recent data suggests past
The same nationwide movement research underestimated Native
prompted NFL commissioner Roger Americans’ opposition to the name.
Goodell to deliver the league’s most One study in the past year showed
strident anti-racist message after a 49% of Native Americans were of-
group of the game’s most promi- fended by it, and that climbed to
nent players called out the league 67% among people who strongly
to do more. identified as Native American.
But that statement has made it The Supreme Court in 2017 ruled
difficult to reconcile its silence over that the government couldn’t reject
one issue it can control. The league trademarks that might be consid-
is amplifying messages to combat The NFL wants to fight racism but has remained silent about a team name that advocates and politicians call racist. ered disparaging or offensive,
racial injustice amid calls that one boosting the team in its effort to
of the game’s most prominent fran- comment for this article. The league back in the city under the current Kennedy Memorial Stadium—not at save its trademarks after the U.S.
chises employs a derogatory nick- and Goodell have in the past vigor- name. (The team’s current stadium the hands of protesters, but rather Patent and Trademark Office can-
name for American Indians and an ously defended the name. is in Maryland.) It could also stoke Washington’s convention and sports celed them in 2014.
eyebrow-raising image on its logo. The team’s most prominent cor- unrest among the league’s activist authority, which does business as The Washington Post has contin-
“One wonders if Dan Snyder can porate sponsors—FedEx, Bank of players, one of whom already Events DC. ued to use the name in its reporting
hold out much longer, in the face of America, Bud Light and Pepsi— brought up the issue recently on so- The authority said in a statement (as has The Wall Street Journal).
what looks as if it is a revolutionary didn’t comment when asked how cial media. that “removing this statue is a small Last week, however, the Post edito-
change in what people will anymore they felt about associating their “It needs to happen,” said one and an overdue step on the road to rial board published a call to
tolerate,” said Eleanor Holmes Nor- brands with the name in this cli- high-ranking league executive, who lasting equality and justice.” “Change the name of the Washing-
ton, Washington, D.C.’s nonvoting mate. But privately, people inside did not want to be identified dis- Washington was the last NFL ton NFL team. Now.”
delegate in Congress. “I understand the game say the name change cussing another team’s business. team to integrate in 1962—and did Many Washington, D.C., officials
that the word ‘Redskins’ is not must occur, though they also con- Even beyond the name, racism in so only after the Interior secretary at say they’re at a loss over what more
about an African-American, but it is tinued to say it’s up to Snyder, the team’s past has been prominent the time, Stewart Udall, threatened they could do to get a new name.
equally racist and equally opposed who’s vowed never to change it. in the past week. A monument to Marshall by telling him he would re- “The NFL, the league, needs to just
by African-Americans.” His continued refusal to do so former owner George Preston Mar- voke the lease on the D.C. stadium. say, either you do this or you’re no
It’s the one issue nobody associ- could also stymie the team’s efforts shall, who long blocked the team Snyder has held firm despite be- longer going to be able to play in
ated with the NFL is willing to for a new stadium, which Washing- from signing black players, came ing privately disparaged by execu- this league,” said David Grosso, a
speak publicly about these days. ton, D.C., lawmakers said in inter- down early Friday morning outside tives, fiercely hated by his team’s council member who has led the
Snyder and the NFL declined to views they will refuse to permit the team’s former home at Robert F. fans and openly sneered at by the push to scrap the name.

Novak Djokovic Tests Positive for Covid-19

BY JOSHUA ROBINSON tion remains a high-risk proposi- vaccine to compete. But that re-
tion. The other positive cases were mained a hypothetical situation.
SOME 4,000 PEOPLE PACKED Grigor Dimitrov of Bulgaria, Borna This debacle underlined why tour- FROM TOP: AL BELLO/ALLSPORT/GETTY IMAGES; DARKO VOJINOVIC/ASSOCIATED PRESS

into a Croatian stadium last Sun- Coric of Croatia, and Viktor Troicki naments would need to be so cau-
day for a strange and exotic spec- of Serbia, in addition to members tious.
tacle: a live tennis match, between of their respective entourages. It has earned Djokovic little
top-level pros, in front of fans. “We organized the tournament sympathy from his fellow pros.
It was the second leg of the at the moment when the virus has “Boneheaded decision to go
Adria Tour, a string of exhibitions weakened, believing that the condi- ahead with the ‘exhibition,’ ”
through the Balkans organized by tions for hosting the Tour had tweeted Nick Kyrgios. “Speedy re-
the No. 1-ranked men’s tennis been met,” said Djokovic, who con- covery fellas, but that’s what hap-
player Novak Djokovic. With the firmed on Tuesday that he and his pens when you disregard all proto-
coronavirus ebbing in the region, wife Jelena had both tested posi- cols. This IS NOT A JOKE.”
the series was supposed to be a tive at home in Belgrade, Serbia. During the tour, Djokovic and
step toward normalcy for a sport “Unfortunately, this virus is still his guests had done all sorts of
that has been shut down since present, and it is a new reality that things that were normal before a
mid-March. we are still learning to cope and global pandemic and completely Novak Djokovic had recently organized a string of charity tournaments.
Within 48 hours the tournament live with.” cringe-inducing in the middle of
had turned into something else: a Djokovic’s attitude toward the one. They embraced at the net af- never wearing a mask. to take—if we weren’t already—to
fiasco. Four of the players, includ- virus had already made headlines ter matches. They played pickup This latest flare-up may give the take this extremely seriously,” said
ing Djokovic, have since tested pos- once during the tennis shutdown basketball. They partied in a Bel- sport’s globe-trotting players more Andy Murray, who is playing an ex-
itive for Covid-19, sending a sharp when he said he would consider grade nightclub, where videos reasons to wait before resuming hibition in the U.K. instead of gear-
warning to the rest of the sports staying home if tournaments began show them limbo dancing, occa- play around the world. ing up for Wimbledon, which
world that any return to competi- requiring that players receive a sionally without shirts on and “It’s kind of a lesson for all of us would have started on June 29.

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.
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ADDRESSING THE BALL | By Jim Holland 10 Treated with
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Oklahoma City 88 62 pc 88 67 pc Edinburgh 74 56 pc 77 57 pc Zurich 80 52 s 81 57 s P R E Y D E S I S A D L Y

THE WALL STREET JOURNAL.
OPINION
Covid Was a Punch in the Mouth
If it’s true
that America
recently re-
corded its
two-mil-
lionth coro-
navirus in-
BUSINESS
fection, then
WORLD
the U.S. of
By Holman W.
late 2018 is
Jenkins, Jr.
about to get
its first case.
That is, a country of 328 mil-
lion people has yet to en-
counter the virus. Or if, as
seems plausible, the true in-
fection rate is understated by
90%, then the U.S. of 2010 is
about to encounter the virus
for the first time—a country
of 310 million people.
OK, this framing may be
dubious, but it’s clear the
next 99% of the country will
have a very different Covid
experience than the first 1%.
Nosocomial infections, those
caused by the health-care
system itself, especially of the
elderly and medically vulner-
able, are way down. Millions
of Americans may turn out to
have some kind of resistance
we don’t understand. The lat-
ter idea has caught fire be-
cause of the puzzling failure
of the virus to spread more
than it has and because of
many specific examples of
people who escaped infection
in environments where they
might have been expected to
contract Covid-19.
A realistic picture of our
virus challenge has been elu-
sive amid the media slogan-
eering and calculated political
positioning of our officials. A
sensible and authoritative
The Police Reform Americans Want
Suppose Con-
gress wanted
to seize the
moment and
make real
progress on
POLITICS police reform.
What would
& IDEAS
the two cham-
By William
bers do?
A. Galston
They would
begin by tak-
ing to heart the words of
Abraham Lincoln, spoken at
Ottawa, Ill., during an epic
1858 debate with Stephen
Douglas: “In this and like
communities, public sentiment
is everything. With it, nothing
can fail; against it, nothing
can succeed.”
Today, 57% of Americans
believe police in dangerous
situations are more likely to
use excessive force against
black people, up from 34% in
2016. The finding comes in a
June poll from Monmouth
University. In the same sur-
vey, 76%, including 71% of
whites, say that discrimina-
tion against racial and ethnic
minorities in the U.S. is a “big
problem.”
Within the African-Ameri-
can community, 30% in a June
Kaiser Family Foundation poll
say they were treated unfairly
because of their race during
the past year. Forty-one per-
cent say they have at some
point been stopped or de-
tained by the police on ac-
count of their race, and 21%
say they were victims of po-
lice violence for this reason.
As South Carolina’s Lindsey
Graham remarked during a re-
cent Senate hearing, there is
something wrong when his
Every Dog Has His Day in Court
By Randy Maniloff
T
he Vermont Supreme
Court ruled this month
that Tyler Noyes could
seek damages from his grand-
parents for injuries sustained
when he was bitten by their
dog, Bobo. The decision,
Bradley v. Bradley, follows a
long tradition of courts decid-
ing if owners are responsible
for injuries caused by their
canines.
Some 200 years ago this
month Connecticut’s highest
court ruled in Hall v. Hall
(1820) that a dog-bite victim
was not entitled to receive
$175 from the dog’s owner
that had been awarded by
referees.
The road from Hall to
Bradley is lined with thou-
sands of judicial decisions ad-
dressing seemingly every pos-
sible scenario of a dog gone
bad. But a common thread:
judges taking care to ensure
that the accused pooch gets a
fair shake.
warning recently disappeared
from the CDC website: “In the
coming months, most of the
U.S. population will be ex-
posed to this virus.”
Good news is relative in
such circumstances. Testing
has grown rapidly, and new
cases are rising much faster
than hospitalizations. The av-
erage age of those testing
positive has dropped. Hooray.
If you can’t stop the spread,
then remove the elderly and
vulnerable from harm’s way.
That seems to be happening.
If a vaccine arrives, many of
us will come through the epi-
demic without ever encoun-
tering the virus. If a vaccine
doesn’t materialize, delaying
infections will prolong lives
and give doctors time to de-
velop treatments. More test-
ing is probably also the best
way to make sure people who
have Covid and not a cold
will be less likely to go to a
wedding and spray air kisses
in all directions.
Nobody started off know-
ing what the best combina-
tion of steps would be. New
Zealand has been hailed for
treating itself the way the
world should have treated its
elder-care facilities, by seal-
ing itself off while the outside
world seeks to quell the vi-
rus.
New Zealand can do this,
though, because it’s a wealthy
and isolated society. And un-
mentioned is a corollary: Its
happy ending depends on a
vaccine being developed. A
vaccine can be developed,
tested and proved only
against active viruses in large
home state colleague, Sen.
Tim Scott, has been stopped
and questioned by Capitol Hill
police on multiple occasions—
including while wearing his
official Senate pin—while it
has never happened to him.
It is impossible for officers
to do their jobs effectively
when they don’t enjoy the
trust of the communities they
are sworn to serve and pro-
tect. But without significant
changes in police practices,
this trust can’t be rebuilt.
Some of these changes will
require federal legislation.
And here again the American
people have spoken clearly,
across party lines. A ban on
chokeholds and strangleholds
is supported by 68% of all
Americans and 52% of Repub-
licans, according to the Kaiser
poll. Requiring police to give a
verbal warning, when possible,
before shooting at a civilian is
favored by 89% of Americans,
including 83% of Republicans.
More than three-quarters of
Americans, and more than 6 in
10 Republicans, favor requir-
ing states to release officers’
disciplinary records, a mea-
sure that might have saved
George Floyd’s life.
Most Americans want to
create stronger incentives for
police to do the right thing—
and to pay a price when they
don’t. A remarkable 95%
would require police to inter-
vene against, and report, the
excessive use of force by fel-
low officers, a measure that
could help tear down the
“wall of silence” protecting
wrongdoers from scrutiny.
Seventy-three percent of
Americans, including 55% of
In Twigg v. Ryland (1884),
Maryland’s highest court up-
held a jury’s decision that An-
drew Ryland, a butcher, was
not liable for a bite inflicted
by his dog. The dog followed
Mr. Ryland’s meat wagon as it
was making deliveries. While
Mr. Ryland’s driver knew the
dog to be vicious, Mr. Ryland
did not. So he wasn’t respon-
sible in the eyes of the law.
Are owners liable for
bites? Depends on the
pooch’s personality.
In Wolff v. Lamann (1900),
a Kentucky appeals court re-
versed a $1,000 jury award
for an 11-year old girl who
was attacked. The court ruled
that the jury should have been
instructed to consider that
the child was teasing the dog
and attempted to take meat
from him. The court observed
that it is common knowledge
populations.
It’s not a slur to say New
Zealand therefore is free-rid-
ing on the world’s efforts. Its
strategy is also highly risky,
with its own high pain quo-
tient. The legality of Prime
Minister Jacinda Ardern’s ac-
tions hasn’t been tested while
she remains popular, but her
popularity is not guaranteed
to last. The death forecasts
underlying her plan were
New Zealand and the
U.S. are opposites,
but neither had a plan
for the pandemic.
likely overblown. Her econ-
omy has long depended on
tourists, foreign students and
imported experts. The cost of
keeping it closed for years
will be vast. Herd immunity
has become a catch phrase
but never was exactly any
country’s strategy, yet now
New Zealand has adopted a
strategy, in effect, of herd
vulnerability. This will prove
a colossal blunder if a vaccine
doesn’t arrive and the rest of
the world makes its peace
with the virus.
In truth, New Zealand’s
strategy has been every bit as
accidental as America’s. It
had fewer intensive-care beds
than its peer countries. It had
little testing and contact trac-
ing capability. Only because it
attracts long-staying tourists
rather than hopscotching
business travelers (largely re-
Republicans, favor allowing
individuals to sue police offi-
cers when they believe exces-
sive force has been used
against them. Given this con-
sensus, legislators should be
able to reach agreement on
the court-created doctrine of
qualified immunity, which
makes it hard to hold officers
accountable when they violate
constitutional rights.
Majorities of both
parties’ voters back
measures to hold
officers accountable.
Mr. Graham, the chairman
of the Senate Judiciary Com-
mittee, has opened the door
to this discussion. “We don’t
want to deter people from go-
ing into law enforcement,” he
says. “But we do want to have
a sense of accountability. And
to the extent that qualified
immunity fosters a sense of
‘It’s really not my problem,’
let’s take a look at it.” Al-
though President Trump has
reportedly called this issue a
“red line,” Senate Republicans
shouldn’t allow him to pre-
clude its consideration.
While federal legislation
should reform policing, it
shouldn’t punish the police,
who are trying to do their
jobs under difficult condi-
tions. For example, my Brook-
ings Institution colleague
Rashawn Ray has proposed
housing subsidies to enable
more officers to live within
the communities they serve.
that interfering with dogs
while eating “is attended with
more or less danger of retalia-
tion on their part.”
John Domm was shooting
pool in a saloon when he was
bitten by a bulldog. A jury
awarded him $750. The Su-
preme Court of Illinois re-
versed, concluding in Domm
v. Hollenbeck (1913) that the
trial court misstepped when it
prevented the jury from hear-
ing more about the dog’s per-
sonality. Shortly before the
attack, the dog was in a
butcher shop and children
played and wrestled with him,
rode on his back and threw
him onto sawdust, all without
incident.
A Florida statute holds
owners responsible for their
dogs’ bites, but it contains an
exception if the owner had
posted a sign stating “Bad
Dog.” The Florida Supreme
Court ruled in Romfh v. Ber-
man (1952) that two bulldogs
were off the hook for a vi-
cious attack since their owner
sponsible for disseminating
the virus globally), it didn’t
find a case until late Febru-
ary. Otherwise New Zealand
might have been another It-
aly.
Even so, the country was
embarked on a traditional
flatten-the-curve pandemic
plan until voluble World
Health Organization officials
returned from China with an
unprecedented and shimmer-
ing tale of a flu-like disease
being contained and elimi-
nated.
The Ardern government
promptly changed to an
“elimination” strategy and
yet now finds itself on the
wrong side of the latest WHO
advice, which has taken to
stressing Sweden as a model
for living with the virus
rather than trying to defeat
it.
Which brings us back to
the U.S. We are discovering
more every day about the ef-
ficacy of masks, of hand
washing, of some kinds of so-
cial distancing vs. other
kinds. We are in the early in-
nings of the world’s encoun-
ter with the new coronavirus,
though the hummingbirds of
cable news have moved on to
the subject of race relations.
At their leisure, Americans
will make sense of the lock-
downs that swallowed up
three months of their lives. If
the next 99% of infections can
be endured without impover-
ishing millions of us, it will
raise interesting questions
about why the first 1%
couldn’t have been managed
without doing so too.
His research also finds that
many officers have excessive
workloads, forcing them to
make high-stakes decisions
while not at their best. Re-
ducing workloads and provid-
ing housing subsidies would
cost money, diminishing the
potential savings from trans-
ferring some current police
functions to mental-health
professionals and other social
services.
Police feel besieged on all
sides. Federal legislators
should extend an olive branch
by incorporating the Protect
and Serve Act into compro-
mise legislation. This bill,
which would make targeting
law-enforcement officers for
violent attack a federal crime,
is co-sponsored by Florida
Rep. Val Demings, reportedly
on the shortlist to be Joe Bi-
den’s running mate.
Whatever may be done at
the federal level, much of the
burden of rebuilding the rela-
tionship between police and
African-American communi-
ties will fall on states and lo-
calities. There’s an obvious
place to start, by curtailing
the practices that serve as
daily irritants and foster a
sense of injustice. These in-
clude stop-and-frisk, traffic
stops for minor infractions
such as broken taillights, and
arrests for marijuana posses-
sion, which already has been
decriminalized or legalized in
26 states and the District of
Columbia.
We have arrived at a rare
moment when meaningful
change backed by both U.S.
parties is within reach, and
we dare not miss it.
had posted a sign reading
“Beware of Dogs.” The state’s
top dog court was uncon-
cerned with technical non-
compliance with the law and
ruled that such a sign was
good enough, and even better,
than “Bad Dog.”
Volunteer work doesn’t help
with only college applications.
Ask Chino, a part German
shepherd pup. In Bermudez v.
Hanan (2013), a New York
court denied compensation for
a serious facial bite that Chino
inflicted on a party guest in
his owner’s Brooklyn brown-
stone. The judge was swayed
by photos showing Chino hav-
ing a “loving and warm rela-
tionship” with individuals who
he encountered as a therapy
dog for hospitals and nursing
homes. Sometimes a judge is
dog’s best friend.
Mr. Maniloff is an attorney
at White & Williams LLP in
Philadelphia and an adjunct
professor at Temple Univer-
sity’s Beasley School of Law.
Wednesday, June 24, 2020 | A15
BOOKSHELF | By George Melloan
Exports
And Angst
Trade Wars Are Class Wars
By Matthew C. Klein and Michael Pettis
(Yale, 269 pages, $28)
C
hina’s Communist Party gave up on running a
communist economy 40 years ago, and the rest is
history. But Matthew C. Klein and Michael Pettis argue
that China faces big problems unless it alters the policies
that have propelled it to great wealth and global prominence.
Ironically, their argument in “Trade Wars Are Class Wars”—
that some Chinese have grown rich at the expense of
Chinese workers and consumers—has a Marxist flavor.
China needs a redistribution of wealth, they say.
China gets prominent display in this book because the
authors focus on the relationships among the three big
trading nations, China, the United States and Germany.
But the work is both global and historical in scope and has
other interesting riffs, such as one on the success of the
gold standard before it was scuttled by World War I. The
authors weave a complex tapestry of monetary, fiscal and
social policies through history and offer opinions about
what went right and what went wrong.
Messrs. Klein and Pettis are mainly demand-side
economists. They admire John Maynard Keynes but don’t
neglect such free-market
stalwarts as Adam Smith.
They aren’t Marxists, of
course, but redistributionists.
The thesis of their book, they
say, is that “rising inequality
within countries heightens
trade conflicts between them.”
In short, they believe that trade
wars break out because elites in
some countries exploit workers
to promote exports and amass
wealth. Income inequality rises
not only in the exporting nations
but also in the importing ones,
where wages are driven down by
cheap imports. These disparities, they
assert, fuel political demands for trade barriers.
Thus for Messrs. Klein and Pettis, the international
problems of recent decades have less to do with geopolitics
than with “massive transfers of income to the rich and the
companies they control. Regular people everywhere are
being deprived of purchasing power—and tricked by
chauvinists and opportunists into believing that their
interests are fundamentally at odds. . . . The escalating trade
dispute between the governments of China and the United
States is the most obvious demonstration of the risks.”
That’s a bit of a mouthful but an interesting take on the
subject of globalization. It is of course true that global
trade is managed by governments, some protectionist and
some less so. It’s also true that economic oppression by a
ruling class is no stranger to the planet. Russian peasants
endured serfdom for 300 years. Titled British land owners
lorded it over their tenants. Karl Marx and Friedrich Engels
identified a problem but weren’t very good with answers.
Messrs. Klein and Pettis write: “Trade war is often
presented as a conflict between countries. It is not: it is a con-
flict mainly between bankers and owners of financial assets
on one side and ordinary households on the other.” For the
authors, a “trade war” is really an extension of the tension
created by income inequality. “Rising inequality,” they say,
“has produced gluts of manufactured goods, job loss, and
rising indebtedness. It is an economic and financial perver-
sion of what global integration was supposed to achieve.”
They argue that the U.S. has been a particular “victim” of
these forces: “Absorbing the rest of the world’s excess
output and savings—at the cost of deindustrialization and
financial crises—has been America’s exorbitant burden.”
Globalization was supposed to achieve great
things for a vast range of countries, not least
for their working-class citizens. Has it done so?
The inequality theme echoes Thomas Piketty, the French
economist who made a big splash a few years ago. But how
true is it when applied to trade? The U.S. and China have
had a symbiotic relationship for decades: We buy their
goods, and they buy our debt. Partly by welcoming foreign
investment and know-how, China became super-productive
and got rich, or at least some Chinese did. It also developed
a sizable middle class. To say that the Chinese took advantage
of the U.S. has a Trumpian tone but doesn’t ring true.
Americans willingly bought Chinese goods and the U.S.
Congress willingly sold them our debt. Despite Chinese com-
petition, America had full employment before the pandemic.
Cheap imports may hold down wages, but wages buy more.
What does ring true is that China is in some trouble.
Authoritarian regimes invariably misallocate resources, and,
as the book details, the Communist Party has excelled at
economic waste. Its state-owned enterprises have run up huge
bank debts, many of which yield no interest and won’t be
repaid. Indeed, the country is swimming in debt. The authors
say that “tightening credit” is needed but add that it could
end up “strangling investment before complementary
reforms have succeeded in lifting household incomes and
boosting domestic consumption.” If wage cuts and unemploy-
ment result, China’s political system “might not survive.”
Messrs. Klein and Pettis offer China some palliatives,
such as allowing collective bargaining and expanding the
social safety net. But although they allude to a key point,
they fail to develop it. The Communist Party and its
hangers-on have presided over an export-centered money
machine that created a wealthy elite resistant to change.
The authors are right in suggesting that the party should
have paid more attention to its own workers and consumers.
But the country’s rigid power structure prevents it from
responding to the needs of its people. Despite some
successful adaptations, the Communist Party still must rely
on police-state tactics to keep itself in power. One doubts
whether redistribution is in the cards.
As for the U.S. and other Western democracies—
Germany gets a great deal of attention in “Trade Wars
Are Class Wars”—the authors’ arguments are even less
convincing. These countries are advanced welfare states
and already practice massive income redistribution. Low
barriers and the relative absence of trade wars have
characterized their relationship for years.
Messrs. Klein and Pettis have written a much better
book than their class-warfare themes might imply. It is
worth reading for their insights into the history of trade
and finance despite the frailty of its central thesis.
Mr. Melloan is a former deputy editor of The Wall Street
Journal editorial page. His new book, “Bogus Science,” will
be published by Republic Books in January.
A16 | Wednesday, June 24, 2020 THE WALL STREET JOURNAL.

OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR

Blocking Police Reform Is Now the Time to End Qualified Immunity?

D
emocrats are increasingly confident cer Derek Chauvin used against George Floyd In Pierson v. Ray (1967), the Su- cal confrontation would call into ques-
they’ll gain Senate control in Novem- in Minneapolis. Mr. Scott would condition fed- preme Court applied the common-law tion whether an arresting officer ap-
principle of qualified immunity to ac- plied too much force. Lawyers, doctors
ber, and for evidence watch how they eral grants to jurisdictions that restrict choke-
tions under Section 1983. In “Warren and engineers can take their time and
handle Republican Senator holds to when deadly force is Court Enabled Police Abuse” (op-ed, reason things out when they make de-
Tim Scott’s police reform bill Democrats may prevent authorized. Democrats want June 18), David B. Rivkin Jr. and An- cisions. They are not faced with life
this week. Democrats are sig- the Scott bill from a to make them a federal civil- drew M. Grossman call for “ending the and death decisions that must be made
naling they’ll block the bill rights violation. failed experiment of qualified immu- in the heat of the moment.
even from moving to the floor debate or amendment. Many jurisdictions such as nity altogether.” RICK MILLER
for debate, much less votes on New York, Dallas and Minne- The states can end the “failed exper- Wallingford, Pa.
amendments. apolis have banned choke- iment” without waiting for Congress to
This is cynicism squared, and it can only holds, but restraining men who are resisting act. Anything that violates Section As Messrs. Rivkin and Grossman
mean that Democrats feel they’ll pay no politi- arrests can be dangerous and difficult. A fed- 1983 likely violates state law as well. point out, Section 1983 civil-rights ac-
cal price for obstruction. Wide majorities of eral ban seems excessive. The “common law principle” may apply tions against police (and other public
to Section 1983, but the states are in officials) are for money damages. But
Americans in both parties want something Many cities also forbid “no-knock” search
control of their common law. They can who pays if there’s liability? Probably
done, but Democrats may be betting the media warrants that let police enter a dwelling with- change it by statute or by judicial deci-not the cop. The city that employed the
will blame defeat on President Trump and por- out announcement. No-knock warrants in sion. Every lawyer knows that, ever cop is usually also a defendant. The
tray the GOP as unreasonable. They may be drug raids are intended to prevent suspects since Erie Railroad Co. v. Tompkins city is normally liable for a cop’s mis-
right, but that’s unfair to the Scott bill that is from hiding evidence or arming themselves (1938), state courts and legislatures, conduct—respondeat superior. And the
a good-faith effort to nudge local police de- before police searches. Since there’s little and not the Supreme Court, have the city may well have agreed to indemnify
partments toward better practices. data on how often they are used or to what last word on the meaning of state law. the cop. The plaintiff’s attorney, proba-
Policing is a classic state and local power un- effect, it’s hard to know whether uninten- S. PAUL POSNERbly with a contingent fee agreement,
der the Constitution, so the federal role is lim- tional harm to civilians outweighs their pub- New York looks to the deep pocket—the city
ited to using money to leverage change. The feds lic-safety benefits. (which may be insured; insurance isn’t
Messrs. Rivkin and Grossman miss a free). Ultimately, it’s usually the city’s
contribute a small share of police budgets—a Mr. Scott’s bill would require states and cit-
major discrepancy when comparing taxpayers, not the cop, who pays. Thus,
mere 6% in New York City—but the money can ies to report data on their use to the Attorney police work to other professionals who by providing qualified immunity to the
matter if it’s tied to desirable policy. General. The AG would publish a public report are denied qualified immunity (medical cop, qualified immunity provides pro-
i i i on their use so states and cities can decide for professionals are granted qualified im- tection to the taxpayers. Qualified im-
The Scott bill sensibly stresses data collec- themselves whether and when they should be munity under Good Samaritan stat- munity isn’t a defense in a criminal
tion, which shouldn’t be controversial. His bill used. Democrats want to ban them. utes). No other civilian profession re- proceeding against the cop.
would require state and local governments to Democrats also believe that police brutality quires the frequent exertion of physical RICHARD T. FRANCH
report each year to the FBI’s National Use-of- against blacks is caused by systemic racism, force to achieve its goals. Every physi- Biltmore Lake, N.C.
Force Data Collection on police interactions though most evidence indicates that officers
that cause death or serious injury. Some police use excessive force due to panic or poor train-
departments already report this information, ing. Mr. Scott’s bill directs the Justice Depart-
but more data from more agencies could in- ment to develop a program to train officers in U.S. Should Return to the Iran Nuclear Deal
form training. how to de-escalate confrontations and respond Concerning your editorial “Iran’s pressure policy is nothing more than
Democrats want to go much further and re- to suspects with mental illnesses. Pre-Deal Deceptions” (June 10): The keeping the illegal sanctions in place
quire law-enforcement agencies to report traf- i i i JCPOA, or Iran nuclear deal, ad- with the aim of putting pressure on
fic stops and pat-downs by the race and ethnic- There are other differences, many of them dressed every concern regarding any the Iranian people.
ity of both the officers and civilians involved. worth debating. But that’s the point—debate peaceful nuclear work conducted by This policy has certainly affected
Their goal is to use a paint-by-colors “dispa- them. A Democratic filibuster would prevent the Iran. After two years of intensive ne- our economy and prevented—
rate impact” analysis to show “patterns and Scott bill from getting to the floor where Sena- gotiations all parties were satisfied through its bullying tactics and ille-
practices” of policing. This will make it easier tors could offer amendments and the Senate that all issues, including the possible gal extraterritorial sanctions—other
for the Justice Department to sue local police could work its will for a change. The GOP seems military dimensions (PMD) file which countries from conducting normal
departments under the 1994 Violent Crime united behind Mr. Scott’s bill so it would prevail was closed by IAEA in 2015, were ad- trade with Iran, but Iran is most as-
dressed. Your implication that they suredly not on its knees, is not beg-
Control and Law Enforcement Act. most of the time. But the House is also moving
were not is fallacious, and presum- ging for renewed negotiations and
Attorney General Eric Holder used this law a more command-and-control bill that Senate ably not endorsed by those countries will not ever negotiate its entirely
to obtain court-imposed consent decrees that Democrats favor, and differences could be that not only signed on to the deal, defensive missile program or its le-
federalized law enforcement in the likes of Bal- worked out in House-Senate conference. but continue to remain participants. gitimate regional national interests.
timore, Newark, Cleveland and Ferguson, Mo. Most of the hard work of police reform has To suggest that the U.S. should ALIREZA MIRYOUSEFI
Yet there’s little evidence that federal control to be done by states and cities, especially re- keep its so-called “new leverage built Mission of the Islamic Republic of
has reduced racial tension or improved polic- forming collective bargaining that makes it by maximum pressure” is inhumane Iran to the U.N.
ing in the 20 or so cities under consent decrees hard to dismiss bad cops. And that requires and unjust because the maximum New York
since the early 1990s. Democrats to take on police unions, one of
Harvard economist Roland Fryer has also their main political constituencies.
found that crime rises in cities where the feds No one should think federal reform will end Views on Free Speech, NBC and the Federalist
investigate in this fashion after a viral episode police abuses, but Mr. Scott’s bill goes a long Regarding Ben Domenech and Sean it seem weak-minded totalitarians,
of alleged police misconduct. The Scott bill’s way toward meeting Democratic priorities. It Davis’s “NBC Tries to Cancel a Conser- busy “deplatforming,” “demonetizing”
data will do more good. ought to be the basis for compromise—that is, vative Website” (op-ed, June 18): The and, ultimately, destabilizing.
Mr. Scott also wants to deter bad police unless Democrats think they can kill it, blame campaign Stop Funding Fake News TERESA R. MANNING
practices while leaving ultimate discretion to Republicans in the process, and ride the issue helps brands remove their adverts from National Association of Scholars
local officials. Take chokeholds of the kind offi- to November and control of all of Washington. websites that publish harmful misinfor- New York
mation and bigotry across the political
spectrum. Last year a British left-wing Messrs. Domenech and Davis claim:
News From the Non-Lockdown States website, rife with anti-Semitism, which
had suffered a collapse in advertising
“NBC News attempted this week to
use the power of Google to cancel our

G
OP governors have faced enormous me-
dia pressure to lock down their states in
solidarity with Democrats, and some now
are getting browbeaten to shut down again amid
coronavirus flare-ups. So it’s worth pointing out
that states that didn’t lock down this spring kept
the virus under control and experienced fewer
deaths than most that did.
A new analysis by The Sentinel, a Kansas
nonprofit, compares the 42 states that shut
down most of their economies with the eight
that did not. The latter group includes mostly
rural states with some small metropolitan ar-
eas: North and South Dakota, Nebraska, Iowa,
Arkansas, Oklahoma, Wyoming and Utah. Pri-
vate employment on average fell by 7.8% be-
tween May 2019 and May 2020 in these states
while plunging 13.2% in the others.
Rural state economies generally rely more on
“essential” services like agriculture and food
production, and some industries like energy
and hospitality would have shed jobs regardless
of the lockdowns. Still, private job losses were
higher in states that locked down like Colorado
Mayhem in Seattle’s No-Cop Zone
(9.5%) compared to economically similar ones
that didn’t like Utah (4.6%).
Yet per-capita Covid fatalities in states that
stayed open were on average about 75% lower
than those that locked down. One reason is that
deaths in most states, regardless of whether they
locked down, have been concentrated in nursing
home facilities and minority communities that
have higher rates of underlying health conditions
and multigenerational housing.
This is a main reason hospitalizations and
deaths continued to surge in states like New
York, New Jersey, Illinois and Massachusetts
long after lockdowns took effect. About half of
deaths in New Jersey and Illinois have been in
nursing homes, and most others have been in
dense low-income minority neighborhoods
where social distancing is difficult.
Deploying more tests and protective equip-
ment can help shield these vulnerable commu-
nities, and citizens can do their part by donning
face masks in public indoor locations like super-
markets. But governors don’t need to intubate
their economies to save lives.
revenue, said we took action because
we were “political Zionists.”
The authors characterize our cam-
paigning as attacks on “free speech it-
self,” eliding the constitutional rights
of all Americans with decisions taken
freely by companies in a free market.
Everyone has the right to freedom of
speech, but there is no constitutional
or even moral right to be paid for that
speech. Advertisers have the right to
choose that their brands aren’t associ-
ated with intolerance or bigotry; the
alternative would be to force them to
do so—a clear nonsense.
Google’s advertising system places
adverts across the internet using “pro-
grammatic” algorithms, meaning
brands have no way of knowing where
their ads appear. This is how, in ex-
treme cases, household brands end up
inadvertently funding terrorist con-
tent or claims that dating underage
girls, as the Federalist published, “is
not without some merit.” We correct
this information asymmetry by in-
forming brands when their adverts ap-
pear on content that contradicts their
values; in this instance, their stated
solidarity with Black Lives Matter.
publication, the Federalist. The effort
failed, but it should serve as a warn-
ing about the unchecked power of big
tech companies.”
That the effort failed disproves the
assertion that big-tech’s power is “un-
checked.” Even those of us who often
disagree vehemently with the content
and editorial decisions of private com-
panies should be alarmed by hints,
such as appear in the authors’ essay,
that the same government that we
rightly fear to exercise the power to
directly censor peaceful expression
should exercise the power to punish
private companies for their decisions
about peaceful expression.
PROF. DONALD J. BOUDREAUX
George Mason University
Fairfax, Va.
Don’t Declare Covid Victory
Yet in Early Opening States
Your editorial “Lockdown States
and the Jobless” (June 22) states:
“Job gains are much greater in states
that have reopened faster.” Well, if a
state is reopening quickly, the busi-

A
narchy might seem like harmless fun—
until somebody gets shot. On June 11, Se-
attle Mayor Jenny Durkan addressed the
police-free “autonomous zone” declared in sev-
eral city blocks by protesters and hangers-on.
She characterized the neighborhood scene as
“food trucks, spaghetti potlucks, teach-ins, mov-
ies, free granola bars.”
Asked the same day on CNN how long this all
might last, Ms. Durkan said: “I don’t know. We
could have the summer of love.” Not two weeks
later, here’s what has happened in or near what
occupiers call the Capitol Hill Organized Protest,
or CHOP:
On June 12, a man carrying a red container
ignited a wall and sidewalk outside the police’s
vacated East Precinct.
On June 15 an auto-shop was allegedly broken
into and a fire set inside. The intruder “tried to
cut me with a box cutter,” the owner’s son told
KIRO. He said he pinned the perpetrator down,
and his dad repeatedly called 911, but nobody
came. Onlookers demanded the man’s release,
and the owner complied. “It was either that,” he
said, or “it was going to turn into mayhem be-
yond mayhem.”
Later that day, police Chief Carmen Best said
officers “will respond” to incidents in the CHOP
that threaten life and safety. Other than that,
“dispatchers and officers will try to coordinate
contact with the victim or caller outside of the
CHOP boundaries.” Regarding the auto-shop, she
said police “observed the location from a dis-
tance” but “did not see a disturbance.”
On June 20 at about 2:30 a.m., shots were
fired. The city said that when police arrived they
“were met by a violent crowd that prevented of-
ficers safe access.” The body-camera footage
here is worth watching. The city said two injured
men were taken to the hospital “by CHOP ‘med-
ics.’” One of the men, a black 19-year-old who
graduated high school a day before, died.
On June 21 at about 10 p.m., shots were re-
ported. A 17-year-old, wounded in the arm, was
driven to the hospital in a private car. The city
said he “declined to speak with detectives.”
At a June 22 news conference, Chief Best said
she had a police report of a rape in the CHOP.
“It’s time for people to go home,” Mayor Durkan
said. The city will ask protesters to leave the
CHOP at night. Police will return to the East Pre-
cinct “peacefully and in the near future,” though
no specific time was given. “There should be no
place in Seattle,” the Mayor said, “that the Seat-
tle Fire Department and the Seattle Police De-
partment can’t go.” You think?
On June 23 at about 5 a.m., a man in his 30s was
shot in the calf. Police and medics met him outside
the CHOP and took him to the hospital. But the vic-
tim, the city said, “refused to provide any informa-
tion about the circumstances surrounding the
shooting or a suspect description to officers.”
This experiment in chaos shows: No police?
Then no justice, and certainly no peace.
Those who truly value the free mar- nesses that are reopening will rehire
ket must be the first to correct for its more workers. But this may be a
failures—that is the true way to honor short-term phenomenon if those
the values of freedom held so dear by same states continue to experience
readers, and so cynically spoken of. increases in Covid-19 cases. If cases
IMRAN AHMED continue to go up, it’s very possible
CEO, Center for Countering Digital Hate that many customers will decide to
London stay at home, with or without the re-
imposition of restrictions. Let’s see
Hard to believe it needs to be said, how this plays out before declaring
but top-down corporate censorship victory for the fast-reopening states.
(“demonetization”) not only doesn’t STEPHEN JENKS
remove “hate” from hearts or stop Carrboro, N.C.
certain ideas, it drives all this under-
ground where it grows.
Why not refute ideas you don’t Pepper ...
like? Maybe squelching them means
you can’t. Present efforts to suppress
And Salt
speech and thought by Google, Twit- THE WALL STREET JOURNAL
ter and YouTube bring up an issue
similar to one raised by President
Kennedy: If you make free expression
impossible, do you make violent ex-
pression inevitable? Followed by more
suppression? One wonders if this cy-
cle is the real goal.
As the American Founders knew,
free speech is the best course to test
ideas and make policy. Those against
Letters intended for publication
should be emailed to wsj.ltrs@wsj.com.
Please include your city, state and
telephone number. All letters are sub-
ject to editing, and unpublished letters “I’m a bit disappointed. Tastes fine,
cannot be acknowledged.
but not very photogenic.”
THE WALL STREET JOURNAL.
Don’t Buy the ‘Annexation’ Hype
By Eugene Kontorovich
I
srael is expected to announce
as early as next week that it is
normalizing the legal status of
Jewish settlements in the
West Bank by fully applying
Israeli civilian law. The U.S. is ex-
pected to recognize Israeli sover-
eignty in these areas, marking the
culmination of a series of pro-Israel
Trump administration policies, as
well as the first step in its vision for
a negotiated process that could lead
to a Palestinian state.
There are many misunderstand-
ings about the planned move—start-
ing with what to call it. It is widely
described as an Israeli “annexation”
of West Bank territory, also known
as Judea and Samaria. But annexa-
tion has a precise meaning in inter-
national law: the forcible incorpora-
tion by one state of the territory of
another state. The land to which Is-
rael seeks to apply its laws isn’t le-
gally the territory of any other state,
nor has it been since Israel’s inde-
pendence in 1948. Neither the U.S.
Applying Israeli civilian law
to West Bank settlements
wouldn’t preclude peace or
violate Palestinian rights.
nor the European Union recognizes
the existence of a Palestinian state,
and Israel’s sovereign claim to the
territory is superior to any other
country’s. Putting this move in the
same category as Russia’s seizure of
Crimea is entirely misleading.
There is no one-word name for
what Israel plans to do because it is
so technical and pedestrian. Israel
already governs the territory in
question, as it has since 1967, when
it liberated the land from a two-de-
cade Jordanian occupation. But at
that time Israel didn’t fully apply its
domestic laws there, leaving it under
military administration. Israel ex-
pected the Arab states to sue for
peace after the Six-Day War, and it
No, Police Racism Isn’t an Epidemic
So far, we haven’t
seen a shred of evi-
dence that George
Floyd’s death in po-
lice custody last
month was racially
motivated. But for
UPWARD
MOBILITY those looking to ex-
ploit the incident,
By Jason L.
that doesn’t seem to
Riley
matter.
The violence in
the streets, and the liberal commen-
tary that toggles between justifica-
tion and cheerleading, is fueled by as-
sumptions that racial discrimination
in policing is widespread, that low-in-
come minority communities are over-
patrolled, and that black men are tar-
geted for their skin color rather than
for their behavior. There’s no denying
that there was a time—in the living
memory of many Americans—when
this was true. The question is how
true it remains.
Activists and politicians with
their own agendas have taken the
Floyd episode and similar incidents
and shoehorned them into a pre-ex-
isting narrative about race and po-
licing, but the reality is more com-
plex. Race relations and violent
crime rates among blacks have
ebbed and flowed over the decades,
and policing has reflected these
changes. In the first half of the 20th
century, when black poverty was sig-
nificantly higher than it is today, and
it was not uncommon for police offi-
cers in the Deep South to belong to
the Ku Klux Klan, black crime rates
and incarceration rates were signifi-
cantly lower than what they would
become in later decades.
The criminologist Barry Latzer
has noted that the homicide rate for
black men fell by 18% in the 1940s
and another 22% in the 1950s. It’s
probably not a coincidence that
black poverty declined by 40 per-
centage points over the same period,
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Israeli soldiers stand guard near Hebron, June 14.
was prepared to transfer some of the
land to them. There was no point in
hurriedly applying Israeli law to ter-
ritory that might not remain Israeli
after a peace settlement.
The current system of governance
was intended to be temporary, but
Israel retained it during decades of
negotiations, all of which resulted in
Palestinian rejection of internation-
ally backed offers of statehood. In
the Middle East, nothing is as per-
manent as the temporary.
Over the past 53 years, Jews have
returned to Judea and Samaria, ter-
ritories from which they had been,
to a man, ethnically cleansed by the
Jordanians in 1949. Today, more
than 400,000 Israelis live in West
Bank settlements, still governed by
an odd patchwork of military regula-
tions. As a result, property is gov-
erned by obscure Ottoman land law.
Permitting for infrastructure proj-
ects is difficult and burdensome.
Most Israeli environmental regula-
tions don’t apply. After five decades
of Palestinian rejectionism, it is hard
to argue that the legal regulation of
these communities must remain in
limbo until a far-off peace deal is
signed.
This doesn’t mean giving up on
the possibility of a diplomatic settle-
ment. Past peace efforts have been
based on the morally repugnant and
impractical assumption that the cre-
and black incomes grew at faster
rates that white incomes. Safer
neighborhoods help facilitate up-
ward economic mobility, which is
something that the “defund the po-
lice” crowd might keep in mind.
In the second half of the 20th
century, these trends reversed. In
the 1960s, violent crime rates dou-
bled, and they continued to increase
sharply until the early 1990s, when
The data don’t show racial
bias in police use of deadly
force. A few viral videos
don’t prove otherwise.
better policing and more incarcera-
tion helped bring crime under con-
trol. In his 2007 book, “The Great
American Crime Decline,” Franklin
Zimring describes violent crime as a
“regressive tax whereby the poor
pay much more” and observes that
“because both victims and offenders
are concentrated among the same
disadvantaged populations, a major
crime decline might produce a dou-
ble benefit—fewer victims as well as
fewer offenders arrested and pun-
ished for serious crimes.” Between
1990 and 2016 the overall homicide
rate fell by 34%, and among black
men it fell by 40%. Had the black ho-
micide rate remained at 1990 levels
through that period, tens of thou-
sands of black men wouldn’t be alive
today.
In response to the racial hysteria
over Floyd’s death, the Democratic
House and Republican Senate are
hashing out a “policing reform” bill
for the president to sign. This is be-
ing done out of political expediency,
not necessity. There is no epidemic
of black suspects dying in police cus-
tody, and a few viral videos don’t
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OPINION
recognition of Jerusalem and the Go-
lan Heights, and they proved entirely
hollow. Critics must explain why this
one should be any different.
Others say Israel should desist be-
cause its actions would provoke a
possible Biden administration. This
is heads-I-win-tails-you-lose logic:
Israel must accept Democratic poli-
HAZEM BADER/AFP VIA GETTY IMAGES
cies when Democrats are in office
and also when they aren’t. President
Obama, by contrast, had no problem
allowing the United Nations Security
Council to pass an anti-Israel resolu-
tion even after President-elect
Trump asked him to veto it.
U.S. recognition of Israeli sover-
eignty in parts of the West Bank
comes along with upfront Israeli
commitments. Israel has agreed to a
temporary building freeze in areas of
ation of a Palestinian state must be the West Bank that are under Israel’s
preceded by the expulsion of all jurisdiction but where Israeli law
Jews from its territory. The accep- isn’t being extended. This goes be-
tance of an ethnic pre-cleansing was yond what the Trump administra-
one of the reasons the U.S. had pre- tion’s Vision for Peace requires. Is-
viously opposed the application of rael also knows that a future U.S.
Israeli civil law: to make life harder administration could repudiate sup-
and more uncertain for Jewish set- port for Israeli sovereignty and rec-
tlers and thereby encourage them to ognize a Palestinian state anyway.
leave. President Trump’s peace vi- Israel’s friends are right to take
sion rightly rejects this illiberal no- such concerns seriously: The plan
tion, which hasn’t been the basis of isn’t without risks for Israel. But
realized or proposed peace deals these can be addressed through a
anywhere else in the world, from formal memorandum of understand-
East Timor to Northern Cyprus. ing that would commit the U.S. to
The application of Israeli law recognizing Israeli sovereignty and
wouldn’t affect the treatment of Pal- not recognizing a Palestinian state
estinians. In the West Bank, they until the detailed Palestinian prereq-
would continue to be governed by uisites in the Vision for Peace have
the Palestinian Authority. Israel’s been met to America’s and Israel’s
Knesset wouldn’t rule over them. satisfaction. Such an agreement be-
The Palestinian Authority would also tween the U.S. and Israel could be
still have a chance to make peace. written to limit backsliding by the
While all evidence suggests the au- next U.S. administration.
thority isn’t fundamentally serious The application of Israeli civil law
about statehood, U.S. recognition of to Jewish settlements isn’t an annex-
Israeli sovereignty in parts of the ation or an imposition on Palestin-
West Bank may help bring it to the ians. It is a long overdue recognition
table. It would show Palestinian of Israel’s legal and moral rights, a
leaders that turning down negotia- step that can no longer be deferred
tions weakens their hand. by the Palestinian refusal to make
Some Middle East experts say the peace.
Israeli move could lead to violence,
European sanctions or a reversal of Mr. Kontorovich is director of the
Israel’s warming ties with Arab Center for the Middle East and In-
states. But the same predictions of ternational Law at George Mason
doom were made before Mr. Trump’s University Scalia Law School.
prove otherwise. Yes, cops some- about crime in their neighborhoods.”
times abuse their authority, and fir- Fifty-nine percent of both blacks and
ing bad ones can be much too diffi- Hispanics said that “they would like
cult. But states and localities can the police to spend more time in
address those issues more effectively their area than they currently do,
than a one-size-fits-all fix from making them more likely than white
Washington. Moreover, Republicans residents (50%) to respond this
should be wary of allowing liberal way.”
activists to speak for the public. Democrats and Republicans seem
We’ve known for years that groups to agree that more-uniform data col-
like Black Lives Matter are out of lection among police agencies would
step with most blacks, let alone most be a good thing. They’re right, but
of the country. it’s no guarantee that the media will
In a 2015 Gallup poll taken after report the additional data or put it
Michael Brown was killed in Fergu- in context. We have plenty of data
son, Mo., a majority of black respon- right now. Police shootings have
dents said police treat them fairly, fallen precipitously since the 1970s.
and far more blacks (38%) than Upward of 95% of black homicides in
whites (18%) said they “want a the U.S. don’t involve law enforce-
greater police presence in their local ment. Empirical studies have found
communities.” Another Gallup sur- no racial bias in police use of deadly
vey, published last year, asked black force, and that the racial disparities
and Hispanic residents of low-in- that do exist stem from racial differ-
come neighborhoods about policing ences in criminal behavior. The
and found that these groups “aren’t problem isn’t a shortage of data but
averse to law enforcement—in fact, a race-based narrative that is im-
they are particularly concerned mune to any data that challenge it.
Notable & Quotable: Grant
From “U.S. Grant and the Colored United States, and this doubtless by
People,” an 1872 campaign pamphlet the President’s special direction. It is
by Frederick Douglass. Last Friday a further obvious that color had noth-
mob tore down a statue of President ing to do with the omission, because
Grant in San Francisco: other gentlemen accompanying the
expedition to Santo Domingo equally
There are many dissemblers and with myself, though white, failed to
falsifiers of the Greeley party in the receive an invitation to dine at the
South who are seeking the control of White House. . . . My second answer
the colored voters, by declaring to is that my devotion to General Grant
them that President Grant is not, and rests upon high and broad public
never has been, a faithful and sincere grounds, and not upon personal favor.
friend of my race. . . . President I see in him the vigilant, firm, impar-
Grant’s course, from the time he drew tial, and wise protector of my race
the sword in defense of the old Union from all the malign, reactionary, so-
in the Valley of the Mississippi till he cial, and political elements that
sheathed it at Appomattox, and thence would whelm them in destruction. He
to this day in his reconstruction policy is the rock-bound coast against the
and his war upon the Ku-Klux, is with- angry and gnawing waves of a storm-
out a deed or word to justify such an tossed ocean saying, thus far only
accusation. . . . shalt thou come.
I have often been called upon to Wherever else there may be room
reconcile my exalted opinion of Presi- for doubt and uncertainty, there is
dent Grant with the fact that I failed nothing of the kind with Ulysses S.
to be invited with the Commissioners Grant as our candidate. In the midst
of Inquiry to Santo Domingo to dine of political changes he is now as
with the President at the White ever—unswerving and inflexible.
House. I have two answers to those Nominated regularly by the time hon-
who inquire of me on this point. First. ored Republican party, he is clothed
The failure of the President to invite with all the sublime triumphs of hu-
me could not have been because my manity which make its record. That
personal presence on account of color party stands to-day free from alloy,
would have been disagreeable to him, pure and simple. There is either am-
for he never withheld any social cour- biguity in its platform nor incongru-
tesy to General Tate, the Minister ity in its candidates. U.S. Grant and
Plenipotentiary from the Republic of Henry Wilson . . .—the soldier and
Hayti, a man of my own complexion. the Senator—are men in whom we
. . . It is, besides, impossible that can confide. No two names can better
color is the explanation of the omis- embody the precious and priceless
sion to invite me, because the gentle- results of the suppression of rebellion
men whom he did invite had dined and the abolition of slavery. We can
with me daily during ten weeks on an no more array ourselves against
American ship, under an American these candidates and this party than
flag, and in presence of representa- we can resume our chains or insult
tives of the leading presses of the our mothers.
Wednesday, June 24, 2020 | A17
Retirees’
Security
Trumps Other
Social Goals
By Eugene Scalia
T
he Labor Department proposed
a rule Tuesday that will govern
how the $10.7 trillion invested
in private pension plans should be
managed in light of the push to con-
sider the environment, social factors
and corporate governance, or ESG,
when making investment decisions.
According to Morningstar, from
2018-19 flows into “sustainable”
funds increased nearly fourfold, and
the number of conventional funds
claiming to consider ESG factors rose
to 564 from 81. More than 3,100 in-
stitutional investors and businesses
that provide investor services have
signed the United Nations Principles
for Responsible Investment.
A new Labor Department
rule reinforces pension
funds’ fiduciary duties.
Many investors understandably
want to do good while also doing
well. But the standards for ESG in-
vesting are often unclear and some-
times contradictory. Researchers at
the Massachusetts Institute of Tech-
nology’s Sloan School of Management
analyzed the methods of six different
ESG rating providers and found that
their approaches—and results—di-
verged significantly. In a comparison
of two providers’ rating systems, Re-
search Affiliates found a wide gap in
the same companies’ scores. Face-
book received a top environmental
score from one provider and below-
average from the other.
Other studies show that when in-
vestments are made to further a par-
ticular environmental or social cause,
returns unsurprisingly suffer. Many
managers likely find it challenging to
keep their fees low while verifying
that an investment offers the ESG
benefits its proponents claim. The
Securities and Exchange Commission
recently solicited public comment on
the appropriate treatment of funds
that use terms such as “ESG” in their
names, and whether these terms are
likely to mislead investors.
ESG investing poses particular
concerns under the Employee Retire-
ment Income Security Act, or Erisa,
the federal law governing private re-
tirement plans. At the heart of Erisa
is the requirement that plan fiducia-
ries act with an “eye single” to fund-
ing the retirements of plan partici-
pants and beneficiaries. This means
investment decisions must be based
solely on whether they enhance re-
tirement savings, regardless of the fi-
duciary’s personal preferences.
The department’s proposed rule
reminds plan providers that it is un-
lawful to sacrifice returns, or accept
additional risk, through investments
intended to promote a social or polit-
ical end. Sometimes, ESG factors will
bear on an investment’s value. To
give an obvious example, if a factory
is leaching toxic chemicals into
groundwater, lawsuits and regulatory
action are likely to follow, sapping
profits. A corporation with dysfunc-
tional management will also typically
be a poor investment.
But ESG factors often are touted
for reasons that are nonpecuniary—
to address social welfare more
broadly, rather than maximize re-
turns. One prominent firm’s manager
has said that its funds may choose in-
vestments that offer a below-market
rate of return but further the firm’s
goal of having a “positive effect on
corporate behavior and to promote
environmental and social progress.”
That trade-off may appeal to some
investors, but it is not appropriate
for an Erisa fiduciary managing other
people’s retirement funds.
What if two potential investments
are economically indistinguishable—
can nonpecuniary ESG factors be
used as a “tiebreaker”? While we are
skeptical that such “ties” often occur,
the proposed rule would permit con-
sideration of nonpecuniary factors to
break a tie, so long as the fiduciary
examines the ESG claims carefully
and documents the basis for its con-
clusion. The proposal would also al-
low a 401(k) plan to include an ESG
fund among its investment options,
provided it is selected through ap-
propriate diligence based on pecuni-
ary considerations and participants
aren’t enrolled in it by default.
ESG investing often marches un-
der the same banner as “stakeholder
capitalism,” which maintains that
corporations owe obligations to a
range of constituencies, not only
their shareholders. Erisa requires
something different of retirement
plans, however: A fiduciary’s duty is
to retirees alone, because under Erisa
one “social” goal trumps all others—
retirement security for American
workers.
Mr. Scalia is U.S. labor secretary.
A18 | Wednesday, June 24, 2020 THE WALL STREET JOURNAL.

BUSINESS & FINANCE
© 2020 Dow Jones & Company. All Rights Reserved.
S&P 3131.29 À 0.43%
MARK LENNIHAN/ASSOCIATED PRESS
Customers make returns to Saks Fifth Avenue employees at a sidewalk pickup and return desk in Manhattan earlier this month.
Saks to Reopen New York Flagship
As Luxury Retailers Try to Reboot
BY SUZANNE KAPNER
Saks Fifth Avenue will re-
open its New York flagship
store on Wednesday with ul-
traviolet handrail cleaners on
its escalators, a remote video-
shopping service and a host of
other measures designed to
make customers feel safe amid
the coronavirus pandemic.
Many of the steps, such as
reserving elevators for older
and vulnerable shoppers, go
beyond local government man-
dates, such as requiring shop-
pers to wear masks. Saks, Tif-
fany & Co. and other Fifth
Avenue anchors are reopening
and trying to convince shop-
Wirecard’s Ex-CEO Arrested After Billions Vanish State Sued
Wirecard AG’s recently de-
parted chief executive, Markus
Braun, was arrested by police,
days after the German pay-
ments company revealed a
more than $2 billion hole in
its books. It was a swift turn
of events, but followed years
of German regulators ignoring
red flags about the once-
promising company.
By Patricia
Kowsmann,
Ruth Bender
and Paul J. Davies
Munich city prosecutors said
Mr. Braun turned himself in to
authorities late Monday and
accused him of “inflating Wire-
card AG’s sales volume with
fake income.” Prosecutors said
he was also under suspicion of
making the company look more
attractive to investors and cus-
tomers than it actually was,
and possibly cooperating with
other perpetrators.
He was released on €5 mil-
lion ($5.63 million) bail Tues-
day. Mr. Braun was Wirecard’s
largest shareholder and served
as CEO for nearly two decades
INSIDE
SEMICONDUCTORS
Apple looks for
a competitive edge
by making
its own chips. B4
TECHNOLOGY: AMAZON TO LAUNCH $2 BILLION CLIMATE FUND B4
S&P FIN À 0.42%
* * * **
S&P IT À 0.70%
DJ TRANS À 1.32%
pers to leave the comfort of
their homes to buy luxuries.
Tourists, who have long
provided fuel for the high-end
shopping corridor, will be
scarce. Some brands, including
Valentino SpA, are fleeing
Fifth Avenue, which has
boasted some of the most ex-
pensive retail rents in the
world.
Saks, owned by Hudson’s
Bay Co., put together a task
force to strategize how to re-
open stores almost as soon as
it closed its Fifth Avenue loca-
tion on March 17. As of
Wednesday, all 40 Saks stores
will have reopened.
“To set the tone in creating
until resigning last Friday.
Wirecard began to unravel
last week when its auditors
said that it couldn’t verify the
existence of €1.9 billion ($2.1
billion) meant to be held in
trust accounts on behalf of the
company. The company later
admitted the money was prob-
ably an accounting fiction.
Mr. Braun consistently de-
nied any wrongdoing at the
company, attacking allegations
about its accounting practices
as false and misleading. Mr.
Braun’s lawyers didn’t imme-
diately respond to a request
for comment.
Mr. Braun’s arrest by a city
prosecutor is a black eye for
Germany’s national financial
regulator, known as BaFin.
“In all this, BaFin runs the
danger of looking like a car-
toon and a joke,” said Marc
Liebscher, whose Berlin-based
law firm is representing pri-
vate Wirecard investors.
The head of BaFin offered a
mea culpa on Monday.
“I completely accept the
criticism that all of us includ-
ing BaFin have to review a
couple of strategies and mea-
ROBIN RAYNE/ZUMA PRESS
PROPERTY REPORT
Simon sees
buying tenants
as a way
to boost its malls. B6
THE WALL STREET JOURNAL.
WSJ $ IDX g 0.34%
a safe and healthy environ-
ment for our customers, we
knew we would have to exceed
the minimum requirements,”
Saks President Marc Metrick
said in an interview. “Feeling
safe is as important to luxury
as it ever will be.”
Every customer entering
Tiffany when its Manhattan
store reopens on Wednesday
will be paired with a sales as-
sociate who will escort them
around the store in an effort
to maintain social-distancing
rules, according to a spokes-
man. Staff will sanitize the
jewelry after each use.
Tiffany, which is in the pro-
cess of being acquired by
The company’s ex-CEO Markus Braun, seen last year, was accused by
Munich city prosecutors of inflating sales volume with fake income.
sures, which we have taken or
have not taken, once we sort
out the immediate crisis,”
BaFin President Felix Hufeld
told a conference in Frankfurt.
Critics, including investors
and politicians, say the scan-
dal has exposed weaknesses at
Germany’s lead financial
watchdog, ranging from a lack
New Employment Visa Curbs
Draw Fire From Silicon Valley
BY ASA FITCH
AND AARON TILLEY
Silicon Valley executives
criticized President Trump’s or-
der suspending new immigra-
tion on several employment-
based visas programs, warning
it could damage the U.S. tech
industry’s competitiveness and
jeopardize domestic job cre-
ation.
The temporary ban, an-
nounced Monday, includes the
H-1B type of visa for high-
skilled workers many tech com-
LIBOR 3M 0.297
LVMH Moët Hennessy Louis
Vuitton SA, swung to a loss of
$64.6 million in the three
months to April 30, a period
when most of its stores were
closed due to the coronavirus.
Sales fell by nearly half to
$556 million.
Bergdorf Goodman will
start allowing customers to
enter its Fifth Avenue store on
Wednesday through private
appointments. For shoppers
who can’t be pulled away from
their beachside retreats, Berg-
dorf Goodman started offering
free delivery to the Hamptons
region last week. Saks is offer-
ing a similar Hamptons deliv-
Please turn to page B2
KRISZTIAN BOCSI/BLOOMBERG NEWS
of staff qualified to oversee
sprawling or complex busi-
nesses to siloed departments
and a culture of passivity.
The episode undermines
Germany’s standing as Frank-
furt competes against Paris and
Amsterdam to become the Eu-
ropean Union’s top financial-
services location after the U.K.’s
panies employ. Apple Inc. Chief
Executive Tim Cook, Tesla Inc.
CEO Elon Musk and Sundar Pi-
chai, CEO of Google parent Al-
phabet Inc., were among the
executives who criticized the
action. Mr. Cook on Tuesday
said on Twitter he was “deeply
disappointed by this proclama-
tion.” Amazon.com Inc. called
the measure shortsighted.
Tech companies are among
the biggest employers of for-
eign workers in the U.S., lean-
ing on the H-1B program to fill
software development, engi-
NIKKEI (Midday) 22576.63 À 0.12%
Wednesday, June 24, 2020 | B1
Judges Slash
Award in J&J
Talc Verdict
Appeals court reduces
damages by over half,
to $2.1 billion; upholds
link to ovarian cancer
BY PETER LOFTUS
A Missouri appeals court on
Tuesday upheld a jury verdict
that Johnson & Johnson’s tal-
cum powder caused ovarian
cancer in 22 women, though
the court reduced by more
than half the $4.69 billion in
damages J&J was ordered to
pay.
The Missouri Court of Ap-
peals reduced total damages
to about $2.1 billion. J&J ear-
lier Tuesday said the new
amount was about $2.2 billion
but subsequently said it was
$2.1 billion.
The 2018 verdict, following
a six-week trial in state court
in St. Louis, was the biggest
award of damages in a series
of trials arising from lawsuits
over the safety of Johnson’s
Baby Powder, as well another
talc-containing powder,
Shower to Shower, that J&J
used to sell.
J&J said the 2018 trial in
St. Louis “was a fundamentally
flawed trial, grounded in a
faulty presentation of the
facts.” The company said it
would pursue further review
of the case by the Supreme
Court of Missouri.
Mark Lanier, an attorney
for the plaintiffs, said the ap-
pellate court’s decision Tues-
day “carefully holds companies
responsible for reprehensible
conduct, while recognizing
limits of jurisdiction and puni-
tive damages.”
departure from the bloc.
In 2016, two investors who
bet on the company’s shares
to fall, issued a report accus-
ing Wirecard of corruption,
corporate fraud and weak
money-laundering controls.
The company denied the alle-
gations at the time.
BaFin didn’t take any steps
to investigate the company’s
numbers.
Instead, last year, after the
Financial Times published a
series of critical articles about
Wirecard’s accounting, BaFin
opened a probe against the
lead reporter. It also took the
uncommon step of banning
short selling against the com-
pany—the only time it had
done so for a single entity.
Short sellers over the years
have written, met with or
tried to meet with regulators
to raise concerns about Wire-
card or the regulator’s actions
related to the company, ac-
cording to several of them.
“You’ve got to believe that
Please turn to page B12
 Wirecard hits a lifeline from
SoftBank, Credit Suisse..... B12
neering and other roles requir-
ing specialized skills that aren’t
always widely available in the
U.S.
Critics of the H-1B program
say it has allowed companies
to avoid hiring American work-
ers in favor of cheaper foreign
labor.
The Trump administration
said Monday’s order would pre-
serve jobs for Americans amid
economic weakness—and soar-
ing unemployment—stemming
from lockdowns designed to
Please turn to page B4
See more at WSJ.com/Markets
More than 19,000 plaintiffs
had talcum-powder lawsuits
pending against J&J in U.S.
courts as of March 29.
Many suits allege that talc-
containing powders caused
ovarian cancer in women who
used it for feminine hygiene
for many years.
Other lawsuits say that in-
halation of the powder caused
a rare cancer called mesothe-
lioma, which affects the lining
of the lungs.
Plaintiffs’ lawyers also have
alleged in some cases that the
talcum powder contained as-
bestos, a naturally occurring
mineral linked to mesothe-
lioma.
J&J says its talc-based
powder is safe, doesn’t contain
asbestos, and didn’t cause can-
cer in people who used it. The
company has won cases in
court, but has lost some hefty
verdicts as well.
In the Missouri case, half of
the 22 women have died from
ovarian cancer, six before the
trial and another five since it
ended, a spokesman for the
plaintiffs’ attorneys said.
J&J had appealed the jury
verdict to the Missouri Court
of Appeals, saying plaintiffs
failed to present substantial
evidence that baby powder
caused their ovarian cancer.
In its decision, the court
wrote that “the evidence,
when viewed in the light most
favorable to the verdict, re-
veals Plaintiffs met their bur-
den to establish causation.”
Talcum-powder verdicts
and negative publicity over
the safety issue have weighed
on J&J’s reputation and stock
price in recent years.
Please turn to page B2
For Bias in
Not Hiring
Black Firm
BY DAWN LIM
A black-owned investment
firm sued New Jersey for al-
leged racial bias on Tuesday,
saying officials told it that the
state’s pension fund was averse
to hiring money-management
firms owned by minorities.
Blueprint Capital Advisors
is one of the few U.S. invest-
ment firms founded by African-
Americans. The Newark firm
said in court documents that
New Jersey’s pension office
“usurped” its ideas and hired
money-management giant
BlackRock Inc. to run Blue-
print’s strategy. Blueprint al-
leges pension staff made efforts
to block it from investing state
money, turned against the firm
after it spoke up about being
treated unfairly and forced it
into “punitive” terms.
It is rare for an asset man-
ager to sue an investor. Blue-
print said it oversees about
$175 million for New Jersey.
The firm also sued BlackRock
and Cliffwater LLC, a firm that
assisted the state pension fund
with investment decisions, al-
leging they profited at Blue-
print’s expense.
“We would like to see people
in C-suites and bureaucracies
held accountable for the things
they do when no one is watch-
ing,” said Jacob Walthour Jr.,
Blueprint’s chief executive, in
an interview.
While Blueprint was trying
to get New Jersey to invest, a
top investment staffer told Mr.
Walthour in 2016 that Blueprint
stood higher chances of getting
state money if references to be-
ing minority-owned were
scrubbed from pension memos,
Please turn to page B12
 B2 | Wednesday, June 24, 2020
INDEX TO BUSINESSES
These indexes cite notable references to most parent companies and businesspeople
in today’s edition. Articles on regional page inserts aren’t cited in these indexes.
A
Abu Dhabi National Oil
B6
Advanced Micro Devices
A8
Alphabet...........A1,A2,B1
Amazon.com
A1,B1,B4,B13
Apple ... A1,A2,B1,B4,B13
Aeropostale.................B6
B Home Depot................B3
BlackRock....................B1
Blackstone Group ....... B7
Blueprint Capital
Advisors....................B1
BNP Paribas..............B12
Brookfield Asset
Management.............B6
Brookfield Property
Partners....................B6
C Tata Consultancy
Capital & Counties
Properties.................B7
Cisco Systems.............B4
Cliffwater....................B1
Coca-Cola...................B14
Credit Mutuel............B12
Credit Suisse.......B8,B12
D-E
Dell Technologies ......A1
Deloitte ....................... B3
DZ Bank.....................B12
Ernst & Young...........B12
Extended Stay America
INDEX TO PEOPLE
A F
Abernathy, Russell.....B7
B Freund, Leigh..............A6
Badley, Andrew...........B2
Baxter, Soozan............B6
Braun, Markus.....B1,B12
D S
Darrow, Kurt...............B8
Dickerman, Ronald......B7
DiSilvestro, Anthony..B7
E Jope, Alan...................B2
Egelanian, Nick...........B6
Euteneuer, Joseph......B7
Award in
J&J Talc
Case Is Cut
Continued from page B1
J&J shares fell 0.4% in trad-
ing on the New York Stock Ex-
change Tuesday.
In May, J&J said it would
stop selling talc-containing
baby powder in the U.S. and
Canada, citing a decline in
customer demand amid the
safety concerns.
RICHARD B. LEVINE/ZUMA PRESS
During the first phase of New York’s reopening earlier in June, customers could opt for curbside pickup.
Saks Ready
To Reopen
Flagship
Continued from page B1
ery service for a $25 fee.
Bergdorf is owned by Nei-
man Marcus Group, which
filed for bankruptcy during
the pandemic.
Mr. Metrick said he isn’t
losing sleep over the possible
demise of Fifth Avenue, where
shops have been boarded up
since the pandemic forced res-
idents to shelter at home.
“Saks made Fifth Avenue a
luxury destination” ever since
it opened its store there in
1924, he said.
He added that Saks could
benefit if others pull out.
“Having brands open their
own stores around us hasn’t
been my favorite thing,” he
said. “So if they want to close
some stores, that’s fine with
me.”
New York City was an epi-
center of the virus, with more
than 17,000 confirmed
Covid-19 deaths as of this
week, but began reopening in
early June as the number of
new cases and deaths
dropped. In recent days, the
city’s health department has
reported fewer than 10 con-
B7
F
Mars............................B2
Mattel..........................B7
Microsoft ............. B4,B13
Facebook...A1,A6,B4,B13
Forever 21...................B6 N-P
G Nike.............................A8
Global Infrastructure Oaktree Capital
Management.............B7
Partners....................B6
Greensill Capital.........B8 Ontario Teachers'
Pension Plan Board..B6
H BY SAABIRA CHAUDHURI
PepsiCo........................B2
Procter & Gamble.......B2
Huaxun Fangzhou........10 Saks Holdings.............B1
Hudson's Bay..............B1 Simon Property GroupB6
I SL Green Realty..........B7
Industrial & Commercial Snam ........................... B6
SoftBank Group...B8,B12
Bank of China.........B14
Infosys.........................B4 Starwood Capital Group
Intel......................B4,B14 B7
T-W
J ideas and imagery.
J.C. Penney..................B6 Target..........................B3
Johnson & Johnson
B1,B2 Services.....................B4
Tesla............................B1
K-L
Tiffany.........................B1
Kroger..........................B3 T-Mobile US................B3
Kweichow Moutai.....B14
Unilever.......................B2
La-Z-Boy......................B8 UnitedHealth Group ... A8
L'Oreal.........................B2 United Natural Foods.B3
Luckin Coffee..............B7 Venntel........................A6
M Walmart......................B3
Mack-Cali Realty.........B7 Wang & Ma Government
Madison International Relations.................A10
Realty........................B7 Wirecard .............. B1,B12
Marathon Petroleum B13 WPP.............................B3
M consumer-goods companies to
Foley, Jane................B13 Main, Andy..................B3
McCombe, Mark........B12
McDonough, Christopher
G B12
Gray, Jonathan............B7 P up momentum with the Black
H Pierce, Sarah...............B4
Hohn, Christopher .... B12
J Schmidt, Susan .......... A8
Seifert, John...............B3
Jilek, David ............... B13 Simon, David...............B6
Simonetti, Katerina..B13
K W
Krpata,, Petr.............B13 Walthour, Jacob Jr. .... B1
The company will continue
to sell a cornstarch-based ver-
sion of Johnson’s Baby Powder
in the U.S. and Canada. And it
will continue to sell both talc-
and cornstarch-based powder
in other countries.
Last year, J&J recalled
about 33,000 bottles of its
baby powder after the U.S.
Food and Drug Administration
said a laboratory test found a
small amount of asbestos in
one bottle.
J&J said it issued the recall
out of an abundance of cau-
tion, and said subsequent test-
ing of the same bottle and lot
by different labs found no as-
bestos.
firmed Covid-19 deaths.
Throughout the country,
people who haven’t lost their
jobs or been furloughed are
sitting on cash reserves as
they curtailed travel and other
expenditures during the lock-
downs. While they have
started spending some of that
money on home-improvement
projects, it is unclear if they
are ready to shop for fashion.
Mr. Metrick said the lack of
tourists will hurt—the Saks
flagship on Fifth Avenue de-
rives about a third of its an-
nual sales from such visitors—
but hopes local shoppers will
pick up some of the slack.
“We’ll have a more captive lo-
cal consumer because they
won’t be traveling as much,”
he said.
Those who are ill at ease
entering a store during peak
times, when it might be harder
to social distance from other
customers, can make an ap-
pointment to visit Saks two
hours before it opens or two
hours after it closes, Mr. Met-
rick said. The store will oper-
ate with reduced hours of 11
a.m. to 7 p.m. Monday through
Saturday and noon to 6 p.m.
on Sunday.
There will be 100 hand-san-
itizer stations throughout the
10-story building. Its 22 esca-
lators will be equipped with
virus-killing, UV handrail
cleaners. And both employees
and customers in the New
York City store will be re-
* *** THE WALL STREET JOURNAL.
BUSINESS & FINANCE
Unilever’s Skin-Lightening Cream
Attracts Louder Social Criticism
cording to Euromonitor, it
holds a 27% share of the skin-
Unilever PLC is facing care category in India, which
fresh backlash against a skin- is Unilever’s second-largest
lightening cream that is one market, behind the U.S.
of its better-selling products, Fair & Lovely became fa-
as scrutiny mounts for brands mous through marketing by
SAJJAD HUSSAIN/AGENCE FRANCE-PRESSE/GETTY IMAGES
that some say feed into racist celebrities and Bollywood
stars, as well as television ads
Fair & Lovely, Unilever’s showing glum, dark-skinned
largest personal-care brand in young women whose pros-
India, has long been a target pects were transformed after
for critics who say it promotes the women used the product
the suggestion that light skin to lighten their skin.
is more attractive than dark. Some of those ads drew ac-
The company has for years de- cusations of racism, and Uni-
fended the brand, which gen- lever in the early 2000s be-
erates more than $560 million gan shifting its marketing to
in annual sales, saying it is a focus less on changing a
safe alternative to dangerous woman’s physical appearance
bleaching products. and more on imbuing her
Now, the owner of Dove with confidence.
soap and Ben & Jerry’s ice Fair & Lovely is Unilever’s largest personal-care brand in India and it Last year, Fair & Lovely
cream is under renewed pres-
sure to stop selling Fair &
generates more than $560 million in annual sales, stopped using longstanding
visuals showing a dark face
Lovely amid a broader rush by Unilever Chief Executive should be made between skin turning light. The spokes-
Officer Alan Jope’s promise— tone and a person’s achieve- woman said the brand has
address marketing, packaging in support of the Black Lives ment, potential or worth,” a shifted communication about
and products perceived as rac- Matter movement—to use the spokeswoman said. “We’re product benefits toward
ist. The movement has picked company’s brands to “break aware that historic advertising “glow, even tone, skin clarity
harmful stereotypes that con- is available on the internet, and radiance.”
Lives Matter protests that tribute to racism” was de- which is not in keeping with As part of its marketing
have been fueled by the killing rided by some social-media the current values of the shift, Fair & Lovely offers ed-
of George Floyd in police cus- users who say Fair & Lovely brand.” ucation scholarships to young
tody in Minneapolis last profits from racism. Unilever also sells another Indian women and has
month, among other events. “Top Chef” host and model skin-lightening cream, under launched a Fair & Lovely
Johnson & Johnson re- Padma Lakshmi was among its Pond’s brand, while branded website that collates
cently said it would stop sell- those who criticized Fair & free online courses in subjects
ing similar skin-lightening Lovely. “For years I’ve been such as English and market-
products under its Clean & saying that Fair & Lovely ing offered by third parties.
Clear and Neutrogena brands. needs to pack their fake cos-
Petitions calling for “The number-one purpose-
PepsiCo Inc. has said it is re- Unilever to stop
tiring the Aunt Jemima brand
of syrups, pancake mixes and
metics and GO!!” she wrote in
a recent Instagram post, say-
ing the brand had harmed her
selling Fair & Lovely
ful brand in our portfolio
world-wide is Fair & Lovely,”
Mr. Jope said at Unilever’s in-
other products, while Mars have gained backers.
Inc. is changing the name of
its Uncle Ben’s rice.
self-esteem.
Unilever is also facing scru-
tiny from its own staff over
vestor day in December, when
questioned about the brand.
While courses listed on the
Several online petitions
calling for Unilever to stop
selling Fair & Lovely have
Fair & Lovely, which is sold
widely in Asia, the Middle East
and Africa, and typically is
Procter & Gamble Co. and
L’Oréal SA are among other
site are free, the effort has
been criticized by some users
for the cost of getting certifi-
gained thousands of backers, available at Indian stores in companies selling popular cates and for overstating the
including one started in early the U.S. and Europe. lightening creams. brand’s role in some of the
June by a former Unilever At recent town-hall meet- Procter & Gamble and success stories recounted on
employee that has more than ings, employees have ques- L’Oréal didn’t respond to re- the Fair & Lovely website.
12,500 signatures. tioned top Unilever executives quests for comment. Unilever declined to com-
“This product has built about why the company sells Unilever launched Fair & ment on specific women
upon, perpetuated and bene- skin-lightening products, ac- Lovely in India in 1975, cater- listed on its scholarship web-
fited from internalized racism cording to a person familiar ing to a South Asian prefer- site. The company said its
and promotes anti-blackness with the matter. ence for light skin that some surveys show more than 80%
sentiments amongst all its “Fair & Lovely upholds researchers link back to the of the site’s users find it use-
consumers,” the petition says. principles that no association region’s colonial legacy. Ac- ful and inspiring.
quired to wear face masks in
accordance with local rules.
Andrew Badley, an infec-
tious-disease physician and
chairman of the Mayo Clinic’s
Covid-19 research task force,
said there is a long history of
using UV light to kill viruses.
Pertaining to escalators, where
the light is contained in a box
and shines on handrails as
they roll by, the question is
whether the duration of expo-
sure is long enough to work,
he said.
“It’s unlikely to be harmful
and it’s possible it could be ef-
fective,” Dr. Badley said.
There won’t be any spa ser-
vices or makeup applications.
Instead, if shoppers want to
get a sense of how a particular
eye-shadow shade will look,
they can ask a store associate
to try it on or test it on a
piece of paper.
Shoppers who don’t feel
comfortable visiting the store
at all can use curbside pick up.
They can also shop from home
virtually. “It’s Zoom shop-
ping,” Mr. Metrick said, ex-
plaining that sales associates
will walk customers through
the store and show products
via video.
Saks’s best customers will
be eligible for a delivery ser-
vice, in which a stylist sends
items to their home and the
shoppers send back what they
don’t want. “These are cus-
tomers who tend to spend a
lot,” Mr. Metrick said.
THE WALL STREET JOURNAL. Wednesday, June 24, 2020 | B3

BUSINESS NEWS

Ogilvy’s
Next CEO
Hails From
Deloitte
BY SAHIL PATEL
Advertising agency Ogilvy
has named a top consulting
executive as its next leader, a
sign of how Madison Avenue is
seeking to reinvent itself to
keep up with the changes the
rise of digital has had on its
business.
Andy Main, the global head
of Deloitte LLP’s creative con-
sulting unit, Deloitte Digital,
has been named global chief
executive officer of Ogilvy,
which is part of WPP PLC. He
will succeed John Seifert, an
Ogilvy veteran who earlier this
year announced plans to step
down.
Staying Open Can Cost Millions
Corporations outline
pandemic’s impact,
from pay increases
to cleaning supplies
BY INTI PACHECO
A food distributor has paid
$20 million for testing and
plexiglass. T-Mobile US Inc.
has spent $50 million on extra
cleaning and safety gear. Wal-
mart Inc. and three other big
retail chains have put more
than $3 billion into higher sal-
aries, benefits and other
Covid-19 measures.
Staying open during the
pandemic wasn’t cheap. Big
companies say they spent any-
where from hundreds of thou-
sands to almost a billion dol-
lars in Covid-19-related costs.
Some say they expect the
costs to keep rising in coming
quarters, even as they face un-

Ogilvy has been a key part
of WPP for many years. The
agency was founded by the
legendary David Ogilvy in 1948
and works on behalf of such
brands as Nestlé SA and Uni-
lever. Still, like many creative
firms, the agency has been
trying to restructure to
streamline its operations to
better cope with demands
from marketers seeking more
efficient ways of working.
“We have a great opportu-
nity to help clients deliver sus-
tainable growth by using
Ogilvy’s creative genius to
transform not only brands, but
entire businesses,” Mr. Main
said.
In the past few years, man-
agement consulting firms in-
cluding Deloitte, Accenture
PLC and PricewaterhouseCoo-
pers LLP have encroached on
ad-agency turf by offering
competing marketing and ad-
vertising services—and luring
advertising talent to work in
those shops.
During his tenure at Del-
oitte Digital, Mr. Main made
acquisitions for multiple cre-
ative agencies and helped
steer the unit to $16 billion in
revenue in 2018, up from $6
billion in 2014.
certain demand from consum-
ers.
The figures include in-
creased pay for front-line
workers, expanded cleaning
and sanitization protocols, and
the purchasing of coronavirus
testing or personal protective
equipment, according to a
Wall Street Journal review of
recent quarterly reports and
earnings-call transcripts.
These are extra expenses and
don’t reflect extra revenue or
lost business. Some essential
retailers that were open as
well as makers of safety gear
had a surge in revenue during
the lockdown.
The disclosures provide an
initial picture of the costs of
doing business during a pan-
demic and resulting restric-
tions. Most companies haven’t
broken out the added ex-
penses. In April, the Securities
and Exchange Commission di-
rected companies to “provide
as much information as is
practicable” about how they
were responding to the pan-
demic.
“We do expect some Covid-
related costs to continue be-
yond the first quarter as we
continue to invest in associate
and customer safety as well as
Plexiglass barriers were installed at Kroger checkouts, among the $830 million in virus expenses the company reported for the quarter.
support heightened digital de-
mand,” said Kroger Co. Chief
Financial Officer Gary Miller-
chip.
A group of U.S. labor unions
and socially responsible inves-
tors sent a June 16 letter to
the SEC calling for increased
disclosures, including the im-
pact on cash flows, policies for
identifying sick employees and
any material changes to execu-
tive compensation.
Here is a sampling of what
companies have revealed.
Many of these examples are
companies with quarters that
ended later than March 31 and
included more of the lock-
down. A clearer picture will
come when more firms report
their results for the current
quarter, beginning next
month.
 $1 billion
Target Corp. said last week
it would keep its starting wage
at $15 an hour, after temporar-
ily raising it in March. The
company said it expects to
spend $1 billion more this year
than last on worker-related
expenses, including wages,
paid leave and safety equip-
ment such as masks.
 $900 million
Walmart spent around
$900 million in its quarter
ended April 30. The company
said this included masks,
gloves and bonuses for em-
ployees, additional cleaning
and expanded sick-leave pay.
Walmart has about 1.5 million
employees in the U.S., and
more than 270,000 have taken
a coronavirus-related leave. In
May, executives said they ex-
pected similar costs in the
second quarter.
 $830 million
Kroger said in a June 18 se-
curities filing it had spent
more than $830 million in the
quarter ended May 23. The
company increased pay, en-
hanced benefits, provided per-
sonal protective equipment
and offered Covid-19 testing to
associates based on symptoms
and medical needs.
 $640 million
Home Depot Inc. spent
$640 million in the quarter
ended May 3 on added em-
ployee benefits, which in-
cluded weekly bonuses and ex-
panded paid time off. Chief
Financial Officer Richard
McPhail said in mid-May much
of that was from paid-leave
expenses that weren’t ex-
pected to recur.
 $117 million
T-Mobile included a $117
million “Covid-19-related
costs” line item in its financial
statement for the quarter
ended March 31. The carrier
said the amount covered an
increase in employee payroll,
third-party commissions and
cleaning enhancements. Chief
Financial Officer Braxton
LUCY NICHOLSON/REUTERS
Carter said the company spent
$50 million just on cleaning
and equipment for employees.
For the second quarter, the
company, which in April ac-
quired Sprint, said it expected
Covid-related costs of $350
million to $450 million.
 $20 million
United Natural Foods Inc.
included Covid-19 testing for
employees as part of its new
expenses. The company said it
increased operating costs by
$20 million and included the
use of partitions for workers
and decals in facilities to
maintain social distancing.
The food distributor, which
had 21,000 employees as of
March, also increased pay. Jill
Sutton, the company’s general
counsel, said the company is
committed to investing in the
safety and risk-management
initiatives that kept its em-
ployees safe during the pan-
demic.

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TECHNOLOGY WSJ.com/Tech

By Making Its Chips, Apple Gains Control

Custom components
reduce costs, boost ‘Insourcing’ Move plier Intel in Portland, Ore.
It is part of the industry’s
performance and cut Ripples Through natural progression in pursuit

risk of product leaks The Chip Industry of greater performance, said

BY TRIPP MICKLE Apple Inc.’s decade-old
push to design its own silicon
Apple Inc. built its gadget chips has roiled the semicon-
empire by outsourcing produc- ductor industry.
tion to a vast ecosystem of Intel stands to lose about
chip makers and other compo- $2 billion in laptop chip sales
nent specialists. Under Chief annually, or 2% to 4% of total
Executive Tim Cook, it is tak- revenue. The shares of other
ing a lot of that business back. chip makers have sunk in re-
The company, which re- cent years as Apple has broad-
leased its first iPhone processor ened the number of chips it
in 2010, said Monday it plans to designs, forcing some suppliers
Carver Mead, an engineering
professor at the California In-
stitute of Technology and for-
mer board member with Audi-
ence Inc., a former Apple
supplier.
But he said the repercus-
sions have been harsh for Ap-
ple suppliers.
Even so, many continue to
supply Apple, which provides
substantial revenue, even as
they fear Apple will start mak-
ing the very components they

ship Macs later this year with
custom chips, a move that ends
a 15-year technology partner-
ship with Intel Corp. Apple said
the custom-designed chips are
more efficient and offer higher-
performance graphics.
The plan fits into Apple’s
broader strategy of replacing
many third-party parts with
components designed in house.
The technology giant’s built-
for-purpose parts now account
for about 42% of the costs of
core iPhone components, ac-
cording to Wayne Lam, a tech-
nology analyst, up from 8%
less than five years ago.
Custom components have
cut costs, boosted perfor-
mance and increased Apple’s
control over future releases.
The new Mac processors will
shave $75 to $150 off the cost
of building a computer, esti-
mate analysts, who say Apple
can pass those savings on to
Apple’s senior VP of hardware technologies, Johny Srouji, during Monday’s developers event.
customers and shareholders.
The strategy springs from
Apple’s philosophy—fostered
by its late co-founder Steve
Jobs—that owning core tech-
nologies provides a competi-
tive edge. Customized chips
and sensors can help its
iPhone, iPads and Macs leap-
frog rivals in battery perfor-
mance and features. It also
can protect Apple from Chi-
nese rivals that buy univer-
sally available parts.
Apple relied on third-party
components for years while it
built the engineering depth
and expertise it needed to de-
sign more components itself,
former employees said. As it
did so, it pushed its suppliers
to incorporate custom features
into the parts they were pro-
viding Apple.
It also needed a reliable
chip foundry to make its chips.
It found such a partner in Tai-
wan Semiconductor Manufac-
turing Co. over the past de-
cade by having the supplier
make its iPhone chips as de-
mand for smartphones soared.
The initiative—called in-
sourcing by some suppliers and
BROOKS KRAFT/APPLE/REUTERS
to sell or exit businesses.
To power its appetite for
more custom chips, suppliers
said Apple has set up offices
and wooed away engineers
from modem provider Qual-
comm Inc. in San Diego as well
as modem and processor sup-
analysts—can give Apple a two- Its success in designing
year jump on competitors in custom chips over the past de-
device performance because cade has cemented Johny
Apple can plan how multiple Srouji, head of hardware tech-
chips work together to limit nologies, as one of the most
power consumption and free up important members of Apple’s
space inside iPhones and iPads executive team. He dictates
for other components, analysts years ahead of time the fea-
said. It also reduces potential tures in Apple’s chips that
leaks of its product plans. power future devices.
Apple’s chip division has Apple has acquired more
mushroomed over the past de- than a half-dozen semiconduc-
cade to thousands of engi- tor companies over the past
neers, including the hundreds decade, including a $1 billion
it brought on by acquiring deal last year for Intel’s mo-
Raycer Graphics in 1999 and dem business.
P.A. Semi in 2008. Inside Apple, the march to-
provide it.
“Everyone knows it could
happen, so it’s a conscious de-
cision: Are you going to do this
dance with the devil or say
no?” Mr. Mead said.
Apple declined to comment.
—Tripp Mickle
ward independence from sup-
pliers has raised concerns.
During discussions to acquire
Intel’s modem business, some
engineers opposed the deal,
arguing that the modem inside
iPhones had to meet wireless
standards and couldn’t be cus-
tomized in a way that bene-
fited its products, people fa-
miliar with the debate said.
Such tensions are natural as
a new strategy emerges, for-
mer employees and analysts
said. They added that the
trade-off is worth it because
of the control Apple gains.

New Work Sarah Pierce, a policy ana-

lyst at the nonpartisan Migra-
tion Policy Institute, said com-
port our country’s critical infra-
structure.”
The administration’s new
Tech and outsourcing companies are among the biggest users of
the H-1B visa program to bring skilled foreign workers to the U.S.
mixed history, agreeing on re-
opening the economy during
the pandemic and disagreeing

Visa Curbs panies could contest the order policy will block about 167,000 Top employers in FY2019 with H-1B visas by... on climate change.
in court on the basis they al- visa holders and their family ...initial approvals* ...continuing approvals† The number of visas allowed
ready invested money on immi- members from coming to the Amazon.com Cognizant a year is capped at 65,000, al-

Draw Fire gration fees and attorneys for

the visa-approval process now
cut short. Most new H-1B visas
U.S. through the end of the
year, in addition to another
158,000 people who get green
Google
3,026

Continued from page B1
contain the new coronavirus.
Microsoft Corp., Google, Ap-
ple, Facebook Inc., Intel Corp.
and Cisco Systems Inc. each
had thousands of H-1B visas ap-
proved last year, according to
government data. Amazon and
its cloud-computing subsidiary
were among the largest recipi-
ents, together winning approval
for more than 8,000 H-1B visas,
which last for three years, in
the 12 months through Sept.
30.
The new visa restrictions are
set to take effect June 24 and
last through the end of the
year. They will keep hundreds
of thousands of immigrants
from coming to the U.S. for a
range of jobs, from highly
skilled engineering to manual
labor.
are granted in the spring
through a lottery with an Oct. 1
start date. They typically cost
thousands of dollars to process.
Tech companies have em-
braced remote work during the
coronavirus pandemic, which
could make it easier for them
to cope with new immigration
restrictions. Rich Lesser, CEO
of Boston Consulting Group,
said that, given the success
companies have had operating
a distributed workforce, the
visa order could lead some em-
ployers to locate more work
abroad, denting job prospects
domestically.
Microsoft President Brad
Smith said Monday that now
was “not the time to cut our
nation off from the world’s tal-
ent or create uncertainty and
anxiety. Immigrants play a vital
role at our company and sup-
cards but are blocked from
coming until restrictions are
lifted, the Migration Policy In-
stitute estimates.
While tech companies are
among the largest users of
H-1Bs, outsourcing companies
with their main operations in
India, such as Tata Consul-
tancy Services Ltd. and Info-
sys Ltd., dominate the approval
numbers. Such companies make
large numbers of applications
for the visas and typically pro-
vide workers to U.S. companies
that would rather not make
permanent hires, an activity
that has drawn scrutiny from
U.S. authorities in the past.
U.S. tech executives say at-
tracting skills from overseas
has been crucial both for their
companies and for the health of
the industry as a whole. Silicon
Valley’s evolution into a world-
2,678
Tata Consultancy Services
5,859
11,783 though exemptions and addi-
tional quotas for people with
advanced degrees from U.S.
Tata Consultancy Services Deloitte universities typically swell the
1,733 4,293 number of work visas granted.
Microsoft Amazon.com A large portion of H-1B visas
1,701 4,186 has gone to Indian workers his-
Cognizant Microsoft torically. The Department of
1,580 3,560 Homeland Security, in a report
Facebook Google
covering fiscal 2014 applica-
tions, said 70% of H-1B appli-
1,518 3,333
cants were born in India.
IBM Infosys
1,164 2,895
The new restrictions send a
message to talented workers
Apple Capgemini
overseas “that they’re not wel-
1,136 2,727
come here,” said Jyoti Bansal,
*Includes 'new employment' or 'new concurrent employment' †Includes anything other than an entrepreneur and investor
'new employment' or 'new concurrent employment', for example: continuing employment, who came to the U.S. in July
change of employer and amended petitions
Note: Figures may not include all subsidiaries. 2000 on an H-1B visa. Mr.
Source: U.S. Citizenship and Immigration Services Bansal went on to found and
sell his company, AppDynamics,
leading tech cluster has hinged “In my experience, these to Cisco in 2017 for $3.7 billion,
on foreign-born talent, and skillsets are net job creators,” and now runs San Francisco-
many of its top executives, in- Tesla’s South Africa-born Mr. based Harness Inc., a software-
cluding the CEOs of Microsoft, Musk said. “Visa reform makes delivery automation firm.
International Business Ma- sense, but this is too broad,” he —Lauren Weber
chines Corp. and Alphabet are posted on Twitter. Mr. Musk and Michelle Hackman
foreign-born. and the president have had a contributed to this article.

Amazon to Launch
$2 Billion Climate Fund
BY DANA MATTIOLI
Notice pursuant to Article 84 of Issuers’ Regulation
Amazon.com Inc. is launch-
(adopted by Consob with resolution no. 11971 of 14 May 1999 and subsequent amendments) ing a $2 billion internal ven-
ture-capital fund focused on
INCREASE OF SHARE CAPITAL TO SERVE PRIOR PUBLIC EXCHANGE OFFER FOR ALL THE technology investments to re-
ORDINARY SHARES OF UNIONE DI BANCHE ITALIANE S.P.A. duce the impact of climate
Notice is hereby given that the minutes of the meeting of the Board of Directors of Intesa Sanpaolo S.p.A., change, the latest sustainabil-
ity initiative from the technol-
which was held on 16 June 2020, were registered on 19 June 2020 with the Torino Company Register. At the
ogy giant after criticism of its
aforementioned meeting, the Board of Directors, in execution of the powers granted at the Extraordinary environmental record.
Shareholders’ Meeting of 27 April 2020, approved a share capital increase for a consideration (aumento The new fund, which will be
del capitale sociale a pagamento), without pre-emption right pursuant to Article 2441, paragraph 4, first called the Climate Pledge
sentence, of the Italian Civil Code, to serve the prior public exchange offer (offerta pubblica di scambio pre- Fund, will invest in companies
ventiva, “OPS”) for all the ordinary shares of Unione di Banche Italiane S.p.A. (“UBI Banca”). across a number of industries,
As illustrated most recently in the Board of Directors’ report prepared pursuant to Article 2441, paragraph
significantly in the last de-
cade. Global venture capital
and private-equity invest-
ments in clean energy reached
$10.5 billion in 2019, up 6%
from the previous year and
the highest since 2010, accord-
ing to BloombergNEF. Invest-
ments in new energy ventures
and climate-change mitigation
strategies come from a variety
of sources, including tradi-
tional venture capitalists, bil-
lionaires, governments and
companies in energy, automo-