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* * WEDNESDAY, SEPTEMBER 27, 2017 ~ VOL. XXXV NO. 168 WSJ.com EUROPE EDITION
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What’s
Macron Pushes for a More Unified Europe
Senate Nixes
News Health-Law
Repeal Vote
Business & Finance
quifax said Chairman
E and CEO Richard Smith
will step down as the
credit-reporting firm grap-
ples with the aftershocks
BY KRISTINA PETERSON Sen. Susan Collins (R.,
of its massive hack. A1,A2
AND STEPHANIE ARMOUR Maine) said late Monday she
 Britain’s Dyson, known wouldn’t support the Graham-
for its high-end appliances, The U.S. Senate won’t vote Cassidy plan, criticizing what
said it was developing an this week on the latest Repub- she called a rushed process as
electric car to hit the roads lican health bill, multiple GOP well as the plan’s cuts to Med-
by 2020 or 2021. B1 lawmakers and aides said icaid and other concerns.
Tuesday, effectively ending the Sens. Rand Paul (R., Ky.)
 A small Uber shareholder
party’s bid to topple the Af- and John McCain (R., Ariz.)
sued the ride-hailing com-
fordable Care Act before a key had already said they would
pany and its former CEO
deadline. oppose the bill. Those three
for allegedly covering up
The move comes after it Republican opponents de-
“illicit business tactics.” B1
became clear Monday that prived sponsors of a majority
 Germany’s Siemens the measure wouldn’t attract in the Senate.
agreed to merge its rail enough GOP support. After Some Republicans had
operations with French this coming Saturday, a par- wanted to push ahead with a
train maker Alstom. B1 liamentary vehicle expires vote this week, but others
that would have allowed the were wary of another high-
 GE is in danger of los-
measure to pass with a sim- profile defeat after the latest
ing a $2.5 billion contract
ple majority. The health mea- Republican health plan failed
to sell diesel locomotives
sure would then require 60 on a Senate vote in July.
to Indian Railways because
votes to pass, eight more The measure, from Sens.
of a political shake-up. B1
than the number of seats Re- Lindsey Graham of South Car-
 The EU has begun an an- publicans control. olina and Bill Cassidy of Loui-
titrust probe into the pro- “We plan to move forward siana, would have knocked
posed merger between Ray- with our next priority” and fo- down central pillars of the
Ban maker Luxottica and cus on a tax measure, Senate ACA, also called Obamacare,
optical-lens firm Essilor. B2 Majority Leader Mitch McCon- and given significant more
nell (R., Ky.) said Tuesday. Please see HEALTH page A6
 Axovant said that its
experimental Alzheimer’s
drug failed to meet the
goals of a pivotal trial. B3
 Twitter said it would be- GOP Weighs Tax
LUDOVIC MARIN/PRESS POOL

gin testing a new limit of

Rate Above 35%

280 characters for tweets,
double its current limit. B4
 U.S. oil prices returned to
bull-market territory and
BY RICHARD RUBIN burden among different in-
the global benchmark hit a
AND MICHAEL C. BENDER come groups.
two-year high, on confidence
EYE ON BERLIN: French President Emmanuel Macron laid out his vision of a more integrated Europe An additional top rate on
OPEC will shrink a glut. B10
during a speech in Paris. The address was timed to influence the postelection debate in Germany. A3 WASHINGTON—The Repub- the highest earners would
 The U.S. is the world’s lican tax plan being released make it easier for President
second most competitive Wednesday will open the door Donald Trump to argue—as he
economy, trailing Switzer- to a top individual tax rate has sometimes promised—that

Equifax CEO to Step Down

land, according to the World that is higher than the 35% the wealthiest households
Economic Forum index. B3 that has been in previous aren’t getting a significant tax
plans, according to two people cut. It also could spark an in-
World-Wide familiar with the discussions. tra-Republican debate over

 The Senate won’t vote

this week on the latest Re-
In Wake of Big Data Breach Republicans have been dis-
cussing collapsing the current
seven individual tax brackets
into three, with a top rate of
how to tax the highest earn-
ers. That could complicate al-
ready messy congressional de-
liberations over the details of
publican health bill, effec- BY ANNAMARIA ANDRIOTIS were being held accountable publicly identified security 35%. The idea now under con- tax policy this fall.
tively ending the party’s AND EMILY GLAZER for the breach, according to vulnerability. That vulnerabil- sideration would allow for a Republican lawmakers and
bid to topple the ACA be- people familiar with the mat- ity was later identified as be- fourth rate at the very top, the White House are expected
fore a key deadline. A1 Equifax Inc. moved to take ter. Equifax on Sept. 7 dis- ing exploited by the hackers to likely somewhere between the to release a blueprint for their
 A new GOP tax plan will concrete action over its far- closed that the cyberattack ransack Equifax’s systems. 35% in proposals and the ex- plans on Wednesday and Mr.
open the door to a top in- reaching hack ahead of con- compromised vital personal in- In a statement, Mr. Smith isting top rate of 39.6%. Trump will speak in Indiana
dividual rate that is higher gressional hearings next week, formation—names, addresses, said that he believed “it is in The document won’t offer on the issue. House Republi-
than the 35% that has been announcing that Chairman and social security numbers and the best interests of the com- details about the level of that cans will hold their own half-
in previous plans. A1 Chief Executive Richard Smith dates of birth—of potentially pany to have new leadership to new top rate or the income day retreat on the subject in
would step aside while leaving 143 million Americans. Please see CEO page A2 level at which it would apply, Washington on Wednesday.
 Mueller is set to begin the door open to clawbacks of The attack led to a public the two people said. Instead, it The framework is the prod-
interviews of current and compensation. and political outcry. It also  Equifax security showed signs will give Congress discretion uct of the so-called Big Six of
former White House offi- The credit-reporting com- called into question Equifax’s of trouble before hack.......... A2 to agree on a measure to meet U.S. policy makers on taxes:
cials in his probe into Rus- pany’s board looked to show overall security practices and  SEC gets flak on response to whatever target lawmakers set House Ways and Means Chair-
sian interference in the that Equifax and its leadership when and whether it patched a its breach..................................... B6 for the distribution of the tax Please see TAXES page A6
U.S. election. WSJ.com
 Iraqi Kurds are bracing
for potential economic fall-
out from an independence FLORIDA’S ORANGE INSIDE
vote opposed by neighbor-
ing Turkey and Iran. A3
 The U.S. plans to restrict
Russian military flights
INDUSTRY IS DYING
HASAN JAMALI/ASSOCIATED PRESS

over American territory in

the latest sign of strain in
U.S.-Russia relations. A3 The state’s citrus sector, beset by a disease that is killing off groves, is
 North Korea can better banking on a genetically engineered orange years away from potential sale
target U.S. aircraft with a
new missile system than in BY JULIE WERNAU unripe and unusable. This year’s crop will
the past, analysts said. A4 likely be the smallest since the 1940s.
 The U.S. Treasury Florida is synonymous with oranges. So miserable is Florida’s orange industry
named eight North Korean They’re on the state license plate. At the that farmers are banking on inventing a ge-
banks and 26 individuals product’s heyday in 1977, the state boasted netically engineered orange that will be
to its sanctions list. A4 53 orange juice processing plants. Today, be-
set by bacteria, hurricanes and international
ready for sale—at the earliest—in 2022.
The secret grove—1.5 acres of knee-high
THE BEST SAUDI ARABIA
 Trump plans to set the competition, there are seven. trees created with a spinach gene scientists COLLEGES LIFTS BAN ON
cap for refugee admissions
to the U.S. for the coming fis-
A disease called “citrus greening” is push-
ing Florida’s orange juice industry toward
hope can defend against the disease—is
down an unmarked road and behind locked
IN THE U.S. WOMEN DRIVING
cal year at 45,000, the lowest the brink of collapse. Greening starts at the gates. Visitors are logged; the company re-
number in decades. A6 leaves and works its way through the tree quested photographs taken by a reporter of- JOURNAL REPORT, R1 WORLD NEWS, A3
 U.S. lawmakers are like a hardening of the arteries, blocking nu- fer no clues to the grove’s location.
pushing for quick approval trients and water. Oranges drop off branches Please see ORANGE page A8
of hurricane relief funding
for Puerto Rico. A7
 French President Macron Coaches, Adidas Charged The American Legion: Hollywood’s New Hot Spot
set out his vision of a more
i i i
united Europe in a speech
aimed at Germany. A3 In U.S. Corruption Probe Younger veterans are reinventing the ‘old-timey funny-hat club’
BY REBECCA DAVIS O’BRIEN nancial advisers and apparel
CONTENTS Markets................... B10 AND BEN COHEN executives bribed college BY MICHAEL M. PHILLIPS that overthrew Post 43’s old
Business News..... B3 Opinion.............. A10-11
Crossword.............. A12 Property Report... B9
coaches to direct players to guard. “We have free parking,
Heard on Street... B10 Technology............... B4 Federal authorities brought them. HOLLYWOOD—Here are which is of tremendous value
Journal Report.. R1-10 U.S. News............. A5-7 fraud charges against an Adi- Among those charged were words not often seen together in Hollywood. There’s really no
Life & Arts......... A9,12 Weather................... A12 das executive and coaches at the executive from Adidas, in a sentence: American Le- other place I want to go.”
Management.......... B5 World News....... A2-4
some of the premier college- athlete financial advisers, and gion and cool. The American Legion has
€3.20; CHF5.50; £2.00; basketball programs in the Chuck Person, a former star The young guns who have an image problem. Though the
U.S. Military (Eur.) $2.20
U.S. as part of a wide-ranging with the National Basketball seized control of American Le- group is immersed in good
corruption probe that has en- Association who works as an gion Post 43 are trying to fuse works, its name summons vi-
snared schools including the associate coach for the men’s them together in the minds of sions of crotchety vets nursing
University of Arizona and the basketball team at Auburn, his a new generation of combat beers in linoleum-floored
University of Louisville. alma mater. Mr. Person was veterans, rebranding their posts. An “old-timey funny-hat
Prosecutors from the Man- charged with accepting tens of venerable Egyptian Revival drinks, the nicest people, the club,” in Mr. Rivero’s words.
hattan U.S. Attorney’s Office thousands of dollars in ex- building, with its underground best-looking bar,” says Post At one California Legion
s Copyright 2017 Dow Jones & unsealed three criminal com- change for steering student- Art Deco bar, as “the coolest Commander Fernando Rivero, a convention, he was aghast the
Company. All Rights Reserved
plaints Tuesday, alleging athletes to a financial adviser. private club in Hollywood.” 42-year-old TV producer who program mostly featured ads
schemes in which agents, fi- Please see NCAA page A6 “We have the cheapest engineered a bloodless coup Please see LEGION page A8
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A2 | Wednesday, September 27, 2017
If This Is a Trade War, China Is Beating U.S.
CHINA’S WORLD
By Andrew Browne
SHANGHAI—Steve Ban-
non, the recently departed
White House chief strategist,
asserts that, “We’re at eco-
nomic war with China.”
If that’s the case, Beijing
seems supremely confident
of victory.
Eight months into a
Trump presidency, the Chi-
nese leader-
ship has of-
fered a few
gestures to
placate the
U.S.—lifting a
ban on U.S.
beef was one—while press-
ing its advantages on all
fronts in its competition
with the West for industrial
dominance.
Expect one or two more
headline-grabbing conces-
sions; Beijing is gearing up
for a splashy announcement
on electric vehicles, which
may help Tesla. In Beijing
this week, U.S. Commerce
Secretary Wilbur Ross said
he hoped for “very good de-
liverables,” when Mr. Trump
visits in November.
But China flaunts its indif-
ference to the West’s com-
Equifax Security Showed Signs of Trouble Before Hack
BY ANNAMARIA ANDRIOTIS
AND ROBERT MCMILLAN
Weaknesses in Equifax
Inc.’s security systems were
apparent in the months before
a massive hack exposed vital
consumer information, accord-
ing to several cyberrisk analy-
sis companies.
Equifax’s cybersecurity has
become an issue in the wake of
the breach that exposed infor-
mation of potentially 143 mil-
lion Americans. On Tuesday,
the company said that Chair-
man and CEO Richard Smith
would step aside.
The credit-reporting com-
pany was behind on basic
maintenance of websites that
could have been involved in
transmitting sensitive con-
sumer information and scored
poorly in areas that would play
a major role in the company’s
massive data breach. That was
the finding of analyses done by
CEO
Continued from Page One
move the company forward.”
In acting before hearings,
Equifax’s board had in mind
the experience of former Wells
Fargo CEO John Stumpf, the
people familiar with the matter
said. That executive appeared
almost exactly a year earlier
before two congressional com-
mittees to answer for his
bank’s sales-practices scandal.
Mr. Stumpf was grilled by
legislators and repeatedly re-
fused to say whether his posi-
tion or compensation would be
affected by the bank’s problems.
Both Mr. Stumpf and the bank
were attacked during and after
the hearings for what many
U.N. Says Nearly a Half Million Rohingya Have Fled for Bangladesh
CATHAL MCNAUGHTON/REUTERS
KEPT IN LINE: The U.N. increased its estimate of Muslim Myanmar evacuees to 480,000. Above, a queue for aid at Cox’s Bazar, Bangladesh.
plaints almost gratuitously.
Foreign businesses are on
notice that they are toler-
ated in China only for as
long as they serve Chinese
state goals.
E
ven as President Xi
Jinping promises to
“push forward market
opening faster,” his “Made
in China 2025” plan has the
overt aim of displacing for-
eign manufacturers in criti-
THOMAS PETER, PRESS POOL
cal areas like robotics, medi-
cal equipment and
driverless vehicles.
An evolving “social-
credit” system will use in-
trusive monitoring and big
data to ensure all compa-
nies—Chinese and foreign—
align with five-year plans.
As part of this effort, the
Communist Party is acceler-
ating its push to plant cells
in private companies, includ-
ing multinationals.
U.S. and European firms
report they have rarely felt
less welcome. Internet
blocks make it increasingly
hard for their executives to
access business information
in the cloud. Even email is
difficult. Foreign investment
is slowing this year.
This is the behavior of a
government that senses it
has the upper hand.
What emboldens China?
Its sharpest trading practices
fall outside the scope of
World Trade Organization
rules. The system wasn’t set
up with a secretive and cen-
trally directed colossus like
four companies that rank the
security status of companies
based on publicly available in-
formation.
Since disclosing the breach
on Sept. 7, Equifax has faced
questions in information-secu-
rity circles about whether and
when it patched a publicly
identified software vulnerabil-
ity. The company has acknowl-
edged the questions and said
that hackers exploited the
software vulnerability to ran-
sack its systems.
“We take seriously our re-
sponsibility to protect the se-
curity of the information in
our possession,” an Equifax
spokeswoman said.
Meanwhile, a lawsuit filed
by the Massachusetts attorney
general against Equifax alleges
a breakdown in minimum-re-
quired security standards. The
suit claims that exposed con-
sumer information wasn’t en-
crypted on Equifax’s systems
perceived as a lack of account-
ability. Mr. Stumpf abruptly re-
tired soon afterward.
The Equifax board was also
mindful that there were calls
among some legislators for
both Mr. Smith and directors
to be taken to task, a person
familiar with the matter said.
Although Equifax’s chief infor-
mation and security officers
retired a week after the hack
was disclosed, those depar-
tures weren’t viewed as signifi-
cant enough, the person added.
Mr. Smith, CEO since 2005,
is being succeeded as chair-
man by a current director,
Mark Feidler, who will serve
as nonexecutive chairman,
Equifax’s board said. It added
that Paulino do Rego Barros,
Jr., who was most recently
Equifax’s president for the
WORLD NEWS
Chinese Premier Li Keqiang, right, welcomed U.S. Secretary of
Commerce Wilbur Ross in Beijing on Monday.
China Inc. in mind. Western
economies, once optimistic
that WTO membership would
induce transparency and free-
market overhauls in China,
now have no good defense.
Put crudely, China knows it
can get away with it.
Consider the remarkably
small number of cases
brought against China since
it joined the WTO in 2001,
despite widespread com-
plaints about forced technol-
ogy transfers, rampant intel-
lectual property theft and
unfair competition from
state firms. The total be-
tween 2002 and 2016: just
38. (During the same period,
the U.S. was the target of 73
complaints.)
China looks at this data as
The Equifax Hack:
Timeline of Events
March: Researchers report
security flaw in software pow-
ering part of Equifax’s website.
May 13: Hackers leverage
flaw to break into Equifax’s
customer dispute portal.
July 29: Equifax notices
suspicious traffic and blocks it.
Aug. 2: Equifax brings in
outside cyber investigators.
and that the company didn’t
have a written information-se-
curity program that met the
minimum requirements set by
the state’s regulations. Equifax
said it doesn’t comment on
pending litigation.
The findings from the four
security-rating companies
were compiled measuring a
range of publicly available
Asia-Pacific region, has been
appointed interim CEO.
In a statement, Mr. Feidler
said, “The board remains
deeply concerned about and
totally focused on the cyberse-
curity incident. We are work-
ing intensely to support con-
sumers and make the
necessary changes to minimize
the risk that something like
this happens again.
“Speaking for everyone on
the board, I sincerely apolo-
gize.” He added that the board
has formed a special commit-
tee to focus on “the issues
arising from the incident and
to ensure that all appropriate
actions are taken.”
This could include further
action related to Mr. Smith. An
agreement with the departing
executive said that while he
THE WALL STREET JOURNAL.
Not Minding the Gap
China shows scant concern for
U.S. complaints over trade
imbalances.
$600 billion U.S. imports
$480 billion
500
400
300
Trade gap
200
with China
100
U.S. exports
$170 billion
0 Scott Kennedy, an expert on
2003 ’10 ’16
Source: U.S. Commerce Department
THE WALL STREET JOURNAL.
affirmation that, by and Trump’s chief trade negotia-
large, it plays by the rules. tor, Robert Lighthizer, says
Critics say it has gotten ex- he gets “an awful lot of
pert at going around them. complaints” from chief exec-
So far, the strategy is utives forced to share tech-
working. The economy is on nology with joint-venture
an upswing, propped up by partners. But those CEOs
debt but also, for now, defy- are reluctant to go public
ing conventional theories with their gripes for fear of
that mercantilism will sap retaliation in their most
China’s creative vigor. One in promising market.
three of the world’s “uni- Meanwhile, China is adept
corns”—startups worth more at exploiting divisions be-
than $1 billion—is Chinese, tween U.S. interests on either
according to McKinsey. side of the China trade: steel
manufacturers, for example,
S
uccess reinforces pred- support tariffs on imports;
atory habits. China steel users oppose them.
will soon have more What’s the answer for the
middle-class consumers U.S.? Mr. Trump has dropped
than the entire U.S. popula- threats to slap tariffs on Chi-
tion, giving Beijing huge nese exports, wary of a di-
market power. Donald sastrous trade war. The need
In April, cyberrisk analysis
Aug. 22: Equifax registers firm Cyence rated the danger
the new domain name of a data breach at Equifax
equifaxsecurity2017.com. during the next 12 months at
Sept. 7: Equifax announces 50%. It also found the com-
breach potentially affecting pany performed poorly when
some 143 million U.S. consumers. compared with other financial-
Sept. 15: Equifax says se- services companies. “In their
curity intrusion ran from May peer group of 23 companies,
13 to July 30. they were second-to-last,” said
Sept. 21: A Senate commit- Arvind Parthasarathi, the com-
tee schedules Oct. 4 hearing pany’s chief executive.
and calls CEO Richard Smith The other analyses gave
as a witness. Equifax a higher overall rank-
Sept. 26: Mr. Smith resigns ing, but the company fared
poorly in overall web-services
security, application security
data, not at Equifax’s behest, and software patching.
using different methodologies. SecurityScorecard ranked
Such analyses don’t represent Equifax as “middle of the
a deep-dive into internal sys- pack,” when compared with fi-
tems and cyberdefenses, but nancial-services peers, said Al-
do give an overall view of a exander Heid, the security
company’s security posture. firm’s chief research officer.
The companies conducting the But Equifax used older soft-
reviews typically sell their re- ware—such as the Apache
ports to a company’s current Struts tool kit that hackers
or potential customers. used to break into Equifax—
opportunity for 2017 and that
he “irrevocably” gives up any
claims to such a payout.
The agreement is unusual
due to its open-ended nature.
That, in turn, leaves open the
NOAH BERGER/BLOOMBERG NEWS
possibility of compensation
clawbacks.
An Equifax spokesman said
that certain of Mr. Smith’s pay
awards “are still outstanding,”
and the disposition of those
awards will await the outcome
of the investigation. He did
say that no matter how Mr.
Richard Smith in 2007. Smith’s departure was charac-
terized the executive wouldn’t
would retire as of Tuesday, “all receive $5.2 million in sever-
decisions relating to the char- ance he could otherwise have
acterization” of his departure been entitled to.
will be deferred until the board Mr. Smith’s 2016 pay pack-
completes a review. The agree- age totaled nearly $15 million,
ment also stated Mr. Smith and he has made about $127
won’t receive an annual bonus million in combined total com-
pensation since he joined
Equifax as CEO in 2005.
No matter how Mr. Smith’s
departure is ultimately charac-
terized, he is likely to receive
an estimated $18.4 million due
him under Equifax’s pension
and retirement plan.
Mr. Smith’s compensation is
likely to be a topic of discus-
sion at the coming hearings.
Sen. Elizabeth Warren (D.
Mass.) said in a statement
Tuesday, “It’s not real ac-
countability if the CEO resigns
without giving back a nickel in
CORRECTIONS 
AMPLIFICATIONS
Baidu Inc.’s Tieba message
board was misspelled Teiba in
a Technology article Tuesday
about platforms fined under
China’s cybersecurity law.
Readers can alert The Wall Street
Journal to any errors in news articles
by emailing wsjcontact@wsj.com.
to enlist China’s help on
North Korea also played into
that decision.
The same consideration
may end up blunting Mr.
Lighthizer’s formal investiga-
tion into forced technology
transfers.
For China, the message is
Mr. Trump’s threats won’t be
backed up with action.
F
rom Washington to
Berlin, the cry has
gone up for “reciproc-
ity”—equal market access—
from Beijing.
It’s a beguiling ideal to be
sure. But to get there, says
Chinese industrial policy at
the Center for Strategic and
International Studies, would
require not just long-term
engagement with China, and
support from the WTO and
other world bodies, but also
close cooperation among
economies threatened by
Chinese protectionism.
In other words, the Trump
administration would have
to inspire a coalition of
countries that it is now try-
ing to bully into submission
over their trade surpluses
with the U.S. South Korea is
a prime example.
Mr. Kennedy is skeptical
that it can. The Chinese, he
says, “think they’re in the
driving seat.”
He predicts a flurry of
largely symbolic market-
opening announcements.
“Eventually,” he says, “the
U.S. will accept tokenism.”
and often seemed slow to in-
stall patches.
Equifax’s overall level of se-
curity was weak from at least
the beginning of the year, ac-
cording to a review by The
Wall Street Journal of a cyber-
security score for the company
issued by Fair Isaac Corp. At
that point, Equifax’s FICO en-
terprise security score hovered
around 550 on a scale that
ranges from 300 to 850.
The score began falling in
mid-May. It hit a low of around
475 in mid-July.
Equifax has scored subpar
grades in two areas that
proved critical in the hack, ac-
cording to a Sept. 8 report by
BitSight Technologies Inc. that
was reviewed by The Wall
Street Journal. The company
received a grade of “F” in ap-
plication security and a “D” for
software patching.
—Kate Fazzini
contributed to this article.
pay and without publicly an-
swering questions.”
Mr. Smith is expected to at-
tend the hearings next week,
one before the House Energy
Committee, the other with the
Senate Banking Committee.
Aside from hearings, Equi-
fax faces other legal issues.
The company is being investi-
gated by regulators and faces
legal action, including civil
suits from the Massachusetts
Attorney General and the City
Attorney of San Francisco. The
breach itself is being probed
by the Federal Bureau of In-
vestigation.
Equifax is also contending
with investors who have
shaved about $4.5 billion, or
about a quarter, from its mar-
ket value since the breach was
announced.
THE WALL STREET JOURNAL.
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To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Macron Has Eye on Berlin in Euro Talk
French leader makes
case for eurozone
integration as German
coalition talks loom
French President Emmanuel
Macron set out his vision of a
more united Europe in a
speech aimed at persuading
Germany, where Sunday’s elec-
tion results could reinforce
doubts about deeper integra-
tion in the eurozone.
By William Horobin
in Paris and Marcus
Walker in Berlin
Mr. Macron repeated his call
for a common budget for euro
members, an idea with little ap-
peal for most of Germany’s po-
litical class, but sweetened it
with offers of cooperation in ar-
eas that could appeal more to
Berlin, including migration, se-
curity and the environment.
The French leader timed his
speech at the Sorbonne Univer-
sity in Paris to influence the
postelection debate in Germany,
where Chancellor Angela Merkel
faces tricky talks to form a new
governing coalition after a re-
sult that strengthened populist
and EU-skeptic forces.
“The majority the chancellor
has accepted to build in the com-
ing days and weeks will have to
work with us for the next four
years. I see this as an unprece-
dented opportunity,” Mr. Macron
said. “We won’t agree on every-
Russian
Military
Flights to
Be Curbed
BY BRETT FORREST
WASHINGTON—U.S. officials
are preparing to announce re-
strictions to Russian military
flights over American territory
under the Treaty on Open Skies
in the latest sign of strain in
U.S.-Russia relations.
The treaty permits its 34
ratified member states to con-
duct observation flights over
each other’s territory while
capturing aerial imagery of mil-
itary personnel and materiel.
Treaty-related tensions in-
tensified over two days in Au-
gust, when a Russian plane op-
erating under Open Skies flew
over U.S. cities including
Washington as well as Bed-
minster, N.J., where President
Donald Trump was staying at
the Trump National Golf Club.
Those flights, however,
aren’t the cause of the new re-
strictions, according to U.S. of-
ficials. Instead, they say Russia
is in violation of the Open Skies
treaty because the Kremlin im-
posed restrictions on flights
over Kaliningrad, Russia’s Bal-
tic Sea exclave, which U.S. offi-
cials believe is host to a cache
of sophisticated weaponry.
While the treaty allows for
a per-flight range of 5,500 ki-
lometers (3,418 miles), Russia
has enforced a “sub-limit” of
500 kilometers for flights over
Kaliningrad. Since it requires
roughly 1,200 kilometers to
cover the entirety of Kalinin-
grad during an Open Skies
flight, according to Pentagon
officials, this restriction com-
pels treaty members to reallo-
cate two flights that would
otherwise be used to observe
other portions of Russia.
Perhaps more important,
this limitation enforces gaps
between the flights needed to
cross Kaliningrad, providing an
incoherent picture of the terri-
tory, U.S. officials maintain. The
treaty’s U.S. delegation was
scheduled to announce recipro-
cal countermeasures Tuesday.
“We want to induce Russia
to come back into compliance
with the treaty,” said a State
Department official, adding
steps the U.S. takes that are re-
versible could prod Moscow.
Among options that U.S. of-
ficials have considered are
limitations of Russian flights
over Alaska and Hawaii, ac-
cording to officials with
knowledge of the matter.
For their part, Russian offi-
cials say that several countries
that are party to Open Skies—
including Canada, Georgia,
Turkey and the U.S.—have
placed limits on access to their
territories under the treaty.
French President Emmanuel Macron delivering a speech on his proposals for reforming the EU, on Tuesday at the Sorbonne in Paris.
thing, at least not immediately,
but we will discuss everything.”
The outcome of the dance be-
tween the EU’s two dominant
nations will be central to the eu-
rozone’s future. Although the
bloc’s economy is finally enjoy-
ing solid economic growth after
years of slow recovery, officials
in Paris and Berlin say the euro’s
members continue to diverge,
leaving the region vulnerable to
future turbulence like the debt
crisis that pushed the bloc to the
After Vote, Iraqi Kurds Gird for a Backlash
BY ISABEL COLES
AND ALI A. NABHAN
ERBIL, Iraq—The landlocked
Kurdish region of Iraq is bracing
for potential economic fallout
from a referendum on indepen-
dence strongly opposed by
neighboring Turkey and Iran,
whose threats to close their bor-
ders could squeeze food imports
and disrupt oil exports.
The concern is particularly
immediate for Shukr Ali, a mer-
chant who said he is waiting for
10 trucks of rice worth $250,000
to arrive from the southern Ira-
nian port of Bandar Abbas. Any
delay will add to the costs of
transporting the goods.
“We are worried,” Mr. Ali,
who is 56 years old, said Tues-
day at a wholesale market in the
Kurdish regional capital Erbil.
“You don’t know what will hap-
pen tomorrow.”
Few traders said they ex-
pected the borders to be closed
for long, if at all. They count on
shared interests between the
After a Decade, Brazil Lets In Big Oil Firms
BY PAUL KIERNAN
RIO DE JANEIRO—Brazil will
on Wednesday begin reversing
what industry officials say was a
costly and ultimately disastrous
decision a decade ago: setting
aside billions of barrels from the
Western Hemisphere’s largest
oil discovery in 30 years for its
state-run oil firm at a time when
deep-pocketed foreign compa-
nies were clamoring to invest.
Brazil removed key acreage
from a 2007 auction that could
have yielded $100 billion in
signing bonuses plus hundreds
of billions more in spending
commitments when the price of
oil was near record highs, ac-
cording to several former execu-
tives at Western oil companies.
Now, Brazil may generate
just a fraction of what it could
have as it looks to exploit its oil
potential and revive its econ-
omy.
“We are trying to put the
country back on track,” Energy
Minister Fernando Coelho told
an oil conference in Houston
earlier this year.
Wednesday’s auction is the
ISRAEL
Three Israelis Die in
West Bank Shooting
A Palestinian gunman killed
three members of Israel’s secu-
rity forces at a West Bank set-
tlement, police and medics said,
the latest burst of violence in
the Israeli-controlled territory.
The attacker approached a
WORLD NEWS
brink of collapse in 2010-12.
Ms. Merkel’s conservative
Christian Democrats, who won
the elections but received a re-
duced share of the vote, have be-
gun sounding out the left-lean-
ing Greens and the pro-business
Free Democrats, or FDP, about a
three-way coalition.
Before the election the FDP
was vocally critical of France’s
push for a large, central budget
for the eurozone. Ms. Merkel
and her party also have strong
Kurdish region and its neighbors
to prevail over politics.
But their concerns highlight
the economic vulnerability of
the region Kurds are seeking to
convert into an independent
state, which produces little of its
own besides oil.
Results of Monday’s vote are
expected by the end of the day
on Thursday, and are seen as
certain to be in favor of indepen-
dence, which the overwhelming
majority of Kurds favor.
Although the referendum
wouldn’t automatically deliver
statehood, Kurdish leaders say it
will give them a mandate to ne-
gotiate an amicable separation
from the central government in
Baghdad over the coming years.
But Iraqi Prime Minister
Haider al-Abadi, who opposes
the vote, has said there will be
no talks between his govern-
ment and Kurdish leaders after
the referendum, which Baghdad
said was unconstitutional.
The vote also was opposed by
the U.S., which said it would un-
first of nine bidding rounds
planned through 2019 for areas
that could hold roughly 10 bil-
lion barrels of recoverable oil, or
enough to supply the U.S. for al-
most a year and a half.
Included in upcoming auc-
Falling Short
Brazil and its national oil company have failed to convert huge oil
discoveries a decade ago into significantly higher production.
Exploratory wells
concluded
250
200
150
100
50
0 0
2004 ’06 ’08 ’10 ’12 ’14 ’16
Sources: Petrobras; National Agency of Petroleum, Natural Gas and Biofuels
THE WALL STREET JOURNAL.
checkpoint at the settlement of
Har Adar, northwest of Jerusa-
lem on Tuesday morning, drew a
pistol and fired at close range,
police said. Israeli forces shot
and killed the Palestinian at-
tacker, they added.
Paramedics pronounced three
dead—one border police officer
and two security guards—at the
scene and took one person who
was wounded to a hospital out-
reservations, although the chan-
cellor has avoided rebuffing the
French leader.
The success of the populist
Alternative for Germany party
in winning 12.6% of the vote on
Sunday could also turn Ger-
many’s political focus inward, as
mainstream parties grapple
with the antiestablishment,
anti-immigration mood in part
of the German electorate.
The 39-year-old French
leader knows his ambitious
Iraqi Kurds sat in an Erbil cafe Tuesday, one day after the vote.
dermine the war against Islamic
State.
The strongest warning came
from Turkey’s President Recep
Tayyip Erdogan, who as Kurds
cast their votes threatened to
close his country’s border with
Iraq’s semiautonomous Kurdish
region and stop oil flows
through an export pipeline on
which it depends economically.
The shelves of any supermar-
ket in the region illuminate the
tions are areas that Brazil had
originally intended to lease out
in 2007, shortly after Petróleo
Brasileiro SA, or Petrobras, dis-
covered huge reservoirs of
crude in an ultra-deep layer
known as the sub-salt, off the
Petrobras oil and gas
production
7 million barrels a day
6 But days before the auction,
Projections
2008
5
2011
4 2016
3 tion that it would be a “crime
2 the reserves to other oil compa-
1 cial.
2008 2010 2020
WORLD WATCH
side Jerusalem. Authorities re-
ported no other injuries.
—Rory Jones
SAUDI ARABIA
Riyadh Lifts Its Ban
On Women Driving
Saudi Arabia lifted the ban on
women driving, removing a re-
striction that had become a
Wednesday, September 27, 2017 | A3
asylum—areas where deeper co-
operation could appeal to each
of the German parties now be-
ginning coalition talks. Mr. Ma-
cron also revived France’s call
for a financial transaction tax to
fund development aid.
He repeated his case for the
eurozone to have a central bud-
get, managed by a European fi-
nance minister. “We need much
more investment and we need
means of stabilization to con-
front economic shocks,” he said.
Both Ms. Merkel’s conserva-
tives and the FDP have a differ-
ent view of what the eurozone
needs, however. The dominant
view in Berlin is that the euro-
zone’s future stability relies on
its member countries reforming
their national economies to
LUDOVIC MARIN, PRESS POOL
make them leaner and more
competitive, rather than on
large public-spending plans at
the European level.
Senior FDP official Alexander
Graf Lambsdorff praised Mr.
Macron’s speech as “brave, even
if not all proposals will meet
with the FDP’s agreement.”
drive for a deeper union among Leading Green member Cem
the euro’s 19 members was al- Özdemir, seen as a possible con-
ready a hard sell in Germany. He tender to become Germany’s
praised Ms. Merkel’s commit- next foreign minister, welcomed
ment to Europe and said he was the speech unreservedly.
confident she wouldn’t give in Ms. Merkel reiterated her
to nationalist pressures. skepticism on Monday but said
Mr. Macron began his speech she was willing to talk. Berlin
with a call for wide-ranging officials say the chancellor
overhauls of Europe’s policies in doesn’t want to embarrass Mr.
defense procurement, corporate Macron by flatly rejecting his
taxation, farm subsidies, digital overtures. Germany is keen for
infrastructure, carbon emis- him to succeed in his efforts to
sions, border protection and overhaul France’s economy.
buying more goods for import in
case the borders are closed.
Prices are stable, though cus-
tomers are buying extra to store
in case threats of isolation are
AGENCE FRANCE-PRESSE/GETTY IMAGES
carried out.
Despite those threats, Mr. Ab-
dullah and other traders said
they had voted “yes” to indepen-
dence, which Kurds were de-
prived of when colonial powers
carved up the Middle East after
World War I.
In pursuit of economic inde-
pendence from Baghdad, Iraq’s
Kurds have in recent years culti-
vated close ties with Turkey,
risk for the Kurdish region: Al- signing energy deals and build-
most all products are either ing a pipeline to the Mediterra-
trucked through or made in Tur- nean Sea which carries an aver-
key. age of more than 600,000
“Everything is imported,” barrels of oil a day.
said Amer Abdullah, 40, who But critics say the Kurdistan
sells foodstuffs brought from Regional Government has
Turkey at the wholesale market. merely shifted its dependency
“If the borders are closed, in one from Baghdad to Turkey.
month everything would be fin- Strengthening the economy is a
ished.” more important step toward
Mr. Abdullah and other trad- statehood than holding a refer-
ers said they were holding off endum, they say.
southeast coast. new information about the ar-
At the time, the U.S. shale eas,” the spokesman said.
boom was still a dream, experts Brazil’s oil output today is
were worried that global pro- less than half what industry of-
duction might peak and oil ficials say it should be.
prices were en route to an all- And Petrobras, which pro-
time high. The size and timing duces the vast majority of Bra-
of the find appeared so fortu- zil’s oil, has been hobbled by
itous, then-President Luiz Inácio years of mismanagement and
Lula da Silva said God must be corruption that have forced it to
Brazilian. slash jobs and production tar-
Foreign oil companies were gets.
desperate for new reserves. “A Given Petrobras’ problems,
lot of people were very excited Brazilian policy makers say the
about it,” recalled Shafe Alexan- only solution is foreign capital.
der, BP’s country manager in In the past year, they have re-
Brazil. laxed restrictions on private in-
vestment in the sub-salt and
Mr. da Silva yanked 41 explora- eased requirements that oil
tion blocks that were believed to companies source equipment
contain sub-salt oil, after being and machinery in Brazil. But
convinced by Petrobras’ former Brazil faces a very different
head of exploration and produc- market from 2007.
Crude prices have fallen to
against the fatherland” to open around $55 a barrel from a peak
of nearly $150 in 2008. The
nies, according to a former offi- shale boom allowed the U.S. to
practically double its output and
A spokesman for Mr. da Silva presents a quicker, cheaper al-
defended the former president’s ternative to deep water ven-
decision. “Any country would tures like Brazil’s, where a single
re-evaluate the situation of an well can cost $100 million to de-
auction when presented with velop.
symbol of women’s oppression in tions of Sunni Islam, and the
the deeply conservative kingdom. kingdom’s religious establish-
The announcement, made by ment have long exercised exten-
King Salman through a royal de- sive political sway.
cree, says women will be officially But under the leadership of
allowed to obtain driving licenses King Salman and his son, Crown
in Saudi Arabia, the only country in Prince Mohammed bin Salman,
the world where women weren’t the Saudi monarchy is pushing to
allowed to drive. The decree will relax social rules as part of an am-
go into effect in June. bitious program focused on open-
Saudi Arabia practices one of ing up the oil-dependent economy.
the world’s strictest interpreta- —Margherita Stancati
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A4 | Wednesday, September 27, 2017
JOSHUA ROBERTS/REUTERS
President Donald Trump on Tuesday declared North Korea an ‘outlaw regime’ and called for Pyongyang’s isolation on the world stage.
U.S. Expands Sanctions
On North Korean Entities
BY IAN TALLEY
WASHINGTON—The U.S.
Treasury Department named
eight North Korean banks and
26 individuals linked to the na-
tion’s financial networks to its
sanctions list.
The move came as President
Donald Trump declared North
Korea an “outlaw regime” and
thanked Chinese President Xi
Jinping for breaking banking
ties with his Asian neighbor, a
move the U.S. president said
was “unthinkable even two
months ago.”
Tuesday’s expanded sanc-
tions are part of a larger ad-
ministration effort to constrict
capital flows that U.S. officials
and North Korean defectors
say are used by Pyongyang to
fund its banned nuclear-weap-
ons and missile programs.
Treasury said the banks and
the individuals—largely North
Koreans—were operating out
of branches in China, Russia,
China Buys Coal Before U.N. Cutoff
BY CHUN HAN WONG
BEIJING—China resumed
North Korean coal imports in
August after a nearly half-year
hiatus, just before a total
United Nations ban on Pyong-
yang’s coal trade took effect.
China had suspended pur-
chases of North Korean coal in
February, in response to a U.N.-
set cap on Pyongyang’s coal
trade set in November 2016,
part of sanctions to curb North
Korea’s nuclear ambitions.
Chinese coal imports from
its neighbor this year re-
mained below those limits af-
ter last month’s shipments.
Chinese customs data re-
leased Tuesday shows China ac-
cepted about 1.64 million tons
of North Korean coal valued at
some $138.1 million in August,
when the U.N. Security Council
expanded sanctions to a com-
plete halt on coal shipments
Beijing Tightens Up Ahead of Party’s National Congress
China appears to be batten-
ing down the hatches ahead of
the Communist Party’s 19th
National Congress next month,
a time when party leaders
hope to keep distractions to a
minimum.
By Alyssa Abkowitz
in Beijing
and Georgia Wells
in San Francisco
At least, that’s how some
China observers are explaining
the rationale behind the post-
poning of two Ironman athletic
competitions, new restrictions
on foreigners traveling to Ti-
bet, and disruptions to the
WhatsApp messaging service.
“All the crackdowns are to
ensure there’s no disturbance
to stop what [President] Xi
Jinping wants,” said Shaun
Rein, managing director of
China Market Research Group.
“There can’t be any surprises.”
Although the government
hasn’t commented on the
Libya and the United Arab
Emirates.
“We are targeting North Ko-
rean banks and financial facili-
tators acting as representatives
for North Korean banks across
the globe,” Treasury Secretary
Steven Mnuchin said.
U.S.-based North Korea ana-
lysts say that key to the effec-
tiveness of sanctions will be
whether host countries will
shut targeted banks and expel
the individuals operating them.
Treasury officials said the
latest action is consistent with
United Nations Security Council
resolutions. U.S. officials and
analysts have complained that
many U.N. member countries
have failed to implement Secu-
rity Council sanctions. A recent
U.N. report said China and Ma-
laysia had failed to adequately
address sanctioned networks
operating in their countries.
“It is time for all responsi-
ble nations to join forces to
isolate the North Korean men-
and banned Pyongyang from ex-
porting iron, lead and seafood.
China has been the sole im-
porter of North Korean coal.
Tuesday’s data show Pyong-
yang earned more coal-export
income in August than in either
January or February, when
China imported about $122.5
million and $98.1 million of
North Korean coal, respectively.
China’s customs agency re-
ported no North Korean coal
imports from March to July.
The latest coal shipments
preceded a Sept. 5 deadline
for U.N. members to imple-
ment the August sanctions.
Beijing said on Aug. 14 it
would comply with those sanc-
tions while continuing to pro-
cess imports of banned goods
until the deadline if those
shipments had already
reached Chinese territory.
A spokesman for China’s
customs agency said Tuesday’s
postponements, restrictions
and disruptions, they come as
China prepares for its twice-a-
decade Congress, which will
determine new leaders for the
next five years. Similar re-
strictions, including limits on
online content, were put in
place before the 18th Party
Congress in 2012 that brought
President Xi to power—but
China watchers say this time it
is more widespread.
In recent days, mainland us-
ers of Facebook Inc.’s Whats-
App service have experienced
disruptions, ranging from be-
ing unable to send photos and
conduct video chats to com-
plete blockages. A person fa-
miliar with previous outages
said service usually has re-
turned within one to two days.
A spokeswoman from the
Cyberspace Administration of
China declined to say if the
agency had blocked WhatsApp,
although outages by users
were widely reported.
Facebook doesn’t say how
HK JP KO ML SI
WORLD NEWS
ace,” Mr. Trump said.
The president said North
Korea’s missile program threat-
ens “the entire world with un-
thinkable loss of life.” He said
the U.S. is “totally prepared”
for a military option, which he
said would be “totally devas-
tating” for North Korea.
The president said his tough
words for North Korean dicta-
tor Kim Jong Un were a reply
to the North Korean leader’s
own words.
As both sides hurled threats
and insults at one another, the
space available for a diplomatic
resolution seemed to shrink.
On Saturday, the U.S. flew
warplanes near North Korea in
what U.S. officials said was in-
ternational airspace but far-
ther north than such aircraft
had flown in some time.
Pyongyang threatened to shoot
down American jets the next
time they flew there, regard-
less of whether they are in in-
ternational airspace.
data reflect shipments that
reached China before the
deadline.
Asked if the August ship-
ments meant China was com-
promising on its commitment
to international sanctions, a
Foreign Ministry spokesman
said Beijing has “always
strictly implemented” U.N. res-
olutions.
U.N. sanctions approved in
November had capped Pyong-
yang’s annual coal exports at
about $400 million or 7.5 mil-
lion metric tons, whichever is
lower. China imported 4.3 mil-
lion tons of North Korean coal
valued at $358.8 million from
January to August, according
to Chinese customs data.
“In theory, China hasn’t vio-
lated the U.N. sanctions,” said
Zhao Tong, a nuclear-policy
specialist at the Carnegie-
Tsinghua Center for Global
Policy in Beijing. He said the
many WhatsApp users it has in
China, where the WeChat mes-
saging app by Tencent Hold-
ings Ltd. is the dominant ser-
vice with nearly 1 billion users.
Unlike WeChat, WhatsApp
Students in Shandong province use scarfs to make a flag of the Communist Party of China.
IN UK FR MN PR
Still, Defense Secretary Jim
Mattis said the effort to avert
conflict on the Korean Penin-
sula remains a diplomatic one.
“We maintain the capability
to deter North Korea’s most
dangerous threats but also to
back up our diplomats in a
manner that keeps this as long
as possible in the diplomatic
realm,” he told reporters at In-
dia’s Ministry of Defense on
Tuesday. “That is our goal, to
solve this diplomatically, and I
believe President Trump has
been very clear on this issue.”
Mr. Mattis, in New Delhi for
talks with his counterpart and
Prime Minister Narendra Modi,
didn’t respond specifically to a
question about how the rheto-
ric might be increasing the
chances for miscalculation on
either side and whether there
was a risk of miscalculation.
—Michael C. Bender in
Washington and Gordon
Lubold in New Delhi
contributed to this article.
latest coal shipment will still
anger the U.S., which has
urged harsher economic curbs
on North Korea.
As North Korea’s chief trad-
ing partner and energy sup-
plier, China plays a central role
in international efforts to dis-
suade Pyongyang from its ag-
gressive pursuit of nuclear-
tipped long-range missiles.
Beijing has resisted Washing-
ton’s calls to support measures
it fears could cause its neigh-
bor’s collapse—an event that
could send a flood of refugees
into northern China and upset
the regional balance of power.
Mr. Zhao said Beijing may
have allowed the August coal
shipments to get ahead of fur-
ther economic sanctions that
it fears could destabilize the
Pyongyang government.
“China may have decided to
back away from an aggressive
enforcement of sanctions, and
uses end-to-end encryption
that hides the content of the
message from anyone except
the sender and recipient, mak-
ing it difficult for the govern-
ment to intercept messages.
THE WALL STREET JOURNAL.
U.S. Bombers Face
Increasing Threat
From Pyongyang
BY ALASTAIR GALE
North Korea can better tar-
get nearby U.S. aircraft with a
new missile system than in
years past, military analysts
said, raising the stakes of any
confrontation after Pyongyang
warned it might shoot down
American bombers in interna-
tional airspace.
As tensions escalate on the
peninsula, North Korea has
bolstered defenses on its east
coast, closest to where U.S.
bombers and fighters flew over
the weekend, South Korea’s
spy agency said on Tuesday.
Whether North Korea will
follow through on its threat to
attack U.S. warplanes is hard
to determine, though such ac-
tion has historical precedent.
Under dictator Kim Jong
Un, an acceleration of the na-
tion’s missile program has in-
cluded a new weapon to target
planes—a significant upgrade
to North Korea’s aging Soviet-
North Korea has fired
at U.S. aircraft in a
series of incidents
over many decades.
era missile batteries. And the
risks involved in any conflict
are much greater now that
North Korea can potentially
deploy nuclear weapons.
In May, Mr. Kim oversaw a
test of a surface-to-air missile
system known as KN-06 that
was first seen in a military pa-
rade in 2010. Following the
test, Mr. Kim ordered mass pro-
duction of the system, state
media reported.
The KN-06 has a range of
around 90 miles, security
scholars estimate. The U.S.
said the bombers in the week-
end flight remained inside in-
ternational airspace, which be-
gins around 12 nautical miles
from the North Korean coast.
“It’s easily the most modern
system they have,” said Bruce
Under the Wire
China suspended North Korean coal imports earlier this year, but
imported $138 million worth in August, before a total U.N. ban on
such shipments took effect.
$175 million
150
125
100
75
50
25
0
2016
Source: China's General Administration of Customs
apply a degree of pressure
closer to the minimum require-
ments stipulated by U.N. reso-
lutions,” he said, noting that
Beijing’s February suspension
of its North Korean coal trade
came while import totals re-
mained well below the U.N. cap.
“That is what makes
WhatsApp a pain for institu-
tions in the world that think
end-to-end encryption is anti-
thetical to their law-enforce-
ment goals,” said Nadim Ko-
REUTERS
Bechtol, a professor of political
science at Angelo State Univer-
sity in Texas, who has studied
the North Korean military.
North Korea has fired at U.S.
aircraft before. In 1981, North
Korea launched a missile at a
U.S. reconnaissance plane fly-
ing near the inter-Korean bor-
der, but missed. A U.S. helicop-
ter was downed in 1994, killing
one pilot, after it crossed into
North Korean airspace.
Pyongyang has also used its
aircraft to target U.S. planes. In
1969, a North Korean MiG 21
shot down an unescorted U.S.
military surveillance aircraft
over international waters, kill-
ing its entire crew of 30 sailors
and one Marine. In 2003, four
North Korean MiGs came
within 50 feet of a U.S. recon-
naissance plane in international
airspace over the Sea of Japan.
On Tuesday, South Korea’s
spy agency said North Korea
has relocated warplanes to its
east coast as part of a ramp-up
of military hardware, raising the
prospect that Pyongyang may
send aircraft in response to fu-
ture U.S. military flights.
While North Korea’s old MiG
fighters are no match for mod-
ern U.S. warplanes, military ex-
perts said they could still
threaten nonstealth bombers.
The U.S. frequently holds
military flyovers during peri-
ods of escalated tension on the
Korean Peninsula. Generally,
they stay south of the inter-Ko-
rean border.
A Pentagon spokesman said
on Monday that the U.S. main-
tains the right to “fly, sail and
operate” in international wa-
ters and airspace.
In one possible sign of cau-
tion on the North Korean side,
South Korea’s spy agency also
said on Tuesday that Pyongyang
has told its military not to take
any action without first report-
ing up the chain of command.
The agency’s assessment
was given to lawmakers in a
closed-door briefing. Details of
the remarks were confirmed
by an aide to ruling-party
member Kim Byung-kee, who
attended the event.
0
2017
THE WALL STREET JOURNAL.
“As international sanctions
against North Korea trend to-
ward a comprehensive trade
ban, China was likely worried
about the impact on the North
Korean economy,” he said.
—Xiao Xiao
contributed to this article.
beissi, founder of Paris-based
cryptography consulting com-
pany Symbolic Software.
Several travel companies
that arrange trips to Tibet
said they received directives
that foreigners can’t visit Oct.
18 through Oct. 28.
A customer service repre-
sentative at Explore Tibet,
which runs private and group
tours, said only travelers from
Hong Kong or the mainland
would be permitted to travel
during that time. The Tibet
Tourism Bureau couldn't be
reached for comment.
Meanwhile, the Ironman tri-
athlon series that was acquired
by Dalian Wanda Group two
years ago said on its website
that its races in Chongqing on
Sept. 24 and in Hefei on Oct. 22
had both been postponed. The
website didn’t give a reason,
and Wanda didn’t immediately
return calls for comment.
—Xiao Xiao
and Eva Dou in Beijing
contributed to this article.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Trump Again Criticizes Attorney General
President knocks Jeff
Sessions and says his
feud with NFL players
‘has really taken off’
BY REBECCA BALLHAUS
WASHINGTON—President
Donald Trump again indicated
he was dissatisfied with his at-
torney general, following com-
ments over the summer in
which he criticized Jeff Ses-
sions and suggested he might
fire him.
The president also said at a
White House dinner Monday
that he had the upper hand in
his dispute with the National
Football League, according to
guests at the gathering.
Mr. Trump expressed frus-
tration with Mr. Sessions’
March decision to recuse him-
self from the Justice Depart-
ment’s probe of Russian elec-
tion meddling, according to
three people at the dinner for
conservative leaders.
“You could feel it dripping
with venom,” one dinner guest
said of Mr. Trump’s comment.
“It was something else.”
Others in the room charac-
terized the conversation
about Mr. Sessions as less
tense. “He’s candid, which
shows respect for his guests,”
said American Conservative
Union Chairman Matt
Schlapp.
“It was friends getting to-
gether and dishing on politics
and the state of the country,”
said Mr. Schlapp, whose wife,
Mercedes Schlapp, works in
the White House communica-
tions office. He called the din-
ner “cordial.”
Mr. Trump was answering
a guest’s question on a policy
technicality when his mood
appeared to shift, the people
Adviser Denies Ties With Russia
BY BYRON TAU
WA S H I N G T O N — R o g e r
Stone, a longtime friend and ad-
viser to Donald Trump, told
members of the House Intelli-
gence Committee on Tuesday
that he had no involvement in
what U.S. officials have called a
Russian campaign of interfer-
ence and disinformation during
the 2016 presidential election.
Speaking to reporters after
his closed-door interview on
Capitol Hill, Mr. Stone said “a
substantial amount” of the
questioning focused on his in-
teractions with entities and or-
ganizations that helped dissem-
inate stolen emails aimed at
embarrassing the Democratic
Party, including the website
WikiLeaks and a hacker entity
called Guccifer 2.0.
In a lengthy statement re-
leased before his appearance,
Mr. Stone disclosed his corre-
spondence with Guccifer 2.0
and detailed his interactions
with Julian Assange, the
founder of WikiLeaks. During
the 2016 campaign, both enti-
ties published stolen emails
from Democratic Party organi-
zations, an element of what
U.S. intelligence agencies have
described as a Russian effort to
Yellen Defends Fed’s Rate-Increase Strategy
BY DAVID HARRISON
CLEVELAND—Federal Re-
serve Chairwoman Janet Yel-
len defended on Tuesday the
central bank’s projection for a
gradual path of rate increases
over the next few years, de-
spite the past few months of
unexpectedly low inflation.
Ms. Yellen said the Fed
could slow the pace of rate in-
creases if low inflation per-
sists and officials conclude it
reflects long-term changes in
the economy rather than tran-
sitory factors.
The chairwoman and her
colleagues have been grap-
pling with subdued inflation
despite a growing economy
and vigorous labor market.
That has presented officials
with a dilemma. From one
point of view, the weak infla-
tion readings could be a sign
that interest rates should re-
main lower than anticipated.
Yet keeping interest rates low
for too long could cause infla-
tion to grow too rapidly and
inflate new financial bubbles.
Inflation, under the Fed’s
Mr. Sessions speaks about free speech Tuesday at Georgetown University Law Center in Washington.
Twitter Habit Gets
Low Approval Rating
From Both Parties
President Donald Trump
stirred up controversy in recent
days by saying that profes-
sional football players who de-
cline to stand for the national
anthem should be fired. Amid
the debate over his remarks,
polling suggests that most
Americans have a negative
view of how he went about
making them: via Twitter.
Members of both major po-
litical parties take a dim view of
Mr. Trump’s use of tweets to
talk to Americans, a Wall Street
said. He advised the guest to
reach out to the attorney gen-
eral on the issue, then said of
Mr. Sessions: “He recused
tip the race toward Mr. Trump.
Mr. Stone, a veteran Repub-
lican operative who worked for
Mr. Trump briefly as a consul-
tant and continues to serve as
an informal adviser and confi-
dant, said in prepared remarks
that he resented “any allega-
tion that I would collude with
the oppressive Russian state to
affect the outcome of the 2016
presidential election.”
Emerging from the meeting
after several hours of testi-
mony, Mr. Stone called the
House investigation into Rus-
sian activity during the 2016
election an “entirely political
exercise.” But he had some
praise for committee members
he faced: “The entire exchange
was completely professional.”
In his 47-page written state-
ment, Mr. Stone described his
interactions with Guccifer 2.0
as “limited” and “benign,” and
he released screenshots of
what appeared to be messages
exchanged privately on Twitter.
They show about a dozen mes-
sages Mr. Stone received from
Guccifer 2.0 last August and
September, as well as three
messages he sent in response.
The material shows the con-
versation began after Mr.
Stone wrote an article for the
Fed chief Janet Yellen has been grappling with subdued inflation.
preferred measure, has under-
shot the central bank’s 2% tar-
get for much of the past five
years. Although Ms. Yellen
said she expects inflation to
move up gradually to the tar-
get, she acknowledged the un-
certainty surrounding that
prediction. The Fed has raised
rates four times since 2015
and has penciled in one more
rate increase this year.
“How should policy be for-
Wednesday, September 27, 2017 | A5
U.S. NEWS
fronts, one person said. probe for the Justice Depart-
Other guests at the dinner ment’s appointment of Robert
included Penny Nance, the Mueller as special counsel in
chief executive of antiabortion charge of the investigation,
group Concerned Women for which the president has called
America; Ralph Reed, chair- a “witch hunt.” Mr. Mueller’s
man of the Faith & Freedom appointment came days after
Coalition; and Leonard Leo, Mr. Trump fired Federal Bu-
executive vice president of the reau of Investigation Director
Federalist Society, who ad- James Comey, who had been
vised Mr. Trump earlier this heading the probe.
year on selecting a Supreme In July, Mr. Trump criti-
Court justice. cized his attorney general’s
Mr. Trump also said his leadership of the FBI, called
feud with the NFL, some of him “beleaguered” and de-
ANDRTEW HARRER/BLOOMBERG NEWS
whose players he has spent clined to say in an interview
recent days attacking for with The Wall Street Journal
kneeling in protest during the whether he would fire him. He
national anthem, had “really also told the New York Times
taken off,” according to a per- he never would have hired Mr.
son present for the conversa- Sessions had he known he
tion. Mr. Trump’s comments would recuse himself from the
in recent days have sparked Russia probe.
protests that are unprece- At a campaign rally Friday
dented in NFL history. for Sen. Luther Strange of Al-
“He was happy. He feels abama, Mr. Trump had kinder
like he’s clearly winning that words for his attorney gen-
exchange,” the person said. eral, saying he was “doing a
Journal/NBC News poll this during the national anthem. A White House spokes- good job.”
month found. Overall, 66% of Mr. Trump uses Twitter for woman said: “We aren’t going “We have him very busy
Americans in the survey disap- fairly benign matters, such as to comment about rumors on watching the borders,” Mr.
proved of the president’s “use welcoming foreign leaders to private conversations.” A Jus- Trump said of Mr. Sessions,
of Twitter to communicate with the White House, as well as to tice Department spokes- whose Senate seat Mr.
the American people,’’ compared comment on contentious issues woman declined to comment. Strange is seeking to fill per-
with 23% who approved. such as North Korea. In March, Mr. Sessions, a manently after being ap-
Democrats and independents Among the president’s former U.S. senator from Ala- pointed when Mr. Sessions be-
overwhelmingly disapproved of base—Republicans who consider bama and early supporter of came attorney general.
Mr. Trump’s Twitter use as a themselves to be supporters of Mr. Trump’s presidential ef- During Monday’s dinner, Mr.
communications tool. Among Mr. Trump more than support- fort, said he would remove Trump also discussed health-
Republicans, a plurality of 46% ers of the party itself—the poll himself from involvement in care and tax overhauls. He said
disapproved, with 36% approving. found that half approved of his any Justice Department inves- the White House was still
The survey tested opinion use of Twitter as a communica- tigation related to the 2016 “very serious” about passing
of Mr. Trump’s use of tweets tions tool, while just over a presidential race, following the Republicans’ latest effort
as a mode of communication, quarter disapproved. Among Re- the disclosure that he had had to repeal the Affordable Care
not of Twitter itself or the publicans who say they support conversations with the Rus- Act, although the legislation
views he expresses on the so- the party more than the presi- sian ambassador while advis- suffered a likely death blow
cial media platform, such as his dent, about half disapproved, ing the Trump campaign. earlier in the day when Sen.
criticism of athletes who kneel while about one-third approved. In addition, Justice Depart- Susan Collins’s declared oppo-
in protest rather than stand —Dante Chinni ment regulations required him sition left it without enough
to recuse himself from any in- votes to pass.
vestigations involving politi- Mr. Trump also called Sen.
himself on Russia, which he was ineffective at his job. “He cal campaigns to which he John McCain (R., Ariz.), who
should never have done.” basically told everyone in the served as an adviser. said last week he wouldn’t
Mr. Trump, a Republican, room to go tell Sessions to get Mr. Trump has blamed Mr. support the health-care bill,
also suggested Mr. Sessions moving” on various policy Sessions’ recusal from the “disgraceful.”
right-wing website Breitbart circulate an article he had
News in which he argued that written for the Hill newspaper
Guccifer 2.0 wasn’t a Russian with the title, “How the elec-
asset but instead acted inde- tion can be rigged against
J. SCOTT APPLEWHITE/ASSOCIATED PRESS
pendently. The U.S. intelli- Donald Trump.”
gence community later as- The screenshots show Gucci-
sessed the material released fer 2.0 attempted several other
by Guccifer 2.0 had been pil- times to draw Mr. Stone into
fered by Russia. conversation. They appear to
Guccifer 2.0 has denied it show Mr. Stone didn’t answer
was working on behalf of Mos- until Sept. 9, 2016, when he re-
cow, claiming Romanian na- plied to a query asking his opin-
tionality. ion about stolen material con-
A few days after writing the cerning Democratic voter
article, Mr. Stone sent a pri- turnout. Mr. Stone said he
vate Twitter message to the found the material “pretty stan- Roger Stone arriving to appear before a House committee Tuesday.
Guccifer 2.0 account, saying he dard,” according to his release.
was “delighted” the entity was Guccifer 2.0’s interactions was in possession of some and leaking information from
back on Twitter, according to with U.S. political operatives Democratic emails and was party committees and political
the material he released. Twit- have long been of interest to preparing to publish them. strategists; and disseminating
ter had briefly suspended the congressional investigators. A The U.S. intelligence agen- through social media and
account. Republican political operative cies have concluded the mate- other outlets negative stories
“F— the state and their in Florida received 2.5 giga- rial was likely stolen by Russian about Mrs. Clinton and posi-
MSM lackeys,” Mr. Stone added, bytes of Democratic Party doc- military intelligence, but many tive ones about the Mr. Trump,
using a common disparaging uments from Guccifer 2.0 and of Mr. Trump’s allies and asso- the report said.
term for the mainstream media. posted some of those on a blog ciates, including Mr. Stone, have The Kremlin has denied
According to Mr. Stone’s re- called HelloFLA.com, The Wall questioned that conclusion. meddling in the election, and
lease, Guccifer 2.0 responded: Street Journal reported in May. According to a January re- Mr. Trump has said he didn’t
“thank u for writing back, and Concerning WikiLeaks, Mr. port from the U.S. intelligence collude with Russia.
thank u for an article about Stone said his contact with Mr. community, the highest levels The U.S. intelligence report
me!!!” The entity then asked if Assange came through an “in- of the Russian government specifically identified Guccifer
Mr. Stone found anything in- termediary” he described as a were involved in directing the 2.0 as a channel used by Rus-
teresting in the documents journalist, whom he refused to electoral interference to boost sian military intelligence to
posted—a question to which name. Mr. Stone said he Mr. Trump at the expense of distribute damaging informa-
Mr. Stone’s release suggests he reached out to the unnamed Mrs. Clinton. Russia’s tactics tion about Democrats.
didn’t reply. Several days later, journalist after Mr. Assange included efforts to hack state —Rebecca Ballhaus
Mr. Stone asked the account to announced publicly that he election systems; infiltrating contributed to this article.
Confidence Among
U.S. Consumers
hold sector is.”
Confidence in Texas and
Florida, two states that were
increase at the Fed’s December Decreases Slightly the most severely impacted by
meeting. Investors pegged a hurricanes Harvey and Irma,
77.9% chance of a rate move fell considerably, but the mood
Tuesday afternoon, up from Confidence among U.S. con- in the rest of the country re-
72.8% a day ago, according to sumers fell only slightly in Sep- mained fairly positive, said
CME Group data. tember after two major hurri- Lynn Franco, the Conference
How to respond to weak canes struck the country. Board’s director of economic
price growth has been a burn- U.S. consumer confidence indicators.
ANDREW HARRER/BLOOMBERG NEWS
ing topic among Fed officials. fell to an index level of 119.8 in “Despite the slight downtick
Some, such as New York Fed September from a revised in confidence, consumers’ as-
President William Dudley, ar- 120.4 in August, the Confer- sessment of current conditions
gue that the strong economy ence Board said Tuesday. Econ- remains quite favorable and
will soon push up inflation, omists surveyed by The Wall their expectations for the short-
suggesting a need to continue Street Journal had expected a term suggest the economy will
raising interest rates. September reading of 119.3. continue expanding at its cur-
“I expect inflation will rise The latest reading is below rent pace,” Ms. Franco said.
and stabilize around [the March’s level of 124.9—the The view of the current la-
Fed’s] 2% objective over the highest level since December bor market also weakened
medium term,” he said Mon- 2000—but still above readings slightly, with fewer respon-
day. “In response, the Federal recorded this spring, suggest- dents saying jobs are “plenti-
mulated in the face of such Reserve will likely continue to ing confidence remains high ful,” though fewer also re-
significant uncertainties? In remove monetary policy ac- nationally. ported jobs are “hard to get.”
my view, it strengthens the commodation gradually.” The small drop in confi- Consumers’ future outlook
case for a gradual pace of ad- Others, such as Charles Ev- dence “is likely to be reversed for the labor market was more
justments,” Ms. Yellen told a ans of the Chicago Fed, see no in the coming months,” said favorable than in August. The
National Association for Busi- indication that inflation is Michael Pearce, economist at share expecting more jobs in
ness Economics conference in about to turn higher. Capital Economics. “The fact the months ahead increased to
Cleveland. “It would be impru- Speaking in Michigan on that confidence is still close to 19.5% from 16.8%. That
dent to keep monetary policy Monday, Mr. Evans said he be- a 16-year high even after Char- matches with the unemploy-
on hold until inflation is back lieved weaker inflation re- lottesville, the nuclear threat ment rate trending near a 16-
to 2%.” flected structural changes in from North Korea, and two year low and job openings at a
Ms. Yellen’s speech boosted the economy, rather than a major hurricanes underlines record high.
market expectations of a rate temporary phenomenon. just how resilient the house- —Eric Morath
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A6 | Wednesday, September 27, 2017
McConnell Stature Bruised
By ACA, Alabama Runoff
BY JANET HOOK
AND KRISTINA PETERSON
Senate Majority Leader
Mitch McConnell’s political
clout and reputation as a mas-
ter legislative strategist are
being put to the test this
week, and the Kentucky Re-
publican is at risk of failing on
both fronts.
His second attempt to pass
legislation to repeal and re-
place the Affordable Care Act
lacks enough support to pass
and prospects for reviving the
bill before a Sept. 30 legisla-
tive deadline are dim.
Meanwhile, Mr. McCon-
nell’s favored candidate to
succeed Attorney General Jeff
Sessions in an Alabama GOP
runoff election on Tuesday is
lagging in the polls. The ma-
jority leader has thrown the
full weight of his prestige and
political organization behind
Sen. Luther Strange, who was
temporarily appointed to fill
the Sessions seat and is run-
ning behind evangelical for-
mer state judge Roy Moore.
To make matters worse for
the 32-year Senate veteran,
President Donald Trump—who
is also backing Mr. Strange
and the health-care bill—is
poised to cast blame on Mr.
McConnell for either loss.
Mr. Trump has repeatedly
criticized Mr. McConnell and
other congressional Republi-
cans for failing to pass the
health legislation that was the
party’s signature campaign
promise for the past four elec-
tion cycles.
Mr. Trump, who claims Mr.
Strange’s chances have im-
proved since his endorsement,
argues that the senator has
been dragged down by associ-
ation with Mr. McConnell.
“Mitch is not, polling-wise,
TAXES
Continued from Page One
man Kevin Brady (R., Texas),
Senate Finance Chairman Or-
rin Hatch (R., Utah), Treasury
Secretary Steven Mnuchin,
White House economic policy
chief Gary Cohn, Senate Ma-
jority Leader Mitch McConnell
(R., Ky.) and House Speaker
Paul Ryan (R., Wis.).
It will be difficult to tell
who gets the tax cuts under
the plan until lawmakers re-
lease a complete tax bill and
independent analysts examine
how the distribution of the tax
burden differs from today’s
tax system.
That full bill isn’t likely to
appear until after Congress
adopts a budget resolution.
The budget allows for the Sen-
ate to pass the tax bill on a
U.S. Plans to Lower NCAA
Refugee Admissions
BY LAURA MECKLER
AND FELICIA SCHWARTZ
WASHINGTON—President
Donald Trump plans to set the
cap for refugee admissions for
the coming fiscal year at
45,000, the lowest in decades,
according to people familiar
with the discussions.
The number won’t be offi-
cially settled until after senior
administration officials con-
sult with members of Con-
gress, as required by law, on
Wednesday. A decision is due
by Saturday, before the next
fiscal year begins.
The State Department had
initially pushed for a cap of at
least 50,000 but later revised
its recommendation to the
president to 45,000. The De-
partment of Homeland Secu-
rity recommended a figure
closer to 40,000.
Mr. Trump has already low-
ered the cap once. A year ago,
former President Barack
Obama said the U.S. would ac-
cept as many as 110,000 refu-
gees in 2017, responding to
pressure from a mounting
Syrian refugee crisis. After
taking office, Mr. Trump low-
ered the 2017 cap to 50,000
and sought to suspend refugee
admissions altogether for 120
days in order to review vet-
ting procedures.
Since 1980, the president
has had sole authority to set
Views of McConnell
Senate Majority Leader Mitch McConnell has seen his favorability
drop, even among his own Republican Party members.
Sen. McConnell favorablilty
among all adults
Negative: 41%
40%
30
20
10
Positive: 11%
0 -10
2007 2010 2015
Source: WSJ/NBC News telephone polls, most recent of 900
adults conducted Sept. 14–18; margin of error: +/–3.27 pct. pts.
the most popular guy in this
country,” Mr. Trump said
Monday in an Alabama radio
interview. “They like to label
him as Mitch’s best friend,
and he’s not. He hardly even
knows him. He will be fighting
Mitch.”
Mr. McConnell’s office de-
clined to comment.
Indeed, after months of be-
ing berated by Mr. Trump for
Congress’s failure to enact his
agenda, Mr. McConnell has seen
his unpopularity soar, even
among Republicans. The latest
Wall Street Journal/NBC News
poll found that 41% have a neg-
ative view of Mr. McConnell, in-
cluding 25% of Republicans.
He has been a target of at-
tack by Steve Bannon, a for-
mer Trump aide who has
backed Mr. Moore in the Ala-
bama contest since leaving
the White House.
Speaking at a get-out-the
vote rally for Mr. Moore in Al-
abama on Monday night, Mr.
Bannon fired up Moore sup-
simple majority vote without
Democratic support.
In a meeting at the White
House on Tuesday with Repub-
lican and Democratic members
of the House Ways and Means
Committee, Mr. Trump said
his administration’s tax pro-
posal to be unveiled on
Wednesday would be “a very,
very powerful document.”
He said the proposal would
call for simplifying the tax
code, calling the current ver-
sion “too complicated.”
Mr. Trump also said the
proposal would cut taxes for
the middle class and for cor-
porations.
“If we do this, we will cre-
ate millions of new jobs for
our people,” he said. “We will
become a competitive nation
again.”
Taxes on high-income
households are one of the core
issues that divide the parties
annual refugee admission
caps, and until this year, the
cap had never been set below
67,000. In the early 1990s, it
topped 110,000 every year, but
more recently, the cap hov-
ered between 70,000 and
80,000.
A White House spokesman
declined to comment on this
year’s deliberations.
This year’s process has
been a contentious one, with
White House domestic policy
adviser Stephen Miller, who
advocates a hard-line view on
immigration, inserting himself
into a discussion that is typi-
cally dominated by foreign
policy concerns. Early in the
process, he recommended a
cap as low as 15,000, people
familiar with the process said.
Agency officials opposed
such a dramatic reduction.
Still, the Homeland Security
Department pushed to lower
refugee admissions below Mr.
Trump’s 50,000 figure for this
fiscal year.
The refugee admission pro-
gram remains on hold now,
though some are admitted
through waivers or exceptions
mandated by the Supreme
Court. Officials said the ad-
ministration doesn’t plan to
keep the suspension in place
after the 120-day period ends
next month.
—Shane Harris
contributed to this article.
U.S. NEWS
Net favorablilty*
among those within own party
Feb. 2017 Sept. 2017
50
40 Pelosi (D)
+23 pct. pts.
30 Schumer (D)
+10
20 Ryan (R)
-26
10
0
McConnell (R)
-23
*Net favorability is positive minus
negative feelings for person
THE WALL STREET JOURNAL.
porters by lambasting Mr.
McConnell and his Washing-
ton allies. “Mitch McConnell
and this permanent political
class is the most corrupt, in-
competent group of individu-
als in this country,” he said.
“You get to show them that
this populist, nationalist, con-
servative movement is on the
rise.”
Shrugging off the fact that
Mr. Trump had endorsed Mr.
Strange, Mr. Bannon said, “A
vote for Judge Roy Moore is a
vote for Donald J. Trump.”
Mr. McConnell has strongly
fought for Mr. Strange
throughout the special-elec-
tion contest that began in an
August GOP primary that win-
nowed the field. The winner
of the Moore-Strange runoff
will face Democrat Doug
Jones, a former U.S. Attorney,
in a Dec. 12 general election.
The Senate Leadership
Fund, a super PAC associated
with Mr. McConnell, has spent
a record $9 million in support
President Donald Trump with members of the House Ways and
Means Committee at the White House on Tuesday.
and most Democrats have in-
sisted that the wealthiest
Americans not got a tax cut. If
Mr. Trump wants Democratic
votes, that could require sig-
Continued from Page One
The complaints provide a
window into the “dark under-
belly of college basketball,”
acting U.S. attorney Joon H.
Kim said in a news conference
in New York. College basket-
ball has long been troubled by
rumors of corruption and
whispers that underground in-
termediaries have gained out-
size power to steer high-
school recruits to colleges in
exchange for kickbacks from
agents, financial advisers and
powerful sneaker companies.
The NCAA, the governing
body of college athletics, has
the broad jurisdiction to in-
vestigate such alleged pay-for-
play activity, which is illegal
under its rules of amateurism.
But the fraud allegations un-
sealed Tuesday are unlike any
violations the NCAA has ever
uncovered.
Mr. Kim said that the asso-
ciation wasn’t aware of the in-
vestigation, which he called
“covert,” until Tuesday, as ar-
rests were taking place. A
spokeswoman for the NCAA
didn’t respond to requests to
comment.
William F. Sweeney, the as-
sistant director in charge of
the FBI’s New York field of-
fice, said the investigation—
which according to the com-
plaints began in 2015—was
ongoing.
Auburn has suspended Mr.
Person without pay, school
President Steven Leath said on
Twitter. “We are committed to
THE WALL STREET JOURNAL.
of Mr. Strange. That big finan-
cial and political commitment
JOSHUA ROBERTS/REUTERS
made it easy for Mr. Strange’s
opponents to portray him as a
creature of the McConnell
party establishment—a politi-
cal albatross Mr. Strange tried
to shed at Friday’s rally with
Mr. Trump when he said he
would “stand up” to Mr. ‘We plan to move forward with our next priority,’ Mr. McConnell says.
McConnell.
HEALTH
The stakes for Mr. McCon- concerns with the sustainabil-
nell in Alabama reach far be- ity of the market,” she said.
yond the potential for an em- Health-care companies also
barrassing loss. A victory by feared chaos if the Graham-
Mr. Moore—if he goes on to Continued from Page One Cassidy legislation passed, as
win the general election in control over health care to the states would have had to rush
December—will send to the states. It also would have to come up with their own
Senate a new member who brought significant cuts to massive health-coverage re-
has made a campaign commit- Medicaid. vamps before 2020.
ment to fight the establish- The Congressional Budget The bill also didn’t include
ment when he gets to Wash- Office released a partial analy- one of health insurers’ top pri-
ington. sis of the latest GOP bill late orities, the repeal of an ACA
“Roy Moore will make Rand Monday, concluding the num- tax on health plans, while it
Paul look like a member in ber of people with comprehen- got rid of the ACA’s coverage
good standing of the Republi- sive health coverage would be mandate, which insurers argue
can caucus,”’ said Chris Krue- “reduced by millions.” The is important in prodding
ger, a political analyst at Co- CBO also estimated that by healthier people to sign up for
wen & Co., referring to the 2026, the bill would cut about coverage.
Kentucky Republican who of- $1 trillion in Medicaid spend- “It’s time to move on,” said
ten parts ways with the GOP ing, resulting in millions of Sister Carol Keehan, president
leadership. “He’s going to be a people being left out of the and chief executive of the
flame-throwing problem child program. Catholic Health Association of
of the first order. With Moore The failure of the Senate the United States, during a call
there, you basically have a Republicans’ bill relieves held Tuesday by the American
one-vote margin.” health companies, but hospi- Hospital Association and other
Mr. Moore wears that de- tals and insurers will quickly industry groups opposed to
scription like a badge of pivot back to worries about the bill. The Catholic group in-
honor in a campaign that has implementation of the existing cludes more than 2,000 Catho-
tried to turn the election law as the crucial open-enroll- lic hospitals and other health-
into a referendum on Mr. ment season looms. care providers.
McConnell. “It’s a momentary bit of a Health-care industry offi-
“We understand that Lu- relief,” said Gabriela Saenz, a cials remain wary of future at-
ther Strange is desperate to vice president at Christus tempts by Republicans to pass
win this election for Mitch Health, a hospital system ACA-repeal bills, and of the
McConnell,” said Bill Ar- based in Irving, Texas, that likelihood that health care will
mistead, former chairman of opposed the bill. remain an area of sharp parti-
the Alabama Republican Party But hospitals remain wor- san debate.
and chairman of the Moore ried about the stability of the Some Democrats are now
campaign. “This is all about law’s marketplaces because backing the idea of a govern-
Mitch McConnell. Mitch rising premiums or an exodus ment health-care program for
McConnell is desperate to of insurers could leave more all people, long supported by
have a senator that he can patients uninsured, she said. Sen. Bernie Sanders of Ver-
control.” “We absolutely do have mont.
lower tax rate on businesses
that pay taxes on their own-
ers’ individual returns and the
repeal of the estate and alter-
said.
Republicans do want to
eliminate some deductions
that largely benefit high-in-
native minimum taxes. come households, namely the
Rep. Richard Neal of Massa- break for state and local taxes.
chusetts, the top Democrat on
the Ways and Means Commit-
tee said Mr. Trump told the
lawmakers Tuesday that the
Mr. Trump said the
rich wouldn’t benefit and that plan would cut taxes
Mr. Mnuchin said they were
for the middle class
ALEX WONG/GETTY IMAGES
willing to negotiate on the top
rate. and for corporations.
The White House and the
Treasury Department didn’t
respond to requests to com-
ment. Rep. Pat Meehan (R., Pa.),
Mr. Neal said he favored who was at the White House
keeping the top rate at 39.6% meeting, said the gathering
and wanted to see distribution was important and that there
tables, or estimates of how was common ground on look-
nificant changes in the GOP each income group would fare ing for a better tax system.
plan because it has many in the plan. But, he said, “We have to be
pieces that benefit high-in- “Concentrated wealth in realistic about what kind of bi-
come households, including a America is an issue that we’ve partisanship we can ultimately
lower corporate tax rate, a got to be concerned with,” he expect.”
playing by the rules, and
that’s what we expect from
our coaches,” he said in a se-
ries of messages on Twitter.
didn’t respond to requests to
comment.
In another alleged scheme,
James “Jim” Gatto, director of
of any misconduct and will
fully cooperate with authori-
ties to understand more.” Adi-
das isn’t charged with wrong-
Among the schools impli-
cated are the country’s top
college-basketball teams with
basketball global sports mar-
keting at Adidas, worked with
another sports-marketing ex-
doing.
Mr. Gatto is accused of get-
ting $100,000 to a player so
expectations to compete for ecutive to funnel hundreds of that he would attend a univer-
the national championship ev- thousands of dollars from Adi- sity that has an outfitting con-
ery season. das to high-school players tract with Adidas.
In one alleged scheme, and/or their families in ex- The description in the com-
Emanuel Richardson, an assis- change for the players’ com- plaint of the university—a
tant coach at the University mitment to play for NCAA public research institution in
of Arizona, Anthony Bland, a schools sponsored by the com- Kentucky with 22,640 stu-
coach at the University of pany. dents—matches the University
Southern California, and La- “Today, we became aware of Louisville.
mont Evans, an associate that federal investigators ar- A representative for the
coach at Oklahoma State Uni- rested an Adidas employee,” school said it was unaware of
versity, were charged with ac- an Adidas spokeswoman said. the allegations.
cepting cash bribes from a “We are learning more about —Sara Germano
sports agent and a financial the situation. We’re unaware contributed to this article.
adviser.
Mr. Evans, until March,
coached at the University of
South Carolina, and the
charges stem from his work
there.
A spokesman for Oklahoma
State said the school was sur-
prised by the allegations. “We
are cooperating fully with offi-
cials,” he said. “Let it be clear
we take very seriously the
high standards of conduct ex-
pected in our athletic depart-
ment. We will not tolerate any
deviation from those stan-
dards.”
ICON SPORTSWIRE/ASSOCIATED PRESS
In a statement, USC athletic
director Lynn Swann said he
was “shocked” by the develop-
ments. “We will cooperate
fully with the investigation
and will assist authorities as
needed, and if these allega-
tions are true, will take the
needed actions,” he said.
Representatives from Ari-
zona and South Carolina The corruption probe names Chuck Person, now an Auburn coach.
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
GERALD HERBERT/ASSOCIATED PRESS
A man walked through his hurricane-destroyed home in Aibonito, Puerto Rico, on Monday.
Justice Department
Seeks to Combat
Disaster-Aid Fraud
The Justice Department is
directing U.S. attorney’s offices
around the country to improve
efforts to target fraud in the di-
saster-relief efforts that arose
after a series of devastating
hurricanes pummeled the U.S.
Deputy Attorney General
Rod Rosenstein, in a memo
dated Sept. 22, directed each
office to log and track all disas-
ter-fraud cases relating to ma-
jor national disasters. He asked
the offices to direct all com-
plaints to an office within the
Justice Department’s criminal
division called the National Cen-
Colleges Move to Close
Gender Gap in Science
BY MELISSA KORN
As more high-paying jobs
require a degree and expertise
in things like computer coding
or mechanical engineering,
colleges and universities are
racing to fill a pronounced
void in qualified candidates.
One place they are making ex-
tra effort is among women.
The Labor Department esti-
mates there will be 510,900
engineering job openings in
the U.S. by 2024, and an addi-
tional 426,900 software devel-
opment and programming jobs
will be available, all requiring
at least a bachelor’s degree.
While many schools have
grown enrollment in science,
technology, engineering and
mathematics, or STEM, fields
in recent years, experts say the
programs’ output falls short of
where the country needs to be
in coming years. Administra-
tors say one way to help
bridge the gap will be to bring
more women into the field.
Women make up more than
half of students on U.S. college
campuses, but receive only
about two of every 10 degrees
in fields such as computer sci-
ence and engineering, accord-
ing to federal data.
Colleges have launched ag-
gressive marketing campaigns,
tweaked curricula and made ef-
forts to promote real-world ap-
plications of science and tech-
nical fields in a bid to bring
more women into the fields.
“Getting more women into
STEM is about growing the
pie,” said Matt Sigelman, chief
executive of Burning Glass
Technologies, a labor-market
data firm. Figures on how long
job postings in those fields stay
up “suggest that employers are
desperate for talent. Full stop.”
According to a Wall Street
Journal analysis of U.S. De-
partment of Education data,
compiled by labor market ana-
lytics firm Emsi, women as a
BORDER WALL
Building of Prototypes
Begins in San Diego
Construction began Tuesday
on prototypes for a new barrier
along the U.S. border with Mex-
ico—the most visible step so far
toward President Donald
Trump’s long-promised border
wall.
Construction crews and heavy
equipment moved into the
stretch of border near the Otay
ter for Disaster Fraud. The
memo also required each U.S.
attorney’s office to designate a
point person for the issue.
The Center for Disaster
Fraud has already received
“hundreds of complaints” of al-
leged fraud in the wake of re-
cent hurricanes, Mr. Rosenstein
wrote. “This issue warrants a
coordinated, nationwide re-
sponse,” the memo added.
The directive comes as
Puerto Rico and states from
Texas to Florida begin rebuild-
ing homes, businesses and in-
frastructure in the wake of Hur-
ricanes Maria, Irma and Harvey,
which left an estimated tens of
billions of dollars in damage in
their wake. Billions of dollars in
federal aid is expected to help
in that effort.
More Women in STEM Programs
The share of STEM degrees awarded to women has increased at a
number of the nation's largest producers of such graduates.
Biggest increase in percentage of women in STEM
10%
N. Dakota State
Florida State
Case Western
George Wash.
Lehigh
Carnegie Mellon
Kansas State
Kent State
R.I.T.
Drexel
Change in percentage of women in largest STEM programs
10%
Texas A&M
Illinois
Purdue
Michigan
Penn State
Georgia Tech
N.C. State
Florida
Texas
UC-San Diego
Note: Percentages are based on number of graduates in bachelor’s, master’s and PhD programs.
Included schools had at least 1,000 graduates in STEM fields in the 2015-16 academic year.
Source: Emsi compilation of data from Department of Education
share of STEM degree recipi-
ents at the bachelor’s level and
above increased at nine of the
10 largest such programs be-
tween 2012 and 2016. Six now
award at least one-third of
those degrees to women.
The needle is moving fast in
some corners of the country.
At Florida State University,
42% of the nearly 2,200
STEM graduates from bache-
lor’s, master’s and doctoral
programs in 2016 were women,
up from 33% in 2012.
“Those gaps aren’t going to
Mesa border crossing, with Ti-
juana visible over the border in
the distance.
A total of eight prototypes
will be built along the border
here over the next month—four
from concrete and four made
from alternate materials, accord-
ing to federal border officials.
On Tuesday morning, U.S.
Border Patrol officials blocked
off the road near the construc-
tion zone, allowing only workers
and law enforcement into the
area. Homeland Security officials
U.S. NEWS
A catastrophe-modeling firm
on Monday estimated that Hur-
ricane Maria, which has left
much of Puerto Rico without
power and homes and infra-
structure destroyed, caused an
estimated $40 billion to $85 bil-
lion in insured losses.
Harvey, which made landfall
in Texas in August, caused
more than $10 billion in insured
losses, the firm AIR Worldwide
said. That doesn’t include losses
borne by the National Flood In-
surance Program.
Hurricane Irma, which
passed through the Caribbean
before reaching Florida earlier
this month, caused $32 billion
to $50 billion in insured losses
in the U.S. and the Caribbean,
AIR said.
—Aruna Viswanatha
2012
20 30 40
20 30 40
THE WALL STREET JOURNAL.
close themselves without some
commitment, some effort and
some resources,” said Kevin
Miller, a senior researcher at the
American Association of Uni-
versity Women, which advocates
for gender equity in education.
Worcester Polytechnic Insti-
tute in Massachusetts has used
a number of strategies to en-
roll and retain women—this
fall 43% of first-year students
are women, a 10-percentage-
point jump from last year and
an increase up nearly 20
points in the past decade.
U.S. WATCH
previously warned the wall con-
struction could draw protests.
The San Diego County Board
of Supervisors on Tuesday
passed an emergency ordinance
allowing authorities to ban items
that could be used as weapons
from protest areas—including
bats and pepper spray. Other cit-
ies have made similar moves af-
ter violent protests. However,
there were no demonstrations
near the construction site as of
Tuesday afternoon.
—Alicia A. Caldwell
Quick Funds Sought
To Help Puerto Rico
BY SIOBHAN HUGHES
SAN JUAN—U.S. lawmakers,
worried about the devastation
to Puerto Rico after a powerful
hurricane struck the island,
are pushing for quick approval
of relief funding while bracing
for a battle about financing a
new power system in the U.S.
territory.
Heading to Puerto Rico to
assess the damage, Sen. Marco
Rubio (R., Fla.) ran through
the island’s immediate chal-
lenges, including power out-
ages stemming in part from
widespread damage to trans-
mission lines and a dearth of
trucks, other equipment and
personnel to begin the restora-
tion process.
“These are U.S. citizens and
they deserve the same re-
sponse as Americans on the
mainland,” he told reporters
on a flight to the territory.
The cost won’t be cheap.
U.S. officials say that Puerto
Rico faces a longer road to re-
covery than any other part of
the U.S. hit by a hurricane,
partly because the island na-
tion needs to ship and fly in
equipment and personnel that
can simply be trucked in to
states like Florida and Texas.
Puerto Rico already faced fi-
nancial hardship following a
yearslong recession and popu-
lation drain, along with an ag-
ing electricity system.
Gov. Ricardo Rosselló has
warned that the territory’s 3.4
million residents are facing a
2016
50
Michelle Santacreu, a Girls Who Code alumna, won a $20,000 college scholarship.
School Drops SATs,
50 Adds Scholarships
As part of a strategy to at-
tract more women, Worcester
Polytechnic Institute in Massa-
chusetts stopped requiring ap-
plicants to submit SAT and
other standardized test scores
a decade ago, on the belief that
success on such tests skews
against women and underrepre-
sented minorities.
This year the school also
funneled more money into fi-
nancial aid for women and mi-
norities, reallocating funds it
Overall, the share of STEM
graduates from WPI rose to
31% from 27% between 2012
and 2016. “There’s no doubt
that we’ve been putting our
shoulder into this challenge
for a long time,” said President
Laurie Leshin.
While small institutions like
Harvey Mudd College also
posted hard-fought gains, ex-
perts say a substantial shift
in the gender balance
of STEM workers will require
action by the bigger institu-
tions that mint thousands of
LAW ENFORCEMENT
Homicide Rate Rises
For a Second Year
Violent crime and homicide
rates rose in the U.S. in 2016
for the second consecutive
year, driven in part by a jump in
murders in large cities, accord-
ing to national data released
Monday by the Federal Bureau
of Investigation.
The Trump administration
seized on the report as fur-
Wednesday, September 27, 2017 | A7
humanitarian crisis. “What
Puerto Rico is experiencing af-
ter Hurricane Maria is an un-
precedented disaster. The dev-
astation is vast,” he said
Monday. “Given Puerto Rico’s
fragile economic recovery
prior to the storms, we ask the
Trump administration and U.S.
Congress to take swift action.”
Puerto Rico’s resident com-
missioner, Republican Jen-
niffer González-Colón, met
with House Speaker Paul Ryan
(R., Wis.) early Tuesday morn-
ing to outline the area’s dire
situation. Mr. Ryan, who on
Monday said in a statement
that “the stories and images
coming out of Puerto Rico are
devastating,” has told her that
he plans to move a relief pack-
age in October, she said in an
interview.
“The damage is extensive,”
she said. “We were thrown
back 30, 40 years.”
Ms. González-Colón said
that she is waiting for an offi-
cial assessment, but that the
damage from Hurricane Irma
was estimated on a prelimi-
nary basis at $1 billion, and
that Hurricane Maria “hit us
like 20 to 30 times worse.”
Based on that formula, she
floated a price tag of $20 bil-
lion.
In the backdrop is a terri-
tory that is in near shambles.
On Monday, the usually bus-
tling area of Old San Juan was
nearly empty. Cars were lined
up for gas, tree limbs lay ev-
erywhere, and roofs and walls
historically spent meeting fami-
lies’ appeals for merit awards,
and launched a program giving
five, $20,000-a-year scholar-
ships to Girls Who Code alum-
nae.
While the number of
women applying to WPI has
doubled in the past decade,
they still made up just 25% of
all applicants for the current
first-year class, a sign that the
pipeline problems begin early in
the K-12 educational system.
WPI and other schools are
reaching out more aggressively
to young women with summer
robotics programs and coding
camps to engage them in the
graduates a year.
Columbia University has
been hosting more events for
aspiring women engineers, al-
lowing teens to engage with
faculty and college students,
which helps solidify their in-
terest in the field and lets
them see the community of
women engineers already on
campus. That school churned
out 3,722 STEM graduates in
the 2015-16 academic year,
42% of whom were women.
This fall, 49% of Colum-
bia’s incoming first-year un-
ther evidence that the U.S. is
experiencing a surge in deadly
violence.
Attorney General Jeff Ses-
sions last week previewed the
FBI’s data release in a speech,
saying it would show that “vio-
lent crime rose again. Murder
rose. Aggravated assault, rape,
and robbery rose.”
Last year, violent crime rose
nationally by 4.1%, to 386 per
100,000 residents, and murders
increased by 8.6%, the FBI re-
ported.
were blown out of buildings.
At the airport, passengers try-
ing to leave remained stranded
as planes carrying relief sup-
plies competed with commer-
cial air travel. Relief workers
with no place to stay were
starting to be housed on ships.
The Coast Guard, wary of the
potential for chaos, had de-
ployed agents with fatigues
and large guns to escort trucks
replenishing automated-teller
machines with cash.
Lawmakers are starting to
prepare for the fight over the
state power company known
as Prepa, which is caught up in
both questions of short-term
relief and long-term need.
Without power, the island
can’t manage even basic func-
tions like directing big ships
into ports. But to set up a reli-
able power system will require
expensive modernization, a
subject is likely to spur strong
feelings among conservative
Republicans worried about fi-
nancial mismanagement.
“If the system is going to be
rebuilt, I’m sure that many of
my colleagues will want to
know that it is going to be re-
built in a responsible way,” Mr.
Rubio said. But he also said, “I
don’t think Puerto Rico should
be punished for it. And ulti-
mately the United States is not
going to allow a territory to be
functioning as if it were in the
early 20th century or late 19th
century without access to
power because of things that
have happened in the past.”
MATTHEW HEALEY FOR THE WALL STREET JOURNAL
field—and to recruit prospects
to their schools specifically.
Michelle Santacreu, a first-
year student from Tampa, par-
ticipated in her high school’s
Girls Who Code club and
landed one of WPI’s new schol-
arships for program alumnae.
WPI’s project-based learning
style, which uses teamwork to
address real-world problems,
appealed to her.
“It really creates this envi-
ronment of support,” said Ms.
Santacreu, 18 years old. “I
didn’t want to go to a school
where everyone was pitted
against each other.”
—Melissa Korn
dergraduate engineering stu-
dents are women, a record.
Meanwhile, Carnegie Mellon
has tweaked the message it
sends to prospective students in
a bid to broaden its appeal, em-
phasizing that engineering stu-
dents can minor or double major
in fields such as French litera-
ture, as about 30% of required
coursework can be taken outside
engineering, math and science.
Forty-three percent of new engi-
neering undergraduates at the
college are women this fall, up
from 32% in 2013.
Chicago in particular faced an
increase in deadly violence, re-
cording 287 more murders last
year than in 2015. Houston, Den-
ver and San Antonio also saw
increases in their violent crime
and homicide rates.
Suburban areas recorded a
slight rise in violent crime and
murder rates, while rural areas
tallied an increase in violent
crime but held steady in terms
of homicides, according to the
FBI’s Uniform Crime Report.
—Del Quentin Wilber
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A8 | Wednesday, September 27, 2017 THE WALL STREET JOURNAL.

IN DEPTH

ORANGE It travels from grove to grove

Continued from Page One
“We’re a bunch of scientists
sitting on 12,000 acres and a gi-
ant orange juice plant we need
to use,” said Tim Eyrich, vice
president of research and com-
mercialization at Southern Gar-
dens Citrus, the company de-
veloping the engineered fruit.
“If this collapses, all your or-
ange juice comes from Brazil.”
Greening—which also hurts
grapefruit, limes, lemons and
other citrus—has cut Florida’s
output in half over the past
decade, according to the U.S.
Department of Agriculture.
Revenue and jobs in the citrus
sector are each down by about
a third in the past three years.
The state’s industry notched
revenue of $9 billion in 2016.
The cut in production of
Florida oranges—95% of which
are used for juice—has helped
drive the beverage’s price at
the grocery store up more
than 50% since 2004, just be-
fore the disease was found in
the state, according to mea-
surement firm Nielsen.
Making matters worse, Hur-
ricane Irma this month hit a
direct blow on Florida’s citrus
groves, knocking 50% of devel-
oping oranges off trees across
the state, according to the
University of Florida Institute
of Food and Agricultural Sci-
with little more than a light
breeze and is undeterred by
pesticides that can’t eradicate
it entirely. It spreads the Can-
didatus Liberibacter asiaticus
bacteria as it sucks sap from
the plants.
Some growers blame trees
shipped to the U.S. from Asia
for bringing in the bug. A se-
ries of hurricanes in 2004
helped spread the disease
throughout Florida.
Since 2009, the USDA has
invested more than $400 mil-
lion to study resistant plants,
pesticides and other chemicals
to attack the disease.
The technology Southern
Gardens is using, developed by
Texas A&M University, inserts
a gene that is a part of the im-
mune system of spinach into
the genetic structure of an or-
ange. The modified cells grown
in a lab eventually shoot out
roots and are planted in soil
and develop into trees. The
project is among Florida’s
most promising efforts for a
cure, even though the trees are
still five years away from pro-
ducing fruit.
‘God only made one
type of orange. We
don’t have a magic
tree.’
impractical for juice fruit or
unsuccessful.
“It’s just a race against the
clock,” Mr. Rogers said. “We
need to get these trees to
growers that are still in the
business.”
Within the industry and
among consumers, there are
questions about the use of ge-
netically modified foods, which
are widely found in grain
crops such as corn and soy-
beans but are less common in
fruit. With consumers moving
away from the products, there
is a risk that food companies
won’t be willing to buy geneti-
cally modified juice, no matter
how successful the science.
“God only made one type of
orange,” said David Crews, a
small orange grower in Lake
Wales, Fla. “We don’t have a
magic tree.”
Southern Gardens said reg-
ulators require its experimen-
tal trees be tested in real-life
conditions to ensure that the
crops aren’t harmful to the en-
vironment, and that officials
from the USDA’s Animal and
Plant Health Inspection Ser-
vice regularly visit.
Brazil has stepped up or-
ange production, threatening
to deliver the final blow to the
U.S. industry. Brazil’s larger
groves and different practices
have helped control the spread
of greening. Psyllids, the dis-
ease-carrying insects, are at-
tracted to new shoots, which

SCOTT MCINTYRE FOR THE WALL STREET JOURNAL (2)

ences. Trees with roots al-
ready weakened by greening
were sitting in 4 feet of water
in some of Florida’s southern
areas earlier this month.
During the storm, nurser-
ies quarantined to keep out
the disease lost roofs, and
scientific laboratories work-
ing on anti-greening projects
lost power, potentially com-
promising research years in
the making.
Southern Gardens, based in
Clewiston, Fla., is one of the
largest producers of orange
juice in the U.S., supplying juice
to nearly every major brand
and private label. It said that its
engineered groves didn’t suffer
hurricane damage but that its
other groves around the state
lost large amounts of fruit.
California oranges, which
are mostly grown for eating,
haven’t been widely affected
by greening, and noncitrus
crops aren’t affected.
The disease’s carrier is the
Asian citrus psyllid, a non-na-
tive insect so tiny it can be
mistaken for a speck of pollen.
Sour Market
Florida's orange juice industry—decimated by a pernicious disease and recently clobbered by Hurricane Irma—has been suffering, pushing
prices higher for consumers and providing an opening for Brazil to become more dominant.
Florida orange production
250 million boxes*
200
150
100
50
0 0
1920s ’30s ’40s ’50s
Note: Production data are for growing seasons ending Sept. 30 the year shown *One box is roughly 90 pounds of fruit
Sources: U.S. Department of Agriculture (production); Nielsen (retail price)
The company is also experi-
menting with adding a spinach
gene to a harmless virus natu-
rally living inside the
“phloem”—the vascular system
of the tree—without affecting
the genes of the tree itself.
It’s a yearslong process. Sci-
entists wait for psyllids to
come to the grove naturally to
infect the trees, and then see if
they are resistant to greening.
“All it takes is one hurricane
and you’re back to square one,”
said Michael Rogers, director
of the Citrus Research and Ed-
ucation Center at the Univer-
sity of Florida Institute of Food
and Agricultural Sciences.
Other gene therapies scien-
tists are researching, including
attempting to turn off the cit-
rus genes that aid the disease,
aren’t as far along as Southern
Gardens’ engineered fruit proj-
ect, he said. Ideas such as
testing penicillin in oranges,
heating trees to kill the bacte-
ria, and growing citrus under
protective screening have been
Greening found in Florida
Severe Severe
freezes freezes
’60s ’70s ’80s ’90s 2000s ’10s
sprout more frequently in
Florida than in Brazil because
trees are grown in warmer,
more humid areas.
The USDA estimates that
Brazil’s total output of orange
juice will rise 55% this year
from last year, with exports
rising 28%. Brazil’s production
lead over the U.S. has doubled
since around 2003.
Juice labels that once
boasted 100% Florida juice
have been altered to read
100% juice. The majority of
concentrated orange juice is
already imported.
In Frostproof, Fla., Phillip
Rucks, owner of Phillip Rucks
Citrus Nursery, drove past an
emaciated grove in one of
Florida’s largest citrus areas.
It was July and fruit was just
starting to develop on trees.
“We call this bad neighbor
syndrome,” Mr. Rucks said.
The grove, abandoned to
greening, sat directly across
the street from a neighbor still
attempting to maintain trees.
Rucks is the largest citrus
nursery in the U.S., with
U.S. retail price for orange juice
$8 a gallon
2017
(est.):
68.7M 6 1.5
4 1.0
2 0.5
2010
Healthy orange trees in a grove at Southern Gardens Citrus, top, and blackened fruit in an abandoned
grove near Labelle, Fla., above. Disease is said to have cut Florida’s output in half over the past decade.
850,000 young budlings and marked laboratory is filled
rootstock. The high-tech com- with a refrigerator full of
pound is designed to keep cloned tissue samples.
trees quarantined, with Mr. Rucks tests different
growth taking place com- varieties and different grow-
pletely under cover. ing methods to find plants re-
Inspectors visit regularly to sistant to greening.
check for the presence of psyl- “Early on there was hope
lids. Visitors coming in the that the research would lead
building are sprayed down to a silver bullet,” said Adam
with an antibacterial agent, Putnam, Florida’s commis-
and the entire compound is sioner of agriculture. “Now
surrounded by giant trees de- the hope is there will be incre-
signed to block the wind from mental solutions. Expectations
transporting insects. An un- are more realistic now.”
Brant Schirard, a citrus
grower along Florida’s eastern
belt, said growers are doing
everything they can to diver-
sify, with farmers moving into
peaches, blueberries, hops and
Orange juice production pineapples, among other
crops. Approximately 130,000
acres of citrus have been
2.0 million metric tons
abandoned across the state,
according to the USDA.
Brazil An added factor is shifting
tastes. Americans are drinking
48% less orange juice than they
were in 2005, according to Niel-
sen, as fewer people sit down to
breakfast and more people try
U.S. to avoid sugar, or are tempted
by more exotic beverages.
Southern Gardens has been
0 fighting greening since 2005,
when the disease first reached
2001 ’05 ’10 ’15 its groves, which at that time
amounted to 15,000 acres. The
THE WALL STREET JOURNAL. company’s president, Dan Cas-
per, said that it has planted
about 750,000 new trees in the
past four years alone to replace
diseased ones, and that it is
spending millions on new tree
plantings, grove research and
citrus greening research.
“I’ve been working on plant
diseases since 1981,” said Mike
Irey, director of research at
Southern Gardens. “It’s the
most miserable disease I’ve
ever worked with.”
The bacteria causing the
disease is “fastidious,” mean-
ing scientists haven’t been
able to figure out what nutri-
ents it needs to grow it in a
petri dish. That makes it
nearly impossible to research
remedies in a laboratory set-
ting. Each time scientists want
to try a new treatment, they
need to test it on an actual
tree, wait for it to produce
fruit, then see if it becomes in-
fected with the disease.
In the past, healthy trees
produced fruit for an average of
20 to 30 years or longer. These
days they must be replanted, at
best, in 12 to 15 years.
“We’re putting $54 in each
tree by the time we pick the
first fruit off the tree, and that
crop won’t give you back $54,”
said Jim Snively, vice president
of groves at the firm. “You’ll
get $9 back the first year. And
then the clock starts ticking.”

LEGION Vallee were members. Shirley

Continued from Page One
for hospices and cemeteries.
He waved the booklet in frus-
tration. “You realize your ad-
vertisers are branding you?” he
said. “Welcome to the Ameri-
can Legion—prepare to die.”
The organization also has a
demographic problem. World
War II and Korea vets are in-
deed dying at a rapid clip,
with the Vietnam generation
next in line. Despite constant
war since the Sept. 11 attacks,
the country’s veteran popula-
tion is expected to fall to 13.6
million in two decades, from
20 million today, according to
the Department of Veterans
Affairs.
The Hollywood post, which
opened in 1929, has in its new
incarnation managed to pros-
per and attract vets for whom
hip isn’t necessarily a prelude
to replacement.
“I never thought in a mil-
lion years that I’d be so into
this,” says Second Vice Com-
mander Jennifer Campbell, 35,
a former Army truck driver
turned personal trainer. “I’m
as surprised as anybody.”
Down the road from the Hol-
Temple was an honorary colo-
nel, and photos of her curls
stand out in the Post museum
amid the machine guns, a dog-
tag stamping machine and an
Adolf Hitler pin cushion. (Suf-
fice it to say he’s bent over.)
In recent decades the Post
business model provided am-
ple money for good works,
from Boys State to patriotic
oratory contests to projects to
help veterans navigate the VA.
The legionnaires rent their
parking lot during events at
the Hollywood Bowl. Movie
and TV producers film at the
Post; a young Jim Kirk lost a
fight in the Art Deco bar in
the 2009 movie “Star Trek.”
But there was little effort to
make the Post a social center
for new vets.
“We appreciate the genera-
tion that came before us,” says
Ms. Campbell. “But we don’t
want to hang out with 80-
year-old men all night.”
To join, vets previously had
to show up in person when the
Post was open, find their way
past the locked side gate and
pay the $33.50 annual fee with
a check. “The only way to
communicate with the office
in 2011 other than phone was
with a fax—it was like 1986 in
500, partly out of concern
that, if more joined, there
would neither be enough park-
ing nor enough food at the
twice-monthly free dinners.
In 2014, Mr. Rivero and
seven other members—mostly
post-9/11 vets—met secretly at
a Burbank steak house to de-
vise a plan to take control of
Post 43 and make it more fun.
They drew up a party ticket
and challenged the old guard
in elections for leadership po-
sitions. “We thought we’d be
run out of town,” recalls Mr.
Rivero, who produces trailers
for “American Horror Story,” a
show on FX Networks, which
shares common ownership
with The Wall Street Journal.
It turned out the old guard
was no match for the high-
tech electoral prowess of the
young guns, who used email
and text messages to round up
votes. Mr. Rivero softened his
own image by putting a photo
of himself with his mother on
a campaign flier.
The cabaret room went si-
lent when it was announced
that three Future 43 candi-
dates had won spots on the
executive committee, enough
to form a ruling junta with
some sympathetic old timers.
Subsequent elections se-
cured the Future 43 party a
majority of seats, with post-
Sept. 11 vets now holding the
posts of commander, first vice
commander and second vice
commander.
Their first move was to set
JON ENDOW
a goal of doubling the rolls to
1,000 by 2019, parking be
damned. Suddenly, the bar—a
classic speakeasy—opened
more than one night a week.
There was karaoke, comedy
and live music. Members
formed a shooting club, a mo-
torcycle club, a running club.
They held barbecues on the
plaza in front of the building,
where passing vets could see
signs of life and inquire about
membership.
In January, the new man-
agement put up a website al-
lowing vets to join by clicking
and paying dues by credit
card. So far this year, more
than 260 have signed up, com-
pared with 19 inducted in 2011.
The new-generation leaders
try to show respect for the old
ways. Mr. Weldon still wraps
up the monthly business meet-
ing with the words, “Let us
close with Irving Berlin’s ‘God
Bless America.’ ”
It is, old timers admit, the
way things have always worked
at Post 43. “The Vietnam vets,
much as we wanted to make
changes, were dragged down
by the WWII vets, who were
dragged down by the WWI
vets,” recalls Mr. Shaner. At
one point, the WWII vets—who
sometimes treated the Vietnam

lywood Bowl, Post 43 has long there,” says Mr. Rivero, a Navy vets with you-lost-your-war
ties to the entertainment indus- lieutenant commander who scorn—refused to disclose the
try. Clark Gable, Charlton Hes- served in Afghanistan. full membership roster to the
ton, Ronald Reagan and Rudy Membership was limited to Members of American Legion Post 43 in Hollywood, Calif. Movie and TV producers film there. Vietnam vets, he says.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. Wednesday, September 27, 2017 | A9

LIFE&ARTS
WORK & FAMILY | By Sue Shellenbarger

How to Land a ‘Stretch’ Job

Good leaders recognize untapped potential and steer employees to new challenges
SMART LEADERS have a knack
for spotting hidden potential in
their employees and suggesting
jobs to draw it out.
Pushing people into jobs they
don’t feel qualified for can be a
hard sell. It can be just as difficult,
however, for employees to sit back
and allow the invisible hand of
management chart their careers.
DowDuPont Inc. Chief Financial
Officer Howard Ungerleider wants
to advance employees who collab-
orate with colleagues in different
departments and look beyond their
own jobs toward improving the
company’s overall results. Several
years ago Beth Nicholas stood out
when he visited the chemical gi-
ant’s Shanghai operations, where
she was an accounting director, he
says. He watched her give presen-
tations and talked shop with her
over dinner.
In 2014, Mr. Ungerleider advo-
cated for Ms. Nicholas’s promotion
to global finance director for
Dow’s agricultural-products unit,
where she would report to him.
The unit posted record earnings
last year. He recently offered Ms.
Nicholas another stretch assign-
ment, to become the company’s
chief tax officer, effective in Janu-
ary. The job will require especially
strong collaboration skills as the
company, formed by the merger
last month of Dow Chemical Co.
and DuPont Co., proceeds with a
plan to break up into three compa-
nies.
Ms. Nicholas lacks credentials
common among corporate tax
chiefs—a master’s or law degree in
taxation. Mr. Ungerleider says
DowDuPont has other executives
with deep expertise in tax law.
What he sees in Ms. Nicholas is

the ability to collaborate with
them on a company-wide goal of
improving global tax strategy.
When Mr. Ungerleider offered
her the promotion, Ms. Nicholas
says, “it was one of those mo-
ments where you pause and the
tummy turns a little bit.” After
taking about a week to think it
over, she said yes. “You should feel
uncomfortable when you take a
new job,” she says, “because the
opportunity to grow is so vast.”
Spotting untapped potential is
especially important in advancing
women, who tend not to apply for
jobs they aren’t already highly
qualified to do. Executive coach
Joel Garfinkle of Oakland, Calif.,
also sees this tendency in “the in-
trovert who may be intimidated by
the extroverts around him or her,
the talented but shy person who is
afraid of self-promotion, or the
person of a different race or cul-
ture who has been taught not to
put himself forward.”
Bosses also need to reassure
employees: “I care about you, I’ll
support you with mentoring and
coaching, and there’s an exciting
path forward if you take the
stretch assignments and succeed,”
says Suzanne Bates, a Wellesley,
Mass., leadership and executive
coach whose firm, Bates Communi-
cations, has worked with execu-
tives at Dow.
“You’ve got to be kidding me!”
was Jennifer Roseman’s response
when her boss Dan Frank, chief
executive of Three Wire Systems,
a Falls Church, Va., government
contractor, suggested three years
ago that she take over financial
management of the unit where
she was supervising client-service
staff. Ms. Roseman trained as a
social worker and had no interest
in adding profit-and-loss account-
ing to her role at the unit, VetAd-
visor, she says. She reluctantly
agreed.
Mr. Frank, a former Navy pilot,
says he trusted Ms. Roseman to
learn the job and excel at it. “What
I saw in her was somebody who
loved the mission” of providing
housing, health, career and other
support to veterans, he says.
After a few months of managing
VetAdvisor’s revenue and expenses
from her Ebensburg, Pa., office,
she realized meeting targets gives
Spotting untapped
potential is especially
important in advancing
women.
her a sense of teamwork and
pride. She has since been pro-
moted to executive vice president.
Looking back, Ms. Roseman says,
“Dan had a knack for understand-
ing what I could do—for seeing
things in me that I didn’t neces-
sarily see.”
People who want to work for a
leader who nurtures talent should
look for executives who spend
time with employees and take an
interest in them, asking questions
and welcoming honest answers,
says Jessica Bigazzi Foster, a se-
nior partner at the management-
psychology consulting firm RHR
International in Chicago.
Motivating many, Ms. Foster
says, is a desire to pay it forward.
When these leaders tell stories
about their own careers, “a consis-
tent theme is that somebody took
a chance on them and helped them
make a significant leap—without
checking all the boxes.”
Catherine Zelenkofske was
thriving as a program manager at
WegoWise Inc., a Boston maker of
software for building owners,
when tech entrepreneur Laila Par-
tridge became the company’s chief
executive last year. Ms. Partridge
noticed how smoothly Ms.
JON KRAUSE
Zelenkofske worked with others.
During her performance review,
the CEO asked, “So, what do you
like doing?” Ms. Zelenkofske talked
about mentoring employees and
building customer relationships.
Ms. Zelenkofske was surprised
when Ms. Partridge offered her a
job she’d never considered, as
head of “people ops” or human re-
sources. Ms. Partridge explained
that she’d still be doing what she
enjoyed, but with all 50 of the
company’s employees rather than
a smaller team. She promised to
provide mentors, training and
guidance. Ms. Zelenkofske took the
job. In her first nine months, she
set up two programs for employ-
ees, one to improve the perfor-
mance-review process and another
to help them with career planning.
“She was a good performer on
her previous job,” Ms. Partridge
says, “but on this one she’s a
rock star.”

MY RIDE | By A.J. Baime

THE SPIRIT OF ’55 IN A RESTORED DESOTO

Scott McQueen, 71, a re-
tired owner of radio sta-
tions from Boca Raton,
Fla., on his 1955 DeSoto
Fireflite, as told to A.J.
Baime.
You could call me the
king of nostalgia. I spent
much of my career running
oldies radio stations, cele-
brating the music of my
youth. And later in life, I
put together a collection of
cars that reflect my early
years of driving.
BOB O’CONNOR FOR THE WALL STREET JOURNAL

When I was in college at

Dartmouth, I sold every- streets of Cape Cod, where my family
thing I owned to buy a has been summering since I was 10.
1965 Corvette. Now I It was the perfect beach car, and
own one of those, in those were life-defining memories.
the same color: Nas- In the late 1980s, I went looking
sau blue. In my senior for a Fireflite, and found one in
year of college, I the exact color scheme in South
bought a 1965 Pontiac Dakota. I bought it for $14,000,
Catalina. Now I own and I have always kept it at our
one of those. When I house in Cape Cod. Every summer,
first saw some success in one of the first things I would do
radio, I got a 1976 Designer when I got up here was figure out how The 1955 DeSoto Fireflite belonging to Scott McQueen in Cape Cod, Mass. The car’s back end,
Series Bill Blass Lincoln Conti- to get that car running. above left, includes a V-8 logo. A view of the steering wheel, left.
nental Mark IV. It was pretty over A few years ago, I realized that this car
the top, but that’s what I wanted at the had become pretty valuable. DeSoto was a Wayne, Ind.—to restore my DeSoto and its passions came together: the streets and
time. Now I own one of those. division of Chrysler up until model year original 291 V-8. He agreed, however long it beaches of Cape Cod, the first car I ever
The most important car to me is the 1955 1961. The Fireflite was the flagship DeSoto, would take. It took three years, and I got drove, and of course, oldies on the radio.
DeSoto. I got my driver’s license in 1963, and a brand new model for 1955. Only 775 the car back this July.
and the first car I drove was a friend’s 1955 convertibles were made. I asked a friend— Now it drives like a brand new 1955 DeS- Contact A.J. Baime at
DeSoto Fireflite, in red and white, on the Corvette specialist Ronald Garrett of Fort oto. Motoring around this summer, all of my Facebook.com/ajbaime.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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A10 | Wednesday, September 27, 2017 THE WALL STREET JOURNAL.

OPINION
REVIEW & OUTLOOK
For Venezuela’s Sake,
Cuba’s Sonic Attacks Dismantle the OAS
U
.S. Secretary of State Rex Tillerson ing-room table or a car door-handle and
told CBS’s “Face the Nation” recently poisoning pets are a few ways that Castro’s By Benjamin N. Gedan Given the stakes for the OAS and

F
Venezuela, it’s time for a new approach.
that the U.S. is thinking about closing boys have shown hospitality toward Americans
or a moment, all eyes were on the OAS members should immediately dis-
its Embassy in Havana in re- over the years. Embassy per- Organization of American States. solve the organization and replace it
sponse to mysterious acous- How to respond to sonnel engaged on human- The horrors in Venezuela had gal- with a body that assigns Caribbean
tic attacks on U.S. personnel the harm done to 21 rights issues and with dissi- vanized the world’s oldest regional members a single, collective vote. The
that have injured at least 21 dents were among the most body, and hemispheric heavyweights Caribbeans should be encouraged not to
Americans. Americans in Havana. likely targets because the re- sought solutions in its marble halls. boycott the new organization. Though
Here’s a better idea: Keep gime wanted to send a mes- Prodded by a crusading secretary gen- the Caribbean Community secretariat
the Embassy in Havana open sage, Mr. Cason told us. eral, U.S. and Latin American diplomats would cast the sole vote for its mem-
but expel from the U.S. 19 Cubans working at The sonic attacks are different because the urgently debated ways to rescue Vene- bers, Caribbean states would retain all
its embassy in Washington. Since the U.S. al- Americans didn’t know they were being zuela’s crumbling democracy. other membership privileges. The new
ready expelled two Cuban diplomats in August harmed until after the fact. One theory is that Today, it is the OAS that needs rescu- organization could also help with hurri-
ing. The organization failed to address cane relief and preparedness.
in response to the attacks, the new round of one of Cuba’s allies, such as North Korea or
the crisis in Venezuela—in the process, If this measure seems extreme, the al-
expulsions would bring the number of Castro Iran, decided to test a new assault device becoming worse than irrelevant. It is a ternative is more so: The OAS collapses,
personnel asked to leave to the same number from its embassy on the island. Another zombie forum that serves only to sap or at best, slowly fades away. That’s a
of U.S. personnel that have been medically con- theory is that a rogue wing of the regime diplomatic energy. real possibility. The White House is
firmed to have suffered injuries. wants to undermine the U.S. rapprochement. Fortunately, there is still a way to sal- poised to slash U.S. support for the OAS,
The U.S. can tell Cuba that things will return But a regime that specializes in spying on its vage a regional response to the Venezu- which makes up 60% of its budget.
to normal when Raúl Castro explains to the own people isn’t often surprised by local de- ela nightmare: Disband the OAS and re-
U.S. State Department how the Embassy em- velopments. As Mr. Cason puts it, “nothing place it with a body no longer dominated
ployees were harmed. As of now, all we know happens [in Cuba] without the government by small Caribbean countries. Tiny Caribbean states
is that the State Department believes some knowing about it.” For the past two years, Caribbean
governments, in return for Venezuelan have outsize power,
sort of sonic harassment has left them with “a On the odd chance that the attacks aren’t re-
variety of physical symptoms.” gime-approved, a one-party state that learned
assistance, have held the OAS hostage. and many are in thrall
These countries, most of which are less
That’s an understatement. The American from the Soviets certainly has the power to in- populous than Staten Island, N.Y., con- to the Caracas regime.
Foreign Service Association, a union for U.S. vestigate. Yet these incidents began in Novem- trol 14 of the organization’s 34 votes.
diplomats, said earlier this month that it has ber, the U.S. first complained in February and They have wielded their influence to
spoken with 10 of the affected and that “diagno- as recently as August they continued. Not with- thwart all attempts at defending human In another sign that U.S. patience has
ses include mild traumatic brain injury and per- standing Mr. Castro’s bafflement, his govern- rights and democratic institutions. reached its limits, the White House is
manent hearing loss, with such additional ment has done nothing about the attacks. Per- In doing so, Caribbean governments considering destabilizing economic
symptoms as loss of balance, severe headaches, haps Raúl figured he could simply get away with have paralyzed the OAS even as Presi- sanctions on Venezuela’s oil sector. Last
cognitive disruption and brain swelling.” it after he won normal relations with the U.S. dent Nicolás Maduro imprisoned rivals month, President Trump even declined
Mr. Castro says he is shocked to hear this without making any concessions. and usurped the power of the opposi- to rule out a “military option.”
tion-controlled National Assembly, and Many are already looking past the
news and claims he has no idea how it could Mr. Tillerson said “it’s a very serious issue
as Venezuelans suffered food and medi- OAS, the only regional body that in-
have happened. That would be easier to believe with respect to the harm that certain individu- cine shortages. cludes the U.S. On Aug. 8, for example,
if Cuba weren’t a police state with a long re- als have suffered.” Expelling Cuban embassy This pattern predates the Trump ad- OAS fatigue prompted Peru to host for-
cord of harassing U.S. government employees personnel will anger Cuba because it will ministration. Beginning under Presi- eign ministers to discuss Venezuela; it
on the island. weaken its espionage ability here. But the U.S. dent Obama, most Caribbean coun- did not invite U.S. Secretary of State Rex
According to retired ambassador James Ca- has a responsibility to protect its diplomats tries—from Dominica to St. Vincent Tillerson.
son, who ran the U.S. Interests Section in Ha- and a failure to respond will encourage other and the Grenadines—joined Venezuela’s Since last year, governments in this
vana from 2002 to 2005, leaving feces on a din- regimes to do the same. dwindling ideological allies to obstruct hemisphere have been celebrating the
measures addressing the crisis. Worse 15th anniversary of the OAS Inter-

An American Comeback Story

still, they championed any proposal for American Democratic Charter, which
political dialogue, no matter how far- proclaims that “the peoples of the
fetched, simply in order to filibuster Americas have a right to democracy and

A
OAS action. their governments have an obligation to
s Washington begins to debate tax re- from 49th in the Tax Foundation’s business tax There are exceptions, such as the Ba- promote and defend it.”
form in earnest, states can provide in- climate rankings. hamas, Barbados and Jamaica. But by The charter, approved in 2001 in the
structive policy lessons for better and Republicans financed the tax cuts by elimi- and large, Caribbean solidarity, and Ven- wake of democratic breakdowns in Haiti
sometimes worse—see the fis- nating most business hand- ezuelan bullying, prevailed. and Peru, is considered the greatest OAS
cal crack-ups in Connecticut How business-tax outs along with individual in- No amount of American aid bal- achievement since its birth in 1948.
and Illinois. Michigan, on the reform helped revive come-tax preferences for anced the scales. The U.S. shoveled bil- Though imperfect, it has been applied in
other hand, offers a case public pensions and jobless lions of dollars into Port-au-Prince, for Bolivia, Ecuador, Guatemala, Honduras
study in the pro-growth po- Michigan’s economy. benefits. Credits for children, example, but Haiti still voted with Ven- and Nicaragua. Mr. Maduro has clearly
tential of business tax reform. automobile donations, city in- ezuela at every turn. U.S. investments failed to satisfy its conditions and earned
Former Michigan Demo- to strengthen the Caribbean energy a suspension from the OAS.
come taxes, college tuition
sector were similarly irrelevant to Ca- Sadly, the democratic charter has be-
cratic Gov. Jennifer Granholm was a progres- and charitable contributions were axed. They ribbean leaders. come an empty threat. It could be re-
sive specialist in using the tax code to politi- also reformed state-worker pensions. Nevertheless, diplomats held out vived only by dissolving the OAS and
cally allocate capital, which depressed and After the 2012 midterm elections, Republi- hope that Caribbean governments would building an alternative organization no
distorted business investment. Between 2002 cans passed right-to-work legislation that lets eventually adopt a principled stand. longer controlled by its smallest and
and 2007, Michigan was the only state to expe- workers choose whether to join unions. In 2014 Conditions in Venezuela were deterio- least productive members—one that
rience zero economic growth. state voters approved a ballot measure backed rating quickly, and falling oil prices had would restrict Caribbean members to a
Ms. Granholm’s Republican successor, Rick by the governor to repeal the personal-property lessened the Caribbean reliance on sub- single vote. Those nations deserve noth-
Snyder, recharged growth with tax and regula- tax for small businesses and manufacturers, sidized Venezuelan crude. For the first ing more, and the suffering people of
tory reforms. While Michigan’s GDP has been which was levied on the value of machines and time in a decade, the largest countries Venezuela deserve nothing less.
expanding at roughly the national average since other tangible equipment. in the region, including Argentina and
Brazil, had begun criticizing the erosion Mr. Gedan is a former Venezuela di-
2011, it has led the Great Lakes region. Capital investment and hiring have in-
of Venezuela’s democracy. But nothing rector for the National Security Council
Michigan slipped into recession in 2003 as creased sharply. Two months after Mr. Snyder would loosen Mr. Maduro’s stranglehold and a fellow at the Woodrow Wilson In-
manufacturing contracted, which unions signed the tax reforms, job growth turned posi- on the Caribbean. ternational Center for Scholars.
blamed on China and free-trade agreements. tive. In 2011 Michigan added jobs for the first
But misguided policies were arguably bigger time in six years, and it has since led the Great
contributors to Michigan’s slump. Between Lakes region in manufacturing growth. LETTERS TO THE EDITOR
2002 and 2007, Michigan’s manufacturing Unemployment has fallen below the national
grew at a third of the rate of the Great Lakes average to 3.9% even as the labor-force partici-
region. During this period, motor-vehicle and pation rate has ticked up. The jobless rate is
Maybe the Fed’s Staffers Could Get a 2% Cut
parts manufacturing in Indiana increased five still 5% in Illinois and 5.4% in Ohio, and labor- William M. Isaac and Richard M. Ko- with perfect accuracy, persistently
times as much as in force participation has vacevich (“The Fed Should Stop Worry- low inflation raises the chances of
ing and Learn to Love Low Inflation,” falling into deflation, which the au-
Michigan. And Indi- declined in both states.
ana’s economy is
Comparative Midwest Economics Ohio and Illinois are
op-ed, Sept. 19) are correct in suggest- thors recognize as harmful.
ing the Federal Reserve should stop Even if the Fed has successfully
nearly as dependent Real average annual GDP growth in percent in the six non-right-to-work worrying about getting inflation up to avoided the deflation threat for now,
on vehicle production years before the 2008-2009 recession and six years states with larger indi- its 2% target noting, among other keeping inflation at around 2% when
after a post-recession tax reform
as Michigan’s. vidual and business tax things, that “inflation does not create the economy is growing is insurance
Democrats in Lan- All Industries 2002-2007 2011-2016 burdens. Ohio imposes greater economic growth.” against deflation in a future recession.
sing responded by a gross-receipts tax. However, there are two even The authors also cite low levels of
U.S. 2.7% 2.0% stronger economic reasons the Fed business investment over the past
raising taxes with dis- Liberals may want
pensations for politi- Michigan 0.0 1.9 to credit the auto bail- should stop worrying about inflation. eight years and point to a lack of con-
cally favored constitu- Great Lakes* out, but auto manufac- First, there is no compelling theoreti- fidence in monetary policy as a factor.
1.3 1.4 cal case for any inflation rate other A more likely cause is a lack of confi-
ents. In 2007 Demo- turing isn’t driving
than zero. The idea that the economy dence in growth. Tighter monetary
crats increased the Illinois 1.8 1.0 Michigan’s growth. Be- will do better with “moderate infla- policy would raise borrowing costs
state income tax to Manufacturing 2002-2007 2011-2016 tween 2011 and 2015 tion” is based on conjecture, not and exacerbate rather than relieve
4.35% from 3.9%. They (the last year with strong economic theory. If inflation this problem.
also enacted a new U.S. 4.4% 0.9% available disaggregated reduces output growth even a little, WILLIAM MILES
business tax with a Michigan 0.8 2.1 data), Michigan’s mo- it is very difficult to argue that the Wichita State University
4.95% tax on income, a tor-vehicle and parts best rate of inflation is something Wichita, Kan.
Great Lakes* 2.4 0.8
0.8% gross-receipts production increased other than zero. At the July 1996
tax, plus a 21.99% sur- Illinois 2.7 -0.4 by 2.3%—half as much FOMC meeting, Fed Chairman Alan I was hoping the powers to be had
charge on business tax *Illinois, Indiana, Ohio, Michigan, Wisconsin as in Indiana and the Greenspan stated his preferred rate finally decided to include energy and
liability. of inflation was zero, “if inflation is food in the inflation computations.
Source: Bureau of Economic Analysis THE WALL STREET JOURNAL U.S. During the first
properly measured.” Until these two categories, which are
The three-layered quarter of this year,
Second, it isn’t clear that the Fed- so much a part of the average citi-
business tax replaced a value-added tax, but when car sales stalled, overall manufacturing eral Open Market Committee can do zen’s life and expenditures, are in-
retained its flaws—namely, its pyramid struc- in Michigan still grew by a healthy 7.4%. The much about inflation. There are two cluded, I find discussions or data on
ture and myriad carve-outs. New credits were Mackinac Center notes that fabricated metals theories of inflation. One is that infla- inflation useless.
created for Nascar, car dealers, film-produc- and machinery are doing particularly well, but tion is the consequence of excess KEN FAULHABER
tion companies, large food retailers and ware- growth has been broad-based. Since 2011, pro- growth of the money supply. The Ocala, Fla.
houses. Businesses could even pocket fessional and business services have expanded other is that inflation is the conse-
$100,000 for contributing to zoos. Care to at an annual 3.6% and IT by 2.7%. quence of the gap between actual and Low interest rates means that aver-
sponsor a giraffe? Downtown Detroit is drawing tech firms and potential output. The problem is nei- age consumers get close to zero inter-
None of the tax gimmicks revived growth, young entrepreneurs. Unemployment in the De- ther theory works in practice. Neither est on their savings accounts. One
and Michigan’s economy plunged amid the na- troit metro area has fallen to 3.2% from 11.4% can account for the behavior of infla- might wonder if low interest rates in-
tion over at least the past 50 years. hibit inflation. If interest rates were
tional recession with unemployment hitting six years ago. Businesses in Ann Arbor and
Perhaps Messrs. Isaac and Kovacevich normal for the past 10 years, there
14.9% in June 2009. The auto bailout helped Grand Rapids say they can’t find enough work- should have said the Fed should stop would be considerably more money in
stanch job losses at GM and Chrysler while pen- ers. Perhaps they should try recruiting in Chi- trying to do what it cannot do. savings and retirement accounts to
sion reforms and a two-tier wage scale for new cago or New Haven. DAN THORNTON, PH.D. power consumer spending. This would
workers made Detroit’s auto makers more eco- The left loves to flog the political revolt Valley Park, Mo. increase demand for products, which
nomically competitive. against Kansas Gov. Sam Brownback’s tax cuts, Mr. Thornton is a retired vice presi- can require more workers and higher
By 2011 when Mr. Snyder assumed office, auto which they blame for yawning deficits. But the dent of the Federal Reserve Bank of wages that raise inflation.
manufacturing had rebounded, but other indus- bigger deficit drivers were court-mandated in- St. Louis. RON MINARIK
tries remained limp. Michigan still hadn’t posted creases in school spending and a slump in farm Mystic, Conn.
annual net job growth since 2005. Its 10.9% un- commodity prices. Republicans also erred by The Fed should certainly be vigilant
against inflation. But too-low inflation
employment rate was the fourth highest after retaining major tax breaks and repealing the in- Letters intended for publication should
also imposes costs and dangers. A be addressed to: The Editor, 1211 Avenue
California, Nevada and Rhode Island. come tax for small businesses, which caused lack of inflation means that real-wage of the Americas, New York, NY 10036,
Mr. Snyder’s first major undertaking with his some individuals to change their filing status. cuts in a recession cannot be achieved or emailed to wsj.ltrs@wsj.com. Please
Republican legislature was to replace the cum- Caveat, Senators. through keeping nominal wages con- include your city and state. All letters
bersome state business tax with a 6% corporate While progressives may continue to deny stant, and thus employers are more are subject to editing, and unpublished
tax and trim the individual rate to 4.25%. Michi- that taxes matter, Michigan’s economic come- likely to fire workers. And given that letters can be neither acknowledged nor
returned.
gan’s corporate-tax ranking jumped to seventh back shows otherwise. no central bank can target inflation
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL.
How Trump Can Improve the Iran Deal
By Mark Dubowitz
And David Albright
P
owerful voices at home
and abroad are pressuring
President Trump to give
his blessing to his prede-
cessor’s nuclear agreement
with Iran. Mr. Trump has repeatedly
pledged to renegotiate the deal,
known as the Joint Comprehensive
Plan of Action, or scrap it altogether.
There is a way for him to highlight
the agreement’s egregious deficien-
cies while showing his determination
to improve the deal or leave it. We
call this strategy “decertify, waive,
slap and fix.”
He can call out Tehran for
its noncompliance as a
prelude to renegotiating
the accord’s worst aspects.
The president should follow
through on his commitments by re-
fusing to certify the JCPOA under
the 2015 Iran Nuclear Agreement Re-
view Act. That law requires Mr.
Trump to certify every 90 days that
Iran is fully implementing the nu-
clear deal and hasn’t significantly
advanced its nuclear-weapons pro-
gram. Additionally he must certify
whether the suspension of sanctions
remains vital to U.S. national-
security interests and proportionate
to Iran’s efforts to terminate its il-
licit nuclear programs. The next 90-
day deadline is Oct. 15.
If the president continues to cer-
tify the JCPOA, inertia and the status
quo will probably capture him the
way a policy of “strategic patience”
A New, Old Path to Fiscal Union for Europe
By Marcello Minenna
E
urozone reform is back on the
agenda. French President Em-
manuel Macron has made
greater integration—especially on
fiscal matters—a cornerstone of his
agenda. And German Chancellor An-
gela Merkel may be in a position to
take more steps in that direction
now that she has won re-election.
But what can or should they do to
strengthen the currency bloc?
Some European leaders talk
about a much closer fiscal union.
The creation of a European Union
finance minister with power to dis-
tribute taxpayer money could serve
as a buffer in recessions. Such a
mechanism, the thinking goes,
would reduce the risk that a sover-
eign default in one euro country
would trigger a financial crisis
somewhere else.
This new model isn’t politically
feasible right now. But the EU al-
ready possesses an institution that,
if reformed appropriately, could
bolster the eurozone’s ability to
prevent sovereign crises.
The European Stability Mecha-
nism, or ESM, was established in
2012 to provide financial assistance
to distressed countries, and became
the primary conduit for EU financ-
ing during bailouts in Cyprus and
America’s Minimum-Wage Crowd Tries a Bait and Switch
By David Neumark
D
oes the minimum wage destroy
jobs? The debate over that
question often reduces to duel-
ing economic studies. One side cites
analyses showing that employers re-
spond to a wage floor by cutting
hours or jobs. The other side pulls
out studies saying the minimum wage
is a free lunch for workers. To really
understand what’s going on, you need
to get under the hood.
The main challenge in estimating
the effects of a rising minimum wage
is identifying a good control group.
Generally economists want to find a
set of workers who weren’t subject
to the policy change, but who other-
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on North Korea got Mr. Obama. This
will effectively guarantee the clerical
regime pathways to missile-delivered
nuclear weapons.
The JCPOA is a prelude to a Mid-
dle Eastern version of the North Ko-
rean mess. It gives the clerical re-
gime sunset-expiring restrictions,
advanced centrifuges, intercontinen-
tal ballistic missiles, the ability to
frustrate U.N. inspectors’ access to
military sites where Tehran has con-
ducted secret nuclear-weapons and
uranium-enrichment work in the
past, and tens of billions of dollars
in sanctions relief, with hundreds of
billions to follow. The Iranians will
continue to run amok in the Middle
East, using foreign cash to pay for
their imperialism.
The president should refuse to
certify for another reason: The nu-
clear deal’s fundamentally flawed ar-
chitecture—not just how it is en-
forced—makes it too dangerous to
continue. By patiently following the
deal the Islamic Republic can gain
nuclear weapons, as well as a nu-
clear-capable arsenal of missiles giv-
ing it regional hegemony and the
ability to threaten the U.S. It also
will have a powerful economy immu-
nized against sanctions pressure by
the time the JCPOA restrictions ex-
pire. Allowing this isn’t in the “vital
national security interests of the
United States.”
Decertifying doesn’t mean break-
ing the deal. That happens only if the
U.S. reimposes sanctions that have
been lifted or suspended under the
JCPOA. On Sept. 14, as required by
the JCPOA, the president again
waived nuclear-related sanctions, this
time on Iran’s central bank and oil ex-
ports. He accompanied this “waive”
with a “slap” imposing new sanctions
on companies and individuals con-
Greece. Its only other outing to date
has been a rescue of some Spanish
banks, and its total disbursements
so far have been less than €100 bil-
lion ($118.86 billion).
The ESM represents the outline
of a form of fiscal cooperation on
which the eurozone could agree. It
has a maximum lending volume of
€500 billion and subscribed capital
of €704 billion, of which €80.5 bil-
lion is already paid in; the remain-
der is callable shares.
The ESM is also able to issue su-
pernational bonds, eligible for pur-
chase under the European Central
Bank’s asset-purchase program, or
quantitative easing. Its low leverage
and explicit government backing
guarantees a low funding cost.
But the fund is currently too
small to rescue a government such
as Italy—the eurozone’s third-
largest and highly indebted econ-
omy, which the German Council of
Economic Experts in 2016 called
“too big to save.”
The ESM’s existing decision-
making process is also too ineffi-
cient for these purposes. Most of
the fund’s important decisions must
be made unanimously or, in case of
emergency, with the approval of
85% of the votes cast. Germany, the
largest shareholder with a 26.9%
stake, holds a veto.
wise experienced similar economic
trends. Still, that leaves a lot of lee-
way for choice.
Researchers who support raising
the minimum wage often advocate a
“close comparison”—using an area
geographically nearby. The classic
in this genre is the 1994 study of
the fast-food industry by David Card
and Alan Krueger. The minimum
wage had been raised in New Jersey
to $5.05 from $4.25, but had stayed
flat in Pennsylvania. The two econo-
mists surveyed fast-food restau-
rants on either side of the state bor-
der and actually found sharp job
gains in New Jersey.
I’m on record, in a 2000 paper,
as arguing that the Card-Krueger
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OPINION
Ballistic missiles next to a portrait of Iran’s supreme leader in Tehran, Sept. 25.
nected to Iran’s ballistic missile pro-
gram and recent cyberattacks. An en-
gineering company working with
Iran’s Islamic Revolutionary Guard
Corps was also targeted.
These sanctions, which are fully
compliant with the JCPOA, are a de-
cent start. But Mr. Trump must do
more. He should designate the Revo-
lutionary Guards a terrorist organi-
zation, as Congress has required he
do by Oct. 31. He should also in-
struct U.S. Treasury to blacklist
companies with Revolutionary Guard
and military ownership, which repre-
sent about 20% of the total market
capitalization of the Tehran Stock
Exchange. He should redesignate
Iran Air (which is buying planes
from Boeing and Airbus) as a terror-
ist entity for airlifting weapons and
fighters to Syria. All these measures
are consistent with the JCPOA.
We propose the president “fix”
U.S. policy by making it clear he
These limitations can be reme-
died by making the ESM an auto-
matic guarantor of all sovereign
debt in the eurozone and requiring
governments to pay their fair share
for this protection.
Governments would start by in-
cluding risk-sharing clauses in new
bond issues, under which the ESM
Leaders can use an existing
fund as the basis for the
risk-sharing the eurozone
needs in order to survive.
would guarantee that maturing
bonds in the new issue would bene-
fit from the joint liability of all ESM
member countries. Within eight to
10 years, all government bond issues
would include such clauses.
In exchange for this guarantee,
countries would be required to
compensate the ESM by making
cash contributions to ESM capital.
The formula for these contributions
would take into account the net
balance of the protection sold by a
country to other participants in the
fund and received from others.
Stable governments such as Ger-
many would pay little or no addi-
study was based on flawed data. But
other researchers using the “close
comparison” method, such as Mi-
chael Reich at Berkeley, also have
generally found that a higher mini-
mum wage doesn’t cause job losses.
Those studies have fed into rosy
policy reports saying that a $15
minimum wage would help workers
with little downside.
Critics say these studies don’t
convincingly control for shocks to
the low-skill labor market. Moreover,
comparing across state borders is in-
herently difficult. Perhaps politicians
in one state felt comfortable raising
the minimum wage because the la-
bor market there was already strong,
while the other state was struggling.
In that case, job losses from the
higher minimum wage could be
masked by the broader trend.
Alternative research strategies
do show job losses. Consider a 2014
study by Jeffrey Clemens and Mi-
chael Wither on what happened
when the federal minimum wage
was raised to $7.25 from $5.15 in the
late 2000s. Rather than crossing a
border, they compared groups of
workers within each of the affected
states. The first group included
those who were paid the very low-
est wage, on whom the new mini-
mum was “binding.” The control
group included workers earning
slightly above the minimum. The
study estimated that the new fed-
eral minimum had eliminated about
800,000 jobs.
The dispute over methodology ex-
plains the importance of this sum-
mer’s research on Seattle’s mini-
mum-wage experiment. The city’s
wage floor, previously about $9.50
Wednesday, September 27, 2017 | A11
fix the deal or explain to Americans
why a brutally repressive and ag-
gressive Iranian regime should
have a North Korean-style glide
path to dozens of nuclear weapons
and ICBMs.
The Europeans are already re-
sponding to Mr. Trump’s threats to
walk away from the deal. French
President Emmanuel Macron has
said he’s willing to consider supple-
menting the agreement to address
ATTA KENARE/AFP/GETTY IMAGES
the sunset provisions and missiles.
European leaders who want to pre-
serve the accord are now working on
a U.S.-EU consensus on ways to fix
it. They should outline conditions
under which trans-Atlantic sanctions
would be reinstated if Iran doesn’t
play ball. Otherwise, they can watch
Mr. Trump exit the deal and use the
considerable financial power of the
U.S. to force European banks and
doesn’t accept the Iran deal’s danger- companies to choose between Amer-
ous flaws. He should insist on condi- ica’s $19 trillion market and Iran’s
tions making permanent the current $400 billion one.
restrictions on Iran’s nuclear pro- Decertification is the critical first
gram and the testing of advanced step of a strategy to prevent the Is-
centrifuges and nuclear-capable bal- lamic Republic of Iran from becom-
listic missiles, as well as the buying ing a nuclear state. The famously
and transferring of conventional blunt Mr. Trump must send an un-
weaponry. He must insist on unfet- ambiguous message to Tehran’s cler-
tered access for U.N. weapons inspec- ics: His administration will not toler-
tors to Iranian military sites. ate a nuclear Iran, nor can it abide
Congress should do its part to by the agreement as it stands.
help fix the deal. Reinstating the But the strategy doesn’t depend
JCPOA sanctions after decertifica- on Iranian acquiescence. It gives the
tion would ruin the “decertify, Europeans a chance to come on
waive, slap and fix” approach. To board to fix the deal in order to
persuade Republicans, who are the save it.
most likely to vote to reinsate If they don’t, the consequences
JCPOA sanctions that have been could be severe.
waived or lifted, the administration
needs to demonstrate a comprehen- Mr. Dubowitz is chief executive of
sive strategy to fix the deal and use the Foundation for Defense of De-
all instruments of American power mocracies. Mr. Albright is president
to neutralize and roll back Iranian of the Institute for Science and Inter-
aggression. Democrats should help national Security.
tion contribution relative to today guarantees from the ESM. The ESM
since they would bear a dispropor- would then be able to help finance
tionate share of the risks. Con- that public-works spending by of-
versely, more-indebted and riskier fering guarantees for the bond is-
governments, such as Italy, would sues to pay for it.
pay more than others. An ESM 2.0 based on risk-shar-
In effect, the ESM would be sell- ing and convergence of sovereign
ing to its members a credit-default yield curves and the reboot of pub-
swap on whatever sovereign risk lic fruitful investments with a
exceeds the weighted average of all higher degree of flexibility than to-
sovereign risk in eurozone bonds. day could be the skeleton of a fu-
To preserve the ESM’s investment- ture federal budget that can rely on
grade rating, the maximum ex- the possibility of issuing superna-
pected loss cannot exceed paid-in tional bonds of the eurozone. Im-
capital. So ESM guarantees would portantly, it would be more flexible
expand to cover all sovereign debt than the German proposal to trans-
only gradually as members fulfilled form the ESM into a monetary fund
their contribution duties. while inserting clauses into new
The introduction of risk-sharing bond issues making default or rede-
clauses would restore markets’ nomination into a potential local
confidence in the resilience of the currency harder.
eurozone and fuel the convergence Europe needs to find a way to
of sovereign yield curves, reducing make its unique monetary experi-
the overall riskiness of eurozone ment—the euro—work better. The
public debt and aligning the de- important question will be whether
fault probabilities for all eurozone Europeans are prepared to move to-
members. ward an eventual break-up of the
Meanwhile, ESM reform should euro, which would be driven by
be combined with a revision to ex- stringent limits on credit issuance,
isting fiscal compact rules that ex- or whether they want to create in-
cludes fruitful public-works invest- stitutions such as a new ESM that
ments from deficit limits. The can finally allow the euro to work.
amount of allowable public-works
spending would be equal to the Mr. Minenna is a doctoral lec-
amount of capital each member turer at the London Graduate
country paid each year for its bond School of Mathematical Finance.
an hour, has been raised to $13 and when it delivers evidence against
is on its way to $15. A comprehen- minimum wages suggests the moti-
sive study by academics at the Uni- vations here may be ideological
versity of Washington estimated that rather than empirical.
the higher minimum “reduced hours The Seattle study won’t settle
worked in low-wage jobs by around the debate—nor should it. It is one
9 percent.” Consequently, earnings analysis, and it examines one city’s
for these employees dropped “by an experience over a short period. In
average of $125 per month.” my view, more of the evidence, and
the best evidence, points to job
losses from higher minimum wages.
A recent study used an But additional research will refine
the academic consensus. The trou-
approach favored by ble is that the debate will suffer if
boosters—yet still showed researchers use their influence to
attack results they don’t like, as
negative effects for workers. seems to be happening with the Se-
attle study.
There is also a more general les-
What’s especially inconvenient for son for the public. Although politi-
minimum-wage proponents is that cians and the media are right to rely
the Seattle study used a “close com- on research to understand the ef-
parison” method similar to the one fects of public policy, it’s important
they have favored for years. The au- to keep a skeptical eye. Research of-
thors of the study compared workers ten comes from a mix of sources, and
in Seattle with those in other metro- it can be difficult for those reporting
politan areas in Washington, such as on it to separate the wheat from the
Olympia, Spokane and Tacoma. chaff. Perhaps it’s even unreasonable
To no one’s surprise, that hasn’t to expect them to do so.
stopped minimum-wage supporters This problem of research-as-advo-
from attacking the Seattle research. cacy isn’t confined to one side. There
In a June letter to city officials, Mr. is plenty of it on the right and the
Reich, the Berkeley professor, wrote left. Yet it would be wrong, too, to
that the study “draws only from ar- think that any study from an organi-
eas in Washington State that do not zation with a point of view is flawed
at all resemble Seattle.” or biased. The trick is trying to un-
But this gives away the game: Any derstand not only what the research
researchers doing this kind of study says about public policy, but also
should explicitly choose control ar- who the messenger is.
eas that show similar trends, as did
the University of Washington team. Mr. Neumark is a professor of
More to the point, if the controls for economics and director of the Eco-
Seattle can’t be trusted, it under- nomic Self-Sufficiency Policy Re-
mines the whole idea of “close com- search Institute at the University of
parison.” Criticizing the method only California, Irvine.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A12 | Wednesday, September 27, 2017 THE WALL STREET JOURNAL.

LIFE & ARTS

BURNING QUESTION

What’s the Best Cure for Brain Freeze?

haling cold air such as during ice headache, says Dr. Starling. “That A randomized trial was conducted the headaches lasted less than 10
BY HEIDI MITCHELL
skating. referred pain is similar to how in 2002 to study this strange phe- seconds. About 79% of the chil-
people describe having a heart at- nomenon. Researchers in Hamil- dren said they had had at least
WHAT IS an ice cream headache, Referred Pain tack: that they feel pain in their ton, Ontario, Canada asked 145 one headache from eating ice
or brain freeze? A physiological phenomena called left arm, not necessarily in their middle-school students to partici- cream at some point in their lives.
It starts with an innocent referred pain explains why the heart,” Dr. Starling says. pate and all agreed. Half were Sometimes you get one, some-
spoonful of ice cream—and ends brain perceives aching in the tem- The good news is that once the told to eat half of 100 ml of ice times you don’t, but the majority
with feeling like an ice pick is ples or forehead rather than the blood vessels dilate back to nor- cream in more than 30 seconds, of people have had at least one
stabbing the brain. Though quick mouth. Nerves from the head, face, mal size, the piercing pain in the then finish at their own pace. The cold-stimulus headache in their
to arrive and quick to flee, the neck and mouth converge onto the brain goes away, typically within a other group was instructed to eat lifetime,” Dr. Starling says.
so-called ice cream headache can brainstem in an area called the tri- few seconds, but no longer than a all 100 ml in less than 5 seconds. Several studies suggest that
be a painful side effect of an oth- geminal cervical complex, or the minute or two. “These cold-stimu- In the study, 27% of children in people who suffer from migraines
erwise joyful indulgence. One ex- TCC. The TCC is most frequently lus headaches are benign,” Dr. the accelerated-eating group de- might be more prone to getting
pert, Amaal Starling, assistant activated from head pain, so when Starling adds. veloped an ice cream headache ice cream headaches. “I could hy-
professor of Neurology at Mayo it’s “turned on” by the mouth, it compared with only 13% in the pothesize that they are more sen-
Clinic in Scottsdale, Ariz., ex- can sometimes translate into a Ask a Child “cautious” group. Nearly 60% of sitive to environmental triggers
plains its causes and so it could be that they
cures such as drinking have a decreased thresh-
with a small straw. old for painful stimulus
overall,” she says.
A Cold-Stimulus
Headache Prevention and Cures
Sufferers have given Prevention is the best
the fleeting condition way to combat ice cream
many names, but the headaches, says Dr. Star-
technical term for an ling. Eat slowly. Choose
ice cream headache is a a narrower straw for
cold-stimulus. drinking a slushie.
Dr. Starling, a head- “Since the posterior
ache expert, explains palate is the most sensi-
that when very cold tive part of the mouth,
food touches the palate, position the straw so it’s
the blood vessels rap- not projecting the cold
idly constrict, then rap- sip to the back of your
idly dilate. Pain recep- mouth,” she adds,
tors in the walls of though her strategy has
those blood vessels tell not been clinically
the trigeminal nerve tested.
that something wild is If you get a headache
happening, and the from a chocolate cone,
brain “reads” that mes- depress your tongue or a
sage as head pain. clean thumb to the roof
“Your body likes sta- of your mouth, or have a
bility, and when some- sip of warm water. “If
thing changes quickly, you can stabilize the
it sends off signals to temperature and prevent
the brain that some- the rapid constriction
thing might be wrong,” and dilatation that
says Dr. Starling. About might shorten the ice
one-third of people ex- cream headache,” the
perience the brain neurologist says. “Life is
freeze when they all about enjoying the
quickly consume cold small things, so eat
foods like ice cream or slower, but still enjoy
milkshakes, she says. your ice cream.”
The neurologist has
ZOHAR LAZAR

seen case reports

where brain freezes Email questions to
were even caused by in- burning@wsj.com

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.
-15 1 2 3 4 5 6 7 8 9 10 11 12 59 “Clumsy me!” 28 Limited
-10 support?
Riga -5 13 14 15 60 On edge
g
Glasgow 0 29 Third word of
osco
Moscow 16 17 18 61 Nurse’s skill, for
C p h g
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Copenhagen 5 “America”
short
10 19 20 21 30 Insect that
D b
Dublin 15
62 Blog entry makes a conical
li
Berlin 22 23 24 25
A d
Amsterdam 20 63 German steel trap
arsaw
Warsaw 25 city
26 27 28 29 30 32 Last letter on the
Lond
London
l
Brussels kf
Frankfurt 30
e
Kiev
31 32 33 Down other side of the
Prague 35
1 Etsy offerings pond
Paris i h
Munich 34 35 36 37
V
Vienna Warm 2 Arrive via limo 34 Seller of
Geneva
Budapest 38 39 40 Crunchwrap
Cold 3 Geriatrics study Supremes
Milan h
Bucharest 41 42 43 44 45 46
Stationary 4 Show off one’s 35 Physically strong
47 48 49 muscles
Showers 36 Young fellow
Rome 50 51 52 53 54 5 Hawk on a
Rain skateboard 37 Hawaii’s
Madrid
d id b
Istanbul
55 56 57 Mauna ___
T-storms 6 Sharp strikes
Lisbon
58 59 60
38 Enthusiasm
Algiers T
Tunis Ath
Athens 7 Upscale
Snow 42 Derby figures
61 62 63
8 Dubai bigwig 43 Stand-in
Flurries
Rabat
b 9 Bear’s lair
Ice FIRE PROOF | By Damien Peterson 44 Dallasites and
10 Play down San Antonians
Global Forecasts City
Today
Hi Lo W
Tomorrow
Hi Lo W City
Today
Hi Lo W
Tomorrow
Hi Lo W
Across 22 Harbor vessel 40 Fanciful story
11 Koa wood 45 Opposed
s...sunny; pc... partly cloudy; c...cloudy; sh...showers; Geneva 21 11 pc 22 11 pc Ottawa 29 8 pc 17 7 s
1 Small tenant 23 Ques.’s 41 Loser’s instruments
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice farm 46 Bring down
Hanoi 33 26 t 33 25 t Paris 21 13 pc 20 11 pc opposite admission
Havana 29 22 t 29 22 t Philadelphia 31 20 pc 27 14 pc 12 Ran into 48 Egotistical
Today Tomorrow Hong Kong 34 28 s 33 28 s Phoenix 33 21 s 35 24 s
6 Ride for a snow 24 Some street 43 Donkeys
City Hi Lo W Hi Lo W day 14 Bantu boss utterance
Honolulu 32 24 pc 32 24 pc Pittsburgh 30 13 s 21 9 s performers attacked by
Amsterdam 20 12 pc 19 12 pc Houston 32 23 pc 33 23 pc Port-au-Prince 35 23 t 35 23 pc
10 Tight-lipped bats, perhaps 18 Clip 51 Chase away
Anchorage 12 8 r 13 7 r Istanbul 24 17 sh 22 17 pc Portland, Ore. 29 15 pc 29 14 s 26 Prism
Athens 26 19 t 23 19 pc Jakarta 31 25 t 32 25 t Rio de Janeiro 30 21 s 29 20 s 13 Rich kid in the productions 47 Jell-O shapers 20 Story with a 52 Spices (up)
Atlanta 32 21 s 32 20 s Johannesburg 24 10 s 22 9 pc Riyadh 39 22 s 39 21 s moral
Baghdad 41 23 s 38 23 s Kansas City 20 9 pc 22 12 pc Rome 24 13 s 24 13 pc
“Nancy” comics 29 Felt with the 48 “My man!” 53 Destiny
Baltimore 30 19 pc 26 11 pc Las Vegas 30 19 s 30 18 s Salt Lake City 20 9 s 20 9 s 14 “Superfudge” fingers 49 Green of 24 Candidate of 54 Impresses
Bangkok 33 26 t 33 25 t Lima 19 15 pc 20 15 pc San Diego 27 17 s 28 19 s 2008 greatly
Beijing 24 8 pc 23 9 s London 20 14 pc 19 11 pc San Francisco 31 16 s 27 15 s
writer Judy 31 Man-mouse “Casino Royale”
Berlin 19 11 pc 19 10 pc Los Angeles 33 17 s 33 18 s San Juan 32 26 pc 31 26 pc 15 Mamie’s mate go-between 50 Ethan Allen buy 25 “Didn’t I tell you?” 55 B movie shooter
Bogota 21 9 r 20 9 r Madrid 28 12 pc 28 13 s Santiago 24 11 pc 25 12 c
Boise 23 9 s 24 10 s Manila 32 27 t 32 26 t Santo Domingo 31 23 t 32 23 pc 16 Mayflower 32 Galvanizing 51 •Picture of 27 Direct the crew 56 Outperform
Boston 27 17 pc 23 12 pc Melbourne 23 11 pc 17 8 pc Sao Paulo 29 17 s 26 17 t Compact signer metal a piece of
Brussels 21 12 pc 19 11 pc Mexico City 23 15 pc 20 15 t Seattle 26 13 pc 29 15 s Previous Puzzle’s Solution
Seoul 26 15 r 24 11 s
John 33 Last letter on silverware sent
Buenos Aires 15 10 pc 18 12 c Miami 32 25 sh 31 25 sh R I C E A D AM O S A K A
Cairo 31 21 s 30 21 s Milan 24 12 pc 24 13 pc Shanghai 28 21 pc 25 20 pc 17 •One who’s a this side of the remotely? E T O N B O L O U N S E R
Calgary 20 6 pc 22 7 s Minneapolis 19 11 s 22 9 pc Singapore 31 25 pc 31 25 pc stickler about pond 55 Is fired, and F A L S E L E A D T A P A S
Caracas 31 26 pc 31 26 pc Monterrey 32 21 t 29 21 t Stockholm 17 10 pc 17 8 c D U T Y M I C K E N O
Charlotte 33 19 pc 32 18 pc Montreal 29 11 pc 18 7 pc Sydney 24 17 pc 26 14 pc maintaining a 34 •Prize money what each T V S E T C O F F E E R U N
R AWD A T A Y O Y O
Chicago 22 11 s 23 12 s Moscow 10 0 c 11 5 pc Taipei 38 27 pc 35 27 t hairless body? that must be starred answer A L E A P T E I D E R
Dallas 30 20 t 27 20 c Mumbai 32 27 t 31 26 t Tehran 29 18 s 30 17 s
19 •Stationery the declared? does P L A Y G R O U N D S L I D E
Denver 17 8 pc 17 7 r Nashville 32 19 s 28 14 s Tel Aviv 29 22 s 28 22 s S I T A R B OW R D A
Detroit 27 11 pc 20 11 s New Delhi 36 25 s 35 24 s Tokyo 27 22 pc 25 18 r color of straw? 38 Brewery sight 57 Edgar or Hugo R A I N D I E T T I P
F I L M S C O R E R A C E S
Dubai 38 28 s 39 29 s New Orleans 32 24 s 34 24 s Toronto 28 11 pc 20 9 s A L O U E D O P A T H
Dublin 15 8 r 16 11 pc New York City 29 20 pc 26 14 pc Vancouver 21 12 s 22 14 s 21 Bother 39 Not nude 58 Ring legend V I O L A I T S A S T E A L
Edinburgh 18 12 pc 17 9 pc Omaha 21 10 s 23 10 s Washington, D.C. 31 21 pc 27 14 pc R A N K S C O I L O A R S
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
s

Frankfurt 20 10 t 20 11 pc Orlando 33 22 s 33 23 s Zurich 20 10 pc 22 10 pc E D S E L E R R S O P E D

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BUSINESS & FINANCE
© 2017 Dow Jones & Company. All Rights Reserved.
Euro vs. Dollar 1.1772 g 0.66%
Dyson Tries Hand at Electric Cars
Innovative designer
of everyday appliances
started project more
than two years ago
BY STU WOO
AND WILLIAM BOSTON
LONDON—Dyson Ltd., the
British technology company
known for its high-end vac-
uum cleaners and ubiquitous
hand dryers, said Tuesday that
it is developing an electric car
to hit roads as early as 2020.
The closely held company’s
founder, James Dyson, re-
vealed few details about the
vehicle, which would compete
against those of electric-car
pioneer Tesla Inc., during a
news conference at his com-
pany’s London store. He said it
Alstom,
Siemens
Set Rail
Merger
BY MATTHEW DALTON
PARIS—German industrial
company Siemens AG on
Tuesday agreed to merge its
rail operations with French
train maker Alstom SA, aim-
ing to create a European giant
with the scale to fight growing
competitive threats from
state-backed Chinese rivals.
Under the deal, Siemens
will be issued 50% of the
shares in the new company.
Alstom shareholders will re-
ceive two special dividends to-
taling €8 ($9.48) a share, or
€1.8 billion ($2.1 billion), the
companies said.
The proposed merger marks
a major test of Europe’s ability
to overcome national eco-
nomic rivalries and establish a
European champion, akin to
Airbus SE in aviation. The
deal faces the risk of political
backlash in France, where Al-
stom’s factories have been a
symbol of national industry
for more than a century.
Yet the merger has strong
backing from French President
Emmanuel Macron, who has
argued that Europe needs to
cooperate across borders to
compete better against eco-
nomic powers in China, the
U.S. and elsewhere. The deal
echoes the political overtures
Mr. Macron is making to Ger-
man Chancellor Angela Merkel
to bolster the eurozone econ-
omy by establishing a shared
budget for the currency bloc.
“We put the European idea
to work and together with our
friends at Alstom, we are cre-
ating a new European cham-
pion in the rail industry for
the long term,” said Siemens
Chief Executive Joe Kaeser.
The deal would dilute
French control over Alstom,
which shrank dramatically in
2015 when the company sold
its electric-turbine division to
U.S. industrial conglomerate
General Electric Co. That deal
handed an important piece of
France’s nuclear-power busi-
ness to GE, outraging mem-
bers of France’s socialist gov-
ernment at the time. The labor
minister called it a “breach of
national ethics.”
To ease French concerns,
the current chief executive of
Alstom, Frenchman Henri
Poupart-Lafarge, will lead the
new business. Its headquarters
will remain in France.
A combination would create
a European transportation
business with about $18 billion
in annual sales.
Alstom had sales of €7.3 bil-
lion in the financial year
ended March 31. Siemens’s
mobility unit had €7.8 billion
in revenue last year.
The deal is intended to help
Europe’s rail industry confront
an increasingly serious threat:
CRRC Corp., the world’s big-
gest rail supplier, and other
companies in China’s govern-
ment-run train industry.
—Jacquie McNish
contributed to this article.
TECHNOLOGY: TWITTER TRIES OUT A WORDIER FORMAT B4
* *
FTSE 100 7285.74 g 0.21%
The firm’s offices. Dyson is known for hair dryers and vacuums.
would be neither a sports car
nor a mass-market model.
Big auto makers also are
piling in to develop their own
answers to Tesla, and they
General Electric in 2015 won a $2.5 billion contract to supply 1,000 diesel locomotives to Indian Railways over 11 years.
GE’s India Train Deal in Jeopardy
General Electric Co. is in
danger of losing one of its
largest industrial contracts af-
ter a political shake-up in In-
dia, highlighting the risk of
By Thomas Gryta,
Ted Mann
and Rajesh Roy
the conglomerate’s chase to
win business in far-flung mar-
kets by investing heavily in lo-
cal operations.
GE won a $2.5 billion deal
in 2015 to sell diesel locomo-
tives to Indian Railways—de-
livering 1,000 of the machines
INSIDE
LUXOTTICA’S
ESSILOR DEAL
FACES REVIEW
BUSINESS, B2
ALIBABA TAKES
CONTROL OF
LOGISTICS FIRM
TECHNOLOGY, B4
THE WALL STREET JOURNAL.
Gold 1297.00 g 0.75% WTI crude 51.88 g 0.65% German Bund yield 0.410%
and design house that success-
fully fused innovative engi-
neering and design to provide
fresh takes on everyday appli-
ances such as vacuum cleaners
and hair and hand dryers, for
which consumers have paid
high prices. The company’s
founder promised to pour £2
SIMON DAWSON/BLOOMBERG NEWS
billion ($2.69 billion) into his
car effort.
Mr. Dyson said his company
wouldn’t collaborate with
other car makers and hoped to
make an automobile distinc-
tive in design and technology.
“We want to do it ourselves,”
he said. “There’s no point in
doing one that looks like ev-
have the deep pockets and
auto-making experience to
eryone else’s.”
Mr. Dyson said the company
had been working on the elec-
give them a running start. But tric-car project for 2½ years
Dyson has made an interna- and has 400 employees dedi-
tional mark as a technology cated to it so far. “We’re not a
over 11 years—using a struc- sively. GE executives met with
ture the company said would Mr. Goyal last week, according
be a model for the future. In to people familiar with the
exchange for a massive order meeting, to try to keep the
from one of Asia’s biggest deal together.
economies, GE would agree to “The contract is being re-
build the locomotives in a re- viewed, but has not been ter-
mote corner of the Indian minated as of yet,” a senior of-
countryside, boosting employ- ficial at India’s Railways
ment and the local economy. Ministry said. “We are dis-
But a new railways minis- cussing various options with
ter, Piyush Goyal, stunned GE GE. We are exploring if they
leaders earlier this month by can make electric locomotives
declaring that India would for us.”
pull out of the deal and in- “We continue to meet our
stead seek to transform its targets and execute on the
massive rail network to use project,” said Karan Bhatia,
electric locomotives exclu- vice president of government
European Banks Back in Merger Mind-Set
BY MAX COLCHESTER Middle East.
AND BEN DUMMETT So far, deals have largely
involved big banks snapping
The freeze in European up weaker domestic competi-
bank mergers is finally show- tors, often at the urging of
ing signs of thawing. regulators. This year, Spain’s
After being whipped by failing Banco Popular Espa-
scandals and losses, Europe’s ñol SA was taken over by
banks retreated to their do-
mestic markets to patch up
Banco Santander SA. Three
smaller Italian banks were
their balance sheets. swept up by UBI Banca SpA.
Now, some are starting to
look outward again. Merger-
The most often cited tar-
gets by bankers as possible
and-acquisition bankers, who cross-border tie-ups are part-
were once shooed out of Euro- nationalized banks like Ger-
pean bank boardrooms, say many’s Commerzbank AG,
they are getting a warmer re- Bankia SA in Spain or the
ception. Fears that the euro- Netherlands’ ABN Amro
zone will collapse have re- Group NV. Among the poten-
ceded, and bank valuations tial acquirers, analysts say, are
have rallied. France’s BNP Paribas SA and
Meanwhile, the eurozone’s Sweden’s Nordea Bank AB.
banking regulator wants deals Europe still has too many
to create more pan-European unprofitable banks, analysts
banks and to boost the sec- say. A survey in June showed
tor’s meager profits.
For European bank deals,
that only 50% of European
banks believe their current
“the pendulum has started to earnings cover their cost of
move away from a hard no,”
said Peter Mason, Barclays
equity, according to the Euro-
pean Banking Authority. Rais-
PLC’s co-head of financial in- ing the pressure are new rules
stitutions for Europe and the that force banks to issue debt
Wednesday, September 27, 2017 | B1
10-Year Treasury yield 2.229%
Johnny-come-lately,” he said.
He said he wanted to go
public with the project Tues-
day in part to make it easier
IMAGO/ZUMA PRESS
to recruit engineers.
Even with a popular brand,
Dyson will be entering a
crowded field. When Tesla in-
troduced its now iconic Model
S luxury sedan in 2012, global The suit also targets former
car makers were asleep at the Uber CEO Travis Kalanick.
wheel. Now most major car
makers are on track to launch
new-generation electric vehi-
cles—from compact city cars Uber
Faces
and luxury sedans to sport-
utility vehicles—in 2020, Dy-
son’s target year. That puts
pressure on Dyson to come up
with a car that sets itself
apart from the world’s biggest
and best-known auto makers. Investor
Lawsuit
The company will develop
the car in Britain, though it
Please see DYSON page B2
BY GREG BENSINGER
A small shareholder of
Uber Technologies Inc. on
Tuesday sued the ride-hailing
company and its former chief
executive for allegedly cover-
ing up “illicit business tac-
tics,” the latest legal challenge
following months of scandals
at the highflying startup.
The lawsuit from the Ir-
ving Firemen’s Relief & Re-
tirement Fund in Texas claims
Uber and former CEO Travis
Kalanick knowingly misled in-
vestors while raising capital
by failing to reveal the com-
pany had potentially broken
laws, revelations that alleg-
edly cost investors billions of
dollars in losses on invest-
ments. The complaint, filed
in the U.S. District Court for
CHANDAN KHANNA/AGENCE FRANCE-PRESSE/GETTY IMAGES
the Northern District of Cali-
fornia, seeks class-action sta-
tus on behalf of Uber’s myr-
iad investors, and asks for
unspecified damages.
The small retirement
fund invested about $2 million
in Uber in February 2016
through a Morgan Stanley fund
at a $62.5 billion valuation.
“The company’s vaunted
corporate culture was revealed
in truth to consist of a toxic
hotbed of misogyny, sexual
discrimination, and disregard
for the law that threatened the
company’s reputation, busi-
ness and prospects,” according
to the complaint. Uber, which
is privately held but was val-
ued at $68 billion in its most
affairs at GE. “The idea that recent fundraising round in
the rail transportation needs of June 2016, has lost at least
India can be met by pure elec- $18 billion in market capital-
trification strains credulity.” ization, the fund alleges, citing
“We are optimistic that re- media reports.
ality will prevail and the gov- Representatives for Mr. Ka-
ernment will move forward lanick, Uber and Morgan Stan-
with this critical project,” he ley declined to comment. Rep-
added. resentatives for the firemen’s
GE doesn’t make electric lo- fund declined to comment be-
comotives. yond the complaint.
In his public remarks, Mr. The lawsuit adds to mount-
Goyal said the ministry would ing legal issues faced by Uber
double its plans to electrify as its new CEO Dara Khosrow-
tracks, from 17,000 kilometers shahi takes over for Mr. Kalan-
(nearly 10,600 miles) to 35,000 ick, who resigned under pres-
kilometers of track, obviating sure from investors in
Please see TRAIN page B2 Please see UBER page B2
that can be written off if the pean deposit-insurance system
lender founders. The cost of is hampering deals. The Euro-
this pricey issuance could pean Central Bank is reviewing
leave smaller banks with little banks’ risk models, a move that
option but to embrace a part- might force them to hold more
ner, bankers say. capital.
Meanwhile, bankers are The eurozone’s chief bank-
betting on a political push to ing regulator, Danièle Nouy,
create a tighter-knit eurozone
that will help see the creation
has said she doesn’t want
weak banks to collapse into
of European banking champi- each others’ arms. Bankers say
deals could still be a year or
so away.
European authorities want
‘The pendulum has that stance to change. It is
started to move away “important for supervisors
and policy makers to identify
from a hard no,’ says and address potential struc-
Peter Mason. tural impediments for bank
sector consolidation,” the
Joint Committee of the Euro-
pean Supervisory Authorities
ons. The election of French said in a recent paper.
President Emmanuel Macron Past pan-European mergers
and the victory this week of haven’t been that successful.
German Chancellor Angela
Merkel’s conservative alliance
From 2006 to 2016, only 44%
of European cross-border bank
are expected to drive financial deals generated value, accord-
integration further.
But a series of regulatory
ing to consulting firm Oliver
Wyman. That compares with
hurdles remain. 60% for domestically focused
The lack of a single Euro- takeovers.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B2 | Wednesday, September 27, 2017
INDEX TO BUSINESSES
These indexes cite notable references to most parent companies and businesspeople
in today’s edition. Articles on regional page inserts aren’t cited in these indexes.
A
ABN AMRO Group......B1
Airbnb..........................B9
Alibaba Group........B4,B6
Alibaba Group Holding
...................................B10
Allianz ......................... B3
Alphabet...........B2,B4,B6
Amazon.com.....B4,B6,B9
AMC Entertainment
Holdings....................B4
Apple......................B4,B6
Avalonbay Communities
.....................................B5
Axis Capital.................B3
Axovant Sciences ....... B3
B January and poised to forge a
Baidu......................A2,B6
Banco Popular Español
.....................................B1
Banco Santander ........ B1
Barclays.......................B1
Benchmark Capital ..... B2
BlackRock....................B5
BNP Paribas................B1
Boeing ......................... B3
C Kraft Heinz ................. B1
Cainiao Smart Logistics
Network.............B4,B10
California Resources...B5
CME Group..................B6
Commerzbank ............. B1
D Luxxotica Group..........B2
DCT Industrial Trust...B9
INDEX TO PEOPLE
A Fehr, Joy......................R2
Agrawala, Banmali ..... B2
B
Barrowman, Carole.....R4
Baty, Phil.....................R1
Beckman, John............R3
Bettencourt, Liliane
............................... B1,B3
Bhatia, Karan..............B1
Boom, Steve ............... B4
Brown, Gregory...........R2
Busteed, Brandon.......R2
C Hawkins, Phil..............B9
Campbell, Mary...........R4
Chowen, Jodi...............R2
Clark, Emily.................R4
Clayton, Jay ................ B6
Clinton, Hillary..........B10
Coate, Jeri...................B9
Courtmanche, John.....R1
Cropsey, Doug.............B9
D Lapin, Lisa...................R3
Dorsey, Jack................B4
DuPont, Joe ................ R2
E-F
Eisgruber, Christopher
............................... R3,R4
UBER
Continued from the prior page
June. Uber faces three possi-
ble federal probes, including a
preliminary investigation by
the Justice Department into
alleged violations of the For-
eign Corrupt Practices Act.
Uber has said it is cooperating
with the investigations.
Tuesday’s shareholder alle-
gations echo a lawsuit filed
last month by one of Uber’s
directors and largest inves-
tors, Benchmark Capital,
which is seeking the ouster of
Mr. Kalanick as a direc-
tor through the return to the
board of three seats he con-
trols. Though the case has
been moved to private arbitra-
tion, it has overhung Uber’s
board and divided its inves-
tors.
Like Benchmark, the fire-
men’s fund specifically pointed
to news reports detail-
ing Uber’s use of software to
evade regulators, known as
Greyball, a program called Hell
used to gather intelligence
about rival Lyft Inc.’s opera-
tions, a lawsuit from Google
parent Alphabet Inc. over al-
legedly stolen trade secrets,
and charges of widespread
workplace discrimination.
Class-action shareholder
Uber Could Leave
Canadian Province
Uber Technologies Inc. said
Tuesday it may cease opera-
tions in the Canadian province
of Quebec in protest of more
stringent training rules for driv-
ers there.
The ride-hailing firm said it
would halt its service as soon
as Oct. 14 unless the Ministry of
Transportation reverses a new
provision that would have driv-
ers undergo 35 hours of train-
ing, 15 more than previously, to
match a similar requirement for
traditional taxi drivers. The Que-
bec Ministry of Transportation
also will require annual car in-
spections and background
checks done by police officials.
“We were disappointed that
the government now wants to
add new rules that rely on old
administrative practices,” an
Uber spokesman said.
THE WALL STREET JOURNAL.
BUSINESS & FINANCE
Deutsche Post.............B2
Delphi Automotive. .... B2
Dyson...........................B1
E
M
Metro-Goldwyn-Mayer
.....................................B4
Morgan Stanley..........B6
EU Probes Luxottica Deal
BY EMRE PEKER plier of ophthalmic lenses panies said they will cooperate sess whether the proposed
Equifax.............A1,A2,B6 N
while Luxottica is the top pro- with EU authorities to demon- merger would lead to higher
Exxon Mobil..............B10 Nestle..........................B1
BRUSSELS—The European vider of eyewear both in Eu- strate the “benefits that [the prices or reduced choices for
F Netflix.........................B6 Union’s antitrust authority rope and across the world, the merger] will bring to custom- opticians and ultimately con-
Facebook................B4,B6 Nordea Bank ............... B1 said Tuesday that it has EU said. ers, consumers and all the sumers,” said European Com-
Fannie Mae ................. B9 Nordstrom...................B9 started an investigation into The bloc’s competition au- eyewear industry players.” petition Commissioner Mar-
FedEx...........................B9 O-P the proposed merger between thority said it is concerned The companies reiterated grethe Vestager.
Fidelis..........................B3 Oliver Wyman.............B1
Ray-Ban maker Luxottica that their combination could their goal to complete their France-based Essilor and
Group SpA and optical-lens result in bundling or tying transaction around year-end, Luxottica of Italy would merge
G Petrobras .................... A3
maker Essilor International practices that harm rivals. adding that authorities in Rus- in a complex share swap,
Prologis ....................... B9
Gazprom....................B10 SA, which would create a “The merged entity may sia, India, Colombia, Japan, which would remove the risk
PS Business Parks......B5
General Electric .......... B1 global eyewear colossus. use Luxottica’s powerful Morocco, New Zealand, South of stepping on each other’s
General Motors...........R4 R The deal—announced in brands to convince opticians Africa and South Korea had al- toes as Luxottica expanded
to buy Essilor lenses and ex- ready cleared the deal. into lens manufacturing and
Greenhill......................B6 Roivant Sciences ........ B3
firm with a combined market clude other lens suppliers EU officials have 90 work- Essilor moved into frames.
Green Street Advisors S
value of roughly €46.3 billion from the markets,” the EU ing days to reach a decision, The combined companies
.....................................B9
Snap.............................B4
($54.5 billion)—threatens to said. which sets a Feb. 12 deadline will dominate the global eye-
I Sompo International .. B3
exclude other lens suppliers In a joint written state- for the review. wear market, putting them far
Indian Railways .......... B1 Spotify.........................B4 from markets, according to the ment, Essilor and Luxottica The authorities said their ahead of other competitors,
Intercontinental State Street................B5 EU’s executive arm, the Euro- said they were confident that investigation “does not pre- such as Johnson & Johnson
Exchange...................B6 T pean Commission. the review “will be completed judge the outcome.” Inc. and Safilo Group SpA, ac-
K Tesla.......................B1,B6 Essilor is the largest sup- in a timely manner.” The com- “We need to carefully as- cording to Euromonitor.
Kohl's...........................B2 Third Point..................B1
Toyota Motor..............B2
L Twitter...................B4,B6
21st Century Fox........B4
Lennar ......................... B9
U
London Stock Exchange
Group.........................B6 Uber Technologies ...... B1
L'Oréal.........................B1 Unilever.......................B1
Unione di Banche
Lyft..............................B2 Italiane......................B1
McDonald, James ....... B6
Frank, Dan...................A9 McMahan, Robert.......R4
Frankel, Eric................B9 Mieth, Roland.............B7
Freitag, Jan.................B9 Moghadam, Hamid ..... B9
Fuchs, Kent.................R4 Morton, Donald.........B10
G O-P
Gass, Michelle.............B2 Oquendo, Christopher.B9
Giglio, Elisabeth ......... R4 Paulson, John..............B9
CHRIS RATCLIFFE/BLOOMBERG NEWS
Gottlieb, Scott............B3 R
H Rosen, Aliza................B4
Harra, Alice.................R4 S
Havner, Ronald ........... B5
Sakwa, Steve..............B9
Schneider, Mark .... B1,B3
Hu, Ken........................B7
Smith, Richard............A2
I Subbaraman, Rob ....... B7
Ihara, Ikuhiro...............B4 T
Immergluck, Dan.........B9
Taylor, Robert.............R4
K Thorp, Holden.............R3 The deal between Essilor and Luxottica would create a company with a market value of more than $50 billion.
Kalanick, Travis...........B1 Tran, Michael............B10
Kuh, George ................ R4 V-W
DYSON
L Varga, Tamas............B10 on close cooperation with sup- invested heavily in electric-ve- ing technology into cars, mak-
Welch, Kory.................R3 pliers, many of which have hicle technology in recent ing it easier for new players to
Lawless, Jonathan......B9 Widodo, Joko..............B7 taken on some of the heavy years. enter the industry. The barrier
Loeb, Dan...............B1,B3 Wylin, Shawn..............R4 lifting of electric-car develop- In doing so, they have to entry for electric cars is
M Y-Z Continued from the prior page ment. For example, Robert morphed from mechanical en- also lower because the costs
Mansell, Kevin............B2 Young, Michael K........R4 hasn’t decided where to manu- Bosch GmbH, the big German gineering companies that sup- of developing an electric vehi-
Mason, Peter .............. B1 Zuidema, Leah............R4 facture the vehicle. Mr. Dyson supplier, built an electric de- ply individual parts for auto cle are lower than a conven-
said he would spend £1 billion livery van for Deutsche Post, makers into high-tech opera- tional vehicle.
on car development and an ad- Dyson wouldn’t be the first
suits targeting private compa-
nies are relatively uncommon,
said Kevin LaCroix, an attor-
ney who advises companies on
ditional £1 billion to develop
its battery.
Mr. Dyson said his company
is working on batteries that
Dyson wouldn’t be the first auto outsider
to break through in the field.
auto outsider to break
through.
Through a combination of
its own development and close
directors and officers insur- don’t contain liquid, which vir- cooperation with suppliers,
ance. Unlike with publicly tually all car batteries have to- Tesla came out of nowhere
traded companies, small inves- day. He said all-solid ones and managed to design and
tors in privately held startups would be safer, quicker to which it is using in its own tions employing thousands of produce electric vehicles that
typically receive limited finan- charge and more powerful. fleet and as well selling to software programmers and have become the gold stan-
cial information and other dis- The batteries would be similar third parties. selling complete systems that dard for the industry.
closures. to the ones it hopes to use in Major auto suppliers, in- unify a wide range of compo- Likewise, in China, the
“It’s been these ‘unicorn’ its vacuum cleaners and other cluding Bosch, ZF nents in the car. world’s biggest market for
companies that have attracted gadgets. Friedrichshafen AG, Conti- The emergence of the sup- electric vehicles, a handful of
these suits,” he said. “The po- Dyson’s go-it-alone ap- nental AG, Delphi Automotive plier as systems provider is new car companies have
tential range of damages could proach likely would still rely PLC and Valeo Group SA, have simplifying the job of integrat- emerged in the field.
be very high for a company of
this magnitude and valuation.”
Robbins Geller Rudman &
Dowd LLP, which is represent-
ing the firemen’s fund in the
TRAIN example of how GE can pros-
per amid slowing global trade
and rising protectionism.
tech companies such as Face-
book Inc. and Amazon.com Inc.
face unexpected challenges.
red tape and speeding up ap-
provals.
Most important, Mr.
suit, is also involved in a con- Continued from the prior page The complication also From the outset, GE offi- Agrawala said at the time, was
tinuing proposed class-action the need to invest in new die- comes at a tough time for GE, cials acknowledged the diffi- “a consistent, stable policy re-
shareholder suit against pri- sel locomotives. It wasn’t clear as new Chief Executive John culty of the Marhaura joint gime.
vately held biotech firm Ther- how the country would pay for Flannery conducts a wide- venture. Their confidence re- “Don’t throw surprises at
anos Inc., which was valued by such a massive project or sup- ranging review of its portfolio sided in part in Prime Minister us, because we are talking
investors at $9 billion in 2014. ply the needed power, though in search of costs cuts and Narendra Modi, who has made about infrastructure here.
Theranos has disputed the al- Mr. Goyal suggested some ways to boost growth. GE’s a point of inviting foreign in- We’re not making chocolates
legations of securities fraud. could come from solar panels stock is down 21% so far this vestment and emphasized im- or toothpaste,” he said.
The firemen’s fund invested installed along the railroad year, while the S&P 500 index provements to the country’s The Railways Ministry now
in Uber through a somewhat right of way. is up 11%. infrastructure. plans to have 95% of locomo-
unusual arrangement with The still unfinished GE lo- India’s huge economy is en- In an interview in April, tives run on electricity over
Morgan Stanley, which offered comotive factory in a tiny vil- ticing for corporations in Banmali Agrawala, GE’s head the next four to five years, ac-
clients an opportunity to in- lage called Marhaura—600 search of growth, but it can of South Asia, compared the cording to the railway official,
vest in a fund known as New miles from Delhi—is the linch- prove difficult. project to dropping “a very a big leap from 44% currently.
Riders LP, while promising pin of the company’s Indian Changing political winds high-tech plant in the middle The ministry is looking into all
limited financial disclosure. investment, and a point of and regional interests can de- of a desert somewhere.” legal and commercial aspects
Investors in the New Riders pride to executives such as rail progress, leaving steel But local officials had made of the GE contract and a final
fund hoped to profit from an former Chief Executive Jeff mills unbuilt and buildings sit- the project development eas- decision is expected in about a
eventual Uber IPO, which Mr. Immelt, who used the deal as ting empty. Even successful ier, he said, by streamlining month, the official said.
Khosrowshahi has said won’t
BUSINESS WATCH
come for at least 18 months.
The San Francisco company
is pushing for the Transporta- KOHL’S last role was running the com-
tion Ministry of Quebec to pany’s Europe, Middle East and
maintain current regulations Retailer Appoints Africa business. She was initially
that are part of the pilot pro- Next Chief Executive Kohl’s chief customer officer,
gram under which Uber is op- which included managing mar-
erating in the province, home Kohl’s Corp. said Michelle keting and e-commerce. In 2015,
to 8.2 million people and Mon- Gass, a former Starbucks Corp. she gained responsibility for the
treal, Canada’s second-largest executive who joined the depart- company’s merchandising, plan-
city. Uber has about 50 full- ment-store chain in 2013, will ning and product development.
CHRIS RATCLIFFE/BLOOMBERG NEWS
time employees in Quebec, and take over as chief executive next —Suzanne Kapner
some 10,000 drivers have year as it looks to navigate a and Austen Hufford
worked shifts for the company difficult retail landscape.
there. Kevin Mansell, Kohl’s current TOYOTA MOTOR
The threat in Canada CEO and chairman, will retire in
comes days after the city of May. Mr. Mansell has spent 35 Hybrid Engines
London stripped Uber of its years at Kohl’s, including the To Be Made in U.S.
private-car hire license in the past nine as CEO.
city, threatening to shut the The company’s board intends Toyota Motor Corp. said
company out of its largest Eu- to make one of its current inde- Tuesday it will start production Kohl’s Michelle Gass, in 2012 when she worked for Starbucks.
ropean market. London’s top pendent members chairman. of its first American-made elec-
transport authority cited Uber’s “We thought we’d be best tric-gas hybrid engines, the lat- falo, W. Va., engine factory that an electric motor, generator and
approach to driver background served by announcing this to- est in a series of investments by will begin making core electrical power split device—to the U.S.
checks and its corporate cul- day,” Mr. Mansell said in an in- foreign auto makers to expand components for hybrid vehicles. The company began making hy-
ture for the decision. Uber is terview Tuesday, adding that the operations in the U.S. and elec- The expansion is part of a com- brid versions of its Camry sedan
appealing the decision, rallying move was expected both inter- trify more of their vehicles. mitment made in January by in the U.S. more than a decade
support among customers and nally and externally. The Japanese auto maker Chief Executive Akio Toyoda to ago using domestic gasoline en-
preparing to reach a compro- Ms. Gass, 49 years old, joined plans to spend nearly $374 mil- invest $10 billion in the U.S. gines, but the electrical compo-
mise with regulators. Kohl’s in 2013 after serving since lion to upgrade five U.S. plants, Toyota will bring assembly of nents have been imported.
1996 at Starbucks, where her including $115 million at a Buf- hybrid transaxles—made up of —Adrienne Roberts
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To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. Wednesday, September 27, 2017 | B3

BUSINESS NEWS

U.S. Rises in Global Business Ranking

Switzerland is ranked policies and do away with reg-
ulations limiting corporations’
most competitive behavior.
economy; U.S. reaches The index, from the organi-
zation that produces the an-
highest spot in years nual Davos conference on
global politics and economics,
BY LAUREN WEBER assesses 137 companies on 12
factors that attract business
The United States is the investment and help deter-
second most competitive econ- mine productivity. The factors
omy in the world in 2017, trail- include nations’ institutions,
ing only Switzerland, accord- infrastructure, education sys-
ing to a closely watched index tems and innovation.
from the World Economic Fo- For the ninth year in a row,
rum. Switzerland topped the list.
The U.S. climbed one spot Rounding out the top five
since last year’s rankings, were Singapore, the Nether-
reaching its highest spot in lands and Germany. The Global
eight years, possibly reflecting Competitiveness Report relies
executives’ early optimism on public data on measures
that a new administration such as inflation and debt lev-
would enact business-friendly els along with a survey of
chief executives.
That CEO survey took place
mostly in the spring, soon af-
ter the inauguration of Presi-
dent Donald Trump, amid
hopes among business leaders
Singapore, the
Netherlands and
Germany rounded out
the index’s top five.
that his administration would
quickly press for deregulation
and lower corporate taxes.
Since that time, “there’s been
a lot of talk but not a lot of ac-
tual change,” says Daniel
Gomez Gaviria, who leads the
competitiveness research for
the WEF.
Tax reform has been held
up by efforts, unsuccessful so
far, to repeal the Affordable
Care Act and by intraparty di-
visions over the size of tax
cuts and how they should be
distributed.
The administration has
halted or delayed a number of
Obama-era regulations unbe-
loved by businesses but seen
by many as beneficial to work-
ers or consumers. For exam-
ple, the Labor Department de-
layed for 18 months
implementation of the fidu-
ciary rule, which requires bro-
kers to act in the best inter-
ests of retirement savers when
selling investment products.
The U.S. also scores high in and the availability of capital
the index on measures related haven’t returned to pre-2007
to market efficiency, such as levels, says Mr. Gomez.
technological readiness and And as automation dis-
the country’s capacity to at- places workers and companies
tract and retain talent. Amer- seek out greater flexibility in
ica ranks relatively poorly on their labor arrangements, em-
measures of health and pri- ployers and policy makers
mary education and the mac- must attend to the impact on
roeconomic environment, in- workers, the authors note.
cluding government debt By and large, “those econo-
levels. mies that have flexible labor
Ten years after the worst markets but combine them
global financial crisis since the with protection for worker
Great Depression, economic rights are also the most com-
systems around the world “re- petitive in our sample,” says
main at risk from further Mr. Gomez.
shock and are ill-prepared for Flexibility allows workers
the next wave of innovation to move among firms and sec-
and automation,” according to tors in response to innovation
the report. but workers need some in-
Perceptions of the sound- come protection to facilitate
ness of financial institutions those transitions, he adds.

Washington Attempts to Take Out Nicotine Nestlé

BY JENNIFER MALONEY

Scott Gottlieb was once a

Bends
critic of the Food and Drug Ad-
ministration, arguing it should
move faster. Now as its leader,
he has taken an idea that had
Under
been discussed inside the
agency for years—removing al-
most all the nicotine from ciga-
Pressure
rettes—and is running with it.
About two months after Dr. BY SAABIRA CHAUDHURI
Gottlieb took over as commis-
sioner, the FDA announced it LONDON—Nestlé SA on
wanted tobacco companies to Tuesday introduced a profit-
make all cigarettes with such margin target and said it would
low levels of nicotine that they accelerate share buybacks amid
are no longer addictive. It plans pressure from activist investor
to start the process by the end Dan Loeb, while remaining firm
STEPHEN VOSS FOR THE WALL STREET JOURNAL

of the year. on retaining a stake in cosmet-

Dr. Gottlieb’s surprise July 28 ics giant L’Oréal SA.
announcement on the tobacco- The consumer-goods com-
policy shift—dubbed “FDA Fri- pany’s strategy has been in the
day” by industry analysts—sent spotlight since Mr. Loeb’s Third
shares of Marlboro maker Altria Point LLC hedge fund built a
Group Inc., British American To- 1.3% stake in Nestlé and in June
bacco PLC and other tobacco advocated steps to improve its
stocks plummeting. performance, including the sale
The move reflected a two- of its stake in L’Oréal and the
pronged policy that Dr. Gottlieb setting of a margin target.
hopes will win broad support: Nestlé on Tuesday said it
making cigarettes less appeal- Food and Drug Administration chief Scott Gottlieb, who is a cancer survivor, wants to remove nearly all the nicotine from cigarettes. would strive for a trading oper-
ing, while offering smokers ating profit margin of 17.5% to
safer alternatives. If tackled fered “visceral” lessons in in cigarettes, smokers were “If it works, it will save more 18.5% by 2020 on an “underly-
separately, the two pieces smoking’s toll. “A lot of what more likely to quit or seek their lives than anything else the FDA Changing Habits ing” basis, which among other
would have faced more opposi- you see in hospitals is smoking- nicotine fix from less harmful could do,” said Robert Califf, an The share of adult smokers things strips out one-time
tion, Dr. Gottlieb said in an in- related illness,” the 45-year-old alternatives such as e-cigarettes Obama nominee who took the in the U.S. population over charges. Its margin in the first
terview. physician said. “It’s not just or gum compared with smokers helm of the FDA in 2016. the past 50 years half was 15.8%.
As part of the announce- cancer, but it’s heart disease, who continued using cigarettes Dr. Gottlieb, himself a cancer The company also plans to
ment, the FDA also said it it’s diabetes, it’s lung diseases.” with normal nicotine levels. survivor, served as deputy FDA 45 % tweak the $20.8 billion share-
would give makers of e-ciga- Tobacco executives have ap- Lowering nicotine in ciga- commissioner for two years un- 40 buyback program it set in June.
rettes already on the U.S. mar- plauded the FDA’s pledge to en- rettes has been a subject of dis- der the George W. Bush admin- 35 It will now purchase shares
ket—over which the agency as- courage the launch of less cussion inside the FDA since the istration, and more recently he evenly in each of the three years
30
serted control last year—more harmful products—an area in 1990s, according to current and was a fellow at the American to 2020, rather than back load
time to apply for regulatory ap- which they have invested ag- former agency officials. It can Enterprise Institute, a conserva- 25 them in 2019 and 2020.
proval. gressively. They also noted that be done in different ways, such tive think tank, writing essays 20 Nestlé said about 10% of its
The moves could dramati- any change in cigarette nicotine as genetically modifying to- and op-eds for The Wall Street 15 portfolio by sales is ripe for a
cally reduce the smoking rate in levels must be backed up by sci- bacco plants or stripping nico- Journal and other outlets. shuffling as it looks to shed
10
the U.S. Nicotine itself doesn’t entific research and must to tine from the leaf in the manu- For the past decade, Dr. slow-growth assets and invest
cause disease but it hooks peo- take into consideration poten- facturing process. In 2009 the Gottlieb has been an investor, 5 in more promising ventures.
ple on cigarettes, which kill tial consequences such as a Tobacco Control Act authorized consultant and board member 0 Shares in the company rose
480,000 people in the country black market. the FDA to mandate such a for cancer-therapy startups, 1965 ’70 ’80 ’90 2000 ’10 1.8% on Tuesday.
each year. Research funded by the FDA change—with the stipulation drug giants such as Bristol-My- The raft of announcements
Note: For people 18 years or older.
Dr. Gottlieb said his experi- and National Institutes of that the policy be based on sci- ers Squibb Inc. and Kure, a Data not available for 1975, 1976 used instead accompanying a closely
ence working at hospitals in Health has shown that when entific evidence, a caveat that startup retailer of vape pens Source: National Health Interview Survey watched investor day in London
New York and Connecticut of- nicotine was nearly eliminated slowed the process for years. and liquids. THE WALL STREET JOURNAL. are the latest moves by the
Swiss company to improve its
performance under a new chief

Axovant Says Drug Insurers to Finance Jet Orders executive and pressure from
Mr. Loeb.
Since Mark Schneider took
the reins in January, Nestlé has

Fails Crucial Study BY DOUG CAMERON

Boeing Co. has found a new

BY JONATHAN D. ROCKOFF those trial results by the end
of the year.
Axovant Sciences Inc. said Alzheimer’s disease has
Tuesday that the company’s proven to be an especially
experimental Alzheimer’s drug tough target for developing
failed to meet the goals of a treatments. Just a handful of
pivotal trial, the latest setback drugs have been approved to
for efforts to find new treat- treat the disease, and they are
ments for the memory-robbing indicated for relief of symp-
disease. toms, not an underlying cause.
Subjects in the study didn’t Meanwhile, experimental
show signs of improved cogni- therapies from Eli Lilly & Co.,
tion or daily living, according Pfizer Inc. and Johnson &
to the drug company. The Johnson that aimed to slow
company will stop pursuing the disease have failed during
the drug’s use for the treat- testing.
ment of Alzheimer’s. Yet companies have kept
“We are really, really disap- looking for a breakthrough,
pointed. We hoped for the because the need is so high
best, but this is a difficult dis- and commercial potential so
ease area,” Axovant Chief Ex- huge. About 5.5 million Ameri-
ecutive David Hung said in an cans have the disease, and the
interview. numbers are expected to rise
The performance for the as the population ages.
drug, known as intepirdine, The intepirdine study of
was watched closely on Wall 1,315 subjects, known as Mind-
Street because, even if the set, examined whether learn-
benefit was modest, analysts ing and memory improved in
expected the drug to have patients getting a combination
more than $2 billion in sales. of intepirdine and the widely
Axovant, of Basel, Switzer- used therapy, Aricept, com-
source of financing for jetliner
orders that are expected to
approach $200 billion a year
by the end of the decade: in-
surance companies.
The aerospace company has
helped form an alliance of in-
surers to provide lenders with
loan or bond guarantees for
jet sales. The new partnership
could fill a gap in aircraft fi-
nancing created by the ex-
tended closure of export credit
agencies in the U.S. and Eu-
rope. Those agencies provide
less creditworthy airlines with
guarantees that make their
aircraft purchases cheaper.
“This could be the indus-
try’s biggest new source of fi-
nance,” said Robert Morin, a
former U.S. Export-Import
Bank official hired in June by
insurance broker
McLennan to develop the
Marsh
product under the banner of
the Aircraft Finance Insurance
Consortium.
Only one-quarter of new air-
craft are paid for in cash, with
the balance financed through
bank loans and the capital
markets. More financing from
insurers could attract fresh in-
vestors and draw back others
who have pulled back from the
market, industry experts say.
An initial consortium of
four insurers—Allianz AG,
Axis Capital, Sompo Interna-
tional and Fidelis SA—has
been assembled to provide
guarantees that loans or bonds
are paid, replicating the role
of the export credit agencies.
“It’s credit insurance on
steroids,” said Jon Byron, se-
nior vice president at Apple
Bank Inc., which co-arranged
the purchase of a Boeing 747-8
said it would sell its U.S. con-
fectionery arm and announced
investments in Blue Bottle cof-
freighter using the structure fee, food-delivery startup
for lessor Intrepid Aviation, Freshly and plant-protein-
which is renting the plane to based-foods brand Sweet Earth.
Russia-based AirBridgeCargo. Mr. Schneider in February also
Intrepid Chief Financial Of- scrapped a key internal sales
ficer Mike Lungariello said the target, which the company had
new program isn’t a replace- repeatedly missed.
ment for export credit financ- After Mr. Loeb in June pub-
ing. Boeing has lobbied licly disclosed his $3.5 billion
fiercely for the return of U.S. stake in Nestlé and listed his
export credit guarantees, demands, Mr. Schneider an-
which have been suspended nounced the share-buyback
since July 2015 because of a program and laid out the com-
fight over the program in Con- pany’s investment priorities. He
gress. said Nestlé will focus on the
Airbus SE customers have high-growth areas of petcare,
also been unable to tap export coffee, infant nutrition and bot-
credit funding, with agencies tled water, while also pursuing
in the U.K., France and Ger- opportunities in consumer
many closed to large aircraft health care.
business because of a probe With Tuesday’s announce-
into alleged corruption. ment, Nestlé has largely met
three of Mr. Loeb’s demands—
setting a margin target, launch-
ing buybacks and using acquisi-
tions and divestitures to drive
growth—but is resisting a
fourth. Mr. Schneider said
Nestlé isn’t planning to change
its 23.29% stake in L’Oréal,
which has been in focus follow-
ing the death last week of Lil-
TRAVIS DOVE FOR THE WALL STREET JOURNAL

land, had built up a $2.6 bil- pared with subjects who took iane Bettencourt, heiress to the
lion market cap before an- Aricept alone. But the phase 3 L’Oréal fortune.
nouncing the trial failure. study failed to show a numeri- “The investment is not dilut-
Shares were down 74% at cal improvement and the re- ing anything,” Mr. Schneider
$6.28 on the Nasdaq Stock sults didn’t reach statistical said Tuesday, adding that the
Market late Tuesday. significance for the primary L’Oréal stake has delivered a
Dr. Hung said Axovant will endpoints, Axovant said. 12% annual return on invest-
now focus on other programs The results represented the ment over the 42 years Nestlé
in development, including us- bare outline of how intepir- has held it. “Our approach to
ing intepirdine to treat an- dine performed in the trial. this investment is currently not
other neurodegenerative con- Axovant plans to present the changing.”
dition known as dementia with full results at a medical meet- Third Point declined to com-
Lewy bodies. Axovant expects ing in November. Boeing’s plant in North Charleston, S.C. Only one-quarter of new aircraft are paid for in cash. ment.
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B4 | Wednesday, September 27, 2017 THE WALL STREET JOURNAL.

TECHNOLOGY WSJ.com/Tech

Your Tweets May

Not Need to Be
Short Anymore
BY GEORGIA WELLS
On Twitter, 280 is the new
140.
Twitter Inc. on Tuesday
said it would begin testing a
new limit of 280 characters,
double its current limit, as a
concession to users who have
been clamoring for changes to
the short-messaging service.
The new longer limit will be
tested on a small portion of
QILAI SHEN/BLOOMBERG NEWS
founded to revive its stagnat-
ing growth. Internally, the
question of whether to boost
the character limit is debated
frequently, according to for-
mer employees.
In early 2016, in response
to reports that Twitter was
considering extending its limit
to as many as 10,000 charac-
ters, Mr. Dorsey tweeted a
1,317-character statement in
defense of why Twitter might

users—a percentage in the sin- make a change.

gle digits, according to a Twit-
ter spokeswoman—and Twit-
ter will be monitoring the
experiment for several weeks
before making a decision.
“We want every person
around the world to easily ex-
The Chinese company raised its stake in affiliate Cainiao to 51% from 47%, part of a push to create a ‘seamless experience for shoppers.’ press themselves on Twitter,
“We’re not going to be shy
about building more utility
and power into Twitter for
people. As long as it’s consis-
tent with what people want to
do, we’re going to explore it,”
Mr. Dorsey said in the tweet.
Months later, however, he

Alibaba Targets Logistics

E-commerce giant time. About 70% of Cainiao
shipments are routed by algo-
plans to invest about rithms to ensure the network’s
$15 billion to build up 2 million couriers get pack-
ages to customers as effi-
global infrastructure ciently as possible.
Alibaba said the additional
BY ALYSSA ABKOWITZ investment is part of its strat-
egy to create a “seamless ex-
BEIJING—Alibaba Group perience for shoppers.” The
Holding Ltd. has become the company said it aims to fulfill
majority owner of its logistics orders in China within 24
affiliate, a move that could al- hours, and within 72 hours
lay concerns about financial anywhere in the world.
transparency that drew the at- A person familiar with Ali-
tention of U.S. securities regu- baba’s move said an inquiry by
lators last year. the Securities and Exchange
Alibaba is investing 5.3 bil- Commission had no bearing on
lion yuan ($800.8 million) to the company’s action. Alibaba
raise its stake to 51% from 47% disclosed the inquiry in May
in Cainiao Smart Logistics 2016 and said it was cooperat-
Network Ltd. It also will in- ing with authorities. The SEC
vest 100 billion yuan ($15.11 doesn’t comment on individual
billion) during the next five companies it is examining.
years to build up its global-lo- Alibaba is profitable but
gistics infrastructure and de- doesn’t count Cainiao losses
velopment of robots sorting as part of its own results,
and fulfilling merchandise. which critics have said ob-
Cainiao helps online mer- scures its financial picture. In
chants choose from among 15 a regulatory filing this year,
delivery firms by providing in- Alibaba said its net loss from
formation on cost and delivery Cainiao was $153 million in
Heavier Burden
Alibaba’s quarterly losses
from Cainiao
0 million yuan
–100
–200
–300
–400
2015 2016
Note: 100 million yuan = $15 million
Source: company reports
THE WALL STREET JOURNAL.
fiscal year 2017, up from $46
million in fiscal year 2016.
The accounting change
means there will be more as-
sets on the balance sheet, but
this likely won’t hurt Alibaba’s
net income because of its out-
size earnings, said Paul Gillis,
a professor at Peking Univer-
sity’s Guanghua School of
Management. During its most
recent quarter, Alibaba re-
ported earnings of $2.2 billion,
nearly doubling from the year-
earlier period.
“I don’t think it will have a
significant effect on the com-
pany, but it may help them put
the SEC issue behind them,”
Mr. Gillis said. “It basically
takes the wind out of the
SEC’s sails.”
The transaction, which is
expected to be completed in
October, means financial re-
sults will be consolidated un-
der Alibaba and reported as
2017 part of the business’s core
commerce segment. It also
will give Alibaba an additional
Cainiao board seat, or four out
of seven directors.
The increased stake will
give Alibaba more control over
logistics and customer data
that offer valuable insight into
people’s buying habits. Ana-
lysts say that data is impor-
tant as Alibaba looks to ex-
pand abroad, particularly in
Southeast Asia where it has
invested $2 billion in e-com-
merce giant Lazada Group.
so we’re doing something
new,” Twitter product man-
ager Aliza Rosen and senior
software engineer Ikuhiro
Ihara wrote in a statement.
The 140-character limit was
a barrier to some people using
Twitter, Ms. Rosen and Mr.
Ikuhiro realized, particularly
users tweeting in languages
like English that use more
words to express meaning. Us-
ers sometimes abandoned
their tweets when they
bumped up against the 140-
character limit, they said.
The change in tweet length
is significant for a company
that has long shied away from
making bold changes to its
product.
The brevity of tweets is a
defining feature of Twitter,
underpinning how the real-
time network differentiates it-
self from social-media rivals
such as Facebook Inc. and
Snap Inc.’s Snapchat.
But users have come up
with workarounds to the lim-
its—such as tweetstorms and
screenshots of longer text—or
jumped to other networks.
Chief Executive Jack Dorsey
has teased the possibility of
longer tweets since he re-
turned to the helm two years
ago of the company he co-
reaffirmed the value of 140
characters in an interview on
the “Today” show when asked
if the limit would change. “It’s
staying,” he responded. “It’s a
good constraint for us.”
Mr. Dorsey’s doubling of
tweet length could be met
with criticism and praise.
Twitter’s users are vocal on
the company’s messaging ser-
vice when they don’t like
something or want to suggest
a change. The 140-character
limit dates back more than a
decade to when people sent
tweets via SMS messages.
Text messages then were
limited to 160 characters, and
Twitter decided to save 20
characters for usernames, the
spokeswoman said.
Twitter decided on the new
character limit after observing
that the 140-character limit is
a major cause of frustration
for people tweeting in English.
The test won’t impact users
who tweet in Japanese, Korean
or simplified and traditional
Chinese because those denser
languages enable people to
convey more information in
fewer characters, Twitter said.
Nine percent of tweets in
English hit the 140-character
limit. But Twitter is unlikely to
try 10,000 characters.

Amazon Brings Alexa to Its Music App

RICHARD B. LEVINE/LEVINE ROBERTS/NEWSCOM/ZUMA PRESS

BY ANNE STEELE “pop music for a cardio work- tion heats up among artificial- familiar with the matter.
out” during a run or “the new intelligence assistants from Steve Boom, Amazon’s vice
Amazon.com Inc. hopes Taylor Swift song” while driv- Alphabet Inc.’s Google and president for music, says he
that the virtual assistant that ing. Apple Inc. offers some Apple, according to people fa- hopes music will be a natural
has made its Echo smart similar functions for Apple miliar with the company’s fit for the voice assistant. “We
speakers a hit will also attract Music, via the iPhone’s Siri thinking. should let people know about
more users to its mobile music voice assistant. Google’s and Apple’s assis- it, but we shouldn’t have to
app. Earlier this year, Alexa sur- tants have more data to learn train them,” he says.
The online retailer said it passed mobile as the No. 1 way from, thanks to their mobile Members of Amazon’s $99-
would launch Alexa on its Am- Amazon Music users listen. phone businesses and usage a-year Prime program can sub-
azon Music streaming apps on Since starting its Prime Music on those devices. Amazon has scribe to Amazon Music Un-
Tuesday, as it seeks to differ- streaming service in 2014, sold an estimated 15 million limited, launched last October,
entiate itself from rivals that Amazon has tried to cater to a Echo speakers, according to for $7.99 a month, though they
have bigger shares of the com- more mainstream audience Consumer Intelligence Re- already get access for no addi-
petitive market. An on-screen than its competitors. Nonethe- search Partners. tional charge to the company’s
button will let Amazon Music less, it remains No. 3 in the Alexa already joined Ama- more limited Prime Music ser-
users access the various Alexa subscription-music market, zon’s main shopping app ear- vice. Amazon Music Unlimited The chain will begin installing the technology at its cinemas.
“play” commands that work behind Spotify and Apple Mu- lier this year. Consumers ap- as a stand-alone service costs
on Echo.
Amazon envisions these ca-
pabilities as being useful for
sic, according to people in the
music industry.
Amazon has been pouring
pear to have been slow to
adopt that function, in part
because it isn’t obvious to the
$9.99 a month, on par with
Apple Music and Spotify’s pre-
mium tier.
Virtual Reality Headed
consumers on the move; for
instance, they can request
more resources into Alexa to
maintain its edge, as competi-
average user that Alexa is in-
tegrated, according to people
—Laura Stevens
contributed to this article. For AMC’s Theaters
BY BEN FRITZ age the locations, while
Facebook Scores in Video Deal With National Football League America’s biggest movie
Dreamscape will provide the
technology and content.
The National Football League theater chain is putting $20 “In our minds this is just
plans to put game highlights million behind a Hollywood like the investment to put in
and recaps on Facebook, as the virtual-reality startup and IMAX [screens] or Dolby
social network works to increase plans to begin installing its [sound systems] or reclining
premium video content for its technology at cinemas starting seats or better food and
“Watch” platform. next year. drink,” Mr. Aron said. “It
While trying to build a video AMC Entertainment Hold- makes our theaters more com-
platform rivaling Alphabet Inc.’s ings Inc. is the lead investor in pelling and attractive.”
YouTube, Facebook Inc. has been a $20 million Series B round The VR locations may be in
paying producers to offset pro- for Dreamscape Immersive, a theater lobbies or auditori-
duction costs, offering to license location-based virtual reality ums, or locations adjacent to
or buy content outright and offer- company backed by Steven cinemas, Mr. Aron said.
ing some a share of revenue gen- Spielberg. Dreamscape, whose execu-
erated from planned video ads. AMC is investing $10 mil- tive team includes experienced
Financial terms of the multi- lion in the round and is giving film and live-event producers
year deal announced Tuesday Dreamscape an additional $10 and a Disney theme-parks de-
weren’t disclosed. NFL highlights million to launch a content-de- signer, is currently building
of all regular-season games, the velopment fund to help create VR experiences tied to major
playoffs and the Super Bowl will VR experiences. movie franchises and sporting
be available to people globally Dreamscape in February events as well as original con-
on Facebook. closed a Series A with $11 mil- cepts.
The NFL’s media division also lion from a group of investors Its first location will be at a
will distribute uniquely packaged that included Time Warner Los Angeles mall run by West-
content for Watch, including NFL Inc., 21st Century Fox Inc., field Corp., a Series A inves-
Turning Point, which documents Metro-Goldwyn-Mayer Inc. tor. It is expected to launch
the drama and strategy on spe- and IMAX Corp. Its technology there in the winter of 2018,
cific games, and Sound FX, is designed to be used outside said Dreamscape’s CEO, Bruce
which provides highlights from the home and allows up to six Vaughn.
in-game, player audio. people to interact in a single Following that and the ini-
The agreement doesn’t in- VR environment. tial AMC installations, Dream-
JENNIFER STEWART/GETTY IMAGES

clude live-streaming games, such AMC plans to install scape’s goal is “rapid global
as Monday night’s contest pit- Dreamscape experiences at six expansion,” Chief Operating
ting the Arizona Cardinals and of its theaters in the U.S. and Officer Aaron Grosky said.
Dallas Cowboys, right. U.K. over the next 18 months, Dreamscape previously said
In April, the league and Ama- with more to follow if the ini- it is building VR experiences
zon.com Inc. reached a deal to tial half-dozen are successful, that will last about 10 minutes
stream 10 Thursday night said the cinema chain’s chief and cost $1 million each to
games. executive, Adam Aron. AMC produce. Tickets are expected
—Austen Hufford staff will sell tickets and man- to cost between $15 and $20.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. Wednesday, September 27, 2017 | B4A

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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B4B | Wednesday, September 27, 2017 THE WALL STREET JOURNAL.

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THE WALL STREET JOURNAL.
Directors Urged to Sit on Fewer Boards
Big institutional investors like BlackRock and State Street are raising concerns, saying some members are stretched thin
BY SARAH KROUSE
AND JOANN S. LUBLIN
Giant money managers
voted against the re-election
of Ronald Havner Jr. in May
to the board of a real-estate
company. Their reason: He
runs a different company
and sits on two other boards.
After about 56% of voting
shares were cast against Mr.
Havner remaining an
AvalonBay Communities
Inc. director, he said he
would resign, an offer re-
jected by the rest of the
AvalonBay board. BlackRock
Inc. and State Street Corp.’s
money-management unit
were among the large inves-
tors that voted against his
re-election.
Mr. Havner, who is chief
executive of Public Storage,
also decided not to stand for
re-election at California Re-
sources Corp.’s 2018 annual
meeting “due to concerns
raised by investors relating
to the time commitment re-
quired” for those roles, the
company said in a regula-
tory filing.
Mr. Havner “has taken
steps to reduce the number
of boards upon which he
serves,” said a lawyer for
Public Storage and PS Busi-
ness Parks Inc., a related
company.
Major institutional inves-
tors, governance advisers
and boards themselves are
cracking down on so-called
overboarding, trying to en-
sure that directors don’t
spread themselves too thin.
Overstretched directors lack
time to adequately monitor
management, these critics
contend.
“There is no good reason
for having an overboarded
director,’’ said Charles Elson,
head of the Weinberg Center
for Corporate Governance at
the University of Delaware.
He expects institutional-in-
vestor pressure will make
S&P 500 board members
with at least five seats a dy-
ing breed.
Many directors who serve
multiple boards contend that
they adequately manage
their time and can handle
their board responsibilities.
Who Wins When CEOs Sit on Multiple Boards? Not Investors
BY JOANN S. LUBLIN
Chief executives make a lot
of money when they hold board
seats at other companies. Their
employers benefit, too.
But investors don’t fare so
well.
These disparate outcomes,
which emerge from an analysis
of chief executives of S&P 500
companies for The Wall Street
Journal by research firm Equilar,
may intensify concerns about
“overboarding.” Critics con-
tend that executives on numer-
ous boards are too busy to ad-
equately oversee management.
Chief executives with at
least two outside directorships
earned a median compensa-
tion of $13.6 million for lead-
ing their employer in 2016,
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Zach Oleksiuk of BlackRock, above, says the issue isn’t performance, but rather the time it takes to
serve. At right, Ronald Havner Jr. has acted to reduce the number of boards on which he sits.
Lightening the Load
The number of directors on five or more corporate boards has
declined in recent years.
S&P 500 Russell 3000
250
200
150
100
50
0
2012 ’13
Source: ISS Analytics
A new analysis of S&P 500
chief executives for The Wall
Street Journal by Equilar, a
research firm, suggests that
leaders with multiple outside
while CEOs on one and on no
external board made 5.6% and
12.9% less, respectively, Equi-
lar reported. Businesses run
by the busiest top bosses also
had higher median net profit,
revenue and market capitaliza-
tion last year.
Shareholders saw median
one-year total return—which
tracks stock performance plus
reinvested dividends—of 8.2%
at the 37 companies with CEOs
who serve on multiple boards,
compared with a total return
of more than 15% for chief ex-
ecutives with a single or zero
outside directorship. It was
14.4% for all S&P 500 firms.
Equilar uncovered smaller
differences for three-year total
shareholder return. The study
covered 349 companies with
MANAGEMENT
’14 ’15 ’16 ’17
THE WALL STREET JOURNAL.
corporate board seats and
their employers make more
money, but their sharehold-
ers see lower returns than
those with one or zero out-
the same leader for three years.
Subpar shareholder results at
companies with multiboarded
chiefs “could be a red flag,”
prompting institutional inves-
tors to oppose their board re-
elections elsewhere, said Equi-
lar spokesman Dan Marcec.
About 22% of S&P 500 com-
pany boards already limit
their CEO’s outside director-
ships, according to Spencer
Stuart, an executive-recruit-
ment firm. The most common
maximum is two outside seats.
Based on Equilar’s analysis,
some boards now may
“tighten restrictions a little bit
more,’’ predicted Patrick
McGurn, special counsel at In-
stitutional Shareholder Ser-
vices, a proxy-advisory firm.
Highly regarded chief exec-
Wednesday, September 27, 2017 | B5
more power over share-
holder votes because they
own growing stakes in so
many publicly held corpora-
tions. Both voted against
Mr. Havner’s AvalonBay re-
election in each of the past
two years.
BlackRock, the world’s
largest asset manager, cast
168 votes against directors
this year because of over-
boarding concerns. It fought
the re-election of directors
at companies such as Char-
ter Communications Inc.,
Pfizer Inc. and PayPal Hold-
ings, Inc., according to fil-
ings and a spokesman for
the money manager.
“The directors that serve
on many boards tend to be
very strong directors,” said
Zach Oleksiuk, head of
BlackRock’s Americas cor-
porate governance and re-
sponsible investment team.
“The issue is not necessar-
ily their performance, but
rather the time that it takes
to serve.”
Being a director is lucra-
tive, time-consuming and of-
ten comes with a high pro-
file. Median total
compensation for U.S. public
board members was $191,440
last year, according to the
National Association of Cor-
porate Directors and pay
consultants Pearl Meyer &
Partners LLC, up about 3%
from the prior year.
Board members at public
companies spend an average
of 245 hours a year for each
position, up from 191 hours
JIN LEE/BLOOMBERG NEWS; ANDREW KELLY/REUTERS (TOP)
in 2005, according to sur-
veys by the NACD.
Influential proxy advisers
Institutional Shareholder
Services Inc. and Glass,
Lewis & Co. now recommend
investors vote against or
withhold support from di-
rectors who sit on more
than five public-company
boards. ISS lowered that
threshold to five in Febru-
ary from six. Each firm also
favors limits on the number
of outside directorships
CEOs can hold.
side directorships. American corporations in-
Money managers such as creasingly have imposed
BlackRock and State Street, their own restrictions. About
with large index-tracking 77% of S&P 500 companies
fund businesses, are gaining now curb board members’
utives often command higher
pay and get wooed for exter-
nal board service, said Irv
Becker, vice chairman of exec-
utive pay and governance for a
unit of recruiters Korn/Ferry
International. Recent investor
returns may not reflect CEO
reputations built over long ca-
reers, he added.
ABBOTT LABORATORIES
Miles D. White, head of Ab-
bott Laboratories, is typical. He
has run the global health-care
company since 1999 and earned
$20.3 million in 2016. He is a
board member at McDonald’s
Corp. and Caterpillar Inc. Last Abbott’s Miles D. White is on
year, Mr. White presided over McDonald’s, Caterpillar boards.
Abbott’s total return of nega-
tive 12.2%, lower than any spokesman noted, “the value
other current CEO tracked by of one Abbott share bought
Equilar with several outside di- when Mr. White became CEO
rectorships. However, as a has since quadrupled.”
© 2017 Dow Jones & Co. Inc. All rights reserved. 6DJ5549
outside directorships in
some fashion, up from 71% in
2010, according to Spencer
Stuart, an executive-search
firm. Among those with lim-
its for all directors, 36% now
impose a cap of three
seats—up from 29% in 2010.
Overall, 63 S&P 500 direc-
tors now serve on five or
more public boards, as of
Sept. 10, down from 83 in
2012, according to ISS Ana-
lytics, the data arm of Insti-
tutional Shareholder Services.
Some directors were re-
elected this year despite op-
position from some large
shareholders. For example,
BlackRock withheld support
for the re-election of Ann
Mather at Shutterfly Inc. and
Alphabet Inc., but she was
re-elected at both companies.
Ms. Mather also serves on
the board of three other
West Coast public compa-
nies: Arista Networks Inc.;
Netflix Inc.; and Glu Mobile
Inc. She deliberately chose
businesses in the same or re-
lated industries with head-
quarters near each other,
one person familiar with the
matter said.
The person said this week
that the businesses are “all
connected and relevant,’’
which means Ms. Mather
“can easily add value and
[has] a strategic understand-
ing of what’s going on.’’
Another big index-fund
manager, Vanguard Group,
doesn’t explicitly put a limit
on the number of boards on
which someone can serve
but looks at factors such as
board members’ “atten-
dance, engagement and ef-
fectiveness,” a spokes-
woman said.
Rival State Street Global
Advisors in 2016 cast votes
against 69 chief executives
who served on more than
three boards and against 22
non-CEO directors who each
sat on more than six public
boards. Despite setting
overboarding limits, it
wants companies to “do
more than manage to a
number,” Rakhi Kumar, head
of environmental, social and
governance and asset stew-
ardship at the firm said in
an email.
Stretched Thin?
Total shareholder return for
companies with CEOs serving on
at least two outside boards
compared with the S&P 500
S&P 500 companies
with multiboarded CEOs
All S&P companies
One-year return
8.2%
14.4%
Three-year return
10.2%
10.4%
Note: For period ending fiscal year 2016
Source: Equilar Inc.
THE WALL STREET JOURNAL.
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B6 | Wednesday, September 27, 2017
SEC Gets
Flak
On Hack
Response
BY DAVE MICHAELS
AND ANDREW ACKERMAN
WASHINGTON—U.S. sena-
tors, already facing distress
calls from constituents over the
Equifax Inc. hack, criticized the
Securities and Exchange Com-
mission’s new leader for how
the agency handled a 2016
breach of its cornerstone sys-
tem for storing market-moving
information.
“I was disturbed to learn
that the SEC suffered a cyber-
breach of its Edgar system in
2016, but did not notify the
public, or even all of its com-
missioners, until it was discov-
ered during your recent re-
view,” Sen. Mike Crapo (R.,
Idaho), chairman of the Senate
Banking Committee, said at a
hearing Tuesday. “It is critical
that the SEC safeguards the
data it collects and maintains.”
Facing his first crisis as the
SEC’s chairman, Jay Clayton
suggested that the agency may
have mishandled how it initially
responded to the breach. Sen.
PABLO MARTINEZ MONSIVAIS/ASSOCIATED PRESS
SEC Chairman Jay Clayton
Sherrod Brown (D., Ohio) was
even more critical of Mr. Clay-
ton, saying “it raises questions
about why the SEC seems to
have swept this under the rug.”
“This breach took place un-
der your predecessor, but the
disclosure, or lack thereof, is all
yours,” Mr. Brown said. “How
are Main Street investors ex-
pected to have confidence that
the SEC can hold big companies
accountable when the SEC is
not forthcoming?”
The corporate-filing system
that was breached, known as
Edgar, is the SEC’s cornerstone
system for storing and dissemi-
nating earnings announcements
and other news that often
moves stock prices. Edgar
stands for Electronic Data Gath-
ering, Analysis, and Retrieval
System.
The SEC has invested tens of
millions of dollars in recent
years to upgrade Edgar, which
was introduced in the early
1990s to equalize access to in-
formation between Wall Street
and Main Street.
Mr. Clayton, a former Wall
Street lawyer who kept a low
profile in the private sector,
faced a series of tough ques-
tions over the SEC’s cybersecu-
rity, including the agency’s
plans for a massive database
that will keep track of billions
of daily trades and orders in
U.S. stock and option markets.
Mr. Clayton, a former part-
ner at Sullivan & Cromwell LLP,
took office calling for deregula-
tory measures to make it easier
for companies to go public.
“Companies should be pro-
viding sooner disclosure about
intrusions that may affect
shareholder investment deci-
sions,” Mr. Clayton said. “Across
the landscape of our markets,
there should be better disclo-
sure as to the cyberrisks we
face.”
The SEC chairman disclosed
the Edgar breach last week in a
single paragraph within a five-
page statement on the agency’s
approach to cybersecurity. Fac-
ing stern questions from Mr.
Brown about the Equifax breach
and whether shareholders were
told soon enough after the com-
pany knew, Mr. Clayton said he
decided to disclose the SEC’s
own breach as soon as he had
enough information to accu-
rately inform market partici-
pants and investors. He said the
SEC has hired outside consul-
tants to test the vulnerability of
its systems.
“One of the worries in a situ-
ation like this is that when you
make a disclosure, other people
try to test and probe,” Mr. Clay-
ton said. “We are under con-
stant attack from nefarious ac-
tors.”
Greenhill Makes Play for Survival
Robert Greenhill, CEO
Scott Bok give firm
a $20 million lifeline
amid a deal slump
BY LIZ HOFFMAN
A Wall Street rainmaker is
fighting for his legacy.
Greenhill & Co., the invest-
ment bank founded 21 years
ago by star merger banker
Robert Greenhill, has fallen
into a prolonged deal-making
slump and this week sought a
financial lifeline from its
founder.
Mr. Greenhill, who remains
the firm’s chairman, and Scott
Bok, its chief executive,
said Monday they would invest
$20 million as part of a reor-
ganization that amounts to a
partial leveraged buyout.
In all, as much as half of
Greenhill’s shares will be held
by its employees. Also, tens of
millions of dollars a year that
had supported Greenhill’s
hefty dividend will be rerouted
to creditors.
Greenhill was one of Wall
Street’s first merger boutiques,
small firms that advise on
high-stakes corporate transac-
tions. Mr. Greenhill, an 81-
year-old banking veteran who
built his Rolodex at Morgan
Stanley and Smith Barney, pio-
neered a model that dozens of
top deal makers have followed.
Yet his firm has missed the
recent M&A boom, slipping in
the rankings and all but disap-
pearing from marquee deals.
Greenhill ranks 49th among
global merger advisers this
year, down from 16th in 2012,
according to data provider De-
alogic.
“They’ve had no momentum
for some time,” said Steven
Chubak, an analyst at Nomura.
The latest financial moves
“buy some time,” he added,
but change little if revenue
doesn’t pick up.
CFTC to Offer Firms More for Cooperation
BY GABRIEL T. RUBIN
A top U.S. markets regula-
tor unveiled a new enforce-
ment framework that relies
more heavily on firms to self-
report wrongdoing and gives
them new incentives to coop-
erate with probes.
James McDonald, the Com-
modity Futures Trading Com-
mission’s enforcement director,
announced the strategy during
a speech at New York Univer-
sity on Monday. Though the
agency already has incentives
to encourage firms to cooperate
with investigations, the new
framework says that penalties
will be reduced by a “substan-
tial” amount in cases where the
firm fully cooperates.
A Way to Magnify
Tech-Stock Bets
BY ALEXANDER OSIPOVICH
There will soon be a new,
riskier way to trade one of the
buzziest acronyms in the
world of technology stocks.
Intercontinental Exchange
Inc., the parent company of
the New York Stock Exchange,
said Tuesday it will launch a
futures contract based on its
new NYSE FANG+ Index.
The term “FANG” refers to
the quartet of Facebook Inc.,
Amazon.com Inc., Netflix Inc.,
and Google, whose parent
company is Alphabet Inc.
A new futures
contract highlights
ICE’s effort to hang
on to retail traders.
ICE’s contract will be a bit
broader than that.
It also will include Apple
Inc.—often bundled together
with the FANG foursome—as
well as Alibaba Group Hold-
ing Ltd., Baidu Inc., Nvidia
Corp., Tesla Inc. and Twitter
Inc.
The contract will start trad-
ing on Nov. 8, ICE said in a
statement.
There already is an ex-
change-traded fund with the
FINANCE & MARKETS
Greenhill CEO Scott Bok blamed a slowdown in Europe, where the firm once generated about half its revenue.
Greenhill shares through
Monday had fallen 48% this
year and 73% over the last
five, though shares were up
16% Tuesday afternoon follow-
ing the reorganization an-
nouncement. Over the same
five-year period, shares of ri-
val Evercore Inc. have nearly
tripled. Moelis & Co., another
boutique, is up 61% since its
2014 initial public offering.
Both have benefited from a
growing preference among
corporate clients for less con-
flicted advice.
Greenhill, though, has
missed out, showing the chal-
lenge in building a firm that
can outlast star founders—es-
pecially when his name is on
the door. Advisory revenue has
lurched sideways since 2010,
even as the firm has added
“No matter how much cor-
porate leaders may want to
foster compliance within the
company, when they detect
misconduct their decision
whether to voluntarily report
it often comes down to their
perception of whether they’ll
be treated fairly,” Mr.
McDonald said, according to
his prepared remarks.
The emphasis on rewarding
cooperation was already evi-
dent toward the end of the
Obama administration. In Jan-
uary, the CFTC adopted a set
of policies for nonprosecution
agreements to clarify what
type of cooperation from indi-
viduals and companies the reg-
ulator could reward as part of
an enforcement investigation.
ticker “FNG” that aims to
track the FANG stocks and
their close relatives in the
tech and new-media sectors.
Investors also can get expo-
sure to the FANG bunch by
simply buying shares in the
four companies directly, but
ICE’s new contract would be
the first futures contract tied
to the FANG concept, accord-
ing to an ICE spokesman.
Ready to jump in? Think
carefully. By buying equity fu-
tures contracts instead of
ETFs, traders can leverage
their bets in a bid to magnify
gains when the underlying
shares rise. Doing so also can
amplify losses if the shares
drop—and traders can even
find themselves in the hole,
owing more cash than they
put down in the first place.
The launch shows ICE’s ef-
fort to hang on to retail trad-
ers even as its rival, CME
Group Inc., has been making
inroads in that market.
CME recently has run tele-
vision commercials touting fu-
tures for day traders, and in
July, it began listing futures
based on the Russell 2000 in-
dex—a popular product for re-
tail investors—after buying
the rights to the index from
the London Stock Exchange
Group’s FTSE Russell unit.
For the 10 years before
that, Russell 2000 futures
were listed on ICE.
bankers and expanded into
new markets.
A tireless deal maker who
once snowmobiled 15 miles on
a vacation in rural Maine in
search of cellphone reception,
Mr. Greenhill has stepped back
from the business in recent
years, friends and employees
say. Relationships that drove
business in the firm’s early
years have gone quiet as key
contacts retire.
The job of finding the firm’s
mojo falls to Mr. Bok, a former
lawyer who trained under Mr.
Greenhill at Morgan Stanley.
Mr. Bok has brushed off
concerns in recent months,
noting that investment bank-
ing can be lumpy and blaming
a slowdown in Europe,
where Greenhill once gener-
ated about half its revenue.
“The CFTC, like the Depart-
ment of Justice and the Secu-
rities and Exchange Commis-
sion, has long made
incentivizing self-reporting by
companies, and cooperation by
individuals and companies, a
priority,” said Aitan Goelman,
Mr. McDonald’s predecessor as
the CFTC’s director of enforce-
ment who is now a partner at
Washington law firm Zucker-
man Spaeder. “I actually don’t
think that it’s that big of a
change substantively.”
The CFTC’s move comes as
Trump regulatory appointees
take a more industry-friendly
approach. Mr. Trump has ap-
pointed several top regulators
with Wall Street pedigrees, in-
cluding J. Christopher Gian-
BANK OF AMERICA
Merchant-Services
Venture Cuts Staff
Bank of America Corp.’s mer-
chant-services joint-venture has
laid off about 10% of its staff,
according to a person familiar
with the matter.
Bank of America Merchant
Services let go about 250 em-
ployees last week, the person
said. The business, operated in
conjunction with First Data Corp.
since 2009, earlier this year em-
ployed about 2,200 people.
On Sept. 20, “we announced
to employees a restructuring de-
signed to accelerate our busi-
ness strategy and better meet
merchants’ evolving expectations
in this increasingly digital era,” a
firm spokesman said. The unit is
trying to bolster the digital ser-
vices it provides to merchants
either through its own technol-
ogy or partnerships.
Merchant services involves
helping businesses handle debit-
and credit-card transactions.
—Rachel Louise Ensign
Advertisement
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Data as shown is for information purposes only. No offer is being made by
Morningstar, Ltd. or this publication. Funds shown aren’t registered with the
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THE WALL STREET JOURNAL.
CHRISTOPHER GOODNEY/BLOOMBERG NEWS
“Our business mix is one which Greenhill plans to slash
that has served investors well or, more likely, eliminate en-
over the long term and will, I tirely.
believe, do so again,” he said Instead, it will borrow $300
in an interview Monday. million from Goldman Sachs
In recent weeks, analysts Group Inc. to finance a buy-
had questioned whether back of more than one-third of
Greenhill could keep paying its its stock. Cash that once went
dividend. Set at $1.80 a share to stockholders will go to pay
annually, it costs about down debt.
$60 million, twice what ana- Goldman plans this week to
lysts expect Greenhill to earn start marketing the loan,
this year. which is expected to carry a
Top executives had fiercely below-investment-grade credit
guarded the payout. Mr. Bok, rating, according to people fa-
who received $1.4 million in miliar with the matter. With
dividends last year, more than the spike Tuesday, Greenhill
twice his $600,000 salary, said shares were approaching the
in 2011 that “you’d have to wa- $17-a-share buyback level an-
terboard me” before he’d con- nounced Monday. Analysts ex-
sider cutting it. pect the price to move higher
On Monday, he said inves- as investors cover previous
tors were no longer giving the “short” bets that the stock
firm credit for the payout, would decline.
whether regulators went too
far in their implementation of
the 2010 Dodd-Frank Act.
Perhaps anticipating the
criticism that the guidelines
could be seen in line with a
more industry-friendly ap-
ANDREW HARRER/BLOOMBERG NEWS
proach, Mr. McDonald said the
policy change “should not be
interpreted as giving a pass to
companies or individuals.”
To qualify for the incentives
that accompany self-reporting,
the company must voluntarily
report wrongdoing to the
CFTC, and not be under the
The regulator will reduce threat of investigation. The
penalties in some cases. disclosure of wrongdoing must
also be explicit and not
carlo, the CFTC chairman, who “tucked away in the depths of
has said he wants to simplify some compliance report,” Mr.
existing rules and reassess McDonald added.
FINANCE WATCH
HURRICANE MARIA mate is higher than for Hurri-
cane Harvey, which made land-
Insured Loss Is Seen fall in Texas in August, and
At Up to $85 Million Hurricane Irma, which passed
through the Caribbean before
Hurricane Maria caused an reaching Florida this month.
estimated $40 billion to $85 bil- Harvey caused more than $10
lion in insured losses, mostly in billion in insured losses, AIR said,
Puerto Rico, the catastrophe- not including losses borne by
modeling firm AIR Worldwide the National Flood Insurance
said. Program, which provides most
Maria was the worst storm residential flood insurance. Irma
to hit Puerto Rico since 1928. caused $32 billion to $50 billion
More than 85% of the insured in insured losses in the U.S. and
loss took place there, AIR said the Caribbean, according to AIR.
on Monday. The preliminary esti- —Nicole Friedman
CHRISTOPHER DILTS/BLOOMBERG NEWS
Bank of America operates the business with First Data Corp.
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 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
artphone factory in Indonesia last year. Investors have embraced the country’s debt amid optimism about the economy.
Bond Darlings: India, Indonesia
AUMYA VAISHAMPAYAN
vestors are rushing into
ond markets of India and
nesia, drawn by rich yields
he rosy growth prospects
untries that a few years
were considered among the
vulnerable emerging mar-
e two countries have to-
er captured almost one-
of emerging-market bond
nflows this year through
st, according to data from
nstitute of International Fi-
e, a trade group.
ices of government bonds
th countries have rallied in
nt months. That has
ght yields down, though
remain higher than those
quivalent bonds in the U.S.
Europe. The yield on India’s
ar government bonds has
n to 6.619% from 6.711% six
hs ago, when more than $1
n in net flows started pour-
nto the country’s debt mar-
Yields fall when bond prices
Indonesia, the 10-year
yield has fallen to 6.310%
Enjoy VIP
Perks at
The Norman
from 7.094% in the past six
months. That yield was nearly
8% at the end of 2016, following
heavy outflows from emerging
markets after Donald Trump
won the U.S. election.
As with any popular trade,
the worry is that the first sign
of trouble could send investors
running, especially in countries
where they hold sizable bets.
Such shocks could come from a
faster-than-expected pace of
U.S. interest-rate increases or a
slowdown in Chinese growth,
analysts say.
“When volatility in the mar-
ket comes back, those are posi-
tions that are probably the first
ones to be hit,” said Roland Mi-
eth, emerging-markets portfolio
manager at Pacific Investment
Management Co. in Singapore.
Four years ago, foreign inves-
tors started dumping Indian and
Indonesian debt after the U.S.
Federal Reserve indicated it
would gradually wind down its
bond-buying program.
Signs that U.S. and European
central banks are preparing to
reverse loose monetary policy
haven’t triggered lasting routs
WSJ TALK / E XPERIENCE / OFFE R / GE TAWAY
FINANCE & MARKETS
in Indian and Indonesian bonds.
Indian bond yields rose last
Thursday after the Fed said it
would start shrinking its bond
portfolio, as expected.
One reason for investor
steadiness is that long-term in-
stitutional investors are increas-
ingly investing in Indian and In-
donesian debt, as opposed to
shorter-term investors like
hedge funds, said Rob Subbara-
man, chief economist, Asia ex-
Japan at Nomura.
Investors say they are also
banking on the success of eco-
nomic overhauls in both coun-
tries.
Nonresident investors
bought a net $2.72 billion of In-
dian sovereign and corporate
debt in August—17% of total
emerging-market bond in-
flows—according to the Insti-
tute of International Finance.
Those investors plowed a net
$907 million into Indonesian
bonds last month. For the year,
investors have poured a net
$20.2 billion and $9.1 billion
into Indian and Indonesian debt
markets, respectively.
With the influx of cash, for-
eign ownership of rupiah-de-
nominated Indonesian govern-
ment bonds rose to 39.5% at the
end of the second quarter, the
highest in two years, according
to data from the Asian Develop-
ment Bank.
Foreign ownership of Indian
bonds is low—4.2% as of July,
according to ANZ—because of
limits imposed by the country’s
central bank.
Ken Hu, chief investment of-
ficer for Asia-Pacific fixed in-
come at Invesco in Hong Kong,
says he has been participating
in Indian government-bond auc-
tions almost every week as he
tried to add to his holdings of
local-currency debt in the coun-
try. He says efforts such as In-
dian Prime Minister Narendra
Modi’s goods-and-services tax,
which replaced a complex sys-
tem of state and local taxes with
a type of value-added tax, and
Indonesian President Joko
Widodo’s campaign to boost In-
donesian manufacturing are
reasons why he likes bonds in
both countries.
—Jon Emont
contributed to this article.
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Tech Stocks Regain
Strength in the U.S.
BY MICHAEL WURSTHORN
AND MARINA FORCE
Resurging shares of tech-
nology companies helped the
Nasdaq Composite eke out a
slight gain.
The tech-heavy Nasdaq
Composite rose 9.57 points, or
0.2%, to
TUESDAY’S 6380.16, while
MARKETS the S&P 500
rose less than a
point to
2496.84.
The Dow Jones Industrial
Average slipped 11.77 points, or
less than 0.1%, to 22284.32, its
fourth straight session of de-
clines.
Tensions that had flared up
Monday between the U.S. and
North Korea were put on pause
Tuesday, giving investors con-
fidence to take advantage of
recent declines, analysts said.
“Investors are looking to
pick up things that have fallen
down a little bit,” said Chris
Wolfe, chief investment officer
at First Republic Bank’s
wealth-management arm. With
bond yields still relatively low,
“you get into a place where eq-
uities are the only game in
town,” he added.
In Europe, the Stoxx Europe
600 was little changed at
384.03.
Shares of tech companies in
the S&P 500, which have been
big contributors to this year’s
gains in the U.S. stock market,
climbed 0.6% in late trading.
Software maker Red Hat
The software firm Red Hat reported better-than-expected res
rose 4.6% after it repo
higher-than-expected p
and revenue for the l
quarter. Chip maker N
added 1.5% and shares of
ple, which have tumbled
month, gained 2.1% in
trading.
Investors pulled back
assets they consider to be
tively safe. Gold for Septem
delivery fell 0.7% to $1,29
and the dollar rose
against the Japanese
which tends to rise when
kets slide.
Tensions with North K
had ramped up Monday
the foreign minister wa
the country would shoot d
U.S. warplanes even if
were outside its airsp
White House officials
missed talk of war.
Meanwhile, Federal Res
Chairwoman Janet Yellen
fended the central bank’s
jection for a gradual pat
interest-rate increases
the next few years w
speaking at an economic
ference in Cleveland on T
day. Officials last week hi
the central bank would
rates once more this year
However, Ms. Yellen a
that if low inflation persis
could lead to a slightly sl
pace of rate rises.
The yield on the benchm
10-year Treasury note ro
2.229% Tuesday, accordin
Tradeweb, from 2.220% M
day. Yields rise as bond p
fall.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B8 | Wednesday, September 27, 2017 THE WALL STREET JOURNAL.

MARKETS DIGEST
Nikkei 225 Index STOXX 600 Index S&P 500 Index Data as of 4 p.m. New York time
Last Year ago
20330.19 t 67.39, or 0.33% Year-to-date s 6.36% 384.03 s 0.13, or 0.03% Year-to-date s 6.26% 2496.84 s 0.18, or 0.01% Trailing P/E ratio 24.25 24.81
High, low, open and close for each 52-wk high/low 20397.58 16251.54 High, low, open and close for each 52-wk high/low 396.45 328.80 High, low, open and close for each P/E estimate * 19.14 18.43
trading day of the past three months. All-time high 38915.87 12/29/89 trading day of the past three months. All-time high 414.06 4/15/15 trading day of the past three months. Dividend yield 1.99 2.13
All-time high: 2508.24, 09/20/17

Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.

20500 65-day moving average 390 2525

Session high
DOWN UP
t

Session open Close

20250 385 2500
Close Open
t

Session low 20000 380 2475

19750 375 2450

19500 370 2425

65-day moving average

19250 365 2400

65-day moving average
Bars measure the point change from session's open
19000 360 2375
June July Aug. Sept. June July Aug. Sept. June July Aug. Sept.

International Stock Indexes Data as of 4 p.m. New York time Global government bonds
Latest 52-Week Range YTD Latest, month-ago and year-ago yields and spreads over or under U.S. Treasurys on benchmark two-year
Region/Country Index Close NetChg % chg Low Close High % chg and 10-year government bonds around the world. Data as of 3 p.m. ET
World The Global Dow 2891.73 –8.10 –0.28 2386.93 • 2910.53 14.4 Country/ Spread Over Treasurys, in basis points Yield
MSCI EAFE 1958.95 –11.27 –0.57 1614.17 • 1981.49 14.1 Coupon Maturity, in years Yield Latest Previous Month Ago Year ago Previous Month ago Year ago
MSCI EM USD 1079.89 –8.37 –0.77 838.96 • 1112.92 36.0 2.750 Australia 2 1.957 51.7 54.4 50.2 86.8 1.971 1.840 1.606
2.750 10 2.781 54.9 58.7 48.9 39.8 2.807 2.657 1.980
Americas DJ Americas 603.19 –0.19 –0.03 503.44 • 606.05 11.6
3.000 Belgium 2 -198.8 -190.4 -135.8 -0.552 -0.566 -0.621
-0.548 -197.9
Brazil Sao Paulo Bovespa 74500.62 57.15 0.08 56828.56 • 76419.58 23.7
0.800 10 0.696 -153.6 -152.2 -147.2 -146.1 0.698 0.695 0.122
Canada S&P/TSX Comp 15479.01 –37.22 –0.24 14468.03 • 15943.09 1.3
0.000 France 2 -0.513 -195.3 -194.0 -183.6 -134.7 -0.513 -0.499 -0.609
Mexico IPC All-Share 50356.00 –12.17 –0.02 43998.98 • 51772.37 10.3
1.000 10 0.705 -152.6 -152.1 -147.3 -139.2 0.699 0.694 0.190
Chile Santiago IPSA 3996.11 1.81 0.05 3120.87 • 4023.41 24.0
0.000 Germany 2 -0.715 -215.4 -213.3 -206.7 -141.3 -0.706 -0.730 -0.675
U.S. DJIA 22284.32 –11.77 –0.05 17883.56 • 22419.51 12.8
0.500 10 0.410 -182.1 -181.7 -178.9 -169.6 0.403 0.379 -0.114
Nasdaq Composite 6380.16 9.57 0.15 5034.41 • 6477.77 18.5
0.050 Italy 2 -0.107 -154.6 -153.4 -136.4 -86.1 -0.107 -0.026 -0.124
S&P 500 2496.84 0.18 0.01 2083.79 • 2508.85 11.5
2.200 10 2.115 -11.7 -11.5 -6.8 -39.2 2.105 2.099 1.190
CBOE Volatility 10.12 –0.09 –0.88 8.84 • 23.01 –27.9
0.100 Japan 2 -0.136 -157.6 -156.4 -149.6 -96.1 -0.137 -0.159 -0.224
EMEA Stoxx Europe 600 384.03 0.13 0.03 328.80 • 396.45 6.3 0.100 10 0.030 -220.2 -219.6 -215.4 -164.1 0.024 0.014 -0.058
Stoxx Europe 50 3142.25 5.57 0.18 2720.66 • 3279.71 4.4 4.000 Netherlands 2 -0.709 -214.8 -213.0 -202.2 -138.4 -0.703 -0.684 -0.646
Austria ATX 3291.55 –9.56 –0.29 2357.57 • 3312.67 25.7 0.750 10 0.534 -169.7 -169.5 -165.2 -157.6 0.525 0.516 0.006
Belgium Bel-20 3968.48 5.28 0.13 3384.68 • 4055.96 10.0 4.750 Portugal 2 -0.076 -151.6 -149.6 -135.0 -31.1 -0.069 -0.012 0.427
France CAC 40 5268.76 1.63 0.03 4342.64 • 5442.10 8.4 4.125 10 2.391 15.9 21.1 67.6 178.0 2.431 2.843 3.362
Germany DAX 12605.20 10.39 0.08 10174.92 • 12951.54 9.8 2.750 Spain 2 -0.308 -174.8 -174.4 -168.5 -93.5 -0.317 -0.348 -0.198
Greece ATG 740.37 –2.12 –0.29 559.92 • 859.78 15.0 1.450 10 1.605 -62.7 -60.5 -56.8 -66.1 1.615 1.600 0.921
Hungary BUX 37319.24 –788.63 –2.07 27466.59 • 38554.44 16.6 4.250 Sweden 2 -0.687 -212.6 -212.5 -200.9 -140.8 -0.698 -0.671 -0.670
Israel Tel Aviv 1418.20 1.00 0.07 1346.71 • 1490.23 –3.6 1.000 10 0.645 -158.7 -159.6 -156.2 -140.4 0.624 0.606 0.178
Italy FTSE MIB 22430.65 41.08 0.18 15923.11 • 22613.48 16.6 1.750 U.K. 2 0.447 -99.3 -99.3 -115.8 -66.3 0.435 0.179 0.074
Netherlands AEX 528.50 0.72 0.14 436.28 • 537.84 9.4 4.250 10 1.333 -89.9 -88.4 -111.4 -98.6 1.336 1.054 0.597
Poland WIG 63700.76 –195.08 –0.31 46674.28 • 65611.21 23.1 1.250 U.S. 2 1.440 ... ... ... ... 1.427 1.338 0.738
Russia RTS Index 1127.26 –3.28 –0.29 956.36 • 1196.99 –2.2 2.250 10 2.232 ... ... ... ... 2.220 2.168 1.582
Spain IBEX 35 10189.60 –26.90 –0.26 8512.40 • 11184.40 9.0
Sweden SX All Share 576.03 1.21 0.21 489.12 • 598.42 7.8 Commodities Prices of futures contracts with the most open interest 3:30 p.m. New York time
Switzerland Swiss Market 9113.65 –26.82 –0.29 7585.56 • 9198.45 10.9 EXCHANGE LEGEND: CBOT: Chicago Board of Trade; CME: Chicago Mercantile Exchange; ICE-US: ICE Futures U.S.; MDEX: Bursa Malaysia
South Africa Johannesburg All Share 55070.38 –769.35 –1.38 48935.90 • 56896.89 8.7 Derivatives Berhad; TCE: Tokyo Commodity Exchange; COMEX: Commodity Exchange; LME: London Metal Exchange;
NYMEX: New York Mercantile Exchange; ICE-EU: ICE Futures Europe. *Data as of 9/25/2017
Turkey BIST 100 103929.33 1659.16 1.62 71792.96 • 110530.75 33.0
One-Day Change Year Year
U.K. FTSE 100 7285.74 –15.55 –0.21 6676.56 • 7598.99 2.0 Commodity Exchange Last price Net Percentage high low

Asia-Pacific Corn (cents/bu.) CBOT 354.00 0.25 0.07% 417.25 344.25

Soybeans (cents/bu.) 964.00 -7.25 -0.75% 1,047.00 907.00
Australia S&P/ASX 200 5671.00 –12.70 –0.22 5156.60 • 5956.50 0.1
Wheat (cents/bu.)
CBOT
CBOT 456.50 2.50 0.55 592.25 422.50
China Shanghai Composite 3343.58 2.03 0.06 2987.86 • 3385.39 7.7
Live cattle (cents/lb.) CME 113.525 -0.900 -0.79 122.850 99.825
Hong Kong Hang Seng 27513.01 12.67 0.05 21574.76 • 28159.77 25.1
Cocoa ($/ton) ICE-US 1,971 -1 -0.05 2,301 1,794
India S&P BSE Sensex 31599.76 –26.87 –0.08 25765.14 • 32575.17 18.7
Coffee (cents/lb.) ICE-US 131.90 0.35 0.27 166.75 119.10
Japan Nikkei Stock Avg 20330.19 –67.39 –0.33 16251.54 • 20397.58 6.4
Sugar (cents/lb.) ICE-US 13.96 -0.39 -2.72 20.40 13.50
Singapore Straits Times 3212.04 –3.87 –0.12 2787.27 • 3354.71 11.5
Cotton (cents/lb.) ICE-US 68.87 -0.59 -0.85 75.75 66.15
South Korea Kospi 2374.32 –6.08 –0.26 1958.38 • 2451.53 17.2 Robusta coffee ($/ton) ICE-EU 2000.00 -6.00 -0.30 2,272.00 1,892.00
Taiwan Weighted 10257.02 –78.87 –0.76 8931.03 • 10631.57 10.8
Copper ($/lb.) COMEX 2.9145 -0.0230 -0.78 3.1785 2.5025
Source: SIX Financial Information;WSJ Market Data Group Gold ($/troy oz.) COMEX 1303.20 -8.30 -0.63 1,362.40 1,160.80
Silver ($/troy oz.) COMEX 16.930 -0.217 -1.27 18.875 14.440
Currencies London close on Sept. 26 Aluminum ($/mt)* LME 2,148.00 -12.00 -0.56 2,191.00 1,688.50
Tin ($/mt)* LME 20,600.00 -25.00 -0.12 21,225.00 18,760.00
Yen, euro vs. dollar; dollar vs. major U.S. trading partners US$vs,
Tue YTDchg Copper ($/mt)* LME 6,460.00 10.00 0.16 6,937.00 5,491.00
Country/currency in US$ per US$ (%) Lead ($/mt)* LME 2,509.00 29.00 1.17 2,509.00 2,022.00
10% Europe Zinc ($/mt)* LME 3,105.00 28.00 0.91 3,195.00 2,450.50
WSJ Dollar index s Bulgaria lev 0.6018 1.6616 –10.6 Nickel ($/mt)* LME 10,480.00 -170.00 -1.60 12,220.00 8,780.00
Croatia kuna 0.1571 6.364 –11.3 Rubber (Y.01/ton) TCE 216.00 unch. unch. n.a. n.a.
0
Euro zone euro 1.1772 0.8495 –10.6
s
Czech Rep. koruna-b 0.0452 22.128 –13.9 Palm oil (MYR/mt) MDEX 2749.00 58.00 2.16 2876.00 2436.00
Euro
–10 Denmark krone 0.1582 6.3216 –10.6 Crude oil ($/bbl.) NYMEX 51.93 -0.29 -0.56 58.37 42.84
s Hungary forint 0.003780 264.55 –10.1 NY Harbor ULSD ($/gal.) NYMEX 1.8319 -0.0176 -0.95 1.8586 1.3943
Yen Iceland krona 0.009268 107.90 –4.5 RBOB gasoline ($/gal.) NYMEX 1.6560 -0.0114 -0.68 1.6822 1.2736
–20 Norway krone 0.1264 7.9136 –8.5
0.2744 3.6442 –13.0
Natural gas ($/mmBtu) NYMEX 2.994 0.006 0.20 3.5960 2.8860
2016 2017 Poland zloty
Russia ruble-d 0.01724 58.003 –5.3 Brent crude ($/bbl.) ICE-EU 57.82 -0.61 -1.04 60.09 45.51
US$vs, US$vs,
YTDchg YTDchg Sweden krona 0.1227 8.1487 –10.5 Gas oil ($/ton) ICE-EU 541.25 -3.75 -0.69 550.50 410.00
Tue Tue
Country/currency in US$ per US$ (%) Country/currency in US$ per US$ (%) Switzerland franc 1.0302 0.9707 –4.7
Turkey lira 0.2813 3.5550 0.9 Sources: SIX Financial Information; WSJ Market Data Group
Americas Hong Kong dollar 0.1280 7.8130 0.7
Ukraine hryvnia 0.0379 26.4185 –2.5
Argentina peso-a 0.0569 17.5750 10.7
India rupee
Indonesia rupiah
0.0153
0.0000747
65.4400
13380
–3.7
–1.1
U.K. pound 1.3422 0.7450 –8.0 Cross rates London close on Sep 26
Brazil real 0.3155 3.1696 –2.6 Middle East/Africa
Japan yen 0.008913 112.19 –4.1
Canada dollar 0.8071 1.2391 –7.8 USD GBP CHF JPY HKD EUR CDN AUD
Kazakhstan tenge 0.002943 339.76 1.8 Bahrain dinar 2.6522 0.3771 –0.03
Chile peso 0.001573 635.60 –5.1 Australia 1.2695 1.7042 1.3079 0.0113 0.1625 1.4945 1.0249 ...
Macau pataca 0.1242 8.0484 1.7 Egypt pound-a 0.0566 17.6780 –2.5
Colombia peso 0.0003409 2933.67 –2.3 Canada 1.2391 1.6630 1.2765 0.0110 0.1586 1.4583 ... 0.9758
Malaysia ringgit-c 0.2374 4.2130 –6.1 Israel shekel 0.2834 3.5282 –8.3
Ecuador US dollar-f 1 1 unch
New Zealand dollar 0.7184 1.3920 –3.6 Kuwait dinar 3.3131 0.3018 –1.2 Euro 0.8495 1.1405 0.8751 0.0076 0.1087 ... 0.6858 0.6691
Mexico peso-a 0.0555 18.0128 –13.1
Pakistan rupee 0.0095 105.370 1.0 Oman sul rial 2.5974 0.3850 0.01 Hong Kong 7.8130 10.4865 8.0488 0.0696 ... 9.1962 6.3056 6.1535
Peru sol 0.3057 3.2712 –2.4
Philippines peso 0.0196 50.972 2.8 Qatar rial 0.2696 3.709 1.9 Japan 112.1910 150.5700 115.5700 ... 14.3600 132.0600 90.5500 88.3500
Uruguay peso-e 0.0346 28.870 –1.6
Singapore dollar 0.7374 1.3561 –6.3 Saudi Arabia riyal 0.2666 3.7503 –0.01 0.9707 1.3029 ... 0.0087 0.1242 1.1428 0.7834 0.7646
Venezuela bolivar 0.100060 9.99 –0.01 Switzerland
South Korea won 0.0008778 1139.23 –5.7 South Africa rand 0.0746 13.4078 –2.1
U.K. 0.7450 ... 0.7675 0.0066 0.0954 0.8770 0.6013 0.5868
Asia-Pacific Sri Lanka rupee 0.0065355 153.01 3.1 Close Net Chg % Chg YTD % Chg
0.7877 1.2695 –8.6 Taiwan dollar 0.03310 30.216 –6.9 U.S. ... 1.3422 1.0302 0.0089 0.1280 1.1772 0.8071 0.7877
Australia dollar WSJ Dollar Index 86.24 0.42 0.49 –7.21
China yuan 0.1507 6.6340 –4.5 Thailand baht 0.03010 33.220 –7.2 Sources: Tullett Prebon, WSJ Market Data Group Source: Tullett Prebon

Key Rates Top Stock Listings 4 p.m. New York time

Latest 52 wks ago % YTD% % YTD% % YTD%
Libor Cur Stock Sym Last Chg Chg Cur Stock Sym Last Chg Chg Cur Stock Sym Last Chg Chg Asia Titans 50
One month 1.23444% 0.52667% ¥ TakedaPharm 4502 6156.00 -0.40 27.32 CHF RocheHldgctf ROG 246.80 -1.28 6.10 Last: 166.87 t 1.52, or 0.91% YTD s 18.4%
Three month 1.33083 0.85378 Asia Titans HK$ TencentHoldings 0700 337.60 -1.17 77.97 £ RoyDtchShell A RDSA 2228.00 0.84 -0.65
Six month 1.49711 1.24194 HK$ AIAGroup 1299 58.30 -1.52 33.26 ¥ TokioMarineHldg 8766 4446.00 -0.40 -7.30 € SAP SAP 91.42 -0.50 10.40 High 170
One year 1.77567 1.55122 84.56 -0.09 9.96
AU$ AustNZBk ANZ 29.86 -0.47 -1.84 ¥ ToyotaMtr 7203 6815.00 0.46 -0.92 € Sanofi SAN Close 165
Euro Libor AU$ BHP BHP 25.79 -0.73 2.91 AU$ Wesfarmers WES 41.21 0.34 -2.21 € SchneiderElectric SU 72.15 -0.11 9.14 Low t 160
One month -0.40214% -0.37571% HK$ BankofChina 3988 3.91 0.26 13.66 AU$ WestpacBanking WBC 31.89 0.09 -2.18 € Siemens SIE 116.55 -0.09 -0.21
Three month -0.37900 -0.32186 HK$ CKHutchison 0001 99.40 0.10 13.08 AU$ Woolworths WOW 25.30 0.44 4.98 € Telefonica TEF 8.97 -0.34 1.75 50–day 155
Six month -0.30571 -0.21129 AU$ CSL CSL 132.53 -0.99 31.99 € Total FP 45.26 -0.82 -4.30 moving average 150
One year -0.21943 -0.07971 ¥ Canon 7751 3799.00 -0.08 15.30 Stoxx 50 CHF UBSGroup UBSG 16.21 -0.49 1.63
145
Euribor ¥ CentralJapanRwy 9022 20000 2.70 4.00 € Unilever UNA 49.49 0.16 26.52
CHF ABB ABBN 23.78 -0.63 10.71
One month -0.37100% -0.37100% HK$ ChinaConstructnBk 0939 6.51 ... 9.05 £ Unilever ULVR 4274.00 0.12 29.81 30 7 14 21 28 4 11 18 25 1 8 15 22
€ ASMLHolding ASML 137.45 0.26 28.88
Three month -0.32900 -0.30100 HK$ ChinaLifeInsurance 2628 23.45 ... 16.09 € Vinci DG 80.14 0.18 23.86 July Aug. Sept.
€ AXA CS 24.66 -0.44 2.79
Six month -0.27300 -0.20100 HK$ ChinaMobile 0941 79.85 1.01 -2.86 £ VodafoneGroup VOD 208.50 -0.31 4.33
€ AirLiquide AI 111.50 1.46 5.54
One year -0.17100 -0.06000 HK$ ChinaPetro&Chem 0386 5.91 1.72 7.45 CHF ZurichInsurance ZURN 284.20 -0.73 1.36
185.45
Yen Libor AU$ CmwlthBkAust CBA 75.10 -0.94 -8.87
€
€
Allianz
AB InBev
ALV
ABI 99.32
-0.13 18.12
0.60 -1.22 DJIA Stoxx 50
One month -0.04750% -0.07371% ¥ EastJapanRailway 9020 10455 0.63 3.51 £ AstraZeneca AZN 4888.00 -0.85 10.15 Last: 3142.25 s 5.57, or 0.18% YTD s 4.4%
Three month -0.03264 -0.02343 ¥ Fanuc 6954 22690 -1.33 14.51 € BASF BAS 88.89 0.29 0.66
$ AmericanExpress AXP 88.73 0.59 19.78
Six month 0.00057 0.00421 ¥ Hitachi 6501 784.10 -0.87 24.07 € BNP Paribas BNP 66.15 -0.27 9.25
$ Apple AAPL 153.14 1.72 32.22 3275
One year 0.10471 0.10429 TW$ Hon Hai Precisn 2317 103.50 -1.43 22.92 £ BT Group BT.A 285.50 -0.51 -22.19
$ Boeing BA 253.81 -0.20 63.03
$ Caterpillar CAT 124.54 0.18 34.29 3200
Offer Bid ¥ HondaMotor 7267 3360.00 -0.06 -1.61 € BancoBilVizAr BBVA 7.35 -0.27 15.68
KRW HyundaiMtr 005380 147500 4.61 1.03 $ Chevron CVX 117.55 -0.37 -0.13 3125
Eurodollars € BancoSantander SAN 5.67 -0.14 14.26
HK$ Ind&Comml 1398 5.74 0.53 23.44 $ CiscoSystems CSCO 33.76 0.12 11.71
One month 1.3500% 1.2500% £ Barclays BARC 188.30 -0.74 -15.73 3050
$ Infosys INFY 14.34 0.17 -3.34 $ Coca-Cola KO 45.59 -0.22 9.96
Three month 1.4100 1.3100 € Bayer BAYN 112.40 0.45 13.39
2975
¥ JapanTobacco 2914 3687.00 0.19 -4.08 $ Disney DIS 98.67 -0.90 -5.33
Six month 1.5700 1.4700 £ BP BP. 471.55 -0.18 -7.47
$ DowDuPont DWDP 69.38 -1.37 3.27
One year 1.8700 1.7700 ¥ KDDI 9433 3021.00 0.53 2.08 £ BritishAmTob BATS 4650.00 1.42 0.62 2900
¥ Mitsubishi 2631.50 0.52 5.68
$ ExxonMobil XOM 80.89 -0.11 -10.38
Latest 52 wks ago 8058 € Daimler DAI 66.74 0.06 -5.63 $ GeneralElec GE 24.93 -0.72 -21.11 30 7 14 21 28 4 11 18 25 1 8 15 22
¥ MitsubishiElectric 6503 1744.50 -0.29 7.06 € DeutscheTelekom DTE 15.72 0.74 -2.89 $ July Aug. Sept.
Prime rates GoldmanSachs GS 230.02 -0.10 -3.94
¥ MitsubishiUFJFin 8306 719.70 0.10 -0.07 £ Diageo DGE 2428.50 -0.33 15.09 $
U.S. 4.25% 3.50% HomeDepot HD 161.27 0.11 20.28
¥ Mitsui 8031 1696.00 0.30 5.54 € ENI ENI 13.99 0.36 -9.57 $
Canada 3.20 2.70 Intel INTC 37.47 0.83 3.31
199.70 0.45 -4.81 1482.00
Japan
Hong Kong
1.475
5.00
1.475
5.00
¥
¥
Mizuho Fin
NTTDoCoMo
8411
9437 2602.00 0.58 -2.29
£
£
GlaxoSmithKline
Glencore
GSK
GLEN 341.90
0.14 -5.12 $
-0.64 23.27 $
IBM
JPMorganChase
IBM
JPM
146.61
93.70
0.51 -11.68
-0.45 8.59
Dow Jones Industrial Average P/E: 20
AU$ NatAustBnk NAB 31.33 0.16 2.15 £ HSBC Hldgs HSBA 719.30 -0.26 9.50 $ J&J JNJ 130.93 -0.18 13.64 Last: 22284.32 t 11.77, or 0.05% YTD s 12.8%
Policy rates
ECB 0.00% 0.00%
¥ Nintendo 7974 40420 -1.89 64.71 € INGGroep INGA 15.26 0.13 14.10 $ McDonalds MCD 153.36 -1.86 25.99
Britain 0.25 0.25
¥ NipponTeleg 9432 5257.00 2.28 7.02 £ ImperialBrands IMB 3274.50 1.50 -7.57 $ Merck MRK 64.78 -0.61 10.04 22500
Switzerland 0.50 0.50
¥ NissanMotor 7201 1159.00 0.30 -1.40 € IntesaSanpaolo ISP 2.97 0.61 22.59 $ Microsoft MSFT 73.26 ... 17.90
¥ Panasonic 6752 1599.00 -0.74 34.43 € LVMHMoetHennessy MC 231.35 0.26 27.54 $ Nike NKE 53.72 0.92 5.69
22000
Australia 1.50 1.50
HK$ PingAnInsofChina 2318 60.70 -0.25 56.44 £ LloydsBankingGroup LLOY 64.99 -1.34 3.97 $ Pfizer PFE 35.30 -0.59 8.68
U.S. discount 1.75 1.00 21500
Fed-funds target 1.00-1.25 0.25-0.50
$ RelianceIndsGDR RIGD 25.00 -0.99 58.48 € LOreal OR 181.05 -0.44 4.41 $ Procter&Gamble PG 92.68 -0.04 10.23
Call money 3.00 2.25
KRW SamsungElectronics 005930 2583000 -3.66 43.34 £ NationalGrid NG. 943.20 -0.49 -9.14 $ 3M MMM 211.11 0.18 18.22 21000
¥ Seven&I Hldgs 3382 4363.00 0.86 -2.02 CHF Nestle NESN 82.55 1.79 13.00 $ Travelers TRV 122.61 -0.05 0.16
Overnight repurchase rates 20500
U.S. 1.03% 0.78%
¥ SoftBankGroup 9984 9036.00 -1.35 16.37 CHF Novartis NOVN 82.90 -1.13 11.88 $ UnitedTech UTX 114.73 0.38 4.66
Euro zone n.a. n.a.
¥ Sony 6758 4099.00 -2.03 25.16 DKK NovoNordiskB NOVO-B 303.60 -1.62 19.20 $ UnitedHealth UNH 192.73 0.51 20.43 30 7 14 21 28 4 11 18 25 1 8 15 22
¥ Sumitomo Mitsui 8316 4312.00 0.14 -3.32 £ Prudential PRU 1716.50 -1.44 5.47 $ Visa V 102.96 -0.06 31.97 July Aug. Sept.
Sources: WSJ Market Data Group, SIX HK$ SunHngKaiPrp 0016 126.00 -0.16 28.57 £ ReckittBenckiser RB. 6790.00 -0.54 -1.39 $ Verizon VZ 49.51 -0.78 -7.25 Note: Price-to-earnings ratios are for trailing 12 months
Financial Information, Tullett TW$ TaiwanSemiMfg 2330 214.00 -1.38 17.91 £ RioTinto RIO 3417.00 -0.55 8.18 $ Wal-Mart WMT 79.41 0.33 14.89 Sources: WSJ Market Data Group; Birinyi Associates
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL.
Warehouse
Rents Get
Online Boost
Rise of e-commerce
gives landlords more
pricing power as
demand climbs
BY ESTHER FUNG
The growth of online shop-
ping is setting off a scramble
for industrial real estate near
urban centers, giving land-
lords of once unglamorous
properties a chance to push
up rents to record levels.
Amazon.com Inc. and other
online retailers, as well as ful-
fillment companies such as
FedEx Corp., are seeking out
“last-mile” locations in urban
areas to feed consumer de-
mand for ever-faster delivery
of their purchases.
That, in turn, is giving
landlords of such facilities
pricing power they never have
enjoyed before.
On average, U.S. industrial
rents stood at a record $5.35 a
square foot in the second
quarter, up from $5.25 in the
first quarter, according to
data from real-estate services
firm JLL.
A well-located last-mile fa-
cility “has the functional
equivalent of a high-end retail
store,” said Hamid Moghadam,
chairman and chief executive
officer of industrial real-estate
investment trust Prologis Inc.
Such facilities are produc-
Builder Lures Millennials With Student-Loan Help
BY LAURA KUSISTO
Student-loan debt has been
an obstacle for many potential
home buyers. Now, Lennar
Corp. is trying to do some-
thing about it.
A subsidiary called Eagle
Home Mortgage introduced on
Tuesday a program under
which it will pay off a signifi-
cant chunk of the student loan
of a borrower who purchases a
home from Miami-based Len-
nar.
Housing observers said
other builders are likely to
look to mimic the program,
which could help lure more of
the critical first-time-buyer
segment into home purchases.
Such programs come with
the risk, however, that the in-
centive drives up the price of
new homes.
“Obviously there’s a benefit
to bringing more people into
the home buying market.
We’re trying to design some-
thing here that supports af-
fordability and creates that
path to homeownership,” said
Doug Cropsey, a senior vice
president at Eagle.
Eagle will make a payment
to a buyer’s student loans of
as much as 3% of the purchase
price, up to $13,000. The con-
tribution doesn’t directly in-
crease the purchase price of
the home or add to the bal-
ance of the loan.
Christopher Oquendo and
In Puerto Rico, Some Hotels Likely to Emerge Stronger
BY PETER GRANT
AND CHRIS KIRKHAM
In recent years, as Puerto
Rico’s debt woes have
mounted, investors like hedge-
fund manager John Paulson
have made big bets on the U.S.
territory’s recovery by buying
hotels at discounted prices.
Those investments now face
an uncertain future in the
wake of Hurricane Maria,
which left Puerto Rico in ru-
ins. The extent of the damage
from the second major storm
to hit the island this month
may not be known for days
and the recovery period could
take months, if not years.
Tourism, the lifeblood of the
Puerto Rico lodging business,
is likely to be moribund for
the indefinite future. At this
point, officials don’t know how
long it will take to restore
electricity to the island.
But that doesn’t mean the
hotel investments can’t be sal-
vaged. Much will depend on
insurance. Business policies
tive for the tenant and reduce
transportation and labor
costs. But they also are scarce,
prompting some landlords to
get creative.
Prologis, a San Francisco-
based REIT, purchased the old
ABC Carpet building in the
Bronx this year to convert to
warehouse space. It expects to
get rents in the low $20 a
square foot, which would be
comparable with some office
and retail asking rents in the
area.
When a company is ship-
ping to individual customers
rather than in bulk to stores,
most of their costs are in
transportation and labor, and
reducing them is a priority,
said Eric Frankel, an analyst
at real-estate research firm
Green Street Advisors. Ware-
house rent, by contrast, repre-
sents just 5% or so of costs in
a supply chain.
“If you think about sales
productivity across the entire
supply chain, paying a high
rent is not a big deal,” said
Mr. Frankel.
Modest levels of new ware-
house supply are coming onto
the market at a time when
some e-commerce companies
are expanding rapidly.
Amazon is now the largest
tenant of Prologis, Duke Re-
alty Corp., Jones Lang LaSalle
Income Property Trust and
DCT Industrial Trust by per-
centage of rental revenues at
A unit of home builder Lennar will pay up to $13,000 of a buyer’s student-loan debt.
Jeri Coate are planning to use
the program to virtually elimi-
nate their student debt. The
couple, who are in their
mid-30s, wanted a bigger
house but were reluctant to
take on more debt. Ms. Coate,
who works in a notary’s office,
still had outstanding student
loans from training she had
done to be a medical adminis-
trative assistant and the cou-
ple had other unpaid bills as
well.
“We needed to get some-
thing bigger and upgrade but
typically pay to repair storm
damage as well as reimburse
owners for lost revenue.
Because of the peculiar eco-
nomics of the hotel industry,
some properties might actu-
ally benefit from the devasta-
tion. Those that weren’t dam-
aged too badly and can reopen
quickly could enjoy stronger-
than-usual bookings thanks to
high demand from displaced
residents and the hurricane-
related workforce.
Among those that have
stayed open: Mr. Paulson’s La
Concha and the historic Con-
dado Vanderbilt hotels in San
Juan. The La Concha is being
used by Federal Emergency
Management Agency employ-
ees and other rescue officials,
according to a spokeswoman
for Mr. Paulson. The Vander-
bilt sheltered guests in a bun-
ker, she said in an email.
“Both hotels weathered the
storm very well, with minor
water damage which is cur-
rently being fixed,” she said.
“The hotels are open to all
THE PROPERTY REPORT
Prologis bought this space in New York’s Bronx to convert to warehouse use. It expects rent comparable with some retail properties.
year-end 2016, according to
S&P Global Market Intelli-
gence.
“Consumer purchasing be-
havior and the rise of e-com-
merce have shifted in a way
that is extremely beneficial
for industrial real estate.
Proximity of warehouses is
more important than ever, and
we aim to own properties
closest to transportation and
consumers,” said Phil Haw-
kins, president and CEO of
DCT.
Some retailers, meanwhile,
are embracing the practice of
“showrooming,” in which
shoppers use bricks-and-mor-
it was kind of a rough decision
to make considering our status
with bills and all,” Mr. Oqu-
endo said.
The couple are now in the
process of closing on a Lennar
home in the city of La Marque,
Texas, about 50 miles south of
Houston, with two more bed-
rooms than they had before.
The evidence is mixed as to
whether student debt is acting
as a meaningful barrier to
homeownership. Most re-
search suggests there is a
much higher barrier for people
guests and doing their best to
provide services during this
challenging time.”
Hotels that are able to keep
their doors open also will
likely face less competition as
many rivals that sustained
more damage will likely be out
of operation for months.
New hotels under construc-
tion were more likely de-
stroyed by Maria than finished
structures were, said Jan Fre-
itag, senior vice president of
STR Inc., a data company that
tracks the hotel industry. Even
if they did survive, construc-
tion is likely to be delayed be-
cause laborers will likely fix
existing hotels before building
new ones.
In other areas hit by hurri-
canes, hotels that survived or
were able to reopen quickly
saw higher occupancy rates. In
the Houston area, which was
hammered by Hurricane Har-
vey late August, occupancy
was 87.8% in the week that
ended Sept. 16, compared with
61.2% at the same time last
tar retail locations to check
out goods they later purchase
online. Nordstrom Inc. this
month said it is opening a
store in West Hollywood, Ca-
lif., where shoppers can try on
clothes, but the store won’t
carry inventory. Instead, the
merchandise would be re-
trieved from other nearby
Nordstrom locations or
through its website.
If the concept becomes
more commonplace, it would
fuel more demand for more
logistics space and services,
analysts said.
Other markets where ware-
house space is poised to gen-
MIKE BLAKE/REUTERS
who take out large loans and
don’t finish their degrees than
there is for those with debt
who earn a degree.
Housing observers say that
at minimum Lennar’s program
could help eliminate the sig-
nificant psychological barriers
that many feel to buying a
home and taking on hundreds
of thousands of dollars of
more debt if they are already
deep in the hole after college.
A study released Tuesday
by NeighborWorks America, a
nonprofit that helps promote
year, Mr. Freitag said.
“Certain hotels may even
report stronger [third-quarter]
performance than anticipated,
as displaced residents and
temporary relief workers
boost occupancy during a sea-
sonally slow period,” said
Workers clear debris from the Condado Palm hotel in San Juan following Hurricane Maria.
Wednesday, September 27, 2017 | B9
erate premium rents include
Seattle, San Francisco, parts
of Los Angeles, Chicago and
possibly Miami, said Prologis’s
Mr. Moghadam, adding that
the company might be able to
lease 4 million or 5 million
square feet of such premium
space in each location. All
told, Prologis owns about 381
million square feet of space in
the U.S.
Warehouses commanding
rents near those of office and
retail space are highly profit-
able for landlords in part be-
cause the buildouts are
cheaper than office or retail
spaces, but analysts said it re-
access to homeownership,
found that one in four millen-
nials said they have had to de-
lay buying a home because of
student debt. Half of millenni-
als said they worry about their
student loans all or most of
the time.
Consumer advocates are
wary the program sounds too
good to be true. They point to
builder incentive programs
during the last boom that
helped inflate the price of new
homes. Those programs al-
lowed sellers to pay a portion
of the buyers’ down payment,
which in turn tended to drive
up the price that people could
afford to pay for their homes.
“We’ve had bad experiences
when home sellers get in-
volved in mortgages, particu-
larly innovative mortgages,”
said Dan Immergluck, a pro-
fessor at the Urban Studies In-
stitute at Georgia State Uni-
versity, who studies the
housing market, mortgage fi-
nance and foreclosures. Mr.
Immergluck said if the pro-
gram drives up home prices,
buyers without student loans
will end up sharing the burden
with those who do.
Mortgage-finance company
Fannie Mae has agreed to
back the loans and will moni-
tor the program to ensure that
the value of student-loan pay-
ment isn’t included in apprais-
als of the home, which in turn
can help drive up values.
Green Street Advisors in a re-
port on the impact of the 2017
hurricane season on real-es-
tate investment trusts with
hotels in hard-hit areas.
Even before Maria hit, the
hotel industry in Puerto Rico
was having a lackluster 2017.
MICHAEL BUCHER/THE WALL STREET JOURNAL
mains too early for the emer-
gence of a form of classifica-
tion of warehouses akin to the
different tiers of malls in the
U.S. as such high-rent deals
are not commonplace.
“It’s too small a piece of
the portfolio,” said Steve
Sakwa, an analyst at Evercore
ISI, noting that such leasing
deals are still few and are not
going to redefine Prologis’s
large portfolio soon.
Mr. Sakwa said equity in-
vestors have already been as-
signing higher valuations to
industrial REITs, with some of
their stock prices up 30% in
the past year.
“This is not without risk,”
said Jonathan Lawless, vice
president of customer solu-
tions at Fannie Mae. “Builders
always want to provide more
money and incentives for peo-
ple to buy their homes. It has
the potential to start distort-
ing values.”
Mr. Lawless said Fannie is
cautiously embracing new
mortgage products that aim
to make homeownership ac-
cessible for millennials. Fan-
nie is also backing loans with
down-payment assistance
from Loftium, a Seattle-based
company that will pay for up
to $50,000 of the buyers’
down payment if they agree
to continuously rent out a
room in their home on
Airbnb for one to three years.
One other perk for borrow-
ers: Student-loan debt can’t be
discharged in bankruptcy, so
getting rid of it early is prefer-
able to paying it back slowly.
But Mr. Lawless cautioned
that efforts to make credit
more easily available to mil-
lennials could end up exacer-
bating the shortage of homes
if Fannie and others also can’t
come up with more ways to
give builders incentives to
build more starter homes.
“As we pivot to next year, I
think the thing that the indus-
try needs to be careful about
is we can’t increase access and
demand without increasing
supply,” he said.
Occupancy through the end of
August was 73.4%, down 1.2%
from the same period in 2016,
according to STR, which tracks
162 hotels with 16,265 rooms
in Puerto Rico. The average
daily room rate was down
2.9%, the firm said.
PABLO PANTOJA/ANADOLU AGENCY/GETTY IMAGES
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B10 | Wednesday, September 27, 2017
Oil in Bull Territory as OPEC Efforts Gain
U.S. crude prices have On the Mend
rebounded on growing U.S. crude climbed back into a bull market after stockpiles fell and speculators maintained bullish bets on prices.
confidence that glut of
$125 a barrel
fuel will be reduced
BY ALISON SIDER
AND CHRISTOPHER ALESSI
U.S. oil prices returned to
bull-market territory this week
while the global benchmark hit
a two-year high, as investors
gained faith that OPEC will
successfully shrink a global
supply glut.
A drumbeat of bullish data
in September, including the In-
ternational Energy Agency’s
upward revision to its demand
outlook, has lifted prices. In-
vestors have become more con-
fident that the Organization of
the Petroleum Exporting Coun-
tries will continue cutting pro-
duction and that its efforts are
helping bring oil’s supply and
demand into balance.
“It looks as though the mar-
ket started to get convinced
that the rebalancing is actually
happening,” Tamas Varga, an
analyst at PVM Oil Associates
Ltd. said in a note Monday.
U.S. crude prices settled
Monday 23% above this year’s
low of $42.53 a barrel on June
21, marking the sixth bull mar-
ket for crude in four years and
the first since February.
A bull market is typically
defined as a gain of 20% or
more from a recent trough,
while a bear market is a de-
cline of 20% or more from a
recent peak.
West Texas Intermediate, the
U.S. benchmark, rose $1.56, or
3.1%, to $52.22 a barrel Monday
on the New York Mercantile Ex-
change, its highest settlement
since April. The price slipped to
$51.88 on Tuesday.
Brent, the global benchmark
rose $2.16, or 3.8% to $59.02 a
barrel Monday, its highest set-
tlement since July 3, 2015, and
its largest daily gain since De-
cember. It pulled back to $58.44
on Tuesday.
Iraqi Kurdistan’s indepen-
Email: heard@wsj.com
Room to Run in Emerging Markets
It’s been a hot year for
emerging-market invest-
ments. With the U.S. Federal
Reserve reaffirming its plans
for rising rates, that might
be cause for nerves. But the
thing investors need to re-
member is just how long
emerging markets spent out
in the cold.
The gains in 2017 are re-
markable. The MSCI emerg-
ing-market stock index is up
26% this year through Mon-
day, while J.P. Morgan’s EMBI
sovereign-bond index has re-
turned 9%. The yield on the
index of around 5.2% has
fallen 0.6 percentage point
this year. Currencies have
rallied against the dollar.
Meanwhile, demand has
surged for dollar-denomi-
nated bond sales from a range
of riskier and rarer borrowers
such as Belarus, Iraq and Ta-
jikistan. That kind of issuance
might raise concerns that the
market is getting frothy.
But there are some impor-
tant counterweights. The most
important is continued
growth, which is proving more
Watch Out for Tax Reductions’ Unintended Consequences
What a tax cut could give
the economy, the Federal Re-
serve could take away.
Republican leaders on
Wednesday are expected to
release a tax plan that would
lower tax rates on individu-
als and corporations and al-
low companies to repatriate
earnings held overseas at a
low rate.
Under a deal Senate Re-
publicans reached last week,
the overhaul may reduce tax
revenue by as much $1.5 tril-
lion.
The tax plan will likely
change and may not pass
Congress. But if a significant
tax cut becomes law, it
would juice the economy at a
time when the economic ex-
pansion is more than eight
years old, the jobs market is
100
75
50
25
0 BEAR MARKETS
2014
U.S. crude-oil inventories
600 million barrels
500
400
300
200
100
0 0
2014 ’15
Note: A bull market is generally defined as a rise of 20% or more from a previous low.
Sources: WSJ Market Data Group (crude-oil futures); Energy Information Administration (crude-oil inventories); CFTC (net bullish positions)
dence referendum played a
role in boosting prices Mon-
day, analysts said. Prices rose
after Turkish President Recep
Tayyip Erdogan made a veiled
threat to close the pipeline
that allows Kurdish oil to
reach the global market.
Oil tumbled into a bear
market in June as market par-
ticipants became skeptical of
OPEC’s ability to bolster oil
prices. Traders and investors
were also wary that any rise
HEARD ON THE STREET
Not Too Tight
Yield spread of J.P. Morgan EMBI Global Diversified index
over U.S. Treasurys
10 percentage points
8 idly to reflect the brighter
6 back only part of the down-
4 A hot market for new bond
2 the search for yield. But
0
2007 ’08 ’09 ’10 ’11
Source: J.P. Morgan
globally synchronized than at
almost any time since the
global financial crisis. The In-
stitute of International Fi-
nance is forecasting emerging-
market growth of 5.4%
annualized in the third quar-
ter. China is the obvious risk
to this picture, and a reminder
was served last week by Stan-
dard & Poor’s downgrade. But
growth has broadened, with
economies like Brazil and Rus-
tight and the Federal Re-
serve is pushing the other
way.
Tax cuts rarely come
when the economy could re-
ally use them. The so-called
Kennedy tax cuts, for exam-
ple, were aimed at bolster-
ing an economy weakened
by the 1960-61 recession.
But by the time they took
effect in 1962 and 1964 the
economy was well on the
road to recovery.
So the economy got a
booster shot it didn’t need,
and the tax cuts, along with
the increased spending from
President Lyndon Johnson’s
Great Society programs and
the escalating war in Viet-
nam, created an excess of
demand pushing inflation
higher.
MARKETS
’15
’16 ’17
above $50 a barrel would only
spur U.S. shale producers to
start pumping out more crude.
But recently, investors have
been encouraged by signs that
shale activity is starting to
level off and that stockpiles
are falling around the world.
Global demand has also
been strong. The IEA earlier
this month raised its forecast
for demand growth this year
and now expects an increase of
1.6 million barrels a day.
FINANCIAL ANALYSIS & COMMENTARY
’12 ’13 ’14 ’15 ’16
THE WALL STREET JOURNAL.
sia emerging from recession.
A crucial factor is that
emerging markets have al-
ready been through an enor-
mous test in the past few
years. Investors spent years
pulling money out of emerg-
ing markets, forcing econo-
mies to adjust by closing
current-account deficits. The
aggregate current-account
surplus that has been built
up as a result might now
The current economic ex-
pansion has been marked by
disappointing growth, but
even so, the unemployment
rate has fallen to 4.4% from
a 2009 peak of 10%. That in-
dicates there is little slack
left in the economy. If the
tax cut boosts growth and
drives up wages, the result-
ing inflation could prompt
the Fed to raise rates at a
faster pace.
Of course, if a tax cut
makes the economy more
productive—one of its pro-
ponents’ aims—it would help
the economy grow more
quickly without overheating.
The problem is that the
pickup in growth would
likely come before productiv-
ity gains kicked in.
The same could be said
’16
Crude-oil net bullish positions, weekly
500,000 contracts
400,000
300,000
200,000
100,000
2014
In a sign that prices could
continue to recover, Brent
crude has shifted into a mar-
ket structure in which future
prices are lower than near-
term prices—an indication
that supplies are tight and it
isn’t profitable to sock away
more oil in storage.
U.S. oil has also rebounded
as U.S. refineries come back
online in the wake of Hurri-
cane Harvey. Prices still remain
below the high of $54.45 a bar-
start being eroded, Citigroup
thinks, but for good reason:
Renewed capital inflows
should help support econo-
mies, making domestic de-
mand more robust.
Markets have swung rap-
picture. But they have taken
ward move of recent years.
issues shows the strength of
many emerging-market coun-
tries are making greater use
of domestic funding, meaning
’17 dollar-denominated funding
isn’t quite the harbinger of
doom it was in the past: Even
as government debt has risen,
the share of foreign-currency
debt has fallen to 14% in
2016, from 32% at end-2001,
according to the Bank for In-
ternational Settlements.
The Fed’s apparent desire
to push on with tightening
policy may give emerging
markets a pause. But if global
growth continues, then a
pause is all it should be.
—Richard Barley
There and Back Again
The U.S. unemployment rate
10%
8 from a lower corporate rate,
6
4 front.
2 Lower individual tax rates,
0
2007 ’10
Source: Labor Department
THE WALL STREET JOURNAL.
for the fiscal spending plans
that would be under discus-
sion in the alternative uni-
verse where Hillary Clinton
won the presidential elec-
tion.
The extra heat tax cuts
would throw off complicates
THE WALL STREET JOURNAL.
BULL MARKETS
’17
’15 ’16 ’17
THE WALL STREET JOURNAL.
rel they reached in February.
Some hedge funds and
other speculative investors are
clinging to bearish bets on U.S.
crude. Earlier this year, their
bullish bets outnumbered
bearish ones by more than 11
to 1, data from the Commodity
Futures Trading Commission
show. That has shifted to less
than 3 to 1, according to the
most recent data.
“The short sellers haven’t
capitulated yet,” said Donald
OVERHEARD
Like borscht, revenge is a
dish best served cold.
Despite two years of sanc-
tions, many related to its oil-
and-gas industry, Russia’s
state energy behemoth Gaz-
prom has leapt to the top of
a widely watched ranking of
250 global energy companies
published by S&P Global
Platts.
The energy research firm
ranks companies on four as-
set and profitability mea-
sures, and Gazprom’s victory
wasn’t the only surprise.
Exxon Mobil, which had
been the reigning champ for
the past 12 years, was
bumped from the top by a
foreign rival and also fell to
ninth place.
Among its other woes,
Exxon was fined $2 million
over the summer for alleg-
edly violating sanctions on
Russia.
It is a rich irony that the
executive who was running
the company at the time now
runs the U.S. State Depart-
ment.
the picture for the stock
market.
Earnings, particularly at
domestically focused compa-
nies, would certainly benefit
while multinationals would
do better on the repatriation
particularly those aimed at
the middle class, should in-
crease sales at consumer-
facing companies.
But interest rates would
likely head higher as the Fed
took a more hawkish turn,
hurting many of the compa-
nies that would benefit from
a tax cut.
Investors could struggle
to find places to put their
windfall to work.
—Justin Lahart
Morton, senior vice president
at Herbert J. Sims & Co., who
oversees an energy trading
desk. “Those bears who are
entrenched remain en-
trenched—they’re not con-
vinced this is over.”
OPEC’s continued coopera-
tion is still far from assured.
The group hasn’t committed to
extending its production cuts
past March of next year.
And U.S. producers are once
again likely to lock in higher
prices for their future output—
something that has capped pre-
vious rallies and worked against
OPEC’s efforts, said Michael
Tran, director of energy strat-
egy at RBC Capital Markets.
Investors ‘started to
get convinced that
the rebalancing is
actually happening.’
OPEC and 10 producers out-
side the cartel, including Russia,
first agreed in late 2016 to cap
their production at around 1.8
million barrels a day lower than
peak October 2016 levels. The
deal was extended in May
through March 2018. In recent
weeks, a number of signatories
to the deal have indicated a
willingness to hold back produc-
tion potentially through 2018.
The group is trying to re-
strain output from Nigeria and
Libya, members that were ini-
tially left out of the deal be-
cause their oil industries were
crippled by civil unrest that
was expected to tamp down
production there.
“Undeniably now, we’re re-
ally seeing the fruits of OPEC’s
labor,” Mr. Tran said. “But the
key question is how much fur-
ther can you go? This has given
producers a key point to hedge.
That could be troublesome;
we’ve seen this movie before.”
—Stephanie Yang
and Benoit Faucon
contributed to this article.
WSJ.com/Heard
Alibaba Deal
Accounts for
Deliveries
Chinese e-commerce giant
Alibaba has succeeded by
avoiding being a full-blown
e-commerce company. Now it
may become more like one
after all.
That is the takeaway from
its $807 million investment
in its affiliate Cainiao Smart
Logistics Network, an-
nounced Tuesday. Raising its
stake to 51% from 47% will
give Alibaba official control
of Cainiao. It says it will in-
vest a further $15 billion
over the next five years.
Cainiao has long been the
secret sauce in the success
of Alibaba, which doesn’t
own its delivery network.
The company pools data
from its logistics-service
providers to recommend the
best routes for Alibaba’s
merchants. It owns several
warehouses and invests in
new technology like robots.
Until now, though, U.S.-
listed Alibaba has avoided
consolidating Cainiao into its
accounts. Treating Cainiao
as an associate has helped
Alibaba record higher profit
margins than conventional e-
commerce rivals.
But Alibaba needs to en-
sure goods are getting into
the hands of customers
faster. Its recent push into
groceries will make timely
and reliable deliveries even
more important.
Still, consolidating Cai-
niao’s results will drag on
earnings, as Alibaba will
shift from recognizing less
than half of its losses to rec-
ognizing the whole lot. And
Cainiao has been a consis-
tent loser, last year dropping
2.2 billion yuan ($332 mil-
lion)—equal to around 6% of
Alibaba’s net income.
Consumers want better
and faster deliveries. Alibaba
is starting to count, and ac-
count for, the cost of that.
—Jacky Wong
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JOURNAL REPORT

© 2017 Dow Jones & Company. All Rights Reserved. THE WALL STREET JOURNAL. Wednesday, September 27, 2017 | R1

Harvard Takes Top Honors

BROOKS KRAFT/CORBIS/GETTY IMAGES

Harvard University got high
marks for the financial success
of its graduates and its
academic resources.

In the Wall Street Journal/Times Higher Education ranking of

U.S. colleges, the Ivies snagged six of the top 10 spots
vard is Harvard not only because its graduates of resources, and I think dents who borrowed from
BY DOUGLAS BELKIN
are among the nation’s leaders in terms of this kind of inequality, the federal government
AND MELISSA KORN
their financial outcomes, but also because it this defunding of great are included in these cal-
has the wealth to support a fairly diverse stu- American public schools, culations.
SILICON VALLEY IS RISING. Mobile Ameri- dent population and top-notch faculty. Mr. is a serious issue.” The Massachusetts
cans are flocking to the Sunbelt. But most of Cruz, who studied government and economics, That trend is particu- THE TOP 10 College of Pharmacy and
the best colleges and universities in the U.S. says that at one point half of his professors larly noteworthy because These schools achieved the highest Health Sciences tops the
remain rooted in the Northeast. had served in former presidential administra- as the nation’s collegiate overall scores in the Wall Street list of schools that ele-
Harvard University topped this year’s Wall tions. student body is becoming Journal/Times Higher Education vate their graduates to
Street Journal/Times Higher Education College The California Institute of Technology, sev- more racially and socio- College Rankings higher incomes than they
Rankings, and about a mile down the street in enth overall, was No. 1 in resources and boasts economically diverse, it is might otherwise earn.
Cambridge, Mass., the Massachusetts Institute a student-to-faculty ratio of 3 to 1, tops in the the public schools—and 1. Harvard University The University of Colo-
of Technology earned a tie for third place. Co- nation alongside MIT. Stanford, which tied the California state sys- rado, Denver is second,
lumbia, Yale, the University of Pennsylvania, with MIT for third overall, was sixth in out- tem in particular—that 2. Columbia University with Georgetown Univer-
Princeton and Cornell—all of which sit within comes and 24th in how engaged students per- are absorbing most of sity, Harvard, and Wash-
400 miles of Harvard Square—took five of the ceived themselves to be with their education. those students. Seven of 3. Massachusetts Institute of ington and Lee University
top 10 spots. Stanford, Duke and the California the top 12 schools in the Technology rounding out the top five.
Institute of Technology rounded out the top 10. State of state schools country for diversity are
Stanford University
That same metric pe-
“There are a lot of perceptions of Harvard The rankings also reveal some relative bar- public schools in Califor- nalizes some of the na-
you have before you arrive,” says Chris Cruz, gains at public universities. nia. 5. Duke University tion’s elite liberal-arts
who left his home in California to attend A handful of elite public schools in the U.S. “It’s an incredible colleges, where the data
school there and graduated last year. “At least remain competitive despite receiving limited story of access,” says Mr. 6. Yale University indicate that an educa-
for me Harvard exceeded all of my expecta- funds from their states. Still, the best private Baty. “But again, the tion actually bends earn-
tions.” schools are simply wealthier, and they are schools with the greatest 7. California Institute of ing trajectories down-
The WSJ/THE rankings emphasize how well spending that money to buy things that stu- access are starved of Technology ward.
a college will prepare students for life after dents value, such as more professors and aca- funds. The privates are For instance, recent
graduation. To that end, the overall ranking is demic support services. less inclusive.” 8. University of Pennsylvania graduates of Hampshire
based on 15 factors across four categories: The top-ranked public institution, the Uni- Top-flight public College, among many
ICONS: PETER & MARIA HOEY

Forty percent of each school’s overall score
comes from student outcomes, including a
measure of graduate salaries, 30% from the
school’s academic resources, 20% from how
well it engages its students and 10% from the
diversity of its students and staff.
The rankings reveal the might of the Ivy
League as well as some hidden gems. Who
knew that—based on students’ views on in-
ternships—students at Endicott College in Bev-
erly, Mass., feel more prepared to enter the
world of work than their peers at MIT?
The rankings also show that those schools
at the top boast a range of solid scores. Har-
versity of California, Los Angeles, came in at schools still serve their 9. Princeton University others, are earning less
No. 25, between the University of Notre Dame students well. There were than they otherwise
10.Cornell University
and Pomona College. The University of Michi- 27 public institutions in might have if not for
gan reached No. 27, while the University of the top 100 in terms of Source: Wall Street Journal/Times Higher their educational choices,
North Carolina-Chapel Hill rounded out the top student outcomes. Education College Rankings the data show.
three public universities at No. 33. On the THE WALL STREET JOURNAL. “Ranking colleges by
other end of the spectrum, 80 of the 100 low- Earning power alumni earnings penalizes
est-ranked schools overall were public institu- The WSJ/THE rankings colleges for alums who
tions. determine student outcomes in part by using choose public service, the arts, nonprofits, ed-
“The fact that there are only two publics in data like family income and SAT scores to pre- ucation, social science and graduate school,”
the top 30 is part of the narrative that there is dict how much money a student would earn 10 says Hampshire spokesman John Courtman-
a crisis in public higher education,” says Phil years after he or she enters school. The rank- che. It also discounts “the value of young en-
Baty, Times Higher Education rankings editor. ings then compare those earnings to the actual trepreneurs who take risks early in their ca-
“We are seeing some real challenges in terms salary of graduates. Only the salaries of stu- Please turn to the next page

INSIDE

What Our Rankings Emphasize The Biggest Surprises Schools That Focus on
—and Why Smaller schools outdid top schools Internships
How students fare after graduation in some ranking categories The colleges that students feel do
carries the most weight R3 best at providing career prepara-
R2 tion through internships
Challenged in the Classroom— R4
What Counts in the End and Out
Where schools rank on graduation School size and prestige don’t de- The Rankings
rates, income and other outcomes termine how engaged students feel How 500 U.S. colleges stack up
R2 R4 R5-10

When It Comes to Diversity, Inspired by Their Peers State Schools Do Well Despite
Public Schools Reign Students at these colleges said Budget Cuts
Urban state schools attract racially their experiences were strongly California boasts four campuses
and financially diverse students shaped by others among the top 10 public colleges
R2 R4 R10
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R2 | Wednesday, September 27, 2017 THE WALL STREET JOURNAL.

JOURNAL REPORT | U.S. COLLEGE RANKINGS

What Our Rankings This Is What Counts in the End

Where schools rank on graduation rates, income and more
Emphasize—and Why BY DOUGLAS BELKIN

BY DAVE PETTIT WHETHER STUDENTS go to school

primarily to find a calling, read the
Selecting the right college is hard work. There are so many factors to Great Books or learn the skills to
consider and so many schools from which to choose. The Wall Street earn a lot of money, the degrees
Journal/Times Higher Education College Rankings are designed to orga- they earn have a substantial impact
nize all of that information and put it into perspective. on their financial future.
Parents and students set out to find schools that offer excellence, fos- The amount of debt accrued over
ter intellectual development, provide engaging teaching and leave gradu- the course of an education—and
ates on a firm financial footing. Now in their second year, the WSJ/THE the student’s ability to pay it off—

JIM R. BOUNDS/BLOOMBERG NEWS

rankings are built on these criteria. affects everything from how
Some college rankings focus on the selectivity of schools or on just healthy and happy graduates will
certain dimensions of the college search. The WSJ/THE rankings examine be to what professional choices
a broad range of considerations that confront parents and students, and they make, says Brandon Busteed,
put particular emphasis on financial considerations. executive director of education and
The outcomes graduates can expect—including the salaries they will workforce development at Gallup.
earn—and the academic resources of institutions are given the most “There are two types of [college]
weight. This year, the rankings take into account the debt burden stu- consumers, those who care very
dents may take on to finance their education by evaluating graduates’ much about the economic value add
ability to repay their loans. and those who say they are there to The success of Duke’s graduates contributed to its overall No. 5 ranking.
Beyond finances, the WSJ/THE rankings use a survey of students to make a contribution to society,” Mr.
evaluate how well schools create engagement, both with instructors and Busteed says. “Either way, your fi- school was ranked 60th overall but
among students. The rankings also look at the campus environment, fo- nancial outcomes matter.” 33rd on outcomes. Recent grads
cusing on racial, ethnic and financial diversity. In all, 15 measures go into That’s why the Wall Street Jour- earned $4,550 more a year than
calculating the overall ranking. For a complete explanation of the method- nal/Times Higher Education College predicted.
ology, go to on.wsj.com/college-ranking-methodology. Rankings weight outcomes as the “I think Jesuit values are great
With all of that, the Journal and its partner, Times Higher Education, most important factor in the over- career values,” says Joe DuPont, as-
recognize that different people have different goals. For this year, the all ranking. Outcome scores are de- sociate vice president for student
Journal has developed a tool that allows parents and students to create rived from graduation rates, in- affairs at BC. “Jesuits champion re-
customized rankings by adjusting the weighting of the four main criteria come after graduation, debt flection, exploration and action.
that go into calculating the overall ranking: student outcomes, academic repayment and academic reputa- TOP SCHOOLS FOR That fits well into any paradigm,
resources, student engagement and the academic environment. tion. The outcome evaluation is STUDENT OUTCOMES including the world of work.”
So, for example, if one’s primary goal is less about finding a top job 40% of a school’s total score. In contrast, rankings of some
The schools ranked highest for
and more about the quality of teaching and making connections with fac- Our value-added measure of sal- elite liberal-arts colleges were
graduation rate, reputation and
ulty and fellow students, the rankings can be adjusted. If one is most in- aries was calculated by comparing dragged down by their outcome
student financial outcomes
terested in a school with a wealth of academic resources and a highly di- predicted salaries—based on fac- scores.
verse campus environment, the rankings can be recalculated for that, too. tors including students’ SAT scores, Defenders of those institutions
Go to WSJ.com/collegerankings to use the tool. family income and an institution’s 1. Duke University say the disproportionate number of
Finding the college that is the best fit is a tricky, personal decision. population of first-generation col- Harvard University students who attend graduate
The goal of the WSJ/THE college rankings is to help give you the per- lege students—and the actual out- school, go into the arts or educa-
spective you need to weigh your options. comes for recent graduates. We 3. Yale University tion or get government jobs work
used a Brookings Institution anal- against them.
Mr. Pettit is a Wall Street Journal editor in New York. He can be reached ysis of value-added college out- 4. Princeton University Swarthmore College graduates
at dave.pettit@wsj.com. comes as a guide on this measure, fell $16,750 short of their predicted
5. Columbia University
recognizing that high graduate sal- annual salary. The school ranked
aries alone don’t indicate school 6. Stanford University 30th overall, but the earnings
success. shortfall was among the most se-
Harvard University and Duke Uni- 7. California Institute vere in the country. Swarthmore
Harvard versity, first and fifth, respectively,
in the overall ranking, tied for the
of Technology ranked 52nd in outcomes.
Gregory Brown, Swarthmore’s
Takes the top spot in outcomes. And all of the
schools ranked in the top 10 for out-
8. University of Pennsylvania vice president for finance, says be-
cause his school’s admissions are
comes were ranked in the top 11 9. Massachusetts Institute need-blind, the pool of students
Top Spot overall except for one: Williams Col-
lege, tied for ninth in outcomes and
of Technology who take federal financial aid is
very small. The predicted salaries
TOP SCHOOLS University of Chicago
Continued from the prior page ranked 22nd overall. But several used in the rankings take into ac-
reer that may ultimately lead to big FOR RESOURCES schools had outcome scores that Williams College count only the salaries of students
rewards for them and society, maybe The schools that ranked highest were well above their overall rank. Source: Wall Street Journal/Times Higher who borrowed from the federal
15 years or 30 years after gradua- for resources, based on academic One example is Brigham Young Education College Rankings government.
tion.” spending, student-faculty ratios University, Provo. It was 113th in THE WALL STREET JOURNAL. “Because our sample size is very
and research output the overall ranking, but 40th in small, one deviation can really im-
Sense of engagement outcomes thanks to a high gradua- pact our numbers,” he says. “I
A survey conducted as part of the 1. California Institute of tion rate and average annual earn- oped these critical-thinking and would caution parents that while
rankings asked 109,000 students a Technology ings for recent graduates that are problem-solving skills by the time these rankings offer some helpful
series of seven questions to deter- $12,000 more than predicted. they graduate,” she says. “And they information, not one of them is
mine the extent to which they felt 2. Harvard University Jodi Chowen, BYU’s director of rank really high compared to grad- perfect.”
engaged in their education. career services, says her students uates of other schools in a lot of
Topics included students’ experi- 3. Massachusetts Institute land jobs because of a range of soft skills like leadership.” Mr. Belkin is a Wall Street Journal
ences with their professors, their of Technology skills. “The feedback we hear from Boston College is another school reporter in Chicago. He can be
level of collaboration with class- employees is that they have devel- that shines on outcomes. The reached at doug.belkin@wsj.com.
mates, if they were pushed to think 4. Princeton University
critically, and whether they would
5. Northwestern University
recommend their school to others.
Four of the top five schools for Rice University

When It Comes to Diversity,

engagement have religious affilia-
tions. Dordt College in Sioux Center, 7. Columbia University
Iowa, came out on top. University of Pennsylvania

Public Schools Reign

Though small liberal-arts colleges
like Dordt, with about 1,440 under-
graduate students, generally scored
well in engagement, size wasn’t a
proxy for performance. Texas Chris-
tian University came in at No. 2,
with Texas A&M University, Cedar-
ville University and Brigham Young
University, Provo all tied for third.
Those four schools’ student bodies
range from about 3,300 to 43,000
undergraduates.
The survey also asked students
three questions that weren’t taken
into consideration in the rankings,
including whether students would
choose their school again. Highest
marks again went to schools with a
religious affiliation, including The
Master’s University in Santa Clara,
Calif., Lancaster Bible College and
Brigham Young, Hawaii.
Schools that specialize in science,
technology, engineering and math
also scored well, including Michigan
Technological University and the
Rose-Hulman Institute of Technol-
ogy.
The WSJ/THE rankings aren’t in-
tended to be a definitive guide for
all prospective students. The best
school for an aspiring physicist who
prefers intimate classes likely isn’t
the best one for a varsity athlete
pursuing a business degree and in-
terested in the Greek scene.
Rather, this list is best used as a
jumping-off point for families as
9. University of Chicago
10.Brown University
Cornell University
Yale University
Source: Wall Street Journal/Times Higher
Education College Rankings
THE WALL STREET JOURNAL.
they consider their options. The
rankings offer insight into a number
of elements that should be taken
into account during the college
search process, from tuition cost and
schools’ financial strength to oppor-
tunities for critical thinking and
graduates’ career outcomes.
Times Higher Education is a unit
of TES Global Ltd., a London com-
pany owned by private-equity firm
TPG Capital since 2013. Times
Higher Education was sold in 2005
by News Corp, the parent of The
Wall Street Journal owner Dow
Jones & Co. Times Higher Education
has a business relationship with The
Wall Street Journal tied to develop-
ment of these college rankings.
Mr. Belkin is a Wall Street Journal
reporter in Chicago. He can be
reached at doug.belkin@wsj.com.
Ms. Korn is a Wall Street Journal
reporter in New York. She can be
reached at melissa.korn@wsj.com.
BY MELISSA KORN
PRESTIGIOUS PRIVATE colleges
and universities have deep pockets,
fancy buildings and renowned fac-
ulty. But public schools have some-
thing they dearly want: diversity.
Drawing students from their im-
mediate areas and appealing to
low-income and first-generation
college students, state-backed insti-
tutions in major cities seem to be
most successful at bringing in a ra-
cially and socioeconomically di-
verse student body.
As a result, they dominate the
Wall Street Journal/Times Higher
Education College Rankings on
measures of diversity.
The WSJ/THE rankings measure
school environment based on fac-
tors including the percentage of
Pell Grant recipients—a proxy for
those from low-income back-
grounds—as well as the diversity of
students and staff, how many stu-
dents are the first in their families
to attend college and the share of
the student body that comes from
abroad.
Academics say class discussions
often become richer when students
from different backgrounds engage
on topics like religion and politics.
And at a time of heightened politi-
cal polarization and economic
thanks to its location in one of the
most diverse regions of the nation’s
most diverse state. More than 46%
of the Seventh-day Adventist
school’s undergraduate students
are Hispanic, one in nine come TOP SCHOOLS
from overseas and about 43% re- FOR ENVIRONMENT
ceive Pell Grants. These schools achieved
La Sierra has such global appeal the highest scores for diversity
in part because of a large interna-
tional network of Seventh-day Ad- 1. La Sierra University
ventist schools. Graduates from
those institutions flock to a simi- 2. California State University,
larly affiliated college setting, says Northridge
provost Joy Fehr.
California State University, 3. Johnson & Wales University,
Northridge, took the No. 2 spot for North Miami
environment. More than 40% of un- University of California, Irvine
dergraduate students at CSU-
Northridge identified as Hispanic in 5. San Francisco State University
fall 2015, the latest figures available
on the school’s website, and more 6. Barry University
than half are low-income. California State University,
One challenge for schools with East Bay
socioeconomically diverse student
populations is that many of those 8. California State University,
students, especially those who are Long Beach
the first in their families to attend
CUNY Bernard M. Baruch
college, require additional academic
College
and social support to get to the fin-
ish line. Whether it’s because they CUNY City College of
weren’t well prepared by their high New York
schools, have constant money con- University of California,
cerns or face obstacles in assimilat- Los Angeles
ing to college life, graduation rates
for such students tend to lag be- Source: Wall Street Journal/Times Higher
hind those for wealthy, white stu- Education College Rankings

BEHIND THE RANKINGS
For a complete explanation of the
methodology for the Wall Street
Journal/Times Higher Education
College Rankings, go to
http://on.wsj.com/college-ranking-
methodology.
The Journal Report welcomes your
comments—by mail, fax or email. Letters
should be addressed to Lawrence Rout,
The Wall Street Journal, 4300 Route 1
North, South Brunswick, N.J. 08852. The
fax number is 609-520-7256, and the
email address is reports@wsj.com.
REPRINTS
To repurpose this logo and
content, visit wsj.com/college
rankingsreprint for more
information.
stratification, many say there could
be long-term societal value in forc-
ing those individuals to interact.
Nine of the top 11 schools in
terms of environment in this year’s
rankings are in California or Flor-
ida; eight are public institutions.
Two schools from the City Univer-
sity of New York, Baruch College
and City College, are in that top
echelon. Ten campuses from the
California State University system
made the top 27 on environment.
Outcomes lag behind
La Sierra University in Riverside,
Calif., topped the diversity list
dents.
La Sierra didn’t crack the top
900 on outcomes, which measure
things like earnings, loan defaults
and graduation rates. Federal data
show that fewer than half of its
full-time students graduate in six
years or less.
Dr. Fehr says a number of stu-
dents transfer out before gradua-
tion to pursue health-sciences de-
grees at other schools, which
depresses La Sierra’s published
graduation rate. The school has
been using money from a federal
grant to offer academic bridge pro-
grams to incoming students and
THE WALL STREET JOURNAL.
provide more robust advising ser-
vices, she says.
Meanwhile, Cal State Northridge
was No. 547 on outcomes, while the
University of California, Irvine, tied
for third in environment, was No.
203 on outcomes.
Battling perceptions
The wealthiest schools, as mea-
sured by the WSJ/THE resource
ranking, often have less diverse
student bodies—though they are
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JOURNAL REPORT | U.S. COLLEGE RANKINGS

Diversity
Continued from the prior page
trying to change that.
Thirty institutions banded to-
gether earlier this year to promote
the American Talent Initiative, a col-
laborative effort to expand access for
low-income students. The program
has since expanded to include more
than 80 schools, including public
flagships, Ivy League institutions and
elite liberal-arts schools such as Wil-
liams College and Swarthmore Col-
lege. But many still have a long way
to go.
Stanford, No. 3 in the overall
ranking and No. 15 for resources, and
a member of the American Talent
Initiative, came in at 54th on envi-
ronment. And New York University,
also a member, came in at No. 29
overall and No. 42 on resources. It
landed at No. 71 on environment.
“We are continually battling per-
ceptions among the nation’s bright-
The Rankings’ Biggest Surprises
Smaller schools excelled in some areas where the top schools lagged behind
BY TAWNELL D. HOBBS
MANY FAMILIAR NAMES ended up
at the top of the Wall Street Jour-
nal/Times Higher Education College
Rankings, but some smaller schools
outdid their better-known rivals in
areas that might seem critical to
some students shopping for a place
to spend the next four years.
The top schools in our rank-
ings—Harvard University, Columbia
University, the Massachusetts Insti-
tute of Technology, Stanford Uni-
versity and Duke University—all did
extremely well in the two areas that
carry the most weight in the rank-
ings: student outcomes and aca-
demic resources. Those areas con-

JOEL BEAR/ THE MASTER’S UNVERSITY

est students that they don’t think
they can afford to come here,” says
Stanford spokeswoman Lisa Lapin,
noting that she wasn’t surprised by
the school’s environment ranking
when marked alongside public uni-
versities.
She says Stanford’s generous fi-
nancial-aid policies—including free
tuition, room and board for students
with family income below $65,000—
actually make it more affordable
than some public institutions.
Ms. Lapin says first-generation
college students consistently make
up between 15% and 18% of each un-
dergraduate class, and the school has
been working to diversify its faculty
ranks in terms of gender, race and
ethnicity, as well.
NYU spokesman John Beckman
points out that the school fares well
on environment among private col-
leges that are ranked in the top 30
overall, behind only Stanford, Colum-
bia University and Pomona College.
The school’s share of black and
Hispanic degree-seeking undergradu-
ates rose to 18.6% last fall from
14.3% in 2012, he says, and nearly
one-quarter of first-year students re-
ceive Pell grants. He added that in-
stitutional aid for Pell recipients has
increased significantly in recent
years, and loan burdens have de-
clined by about 30% for all NYU stu-
dents since 2011.
Ms. Korn is a staff reporter for
The Wall Street Journal in
New York. Email her at
melissa.korn@wsj.com.
sider measures such as graduation
rates, academic reputation, funding
spent per student and whether stu-
dents exceed average-salary predic-
tions.
But in other categories that don’t
carry as much weight overall, the
big names didn’t always fare as
well.
Where small schools reign
Duke is the only one of the top
five schools overall to come in with
a top 10 ranking when students in a
survey were asked if they would
choose their school again.
The Master’s University, a small
Christian liberal-arts school in
Santa Clarita, Calif., topped all com-
ers in that category, despite not
cracking the top 500 schools in the
overall ranking.
“I don’t think there’s a better
rating for us to be at the top of; it’s
how students feel their institution
has prepared them for their lives,”
says Kory Welch, the school’s chief
marketing officer. “As a Christian
university, our focus isn’t only on
academics but on a student’s well-
being.”
None of the top five schools
overall cracked the top 20 in the
engagement category, which in-
cludes student interaction with fac-
ulty and whether the student would
recommend the school. Dordt Col-
lege, a small Christian university in
Sioux Center, Iowa, ranked the
highest for engagement, while com-
ing in at No. 393 overall.
Similarly, none of the top five
The Master’s University scored highest when students were asked if they would choose the same school again.
schools overall placed in the top 50
in the environment category. Envi-
ronment includes measures of the
diversity of students and staff and
the proportion of international stu-
dents.
La Sierra University, a small
school in Riverside, Calif., affiliated
with the Seventh-day Adventist
church, garnered the top spot in the
environment category, while rank-
ing below 600th overall.
The rankings also considered a
school’s academic spending per stu-
dent, adjusted for regional price
differences. The top five overall
schools were highly ranked in this
area—ranging from $57,430 at Har-
vard, 13th in this category, to
$100,730 at Stanford, in fifth place.
But Washington University in St.
Louis, ranked 11th overall, came in
first in spending, at $159,100 per
student.
Provost Holden Thorp, the chief
academic officer at Washington
University in St. Louis, attributes
some of the higher spending to
small class sizes and an 8-to-1 stu-
dent-to-faculty ratio.
“For generations, Washington
University has shown that investing
in our academics, in inspiring the
leaders of tomorrow, is a most
worthwhile endeavor and not just
an ‘expense’ on a balance sheet,” Dr.
Thorp said in a statement.
Comparing rankings
In comparing the WSJ/THE list-
ing to a recent ranking by U.S. News
& World Report, similarities exist in
the top 20 but also differences.
Princeton University is No. 1 in
the U.S. News ranking of national
universities but No. 9 in the WSJ/
THE ranking, dragged down by its
engagement rank of 533rd.
A Princeton spokesman says that
at the university’s opening exer-
cises this month, university Presi-
dent Christopher Eisgruber encour-
aged the new class of students to
engage with faculty and learn from
them, but to also have their own
views.
“We expect you to develop the
ability to articulate your views
clearly and cogently, to contend
with and learn from competing
viewpoints, and to modify your
opinions in light of new knowledge
and understanding,” Mr. Eisgruber
told the students, according to a
transcript.
Several schools, including Carne-
gie Mellon University, placed in the
top 20 of the WSJ/THE list but not
in the U.S. News ranking.
Carnegie Mellon, which came in
at No. 20 in the WSJ/THE ranking
and No. 25 on the U.S. News list,
said in a statement that university
rankings remain a subject of debate.
“Some rankings are designed
purely for entertainment, little
more than internet photo galleries.
Others make a more serious effort
at collecting information,” the
statement says. “Even where rank-
ings do collect objective statistics
such as test scores or costs, the
choice of which factors to include in
a ranking, and how those factors
are weighted, remains subjective.”
Ms. Hobbs is a staff reporter for
The Wall Street Journal in
Dallas. Email her at
tawnell.hobbs@wsj.com.

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JOURNAL REPORT | U.S. COLLEGE RANKINGS

Challenged in the Classroom—and Out

When it comes to feeling engaged,
size and prestige don’t really matter
BY MELISSA KORN
WHILE HIGH GRADUATE salaries
and low loan-default rates are cru-
cial measures of a school’s value, so
are less tangible outcomes such as
how well students learn to challenge
assumptions or whether they can tie
abstract academic ideas to real-
world applications.
responses were received in 2017 for TOP SCHOOLS
FOR ENGAGEMENT
each ranked school, with an average
of 179 respondents over the two The colleges with the highest
years. This year, schools had the op- scores for how engaged students
tion of distributing the surveys on feel they are with their professors
behalf of Times Higher Education, in and their education
addition to THE soliciting responses
from students independently. 1. Dordt College
Size and prestige don’t make
much difference in a school’s success 2. Texas Christian University
on the rankings’ engagement mea-

That’s why the Wall Street Jour-
nal/Times Higher Education College
Rankings assign 20% of a school’s to-
tal score to engagement, as mea-
sured by the breadth of academic
options it offers and student insights
on things such as whether they feel
challenged in the classroom and
would recommend the school.
What happens inside classrooms
and libraries—how inspired students
feel by their peers and professors, if
they have opportunities to think
critically—matters in the intellectual
maturation of young adults.
“A great university should be edu-
cating students. They should be pre-
pared with life skills, but not neces-
sarily just skills for their first job,”
says University of Florida President
Kent Fuchs. (That school came in at
No. 91 on engagement, tied with
Pennsylvania State University, Drexel
University, Syracuse University and
many others.)
The engagement ranking is de-
rived mainly from survey responses
from current college and university
students, comprising a total of more
than 209,000 responses received in
the past two years. A minimum of 50
sure. The list is topped by institu-
tions with religious affiliations, but
that’s where any pattern ends.
Dordt College in Sioux Center,
Iowa, leads the pack for engagement.
Most of the roughly 1,440 students
at the Reformed Christian school
live on campus, and are encouraged
to bring classroom lessons off-cam-
pus. For example, last year a group
of senior engineering majors de-
signed and constructed a bridge for
a Liberian farming community.
“It’s not just about getting ready.
Real life is right now,” says associate
provost Leah Zuidema of the
school’s interest in hands-on instruc-
tion.
Dordt holds a speaker series the
first Monday of every month, with
topics like reconciling science and
faith or race and politics in America.
“You can’t separate the curricular
from the co-curricular,” says Dean of
Students Robert Taylor, referring to
the optional extra lectures.
Texas Christian University, affil-
iated with the Disciples of Christ,
came in at No. 2.
Texas A&M University in College
Station, Brigham Young University
AUSTIN LINDEMULDER
3. Brigham Young University,
Provo
Cedarville University
Texas A&M University,
Dordt College engineering majors designed this bridge in Liberia. College Station
in Provo, Utah, and Cedarville Uni- No. 9 overall, tied with many other 6.Baylor University
versity in Ohio, with undergraduate schools for 533rd on engagement. Brown University
populations ranging from about A representative from Harvard
3,300 to 43,000, all tied for third. didn’t respond to a request for com- 8.Auburn University
“We realize we are a research co- ment. A Princeton spokesman re- Bradley University
lossus. But we work very hard never ferred to President Christopher Eis-
to lose the focus on students,” says gruber’s opening speech for new California Baptist University
Texas A&M President Michael K. students earlier this month, in which California Polytechnic State
Young. He cited a recent push for all he highlighted the value of having University, San Luis Obispo
students to have at least two “high students engage with faculty.
impact” or “transformational” learn- “I urge you to seek out…faculty Concordia College
ing experiences by graduation, which members, hear what they have to at Moorhead
can include research projects with say, and learn from them. Keep in Harding University
faculty and study abroad. mind, however, that what they offer
Oral Roberts University
The goal, says Mr. Young, is to en- are not authoritative pronounce-
sure that “students are not simply ments but arguments backed up by University of Southern
passive receptacles of information.” reasons. It is your responsibility to California
Some of the nation’s most elite assess their views for yourselves,” Washington University
institutions fell flat on student en- Mr. Eisgruber said in the address. in St. Louis
gagement, a reminder that just be-
cause a school has superstar faculty Ms. Korn is a staff reporter for Source: Wall Street Journal/Times Higher
and smart students doesn’t mean The Wall Street Journal in New Education College Rankings
theyinteract in meaningful ways. York. She can be reached at THE WALL STREET JOURNAL.
Harvard and Princeton, No. 1 and melissa.korn@wsj.com

Inspired by Their Peers

Fellow students are crucial in shaping experiences

ENDICOTT COLLEGE

Students ranked Endicott College No. 2 for internships that prepare them for their careers.

To Prepare Students for Careers,

KAT SCHLEICHER

These Schools Push Internships

they accept their Kettering offer of admis-
BY KELSEY GEE
At Alverno College in Milwaukee, studies are structured for students to learn from each other. sion, she adds.
Administrators at schools like Bard College
gory. “It means we certainly expect you to be COLLEGES HAVE LONG dealt with a reputa- in Annandale-on-Hudson, N.Y., which landed
BY DOUGLAS BELKIN
ambitious for yourself, but we also expect you tion as Ivory Towers with little connection to at the bottom of students’ career-readiness
to be ambitious for each other.” real life, but students generally give their ratings in the pool of 761 colleges, with a 6.09
ACADEMIC RIGOR, facilities and the quality of At Spelman, that connection begins early schools at least some credit for trying to pre- average rating, say that a liberal-arts educa-
teaching are all big parts of college life, but and continues beyond graduation. When pare them for the world of work. tion can sharpen the soft communication and
one of the most important factors—and possi- Spelman students enter school for the first In a survey asking students to rate how ef- analytical skills needed on the job. “Our focus
bly most overlooked—is the student in the next time they walk under an arch into a crowd of fective their colleges and universities have culturally is really on students meeting their
study carrel. alumni. Commencement has a similar cere- been in helping them secure internships that academic requirements,” says Elisabeth
“Peers are the single most important influ- mony. In between, classmates are expected to prepare them for careers, the 761 schools Giglio, the head of Bard’s career-development
ential group on campus in terms of how stu- pull for each other and constantly let one an- where at least 1% of the student population office.
dents spend their time, what classes they take, other know they’ve got one another’s back. responded received a 7.9 rating out of 10 on At Reed College, which also landed near
how much they study and what habits they At Alverno College in Milwaukee, a small average, the equivalent of about a C+ grade. the bottom with a 6.29 average rating, under-
pick up,” says George Kuh, a professor of edu- Catholic liberal-arts school for women, which The survey was conducted in conjunction graduates are just as likely to spend summers
cational policy at Indiana University. “Peers placed first in this category, the school uses a with the Wall Street Journal/Times Higher writing screenplays or musical scores as they
matter big time, they shape a student’s experi- model in which the students teach themselves. Education College Rankings. are in internships, says Alice Harra, director
ence.” Carole Barrowman, a professor of English at Topping the career-preparation category of the Portland, Ore., school’s Center for Life
To that end, a survey conducted in conjunc- Alverno, says she teaches a novel by asking were schools that require students to partici- Beyond Reed.
tion with the Wall Street students to break into pate in formal intern- The benefit of such
Journal/Times Higher Ed- groups and research phe- ships or cooperatives. work may be less obvi-
ucation College Rankings nomena from the time in Kettering University in ous but is just as likely
asked students across the which the novel is set. Flint, Mich., which offers to help students identify
country: “Do you think After two or three undergraduate degrees in successful career paths,
your college provides an weeks of working in a science, technology and she says, pointing to the
environment where you group, the students pres- business, was first, fol- roughly 95% of Reed’s
feel you are surrounded by ent their findings to the lowed by Endicott Col- graduates who either
exceptional students who class. lege in Beverly, Mass. land jobs, enter graduate
inspire and motivate “If you come into a Opportunities to apply school or fellowship pro-
you?” STUDENTS’ TOP classroom here, you won’t academic concepts in the STUDENTS’ TOP grams, or prepare to ap-
The answers weren’t
SCHOOLS FOR
see desks; they’re all ta- real world are a “critical SCHOOLS FOR CAREER ply to advanced-degree
factored into the rankings bles,” says Prof. Barrow- component” of a stu- PREPARATION programs within six
but offer a fascinating in- INSPIRATION man. “We believe educa- dent’s education, says months after receiving
The schools that students say
sight into the range of stu- The schools ranked highest tion is a social construct Robert McMahan, presi- their degree.
prepare them best for their careers
dent feelings toward their by students for inspiration and we can all learn from dent of Kettering, which Emily Clark, a senior
with internships
classmates. Schools that each other.” earned a 9.74 rating on studying environmental
scored highest ran the 1. Alverno College Indiana’s Dr. Kuh says average from students. history at Reed, says the
gamut—from the Ivy schools that attract a spe- Kettering students ro- 1. Kettering University school offers plenty of
League to religious 2. Master’s University cific type of person—be tate each semester be- internship options but
2. Endicott College
schools and small liberal- they women, adherents to tween taking classes and doesn’t force them on
arts colleges. But one 3. Spelman College a certain religious belief completing 12-week students.
3. Lancaster Bible College
theme jumped out: or any other cohort that stints as full-time em- She won a $5,000
4. Massachusetts Institute of
Women’s colleges did very shares a strong, identify- ployees of large compa- 4. Northeastern University award for an internship
well. Technology ing characteristic—are nies such as General Mo- this past summer where
Among the top 15 likely to do well in this tors Co., which 5. Rose-Hulman Institute she wrote grants and
5. Brown University
schools, three are women- sort of survey. previously owned and of Technology maintained trails along
only schools—even though 6. Dartmouth College “People who attend an funded the now-indepen- the California coast. The
the vast majority of institution with a lot of dent private university. 6. Drexel University experience helped solid-
schools are coed. 7. Missouri Baptist University like-minded students are GM employs around ify her passion for con-
“One of the things that more likely to find them 100 cooperative students 7. Bentley University servation, she says, and
is fundamental to the 8. Harvard University inspiring and motivating,” from Kettering each year, Berea College she now hopes to land a
Spelman culture is the he says. “Birds of a and hires around 20 job doing similar work
concept of the Spelman 9. Harding University feather flock together.” graduates full-time, ac- 9. Dartmouth College after graduation.
sisterhood,” says Mary cording to Shawn Wylin,
Campbell, president of 10.Houghton College Mr. Belkin is a reporter a talent specialist with 10.Hampden-Sydney College Ms. Gee is a reporter
Spelman College, a histori- Source: Wall Street Journal/Times Higher for The Wall Street the auto maker. Execu- Source: Wall Street Journal/Times Higher for The Wall Street
cally black all-women’s Education College Rankings Journal in Chicago. He tives begin recruiting Education College Rankings Journal in New York.
school in Atlanta, which THE WALL STREET JOURNAL. can be reached at Kettering students for THE WALL STREET JOURNAL. She can be reached at
finished third in this cate- doug.belkin@wsj.com. such roles as soon as kelsey.gee@wsj.com.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL. Wednesday, September 27, 2017 | R5

JOURNAL REPORT | U.S. COLLEGE RANKINGS

The Wall Street Journal/

Times Higher Education Ranking of U.S. Colleges
The Wall Street Journal/Times Higher Education College
Rankings are based on 15 key indicators that assess colleges
in four areas: Outcomes, Resources, Engagement and Envi-
ronment. Outcomes comprise 40% of the weighting and mea-
sure things like the salary graduates earn and the debt burden
they take on. Resources, with a 30% weighting, is mainly a
proxy for the spending schools put into instruction and aca-
demic services. Engagement, drawn mostly from a student
survey and with a 20% weight, examines views on things like
teaching and interactions with faculty and other students. En-
vironment, at 10%, assesses the diversity of the university
community. Among other questions, the survey asked stu-
dents if they felt they made the right choice in picking their
college; those results are listed in our table with a score of 0
to 10, with 10 representing the strongest agreement. The Sal-
ary column in our table is earnings 10 years after entering col-
lege, reflecting multiple years of data, while the Default Rate
shows the percentage of people in default on their loans after
their repayment period begins. These salary and debt data are
available only for people who had federal loans. In our rank-
ings, a value-added analysis is applied to salary and debt.
The full ranking of more than 1,000 schools is online, at
WSJ.com/collegerankings. A detailed explanation of the meth-
odology is at http://on.wsj.com/college-ranking-methodology.

OVERALL
SCORE RIGHT PRIVATE
(Out of a OUTCOME RESOURCES ENGAGEMENT ENVIRONMENT CHOICE DEFAULT OR
RANK COLLEGE CITY / STATE possible 100) (Out of 40) (Out of 30) (Out of 20) (Out of 10) (Out of 10) SALARY RATE PUBLIC
1 Harvard University Cambridge, MA 91.9 39.5 29.8 15.6 7.0 9.09 91,000 0.9 Private
2 Columbia University New York, NY 90.6 39.0 27.0 16.7 7.8 8.06 74,000 1.4 Private
3 Massachusetts Institute of Technology Cambridge, MA 90.4 38.2 29.2 15.8 7.2 9.11 90,000 1.1 Private
3 Stanford University Stanford, CA 90.4 38.9 26.2 17.4 7.9 8.96 83,000 0.8 Private
5 Duke University Durham, NC 90.2 39.5 26.7 17.2 6.8 9.19 77,000 0.4 Private
6 Yale University New Haven, CT 90.0 39.3 26.8 16.9 7.2 8.74 70,000 0.6 Private
7 California Institute of Technology Pasadena, CA 89.8 38.8 30.0 14.6 6.4 8.35 76,000 1.9 Private
8 University of Pennsylvania Philadelphia, PA 89.6 38.4 27.0 17.3 6.9 7.99 79,000 1.5 Private
9 Princeton University Princeton, NJ 89.5 39.1 28.1 15.6 6.8 8.66 76,000 1.0 Private
10 Cornell University Ithaca, NY 88.9 38.1 26.8 17.5 6.6 8.73 72,000 0.7 Private
11 Brown University Providence, RI 87.5 36.1 26.8 17.7 7.0 9.17 60,000 1.7 Private
11 University of Chicago Chicago, IL 87.5 38.2 26.9 15.5 6.8 8.60 63,000 1.0 Private
11 Washington University in St Louis Saint Louis, MO 87.5 37.6 26.2 17.6 6.2 8.65 63,000 0.8 Private
14 Rice University Houston, TX 87.4 36.3 27.2 17.1 6.8 8.59 62,000 0.4 Private
15 Northwestern University Evanston, IL 87.3 36.6 27.2 17.2 6.2 8.38 64,000 1.3 Private
15 University of Southern California Los Angeles, CA 87.3 36.5 25.4 17.6 7.7 8.75 67,000 1.8 Private
17 Dartmouth College Hanover, NH 86.8 37.0 26.6 17.3 5.9 9.05 67,000 0.9 Private
17 Johns Hopkins University Baltimore, MD 86.8 37.7 25.7 16.2 7.1 8.49 68,000 1.1 Private
19 Emory University Atlanta, GA 86.4 36.2 26.0 16.6 7.6 7.92 59,000 1.5 Private
20 Carnegie Mellon University Pittsburgh, PA 86.1 36.8 25.4 17.3 6.7 7.99 74,000 0.6 Private
21 Vanderbilt University Nashville, TN 85.3 37.4 25.5 17.4 5.0 8.91 61,000 1.2 Private
22 Williams College Williamstown, MA 85.0 38.2 24.5 15.8 6.6 8.24 56,000 1.8 Private
23 Amherst College Amherst, MA 84.4 37.5 24.1 15.4 7.4 7.97 57,000 2.4 Private
24 University of Notre Dame Notre Dame, IN 83.1 37.0 24.4 17.1 4.6 8.68 70,000 0.4 Private
25 University of California, Los Angeles Los Angeles, CA 82.2 36.7 19.8 16.9 8.8 8.83 59,000 2.0 Public
26 Pomona College Claremont, CA 82.1 33.1 24.9 16.3 7.8 8.63 52,000 1.8 Private
27 University of Michigan-Ann Arbor Ann Arbor, MI 81.8 37.6 21.0 17.3 6.0 8.75 58,000 1.3 Public
28 Wellesley College Wellesley, MA 81.1 33.0 24.3 16.6 7.1 8.59 57,000 1.8 Private
29 New York University New York, NY 81.0 32.8 23.4 17.1 7.7 8.58 59,000 1.9 Private
30 Swarthmore College Swarthmore, PA 80.9 32.2 24.2 17.3 7.2 7.76 49,000 0.0 Private

TOP SCHOOLS FOR RESOURCES

1. CALIFORNIA INSTITUTE 2. HARVARD UNIVERSITY 3. MASSACHUSETTS
OF TECHNOLOGY Cambridge, Mass. INSTITUTE OF TECHNOLOGY
Pasadena, Calif. UNDERGRADUATE STUDENTS: 9,457 Cambridge, Mass.
UNDERGRADUATE STUDENTS: 962 TUITION AND FEES: $45,278 UNDERGRADUATE STUDENTS: 4,488
TUITION AND FEES: $45,390 ROOM AND BOARD: $15.381 TUITION AND FEES: $46,704
ROOM AND BOARD: $13,371 ROOM AND BOARD: $13,730

31 Georgetown University Washington, DC 80.8 35.3 23.1 16.1 6.3 8.61 84,000 0.8 Private
32 Tufts University Medford, MA 80.6 32.5 25.8 16.4 5.9 8.03 66,000 1.0 Private
33 University of North Carolina at Chapel Hill Chapel Hill, NC 80.2 37.6 20.7 16.5 5.3 8.25 51.000 1.5 Public
34 Case Western Reserve University Cleveland, OH 79.6 32.6 24.2 16.5 6.3 7.97 68,000 1.2 Private
35 Claremont McKenna College Claremont, CA 79.5 31.3 24.8 16.7 6.7 7.98 65,000 0.0 Private
36 Middlebury College Middlebury, VT 79.0 33.9 23.7 16.5 4.8 7.98 54,000 1.5 Private
37 Smith College Northampton, MA 78.9 31.5 23.7 16.9 6.9 8.05 44,000 0.9 Private
38 Carleton College Northfield, MN 78.6 32.6 23.3 16.8 6.0 8.18 48,000 1.0 Private
39 Bowdoin College Brunswick, ME 78.4 33.1 23.7 16.8 4.8 9.02 55,000 1.3 Private
40 Boston University Boston, MA 78.2 33.6 21.3 16.9 6.4 7.72 60,000 1.5 Private
40 University of California, Berkeley Berkeley, CA 78.2 34.6 18.6 16.6 8.4 8.36 62,000 2.0 Public
42 Haverford College Haverford, PA 78.0 32.0 24.5 16.0 5.6 8.28 56,000 3.3 Private
43 Purdue University West Lafayette West Lafayette, IN 77.1 34.0 20.2 17.1 5.7 8.09 53,000 2.8 Public
44 University of Miami Coral Gables, FL 77.0 30.5 21.7 17.2 7.7 7.60 53,000 2.0 Private
45 Wesleyan University Middletown, CT 76.9 30.5 23.8 16.0 6.5 8.48 50,000 1.6 Private
46 University of California, Davis Davis, CA 76.8 33.2 18.1 17.0 8.4 8.28 57,000 2.6 Public
47 University of California, San Diego La Jolla, CA 76.1 34.1 17.8 15.5 8.7 7.27 59,000 2.0 Public
48 University of Illinois at Urbana-Champaign Champaign, IL 75.8 35.9 15.5 17.1 7.4 8.42 57000 1.8 Public
49 Bryn Mawr College Bryn Mawr, PA 75.5 28.3 24.2 15.6 7.3 8.20 52,000 1.7 Private
50 Lehigh University Bethlehem, PA 75.4 29.5 23.5 16.9 5.5 8.20 77,000 1.0 Private
51 University of Rochester Rochester, NY 74.6 28.0 24.2 16.5 5.8 7.80 56,000 1.2 Private
52 Wake Forest University Winston-Salem, NC 74.5 30.8 23.0 16.1 4.5 8.65 60,000 1.2 Private
53 Georgia Institute of Technology Atlanta, GA 74.2 35.8 15.6 15.6 7.1 8.82 74,000 2.1 Public
54 Davidson College Davidson, NC 74.0 31.4 22.2 15.7 4.7 8.54 55,000 2.3 Private
55 Colgate University Hamilton, NY 73.9 29.2 23.4 15.9 5.3 7.65 61,000 1.0 Private
56 University of Texas at Austin Austin, TX 73.8 33.2 16.5 17.4 6.6 8.99 53,000 3.3 Public
56 University of Virginia Charlottesville, VA 73.8 35.1 17.7 16.0 5.0 8.64 59,000 0.9 Public
58 University of Florida Gainesville, FL 73.6 35.5 14.8 17.0 6.4 8.39 51,000 2.1 Public
59 Bucknell University Lewisburg, PA 73.3 30.2 22.6 16.7 3.7 8.21 69,000 2.2 Private
60 Boston College Chestnut Hill, MA 73.1 34.8 18.0 15.7 4.7 7.38 67,000 1.2 Private
61 Hamilton College Clinton, NY 73.0 29.0 23.0 16.6 4.4 8.47 56,000 0.5 Private
61 University of Richmond University of Richmond, VA 73.0 27.4 23.4 17.1 5.0 8.51 60,000 2.1 Private
63 Oberlin College Oberlin, OH 72.9 29.3 23.0 15.7 4.9 8.37 39,000 1.4 Private
64 George Washington University Washington, DC 72.7 29.3 21.0 16.1 6.4 7.34 65,000 1.4 Private
65 Colby College Waterville, ME 72.4 28.9 22.4 16.1 5.0 7.84 53,000 2.6 Private
66 Bates College Lewiston, ME 72.2 28.8 22.6 16.1 4.7 7.89 53,000 2.3 Private
66 Northeastern University Boston, MA 72.2 30.1 18.7 17.4 6.0 8.60 61,000 1.9 Private
66 Vassar College Poughkeepsie, NY 72.2 26.2 23.4 16.0 6.6 8.12 48,000 0.3 Private
69 Ohio State University Columbus, OH 72.1 33.5 16.2 17.2 5.3 8.46 43,000 5.0 Public
70 Lafayette College Easton, PA 72.0 29.9 22.6 15.8 3.7 8.22 69,000 0.9 Private
71 Tulane University New Orleans, LA 71.8 25.8 24.6 16.8 4.6 8.61 53,000 5.1 Private
71 University of Wisconsin-Madison Madison, WI 71.8 34.4 15.9 17.2 4.2 8.66 51,000 1.2 Public
73 Washington and Lee University Lexington, VA 71.4 29.5 23.6 15.6 2.6 8.40 75,000 1.1 Private
74 Barnard College New York, NY 71.3 27.5 20.8 16.1 6.9 8.13 57,000 0.7 Private
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
R6 | Wednesday, September 27, 2017 THE WALL STREET JOURNAL.

JOURNAL REPORT | U.S. COLLEGE RANKINGS

OVERALL
SCORE RIGHT PRIVATE
(Out of a OUTCOME RESOURCES ENGAGEMENT ENVIRONMENT CHOICE DEFAULT OR
RANK COLLEGE CITY / STATE possible 100) (Out of 40) (Out of 30) (Out of 20) (Out of 10) (Out of 10) SALARY RATE PUBLIC
75 Grinnell College Grinnell, IA 71.0 26.1 23.2 15.2 6.4 8.14 44,000 3.5 Private
75 University of Pittsburgh-Pittsburgh campus Pittsburgh, PA 71.0 31.4 18.4 16.5 4.7 7.91 48,000 3.8 Public
77 Mount Holyoke College South Hadley, MA 70.9 25.4 22.1 16.4 7.0 8.65 44,000 2.1 Private
78 Macalester College Saint Paul, MN 70.8 27.3 22.1 15.8 5.6 8.05 46,000 0.3 Private
79 Trinity University San Antonio, TX 70.6 24.8 22.5 17.0 6.3 7.58 54,000 1.8 Private
80 Michigan State University East Lansing, MI 70.5 31.6 15.8 17.3 5.8 8.62 50,000 3.6 Public
81 Southern Methodist University Dallas, TX 70.4 27.1 20.7 17.1 5.6 8.29 53,000 2.9 Private
82 University of Maryland, College Park College Park, MD 70.3 34.0 13.1 16.7 6.5 7.85 60,000 2.1 Public
83 Worcester Polytechnic Institute Worcester, MA 70.2 28.6 20.0 16.3 5.3 8.84 79,000 1.9 Private
84 Denison University Granville, OH 70.0 26.7 21.6 16.2 5.5 8.17 49,000 1.3 Private
84 Drexel University Philadelphia, PA 70.0 25.7 20.3 17.0 6.9 8.54 62,000 3.1 Private
84 College of the Holy Cross Worcester, MA 70.0 29.3 21.3 15.8 3.6 9.15 63,000 0.5 Private
87 Brandeis University Waltham, MA 69.9 26.4 21.8 15.7 5.9 7.89 58,000 1.5 Private
87 Rensselaer Polytechnic Institute Troy, NY 69.9 29.5 18.8 15.0 6.6 7.22 81,000 0.9 Private
89 Franklin & Marshall College Lancaster, PA 69.6 27.5 22.3 15.3 4.4 7.54 54,000 2.2 Private
89 University of Washington-Seattle Seattle, WA 69.6 27.9 17.6 16.7 7.4 7.97 53,000 2.6 Public
91 Occidental College Los Angeles, CA 69.5 27.3 20.4 14.9 6.9 6.55 49,000 0.0 Private
92 Union College Schenectady, NY 69.3 28.8 21.6 15.2 3.7 8.24 63,000 0.9 Private
93 Scripps College Claremont, CA 69.1 24.5 22.4 15.6 6.7 7.60 48,000 1.0 Private
93 Texas A&M University-College Station College Station, TX 69.1 30.9 14.6 17.9 5.8 9.03 53,000 4.1 Public
93 Trinity College Hartford, CT 69.1 26.2 22.2 15.5 5.2 7.12 55,000 3.4 Private
96 University of Denver Denver, CO 68.6 27.3 19.8 16.3 5.2 7.61 52,000 1.6 Private
96 Kenyon College Gambier, OH 68.6 27.3 22.0 15.7 3.6 8.91 44,000 1.5 Private
98 Bentley University Waltham, MA 68.3 29.3 17.3 15.9 5.8 8.51 76,000 1.6 Private
99 University of California, Santa Barbara Santa Barbara, CA 68.1 30.0 14.0 16.5 7.6 8.30 52,000 2.4 Public
100 William & Mary Williamsburg, VA 68.0 30.1 17.8 15.6 4.5 8.40 56,000 0.9 Public
101 Spelman College Atlanta, GA 67.9 28.4 17.8 15.9 5.8 8.98 46,000 7.7 Private
102 Connecticut College New London, CT 67.8 25.9 22.1 15.4 4.4 7.46 51,000 2.1 Private
102 Rhode Island School of Design Providence, RI 67.8 26.6 20.6 14.9 5.7 8.94 46,000 1.0 Private
104 Howard University Washington, DC 67.5 23.8 21.5 16.2 6.1 7.92 46,000 6.1 Private
105 University of Connecticut Storrs, CT 67.4 27.0 18.0 16.5 5.9 7.45 54,000 2.2 Public
105 Saint Louis University Saint Louis, MO 67.4 25.7 20.7 16.2 4.8 8.14 54,000 3.9 Private
105 The College of Wooster Wooster, OH 67.4 26.6 19.7 16.4 4.7 7.92 45,000 1.2 Private
108 Syracuse University Syracuse, NY 67.2 28.5 15.7 17.0 6.0 8.51 57,000 3.1 Private
109 DePauw University Greencastle, IN 67.1 25.0 21.0 15.9 5.2 6.85 48,000 2.9 Private
110 Gettysburg College Gettysburg, PA 67.0 26.6 21.4 15.8 3.2 7.90 52,000 1.5 Private
111 University of Illinois at Chicago Chicago, IL 66.7 24.8 17.7 16.0 8.1 7.30 51,000 2.8 Public
111 Rose-Hulman Institute of Technology Terre Haute, IN 66.7 28.9 18.8 15.2 3.9 9.35 79,000 0.5 Private
113 Brigham Young University-Provo Provo, UT 66.6 33.7 12.9 17.9 2.1 9.16 57,000 1.1 Private
113 Dickinson College Carlisle, PA 66.6 27.1 20.6 15.2 3.7 7.13 53,000 0.9 Private
115 Pitzer College Claremont, CA 66.5 22.6 20.2 16.7 7.0 8.05 45,000 1.5 Private
115 Wheaton College (Massachusetts) Norton, MA 66.5 23.7 21.5 16.1 5.2 8.32 45,000 1.5 Private
117 University at Buffalo Buffalo, NY 66.4 23.5 19.7 15.8 7.4 7.47 49,000 3.1 Public
117 University of the Pacific Stockton, CA 66.4 24.5 18.3 15.9 7.7 7.21 67,000 1.4 Private
119 Yeshiva University New York, NY 66.3 25.0 23.8 13.8 3.8 7.66 56,000 1.5 Private
120 Colorado College Colorado Springs, CO 66.1 22.1 22.0 16.2 5.8 8.23 40,000 0.9 Private
120 Villanova University Villanova, PA 66.1 27.9 18.8 16.2 3.3 7.94 74,000 1.1 Private

TOP SCHOOLS FOR OUTCOMES

1. HARVARD UNIVERSITY 3. YALE UNIVERSITY

Cambridge, Mass. New Haven, Conn.
UNDERGRADUATE STUDENTS: 9,457 UNDERGRADUATE STUDENTS: 7,078
TUITION AND FEES: $45,278 TUITION AND FEES: $47,600
ROOM AND BOARD: $15,381 ROOM AND BOARD: $14,600

1. DUKE UNIVERSITY
Durham, N.C.
UNDERGRADUATE STUDENTS: 8,137
TUITION AND FEES: $49,241
ROOM AND BOARD: $14,032

122 University of Minnesota Twin Cities Minneapolis, MN 66.0 28.4 15.5 17.0 5.1 8.39 48,000 2.2 Public
123 Babson College Wellesley, MA 65.8 28.7 15.7 15.2 6.2 8.17 86,000 0.5 Private
123 Virginia Polytechnic Institute and State University Blacksburg, VA 65.8 29.9 14 17.3 4.6 9.09 58,000 1.7 Public
125 Illinois Institute of Technology Chicago, IL 65.7 26.2 17.4 14.1 8.0 6.85 69,000 2.1 Private
125 Pennsylvania State University University Park, PA 65.7 25.4 17.9 17.0 5.4 8.86 48,000 4.9 Public
127 Seattle University Seattle, WA 65.6 23.5 18.5 16.4 7.3 7.70 56,000 1.7 Private
128 Allegheny College Meadville, PA 65.5 24.9 20.6 15.5 4.4 7.72 49,000 2.8 Private
128 Loyola Marymount University Los Angeles, CA 65.5 22.2 19.3 16.7 7.4 8.65 55,000 1.7 Private
130 Furman University Greenville, SC 65.4 26.2 20.4 16.2 2.7 7.97 47,000 3.1 Private
130 Reed College Portland, OR 65.4 23.0 23.0 14.2 5.2 8.14 36,000 3.3 Private
130 Rochester Institute of Technology Rochester, NY 65.4 25.2 18.0 17.0 5.2 8.16 58,000 3.1 Private
130 Stevens Institute of Technology Hoboken, NJ 65.4 26.3 19.8 14.4 4.9 7.75 83,000 1.5 Private
134 ArtCenter College of Design Pasadena, CA 65.2 24.1 18.7 14.9 7.5 8.97 54,000 4.0 Private
134 Creighton University Omaha, NE 65.2 23.9 21.2 16.7 3.5 8.50 57,000 1.4 Private
136 Willamette University Salem, OR 65.1 23.9 19.6 15.5 6.1 7.83 49,000 1.8 Private
137 North Carolina State University at Raleigh Raleigh, NC 65.0 28.0 15.6 17.0 4.4 8.36 48,000 2.8 Public
138 Indiana University Bloomington Bloomington, IN 64.9 28.6 14.1 17.2 5.0 8.53 45,000 3.1 Public
139 University of California, Irvine Irvine, CA 64.8 23.5 15.8 16.3 9.1 8.08 55,000 2.1 Public
140 Hobart and William Smith Colleges Geneva, NY 64.7 25.3 20.5 15.2 3.7 6.88 49,000 1.9 Private
141 Arizona State University Tempe, AZ 64.4 25.7 14.0 16.7 7.9 8.10 45,000 7.0 Public
141 Illinois Wesleyan University Bloomington, IL 64.4 25.7 19.5 15.6 3.6 8.08 54,000 1.0 Private
143 Ohio Northern University Ada, OH 64.3 24.9 19.1 17.5 2.8 8.63 56,000 1.9 Private
143 Skidmore College Saratoga Springs, NY 64.3 21.4 22.9 15.3 4.7 7.86 43,000 2.0 Private
145 Elon University Elon, NC 64.2 25.4 18.6 17.3 2.9 7.74 46,000 1.3 Private
145 University of Iowa Iowa City, IA 64.2 26.5 15.9 16.9 4.9 8.71 49,000 2.8 Public
147 Rutgers University-New Brunswick New Brunswick, NJ 64.1 25.8 14.9 16.0 7.4 7.80 55,000 3.4 Public
147 Stony Brook University Stony Brook, NY 64.1 24.6 16.2 15.3 8.1 7.19 55,000 3.3 Public
149 University of Delaware Newark, DE 64.0 27.1 15.8 16.7 4.4 7.93 55,000 2.0 Public
150 Centre College Danville, KY 63.9 25.9 20.2 15.5 2.3 8.27 44,000 1.9 Private
150 Gustavus Adolphus College Saint Peter, MN 63.9 25.7 19.0 16.0 3.3 7.05 50,000 0.5 Private
152 Clarkson University Potsdam, NY 63.8 27.2 17.9 14.6 4.2 7.35 68,000 1.8 Private
153 Kalamazoo College Kalamazoo, MI 63.6 26.5 16.5 15.0 5.6 8.15 51,000 0.0 Private
153 St Olaf College Northfield, MN 63.6 24.9 19.2 16.0 3.6 8.55 45,000 0.7 Private
155 University of Massachusetts Amherst Amherst, MA 63.4 27.9 14.6 16.3 4.7 8.22 49,000 3.1 Public
155 Michigan Technological University Houghton, MI 63.4 25.5 17.4 16.6 3.8 9.28 61,000 2.0 Public
155 Pepperdine University Malibu, CA 63.4 25.1 15.4 16.2 6.7 8.01 60,000 1.9 Private
158 Marquette University Milwaukee, WI 63.2 26.8 15.4 17.1 3.9 8.16 56,000 1.2 Private
158 Stonehill College Easton, MA 63.2 27.5 17.5 16.2 2.0 7.98 59,000 0.9 Private
160 St Lawrence University Canton, NY 63.1 23.5 20.0 15.9 3.7 8.55 46,000 2.5 Private
160 Temple University Philadelphia, PA 63.1 23.5 15.4 17.1 7.0 8.29 47,000 4.5 Public
162 University of Puget Sound Tacoma, WA 62.9 24.5 19.6 16.0 2.8 7.47 50,000 1.8 Private
162 Rhodes College Memphis, TN 62.9 24.1 20.4 15.4 3.0 7.73 51,000 2.1 Private
164 Bradley University Peoria, IL 62.8 24.2 17.3 17.6 3.8 8.20 52,000 3.3 Private
164 University of San Diego San Diego, CA 62.8 25.8 14.9 15.6 6.6 7.67 57,000 2.3 Private
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. Wednesday, September 27, 2017 | R7

JOURNAL REPORT | U.S. COLLEGE RANKINGS

OVERALL
SCORE RIGHT PRIVATE
(Out of a OUTCOME RESOURCES ENGAGEMENT ENVIRONMENT CHOICE DEFAULT OR
RANK COLLEGE CITY / STATE possible 100) (Out of 40) (Out of 30) (Out of 20) (Out of 10) (Out of 10) SALARY RATE PUBLIC
166 Linfield College – McMinnville campus McMinnville, OR 62.7 24.2 18.3 15.2 5.0 7.53 52,000 1.9 Private
166 Whitman College Walla Walla, WA 62.7 21.1 22.7 16.2 2.7 8.22 43,000 0.4 Private
168 Santa Clara University Santa Clara, CA 62.6 23.4 16.8 16.1 6.4 7.46 68,000 1.7 Private
169 Simmons College Boston, MA 62.4 22.7 18.9 15.6 5.1 7.22 51,000 1.4 Private
170 Berea College Berea, KY 62.3 19.4 19.9 16.5 6.5 9.07 34,000 10.4 Private
170 University of Tulsa Tulsa, OK 62.3 19.1 20.7 17.1 5.4 8.74 43,000 2.9 Private
172 Susquehanna University Selinsgrove, PA 62.2 24.9 17.5 16.1 3.6 7.72 50,000 2.9 Private
172 Washington & Jefferson College Washington, PA 62.2 25.7 18.1 15.3 3.3 8.10 49,000 2.1 Private
174 Butler University Indianapolis, IN 62.1 24.5 18.3 17.3 1.9 8.84 54,000 1.5 Private
174 University of Colorado Boulder Boulder, CO 62.1 27.1 13.7 16.6 4.6 8.34 48,000 3.1 Public
174 Ohio Wesleyan University Delaware, OH 62.1 21.4 20.0 16.8 3.9 7.80 42,000 5.1 Private
177 Chapman University Orange, CA 61.9 26.0 14.5 16.4 5.1 8.31 51,000 2.7 Private
177 Sewanee-The University of the South Sewanee, TN 61.9 21.9 21.1 16.1 2.8 8.52 39,000 2.9 Private
179 University of Arizona Tucson, AZ 61.7 25.8 11.9 17.0 7.1 7.69 44,000 5.7 Public
179 Knox College Galesburg, IL 61.7 22.2 18.5 15.3 5.8 7.57 42,000 2.6 Private
179 Lawrence University Appleton, WI 61.7 21.6 20.5 15.3 4.3 7.88 42,000 2.3 Private
179 Texas Christian University Fort Worth, TX 61.7 23.1 16.8 18.1 3.6 8.54 50,000 3.7 Private
179 Wofford College Spartanburg, SC 61.7 26.2 17.6 15.8 2.1 8.69 48,000 3.7 Private
184 Bryant University Smithfield, RI 61.6 27.1 14.4 15.8 4.3 8.50 63,000 1.7 Private
184 Drake University Des Moines, IA 61.6 24.2 17.1 16.8 3.5 7.45 56,000 2.1 Private
184 Loyola University Maryland Baltimore, MD 61.6 25.5 16.9 15.6 3.6 7.88 63,000 0.8 Private
184 Missouri University of Science and Technology Rolla, MO 61.6 25.7 15.9 14.9 5.0 8.26 65,000 4.3 Public
188 Baylor University Waco, TX 61.5 22.4 17.1 17.7 4.3 8.57 49,000 4.1 Private
188 Clemson University Clemson, SC 61.5 27.2 14.1 17.0 3.1 8.88 50,000 3.0 Public
188 University of Detroit Mercy Detroit, MI 61.5 21.6 18.6 16.0 5.3 8.18 44,000 3.3 Private
191 Colorado School of Mines Golden, CO 61.4 26.5 15.5 15.1 4.3 8.59 75,000 2.1 Public
191 Hampton University Hampton, VA 61.4 21.8 18.5 15.4 5.6 6.86 42,000 7.0 Private
191 Ursinus College Collegeville, PA 61.4 25.9 16.3 15.6 3.6 7.80 52,000 3.3 Private
194 Loyola University Chicago Chicago, IL 61.3 24.3 15.4 16.1 5.5 6.23 51,000 3.2 Private
194 Virginia Military Institute Lexington, VA 61.3 26.0 18.3 14.7 2.2 9.02 58,000 2.7 Public
196 Embry-Riddle Aeronautical University, Daytona Beach Daytona Beach, FL 61.0 23.2 16.9 14.6 6.3 8.08 61,000 4.9 Private
196 SUNY Binghamton University Vestal, NY 61.0 27.1 10.9 15.6 7.4 6.91 58,000 1.9 Public
198 American University Washington, DC 60.9 22.5 16.8 15.4 6.2 7.59 56,000 1.5 Private
198 Catholic University of America Washington, DC 60.9 17.1 22.8 16.3 4.7 7.31 54,000 2.6 Private
198 Rutgers University-Newark Newark, NJ 60.9 20.3 18.4 14.4 7.8 7.16 55,000 3.4 Public
198 Saint Mary's College Notre Dame, IN 60.9 23.8 18.9 15.5 2.7 8.12 46,000 0.9 Private
202 Muhlenberg College Allentown, PA 60.8 25.6 18.0 15.5 1.8 7.52 56,000 3.1 Private
203 Quinnipiac University Hamden, CT 60.6 24.9 16.1 16.0 3.6 7.97 57,000 1.5 Private
203 Saint Mary's College of California Moraga, CA 60.6 22.0 15.8 16.4 6.5 7.48 59,000 3.2 Private
205 Beloit College Beloit, WI 60.5 20.2 19.3 16.0 5.0 6.07 38,000 1.4 Private
205 Drew University Madison, NJ 60.5 19.5 19.4 15.2 6.4 7.53 51,000 3.9 Private
205 Molloy College Rockville Centre, NY 60.5 24.8 14.6 15.8 5.3 8.36 57,000 3.3 Private
205 Washington College Chestertown, MD 60.5 23.6 18.6 15.4 2.9 8.11 46,000 1.7 Private
209 Juniata College Huntingdon, PA 60.4 24.6 15.9 16.5 3.5 7.56 45,000 2.9 Private
209 Siena College Loudonville, NY 60.4 26.2 16.2 15.0 3.0 7.65 55,000 1.8 Private
211 Ithaca College Ithaca, NY 60.3 23.3 16.7 17.2 3.2 8.30 50,000 2.0 Private
212 Fordham University Bronx, NY 60.2 23.6 15.3 15.8 5.5 7.51 56,000 2.8 Private

TOP SCHOOLS FOR ENGAGEMENT

2. TEXAS CHRISTIAN UNIVERSITY

Fort Worth, Texas
UNDERGRADUATE STUDENTS: 8,502
TUITION AND FEES: $40,720
ROOM AND BOARD: $11,800

1. DORDT COLLEGE
Sioux Center, Iowa
UNDERGRADUATE STUDENTS: 1,437
TUITION AND FEES: $28,280
ROOM AND BOARD: $8,350

213 Florida Institute of Technology Melbourne, FL 60.1 15.7 21.2 15.7 7.5 8.08 54,000 11.0 Private
214 Fairfield University Fairfield, CT 60.0 25.4 16.2 16.0 2.4 8.13 69,000 1.6 Private
214 University of Scranton Scranton, PA 60.0 23.8 17.5 16.8 1.8 7.20 56,000 3.2 Private
216 Cornell College Mount Vernon, IA 59.9 22.4 17.7 15.9 3.9 8.70 41,000 2.3 Private
216 Lake Forest College Lake Forest, IL 59.9 22.6 15.8 15.1 6.5 8.03 48,000 4.1 Private
218 Saint John's University Collegeville, MN 59.8 26.8 15.9 14.5 2.7 7.61 56,000 0.9 Private
218 University of the Sciences Philadelphia, PA 59.8 18.5 21.9 13.9 5.5 7.57 91,000 2.9 Private
220 Mercer University Macon, GA 59.7 19.2 16.7 16.9 6.9 8.25 47,000 4.4 Private
220 Otis College of Art and Design Los Angeles, CA 59.7 19.4 18.0 14.5 7.8 7.45 44,000 3.4 Private
220 University of San Francisco San Francisco, CA 59.7 20.7 14.8 15.7 8.4 7.31 61,000 2.4 Private
220 Xavier University Cincinnati, OH 59.7 21.8 16.7 17.3 3.9 7.90 48,000 3.1 Private
224 University of Dayton Dayton, OH 59.6 24.4 14.1 17.2 3.8 8.68 51,000 2.2 Private
224 St Mary's College of Maryland St. Mary's City, MD 59.6 21.3 19.0 15.2 4.1 8.56 48,000 3.1 Public
226 Saint Anselm College Manchester, NH 59.5 25.9 16.9 15.3 1.4 7.81 54,000 1.1 Private
226 Samford University Birmingham, AL 59.5 21.5 18.5 17.2 2.3 8.71 46,000 2.1 Private
228 California Polytechnic State University, San Luis Obispo San Luis Obispo, CA 59.4 28.5 8.4 17.6 5.0 9.00 61000 1.8 Public
228 Washington State University Pullman, WA 59.4 22.8 13.2 17.2 6.3 8.07 47,000 3.3 Public
230 Manhattan College Riverdale, NY 59.3 24.0 15.3 15.3 4.8 7.68 63,000 2.9 Private
230 Marietta College Marietta, OH 59.3 21.0 18.9 15.9 3.5 7.71 41,000 4.9 Private
230 College of Saint Benedict Saint Joseph, MN 59.3 25.3 15.5 15.8 2.8 7.81 47,000 0.9 Private
233 Gonzaga University Spokane, WA 59.1 23.3 16.6 16.3 2.9 9.14 53,000 1.1 Private
233 Lewis & Clark College Portland, OR 59.1 21.5 18.2 14.8 4.7 7.47 42,000 1.6 Private
233 The College of New Jersey Ewing, NJ 59.1 24.6 13.2 16.3 5.0 8.87 56,000 1.5 Public
233 Widener University Chester, PA 59.1 20.7 17.6 16.1 4.8 7.74 52,000 3.9 Private
237 Wheaton College (Illinois) Wheaton, IL 59.0 22.7 17.1 15.9 3.3 7.93 43,000 0.4 Private
238 Austin College Sherman, TX 58.8 22.2 16.3 15.4 4.8 7.96 48,000 5.4 Private
239 Clark University Worcester, MA 58.7 18.7 18.6 15.2 6.1 7.64 43,000 1.7 Private
239 Providence College Providence, RI 58.7 24.7 15.2 16.4 2.3 7.39 59,000 2.9 Private
241 University of Colorado Denver Denver, CO 58.6 20.2 17.3 14.7 6.4 7.71 66,000 3.3 Public
241 Hope College Holland, MI 58.6 22.7 15.9 17.2 2.8 8.51 43,000 2.1 Private
243 Elizabethtown College Elizabethtown, PA 58.5 22.2 17.8 15.7 2.7 8.05 48,000 2.2 Private
243 Hanover College Hanover, IN 58.5 21.2 18.4 15.7 3.1 8.39 43,000 4.3 Private
243 Luther College Decorah, IA 58.5 22.2 17.9 15.8 2.5 8.17 42,000 1.2 Private
246 Augustana College (Illinois) Rock Island, IL 58.4 23.5 14.7 16.9 3.3 8.22 49,000 3.0 Private
247 Albion College Albion, MI 58.3 20.0 19.3 16.7 2.3 7.55 45,000 3.6 Private
247 University of Vermont Burlington, VT 58.3 22.5 16.7 16.6 2.5 7.11 44,000 3.0 Public
249 Duquesne University Pittsburgh, PA 58.2 24.2 15.4 16.4 2.2 7.17 54,000 2.6 Private
249 Westminster College (Pennsylvania) New Wilmington, PA 58.2 23.8 16.9 16.1 1.5 7.51 44,000 2.7 Private
251 Dominican University of California San Rafael, CA 58.0 18.0 19.2 14.7 6.2 7.25 52,000 4.3 Private
251 Rollins College Winter Park, FL 58.0 18.0 18.7 16.0 5.3 8.79 42,000 3.9 Private
253 Earlham College Richmond, IN 57.8 13.8 22.2 15.3 6.5 8.24 33,000 3.4 Private
253 Embry-Riddle Aeronautical University, Prescott Prescott, AZ 57.8 24.1 13.0 15.3 5.4 8.57 61,000 4.9 Private
255 Florida State University Tallahassee, FL 57.7 25.8 9.4 16.8 5.7 8.38 44,000 4.4 Public
255 University of Oklahoma Norman, OK 57.7 22.2 12.9 16.6 6.0 7.90 47,000 4.6 Public
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
R8 | Wednesday, September 27, 2017 THE WALL STREET JOURNAL.

JOURNAL REPORT | U.S. COLLEGE RANKINGS

OVERALL
SCORE RIGHT PRIVATE
(Out of a OUTCOME RESOURCES ENGAGEMENT ENVIRONMENT CHOICE DEFAULT OR
RANK COLLEGE CITY / STATE possible 100) (Out of 40) (Out of 30) (Out of 20) (Out of 10) (Out of 10) SALARY RATE PUBLIC
257 Hofstra University Hempstead, NY 57.5 17.9 17.2 16.7 5.7 7.51 53,000 3.3 Private
257 SUNY University at Albany Albany, NY 57.5 22.4 13.0 14.6 7.5 7.19 50,000 4.5 Public
257 Valparaiso University Valparaiso, IN 57.5 20.7 15.5 17.1 4.2 8.12 49,000 3.6 Private
257 Westmont College Santa Barbara, CA 57.5 21.9 16.0 15.2 4.4 8.45 48,000 1.5 Private
261 University of Georgia Athens, GA 57.3 25.3 10.3 17.1 4.7 8.35 47,000 2.3 Public
262 University of Kansas Lawrence, KS 57.2 18.5 16.4 17.0 5.3 8.32 45,000 4.3 Public
262 Pratt Institute Brooklyn, NY 57.2 17.2 18.9 14.6 6.5 8.06 40,000 4.1 Private
264 Alma College Alma, MI 57.1 20.4 18.4 15.6 2.6 8.52 44,000 2.3 Private
264 John Carroll University University Heights, OH 57.1 24.4 14.3 15.6 2.8 7.44 51,000 2.7 Private
264 Sarah Lawrence College Bronxville, NY 57.1 16.2 20.5 14.6 5.8 8.06 38,000 2.2 Private
264 Transylvania University Lexington, KY 57.1 22.2 17.1 15.6 2.1 8.82 40,000 2.6 Private
268 University of Alabama at Birmingham Birmingham, AL 57.0 18.8 15.9 15.7 6.6 8.13 40,000 5.4 Public
268 Concordia College at Moorhead Moorhead, MN 57.0 21.7 15.8 17.6 1.9 8.83 41,000 1.4 Private
268 University of South Carolina-Columbia Columbia, SC 57.0 23.6 12.7 16.2 4.5 8.18 42,000 4.6 Public
271 CUNY Bernard M. Baruch College New York, NY 56.9 25.8 8.2 14.1 8.8 7.04 54,000 2.5 Public
272 CUNY City College of New York New York, NY 56.8 15.5 17.9 14.6 8.8 7.04 45,000 5.0 Public
272 University of California, Riverside Riverside, CA 56.8 18.9 13.5 16.0 8.5 8.00 48,000 2.8 Public
274 Augustana College (South Dakota) Sioux Falls, SD 56.7 21.6 16.6 16.1 2.3 7.92 42,000 2.3 Private
274 George Mason University Fairfax, VA 56.7 23.7 11.0 15.7 6.4 7.39 57,000 2.1 Public
274 Houghton College Houghton, NY 56.7 21.7 16.4 15.8 2.8 8.09 40,000 1.0 Private
274 Southwestern University Georgetown, TX 56.7 19.1 17.0 15.9 4.8 8.63 47,000 4.1 Private
278 Adelphi University Garden City, NY 56.6 18.8 16.0 15.0 6.8 6.75 51,000 3.5 Private
279 Bard College Annandale-On-Hudson, NY 56.4 16.2 22.2 14.0 4.1 6.74 37,000 2.8 Private
279 Goucher College Baltimore, MD 56.4 18.8 18.2 14.5 4.9 7.20 46,000 3.7 Private
281 DePaul University Chicago, IL 56.3 21.5 11.4 16.8 6.7 7.49 51,000 3.4 Private
282 Hendrix College Conway, AR 56.2 18.6 18.8 15.8 3.0 7.81 40,000 3.8 Private
283 Moravian College Bethlehem, PA 55.9 22.0 15.1 15.5 3.3 8.29 49,000 4.2 Private
284 Oklahoma City University Oklahoma City, OK 55.8 14.2 18.7 17.5 5.5 8.51 40,000 3.8 Private
284 Suffolk University Boston, MA 55.8 18.1 14.8 15.8 7.1 6.60 51,000 3.2 Private
286 University of California, Santa Cruz Santa Cruz, CA 55.7 21.8 11.2 14.9 7.7 7.40 44,000 3.1 Public
286 University of Oregon Eugene, OR 55.7 21.9 11.5 16.2 6.2 7.95 42,000 3.1 Public
286 Pacific Lutheran University Tacoma, WA 55.7 19.6 15.2 15.7 5.2 8.13 46,000 3.4 Private
289 California College of the Arts San Francisco, CA 55.6 14.7 18.0 14.6 8.3 8.05 34,000 5.6 Private
289 Rutgers University-Camden Camden, NJ 55.6 16.9 17.9 14.1 6.7 7.52 55,000 3.4 Public
289 Western New England University Springfield, MA 55.6 18.7 16.3 16.0 4.6 8.33 56,000 4.1 Private
292 Iowa State University Ames, IA 55.5 23.3 10.9 16.7 4.6 8.26 48,000 3.5 Public
292 La Salle University Philadelphia, PA 55.5 21.1 13.2 15.9 5.4 7.89 52,000 3.7 Private
292 University of Saint Joseph West Hartford, CT 55.5 18.0 16.3 14.7 6.5 7.79 50,000 3.2 Private
292 Seton Hall University South Orange, NJ 55.5 20.8 12.8 15.7 6.1 7.63 54,000 3.6 Private
296 California Institute of the Arts Valencia, CA 55.4 13.6 19.9 14.7 7.2 8.83 32,000 4.1 Private
296 Whittier College Whittier, CA 55.4 16.1 17.0 14.9 7.4 8.29 45,000 3.0 Private
298 Coe College Cedar Rapids, IA 55.3 20.7 15.7 16.0 2.9 8.29 43,000 1.3 Private
298 Mount Saint Mary's University Los Angeles, CA 55.3 20.1 12.2 15.3 7.8 7.04 50,000 6.1 Private
298 University of Portland Portland, OR 55.3 24.9 11.4 15.3 3.7 7.93 53,000 1.1 Private
301 University of Evansville Evansville, IN 55.2 18.7 15.3 17.3 3.8 8.42 40,000 2.1 Private
301 Wayne State University Detroit, MI 55.2 14.6 16.7 16.2 7.7 7.42 40,000 6.3 Public
303 Calvin College Grand Rapids, MI 55.1 18.6 15.7 17.4 3.4 8.21 41,000 2.7 Private

TOP SCHOOLS FOR ENVIRONMENT

1. LA SIERRA UNIVERSITY 2. CALIFORNIA STATE UNIVERSITY,
Riverside, Calif. NORTHRIDGE
UNDERGRADUATE STUDENTS: 1,901 Northridge, Calif.
TUITION AND FEES: $30,471 UNDERGRADUATE STUDENTS: 28,397
ROOM AND BOARD: $7,800 TUITION AND FEES: $6,569 (in-state)
$17,729 (out-of-state)
ROOM AND BOARD: $9,962

303 Hampshire College Amherst, MA 55.1 13.6 19.9 16.3 5.3 7.92 32,000 3.6 Private
305 Lebanon Valley College Annville, PA 54.9 20.9 16.6 15.3 2.2 8.21 46,000 3.2 Private
306 Auburn University Auburn, AL 54.8 21.1 13.0 17.6 3.1 8.91 46,000 4.3 Public
306 Baldwin Wallace University Berea, OH 54.8 20.8 13.6 17.2 3.2 7.99 44,000 4.1 Private
306 CUNY Hunter College New York, NY 54.8 18.3 13.5 14.6 8.4 6.59 45,000 3.9 Public
306 Point Loma Nazarene University San Diego, CA 54.8 21.6 11.0 17.4 4.9 9.10 49,000 2.3 Private
310 University of Hartford West Hartford, CT 54.7 15.6 18.5 15.7 4.9 7.15 46,000 4.2 Private
310 Kettering University Flint, MI 54.7 19.8 14.8 14.8 5.2 8.24 76,000 1.9 Private
312 Miami University Oxford, OH 54.6 20.9 11.4 17.5 4.7 8.22 46,000 9.3 Public
312 Saint Michael's College Colchester, VT 54.6 21.9 14.9 15.8 2.0 8.52 46,000 3.0 Private
312 Taylor University Upland, IN 54.6 18.7 15.7 17.5 2.7 8.62 38,000 2.0 Private
312 The University of Tennessee-Knoxville Knoxville, TN 54.6 20.2 14.0 16.6 3.8 8.29 42,000 4.8 Public
312 University of Utah Salt Lake City, UT 54.6 19.0 13.5 17.1 4.9 8.36 49,000 3.4 Public
312 University of Washington-Tacoma Tacoma, WA 54.6 15.5 16.1 15.4 7.6 7.76 53,000 2.6 Public
312 College for Creative Studies Detroit, MI 54.6 18.6 16.2 15.0 4.9 8.07 40,000 5.6 Private
319 Colorado State University-Fort Collins Fort Collins, CO 54.5 20.9 12.7 17.0 3.9 8.45 44,000 2.5 Public
319 University of Hawai-i at M-noa Honolulu, HI 54.5 11.2 19.9 15.6 7.8 7.70 44,000 4.3 Public
319 Pacific University Forest Grove, OR 54.5 14.0 18.8 15.8 5.9 8.00 42,000 1.8 Private
322 Bellarmine University Louisville, KY 54.3 20.0 16.0 16.2 2.1 8.59 46,000 4.4 Private
322 Hampden-Sydney College Hampden-Sydney, VA 54.3 17.9 19.4 15.4 1.7 8.18 50,000 3.9 Private
322 Pace University-New York New York, NY 54.3 19.3 11.7 15.9 7.4 6.50 58,000 4.3 Private
322 Rowan University Glassboro, NJ 54.3 20.3 12.7 15.8 5.6 8.61 49,000 4.4 Public
322 Saint Joseph's University Philadelphia, PA 54.3 20.9 13.1 16.8 3.4 8.33 58,000 3.2 Private
322 William Jewell College Liberty, MO 54.3 18.0 17.5 16.3 2.4 8.65 41,000 4.6 Private
328 University of Cincinnati-Uptown Cincinnati, OH 54.2 19.5 12.5 17.3 4.8 8.36 39,000 7.6 Public
328 University of Mississippi University, MS 54.2 19.0 14.3 16.5 4.5 8.79 41,000 7.6 Public
330 Illinois College Jacksonville, IL 54.0 16.7 18.2 14.9 4.1 7.74 38,000 4.0 Private
330 University of Missouri-Columbia Columbia, MO 54.0 22.8 11.2 16.1 4.0 7.45 46,000 4.4 Public
330 University of Nevada, Reno Reno, NV 54.0 19.0 12.3 16.5 6.3 8.13 45,000 5.2 Public
330 Saint Francis University Loretto, PA 54.0 22.9 12.4 16.8 1.9 8.49 47,000 4.7 Private
334 Cedar Crest College Allentown, PA 53.9 17.0 14.8 17.3 4.9 8.48 46,000 4.3 Private
335 Andrews University Berrien Springs, MI 53.8 10.9 18.7 16.1 8.0 7.85 35,000 4.1 Private
335 Nazareth College Rochester, NY 53.8 15.6 18.1 16.7 3.3 7.78 44,000 2.5 Private
335 Nova Southeastern University Fort Lauderdale, FL 53.8 14.9 14.9 16.0 8.0 7.69 46,000 3.1 Private
338 CUNY Brooklyn College Brooklyn, NY 53.7 20.4 9.8 15.5 8.0 7.46 44,000 4.4 Public
338 Southern Illinois University Carbondale Carbondale, IL 53.7 14.3 15.9 16.4 7.0 7.84 41,000 8.7 Public
340 Saint Vincent College Latrobe, PA 53.6 22.1 13.7 16.0 1.8 8.13 45,000 3.0 Private
340 Stetson University DeLand, FL 53.6 15.2 17.2 15.6 5.5 7.71 42,000 3.7 Private
340 Tuskegee University Tuskegee, AL 53.6 15.7 17.4 15.0 5.6 7.73 37,000 12.0 Private
343 University of New England Biddeford, ME 53.5 21.5 15.5 14.9 1.5 6.91 45,000 2.6 Private
343 University of Redlands Redlands, CA 53.5 21.2 10.7 15.8 5.8 8.08 53,000 2.7 Private
345 Brigham Young University-Hawaii Laie, HI 53.4 19.9 9.6 16.5 7.5 9.39 40,000 5.7 Private
346 Carroll College Helena, MT 53.3 22.1 13.4 16.3 1.4 8.14 45,000 2.1 Private
346 Queens University of Charlotte Charlotte, NC 53.3 15.7 17.2 15.6 4.9 7.27 38,000 5.9 Private
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. Wednesday, September 27, 2017 | R9

JOURNAL REPORT | U.S. COLLEGE RANKINGS

OVERALL
SCORE RIGHT PRIVATE
(Out of a OUTCOME RESOURCES ENGAGEMENT ENVIRONMENT CHOICE DEFAULT OR
RANK COLLEGE CITY / STATE possible 100) (Out of 40) (Out of 30) (Out of 20) (Out of 10) (Out of 10) SALARY RATE PUBLIC
348 Merrimack College North Andover, MA 53.2 22.1 12.3 15.9 3.0 7.48 56,000 3.9 Private
348 Rider University Lawrenceville, NJ 53.2 17.4 15.6 15.2 5.0 7.07 49,000 4.8 Private
348 Springfield College Springfield, MA 53.2 21.5 13.8 15.2 2.7 8.19 44,000 7.1 Private
348 University of St Thomas Saint Paul, MN 53.2 19.7 13.7 16.6 3.3 7.90 55,000 1.9 Private
348 University of Washington-Bothell Bothell, WA 53.2 16.5 14.3 14.8 7.7 7.73 53,000 2.6 Public
353 St John Fisher College Rochester, NY 53.1 18.8 15.4 16.0 2.9 8.48 45,000 3.0 Private
353 St Norbert College De Pere, WI 53.1 21.8 12.6 17.0 1.7 8.54 45,000 1.3 Private
355 Kansas State University Manhattan, KS 53.0 18.0 13.3 17.3 4.3 8.76 43,000 5.0 Public
355 MCPHS University Boston, MA 53.0 23.8 9.4 13.0 6.8 6.36 115,000 1.6 Private
357 Lawrence Technological University Southfield, MI 52.9 18.0 14.7 15.2 5.0 8.38 54,000 3.7 Private
357 University of Maryland, Baltimore County Baltimore, MD 52.9 21.6 9.4 15.0 6.9 7.35 54,000 3.7 Public
357 Xavier University of Louisiana New Orleans, LA 52.9 18.1 12.9 15.4 6.5 6.38 47,000 8.5 Private
360 Albright College Reading, PA 52.8 21.3 11.0 14.9 5.5 6.47 47,000 4.6 Private
360 Assumption College Worcester, MA 52.8 22.9 12.3 15.4 2.2 7.27 53,000 2.8 Private
360 Azusa Pacific University Azusa, CA 52.8 16.2 13.8 15.6 7.2 8.33 50,000 3.0 Private
360 Elmhurst College Elmhurst, IL 52.8 21.9 10.5 16.6 3.9 7.49 48,000 1.8 Private
360 Hartwick College Oneonta, NY 52.8 17.8 17.3 14.4 3.2 6.90 44,000 6.2 Private
360 University of Kentucky Lexington, KY 52.8 19.3 13.0 16.8 3.8 8.07 42,000 4.5 Public
366 SUNY College of Environmental Science and Forestry Syracuse, NY 52.7 19.0 15.2 15.7 2.7 9.06 43,000 2.5 Public
367 CUNY Queens College Queens, NY 52.6 19.9 9.4 15.5 7.9 7.28 48,000 3.5 Public
367 Canisius College Buffalo, NY 52.6 18.0 15.5 15.9 3.1 7.11 46,000 3.5 Private
367 Cedarville University Cedarville, OH 52.6 21.1 12.0 17.9 1.6 8.70 41,000 2.0 Private
367 Marian University (Indiana) Indianapolis, IN 52.6 19.2 15.1 15.0 3.3 7.37 41,000 5.3 Private
371 Messiah College Mechanicsburg, PA 52.5 19.2 13.9 17.5 1.9 8.37 42,000 2.6 Private
371 New Jersey Institute of Technology Newark, NJ 52.5 21.0 10.3 13.4 7.9 7.58 65,000 3.9 Public
371 Wartburg College Waverly, IA 52.5 17.8 16.4 15.6 2.6 8.11 43,000 5.8 Private
371 University of Wyoming Laramie, WY 52.5 16.3 15.8 17.3 3.2 8.65 46,000 4.3 Public
375 King's College Wilkes-Barre, PA 52.4 20.8 13.6 15.9 2.1 7.49 48,000 5.5 Private
375 Milwaukee School of Engineering Milwaukee, WI 52.4 21.7 11.9 14.7 3.9 8.28 66,000 3.2 Private
377 California State University Maritime Academy Vallejo, CA 52.3 17.9 14.9 14.0 5.5 8.25 80,000 3.8 Public
377 Campbell University Buies Creek, NC 52.3 16.7 13.8 16.9 4.9 7.25 43,000 5.8 Private
377 The Citadel, The Military College of South Carolina Charleston, SC 52.3 22.2 12.1 14.5 3.5 8.81 52,000 3.0 Public
377 Georgetown College Georgetown, KY 52.3 17.6 16.7 15.5 2.6 8.08 42,000 6.3 Private
377 San Diego State University San Diego, CA 52.3 21.5 6.5 16.3 8.0 8.59 48,000 3.5 Public
377 St Catherine University Saint Paul, MN 52.3 17.0 14.3 16.9 4.1 7.51 45,000 3.9 Private
377 West Virginia University Morgantown, WV 52.3 19.7 12.5 16.2 3.8 8.30 44,000 7.5 Public
384 School of the Art Institute of Chicago Chicago, IL 52.2 13.0 18.6 14.2 6.4 7.21 32,000 7.4 Private
385 University of Mount Union Alliance, OH 52.1 19.4 12.6 17.0 3.1 8.56 41,000 4.3 Private
385 Philadelphia University Philadelphia, PA 52.1 19.3 11.8 15.9 5.1 7.97 48,000 4.4 Private
387 Roger Williams University Bristol, RI 52.0 17.7 15.1 16.3 3.0 7.56 47,000 2.9 Private
387 Union University Jackson, TN 52.0 15.4 15.9 17.2 3.4 7.94 38,000 3.6 Private
389 Eckerd College Saint Petersburg, FL 51.9 15.9 16.3 16.1 3.5 9.07 41,000 7.1 Private
390 University of Houston Houston, TX 51.8 19.3 8.1 16.3 8.1 7.53 49,000 5.2 Public
390 The New School New York, NY 51.8 13.7 15.4 15.4 7.3 8.18 40,000 4.3 Private
390 Rockhurst University Kansas City, MO 51.8 22.9 11.4 15.5 2.1 7.95 47,000 2.7 Private
393 Dordt College Sioux Center, IA 51.7 19.3 12.0 18.2 2.1 8.21 38,000 2.0 Private
393 Illinois State University Normal, IL 51.7 20.8 10.4 16.5 3.9 7.68 45,000 2.9 Public

TOP SCHOOLS FOR RIGHT CHOICE

1. THE MASTER’S UNIVERSITY
Santa Clarita, Calif.
UNDERGRADUATE STUDENTS: 1,178
TUITION AND FEES: $30,920
ROOM AND BOARD: $10,060

3. BRIGHAM YOUNG
2. LANCASTER BIBLE COLLEGE UNIVERSITY, HAWAII
Lancaster, Pa. Laie, Hawaii
UNDERGRADUATE STUDENTS: 1,171 UNDERGRADUATE STUDENTS: 2,927
TUITION AND FEES: $19,660 TUITION AND FEES: $5,100
ROOM AND BOARD: $8,350 ROOM AND BOARD: $5,802

395 Central College Pella, IA 51.6 18.3 15.7 15.5 2.2 8.91 42,000 2.5 Private
396 Chatham University Pittsburgh, PA 51.5 11.6 19.9 15.0 4.9 8.02 34,000 2.3 Private
396 University of Dallas Irving, TX 51.5 16.4 16.3 15.2 3.6 8.72 45,000 1.6 Private
396 Wittenberg University Springfield, OH 51.5 18.4 14.4 15.9 2.8 7.99 42,000 3.9 Private
399 Hiram College Hiram, OH 51.4 14.9 16.6 15.5 4.4 7.10 38,000 8.0 Private
399 John Brown University Siloam Springs, AR 51.4 22.0 9.5 16.7 3.2 9.29 46,000 3.9 Private
401 Capital University Columbus, OH 51.3 17.4 14.2 16.6 3.1 8.01 41,000 4.7 Private
401 College of Idaho Caldwell, ID 51.3 15.8 15.1 16.0 4.5 8.33 38,000 3.8 Private
401 University of Missouri-Kansas City Kansas City, MO 51.3 13.8 16.3 14.8 6.4 7.57 43,000 7.7 Public
401 New York Institute of Technology Old Westbury, NY 51.3 14.4 14.7 13.8 8.4 6.36 50,000 6.3 Private
401 Otterbein University Westerville, OH 51.3 15.8 16.4 16.6 2.5 7.81 41,000 5.5 Private
406 University of Louisville Louisville, KY 51.2 12.2 18.8 15.2 5.1 7.87 38,000 7.3 Public
406 University of Michigan-Dearborn Dearborn, MI 51.2 17.4 11.3 15.7 6.8 8.12 46,000 4.6 Public
406 Virginia Commonwealth University Richmond, VA 51.2 15.0 13.5 15.7 6.9 7.71 42,000 3.6 Public
409 James Madison University Harrisonburg, VA 51.1 23.4 8.6 16.3 2.9 9.02 53,000 2.1 Public
409 Montclair State University Montclair, NJ 51.1 21.3 7.0 15.3 7.4 7.02 48,000 3.3 Public
409 Roanoke College Salem, VA 51.1 17.7 15.3 15.8 2.4 8.12 43,000 5.2 Private
409 The College of St Scholastica Duluth, MN 51.1 21.9 10.7 15.9 2.7 8.06 49,000 3.4 Private
413 Gordon College Wenham, MA 50.9 19.3 12.3 15.4 3.9 8.03 41,000 2.2 Private
413 Norwich University Northfield, VT 50.9 18.5 15.1 14.5 2.7 8.39 46,000 3.9 Private
413 Oklahoma State University Stillwater, OK 50.9 20.0 8.8 16.7 5.4 7.73 44,000 5.3 Public
416 St Joseph's College-New York Brooklyn, NY 50.8 19.6 11.8 15.0 4.4 7.94 52,000 3.4 Private
417 Berry College Mount Berry, GA 50.7 14.2 18.7 16.1 1.7 8.64 38,000 3.4 Private
417 Doane College-Crete Crete, NE 50.7 15.8 17.1 15.7 2.1 8.55 43,000 4.2 Private
417 Franklin College Franklin, IN 50.7 16.7 15.0 16.4 2.6 8.56 41,000 5.6 Private
417 Gannon University Erie, PA 50.7 18.2 13.1 16.0 3.5 8.13 46,000 5.7 Private
417 Lycoming College Williamsport, PA 50.7 19.1 12.8 15.6 3.2 7.98 43,000 4.2 Private
417 Marist College Poughkeepsie, NY 50.7 21.6 10.2 15.6 3.3 7.50 54,000 2.6 Private
417 St Edward's University Austin, TX 50.7 14.5 12.5 17.3 6.4 8.30 44,000 5.9 Private
424 SUNY New Paltz New Paltz, NY 50.6 18.5 10.6 15.6 5.9 8.04 45,000 3.6 Public
424 Salve Regina University Newport, RI 50.6 21.8 11.7 15.3 1.8 7.72 49,000 1.5 Private
424 Seattle Pacific University Seattle, WA 50.6 17.5 11.3 16.5 5.2 7.22 44,000 2.6 Private
424 Wagner College Staten Island, NY 50.6 19.4 13.1 14.2 3.9 7.04 54,000 2.8 Private
424 Wilkes University Wilkes-Barre, PA 50.6 18.6 12.1 15.0 4.8 7.41 50,000 4.8 Private
429 Eastern Mennonite University Harrisonburg, VA 50.5 14.8 16.9 15.7 3.1 7.90 38,000 2.9 Private
429 LIU Post Brookville, NY 50.5 16.7 11.7 15.8 6.2 7.22 45,000 5.9 Private
429 Monmouth College Monmouth, IL 50.5 15.2 16.5 14.5 4.4 7.38 40,000 8.7 Private
429 St Ambrose University Davenport, IA 50.5 15.6 14.9 17.4 2.6 8.57 45,000 4.3 Private
429 St John's University-New York Queens, NY 50.5 18.6 9.7 15.1 7.1 6.62 53,000 4.7 Private
434 Le Moyne College Syracuse, NY 50.4 20.0 12.4 15.0 3.0 7.55 49,000 4.2 Private
434 Stockton University Galloway, NJ 50.4 22.9 7.3 14.4 5.7 7.39 47,000 5.3 Public
434 Trinity Christian College Palos Heights, IL 50.4 16.7 13.4 16.0 4.3 7.97 42,000 4.0 Private
437 University of Arkansas Fayetteville, AR 50.3 20.2 9.3 16.5 4.3 8.33 44,000 6.6 Public
437 California Lutheran University Thousand Oaks, CA 50.3 19.1 9.8 15.6 5.8 8.23 52,000 2.6 Private
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R10 | Wednesday, September 27, 2017 THE WALL STREET JOURNAL.

JOURNAL REPORT | U.S. COLLEGE RANKINGS

State Schools Do Well Despite Budget Cuts

California boasts four campuses
among the top 10 public institutions
BY MELISSA KORN
DESPITE LIMITED STATE support
and more crowded classrooms,
nearly two dozen public schools
cracked the top 100 in this year’s
and fiscal 2016, according to the THE TOP
State Higher Education Executive Of- PUBLIC SCHOOLS
ficers Association. In that same pe-
The state schools that achieved
riod, enrollment rose 8.5% and net
the highest overall ranking
tuition revenue for public higher ed-
ucation jumped 35%.
Funding challenges often lead

MARK BOSTER/GETTY IMAGES

Wall Street Journal/Times Higher
Education College Rankings.
These institutions proved they
could offer a lower-cost option, of-
ten to a more diverse student body,
and provide comparable outcomes to
the private schools that dominate
the top of the charts.
The University of California, Los
Angeles was the highest-ranked state
school, coming in at No. 25. It was
followed by the University of Michi-
gan, Ann Arbor at No. 27 and Uni-
versity of North Carolina, Chapel Hill
at No. 33.
Twenty-one public universities
made it into the top 100 of the WSJ/
THE rankings, and eight reached the
top 50.
The University of California sys-
tem has four campuses among the
top 10 public schools. Besides first-
place UCLA, Berkeley comes in at
fourth, followed by Davis, sixth, and
San Diego, seventh.
Public universities get relatively
little funding from state coffers
these days.
Nationwide, state educational ap-
propriations per full-time-equivalent
student fell 15% between fiscal 2008
schools to hold larger classes. The
best student-faculty ratio for any
public university in the top 100 was
12 to 1, at the University of Michi-
gan, Purdue University (No. 43 over-
all) and William & Mary (No. 100).
That ratio is in the mid-single digits
for many elite private institutions.
At the other end of the spectrum,
21 of the more than 1,000 schools in
the WSJ/THE rankings had a stu-
dent-faculty ratio of at least 25 to 1,
and they were all public schools, in-
cluding much of the California State
University system.
With minimal state support and,
in many cases, caps on tuition in-
creases, public universities tend to
spend far less on academics than
their private, nonprofit counterparts.
UCLA spent $42,510 per student
on instruction and academic ser-
vices, adjusting for regional price
differences with data from the Bu-
reau of Economic Analysis. That is
less than half the adjusted per-stu-
dent academic spending at private
schools Stanford University, Yale
University, Washington University in
St. Louis or Vanderbilt University, all
of which landed higher in the overall
UCLA, the top-ranked public school, came in at No. 25 overall.
WSJ/THE ranking.
UCLA’s per-student academic
spending is the highest of any public
university in the top 100; the next
highest is at the University of North
Carolina, Chapel Hill, at $34,760.
High spending doesn’t necessarily
lead to a strong education. Effi-
ciency, the adoption of digital learn-
ing aids and online lectures can
lower costs without hurting out-
comes.
The University of Michigan spent
$26,840 per student on academics,
but scored far better than UCLA on
student engagement (No. 33 versus
No. 119) and had a higher ranking for
outcomes (No. 14 versus No. 22).
Several other top public universi-
ties also punch above their weight in
terms of student outcomes, passing
some exclusive private institutions.
1. University of California,
Los Angeles
2. University of Michigan,
Ann Arbor
3. University of North Carolina,
Chapel Hill
4. University of California,
The University of Florida, for in- Berkeley
stance, ranks 58th overall but
notches the No. 30 spot for out- 5. Purdue University,
comes, thanks to a six-year gradua- West Lafayette
tion rate of 87% and low student-
6. University of California, Davis
loan default rates.
The WSJ/THE ranking determines 7. University of California,
engagement by weighing the breadth San Diego
of course offerings alongside student
responses to survey questions about 8. University of Illinois,
how challenging the curriculum is Urbana-Champaign
and real-world application of aca-
demic ideas. 9. Georgia Institute of
Outcomes are calculated based on Technology
graduation rates, reputation, and
salary and debt data for recent grad- 10.University of Texas, Austin
uates. University of Virginia
Ms. Korn is a staff reporter for Source: Wall Street Journal/Times Higher
The Wall Street Journal in New Education College Rankings
York. Email her at THE WALL STREET JOURNAL.
melissa.korn@wsj.com.

OVERALL
SCORE RIGHT PRIVATE
(Out of a OUTCOME RESOURCES ENGAGEMENT ENVIRONMENT CHOICE DEFAULT OR
RANK COLLEGE CITY / STATE possible 100) (Out of 40) (Out of 30) (Out of 20) (Out of 10) (Out of 10) SALARY RATE PUBLIC
437 East Carolina University Greenville, NC 50.3 17.8 10.7 16.9 5.0 8.08 39,000 5.2 Public
437 Emerson College Boston, MA 50.3 19.6 11.6 14.2 4.9 7.87 45,000 1.9 Private
437 Lincoln Memorial University Harrogate, TN 50.3 15.5 16.5 15.0 3.3 8.26 37,000 4.0 Private
437 University of South Florida Tampa, FL 50.3 18.3 8.0 16.4 7.6 7.98 41,000 5.2 Public
443 University of Indianapolis Indianapolis, IN 50.1 14.6 14.4 16.7 4.3 7.78 42,000 6.7 Private
443 Louisiana State University Baton Rouge, LA 50.1 18.7 10.5 16.3 4.6 8.20 46,000 5.0 Public
443 Loyola University New Orleans New Orleans, LA 50.1 9.9 17.3 17.0 5.9 8.52 42,000 5.6 Private
443 University of New Hampshire Durham, NH 50.1 21.1 9.8 16.5 2.7 8.53 47,000 2.1 Public
447 Eastern Illinois University Charleston, IL 50.0 14.5 14.8 16.0 4.8 8.04 41,000 4.8 Public
447 Millikin University Decatur, IL 50.0 15.4 15.1 16.1 3.3 8.24 42,000 6.8 Private
449 Southern Nazarene University Bethany, OK 49.9 18.6 10.8 16.0 4.5 8.36 46,000 6.7 Private
449 Whitworth University Spokane, WA 49.9 16.3 14.1 16.7 2.8 8.87 41,000 1.9 Private
451 Misericordia University Dallas, PA 49.8 20.2 12.4 15.2 1.9 8.13 48,000 5.9 Private
451 Nebraska Wesleyan University Lincoln, NE 49.8 19.5 12.1 16.5 1.8 8.24 45,000 2.2 Private
453 Gwynedd Mercy University Gwynedd Valley, PA 49.7 19.1 12.2 14.3 4.1 7.82 52,000 5.3 Private
453 Martin Luther College New Ulm, MN 49.7 21.1 12.4 15.0 1.3 8.83 40,000 0.6 Private
455 University of Alabama in Huntsville Huntsville, AL 49.6 14.7 13.5 15.7 5.7 8.65 46,000 5.3 Public
455 McDaniel College Westminster, MD 49.6 17.5 14.1 14.8 3.3 8.25 46,000 2.5 Private
455 Randolph-Macon College Ashland, VA 49.6 15.7 16.4 14.9 2.6 7.22 45,000 4.4 Private
458 Hamline University Saint Paul, MN 49.5 19.1 11.3 15.3 3.8 7.24 47,000 2.8 Private
458 University of New Mexico Albuquerque, NM 49.5 14.0 12.3 15.6 7.6 7.08 35,000 12.7 Public
460 Clarke University Dubuque, IA 49.4 15.5 16.7 15.3 1.9 7.60 41,000 3.3 Private
460 Maryland Institute College of Art Baltimore, MD 49.4 13.5 15.8 14.6 5.5 7.20 32,000 3.9 Private
460 University of Massachusetts Boston Boston, MA 49.4 14.7 11.9 14.2 8.6 6.52 46,000 5.4 Public
460 University of Texas at Dallas Richardson, TX 49.4 17.2 9.9 14.9 7.4 7.23 50,000 4.7 Public
464 University of Alabama Tuscaloosa, AL 49.3 18.0 11.0 16.3 3.9 8.79 42,000 5.2 Public
464 Christian Brothers University Memphis, TN 49.3 16.9 10.3 16.3 5.7 7.72 46,000 7.2 Private
464 Hastings College Hastings, NE 49.3 16.3 14.9 16.1 1.9 7.66 41,000 4.8 Private
467 University of Nebraska-Lincoln Lincoln, NE 49.2 17.9 10.4 16.5 4.4 7.17 44,000 2.7 Public
468 Fairleigh Dickinson University Teaneck, NJ 49.1 12.3 15.3 14.3 7.2 7.32 47,000 5.0 Private
468 Maryville University Saint Louis, MO 49.1 20.1 8.4 16.8 3.8 8.15 45,000 4.4 Private
470 The University of the Arts Philadelphia, PA 49.0 11.5 17.3 15.1 5.2 7.99 30,000 8.4 Private
470 California State University, Chico Chico, CA 49.0 21.9 3.8 16.7 6.6 8.05 45,000 3.9 Public
470 Western Illinois University Macomb, IL 49.0 13.0 13.7 16.4 5.9 7.82 41,000 7.1 Public
473 California State University, Long Beach Long Beach, CA 48.9 19.2 4.1 16.8 8.8 8.01 47,000 3.5 Public
473 Eastern Nazarene College Quincy, MA 48.9 18.8 9.1 14.5 6.4 6.63 45,000 6.2 Private
473 University of Toledo Toledo, OH 48.9 14.3 12.3 16.5 5.8 7.54 40,000 9.9 Public
476 Arcadia University Glenside, PA 48.8 13.9 13.6 16.2 5.1 7.63 43,000 3.5 Private
476 Marymount University Arlington, VA 48.8 16.8 11.0 14.7 6.3 7.22 50,000 2.8 Private
476 University of Minnesota Morris Morris, MN 48.8 16.0 12.8 14.6 5.5 7.11 39,000 6.3 Public
476 Morehouse College Atlanta, GA 48.8 13.3 14.4 15.2 5.8 8.37 41,000 16.2 Private
476 Salem College Winston-Salem, NC 48.8 14.7 13.7 14.5 5.9 6.54 33,000 5.1 Private
476 Truman State University Kirksville, MO 48.8 20.8 9.6 15.6 2.8 7.92 43,000 3.1 Public
482 University of Central Florida Orlando, FL 48.7 19.7 5.6 16.6 6.8 8.22 43,000 4.8 Public
482 University of Charleston Charleston, WV 48.7 19.6 10.6 14.4 4.2 6.07 42,000 10.7 Private
484 Chestnut Hill College Philadelphia, PA 48.5 13.5 14.4 14.8 5.8 5.67 41,000 7.9 Private
484 High Point University High Point, NC 48.5 17.0 13.4 15.9 2.1 7.93 37,000 5.6 Private
484 Massachusetts College of Art and Design Boston, MA 48.5 14.4 16.4 13.9 3.8 7.80 34,000 4.5 Public
484 Oglethorpe University Atlanta, GA 48.5 16.8 10.7 14.6 6.4 7.38 44,000 8.5 Private
484 Walla Walla University College Place, WA 48.5 17.6 12.0 15.4 3.5 8.49 46,000 4.3 Private
489 Belmont University Nashville, TN 48.4 16.4 12.8 16.9 2.3 8.59 40,000 2.1 Private
489 Birmingham-Southern College Birmingham, AL 48.4 15.3 15.3 15.8 2.0 8.06 43,000 3.0 Private
489 California State Polytechnic University, Pomona Pomona, CA 48.4 20.1 4.3 15.5 8.5 7.77 51,000 2.9 Public
489 Mount St Mary's University Emmitsburg, MD 48.4 17.9 11.7 15.7 3.2 8.67 50,000 2.5 Private
489 Ohio University Athens, OH 48.4 15.8 11.1 17.3 4.1 8.13 40,000 8.8 Public
489 Shenandoah University Winchester, VA 48.4 9.9 18.4 15.6 4.5 8.15 40,000 3.4 Private
495 Ouachita Baptist University Arkadelphia, AR 48.3 15.6 14.1 16.8 1.8 8.97 37,000 7.8 Private
495 St Bonaventure University Saint Bonaventure, NY 48.3 14.9 15.7 15.0 2.6 7.76 45,000 4.5 Private
495 St Mary's University San Antonio, TX 48.3 10.8 14.7 16.1 6.7 7.93 46,000 6.0 Private
495 Texas Tech University Lubbock, TX 48.3 18.5 7.2 16.8 5.8 8.65 47,000 5.5 Public
495 Wentworth Institute of Technology Boston, MA 48.3 20.7 8.5 14.4 4.7 7.55 56,000 2.5 Private
500 University of Alaska Fairbanks Fairbanks, AK 48.2 8.5 19.2 14.1 6.4 6.52 37,000 12.1 Public
500 Alfred University Alfred, NY 48.2 13.7 15.6 15.4 3.6 7.80 42,000 6.0 Private
500 Augsburg College Minneapolis, MN 48.2 11.7 14.5 17.1 4.9 7.43 45,000 5.3 Private
500 California State University, Fresno Fresno, CA 48.2 18.8 4.9 16.0 8.5 7.74 43,000 4.9 Public
500 Huntington University Huntington, IN 48.2 14.7 15.2 16.3 2.0 8.40 35,000 1.2 Private
500 Indiana University-Purdue University Indianapolis Indianapolis, IN 48.2 12.1 13.5 16.6 6.0 7.41 40,000 5.5 Public
500 Meredith College Raleigh, NC 48.2 15.5 12.5 16.6 3.6 8.06 38,000 4.8 Private
500 SUNY Cortland Cortland, NY 48.2 19.2 9.7 16.3 3.0 8.36 45,000 2.6 Public
500 Saint Xavier University Chicago, IL 48.2 14.8 11.0 15.9 6.4 7.44 44,000 4.3 Private
Note: The sum of individual scores for outcomes, resources, engagement and environment for a school may not equal the school’s total score.