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Time to Improve
College Savings Plans

L. Gordon Crovitz
Peter Thiel’s
Legal Smackdown

JOURNAL REPORT | R1

OPINION | A15

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At the Boyhood Home of Muhammad Ali, Fans Pay Tribute

What’s
News
Business & Finance

U

.S. officials appear
poised to make history by
approving the first private
space mission to go beyond
Earth’s orbit, a move that may
set important precedents. A1

Republican victory in
November elections would
herald a scaling back of financial regulations, according to a policy blueprint. C1

DAVID GOLDMAN/ASSOCIATED PRESS

Investors are buying
municipal debt at a record
clip, enduring low returns
in exchange for stability. C1

IN MEMORY: Aprilla Howard was among those Sunday who visited the former boxer’s childhood home in Louisville, Ky. Thousands of
fans left flowers, notes and gifts at a local museum dedicated to Ali’s life. A funeral and city procession is planned for Friday. A3, B7

The Pentagon has decided
to rely on an Abu Dhabiowned company to supply
the most advanced microchips used in the military. B3

Saboteurs Hit Nigerian Oil

Low interest rates are
hurting investment by encouraging stock buybacks
and dividends instead, a Carlyle Group economist says. C1

Attacks by the Niger
Delta Avengers have
cut output, helping to
push up crude prices

“Teenage Mutant Ninja
Turtles: Out of the Shadows”
was the latest sequel to underperform its predecessor. B5

World-Wide
A split is emerging inside
Sanders’s campaign over
whether he should stand down
after Tuesday’s primaries and
unite behind Clinton. A1
Damage caused by a
band of saboteurs in Nigeria has reduced oil output
and helped tip the country
toward recession. A1
Some large public U.S.
universities recorded
higher rates of cheating
among international students
than domestic students. A1
China pushed back
strongly against U.S. criticism

of its stance on maritime disputes as the two sides began high-level talks. A10
Trump is giving a national platform to parents of
victims of crimes by illegal
immigrants to boost support
for hard-line policies. A4
India’s Modi will seek to
cement progress made with
the U.S. on economic and
security issues on a visit
to the nation this week. A10
A Buddhist temple in
Thailand is at the center of
a wildlife-trafficking probe
after scores of dead tiger
cubs were found. A10
Kansas, Illinois and other
Midwestern states are scrambling to firm up financial
packages to ensure classes
open again in the fall. A7
Novak Djokovic won his
first French Open title,
beating Andy Murray. B7
CONTENTS
Business News... B2-6
Crossword................. B6
Europe File............ A12
Election 2016...... A4-6
Heard on Street......C6
Journal Report R1-10

Markets Digest..... C4
Opinion.............. A15-17
Outlook....................... A2
Sports.......................... B7
U.S. News......... A2-3,7
Weather..................... B6
World News... A10-13

>

s Copyright 2016 Dow Jones &
Company. All Rights Reserved

YEN 106.53

Sanders
CampIs
SplitOver
NextStep

A band of saboteurs that calls
itself the Niger Delta Avengers
has been prowling the swamps
of Nigeria’s petroleum-rich
south for four months, bombing
pipelines and diving underwater
to destroy equipment.
The damage has helped tip

By Drew Hinshaw

in Abuja, Nigeria, and
Sarah Kent in London
Africa’s biggest economy toward
recession, and has cost Nigeria
its position as the continent’s
top oil producer—a distinction
inherited by Angola.
The Avengers struck again
before dawn on Friday. A group
of militants sneaked through
marshland to bomb two pipelines, one owned by Royal Dutch

Shell PLC and the other owned
by Italy’s Eni SpA, according to
Nigeria’s navy. Shell confirmed
signs of a spill from one of its
pipelines and said it is still evaluating potential damage. Eni
confirmed the attack but said it
didn’t contribute to any new
supply disruption.
On the group’s purported
Twitter account, it called the Eni
attack part of its promise “that
Nigeria Oil production will be
Zero.”
The brazen strikes were the

FOREIGN STUDENTS
MORE LIKELY TO CHEAT

latest demonstration of destructive proficiency by the Avengers,
which has considerably cut the
amount of oil in global markets.
The strikes have led Nigeria to
shift some of the forces who
have been fighting an Islamist
insurgency.
On and off for years, criminal
groups in the Niger Delta have
extorted and bombed oil compaPlease see OIL page A13
Saudis cut prices of oil
exports to Europe................... C3

A split is emerging inside
the Bernie Sanders campaign
over whether the senator
should stand down after Tuesday’s election contests and unite behind Democratic front-runner Hillary
Clinton, or take the fight all
the way to the July party
convention and try to pry the
nomination from her.
One camp might be dubbed
the Sandersistas, the loyalists
who helped guide Mr. Sanders’s political ascent in Vermont and the U.S. Congress
and are loath to give up a
fight that has far surpassed
expectations. Another has
ties not only to Mr. Sanders
but to the broader interests
of a Democratic Party pining

to beat back the challenge
from Republican Donald
Trump and make gains in
congressional elections.
Mr. Sanders in recent
weeks has made clear he
aims to take his candidacy
past the elections on Tuesday, when California, New
Jersey and four other states
vote. But the debate within
the campaign indicates that
Mr. Sanders’s next move isn’t
Please see RACE page A6

Trump brings new voices
to bitter crime debate.... A4
Republican elders criticize
attacks on judge................ A4

Washington, Beijing Open Talks

U.S. schools show higher rates of academic fraud among overseas enrollees
BY MIRIAM JORDAN
AND DOUGLAS BELKIN

found that in the 2014-15
school year, the schools recorded 5.1 reports of alleged
Number of international
At Ohio State University, a
undergraduate students in the U.S. cheating for every 100 international students. They recorded

Chinese student took tests for
Chinese Others
one such report per 100 doChinese classmates for cash
600 thousand
mestic students.
last year, guaranteeing an A.
Students from China were
At the University of Calisingled out by many faculty
fornia, Irvine, some internamembers interviewed. “Cheattional students used a lost-ID400
ing among Chinese students,
card ruse to let impersonators
especially those with poor lantake exams in place of others.
guage skills, is a huge probAt the University of Ari200
lem,” said Beth Mitchneck, a
zona, a professor told of ChiUniversity of Arizona profesnese students handing in mulsor of geography and developtiple copies of the same
ment.
incorrect test answers.
0
In the academic year just
A flood of foreign under2012 ’13
’14
’15
’16
ending, 586,208 international
graduates on America’s camNote: Figures are for school years ending
undergraduate students atpuses is improving the finanin the year shown
tended U.S. colleges and unicial health of universities. It
Source: Student and Exchange Visitor
Program, Department of Homeland Security
versities, according to the Dealso sometimes clashes with a

partment of Homeland
fundamental value of U.S.
Security. More than 165,000 were from China.
scholarship: academic integrity.
South Korea and Saudi Arabia were the source
A Wall Street Journal analysis of data from
Please see CHEAT page A14
more than a dozen large U.S. public universities

Changing Campus

Diving NBA Players Create ‘First-Row Problems’
i

i

Should fans in pricey seats lend a hand, or duck and cover?
BY BEN COHEN
OAKLAND, Calif.—A ticket
for a floor seat to an NBA Finals game between the starstudded Cleveland Cavaliers
and Golden State Warriors is a
rare and increasingly expensive commodity. But that privilege also presents the lucky
fans in these courtside seats
with a peculiar dilemma.
It isn’t the possibility of
spilling beer on the court or
being caught on television staring into your phone. It’s what
you choose to do when a hu-

mongous, sweaty

NBA player in
sneakers comes
barreling in your
direction while
chasing a loose
ball—and then
dives on top of
you.
Cleveland center
Timofey
LeBron
Mozgov,
who
stands 7-foot-1 and weighs 275
pounds, already knows what he
would do if he were in the
bleachers and someone of his
size came flying at him at full

speed. “I would
get away,” Mr.
Mozgov said.
If only it were
that simple. There
is no statistician
who tracks player
leaps per game,
but it is likely to
happen a lot more
in the playoffs,

James
when possessions
come at a premium. In this
year’s NBA Finals, though, the
fuss isn’t over how many players have flung themselves into
Please see DIVE page A14

SAUL LOEB/PRESS POOL

The spread of combination
cancer treatments threatens
to heighten tensions over
soaring drug prices. B1

EURO $1.1364

BY PETER NICHOLAS

The Fed’s plans for
raising rates went on hold
after a dismal jobs report,
with officials wanting to
wait and see whether the
economy stays on track. A3
GM plans to convert
some Cadillac stores into
virtual dealerships that
will have low overhead but
sophisticated technology. B1

HHHH $3.00

SHARP SHOOTER: Secretary of State John Kerry taking part in a
ceremony in Mongolia on Sunday. Mr. Kerry is part of the U.S.
delegation meeting in Beijing this week for economic and security
talks with Chinese officials. A10

U.S. Poised to Clear
Private Moon Mission
BY ANDY PASZTOR

U.S. officials appear poised
to make history by approving
the first private space mission
to go beyond Earth’s orbit, according to people familiar
with the details.
The government’s endorsement would eliminate the largest regulatory hurdle to plans
by Moon Express, a relatively
obscure space startup, to land
a roughly 20-pound package of
scientific hardware on the
Moon sometime next year.
It also would provide the
biggest federal boost yet for
unmanned commercial space
exploration and, potentially,
the first in an array of forprofit ventures throughout the
solar system.
The expected decision, said
the people familiar with the

details, is expected to set important legal and diplomatic
precedents for how Washington will ensure such nongov-

ernmental projects comply
with longstanding international space treaties. The principles are likely to apply to future
spacecraft
whose
potential purposes range from
mining asteroids to tracking
space debris.
Approval of a formal launch
license for the second half of
2017 is still months away, and
the proposed mission poses
huge technical obstacles for
Moon Express, including the
fact that the rocket it wants to
use hasn’t yet flown.
But the project’s proponents have considered federal
clearance of the suitcase-size
MX-1 lander and its payload as
well as approval of a planned
two-week operation on the
Moon itself to pose the most
significant legal challenges to
the mission.
After months of lobbying by
Moon Express officials and
high-level deliberations among
Please see SPACE page A7

A2 | Monday, June 6, 2016

THE WALL STREET JOURNAL.

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College Loan Glut Turns Sour
T

he U.S. government
over the last 15 years
made a trillion-dollar
investment to improve the
nation’s workforce, productivity and economy. A big
portion of that investment

has now turned toxic, with
echoes of the housing crisis.
The investment was in
“human capital,” or, more
specifically,
higher educaTHE
tion. The govOUTLOOK
ernment
JOSH
helped finance
MITCHELL
tens of millions of tuitions as enrollment in U.S.
colleges and graduate
schools soared 24% from
2002 to 2012, rivaling the
higher-education boom of
the 1970s. Millions of others
attended trade schools that
award career certificates.
The government financed a large share of these
educations through grants,
low-interest loans and loan
guarantees. Total outstanding student debt—almost all
guaranteed or made directly
by the federal government—
has quadrupled since 2000
to $1.2 trillion today. The
government also spent tens
of billions of dollars in
grants and tax credits for

students.

N

ew research shows a
significant chunk of
that investment backfired, with millions of students worse off for having
gone to school. Many never
learned new skills because
they dropped out—and
now carry debt they are unwilling or unable to repay. Policy makers worry that without
a bigger intervention, those
borrowers will become
trapped for years and will ultimately hurt, rather than
help, the nation’s economy.

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Debt, but No Degree
Student debt defaults have soared in recent years, particularly among students who borrowed but then
dropped out. Dropouts earn only marginally more than high-school graduates, and far less than college grads.
Share of loans, by type, that are delinquent 90 days or more

Median weekly earnings

15%

$1,500

12

1,200

Bachelor’s
degree or
higher

Student
loan
9
900

Auto loan
3

0

Some
college/
associate
degree

Credit
card

6

quarterly data

Home
equity line
of credit
Mortgage

2003 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16

600

Treasury Deputy Secretary Sarah Bloom Raskin
compares the seven million
student-loan borrowers in
default—and millions of others who appear on the same
path—to homeowners who
found themselves underwater and headed toward foreclosure after the housing

crash.
“We needed individual
households to stabilize property values and help revive
communities,” she said. “We
want to stabilize this generation of student borrowers
and revive their prospects for
the future. I think students
are essential to our future
economic growth and contributions to productivity.”
In a working paper released last week, economists
at George Washington University and the Treasury Department tracked the earnings of some 1.4 million
students who left a for-profit
college in the two years
through September 2008.
Seventy percent of them
dropped out. Those who enrolled in associate’s and
bachelor’s programs earned
an average of $600 to $700 a
year less in the six years after leaving school compared
with the six years before

CORRECTIONS
The Centers for Disease
Control and Prevention shared
the results of an assessment of
counties vulnerable to HIV and
hepatitis C outbreaks with the
26 affected states in which
those counties are located. A
U.S. News article Friday about

the agency’s mapping of outbreak risks incorrectly gave

they entered. Almost all of
them left with student
debt—an average $8,000 for
associate’s candidates and
$13,000 for bachelor’s candidates.
Those in for-profit certificate programs earned an average $920 less. The National Bureau of Economic
Research working paper
used federal tax records and
Education Department data.

Student debt
threatens to widen
the gap between the
haves and have-nots.
There are similar problems in nonprofit colleges,
which enroll about 2.7 million students a year. A report released in May by
Third Way, a nonpartisan
think tank, showed that
among students who enrolled in 2005, on average
only half graduated from
such institutions within six
years. On average, nearly
four in 10 undergraduates
at those schools who took
on student debt earned no
more than $25,000 in 2011,
the same as the typical

AMPLIFICATIONS
the number of affected states
as 25.
The Nasdaq KBW Bank Index includes 24 large commercial lenders. In some editions
Saturday, a Business & Finance
article about bank stocks incorrectly said the index has 25
constituents.

Readers can alert The Wall Street Journal to any errors in news articles by
emailing or by calling 888-410-2667.

High
school
Less
than high
school

300

2000

’10 ’14
THE WALL STREET JOURNAL.

Source: Federal Reserve Bank of New York (delinquencies); Labor Dept. (earnings)

Following in Dad’s footsteps requires a great pair of shoes.

brooksbrothers.com

Education
attainment

high-school graduate. Other
research shows similar
dropout rates at public colleges and universities.

A

long with weak job
prospects, most of
these students are
now severely behind on payments, damaging their credit
and limiting their ability to
borrow for homes and cars.
More than a fifth of all student debt is at least 90 days
delinquent, according to the
New York Federal Reserve,
and federal data show dropouts are three times more
likely to default than degree
earners.
No group saw its net
worth decline more between 2010 and 2013 than
college dropouts. The median value of their assets
minus debts fell 14% over
that period, according to
the Federal Reserve’s Survey of Consumer Finances.
By comparison, the typical
college graduate saw her
wealth increase 5%.

In that sense, student debt
threatens to widen the gap
between society’s haves and
have-nots. A disproportionate
share of for-profit college
students is poor, black and
Hispanic. The NBER study
showed that half of the 1.4
million for-profit school borrowers were parents.
Ms. Raskin worries these
borrowers are at risk of having their financial positions
spiral downward due to debt.
During the housing crisis,
plummeting home values left
millions of Americans underwater on their mortgages,
preventing them from selling
their homes and moving to
better jobs. The lack of mobility in turn hurts productivity, since it limits the pool
of workers that employers
can choose from.


THE WALL STREET JOURNAL.

Monday, June 6, 2016 | A3

* * * *

©T&CO. 2016

U.S. NEWS

Fed Back in Wait-See Mode
MANUEL BALCE CENETA/ASSOCIATED PRESS

Bank officials want
economy to stay on
track before raising
interest rates again
BY JON HILSENRATH
AND KATE DAVIDSON

The Federal Reserve’s plans
for boosting short-term interest rates went on hold after
Friday’s dismal jobs report,
with central bank officials now
wanting to see whether the
economy remains on track before they make a move.
A rate increase at the Fed’s
June 14-15 meeting is almost
surely off the table. A move at
their July meeting six weeks
later is still possible though
less likely, because officials
won’t have that much more
economic data to reassure
themselves about the course of
the economy’s expansion, according to their remarks.
Some officials could prefer
to wait until their September

meeting to consider lifting
rates, provided the economy
picks up during the summer.
The Fed’s next signal could
come Monday from Chairwoman Janet Yellen, who is
scheduled to speak in Philadelphia on the economic outlook
and monetary policy.
“We cannot take the resil-

Fed Chairwoman Janet Yellen
ience of our recovery for
granted,” Fed governor Lael
Brainard said in a speech Friday after the employment report, possibly foreshadowing
Ms. Yellen’s approach. Though
the two women don’t always
see eye-to-eye, they are both
cautious about raising interest
rates.
“In this environment, prudent risk management implies
there is a benefit to waiting
for additional data to provide
confidence that domestic activity has rebounded strongly
and reassurance that nearterm international events will
not derail progress toward our
goals,” Ms. Brainard said at
the Council on Foreign Relations.

Before Friday, when the Labor Department reported that
hiring slowed sharply in May,
Fed officials were considering

lifting rates this month or
next.
“Today’s labor market report is sobering, and suggests
that the labor market has
slowed,”
Ms.
Brainard
said Friday.
Cleveland Fed President Loretta Mester, speaking Saturday in Stockholm, said the jobs
gain reported Friday was a
“disappointing number,” adding it “has not changed fundamentally my economic outlook,
but we will be assessing the
data as it comes in.”
Employers added just
38,000 jobs to their payrolls in
May, and the pace of hiring
slowed to an average 116,000 a
month over the past three
months, the Labor Department
said.
Ahead of the report, many
Fed officials believed economic
growth was accelerating modestly after a first-quarter slowdown. Consumer spending
picked up in the spring after
softening in the first quarter.
Exports were firming, and financial markets stabilized after turbulence early in the
year.
With hiring steady and inflation showing signs of rising,
they thought before Friday

that it was about time to raise
short-term rates by another
quarter percentage point. The
main question was whether to
move this month or wait until
their July meeting, after the
June 23 U.K. vote on whether
to stay in the European Union.
“The economy is continuing
to improve,” Ms. Yellen said in
late May. “We saw weak
growth in the first quarter of
the year and relatively weak
growth at the end of last year.
Growth looks to be picking up
from the various data that we
monitor.” A rate increase, she
said, was probable “in the
coming months.”
Now officials need to piece
together whether the hiring
slowdown was temporary or
more lasting. If the slump was
temporary, they can proceed
toward rate increases once they
get the data to prove it. On six
occasions since 2010, monthly
hiring gains have dipped below
100,000 and bounced back.
One important factor is

business investment, which
softened in the first quarter. A
gauge of such investment rose
in April, but government measures can be volatile.
Fed officials won’t get a
reading on second-quarter
gross domestic product, a
broad measure of economic
output, until after their July
meeting.

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Global Tributes Follow Ali’s Death
BY JON KAMP

LONGINES

DAVID GOLDMAN/ASSOCIATED PRESS

Rahaman Ali, right, the boxer’s brother, cried at a service in a Louisville church his family attended.
again, she said, when she
failed attemping to row a
hand-built boat across the Atlantic Ocean in 1996. She completed the quest three years
later.
Other Ali fans also revered

him for his words and actions
outside the ring. Mr. Dixon,
the local boxing coach, said he
was impressed with Ali’s willingness to take a stand against
the Vietnam War in the late
1960s, even though it cost him
more than three years of suspension during his athletic
prime.
“He stood up to adversity
and discrimination and racism
like no other athlete,” Mr.
Dixon said.
But Ali’s exploits in the ring
also helped seal his iconic,
global status. Donald Lassere,
the Muhammad Ali Center’s

chief executive, said he has
spoken with media from at
least seven foreign countries
since the boxing great died.
He was remembered in Manila, the Philippine capital
where he beat Joe Frazier in
1975, by local boxing legend
Manny Pacquiao.
Later in life, Ali was renowned for his three-decade-

long battle with Parkinson’s
disease, a degenerative neurological disease. The Muhammad Ali Parkinson Center in
Phoenix posted a video online

with patients paying tribute to
the fighter known as The
Greatest.
Jason Gay: Another Muhammad
Ali? Probably never........................ B7

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James Dixon, a boxing
coach in Louisville, Ky.,
planned to head over to the
Muhammad Ali Center on Sunday to leave a T-shirt from his
gym with some handwritten
words: “Rest in peace champ.”
Flowers, notes and boxing
paraphernalia from scores of
well-wishers piled up on the
plaza outside the museum and
cultural institution dedicated
to Ali’s life, as his hometown
prepared to say goodbye to
him with a procession and funeral Friday, a week after his
death at age 74. A makeshift
memorial also took shape outside his boyhood home.

“We lost our son,” said Mr.
Dixon, a 42-year-old who
founded the Louisville TKO gym.
The funeral will take place
Friday afternoon at Louisville’s
KFC YUM! Center arena, the
city said, after a morning procession winds slowly through
the city, down a boulevard
named after the boxing legend.
Confirmed speakers at the
funeral include former President Bill Clinton, comedian
Billy Crystal and sportscaster
Bryant Gumbel.
“I was honored to award
him the Presidential Citizens
Medal at the White House, to
watch him light the Olympic
flame, and to forge a friendship with a man who, through
triumph and trials, became
even greater than his legend,”
Mr. Clinton said in a statement.
At Louisville’s Spalding University, where the athletic center includes the gym where Ali
first trained when he was
known as Cassius Clay, university President Tori Murden
McClure spoke about her
friend during Saturday’s commencement ceremony. He personally encouraged her to try

Soldiers Killed in Texas
Flooding Identified
BY JON KAMP

U.S. Army officials released
the names over the weekend of
the nine soldiers from Fort
Hood in Texas killed last week
when a flash flood swept away
their truck during a training
exercise.
Eight of the deceased soldiers were members of the 1st
Cavalry Division, and one was
a cadet from West Point. They
ranged in age from 19 to 38,
according to Fort Hood. They
came from around the U.S., including two soldiers from both
California and Florida.
A team from the Army Combat Readiness Center at Fort
Rucker, Ala., will investigate
the training accident, according to Fort Hood. The team
was dispatched to Fort Hood
on Friday, a day after the accident, the Associated Press reported.
Fort Hood is planning a memorial service for Cadet

Mitchell Alexander Winey, a
21-year-old from Valparaiso,
Ind., on Thursday, said Maj.
John Miller, a spokesman for
the 1st Cavalry Division. A memorial service for the eight
other soldiers is tentatively
planned for June 16, he said.
The memorials would allow
soldiers at Fort Hood who

can’t attend private family funerals off base a chance to
grieve, he said.
“As the extended Cav Family grieves together, we wrap
our arms around the loved
ones and teammates impacted
by this tragedy,” Maj. Gen. J.T.
Thomson said on the 1st Cavalry Division’s Facebook page.
Three other soldiers from
the accident were rescued and
released from the hospital,
Fort Hood officials said. The
accident occurred in a central
Texas area hit hard by floods
that started after heavy rain
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A4 | Monday, June 6, 2016

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THE WALL STREET JOURNAL.

Trump Brings New Voices to Bitter Debate
The Republican cites
support from families
of victims of crime by
illegal immigrants
Republican
presumptive
presidential nominee Donald
Trump is giving a national platform to parents of victims of

crimes by illegal immigrants,
inviting them to rallies and telling their tragic stories to boost
support for hard-line immigration policies.
Mr. Trump is drawing intense media attention to what
he says is a public-safety issue
caused by illegal immigration.
But the families also help put a
sympathetic face on Mr.
Trump’s attacks on some Mexican immigrants as criminals
and his plans to build a wall
along the southern border and
deport millions of people who
are in the U.S. illegally.
Two weeks ago, Sabine Durden told thousands of people at
a Trump rally in Anaheim, Calif., about her 30-year-old son,
Dominic, a sheriff’s dispatcher
who was killed in a 2012 motorcycle accident by an illegal immigrant truck driver convicted
twice of driving under the influence.
Choking back tears, she recalled: “I heard Donald Trump
on the television as I walked by
talking about illegal immigration and about the cost of
American lives and I screamed.
Donald Trump became my life
savior that day, my hero.”
In an interview, Mr. Trump
said meeting the parents of
children killed by illegal immigrants “reinforced even more”
his support for stringent immigration laws.
“Even I didn’t realize how
bad it was,” he said. “The only

way people can understand how

JONATHAN ERNST/REUTERS

BY BETH REINHARD

Women representing families of people killed in incidents linked to undocumented immigrants at a May Trump rally in Anaheim, Calif.
severe this crisis is is to see the
families, and then they see the
horror of it.”
Mr. Trump’s kinship with
these grieving parents parallels
Hillary Clinton’s ties to several
mothers of African-Americans
killed in gun violence or in confrontations with police, including Trayvon Martin, Eric Garner
and Michael Brown. The “mothers of the movement” have
campaigned with Mrs. Clinton
to push tougher gun-control
laws and raise awareness about
racial profiling.
Two weeks after he flagged
crime by illegal immigrants in
his June 16, 2015, campaign announcement, 32-year-old Kathryn Steinle was slain in San
Francisco, allegedly by a felon
who had been deported five

times. Mr. Trump seized on the
murder as proof his focus on
border security was on track.
Ms. Steinle’s brother, Brad,

told CNN in July that Mr.
Trump was “sensationalizing”
her death. The Steinle family
last week declined a request for
comment on Mr. Trump
through an attorney.
Mr. Trump did find an ally in
Jamiel Shaw, whose 17-year-old
son was gunned down in 2008
by a gang member living illegally in the U.S. “Donald Trump
was right on,” Mr. Shaw told
Fox News last July. “Donald
Trump is like speaking for us,
speaking for our dead.”
Mr. Trump saw the Fox interview and called him. Days
later, he met Mr. Shaw and
other parents of children killed

by illegal immigrants at a Beverly Hills, Calif., hotel.
“He told me my son’s death
would not be in vain,” said Mr.
Shaw, a Democrat-turned-independent voter who owns a gymequipment repair firm.
Among the parents Mr.
Trump is giving voice to are
blacks and Hispanics, who bring
a diverse face to a candidate
facing allegations of racial and
ethnic prejudice, most recently
for accusing a Mexican-American judge of being biased
against him. Mr. Shaw is African-American.

Last year’s Beverly Hills
gathering was organized by Maria Espinoza, founder of the Remembrance Project, which advocates on behalf of such
families. The Anti-Defamation

League, which opposes discrimination, said in a 2014 report
that the Remembrance Project
“demonizes immigrants.” Ms.
Espinoza didn’t respond to interview requests.
Another parent who met Mr.
Trump in Beverly Hills was Don
Rosenberg, whose 25-year-old
son was riding his motorcycle
in San Francisco when he was
struck and killed by an illegal
immigrant driver in 2010.
Mr. Rosenberg is grateful Mr.
Trump is drawing attention to
illegal immigration but said his
inflammatory references to
Mexicans as “rapists” muddles
his message. The self-described
liberal Democrat has pressed
campaign advisers to offer
more detailed policy plans.
“Every speech can’t be,

‘We’re going to build a wall and
Mexico will pay for it. And
Kate,’” said Mr. Rosenberg, referring to Ms. Steinle in San
Francisco.

In the Journal interview, Mr.
Trump attributed a “staggering” amount of crime to illegal
immigration. But data is scarce.
The federal government reports
the ethnicity and race of offenders but not their legal status or
country of origin.
“On the question of whether
illegal immigrants commit
crimes out of proportion to
their share of the population,
it’s very hard to say,” said Steven Camarota, director of research at the Center for Immigration Studies, which favors
curbs on legal immigration and
stricter border enforcement.
Mr. Camarota and other proponents of reduced immigration
often point to a Government
Accountability Office report in
2011 that found an estimated
296,000 immigrants here illegally or with unknown legal status in state and local jails. That
count, which includes multiple
incarcerations of the same person in different jurisdictions,
covers violent and nonviolent
offenses. There are estimated to
be 11 million illegal immigrants
in the U.S.
Deportations remain at record-setting numbers under
President Barack Obama, and
more Mexicans are leaving the
U.S. than entering it, according
to the Pew Research Center. Mr.
Trump’s critics say his emphasis on crime tied to immigration is misguided.

“Trump’s attacks on immigrants and immigration are divisive, racist, and quite frankly,
hearken back to some of the
darkest periods in our nation’s
history,” said Ali Noorani, executive director of the National
Immigration Forum Action
Fund, which backs citizenship
for illegal immigrants.

BY THOMAS M. BURTON

ethnicity, Mr. Trump answered, “I don’t think so at all.
He’s proud of his heritage….
He’s a Mexican. We’re building
a wall between here and Mexico.”
Judge Curiel is presiding
over a pair of cases in which
the plaintiffs allege Trump
University duped them into
paying tens of thousands of
dollars on the belief they
would be trained to learn Mr.
Trump’s real estate strategies.
Mr. Trump denies the allegations, saying the students got
their money’s worth, with
many offering positive evaluations of the program.
Appearing on NBC, Mr.
McConnell said that “all of us
came here from somewhere
else.”
Almost all Americans, the

Kentucky Republican added,

U.S. Judge Gonzalo Curiel
are either recent immigrants
or have ancestors who “were
risk takers and who got up
from wherever they were and
came here.”
The denunciations come as

the Republican Party establishment has been fitfully coming
around to support Mr. Trump.
Mr. Gingrich, appearing on
Fox News, called on Mr. Trump
to “move to a new level.”
“This is no longer the primaries,” the former House
speaker said. “He’s no longer
an interesting contender. He is
now the potential leader of the
U.S. and he’s got to move his
game up to the level of being a
potential leader.”
Republican Sen. Rob Portman of Ohio, who is facing a
difficult re-election race in a
battleground state, told the
Washington Post in an interview printed Sunday, “The fact
that the judge has a MexicanAmerican heritage has nothing
to do with how you should describe his judicial ability.”
And last week, House

Speaker Paul Ryan (R., Wis)
told a local radio station, “The
comment about the judge the
other day just was out of left
field. It’s reasoning I don’t relate to. I completely disagree
with the thinking behind that.”
Also on Sunday, Democratic
front-runner Hillary Clinton
said Mr. Trump’s remarks
about Judge Curiel were “vicious” and “typical” of Mr.
Trump’s “ethnic slurs and
rants against everyone.”
The former secretary of
state, appearing on ABC, said
her opponent is “trying to divert attention from the very
serious fraud charges” against
the for-profit school.
Mr. Trump, she said, “does
have that thin skin and, you
know, Judge Curiel is as American as I am and certainly as
American as Donald Trump.”

Location: 2017 Preston St. (Formerly Cheek-Neal Coffee Building)

Two Republican Party elders on Sunday denounced
Donald Trump’s attacks on a
Hispanic federal judge, adding
to a wave of criticism from
party figures of their presumptive presidential nominee.
Over the past week, Mr.

Trump has repeatedly said
that U.S. District Judge Gonzalo Curiel, the Indiana-born
jurist presiding over civil fraud
litigation in California involving Trump University, is unfit
to hear the case because he is
of Mexican ancestry and Mr.
Trump has vowed to build a
wall along the U.S.-Mexico
border.
“I couldn’t disagree more
with what he had to say,” Senate Majority Leader Mitch
McConnell said in an interview

broadcast Sunday.
Former House Speaker
Newt Gingrich, an outspoken
Trump supporter who has suggested he would serve as Mr.
Trump’s running mate, called
the presumptive nominee’s remarks “one of the worst mistakes Trump has made,” and
said, “I think it’s inexcusable.”
In an interview broadcast
Sunday on CNN, Mr. Trump
complained that Judge Curiel
had issued “horrible rulings”
against him in the Trump University litigation and had
treated him “very unfairly.” He
cited the judge’s “Mexican heritage” and noted “I’m building
a wall” between the U.S. and
Mexico. Judge Curiel, he said,
“should recuse himself.”

Asked whether it was racist
to say the judge can’t do his
job effectively because of his

INDIANA UNIVERSITY

Republican Elders Knock Attacks on Hispanic Judge

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#HoustonIsInspired


THE WALL STREET JOURNAL.

Monday, June 6, 2016 | A5


A6 | Monday, June 6, 2016

* ****

Continued from Page One
settled.
For now, Democratic officials, fund-raisers and operatives are getting impatient,
calling on Mr. Sanders to quit
the race and begin the work of
unifying the party for the
showdown with the Republican presumptive nominee.

Orin Kramer, a New York
hedge-fund manager who has
raised campaign funds for
both President Barack Obama
and Mrs. Clinton, said with respect to Mr. Sanders’s future
plans: “I would hope people
would understand what a
Trump presidency would mean
and act accordingly—and ‘accordingly’ means quickly.”
A strong showing in New
Jersey on Tuesday, before California results even come in,
could help Mrs. Clinton reach
the 2,383 delegates needed to
clinch the nomination. Her total includes hundreds of superdelegates—party leaders
and elected officials who can
back either candidate. Mr.
Sanders is hoping that defeating Mrs. Clinton in the most
populous state later Tuesday
might give superdelegates reason to drop her and get behind his candidacy. Those superdelegates have given no
indication they will shift allegiances.
Even so, Mr. Sanders isn’t
backing off. In an interview
that aired Sunday on CNN, he
stepped up an attack on Mrs.
Clinton involving the Clinton
Foundation. Echoing a critique
made by Republicans, Mr.
Sanders said he has “a problem” with the foundation accepting money from foreign
sources during her service as
secretary of state.

In a news conference Saturday in California, Mr. Sanders
indicated he would battle for
superdelegates all the way to
the convention.
“The Democratic National
Convention will be a contested
convention,” he said.
Mrs. Clinton, who won
Puerto Rico’s Democratic primary on Sunday, seems to be
running out of patience with
Mr. Sanders. Having shifted

MARIEL CALLOWAY/ZUMA PRESS

RACE

Sen. Bernie Sanders shook hands while campaigning in Los Angeles on Saturday.

POLITICS COUNTS

Tuesday’s Terrain

The six states holding Democratic contests Tuesday offer different
challenges for Hillary Clinton and Sen. Bernie Sanders. Mr. Sanders
has won no state that is more racially diverse than the U.S. on
average, so rural Montana and South Dakota, which are largely nonHispanic white, are likely a good fit for him. Diverse and densely
populated New Jersey will probably favor Mrs. Clinton.
People per square mile
U.S.

Percent white, non-Hispanic

90
251

California
17

Montana

7

475

39
1,208

New Jersey
New Mexico

Pledged delegates at stake

63

34

40
87

South Dakota 11

84

North Dakota 11

88

Source: U.S. Census Bureau (demographics); Democratic National Committee (delegates)

her focus to Mr. Trump, she
told CNN that after Tuesday,
“I’m going to do everything I
can to reach out to try to
unify the Democratic Party,
and I expect Sen. Sanders to
do the same.”
When she ran against Mr.
Obama in 2008, Mrs. Clinton
stayed in the race until the
end. As late as the final week
of voting, she was talking
hopefully of wooing super-delegates and capturing the nomination. But on June 7 of that

126

58

year—four days after the primary season ended—she gave
a speech bowing out and immediately threw her support
to Mr. Obama.

Tad Devine, a senior Sanders strategist who advised
Democratic nominees Al Gore
in 2000 and John Kerry in
2004, among others, suggested the “path forward” is
uncertain, hinging on the outcome in California and other
states. He voiced a conciliatory note, describing how the

21
20
18
THE WALL STREET JOURNAL.

two campaigns might set aside
differences that have grown
more pronounced in the heat
of the year-long campaign.
“What will happen hopefully when the voting is done,
our two campaigns will begin
to talk once more to one another and figure out where the
common ground is,” he said.
Campaign manager Jeff
Weaver, who has worked in
Mr. Sanders’s congressional
offices and Vermont-based
campaigns dating to the

THE WALL STREET JOURNAL.

mid-1980s, takes a more aggressive approach.
A victory in California and

elsewhere on Tuesday would
“strengthen” the argument for
the nomination, Mr. Weaver
said, but it isn’t necessary to
keep the candidacy alive
through the convention.
“The plan is as the senator
has described it: to go forward
after Tuesday and keep the
campaign going to the convention and make the case to superdelegates that Sen. Sanders
is the best chance that Democrats have to beat Trump,” Mr.
Weaver said.
That is what worries Democratic leaders. Pointing to
polls indicating a tightening
race in November, they say
Mr. Sanders, if he is sincere
about beating back Mr. Trump,
must quickly join forces with
the party front-runner.
“Democrats will need as
much unity as early as we can
get it as possible,” said Tom
Daschle, a former Senate Democratic leader. “It would be a
huge mistake to underestimate
[Mr. Trump]. We’ve done that
the entire election season.”
Democratic Senate leader
Harry Reid has concluded Mr.
Sanders has no path to the
nomination, an aide said, and

that he should shift focus to
helping Democrats pick up
Senate seats. Doing so would
help Mr. Sanders return to the
chamber with more power
than he wielded before the
presidential race began a year
ago, the aide said.
William Daley, who chaired
Mr. Gore’s presidential campaign and served as a White
House chief of staff for Mr.
Obama, said in an interview
the “damage” Mr. Sanders
could do is “overwhelming if
he doesn’t give [Mrs. Clinton]
the breather she needs in the
run-up to the convention to
take on Trump.”
At a minimum, some of
Mrs. Clinton’s supporters
would like to see Mr. Sanders
lay off the attacks. Alan Kessler, a longtime Democratic
fundraiser, said Mr. Sanders’s
tone is “a little disappointing.”
“There’s no reason why he
shouldn’t fight for the things
that he’s talking about, but
there’s no need to continually
make it personal,” he added.

HHHHH

CAMPAIGN
WIRE
HHHHH

DEMOCRATIC RESULTS

Clinton Winner in
Puerto Rico Primary

Hillary Clinton overwhelmed
Bernie Sanders in Puerto Rico's
Democratic presidential primary
on Sunday, putting her within
striking distance of capturing her
party's nomination.
After a victory Saturday in the
U.S. Virgin Islands and a win in the
U.S. territory, Mrs. Clinton was less
than 30 delegates short of the
2,383 needed to win the nomination, according to an Associated
Press count.
While Puerto Rican residents
cannot vote in the general election,
the island's politics could reverberate into the fall campaign. Tens of
thousands of Puerto Ricans have
left the island to escape a dismal
economy, with many resettling in
the key battleground of Florida.

—Associated Press
CAMPAIGN VIOLENCE

Trump: Protesters
Sent by Democrats

Presumptive Republican presidential nominee Donald Trump
on Sunday suggested protesters
who attacked his supporters after a rally in San Jose, Calif.,
Thursday were “paid agitators”
deployed by the Democrats.
Appearing on CNN, Mr. Trump
blamed for the mayhem “thugs”
who attend “every rally.”
“They’re bad people, and I
think they’re sent by the Democrats,” he said.
He offered no evidence for
the claim, but said some of the
protesters were holding campaign signs for Democratic candidate Bernie Sanders.
In separate appearances on
CNN, Mr. Sanders and Democratic
front-runner Hillary Clinton condemned violence at political gatherings. “I condemn it absolutely,”
Mr. Sanders said. “I want to make
it clear that any person who is a
Bernie Sanders supporter, please,
do not in any way, shape or form
engage in violence.”
—Kate Davidson

THE WALL STREET JOURNAL.

Monday, June 6, 2016 | A7

* * * *

U.S. NEWS

Funding Fights Vex Schools Risk Algorithms
Face Court Test

Officials in Kansas,
Illinois and Michigan
work to try to keep
classrooms open

BY JOE PALAZZOLO

By Melissa Korn,
Douglas Belkin
and Kris Maher
Stung by lower tax revenue
and nearing the end of the regular legislative sessions, politicians and school administrators in Kansas, Illinois and
some other Midwestern states
are scrambling to firm up financial packages that would
keep some educational programs running through the
summer, and ensure that classrooms open again in the fall.
The Kansas Supreme Court
ruled last month that legislative efforts to make funding
for poorer school districts

more equitable didn’t go far
enough to meet a standing
court order; judges said Friday that the state had until June 30 to bring funding
formulas in line with constitutional requirements or the
court would shut schools.
The Kansas fight is the latest fallout from a move by the
state’s Republican governor
and Legislature to cut taxes
dramatically in an effort to
spur economic growth.
The state’s regular legislative session ended last
Wednesday and was adjourned
until January. Gov. Sam
Brownback hasn’t yet said
whether he would call for a
special session to address
school funding, but he reiterated Friday that he would
work with the attorney general
and legislative leadership “to
respond aggressively and appropriately” to the court’s closure threat. “The court should
not be playing politics with

SETH PERLMAN/ASSOCIATED PRESS

Lawmakers in some states
have a daunting homework assignment over their summer
break: to find hundreds of millions of dollars to make sure
the next school year can start
on time.

Illinois Gov. Bruce Rauner tells students in Auburn, Ill., in April about budget talks with lawmakers.
our children’s education,” he
said.
State Rep. Jim Ward, a
Democrat, said his colleagues
in the statehouse are the ones
playing politics. “They’re going
to play chicken for a while.
That never works out well,” he
said, predicting a special session would be called toward
month’s end.
“We must plan for the
worst and hope for the best,”
John Allison, superintendent
of the 51,000-student Wichita
School District, wrote on the
district’s website Thursday.
He said that while regular
summer school is completed
by July 1 and won’t be affected
by any shutdown, extended
summer sessions and a summertime meal program used
by low-income students could
be suspended, and monthly
payroll and nonbond vendor
payments of more than $50
million would be affected.
Illinois closed out its spring
legislative session last Tuesday without a budget for the
second year in a row. The

state, with a Republican governor and Democratic-led Legislature, now has $7 billion in
unpaid bills, as well as the nation’s lowest credit rating and

highest unemployment rate.
“We’re like a banana republic. We can’t manage our
money,” Gov. Bruce Rauner
told reporters last week when
the two sides again failed to
reach a deal.
Illinois passed supplemental
bills to release funds for specific purposes, like education,
last year; a first attempt to do
the same for the coming cycle
failed last week.
Chicago’s schools won’t
open in the fall unless the governor and Legislature pass a
budget or supplemental education appropriation, said Chicago Public Schools Chief Executive Forrest Claypool. That
could compound the problems
facing many of the city’s
neighborhoods already suffering from a surge in deadly
shootings this year.
“Any time your school system shuts down it has an incredible impact on families,”
said Mr. Claypool, whose district has more than 392,000
students. “But I don’t believe it
will come to that.”
Meanwhile, Michigan lawmakers are trying to finalize a
financial rescue package less
than a month before the Detroit Public Schools are pro-

jected to run out of cash.

On Thursday, the state
House of Representatives
passed a set of six bills that
would provide $617 million to
the district, including $467
million to pay off its operating
debt and $150 million to start
up a new, debt-free district.
Democrats overwhelmingly
opposed the funding plan, calling for more money for the
district and a new commission
to oversee school openings.
The measures passed Thursday would create an advisory
council that would make no
binding recommendations.
“This plan saves Detroit’s
school system and returns local control to the city, preventing a disastrous bankruptcy
that would have affected every
community in the state,” said
Republican House Speaker
Kevin Cotter.
The measures now head to
the state Senate, which passed
a different version of the package. Michigan’s Legislature
typically breaks for the summer in mid-June, and the Senate could squeeze in the new
proposals this week, said Amber McCann, spokeswoman for
Senate Majority Leader Arlan
Meekhof.

Algorithms used by authorities to predict the likelihood of

criminal conduct are facing a
major legal test in Wisconsin.
The state’s highest court is
set to rule on whether such algorithms, known as risk assessments, violate due process and
discriminate against men when
judges rely on them in sentencing. The ruling would be among
the first to speak to the legality
of risk assessments as an aid in
meting out punishments.
Criminal-justice
experts
skeptical of such tools say they
are inherently biased, treating
poor people as riskier than
those who are well off. Proponents of risk assessments say
they have elevated sentencing
to something closer to a science.
“Evidence has a better track
record for assessing risks and
needs than intuition alone,”
wrote Christine Remington, an
assistant attorney general in
Wisconsin, in a legal brief filed
in January defending the state’s
use of the evaluations.
Risk-evaluation tools have
gained in popularity amid efforts around the country to
curb the number of repeat offenders. They help authorities
sort prisoners, set bail and
weigh parole decisions. But

their use in sentencing is more
controversial.
Before the sentencing of 34year-old Eric Loomis, whose
case is before the state’s high
court, Wisconsin authorities
evaluated his criminal risk with
a widely used tool called COMPAS, or Correctional Offender
Management Profiling for Alternative Sanctions, a 137-question test that covers criminal
and parole history, age, employment status, social life, education level, community ties,
drug use and beliefs.
The assessment includes
queries like, “Did a parent figure who raised you ever have a
drug or alcohol problem?” and
“Do you feel that the things you

do are boring or dull?” Scores
are generated by comparing an
offender’s characteristics to a
representative criminal population of the same sex.
Prosecutors said Mr. Loomis
was the driver of a car involved
in a drive-by shooting in La
Crosse, Wis., on Feb. 11, 2013.
Mr. Loomis denied any involvement in the shooting, saying he
drove the car only after it had
occurred. He pleaded guilty in
2013 to attempting to flee police in a car and operating a vehicle without the owner’s consent and was sentenced to six
years in prison and five years
of supervision.
“The risk assessment tools

that have been utilized suggest
that you’re extremely high risk
to reoffend,” Judge Scott Horne

Tools used to
evaluate offenders
for sentencing raise
controversy.
in La Crosse County said at Mr.
Loomis’s sentencing.
Mr. Loomis said in his appeal that Judge Horne’s reliance on COMPAS violated his
right to due process, because
the company that makes the
test, Northpointe, doesn’t reveal how it weighs the answers
to arrive at a risk score.
Northpointe General Manager Jeffrey Harmon declined
to comment on Mr. Loomis’s
case but said algorithms that
perform the risk assessments
are proprietary. The outcome,
he said, is all that is needed to
validate the tools.
Northpointe says its studies
have shown COMPAS’s recidivism risk score to have an accuracy rate of 68% to 70%. Independent evaluations have
produced mixed findings.
Michael Rosenberg, a lawyer
for Mr. Loomis, and a spokeswoman for the Wisconsin Attorney General Brad Schimel declined to comment on the case.

Continued from Page One
various federal agencies led by

the White House science office, the people familiar with
the matter said, the company
appears close to obtaining
what it has called “mission approval.” Until recently, Moon
Express faced a regulatory
Catch-22 because there was no
template for getting Washington’s blessing for what it proposed.
Official action coordinated
through the Federal Aviation
Administration, which regulates U.S. rocket launches and
is responsible for traditional
payload reviews, could come
as soon as the next few weeks,
these people said.
An FAA spokesman said the
agency “is currently working
through the interagency process to ensure a mechanism is
in place that permits emerging
commercial space operations”
such as Moon Express. But the
agency declined to elaborate.
Bob Richards, chief executive and a founder of Moon
Express, said over the weekend that “we’ve become a regulatory pathfinder out of necessity,” because in the past
“only governments have undertaken space missions beyond Earth orbit.” He added
that the company “is eagerly
awaiting a determination” on
its mission-approval request.
Based in Cape Canaveral,
Fla., Moon Express, which has
40 employees, was co-founded

by Naveen Jain, a Silicon Valley entrepreneur and philanthropist, and Mr. Richards,
along with another longtime
space expert, Barney Pell, a
former NASA scientist. Mr.
Richards also is a founder of
International Space University,
a private
institution that
trains space scientists and
which has a central campus in
Strasbourg, France.
From the beginning, Moon
Express’s goal was to conduct
robotic missions able to carry
scientific payloads and scale
up to commercial operations.
The company is among
those competing for the
Google Lunar X Prize, which
offers a first prize of $20 million for the first privately
funded team that develops a
spacecraft to land on the
Moon, traverse its surface and

MOON EXPRESS

SPACE

Rendering of Moon Express’s suitcase-size MX-1 spacecraft.
transmit photos and videos.

Moon Express’s lander is
slated to be blasted into orbit
from a remote New Zealand
site by a 52-foot Electron
rocket
manufactured
by
Rocket Lab Ltd. Onboard
thrusters are supposed to propel the spacecraft, carrying a
space telescope and equipment for other experiments,
further from the Earth and
down to the Moon’s surface in
a matter of days or weeks.
Though the plan has drawn
little attention outside the
commercial space industry, it
is being closely monitored by
aerospace companies and entrepreneurs mulling investments in the nascent industry.
Under decades-old treaties,
the U.S. and other countries
are responsible for “continuing supervision” of both government and commercial payloads. Such responsibilities are
largely formalities when they
focus on satellites headed for
typical orbits around the
Earth, or spacecraft controlled
by the Pentagon, the National
Aeronautics and Space Administration or other federal entities. So far, the government
has sent probes to the Moon,
Mars and other planets.
But the proposed Moon Express mission is more complex, raising new questions

about international treaty obligations and protection of
heavenly bodies.
The new procedure features
a more detailed, governmentwide review of what such
payloads include, and whether
their contents or expected trajectories pose contamination
or other threats prohibited by
treaty provisions. According to
the FAA, a company such as
Moon Express “may voluntarily request an FAA review

of its payload” to determine if
it poses “any significant public
safety, national security, or
foreign policy concerns.”
“With the emergence of
new private players, it’s important to show some regulatory predictability,” according
to Scott Pace, a former senior
NASA official who teaches at
George Washington University.
Moon Express illustrates
how dramatically costs to
build and launch small spacecraft are falling. When the
company was formed around
the beginning of the decade, it
projected a moon mission
would cost roughly $50 million. Today, company officials
project a price tag of around
half that amount.
The government is expected to use the same process to vet private attempts to

fly deeper into space, including billionaire Elon Musk’s
plan to send an unmanned
craft to Mars in 2018. Officials
of SpaceX, as Mr. Musk’s company is called, are engaged in
similar governmentwide discussions in advance of seeking a launch license.
A SpaceX spokesman on
Sunday said, “we take planetary protection very seriously,” adding the company is
working with federal officials
to ensure compliance with
space treaty obligations.
Eventually, space scientists
and aerospace-industry leaders expect congressional action will be required to spell
out new review procedures reducing industry uncertainty.
But until that occurs, Moon
Express is expected to set the
standard for how the FAA,
State Department and other
federal agencies review private launches aiming to escape
the Earth’s gravitational pull.

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Special
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THE WALL STREET JOURNAL.

A8 | Monday, June 6, 2016

THE WALL STREET JOURNAL.

Monday, June 6, 2016 | A9

PAID ADVERTISEMENT

PAID ADVERTISEMENT

U.S., EUROPEAN MAYORS UNITE TO FIGHT ANTI-SEMITISM
As U.S. and European leaders have acknowledged,
anti-Semitism is on the rise. In response, AJC reached
out to mayors across Europe and the U.S., urging
them to publicly condemn and take concrete actions
against this pathology. These 188 European mayors

from 31 countries, representing over 67 million people,
and 319 U.S. mayors and municipal leaders from 50
states and the District of Columbia, representing over
82 million people, have signed the Mayors United
Against Anti-Semitism statement.
“Anti-Semitism is not compatible with fundamental democratic values,”
asserts the Mayors United Against Anti-Semitism statement.
“As Mayors and municipal leaders, we have a special responsibility to
speak out against the growing menace of anti-Semitism.” The statement
affirms that:

EUROPEAN MAYORS AND MUNICIPAL LEADERS
ALBANIA
Berat – Petrit Sinaj
Korçë - Sotiraq Filo
Lushnjë – Fatos Tushe
Patos – Rajmonda Balilaj
Roskovec – Majlinda Bufi
Tirana – Erion Veliaj

AUSTRIA
Salzburg – Heinz Schaden
Vienna – Michael Häupl
Villach – Günther Albel
BELGIUM
Antwerp – Bart de Wever
Boortmeerbeek – Michel Baert
Knokke-Heist – Graaf Leopold
Lippens
Turnhout – Eric Vos

BOSNIA AND HERZEGOVINA
Sarajevo – Ivo Komšić
BULGARIA
Sofia – Yordanka Fandakova

“We, the undersigned,

CROATIA
Zagreb – Milan Bandic

n

Condemn anti-Jewish hatred, in all its forms;

n

Reject the notion that anti-Semitic acts, while sometimes
carried out in the name of a political cause, may ever be
justified or excused by one’s opinions about the actions or
existence of the State of Israel;

n

n

n

n

Declare that prejudices against Jews or others due to

differences in religious faith are inconsistent with our core
values;
Support government efforts directed at eradicating antiSemitism and preventing extremist indoctrination and
recruitment; and support expanded education programs,
including Holocaust programs, that increase awareness and
counter intolerance and discrimination;
Recognize the ever-present need to be vigilant about efforts to
prevent and report acts of anti-Semitism, and other hate crimes;
and
Believe that communities that promote a climate of mutual
understanding and respect among all citizens are essential to
good governance and democratic life.”

If your mayor is listed, please take a moment to thank him or her for
standing up against anti-Semitism. Otherwise, mayors can join this
global effort by contacting If not now, when?

CYPRUS
Akanthou – Savvas Savvides
Athienou – Dimitris Papapetrou
Ayia Napa – Yiannis Karousos
Ayios Dhometios – Kostas Petrou
Dali – Leontios Kallenos
Engomi – Zacharias Kyriacou
Famagusta – Alexis Galanos
Geri – Argyris Argyrou
Karavas – Ioannis Papaioannov
Kyrenia – Glafkos A. Cariolou
Kythrea – Petros Kareklas
Larnaca – Andreas Louroudjiatis

Latsia - Panayiotis Kyprianou
Lefkara – Savvas Xenofontos
Limassol – Andreas Christou
Morphou – Charalambos Pittas
Nicosia – Constantinos Yiorkadjis
Paphos – Phedonas Phedonas
Paralimni – Theodoros Pyrillis
Strovolos – Lazaros Savvides
Yermasoyia – Andreas Gavrielides

CZECH REPUBLIC
Brno - Petr Vokřál
Prague – Adriana Krnáčová

DENMARK
Copenhagen – Frank Jensen
ESTONIA
Tallinn – Taavi Aas

THIS AD WAS MADE POSSIBLE BY THE GENEROSITY OF:
Arthur & Willi Aeder
New York, NY

Lawrence D. Ginsburg
Dallas, TX

Aldo & Sandra Papone
New York, NY

Len Berenfield

Cincinnati, OH

Dr. Rosemary Gluck
Baltimore, MD

Norman & Myrna Ricken
Boca Raton, FL

Stanley & Marion Bergman
New York, NY

Barnard & Rachel Gottstein
Gottstein Family Foundation
Anchorage, AK

Judith & David Rivkin
Rumson, NJ

Richard L. Berkman & Toni Seidl
Philadelphia, PA
Rena & Martin Blackman
New York, NY
Adele G. Block
New York, NY
Lee Bohm
St. Louis, MO
Giulietta Boukhobza & David Harris
New York, NY
Lotte & Ludwig Bravmann
Riverdale, NY

Leo Bretter
New York, NY
Simone & Jerome Chazen
The Chazen Foundation
New York, NY

Fleur & Leonard Harlan
New York, NY
Alan & Barbara S. Jacobs
New York, NY
David & Terry Kahan
Troy, MI
Gershon & Carol Kekst
New York, NY
Mr. and Mrs. Harris L. Kempner, Jr.
Galveston, TX
Richard J. Kogan
Short Hills, NJ
Sandra Krause
In Memory of Maurice L. Strauss
Los Angeles, CA

Dr. Alain Roizen
New York, NY
Daryl & Steven Roth
New York, NY
Jan & Lawrence Ruben
New York, NY
Bonnie & Mitchell Rudin
Scarsdale, NY

Joan & Jack Saltz
New York, NY
Arthur & Rebecca Samberg
Ossining, NY
The Schleifer Family Foundation
Chappaqua, NY
Seigle Family Foundation
Chicago, IL

Ruth & Sid Lapidus
Harrison, NY

Herbert J. Siegel
New York, NY

Clarins Groupe USA

Leonard & Judy Lauder
New York, NY

Nancy Olnick Spanu
New York, NY

Shirley & Milton Cooper
New Hyde Park, NY

Susan & Bill Levine
Phoenix, AZ

Richard & Rosalee Davison

Baltimore, MD

The Litwin Foundation
New York, NY

Mira J. Spektor
In Memory of Eryk Spektor
New York, NY

Martin Elias
Muttontown, NY

The Honorable & Mrs. Earl Mack
Palm Beach, FL

George & Oscar Feldenkreis
In Honor of Michael Gould
Miami, FL

Eunice & Andrew Melnick
Locust, NJ

Reeve Chudd & Marian Mann
Pacific Palisade, CA

Philip M. & Regan Friedmann
Chicago, IL
Alice & Nathan Gantcher
Palm Beach, FL
Morad Ghadamian

New York, NY

Barbara Mines
Jupiter, FL

Chris Spyropoulos
Old Brookville, NY
Barry Sternlicht
Greenwich, CT
Nicki & Harold Tanner
New York, NY

M.K. – Link Foundation
Las Vegas, NV

John & Barbara Vogelstein
Foundation
New York, NY

Sara Moss & Michael Gould
New York, NY

Barry & Teri Volpert
New York, NY

Gilbert S. Omenn, M.D.
Ann Arbor, MI

Herbert D. Weitzman
Dallas, TX

Stanley M. Bergman

David Harris

Michael Gould

PRESIDENT

CHIEF EXECUTIVE OFFICER

CHAIR, MEDIA CAMPAIGN

ajc.org

/ajcglobal

@ajcglobal

FRANCE
Bordeaux – Alain Juppé
Montpellier – Philippe Saurel
Nancy – Laurent Hénart
Nice – Christian Estrosi
Paris – Anne Hidalgo
Sarcelles – François Pupponi
Strasbourg – Roland Ries
Toulouse – Jean Luc Moudenc
GERMANY
Aachen – Marcel Philipp

Augsburg – Kurt Gribl
Bayreuth – Brigitte Merk-Erbe
Bergheim – Maria Pfordt
Bochum - Thomas Eiskirch
Bonn – Ashok Sridharan
Bramsche – Heiner Pahlmann
Braunschweig – Ulrich Markurth
Charlottenburg – Reinhard
Naumann
Cologne – Henriette Reker
Dachau – Florian Hartmann
Datteln – André Dora
Dortmund – Ullrich Sierau
Düsseldorf – Thomas Geisel
Emmerich am Rhein – Peter Hinze
Erfurt - Andreas Bausewein
Essen – Thomas Kufen
Esslingen am Neckar – Jürgen
Zieger
Frankfurt – Peter Feldmann
Fürth – Thomas Jung
Gelsenkirchen – Frank Baranowski
Göttingen – Rolf-Georg Köhler
Greven – Peter Vennemeyer
Halberstadt – Andreas Henke
Haltern am See – Bodo Klimpel
Hamburg – Olaf Scholz
Hameln – Claudio Griese
Hannover – Stefan Schostock
Hansestadt Rostock – Roland

Methling
Heidelberg – Eckart Würzner
Heilbronn – Harry Mergel
Hildesheim – Ingo Meyer
Hofheim am Taunus – Gisela Stang
Hürth – Dirk Breuer
Kamen – Hermann Hupe
Karlsruhe - Frank Mentrup
Kiel - Ulf Kämpfer
Kleve – Sonja Northing

Lampertheim – Gottfried Störmer
Landau – Thomas Hirsch
Landsberg am Lech – Mathias Neuner
Leipzig – Burkhard Jung
Leverkusen – Uwe Richrath
Lingen/Ems – Dieter Krone
Ludwigshafen – Eva Lohse
Maintal – Monika Böttcher
Mainz – Michael Ebling
Mannheim – Peter Kurz
Marzahn Hellersdorf – Stefan Komoß
Meppen – Helmut Knurbein
Mitte – Christian Hanke
Monheim am Rhein – Daniel
Zimmermann
Mühlheim an der Ruhr – Ulrich
Scholten
Munich – Dieter Reiter
Neuburg an der Donau – Bernhard

Gmehling
Nuremberg – Ulrich Maly
Offenbach – Horst Schneider
Offenburg – Edith Schreiner
Oranienburg – Hans-Joachim
Laesicke
Osnabrück – Wolfgang Griesert
Pankow – Matthias Köhne
Passau – Jürgen Dupper
Pforzheim – Gert Hager
Schwäbisch Gmünd – Richard
Arnold
Springe – Christian Springfeld
Stuttgart – Fritz Kuhn
Trier – Wolfram Leibe
Tübingen – Boris Palmer
Ulm – Ivo Gönner
Villingen-Schwenningen – Rupert
Kubon
Wedemark – Helge Zychlinski
Weiden – Kurt Seggewiß
Werl – Michael Grossmann
Wernigerode – Peter Gaffert
Wittenberg – Torsten Zugehör
Wolfenbüttel – Thomas Pink
Worms - Michael Kissel
Zwickau – Pia Findeiß

GREECE
Athens – Giorgos Kaminis

Thessaloniki – Yiannis Boutaris
HUNGARY
Budapest – István Tarlós
Debrecen – Papp László
Eger – László Habis
Győr-Moson-Sopron County –
Zoltán Németh
Kaposvár – Szita Károly
Pécs – Zsolt Pava
Somogy County – Gergely Jako
Szabolcs-Szatmár-Bereg County –
Oskár Sesztár
IRELAND
Dublin – Críona Ní Dhálaigh
ITALY
Ancona – Valeria Mancinelli
Bologna – Virginio Merola
Briga Novarese – Chiara Barbieri
Campobasso – Antonio Battista
Ferrara – Tiziano Tagliani
Florence – Dario Nardella
Genova – Marco Doria
L’Aquila – Massimo Cialente
Milan – Giuliano Pisapia
Novara – Andrea Ballarè
Palermo – Leoluca Orlando
Potenza – Dario De Luca
Trento – Alessandro Andreatta
Trieste – Roberto Cosolini
Turin – Piero Fassino

Venice – Luigi Brugnaro
Verona – Flavio Tosi

LATVIA
Riga – Nils Ušakovs
LITHUANIA
Vilnius – Remigijus Šimašius
MALTA
Valletta – Alexiei Dingli

MOLDOVA
Chisinau – Dorin Chirtoaca

NETHERLANDS
Amsterdam – E.E. van der Laan
The Hague - Jozias van Aartsen
Rotterdam - Ahmed Aboutaleb
POLAND
Bydgoszcz – Rafał Bruski
Gdańsk – Paweł Adamowicz
Kielce - Wojciech Lubawski
Lublin - Krzysztof Żuk
Poznan – Jacek Jaskowiak
Rzeszow – Tadeusz Ferenc
Warsaw - Hanna Gronkiewicz-Waltz
Wrocław – Rafał Dutkiewicz
PORTUGAL
Lisbon – Fernando Medina
Porto – Rui Moreira

ROMANIA
Alba Iulia – Mircea Hava
Iasi – Mihai Chirica

SLOVAKIA
Bratislava – Ivo Nesrovnal
SLOVENIA
Ljubljana – Zoran Janković
SPAIN
Madrid – Manuela Carmena
SWEDEN
Stockholm – Karin Wanngard

SWITZERLAND
Biel – Erich Fehr
Lausanne – Daniel Brelaz
UKRAINE
Chernivtsi – Oleskii Kaspruk
Kiev – Vitaly Klichko
Lviv – Andriy Sadovyy
Odessa – Gennadiy Trukhanov

UNITED KINGDOM
Bristol – Marvin Rees
London – Sadiq Khan
– Boris Johnson (2008-16)
Salford – Ian Stewart
St. Albans – Salih Gaygusuz

U.S. MAYORS AND MUNICIPAL LEADERS

ALABAMA
Birmingham – William A. Bell
Mobile – William S. Stimpson
ALASKA
Anchorage – Ethan Berkowitz
ARIZONA
Phoenix – Greg Stanton
Tempe – Mark W. Mitchell
Tucson – Jonathan Rothschild
ARKANSAS
Little Rock – Mark Stodola
CALIFORNIA
Agoura Hills – Illece Buckley Weber
Albany – Peter Maass
Anaheim – Tom Tait
Bakersfield – Harvey L. Hall
Beverly Hills – Julian A. Gold
Calabasas – Lucy M. Martin
Dublin – David Haubert
Emeryville – Ruth Atkin
Irvine – Steven S. Choi
Long Beach – Robert Garcia
Los Altos – Jan Pepper
Los Angeles – Eric Garcetti
Sacramento – Kevin Johnson
San Diego – Kevin Faulconer
San Francisco – Edwin M. Lee
San Jose – Sam Liccardo
San Leandro – Pauline Cutter
Santa Barbara – Helene Schneider

Santa Monica – Kevin McKeown
West Hollywood – Lindsey P. Horvath

COLORADO
Aurora – Stephen D. Hogan
Denver – Michael B. Hancock

CONNECTICUT
East Hartford – Marcia A. Leclerc
Greenwich – Peter J. Tesei
Hartford – Pedro E. Segarra
Middletown – Daniel Drew
New Britain – Erin E. Stewart
Stamford – David R. Martin
Westport – James S. Marpe

Johns Creek – Michael E. Bodker
Macon-Bibb County – Robert A. B.
Reichert
Roswell – Jere Wood
Sandy Springs – Russell K. Paul
Savannah – Edna Branch Jackson

HAWAII
Hilo – William P. Kenoi
Honolulu – Kirk Caldwell
IDAHO
Boise – David H. Bieter
ILLINOIS
Berwyn – Robert J. Lovero

Bloomington – Tari Renner
Bolingbrook – Roger C. Claar
Chicago – Rahm Emanuel
Elgin – David Kaptain
Evanston – Elizabeth Tisdahl
Glencoe – Lawrence R. Levin
Highland Park – Nancy Rotering
Homewood – Richard A. Hofeld
Joliet – Robert O’Dekirk
Morton Grove – Daniel P. DiMaria
Northfield – Fred Gougler
Orland Park – Daniel J. McLaughlin
Peoria – James Ardis
Schaumberg – Al Larson
Skokie – George Van Dusen
Wheeling – Dean S. Argiris
INDIANA
Indianapolis – Gregory A. Ballard
IOWA
Des Moines – T.M. Franklin Cownie
KANSAS
Kansas City – Mark R. Holland
Leawood – Peggy J. Dunn
Overland Park – Carl R. Gerlach
Wichita – Jeff Longwell
KENTUCKY
Lexington – Jim Gray
Louisville – Greg Fischer
LOUISIANA
Bossier City – Lorenz J. Walker

DELAWARE
Wilmington – Dennis P. Williams

DISTRICT OF COLUMBIA
Muriel Bowser
FLORIDA
Apopka - Joe Kilsheimer
Aventura – Enid Weisman
Bal Harbour – Martin Packer
Bay Harbor Islands – Jordan W.
Leonard
Boca Raton – Susan Haynie
Boynton Beach – Jerry Taylor
Broward County – Tim Ryan
Cooper City – Greg Ross
Coral Springs – Walter “Skip”
Campbell
Deerfield Beach – Jean M. Robb
Delray Beach – Cary D. Glickstein
Doral – Luigi Boria
Hallandale Beach – Joy Cooper
Juno Beach – Mort Levine
Lauderhill – Richard J. Kaplan
Miami – Tomas Pedro Regalado
Miami Beach – Philip Levine
Miami Dade County – Carlos A.
Gimenez
North Bay Village – Connie Leon-Kreps
North Miami Beach – George Vallejo

Ocala – Kent Guinn
Orlando – Buddy Dyer
Palm Beach County – Shelley Vana
Palm Beach Gardens – Eric Jablin
Parkland – Michael Udine
Pembroke Pines – Frank C. Ortis
Pinecrest – Cindy Lerner
Port St. Lucie – Gregory J. Oravec
St. Petersburg – Rick Kriseman
Sunrise – Michael J. Ryan
Tamarac – Harry Dressler
Weston – Daniel J. Stermer
West Palm Beach – Geraldine ‘Jeri’
Muoio

GEORGIA
Atlanta – Kasim Reed
Augusta – Hardie Davis, Jr.

MAINE
Augusta – David M. Rollins
Bangor – Nelson E. Durgin
Lewiston – Robert E. Macdonald
Portland – Michael F. Brennan

MARYLAND
Anne Arundel County – Steve Schuh
Baltimore – Stephanie RawlingsBlake
Baltimore County – Kevin Kamenetz
Brunswick – Karin Tome

College Park – Andrew M. Fellows
Gaithersburg – Jud Ashman
Hagerstown – David S. Gysberts
Harford County – Barry Glassman
Laytonsville – Dan Prats
Montgomery County – Isiah “Ike”
Leggett
Prince George’s County – Rushern L.
Baker III
Queen Anne – Randy Esty
Rockville – Bridget Donnell Newton
Somerset – Jeffrey Z. Slavin
Washington Grove – Joli A.
McCathran

MASSACHUSETTS
Agawam – Richard A. Cohen
Attleboro – Kevin J. Dumas
Beverly – Michael P. Cahill
Boston – Martin J. Walsh
Brookline – Neil Wishinsky
Cambridge – David P. Maher
Charlton – Rick Swensen
Chelmsford – Matt Hanson
Conway – John O’Rourke
Dedham – Jim MacDonald
Easthampton – Karen L. Cadieux
Egremont – Bruce Turner
Fitchburg – Lisa A. Wong
Gloucester – Sefatia Romeo Theken

Greenfield – William F. Martin
Haverhill – James J. Fiorentini
Holyoke – Alex B. Morse
Hull – John Brannan

Lawrence – Daniel Rivera
Leominster – Dean J. Mazzarella
Lowell – Rodney M. Elliott
Malden – Gary Christenson
Mendon – Mark Reil
Methuen – Steve Zanni
Monterey – Scott J. Jenssen
Needham – Maurice P. Handel
Newburyport – Donna D. Holaday
Newton – Setti Warren
Northampton – David Narkewicz
Norwood – Paul A. Bishop
Plympton – Mark E. Russo
Quincy – Thomas P. Koch
Revere – Daniel Rizzo
Salem – Kimberley Driscoll
Sandisfield – Alice B. Boyd
Sandwich – Frank Pannorfi
Sharon – William A. Heitin
Somerville – Joseph Curtatone
Springfield – Domenic J. Sarno
Stoughton – Joseph M. Mokrisky
Taunton – Thomas Hoye, Jr.
Waltham – Jeannette A. McCarthy
Worcester – Joseph Petty

MICHIGAN
Ann Arbor – Christopher Taylor
Farmington Hills – Barry L. Brickner
Muskegon – Stephen J. Gawron
Oak Park – Marian McClellan
Southfield – Donald F. Fracassi

MINNESOTA
Golden Valley – Shep Harris

MISSISSIPPI
Gulfport – Billy Hewes
Jackson – Tony T. Yarber

MISSOURI
Clayton – Harold J. Sanger
Creve Coeur – Barry L. Glantz
Kansas City – Sylvester “Sly” James, Jr.
St. Louis – Francis G. Slay
University City – Shelley Welsch

MONTANA
Great Falls – Bob Kelly

NEBRASKA
Lincoln – Chris Beutler
NEVADA
Henderson – Andy A. Hafen
Las Vegas – Carolyn G. Goodman

NEW HAMPSHIRE
Portsmouth – Robert J. Lister

NEW JERSEY
Atlantic City – Donald A. Guardian
Avalon – Martin L. Pagliughi
Camden County – Jeffrey L. Nash
Cape May – Edward J. Mahaney, Jr.
Cherry Hill – Chuck Cahn
Closter – John C. Glidden, Jr.
East Hanover – Joseph Pannullo
East Windsor – Janice F. Mironov
Elizabeth – J. Christian Bollwage
Englewood – Frank Huttle
Fort Lee – Mark J. Sokolich
Harrison – James Fife
Highland Park – Gayle Brill Mittler
Hope Township – Timothy C.
McDonough
Jersey City – Steven M. Fulop
Livingston – Michael M. Silverman
Margate – Michael S. Becker
Marlboro – Jonathan L. Hornik
Morristown – Timothy P. Dougherty
Newark – Ras Baraka
Parsipanny-Troy Hills – James R.
Barberio
Plainsboro – Peter Cantu
Princeton – Liz Lempert
Randolph – Joanne Veech

Ridgewood – Paul Aronsohn
Roxbury Township – Jim Rilee
Summit – Ellen Dickson
Tenafly – Peter Rustin
West Orange – Robert D. Parisi
West Windsor – Shing-Fu Hsueh
Woodcliff Lake – Jeffrey R. Goldsmith

NEW MEXICO
Santa Fe – Javier Gonzales

Rye Brook – Paul S. Rosenberg
Southold – Scott A. Russell
Suffolk County – Steven Bellone
Syracuse – Stephanie Miner
Wesley Hills – Marshall Katz
Westchester County – Robert P.
Astorino
White Plains – Tom Roach
Williston Park – Paul M. Ehrbar
Yonkers – Mike Spano

NORTH CAROLINA
Asheville – Esther E. Manheimer
Charlotte – Daniel G. Clodfelter

NORTH DAKOTA
Grand Forks – Michael Brown

OHIO

Akron – Jeff Fusco
Amberley Village – Thomas C.
Muething
Beachwood – Merle S. Gorden
Blue Ash – Lee Czerwonka
Cincinnati – John Cranley
Cleveland Heights – Dennis R.
Wilcox
Columbus – Michael B. Coleman
Cuyahoga County – Armond Budish
Dayton – Nan Whaley
Harrison – Bill Neyer
Lima – David J. Berger
Loveland – Linda Cox
Lyndhurst – Joseph M. Cicero, Jr.
Parma – Tim DeGeeter
Pepper Pike – Richard Bain
Reading – Robert P. Bemmes
Shaker Heights – Earl M. Leiken
South Euclid – Georgine Welo
Toledo – Paula Hicks-Hudson
Youngstown – John A. McNally

OKLAHOMA
Tulsa – Dewey F. Bartlett, Jr.

OREGON
Beaverton – Denny Doyle
Portland – Charlie Hales
PENNSYLVANIA

Allentown – Ed Pawlowski
Easton – Salvatore J. Panto, Jr.
Montgomery County – Josh Shapiro
Philadelphia – James F. Kenney
Pittsburgh – William Peduto

RHODE ISLAND
Central Falls – James A. Diossa
Cranston – Allan Fung
Providence – Jorge Elorza
Warwick – Scott Avedisian

SOUTH CAROLINA
Charleston – Joseph P. Riley, Jr.
Columbia – Stephen K. Benjamin

SOUTH DAKOTA
Rapid City – Steve Allender
TENNESSEE
Chattanooga – Andy Berke
Memphis – AC Wharton, Jr.
Nashville – Karl Dean
Shelby County – Mark H. Luttrell, Jr.
TEXAS
Austin – Steve Adler
Corpus Christi – Nelda Martinez
Dallas – Mike Rawlings
Fort Worth – Betsy Price
Galveston – James D. Yarbrough
Garland – Douglas Athas

Houston – Sylvester Turner
Plano – Harry LaRosiliere
Richardson – Paul Voelker
San Antonio – Ivy R. Taylor
Waco – Malcolm Duncan, Jr.

UTAH
Holladay – Robert M. Dahle
Midvale City – JoAnn B. Seghini
Provo – John R. Curtis
Salt Lake City – Ralph Becker
Salt Lake County – Ben McAdams
VERMONT
Burlington – Miro Weinberger
Montpelier – John Hollar
VIRGINIA

NEW YORK
Buffalo – Byron W. Brown
Farmingdale – Ralph Ekstrand
Greenburgh – Paul Feiner
Hastings-on-Hudson – Peter
Swiderski
Hempstead – Kate Murray
Huntington – Frank P. Petrone
Mamaroneck – Norman S. Rosenblum
Montebello – Jeffrey Oppenheim
Nassau County – Edward P. Mangano
New Rochelle – Noam Bramson
New York – Bill De Blasio

Ossining – Victoria Gearity
Oyster Bay – John Venditto
Peekskill – Frank Catalina
Port Washington North – Robert
Weitzner
Rochester – Lovely A. Warren
Rockland County – Edwin J. Day

Alexandria – Wiliam D. Euille
Chesapeake – Alan P. Krasnoff
Fairfax County – Sharon Bulova
Norfolk – Paul D. Fraim
Richmond – Dwight Clinton Jones
Suffolk – Linda T. Johnson
Virginia Beach – William D. Sessoms

WASHINGTON
Mercer Island – Bruce Bassett
Seattle – Ed Murray
WEST VIRGINIA
Huntington – Stephen T. Williams
Wheeling – Andy McKenzie
WISCONSIN
Madison – Paul Soglin
WYOMING
Gillette – Louise Carter-King


A10 | Monday, June 6, 2016

* ***

THE WALL STREET JOURNAL.

WORLD NEWS

Maritime Spat Brews as U.S., China Talk
RAJ WONG/EUROPEAN PRESSPHOTO AGENCY; WALLACE WOON/EUROPEAN PRESSPHOTO AGENCY (LEFT)

Beijing rejects warning
that it risks isolating
itself due to its stance
in territorial dispute

China and the U.S. sparred
over maritime disputes at a
weekend summit before sitting
down for economic and security talks expected to be dominated by tensions over the
South China Sea.
The dialogue, which began
By Chun Han Wong in
Singapore and Felicia
Schwartz in Beijing
on Monday in Beijing, takes
place with China bracing
against growing international
pressure over its territorial
claims and asserting its intent
to exercise greater clout as a
major power. Economic strains

between Beijing and Washington, meanwhile, have flared
over currency and trade practices.
The intent of the high-level
talks, which President Barack
Obama launched in 2009, is to
try to find common ground.
U.S. officials, for instance,
have said they would seek Beijing’s help in pressuring North
Korea over its nuclear program. Last week, though,
Washington took additional
steps to cut off Pyongyang
from the global financial system—a move that could expose China, North Korea’s
largest trading partner, to
negative economic effects.
The annual Strategic and
Economic Dialogue is a twoday affair that draws hundreds
of U.S. and Chinese officials.
They are led on the U.S. side by
Secretary of State John Kerry

Chinese Adm. Sun Jianguo, left, on Sunday dismissed what he called U.S. interference in Asian security issues. At right, the USS Blue Ridge arrived in Shanghai in May.
and Treasury Secretary Jack
Lew, and on the Chinese side
by State Councilor Yang Jiechi
and Vice Premier Wang Yang.
At the opening of the
talks, Mr. Lew chided China
for a recently passed law
granting police broad authority to supervise foreign nonprofit groups.
“We are very concerned

that China’s recently passed
Foreign NGO Management Law
will weaken that foundation
by creating an unwelcome environment for foreign NGOs,”
Mr. Lew said, adding that “addressing it will be important
for our bilateral relationship.”
Mr. Kerry appeared to reference the NGO law as well—
saying “nothing does more to
assist our official deliberations
than the involvement of individuals and grass-roots organ-

izations in both the United
States and China”—and said
he would raise concerns about
human rights and transparency in the meetings.
Disagreements were evident
on Sunday. At Asia’s largest security conference in Singapore,
Beijing’s highest-ranking delegate spoke forcefully against
U.S.-led criticism of China’s activities in the South China Sea,
particularly its refusal to accept a coming tribunal ruling at
The Hague that could contradict its maritime claims in the
world’s busiest shipping lanes.
Adm. Sun Jianguo, deputy
chief of the Chinese military’s
Joint Staff Department, dismissed what he characterized
as U.S. interference in Asian
security issues and rebuffed
accusations that Beijing risked
isolating itself through its as-

sertive behavior and expansive
claims in the South China Sea.
“We were not isolated in
the past, we are not isolated
now, and we will not be isolated in the future,” Adm. Sun
said at the Shangri-La Dialogue, an annual gathering of
Asian and Western defense officials. Instead, he criticized
other countries for retaining a
“Cold War mentality” when
dealing with China, saying
they may only “end up isolating themselves.”
On Monday, at the start of
the talks in Beijing, Chinese
President Xi Jinping said
China is committed to “advancing peace, stability and
development in the Asia Pacific.” “The vast Pacific should
be a stage for…cooperation,
not an arena for competition.”
U.S. Defense Secretary Ash

Carter on Saturday told the
conference in Singapore that
China risked erecting a “Great
Wall of self-isolation.” He
urged Beijing to abide by international law and respect
the outcome of The Hague arbitration case, which was filed
by the Philippines in 2013 in a
bid to curtail China’s territorial assertions in the South
China Sea. The ruling is expected within weeks.
China’s denunciations of

the tribunal and its legal authority dominated discussions
at the Shangri-La Dialogue.
Several Asian and Western defense chiefs—including those
from Japan, Malaysia, Britain
and France—urged compliance
with the United Nations Convention on the Law of the Sea,
or Unclos, under which the tribunal was established, though

only a few of them referred directly to China.
“The timing of this conference was very sensitive for
China,” coming just ahead of
the tribunal ruling, said Bonnie
Glaser, senior adviser for Asia
at the Washington-based Center
for Strategic and International
Studies. “The Chinese were
very much on the defensive.”
A senior Chinese delegate
admitted as much, saying they
face an uphill task in overcoming foreign “propaganda”
against Beijing. “International
public opinion is still being
controlled by the Western
world,” said Maj. Gen. Jin Yinan, a professor at China’s National Defense University. “In
such unfavorable circumstances, we must still do our
best to use public forums to
explain China’s position.”

By Niharika Mandhana
in New Delhi

and Carol E. Lee
in Washington
to cement progress the two
have made on economic and security fronts when he arrives in
Washington on Monday.
Mr. Modi will address Congress during the three-day
visit, which comes months before President Barack Obama
leaves office. India’s Foreign
Ministry described Mr. Modi’s
White House meeting, scheduled for Tuesday, as a “consolidation visit,” after two years of
brisk diplomacy and deepening
relations between the leaders.
The trip furthers one of Mr.

Obama’s foreign-policy efforts:
cultivating New Delhi as part of
his Asian pivot. The focus on
India under Mr. Obama hasn’t
drawn as much attention as
many other initiatives abroad,
but the president sees a change
in India’s role as one of his major achievements, a senior administration official said.
“India made a big shift under Prime Minister Modi,” the
official said. “I think it’s really
hard to overestimate the rapid
pace of progress in our defense
relationship.”
The two countries agreed in
April to facilitate their armed
forces’ use of each other’s

bases for replenishment and repair. They are in talks to coproduce advanced military
hardware in India. In a message
to Beijing, they released a
“joint strategic vision” last year
agreeing to ensure freedom of
navigation, “especially in the

1 0 TH A N N I V E R S A R Y S A L E

South China Sea,” where China
is locked in a standoff with the
U.S. and others over its maritime claims.
New Delhi remains wary of
an outright alliance with the
U.S. In a recent interview with
the Journal, Mr. Modi said he
wouldn’t deviate from the
“nonalignment” doctrine that
has defined India’s international relations for decades.
Still, India’s current stance is a
significant shift from Cold War
days, when New Delhi tilted
clearly toward Moscow.
Mr. Modi—who is seeking
American investment to fuel India’s growth and technology to
modernize its defense sector—
has been eager to work closely
with the U.S. Among the factors
propelling the relationship is
China’s growing footprint in India’s traditional sphere of influence.

The U.S. has supported India

Prime Minister Narendra Modi,
who visits the U.S. this week
on issues including New Delhi’s
bid to join the Nuclear Suppliers Group, which would help it
access nuclear fuel and technology more easily. China, a close
ally of India’s nuclear-armed ri-

val Pakistan, hasn’t backed India’s membership on the
grounds that India, which also
has nuclear arms, hasn’t signed
the nonproliferation treaty.
Mr. Modi is also making
stops in Switzerland and Mexico this week in a bid to win
support for India’s application.
The issue is expected to come
up in his meeting with Mr.
Obama. Making India’s case on
Friday, Foreign Secretary S.
Jaishankar invoked a subject
central to Mr. Obama’s legacy:
the climate-change agreement
signed in Paris last year.
Mr. Jaishankar pointed to
India’s pledge to increase the
share of its electricity-generation capacity from sources
other than fossil fuels to 40%
by 2030. To make that happen,
India will have “a very large

number" of nuclear reactors in
the next 15 years, he said.
“If there is uncertainty

about trading rules, if there is
uncertainty about technology
access, you will really not get
that kind of investment and
players stepping forward,” he
said. “Getting us into the NSG
would help facilitate nuclear
trade with us.”
Until three years ago, Mr.
Modi was barred from the U.S.
after religious riots broke out
in 2002 in a state he governed
as chief minister, leaving 1,000
people dead, most of them
Muslims. The U.S. revoked his
tourist visa and denied him a
diplomatic visa following allegations Mr. Modi didn’t do
enough to restrain Hindu mobs
from attacking Muslims.
Mr. Modi has denied the accusations and an Indian court
has said there isn’t enough evidence to prosecute him.
—William Mauldin
in Washington
contributed to this article.

Tiger Temple Is Focus of Trafficking Probe

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BANGKOK—A
Buddhist
temple west of Bangkok, once
a staple on Thailand’s tourist

trail, is at the center of one of
the country’s biggest-ever
wildlife-trafficking investigations after scores of dead tiger
cubs were found piled in a
freezer and stuffed into bottles and jars.
Until recently, the Tiger
Temple drew visitors with the
opportunity to pose for photographs with big cats or bottlefeed tiger cubs. Wat Pha Luang Ta Bua, as the temple is
formally known, was an easy
day trip from the capital. Buddhist monks would charge 600
baht—about $17—per person
as an entry fee, with additional payments for photos or
interacting with cubs.
But now, Thai investigators
say they are trying to confirm
activists’ suspicions that the
temple was breeding tigers to
feed the market for wild-animal parts in China and elsewhere.
After removing 137 tigers
and shutting the attraction in
recent days, police and wildlife
officials found 40 tiger-cub
corpses in a freezer and the
remains of another 20 stuffed
into bottles and jars. This
raised
questions
about
whether endangered animals
were being trafficked.

Wildlife-protection officials
have filed criminal complaints
against several suspects for il-

CHAIWAT SUBPRASOM/REUTERS

Indian Prime Minister Narendra Modi, who has worked to
forge closer strategic ties with
the U.S. as China’s rise changes
Asia’s power balance, will seek

AREF KARIMI/AGENCE FRANCE-PRESSE/GETTY IMAGES

India’s Modi Looks to Fortify Ties With Washington

A tranquilized tiger was removed from the Tiger Temple, west of Bangkok, on Friday.
legally possessing endangered
animals or animal parts, including temple abbot Phra
Sutthi Sarathera and other
monks, none of whom could be
reached for comment. Some
were arrested while attempting to move tiger pelts and
other body parts away from
the temple.
Officials said they also
found tiger carcasses in the
living quarters of Phra Sutthi.
Temple staff said he left for
Bangkok in May and his
whereabouts were unknown.

On its Facebook page, the
temple said the cubs in the
freezer died of natural causes

and were stored there on the
recommendation of a veterinarian. It said it had no knowledge of tiger pelts and tiger
parts found at the temple.
Authorities say it is too
soon to conclude that the Tiger Temple was breeding cubs
for the trade in endangered
animals. “We need to talk to
the suspects and expand our
investigation,” said Adisorn
Nuchdamrong, deputy director-general of Thailand’s Department of National Parks.
Thailand has long been a
hub for wildlife trafficking,
and the business appears to be
growing despite efforts to

crack down on the trade. Animal-welfare and antitrafficking groups, which researched
a 2014 report for the Convention on International Trade in
Endangered Species of Wild
Fauna and Flora, wrote that
“an increasing number of live
animals and frozen bodies are
being detected, with more
than 50% of seizures over the
past 14 years occurring since
2010.” Tigers and tiger parts
are still used in traditional

medicine in China, and are often sold as a way to boost sexual potency in men.
—Wilawan Watcharasakwet
contributed to this article.


THE WALL STREET JOURNAL.

Monday, June 6, 2016 | A11

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* ****

THE WALL STREET JOURNAL.

WORLD NEWS

MARTIN MEJIA/ASSOCIATED PRESS

Peruvian Presidential Runoff Goes Down to the Wire After Economist Surges in Polls
LIMA, Peru—Voters went to
the polls to pick a new president, in a contentious runoff
election that saw 77-year-old
economist Pedro Pablo Kuczynski surge in the final days of
the campaign.
About 22 million Peruvians
went to the polls on Sunday to
choose between Mr. Kuczynski,
known here as PPK, and Keiko
Fujimori, the 41-year-old
daughter of imprisoned former
President Alberto Fujimori. At
left, a woman voted in Lima on
Sunday.
Peru’s election agency said
late Sunday that with 51.7% of
the votes counted, Mr. Kuczynski had 50.59% support and
Ms. Fujimori had 49.41%. A
quick count by pollsters Ipsos
and GfK, which is based on a
sampling of ballots at polling

stations, showed that Mr. Kuczynski would win with a similar spread.
Mr. Kuczynski, who would
become one of the oldest politicians to win an election in
Latin America’s history, celebrated the early results by
dancing on the balcony of his
mansion in an affluent Lima

This wasn’t what was
supposed to happen. With
just over two weeks to go
until the British referendum
on European Union membership, Prime Minister David
Cameron might have expected his “Remain” campaign to be
well ahead.
Weeks of
warnings
from independent authorities in
Britain, Europe and the
world were supposed to have
convinced voters that the
risks of leaving were too
high in terms of lost trade,
investment and jobs. Remain
campaigners say they are
confident this message has
cut through with enough
voters to win the day. Yet
the polls still show the contest neck-and-neck. Mr. Cameron is fighting for his political life.

H

ow did it come to
this? One reason is
that the spotlight has
swung firmly onto the touchstone issue of immigration
following data published this

Pope Names
Two New
Saints in
Special Mass
Associated Press

VATICAN CITY—Pope Francis proclaimed two new saints:
a Lutheran convert who hid
Jews during World War II and
the Polish founder of the first
men’s religious order dedicated to the immaculate conception.
The pope called Swedishborn Elizabeth Hesselblad and
Stanislaus Papczynski “exemplary witnesses to this mystery of resurrection” during
the canonization Mass in St.
Peter’s Square.
Polish President Andrzej
Duda and first lady Agata
Kornhauser-Duda attended the
ceremony.
Ms. Hesselblad saved the
lives of 12 Jewish members of
the Piperno-Sed families by
hiding them in the convent in

Rome where she was superior
from December 1943 until the
capital’s liberation from Nazi
forces on June 4, 1944.
Stanislaus of Jesus and
Mary, as he is known, supported hospitals and shelters
for the poor and cared for the
sick in 17th-century Poland.
“Papczynski preached mercy
and encouraged people to do
acts of mercy,” the Polish
Episcopate said on its website.
His crowning achievement
was founding the order of
Marian Fathers.

Mr. Cameron made the ‘Remain’ case on television last week.
migration as part of his prereferendum negotiations
with the EU.

A

nother reason for the
Leave campaign’s
strength is that it has
tapped into the global tide of
anti-establishment sentiment. Unable to cite a
friendly foreign government
that supports Brexit or a
credible international organization that backs the campaign’s claim that the U.K.

would be economically better off outside the EU, it has
instead presented supporters
of the U.K.’s continued membership as members of a
self-interested global
elite. Leave campaigners argue they in contrast are
backed by risk-takers and
entrepreneurs, though there
is scant evidence for this: A

clear majority of businesses
of all shapes and sizes back
Remain, not least the overwhelming majority of tech
companies.
But perhaps the Remain
campaign’s biggest problem
has been its inability to
come up with a convincing
narrative of why the EU exists, what it does and where
it is going. The Leave campaign has resonated in large
part because it has convinced many voters that the
EU is a distant, undemocratic overbearing superstate
or a soon-to-be failed state
that presents a clear danger
to British identity and institutions. Rather than counter
this caricature, Mr. Cameron’s approach has been
broadly to agree, while
stressing the ways in which
the U.K.’s special status

shields it from Brussels’ excesses.

True, the current economic and political backdrop
in Europe hardly makes it
easy to counter this narrative. But a self-confident
pro-EU campaign could tell a
strong story about the EU’s
vital role as a mechanism by
which 28 sovereign countries
can try to find common solutions to common problems
facing a historically unstable
continent. Mr. Cameron’s reluctance to point to the EU’s
role in responding to crossborder challenges ranging
from terrorist threats to illegal migration to climate
change is puzzling. So, too,
is his reluctance to talk
about his own journey from
Brussels-basher to champion
of U.K. membership and
what he learned about the
realities of international diplomacy on the way.

P

erhaps that is because
the prime minister believes that a few weeks
of campaigning is insufficient to counter 30 years of
political and media hostility
toward the EU. Or perhaps
he is wary of appearing too
pro-European while he has
hopes of reuniting his

party after the June 23rd
referendum. Either way, he
finds himself trying to fight
an emotionally charged,
identity-based Brexit campaign armed largely with
economic statistics. It isn’t
clear that will be enough.

Populist Party Takes Lead in Rome Vote
BY GIADA ZAMPANO
ROME—An antiestablishment movement’s candidate
won the largest share of votes
in the first round of Rome’s
mayoral election, adding to
the advances of populist parties across Europe and posing
a fresh test to Prime Minister
Matteo Renzi’s ruling centerleft party.
The candidate for the upstart, euroskeptic 5 Star
Movement, 37-year-old lawyer
Virginia Raggi, won between
34% and 38% of the vote cast
Sunday in Rome, according to
exit polls. Roberto Giachetti,
the candidate for Mr. Renzi’s
Democratic Party, received between 22% and 26%. If final
data confirm the exit polls, the
two will face a runoff on June
19.
Millions of Italians went to
the polls on Sunday to cast

their votes in local elections
for new mayors and town
councilors in more than 1,300
cities. The elections—held in
some of Italy’s biggest cities—
came at a delicate time for Mr.
Renzi, whose popularity has
sagged amid a timid economic
recovery, a simmering banking
crisis and an uptick in migration flows.
In Milan, exit polls showed
the center-left candidate
Giuseppe Sala leading with between 39% and 43% of the
vote cast, followed by his center-right rival Stefano Parisi at
between 34% and 38%.
But the main battleground
has been Rome, where locals

ALESSANDRO DI MEO/EUROPEAN PRESSPHOTO AGENCY

EUROPE FILE
SIMON NIXON

month that showed that a
net 333,000 people came to
live in the U.K. in the past
year. That is far above the
government’s longstanding
target of fewer than 100,000
and has reinforced anxieties

about EU rules that give every citizen in the bloc the
right to live and work in the
U.K. The Leave campaign’s
claim that a British exit from
the EU, or Brexit, would allow the U.K. to “take back
control” of its borders and
drastically cut migration has
clear appeal for many voters
who fear that excessive migration is putting an intolerable strain on the U.K.’s economic and social fabric.
Whether Brexit would really lead to a substantial fall
in migration is open to question: More than half of recent migrants came from
outside the EU, and the evidence suggests that EU migrants contribute positively
to the economy and tax system. Meanwhile, U.K. unemployment is just 5%, and
there is scant evidence that
EU migrants have depressed
wages. The Leave campaign’s
pledge to restrict total immigration to below 100,000
could only be met by taking
the U.K. out of the EU single
market.
Nonetheless, Mr. Cameron
is vulnerable over migration
in part because he previously promised and failed to
cut immigration below
100,000, then promised and
failed to introduce curbs on

CHRIS LOBINA/AGENCE FRANCE-PRESSE/GETTY IMAGES

Cameron Struggles to Win Hearts on ‘Brexit’

Rome mayoral candidate Virginia Raggi cast her ballot at a polling station in the capital on Sunday.
are seeking new leadership capable of pulling the Italian
capital out of a morass of corruption allegations, disastrous
management and political upheaval. The city has been under special administration
since former Mayor Ignazio
Marino, a fellow member of
Mr. Renzi’s Democratic Party,
resigned in October last year
over accusations of expenses
irregularities.
Widespread disaffection for
traditional parties and the
Italian capital’s seemingly intractable problems have fueled
support for the antiestablishment 5 Star Movement,
founded by comedian-turned-

politician Beppe Grillo.
Mr. Renzi has distanced
himself from a race that has
risked being a debacle for his
party.
In Rome, the Democratic
Party has been weakened by a
string of political scandals and
by a major criminal investigation that uncovered ties between organized crime and
City Hall officials.
If Ms. Raggi wins the second round, her victory would
deal a major blow to the prime
minister, giving the 5 Star

Movement, which has closed
in on the Democratic Party in
recent polls, a major opportunity to prove its ability to gov-

ern. Final results of the elections across the country,
including in Naples and Turin,
are expected to emerge early
Monday.
A poor showing by the
Democratic Party would cast a
shadow over a constitutional
referendum that Mr. Renzi has
called for October.
That vote is on whether to
approve a plan to simplify Italy’s tortuous legislative process, reduce the Senate’s powers and ensure more stable
governments. The prime minister has staked his government on a positive outcome to
the referendum, promising to
resign if it fails.

neighborhood.
He told supporters that he
would await the full count but
added that he was confident
he won. “We are going to govern Peru towards a bright future,” he yelled to supporters
outside his campaign office. “I
love you Peru.”
Ms. Fujimori, who narrowly
lost the 2011 election, said she
was optimistic but looked somber when addressing supporters. “We are going to wait with
prudence because during the

entire night the votes from regions, from abroad and the rural vote from deep Peru are going to arrive,” she said.
The winner will take over
Peru’s government on July 28
from President Ollanta Humala,
who is constitutionally barred
from seeking a second consecutive term.
Both candidates have promised to maintain Peru’s freemarket policies while running
slight fiscal deficits to boost
infrastructure spending and
support economic growth. They
have pledged to reduce poverty
by expanding basic services.
—Ryan Dube

Taliban
Assault
Afghan
Court
BY EHSANULLAH AMIRI
AND JESSICA DONATI
KABUL—Taliban militants
stormed a court in eastern Afghanistan on Sunday, killing
seven people, including the
top provincial prosecutor, officials said—the latest in a series of attacks targeting the
judiciary.
In a separate incident, an
Afghan lawmaker was killed
by a bomb placed outside his
home in Kabul later on Sunday, the interior ministry said.
The Taliban also claimed responsibility for the attack,

which wounded another 11
people in the vicinity.
Also on Sunday, David
Gilkey, a photojournalist with
National Public Radio, and his
Afghan translator were killed
when their vehicle was struck
by shellfire while traveling in
an army convoy in southern
Afghanistan, the news organization said.
Three assailants entered
the appeals court building in
Logar province during a ceremony to introduce the newly
appointed chief prosecutor
and shot at people in the hall,
said Saleem Saleh, the governor’s spokesman. Ten people,
including the three attackers,
were killed and 23 were
wounded in the hourlong siege
that followed, he said.
Afghan security forces who
were deployed to rescue
trapped workers and flush out
the
attackers
eventually
gunned down the militants before they could detonate explosive vests, local officials said.
The Taliban claimed responsibility and said the attack was launched to avenge
the deaths of six Taliban prisoners in May.
The Taliban have long targeted lawyers and judges who

are seen to be responsible for
imprisoning their fighters. But
in recent weeks, they have escalated attacks against court
workers to avenge the hanging
of the Taliban prisoners.
The six prisoners, who had
been on death row for years,
were executed after a truckbomb attack in Kabul killed
more than 60 people and
wounded hundreds in April.
The prisoners themselves
hadn’t been involved in the incident, and human-rights
groups criticized the hangings.
Since then, the Taliban have
made the Afghan judiciary offices one of their main targets.
In late May, a suicide bomber
killed 10 people in an attack
on a minibus carrying workers
to a court in Wardak province,
west of Kabul. A week later,
Taliban insurgents wearing
suicide vests attacked a provincial court in Ghazni province, killing six people and
wounding more than a dozen.
Fears of an escalation in
Taliban attacks on government
targets have risen since the insurgent group’s leader, Mullah
Akhtar Mansour, was killed by a
U.S. drone strike in southwest
Pakistan in May. Maulavi Haibatullah, a religious leader, was
named to succeed him.

THE WALL STREET JOURNAL.

Monday, June 6, 2016 | A13

* * * *

WORLD NEWS

Militants Find Common Ground in Sinai
Islamic State affiliate
in Egypt has forged
ties with Hamas,
according to officials

The rise of an Islamic State
affiliate in Egypt is altering
the security landscape in a
critical corner of the Middle
East, according to Israeli and
Western officials.

Militants with Sinai Province, which has pledged allegiance to the extremist group,
have developed ties with the
Palestinian movement Hamas
that rules the neighboring
Gaza Strip, the officials said—
despite deep ideological differences between the two Islamist groups.
The ties include help with

smuggling and medical care,
they said. Officials in Israel,
which has likened Hamas to
Islamic State, said the cooperation has also extended to military training. Hamas officials
denied any involvement with
Sinai Province.
Egypt’s and Israel’s shared
concern about Sinai Province’s
growing threat is spurring
deeper security cooperation,
according to the officials. Israel,
for example, has let Egypt bring
more sophisticated weapons
into its restive Sinai Peninsula
than allowed under their 1979
peace treaty, in a bid to help
counter the group, they said.
“The relationship has probably never been stronger in
terms of assistance in military
operations to attack ISIS in Si-

KHALIL HAMRA/ASSOCIATED PRESS

By Rory Jones in
Rafah, Gaza Strip, and
Tamer El-Ghobashy
in Cairo

Hamas forces in the Gaza Strip, near the Egypt border in April. Hamas officials deny involvement with the local Islamic State affiliate.
nai,” Rep. Michael McCaul,

chairman of the House Committee on Homeland Security,
said after meetings with Egyptian President Abdel Fattah Al
Sisi and other officials in
Cairo recently. ISIS is another
name for Islamic State.
The developments show
that Islamic State is able to
build relationships and shape
events far afield, just as the
attacks in Brussels and Paris
linked to the group demonstrated its lethal reach.
Sinai Province was created
by up to 1,000 jihadists with a
group previously known as Ansar Beit al-Maqdis that pledged
allegiance to Islamic State in
November 2014. The group,

based in Sinai, has launched
deadly attacks in Egypt.
The group is in contact with
Islamic State’s leadership,
which helps fund the affiliate
and promote it through Islamic
State’s social-media network,
according to Israeli officials,
Egyptian security officials and
independent researchers.
Sinai Province and Hamas
are both Sunni Muslim-led
groups, but Hamas doesn’t

share the same strict interpretation of Islam.
Sinai Province operates in
territory where the entrances
of smuggling tunnels that lead
to Gaza are located, according
to smugglers and diggers who
work on tunnels. That has led

to a pragmatic arrangement
between Sinai Province and
Hamas, according to Israeli
and Western officials. Egypt’s
defense and interior ministries
have said the ties between the
two groups have included coordination on attacks in north
Sinai. Spokesmen for the ministries didn’t comment.
Egypt shared intelligence
with Israel last year about cooperation between Sinai Province and members of Hamas’s
armed wing, the Izz al-Din alQassam Brigades, according to
a Western official. Israel was
surprised to learn of the ties
given clashes in Gaza between
Hamas and Islamic State sympathizers, the official said.

Canada Debates Right-to-Die Limits
OTTAWA—A political stalemate over right-to-die legislation is stirring legal questions
about who can seek a doctor’s
help to die and under what
conditions doctor-assisted suicide is lawful in Canada.
A 2015 Supreme Court of

Canada ruling decriminalizing
doctor-assisted suicide will
take effect Tuesday, giving Canadians who have “grievous
and irremediable” conditions
the constitutional right to seek
a physician’s help to die. The
ruling had been suspended to
give lawmakers time to craft
legislation defining who fits
the court’s criteria.
But while Prime Minister
Justin Trudeau’s government
introduced legislation in April,
its bill has yet to be approved.
The proposed law would
narrow the criteria to restrict
physician-assisted suicide to
those with a terminal disease
or to when death is “reasonably foreseeable.”

OIL
Continued from Page One
nies for profit. Pipelines have
also been sawed open by oil
thieves, seeking to siphon off
their valuable content.
The Avengers seem to be
more interested in undermining the administration of President Muhammadu Buhari, security
consultants
and

government officials say. They
say they are frustrated by the
lack of information about who
the Avengers are.
Mr. Buhari, a former military
dictator from Nigeria’s north
who was elected last year, is
unpopular in much of the country’s south: He received just 13%
of the vote in the Niger Delta.
“It is different this time,”
said Dolapo Oni, oil and gas analyst for Togo-based Ecobank
Transnational Inc. “These guys
are not stealing crude. They
just bomb the pipelines and
they run away. They just want
to destroy.”
With near-weekly attacks
that began in February, the militants have taken about one
million barrels of oil a day out
of production, according to Nigerian oil officials. The attacks
have intensified in recent
weeks.
The lost production helped
push crude prices above $50 a
barrel recently for the first time
since November. Roughly 96
million barrels of crude are produced globally every day, but
supply exceeded demand by

Since the Supreme Court

ruling is taking effect before
the legislation, medical professionals and legal experts say
health-care providers and patients are entering an unusual
gray zone.
“Canada will become the
most liberal country in the
world with respect to deathhastening policies” in the absence of legislation, said Harvey Chochinov, a palliativecare expert at the University
of Manitoba in Winnipeg. Dr.
Chochinov, a critic of having
no law in place to govern doctor-assisted death, last year
led a government panel on addressing right-to-die policy.
The proposed legislation,
which has been passed by Parliament’s lower house and is
now being debated in the Senate, is similar to laws in some
U.S. states with right-to-die
regimes, such as Oregon and
California.
To avoid so-called suicide
tourism, it limits doctor-assisted suicide to people who
around 1.4 million barrels a day
in the first quarter, according to
the
International
Energy
Agency, which monitors energy
trends for industrialized countries, so the lost Nigerian production is almost as large as
the excess daily output that has
weighed down prices.
“It is clearly having a material impact,” said James Davis,
head of oil supply at consultancy Facts Global Energy.

A few months ago, oil prices
lingered at a 13-year-low. Goldman Sachs Group Inc. analysts
predicted late last year that oil
could fall as low as $20 a barrel. Instead, a series of disruptions—including a worker’s
strike in Kuwait, a blockade in
Libya, and wildfires in Canada—have pushed prices up.
Nigeria’s government has
publicly asked the Avengers to
negotiate: “This government is
a listening government,” said
Lai Mohammed, Nigeria’s information minister.
The Avengers have responded with a mix of threats,
steep demands—such as redistribution of oil rights to local
residents—and more attacks.
The group has sabotaged at
least 10 oil installations in the
past month. It didn’t respond to
several emailed requests for an
interview.
“To the International Oil
Companies and Indigenous Oil
Companies, it’s going to be
bloody,” the Avengers said in an
online statement. “Your facilities and personnel will bear the
brunt of our fury.”
Since the 1990s, Nigeria’s

are eligible for governmentfunded health services in Canada.
Some senators oppose limiting doctor-assisted suicide to
those with terminal illnesses

and say that limit contravenes
the Supreme Court ruling.
That debate is part of what is
holding up passage of the law.

Citizens with
‘grievous’ conditions
can seek a doctor’s
help as of Tuesday.
Justice Minister Jody Wilson-Raybould told senators in
testimony last week that without legislation, there would be
a legal vacuum that would act
as a barrier to right-to-die services, since some doctors
might shy away from acting.
A national physicians’
group echoed that concern.
“Physicians across the country
remain uncertain, and in that

climate of uncertainty Canadians will be left to languish—
exactly what the Supreme
Court of Canada ruling sought
to avoid,” said Cindy Forbes,
president of the Canadian
Medical Association.
It is unclear when both
chambers of Parliament will
agree on legislation. The Senate is expected to hold a final
vote this week. Should the upper chamber make amendments, the legislation would
head back to the lower house

for a new round of debate.
Anticipating the risk that
legislation wouldn’t be ready,
regional medical authorities
have issued guidelines to doctors that they say are in accord with the Supreme Court’s
ruling. But Ms. Wilson-Raybould, along with some medical experts, warn that this
won’t be enough because the
protocols fail to impose limits
on who can seek a doctor’s
help to die.
—Kim Mackrael
contributed to this article.

POLAND

World
Watch

Party Chief Rejects
Criticism Amid Crisis

The leader of Poland’s governing party, Jaroslaw Kaczynski, said
he would resist pressure from foreign governments and international organizations to end the
country’s constitutional crisis on
the opposition’s terms, as protests were held against his government.
Mr. Kaczynski blamed his opponents for a crisis over judicial
appointments and rules governing
the constitutional court. His socially conservative Law and Justice party’s government has been
in conflict with the court since it
canceled predecessors’ nominations of judges and rewrote rules

governing the court’s work last
year. The court’s chairman rejected most of those changes.
Each side has accused the other
of overreaching.
The spat has led to tensions
with the European Commission,
which last week said the government’s agenda for the court poses
a systemic threat to the rule of
law, and triggered a legal process
that could end in sanctions.
—Martin M. Sobczyk

FRANCE

Falling Water Levels
Raise Hopes in Paris

Water levels on the Seine
River fell significantly after several days without rain in the
French capital region, lifting
hopes that the risk of major
flooding within Paris had passed.
French officials were still
grappling with the consequences
of severe flooding in the region
around Paris, including weakened
dikes and pollution dislodged by
the overflowing Seine.
The river fell to 18.5 feet by
Sunday evening in Paris, French

officials said. It had peaked early
Saturday morning at more than
20 feet.
A government spokesman
said the death toll over the
weekend from the flooding had
risen to four.
—Matthew Dalton

Falling Output
Nigerian oil production, in barrels
per day, monthly average.
Officials say it fell sharply in May.
2.0 million barrels

April
1.6M

1.5
1.0
0.5
GEORGE OSODI/BLOOMBERG NEWS

BY PAUL VIEIRA

Israeli officials said they
learned in April of 2015 that
Hamas was allowing Sinai
Province fighters to be treated
in Gaza’s Al Shifa hospital. The

hospital declined to comment.
Later last year, Hamas operatives spent a month in the
Sinai region teaching the militants how to fire antitank missiles, Israeli officials said. The
officials declined to provide
more details. Hamas subsequently received Russian-made
antitank missiles via the
smuggling network Sinai Province controls, an Israeli defense official said.
Hamas officials have been
meeting with Egyptian officials
to improve ties and attempt to

open the border crossing from
Egypt in Gaza. Earlier this
year, Hamas stepped up patrols along Gaza’s border with
Egypt, a move it said was
meant to assure its powerful
neighbor it isn’t working with
militants in Sinai.
“We have nothing to do with
Egypt,” Ghazi Hamad, a senior
Hamas leader, said recently, referring to Sinai Province and
Egypt’s claims that Hamas has
planned attacks there.
Attacks by Sinai Province
have led Egypt to retaliate. In
March, Egyptian authorities
said a mortar attack on a
checkpoint near the city of elArish in Sinai had killed 13 policemen. Sinai Province claimed
responsibility.
In subsequent days, Egyptian jets, helicopters and artillery attacked targets near the

border with Gaza, according to
the Levantine Group, a consultancy on regional security affairs, a sign of the weaponry Israel is allowing Egyptians to
use in Sinai.
Israeli Prime Minister Benjamin Netanyahu has said that
both Hamas and Islamic State
are driven by extremism and a
desire to expand beyond the
territory they control.
But Sinai Province and
Hamas don’t share political or
military goals, according to officials and independent researchers.
People familiar with the
smuggling operations say the
links are important to Hamas.
“Hamas needs this relationship with [Islamic State] for
sure,” said a cigarette smuggler
who goes by the nom de guerre
of Abu Abd. “If the Egyptian
army won’t allow you to get
things in, it makes sense to
have a relationship with ISIS.”

A fish farmer in January stands in mud polluted by oil in his fish ponds in Nigeria.
government has been at odds
with the residents of the Niger
Delta,
the
Portugal-sized
swamp where almost all of the
country’s oil lies. Decades of oil

spills and a prevailing sentiment that the country’s vast
petroleum wealth has enriched
only a few have pushed locals
to bomb pipelines, kidnap oil
workers, and steal oil.
But until recently, Nigeria
has been able to exercise some
basic level of control. Since
2009, the government has paid
militants to stay out of trouble.
It has also hired thousands of
militants to protect the pipelines they used to bomb and
hacksaw open.

The attacks come at a perilous moment for the nation of
187 million. Even before the
Avengers arrived on the scene,
Nigeria’s government was running low on money. The country’s reserves have plummeted
so precipitously that the central
bank has rationed access to foreign currency since last year,
forcing businesses to shut down
because they can’t get the dollars they need to import spare
parts or repay foreign lenders.
The economy contracted by
0.36% in the first three months
of this year. It is now headed
into an “imminent” recession,
Godwin Emefiele, governor of
the central bank, said in May.

Nigeria’s government says it
is working as quickly as it can
to repair the damage the
Avengers have done. To win
support, Mr. Buhari has ordered
a clean up operation there. Decades of oil spills have left the
water so polluted that a United
Nations report estimated a full
cleanup would take 30 years.
The military is also sending
more troops into the swamps,
even as it battles the insurgency Boko Haram in the north.
To secure oil infrastructure,
the army recently moved a
group of U.S.-trained troops
from the front against Boko
Haram. It has also used surveillance planes to try to peer into

0
2015

’16

Source: International Energy Agency

THE WALL STREET JOURNAL.

the thick mangrove forests and
find the Avengers’ camps.
“The military will continue

to do its best,” said Rabe
Abubakar, spokesman for Nigeria’s Defense Ministry.
In May, the military posted
troops around one of Chevron
Corp.’s oil storage depots. For
three days, the Avengers had
been vowing to attack it. But instead of storming the depot,
the militants bombed a nearby
gas pipeline. Hours later, the
militants bombed a pair of
crude pipelines supplying
nearby refineries.
“They knew exactly where to
attack and the time to attack,”
said Mr. Oni, the oil analyst.
“There was literally nothing
you could do.”
—Gbenga Akingbule
in Abuja, Nigeria,
contributed to this article.


A14 | Monday, June 6, 2016

THE WALL STREET JOURNAL.

* *

FROM PAGE ONE

CHEAT

Foreign Shores
Country of citizenship for
the 586,208 international
undergraduate students in
the U.S., 2015-16 school year
Saudi Arabia 8%

South Korea 9%

Vietnam
4%
India
4%
Canada
3%

China
28%

All others
44%

Source: Student and Exchange Visitor
Program, Department of Homeland Security

THE WALL STREET JOURNAL.

DIVE

Continued from Page One
the front row. It’s who those
players were.
In a Warriors playoff game
last month, Golden State’s Stephen Curry, one of the NBA’s
biggest stars, launched himself
at and then over the fans between the visiting team’s bench
and the scorer’s table.
Even though Mr. Curry is a
somewhat manageable 6-foot-3
and 185 pounds, which is small
by NBA standards, no one tried
to catch him or help cushion his
fall. Mr. Curry crashed into a
metal island between the padded courtside seats and the
arena’s lower bowl. He laid
groaning on the floor for several anxious seconds before
peeling himself up with an elbow that suddenly looked like a
misshapen potato.
Mr. Curry’s hustle play was
immediately passed along on
social media, and there was
soon a storm of criticism directed at the fans in the front
rows who had parted like the
Red Sea.
There was even more outrage when the television replay
showed a Warriors fan named

and rammed directly into Ellie
Day, who is the wife of professional golfer Jason Day.

Ms. Day was taken from her
seat in a stretcher and briefly
hospitalized. She later said on
Twitter that being tackled by
Mr. James was the equivalent of
a minor automobile accident.
“Much like attending a golf
event and risking getting hit
with a ball,” she said, “sitting
courtside you risk getting run
into.”
Mr. James apologized and
said he hoped Ms. Day would
come to another game soon.
“It’s unfortunate it happened
tonight,” he said that night,
“but that doesn’t happen
much.”
To be fair to the fans, there
isn’t much time for etiquette
when an NBA player is bumrushing you. “I don’t blame
them,” Mr. Curry said after the
incident. “I wanted to do a
crowd-surfing kind of deal, like
at a concert, but they weren’t
ready.”
Warriors and Cavaliers players say that if a teammate came
roaring toward them on the
bench, they would try to break
his fall. The calculus is trickier

for players on the other team.
“If it’s somebody I like,” said
Warriors forward Marreese

Speights, “I probably would.”
Nevertheless, there are times
when sacrificing your body to
save a teammate’s doesn’t make
sense. Warriors radio analyst
Tom Tolbert once played in the
NBA with the 7-foot-1, 325pound Shaquille O’Neal. When
Mr. O’Neal came rumbling toward the team bench, Mr. Tolbert remembered, he wouldn’t
even consider slowing him
down.
“There was no way in hell,”
Mr. Tolbert said on his radio
show. “I would’ve been a grease
spot on the ground.”
Mr. O’Neal, a four-time NBA
champion who was one of the
largest players in NBA history,
said courtside collisions were
never far from his mind. He estimated he laid out for loose
balls more than 20 times in his
career, beginning in college,
when his coach threatened to
punish him if he didn’t.
Over time, Mr. O’Neal
learned how to aim himself
while in the air. “If it was ladies

and babies,” he said, “I had to
angle so I wouldn’t hurt anybody.”
In his entire career, he said,
there was only one crash with a
woman, which he immediately
attempted to remedy. “I gave
her a kiss,” Mr. O’Neal said.

KEVIN D. LILES FOR THE WALL STREET JOURNAL

students have been sent letters
explaining what offenses can result in expulsion.
One method used by stand-in
test-takers was uncovered at UC
Irvine. Imposters would report
losing their university ID cards.
The bookstore would issue new
ones bearing the impostor’s picture, but carrying the name of
the student for whom a test was
to be taken. The system was
used mainly by Chinese students, faculty members said.
A spokeswoman for UC Irvine
said it didn’t know how many
students were involved in the
scheme and declined to say how
they were disciplined. She said
campus police have helped develop a system to thwart the IDcard trick.
Adele Barker, a professor in
the Department of Russian and
Slavic Studies at the University

of Arizona, said frequently a
cluster of four or five Chinese
students sitting near one another during a test all provide
the same version of a wrong answer.
The influx of Chinese students with weak English-language skills has grown “exponentially,” she said. “Their
comprehension is so bad the
cheating is a nonevent. And I
can tell you everyone is dealing
with this, across disciplines,
across universities.”

Georgia Tech students Armaan Mehta, in blue shirt, and Lanqing Wang, in tank top, criticized the cheating they see by international students.
pass the test. That is kind of a
cultural thing.”
Ms. Shi said her association
plans to launch a social-media
campaign to tackle the problem
next fall.

Foreign surge
Both private and public U.S.
universities have welcomed a
surge in foreign students, who
often pay two to three times the
tuition and fees of others, partly
because of special programs for
them. At many public universities, their payments help compensate for shrinking state subsidies.
Sanctions for cheating can
range from an F on an assignment to suspension or expulsion. At the University of Arizona, which recorded over 11
reports of alleged cheating for

each 100 foreign undergraduate
students in the 2014-15 school
year (and 1.8 per 100 domestic
undergrads), no student was expelled that year and just two
suspended, according to the university.
“I can assure you that somewhere someone at the university
is doing a calculus about how
much tuition they would lose if
they start coming down hard on
students who cheat,” said Ms.
Mitchneck, the geography professor.
Asked about that, Lynn Nadel
a leader of the faculty senate,
said it is true the university’s
business model “is somewhat
dependent on out-of-state students, and it’s an acknowledged
fact that we depend on them to
cover our costs. But the next
step, that therefore we should
treat them with kid gloves, has
never come before me or even
been uttered in my presence.”
Academic dishonesty is an issue on campus without regard
to students’ origins. About 60%
of all students on U.S. campuses
admit they cheated at least once
in the last year, according to
Teddi Fishman, director of the
International Center for Academic Integrity, a nonprofit
with offices at Clemson University. She said that level has remained steady for 23 years.

Most of this cheating never
leads to a formal complaint, the
Journal’s analysis shows.
The especially high rate of
cheating reported for international students fuels faculty concerns about a cheapening of
schools’ diplomas. “If the integrity of the degrees they are
earning is undermined, that
Danny Katz reaching for his
camera and snapping a picture
of the NBA’s Most Valuable
Player in distress. Mr. Katz, a
former hedge-fund manager,
has been attending Golden State
games for more than 20 years,
but he’s also a sports blogger
and photo journalist, he said, so
his first instinct was to grab the
camera to record the scene.
“Twitter was all over me,” he
said. “It’s not something I’d
wish on anybody.”
Mr. Katz said he reached out
with an apology. “The last thing
I’d want to do is disrespect you
and the Warriors in any way,”
he wrote to Mr. Curry.
Sitting nearby that night was
Dave Scially, who had a special
incentive to secure Mr. Curry:
He’s a partial owner of the Warriors. Mr. Scially bumped into

Mr. Curry at a team dinner after
the incident and told him that
when Mr. Curry hit the wall of
fans, he had actually planted his
foot on Mr. Scially’s wife, Kathy,
and used her as a vault to propel himself over the first row
and into the void on the floor.
Mr. Scially said Mr. Curry
sought her out before one of the
Warriors’ next games, said he
was sorry for scaring her and
gave her a hug. “You’re so
sweet,” she told him.

market could also be undermined,” said Ms. Fishman.
Some universities work
harder than others to monitor
cheating, which could affect
where they stood in the Journal’s analysis. UC San Diego,
which had one of the higher
cheating-allegation rates for international students, also has an
especially robust effort to track
infractions, led by Tricia Bertram Gallant, its academic-integrity director.
“We decided to admit more
international students in response to a decrease in public
funding without consideration
of extra socialization they might
need to adapt to the new academic culture,” Ms. Bertram
Gallant said. Schools are still
“playing catch-up.”

At Purdue University, David
Sanders, a leader of the university senate, recently had the
task of reading 4,000 essays
from applicants and said he
found the obvious copying
among Chinese students, in particular, mind-numbing.
“I can’t tell you how many
times I read an essay that
started, ‘The 20th century was
the century of physics and the
21st century will be the century
of life sciences.’ I read that same
phrase over and over and over
again,” he said.
Ms. Fan of the Chinese students association at UC Davis
said there was a “concept difference” in how Americans and
Chinese “define cheating.” She
said it is common for Chinese
students to collaborate on assignments.
A spokesman for Purdue,
Brian Zink, said the school
stresses academic integrity at
freshman orientation, “and we
don’t accept ‘cultural confusion’
as an excuse for dishonesty.”
It is possible that cheating is
more likely to be caught when a
student is foreign, said Ms. Fishman of the academic integrity
center. A student who can barely
speak English but hands in a

skillfully written English-language paper would draw attention, she noted. And instructors,
once having perceived a cheating issue among foreign students, might scrutinize their
work more closely.
Still, Ms. Fishman said, there
is a profile of a certain kind of
student more likely to cheat: a
youth who faces a high-stakes
test, feels unprepared for it, and
believes that others are cheating
anyway. A relatively high percentage of foreign students, es-

Gaming the System
Reports of cheating were more frequent for international students
than for domestic students at 14 large public universities that
provided The Wall Street Journal with data.
Reports of cheating per 100 students
Domestic students

International students
0 per 100 students 5

Univ. Calif., Davis

6.0

0.7

Cal State-Fullerton

5.8

0.5

Purdue

4.0

1.0 3.9

UCLA

1.3

Iowa State

Total

8.5

1.1

Univ. of Minnesota

Florida International

11.2

1.8

UC, Irvine

Univ. of Houston

11.2

1.5

UC, San Diego

Univ. of Washington

3.1

0.5

2.8

0.9

2.3
2.0

0.4

1.6

0.8
0.4

0.5

1.0

5.1
THE WALL STREET JOURNAL.

Source: WSJ analysis of schools’ records

pecially those with poor language skills, fit this description,
she said.
They often are targeted by
entrepreneurs offering to sell
custom-written research papers.
Other opportunists offer the
services of professional test takers.

Guaranteed ‘A’
Last year, Ohio State learned
that a Chinese student had been
advertising on a Chinese message board that he could guarantee an A on a test by taking it
in someone’s place. His price
was around $500 per test, said
Kim Arcoleo, associate dean for
transdisciplinary scholarship.
Ohio State has so far
found more than 30 Chinese
students who made use of the
scheme, she said, with the investigation still under way.
“The cheating isn’t limited to
Chinese students, but we see a
disproportionate amount coming from international students,” Ms. Arcoleo said.

The University of Iowa is investigating at least 30 students
suspected of paying professional
test takers to take online exams
in their place, the school says.
Some of the suspected impersonators took the online tests in
China, said one person familiar
with the matter. Some of the

Golden State Warriors’ Stephen Curry in Oakland, Calif., last month.
Mr. Curry’s wreck turned
into a referendum on fan behavior, said Brian Murphy, co-host
of a sports show on KNBR, a
San Francisco radio station.
There was even some class warfare in blaming Mr. Curry’s spill
on the people who paid small
fortunes for courtside spots.
“It was an easy way to go
Bernie Sanders on the 1-percenters,” Mr. Murphy said.
The consensus among his
show’s listeners was overwhelming: They said fans in
those seats have a responsibility
to break a player’s fall—especially if that player is Mr. Curry.
“There was much scolding

11.8

1.8

Georgia Tech

North Carolina State

10

2.6

Univ. of Arizona

JEFF CHIU/ASSOCIATED PRESS

Continued from Page One
of nearly 50,000 each and India
of about 23,500.
Faculty and domestic students interviewed said it appears that substantial numbers
of international students either
don’t comprehend or don’t accept U.S. standards of academic
integrity.
At the University of Arizona,
the staff works hard to explain
academic integrity to those from
abroad, but “our students don’t
always understand what plagiarism is,” said Chrissy Lieberman,
associate dean of students.
Citing the Freedom of Information Act, the Journal asked
50 public universities with large
foreign enrollments how many
reports of alleged academic-integrity violations they recorded
for international undergraduates
and how many involving U.S. undergraduates.
Many of the schools said they

didn’t have such information or
it would be too onerous to track
down. Fourteen provided the
full records sought, for the
2014-15 academic year.
At nearly all that provided
data, the rate of such cheating
reports was at least twice as
high for foreign as for domestic
students, ranging up to over
eight times as high.
Universities don’t all define
and track cheating reports exactly the same way. Most record
the number of incidents, but
some record the number of students involved. The Journal’s
analysis tabulated cheating reports as the universities defined
them. It didn’t delve into how
the cases were resolved.
Lanqing Wang, a Georgia Institute of Technology electricalengineering student from
Shanghai, who is distressed by
the cheating he sees, said, “In
China, it’s OK to cheat as long as
you’re not caught.”
Paidi Shi, vice president of
the Chinese Students and Scholars Association at the University
of California, San Diego, disagreed that it was all right to
cheat in her home country but
said, “In China, our culture puts
a lot of pressure on students.
We are more likely to find a

shortcut to get a good grade.”
Qingwen Fan, president of
the Chinese Students and Scholars Association at the University
of California, Davis, said some
students in China get burned
out by cramming in high school,
and when they get to college
“they want to enjoy life. They
are busy with social stuff and
everything they missed before.
They start to cheat. They didn’t
put in the time but they want to

Stacey Hancock, a statistics
professor at UC Irvine, said a
large portion of faculty time is
spent trying to ensure academic
honesty. She uses randomized
seating and four different versions of a test in an effort to deter copying from someone sitting nearby.
Many professors spell out in
a course syllabus what constitutes cheating, lest there be any
doubt. Ms. Arcoleo of Ohio State
devotes three pages of the syllabus to this.
At Georgia Tech, the honor
code is emblazoned on plaques
outside classrooms. Armaan
Mehta, an American student
there majoring in computer engineering, showed a note on one
assignment stating that “you
should design, implement and

test your own code,” and that
not doing so “constitutes academic misconduct.”
Despite the warning, he saw
“ridiculous amounts of cheating” among Indian and Chinese
students, Mr. Mehta said, sitting
in Georgia Tech’s futuristic
Clough Commons building.
A spokesman for Georgia
Tech said it works diligently to
make sure students know its
policies and the consequences of
a violation.
Suspension or expulsion for
cheating is a risk for those from
abroad. Their student visas can
be revoked if they aren’t registered at a U.S. college.
“I have had students sobbing
in my office, saying their family
has done everything to get them
here and pleading for mercy,”
said Melissa Famulari, vice chair
for undergraduate education in
UC San Diego’s economics department.
Mr. Sanders of Purdue said
confronting a cheater is “incredibly unpleasant for everyone
concerned. All of the institutional incentives, at multiple
levels, are against catching and
prosecuting cheaters.”
Expulsion can be a business
opportunity for Andrew Hang

Chen, a Pittsburgh-based consultant who places Chinese students in U.S. colleges. If a foreign student is in danger of
losing a visa, he can assist.
His company, WholeRen Education, charges $4,000 to help a
student transfer to another U.S.
school. The stakes are high because experience shows if a student has to return to China, he
or she likely won’t ever go back
to college.
“We have to act very, very
quickly” to transfer the student
to another U.S. college, Mr. Chen
said. “When we get a call, we
are counting by the hour.”
Last year, he said, a Chinese
student at a large public university in New York sold test answers to a classmate for $2,000.
Both had to leave the school. Mr.
Chen said he got both into a U.S.
community college, which they
attended for a year and half before being allowed to return to
the large university.
Though many colleges include explanations of academic
integrity in orientation for international students, the lessons
often don’t sink in, said Wenhua
Wu, a 21-year-old Chinese economics major at the University
of Pittsburgh.
Over time, Chinese students
come to understand what constitutes cheating, Mr. Wu said,
but many do it anyway.
“They do it for better
grades,” he said. “Most of them
don’t get caught.”

—Andrea Fuller
contributed to this article.

and tsk-tsking from those of us
not in those seats,” Mr. Murphy
said. “Everybody’s a hero until
they’re in the fox hole.”
Basketball is the only major
sport with an imaginary boundary between the court and the
crowd. In baseball, there is a
wall. In basketball, there is
paint. Ticket-holders assume
the risk of personal injury when
they attend NBA games.
In another incident, the
other megastar of the Finals,
Cleveland’s LeBron James,
showed why such warnings are
necessary. In December, Mr.
James had his own crash when
he failed to hurdle the front row


THE WALL STREET JOURNAL.

Monday, June 6, 2016 | A15

* * * *

OPINION

Peter Thiel’s Legal Smackdown

With Gawker under
attack, the press wakes
up to a justice system
that invites abuses.
as gay in 2007. Mr. Thiel defends his actions as “less
about revenge and more about
specific deterrence.” Gawker,
he argues, plays a “uniquely
degrading role in our culture.”
Mr. Thiel, himself a Stanford-trained lawyer, was smart
enough to take advantage of a
radical change in the U.S. legal
system. He paid the lawyers
representing
professional
wrestler Hulk Hogan, who
sued for invasion of privacy
after Gawker disseminated an
explicit video of the plaintiff
and another man’s wife.
Until recently Mr. Thiel’s

will be used not just against
the originally contemplated
targets, such as large business
or government defendants,
but against a wide range of
others—journalistic defendants included.”

The effect is compounded
by American juries’ tendency
to award huge sums in damages—$140 million in Mr. Hogan’s case. Contrast that with
the £60,000 ($80,000) England’s High Court in 2008
awarded Max Mosley, the 76year-old son of British Fascist
Oswald Mosley, when a British
tabloid published video and
photos of what it called “a
sick Nazi orgy” he had organized. Mr. Mosley, who had
run the Formula One car-racing organization, won a privacy judgment when the judge
ruled there was no Nazi
theme, only “bondage, beating
and domination,” which was
not a matter of public interest.
Even without the enormous
award—even if all the plaintiffs he solicited and funded
lost every case—Mr. Thiel
could have sued Gawker out of
business. In almost all other
countries, losing litigants
cover the winning party’s legal bills, but in the U.S., successful defendants must pay
their own lawyers. The costs
to Gawker of a few lawsuits
would eventually have depleted the online publisher’s
modest assets.
The Constitution usually
shields journalists from litigation, but that immunity too
often blinds the news industry
to abuses in the legal system.
The Gawker case’s lesson for

journalists isn’t that they deserve protections beyond the
First Amendment, but that
they should do a better job reporting the abuses committed
through a legal system that
makes it so easy to achieve injustice.

BLOOMBERG NEWS

A Silicon
Valley
billionaire’s dec a d e l o n g
INFORMATION m i s s i o n
to drive a
AGE
snarky
By L. Gordon
website
Crovitz
out
of
business
has the media up in arms:
What happens to freedom of
the press if wealthy people
can fund lawsuits to bankrupt
media outlets they don’t like?
Good question. Here’s a
better one: Why did it take so
long for journalists to discover
abuses of the legal system

that torment every other industry?
Media commentators have
almost universally condemned
Peter Thiel, a PayPal cofounder and early investor in
Facebook, for how he went after Gawker, which outed him

The Silicon Valley investor in San Francisco in April.
backing would have been a
crime, known as “maintenance” and dating from 13thcentury English statutes
aimed at preventing feudal
lords from interfering with
the legal process. English jurist William Blackstone defined maintenance as “officious intermeddling in a suit
that no way belongs to one”
and characterized it an “offense against public justice, as
it keeps alive strife and contention and perverts the remedial process of the law into
an engine of oppression.” But
laws against maintenance, as
well as the related offenses of
“champerty” and “barratry,”
were repealed in most U.S.
states in the 1960s, when lawyers persuaded policy makers
that funding to encourage
more litigation was good for
society.
It was long understood why
only parties to a lawsuit
should have an interest in it:
The wealthy could influence
others’ cases, outside funding
would encourage “vexatious”

litigation, and conflicts in interest between funders and
litigants would corrupt the legal process. Example: Mr. Hogan’s lawyers excluded a claim
that would have activated
Gawker’s insurance to pay its

fees and damages, and they
rejected settlement offers. It
looks as if the lawyers’ primary loyalty was to Mr. Thiel,
who signed their checks, not
to their client.
Litigation finance quickly
became a huge business, funding everything from mass tort
claims by plaintiff lawyers to
endless lawsuits by patent
trolls against technology companies. Outside investors
bankrolled the multibilliondollar case brought by Ecuadorians against Chevron that
resulted in the plaintiff lawyer
being convicted of fraud and
racketeering.
Walter Olson, author of
“The Litigation Explosion”
(1991), explained in his Overlawyered.com blog that Mr.
Thiel’s approach was predictable after maintenance “metamorphosed around the 1960s
into what we now know as the
public interest litigation
model: foundation or wealthy
individual A pays B to sue C.
Since litigation during this period was being re-conceived as
something socially productive
and beneficial, what could be

more philanthropic and public-spirited than to pay for
there to be more of it?”
With maintenance decriminalized, Mr. Olson warns, “It

A Close Race in Pro-Growth Peru
Banker-businessman and
former
Finance Minister
Pedro Pablo
Kuczynski was
AMERICAS leading Keiko
Fujimori,
By Mary
daughter of
Anastasia
former PeruO’Grady
vian President
Alberto Fujimori, in Peru’s runoff presidential election on Sunday as
we went to press. But his lead
was within the 2% margin of
error, making the race too
close to call.
Even before polls opened,
the election was already notable for April’s first-round results. In that balloting, voters
rejected Verónika Mendoza,
the candidate for the leftwing Broad Front party who
promised hard-core socialism
as a cure for poverty. Both
runoff candidates were center-right advocates of the
country’s

market-friendly,
pro-development path of the
past two decades.
Yet there also were real
differences between the two
candidates and, amid the rising expectations of the burgeoning middle-class, a Kuczynski victory could have
important implications for
stability and growth.
Plenty of festering sores in
Peru’s political economy need
attention if popular support
for liberal economics is to be
maintained. The state is notoriously corrupt. Too much
government has pushed most
economic activity underground, limiting access to
credit, and violent crime is increasing. Mr. Kuczynski’s prescriptions for reducing the
large informal economy and

upgrading the quality of the
judiciary and police diverged
significantly from Ms. Fujimori’s right-wing national
populism, which included a
call to expand the role of the
state-owned oil company.
Peru stands out for its adherence over the past 15 years
to democratic capitalism, during a time when the authoritarianism of chavismo emanating from Venezuela gained
ground in neighboring countries. Even the 2011 election
of Ollanta Humala—an ally of
Venezuelan President Hugo
Chávez who died in 2013—

didn’t derail Peru’s capitalist
revolution.
The economy grew at a
compounded annual rate of
5% from 1999 through 2008.
Over the same period exports
went up by a factor of seven.
Strong commodity prices
helped. But Peru also did its
structural homework.
A vibrant mining sector, financed by foreign investors,
was allowed to flourish alongside the trade liberalization
begun in the 1990s, which
ended protectionism for domestic producers. Access to
foreign exchange and imports
gave Peruvian entrepreneurs
the tools they needed to compete globally. In the years
since the global financial
crisis and the slowdown of the
Chinese economy Peru has
been among the region’s best
performers with a compounded annual rate of growth
of 4.7% from 2009 through
2015.
Another Peruvian achievement since Mr. Fujimori left
office in 2000—after he tried
to run for a constitutionally
forbidden additional term and
was blocked—is that no presi-

dent has tried to stick around
beyond his term limit. Mr. Fujimori was popular because he
stabilized a country brought
to the brink by hyperinflation
and terrorism. But with the
backing of the left—which
never forgave his victory over
the bloodthirsty Maoist terror
group Shining Path—Peru’s
democrats stopped the president’s power grab. He’s now
in prison for convictions on
charges of human-rights violations and bribery.

Two center-right
candidates, but one
has a more promising
economic agenda.
If the Latin American left,
which feigned a love of democracy, had used even a
fraction of the energy it put
into ending Mr. Fujimori’s
political career on opposing
Hugo Chávez as he shaped a
military dictatorship, Venezuelans might not be starving
now. By denying Mr. Fujimori
another term, Peruvians set a
precedent for the peaceful,
predictable transfer of power
and political competition.
Ms. Fujimori—who was

Peru’s “first lady” after her
father and mother separated
in 1994 and later divorced—
distanced herself from her
father’s government and
pledged to respect democracy. She is a disciplined politician and prosecuted a fabulous campaign ground game,
effectively mobilizing her
grass-roots Popular Force
party which she had built
over years.

Yet many Peruvians associate the Fujimori name with
authoritarianism, and there
was concern that her party’s
majority in Congress would
rubber stamp Ms. Fujimori’s
agenda. She was further
weakened by the revelation
last month that the secretarygeneral of her party is being
investigated by the U.S. Drug
Enforcement Agency.
Ms. Fujimori’s economic
nationalism is strange in a
country that has been climbing out of poverty through
engagement with the world.
During the campaign she
frequently demagogued Mr.
Kuczynski as a rich guy who
wants to help corporations
and foreigners by allowing

the export of natural gas reserves.
That seemed insincere on
multiple levels. As the daughter of the president she didn’t
exactly grow up in the barrio.
And surely the Columbia University M.B.A. understands
that the gas has no value if it
sits in the ground.
Mr. Kuczynski didn’t have
the benefit of a party machine. But he benefited from a
strong anti-Fujimori sentiment among Ms. Mendoza’s
supporters. And his platform
promising to upgrade law enforcement and intelligence,
enhance transparency, lower
and simplify taxes, and bring
potable water to Peruvian
homes resonated in an aspiring nation.
If Ms. Fujimori wins, she’ll
need Mr. Kuczynski’s ideas to
move the country ahead. If
PPK maintains his early lead,
his challenge will be getting a
fujimorista Congress to work
with him.
Write to O’

Notable & Quotable: Minimum Wage at the Car Wash
From “Minimum Wage vs.
the Carwasheros: New York’s
new $15 wage floor pits man
against machine” by writer

Jim Epstein for the July issue
of Reason magazine:
When the minimum wage
goes to $15 an hour, automating will be a no-brainer. “Since
I have 15 guys on the property,
I wouldn’t be able to charge
less than $30,” [New York City
car-wash owner Martin Taub]
says. “Who’s going to pay $30
for a car wash?”
Amir Malki, a leading car
wash equipment installer in

the region, says over a dozen
car wash operators in New
York City have inquired about
putting in the necessary machinery to cut their labor
costs.
One owner, who talked to
Reason under the condition of
anonymity because he’s worried about the political repercussions of speaking out
about the minimum wage,
says he’s considering purchasing $300,000 in equipment,
which would allow him to
eliminate 15 of the 22 men
who currently staff his fullservice hand wash.

When the minimum wage
goes from $9 to $15, he estimates that his expenses per
wash will rise about $7 to

$22, meaning he’ll have to
charge at least $25 to make a
profit. “Now put yourself in
the shoes of the customer,” he
says. “The first thing they’ll
do is wash their cars at home.
Or they’ll drop from washing
their cars three times a
month to once a month.” If he
automates, he figures he could
lower his price to about $8.
“That’s the only way I can
think of to survive.”
“I can’t think of any indus-

try where the service that’s
provided is so expendable,”
says economist [Donald] Boudreaux. “In economic terms,
you’d say that the demand for
car washes is highly elastic.”
In other words, the industry
faces strong pressures to keep
prices down, because car
washes aren’t a necessary service, so an increase will lead
to a quick fall-off in customer
traffic. That’s why most can’t
afford to pay their workers
$15 per hour and stay in business. Car wash operators have
no choice but to automate,”
says Boudreaux.

BOOKSHELF | By Stefan Beck

The Elements
Of Style
How to Write Like Tolstoy
By Richard Cohen
(Random House, 323 pages, $28)

O

ne is bound to feel duped if, having bought a book
called “How to Write Like Tolstoy,” one encounters
within the first six pages the question “Can one, in
fact, teach people to write?” This dodge is a common rhetorical gambit of people being paid to teach people to
write—the implication being, “Don’t expect a miracle.”
Richard Cohen, an author, professor and veteran editor of
such luminaries as Kingsley Amis and John le Carré, cites
Kurt Vonnegut as having been skeptical of writing instruction. Vonnegut, on the faculty of the Iowa Writers’ Workshop, “held that one could not make writers, and likened
himself to a golf pro who could, at best, take a few shots
off someone’s game.” So one can teach people to write—
just not like Count Lev.
Notwithstanding its title, which is clearly tonguein-cheek, Mr. Cohen’s book
has admirably modest aims.
It seeks to provide sound
advice to aspiring writers
and to illuminate the ways in
which the finest novelists
have addressed fiction’s creative and technical challenges.
It begins with “Grab, Invite,

Beguile: Beginnings,” ends
with “The Sense of an Ending,”
and, in between, discourses
upon character, point of view, dialogue, plot and rhythm. There are also, less
predictably, chapters on plagiarism and the difficulties and
rewards of writing about sex. All of this amounts to something more substantial than a mere handbook. It is a paean
to the creative process.
The book’s weakness, that it is at times accessible to a
fault, can also be counted among its strengths. Serious
readers may chafe at how often Mr. Cohen illustrates his
points with all-too-familiar works and passages. In his
“Beginnings” chapter, for instance, he quotes the opening
paragraphs of “The Old Man and the Sea” and “The
Catcher in the Rye”; Salinger reappears later, in a twopage section on “A Perfect Day for Bananafish.” Mr. Cohen includes such inescapable matter as the concluding
lines of “The Great Gatsby,” the apocryphal tale of Jack
Kerouac’s “On the Road” “scroll,” and an explanation of
Gordon Lish’s role in creating Raymond Carver’s work as
we know it.
Serious readers are aware of this stuff. So are many lessthan-serious ones. Yet it helps make “How to Write Like
Tolstoy” feel like a book for everyone, not just MFA students with a draft or two under their belts. It belongs in
every high-school classroom. Not only does it cover the basic mechanics of storytelling in a genial, conversational
way, but it also makes the literary sphere and literary life
seem wilder and more enticing than any high-school English curriculum is allowed to do. The by turns amusing,
groan-making and meditative chapter on writing about
sex—which provides a survey of literary erotica from “The
Song of Songs” and “Fanny Hill” to Philip Roth, John Updike and Tom Wolfe—goes a long way in that direction, too.
In any case, the sort of quotations one might find on a
bookstore tote bag sit amid a greater quantity of more so-

Part of the value of a college education is that

it alerts the autodidact to his embarrassing
blind spots. This book is a decent substitute.
phisticated or esoteric material, culled from literary biographies, writers’ and editors’ correspondence, and Mr. Cohen’s own editorial career. An inquiry into the nature of
plot takes as its jumping-off point his work on editing
Christopher Booker’s “The Seven Basic Plots” (2004), a
two-decade-plus project that Mr. Cohen describes, in an allusion to “Middlemarch,” as a “modern equivalent of Casaubon’s Key to All Mythologies.” This section is a reminder
of how deeply the author and his lodestars have engaged
with the issues under discussion.
Those lodestars are far too numerous to list, but as a
consequence “How to Write Like Tolstoy” is worth purchasing for its implied Suggested Further Reading alone.
Part of the value of a college education is that it alerts the
autodidact to his embarrassing blind spots. Mr. Cohen’s
book could serve as a decent substitute. It names dozens if
not hundreds of works, as old as the Gilgamesh epic and as
of the moment as the levee-breaking tides of Karl Ove
Knausgaard’s prose. It also draws on significant works of
literary criticism and instruction, ranging from the popular
(Stephen King’s “On Writing,” James Wood’s “How Fiction
Works”) to the classic (E.M. Forster’s “Aspects of the
Novel,” F.L. Lucas’s “Style,” Henry James’s “The Art of Fiction”) to the lesser-known (Georges Polti’s “Les Trente-Six
Situations Dramatiques”).
Mr. Cohen’s chapter on plagiarism is, sadly, an especially welcome one, given how common literary theft has
become in high schools and on college campuses. Yet one
wonders whether it might be misinterpreted by unsubtle
or unscrupulous minds as a warrant to steal. He quotes
Bill Bryson: “Shakespeare was a wonderful teller of stories so long as someone else had told them first.” He tells
us that Laurence Sterne plagiarized Robert Burton, Francis Bacon and Rabelais when writing “Tristram Shandy.”
While this discussion is fascinating, there is a bit too
much of this “good writers borrow, great writers steal”
(T.S. Eliot) sort of thing, and it is hardly relevant to the

type of plagiarism that tends to occur in the age of
Google and Wikipedia.
The highest compliment one can pay “How to Write Like
Tolstoy” is that it provokes an overwhelming urge to read
and write, to be in dialogue or even doomed competition
with the greatest creative minds. Encouraging this impulse
is a teacher’s real job. The Irish writer Brendan Behan, Mr.
Cohen tells us, once disappointed a standing-room-only
crowd by thundering, “Go on back home and frickin’ write”
and then making his exit. This is a cop-out. One cannot improve as a writer without practice, but seldom does one
submit to that discipline without first having been taught
to love it. That Mr. Cohen is an editor, that his love of literature comes in large part from awe in the presence of
better writers than he, is no small matter. His love is infectious, and regardless of how well he ends up teaching us to
write, that is miracle enough.
Mr. Beck is a writer living in Hudson, N.Y.


THE WALL STREET JOURNAL.

A16 | Monday, June 6, 2016

OPINION

D

REVIEW & OUTLOOK

LETTERS TO THE EDITOR

Trump and the ‘Mexican’ Judge

For Many College Often Isn’t the Best Choice

onald Trump keeps giving his political more obnoxious, though we doubt he could do
opponents ammunition, most recently much about it in office. The political blowback
with his continuing attacks on Judge would rightly be enormous.
Gonzalo Curiel, who is presidWhat elevates Mr. Trump’s
Why equating
ing over lawsuits against
remarks to the reprehensible
Trump University. But it’s imhis equation of ethnicity
ethnicity with judicial is
portant to distinguish bewith bias. That truly is an atbias is so offensive.
tween what is merely obnoxtack on the independence of
ious and the truly odious in
the judiciary because it means
his remarks.
that a judge can be disqualiMr. Trump has repeatedly attacked the fied from a case merely for his personal backjudge as “unfair” and “a hater.” He has also ground, rather than for any material conflict
threatened a civil case against the judge if he of interest.
becomes President, adding that because Judge
The suit against Trump University is a clasCuriel is “of Mexican heritage” he has “an in- sic civil fraud case that has nothing to do with
herent conflict of interest.” The media have of- ethnicity. Judge Curiel happens to be an
fered Mr. Trump opportunities to retreat, but American born in Indiana to immigrant parhe keeps insisting that ethnicity disqualifies ents, but that is of no legal import. He
the judge from ruling fairly because the Re- shouldn’t be judged by the ancestry of his parpublican favors building a wall at the U.S.- ents any more than Chief Justice Roberts
Mexican border.
should be barred from ruling on religious libDemocrats and their media allies are trying erty cases like the Little Sisters of the Poor beto portray this as an attack on “judicial inde- cause he is a Roman Catholic.
pendence,” but criticizing the judiciary is neiAs a legal matter this is well established, nother new nor beyond the pale. Perhaps they’ve tably in a 1998 case (MacDraw v. CIT) in the
forgotten that President Obama slammed the Second Circuit Court of Appeals. A litigant chalSupreme Court for its Citizens United ruling in lenged the fairness of Judge Denny Chin due to
2010 while the Justices were a captive audience his ethnicity. Judge Chin responded by slapping
during the State of the Union address.

down the complaint and sanctioning the lawMr. Obama also contributed to the Demo- yers, and he was backed by the appellate judges.
cratic intimidation campaign against Chief Jus- “Courts have repeatedly held that matters such
tice John Roberts ahead of the 2012 ObamaCare as race or ethnicity are improper bases for chalruling. “I’m confident that the Supreme Court lenging a judge’s impartiality,” wrote Judge
will not take what would be an unprecedented, Ralph Winter, a highly regarded conservative
extraordinary step of overturning a law that was appointed by Ronald Reagan.
passed by a strong majority of a democratically
Apart from his racist implications, Mr.
elected Congress,” the President said at an April Trump is also indulging in the left’s habit of at2012 press conference. The Chief Justice ruled tributing the motivations of everyone and evas the President recommended.
erything to race, class, gender and sexual orienWe and others criticized those attacks on tation. Claiming that a person’s judgment is
the judiciary at the time. If our great progres- determined by his objective circumstances is a
sive moralists were outraged, we must have Marxist trope. Isn’t Mr. Trump supposed to be
missed it. However, the left has long wanted running against such thinking?
to make progressive judges off-limits to politiThe hopeful news is that Mr. Trump’s attack
cal criticism, which explains the attempts to on Judge Curiel’s ethnicity has been widely deconflate Mr. Trump’s comments with criticiz- nounced, notably by senior Republicans including any judge ever.
ing House Speaker Paul Ryan and Majority
Mr. Trump is attacking Judge Curiel in a per- Leader Mitch McConnell. Unlike many of our
sonal business case, not a political one, and as outraged progressives, they are politically cona candidate for President we think he should be sistent. As for Mr. Trump, he should let his lawabove this kind of pettiness. His implied threat yers argue his civil case, apologize to the judge,
against the judge if he becomes President is and start talking about the economy.

R

Bringing Justice to Justice

emember the federal judge who or- outside the grand jury without their counsel
dered Justice Department lawyers to present, and threatened perjury charges
take ethics classes after he learned against witnesses whose testimony didn’t fit
they’d deliberately lied about
the DOJ narrative.
Sen. Chuck Grassley
President Obama’s executive

In their letter to Ms. Yates,
order on immigration? He’s wants answers from DOJ the Senators want to know
not the only official asking
whether this behavior is “acon prosecutorial abuse. cepted practice or policy,”
hard questions about indefensible behavior by federal
and, if not, “what disciplinary
prosecutors.
steps have been taken.” They
On May 19 Senators Chuck Grassley and also want to know whether the Office of ProMike Lee sent a letter to Deputy Attorney Gen- fessional Responsibility is investigating the aleral Sally Quillian Yates asking about the leged misconduct.
“questionable actions of federal prosecutors”
They should also ask Ms. Yates about the
regarding the criminal case against medical- memo she issued in September offering new
device maker Vascular Solutions. Mr. Grassley guidance on prosecuting corporate officers.
chairs the Judiciary Committee.
Justice has ample statutes to hold businesses
In February a federal jury acquitted Vascu- accountable for genuine abuses. The question
lar Solutions and its CEO Howard Root on all is whether President Obama’s antibusiness atcriminal charges related to the promotion of titudes have created a climate in which DOJ
one of its varicose-vein kits. The company prosecutors are willing to cut ethical corners
wasn’t accused of spreading false informa- to win convictions for which there isn’t enough
tion—merely of marketing the kits for off-label evidence. U.S. Attorney Preet Bharara’s failed
uses that the Food and Drug Administration insider-trading cases are one example.
hadn’t approved. The company’s attorneys
Maybe Justice needs a new Yates memo
found evidence that prosecutors had shared that focuses on the consequences for DOJ lawgrand jury testimony from some witnesses yers who bring cases that never should be
with other witnesses, interviewed witnesses brought—with sanctions for legal abuses.

T

Squeezing Kim Jong Un’s Bankers

he Obama Administration put signifi- pher Hill, lifting the Banco Delta Asia sanctions
cant new pressure on North Korea in 2007 in exchange for denuclearization promlast week by designating the entire ises that Pyongyang predictably broke. But the
country a “primary moneyepisode showed the Kim reThe U.S. puts pressure gime’s sensitivity to losing
laundering concern.” This is
the biggest gun in the arse- on the North’s finances. foreign bank access.
nal of financial sanctions. If
Which is why Wednesday’s
What will China do?
enforced, it will make banks
move is potentially conseworld-wide choose between
quential: If any foreign bank
doing business with North
doing business with any
Korea and maintaining access to U.S. dollars. North Korean entity will be subject to a U.S.
For Kim Jong Un and the Chinese banks that dollar ban, Pyongyang could face financing
sustain his regime, life is suddenly more problems that dwarf its former Banco Delta
complicated.
Asia woes.
It’s about time. Despite blacklisting the fiIt’s true that past performance doesn’t guarnancial systems of Burma and Iran in this antee future results. As powerful as the U.S.
wholesale fashion years ago, the U.S. has hit designation may be, Pyongyang’s patrons in
North Korea only with sanctions on certain in- Beijing can still undermine it by equipping sedividuals and entities. This allowed Pyongyang lect Chinese banks to operate independent of
to keep working with foreign banks and using the U.S. dollar system, or by resupplying Kim
nominally legal channels to move dirty money as his coffers dry up. Beijing criticized the U.S.
from its rackets in drugs, counterfeiting, slave move as “unilateral,” reiterating its line that
labor and weapons. President Obama was sanctions must not “harm the legitimate rights
wrong last year to call North Korea the “most and interests of China.”
sanctioned” country on earth, but perhaps now
So the fate of these sanctions, like those that
he is committed to making it so.
came before, lie in the U.S. ability to persuade

The model is the Bush Administration’s 2005 China to get on board. In this regard the timing
blacklisting of Banco Delta Asia, a small Macau of the designation may offer some reason for
bank, for allegedly helping North Korea launder hope: It came as tensions are already high over
money. That froze $25 million in Kim family as- the South China Sea, on the eve of this week’s
sets and, more important, caused other banks annual U.S.-China summit in Beijing, and as Chito drop their Pyongyang business for fear of be- nese leader Xi Jinping met a personal envoy of
ing similarly barred from the U.S. financial sys- Kim Jong Un.
tem. Pyongyang soon had trouble buying misRather than shrinking from such calendar
sile parts and paying its cronies, so it begged pressure, as it often has in the past, the Obama
for a reprieve.
Administration made its move. Here’s hoping
The Bush Administration obliged, at the urg- this presages tough enforcement in the months
ing of diplomats Condoleezza Rice and Christo- to come.

Jeffery J. Selingo makes an often
overlooked point that while the vast
majority of today’s good jobs require
education and training beyond high
school, that doesn’t mean everyone
needs a bachelor’s degree (“College
Isn’t Always the Answer,” op-ed, May
27). The programs he mentions,
started by community colleges and
businesses, provide important alternatives. But states also have a role.
We need to ensure that our children’s curriculum includes built-in
options that prepare them for success in fields offering great career
opportunities in our states. The Pathways to Prosperity initiative, currently implemented in 12 states, is an
ideal model. In Delaware, we have
nearly a dozen pathways in areas
ranging from IT and engineering to
culinary arts and bioscience—all chosen because those industries have

good jobs available in Delaware. Participants take hundreds of hours of
coursework and have access to paid
internships, all developed with engaged business partners. Students
graduate high school with workplace
experience as well as some college
credits. We just recognized the first
graduates of our initial pathway—
started two years ago in manufacturing. All received industry-recognized
certificates and decided for themselves whether to choose a job, continued education or both.
GOV. JACK MARKELL
Dover, Del.

Can’t we learn something about family from “King Lear”? It’s time to free
a college education or lifelong learning from the employment statistics.
There is more to life than that.
SOL GITTLEMAN
Winchester, Mass.
Young people entering college are
in dire need of effective career counseling. Determining whether or not to
attend college and what to major in
requires a great deal of thought. As
Mr. Selingo suggests, in many cases a
student may be better served by
choosing to pursue a trade such as
plumbing, carpentry, welding, electrical or others, instead of attending college because the demand may be
greater and the pay more rewarding.
Our leaders in government should
also do everything possible to disabuse people of the idea that there is
a stigma associated with jobs that
don’t require a college degree. Politicians always speak of the need for a

college education and promise student loans and even free college for
everyone but seldom speak about
other options.
RALPH TIBILETTI
Spring, Texas

An untold aspect of co-op education is that of influencing students toward careers with industries they
might otherwise never have considered. In my case, it was love at first
encounter in January 1956 when I, a
mechanical-engineering student
Mr. Selingo seems to think that the showed up for a Northeastern Univeronly reason to attend a college is to
sity co-op job interview at the Salem
make a living. Isn’t it worth some(Mass.) Harbor Station, then New
thing to know the difference between England Power Company’s new flaga Sunni and a Shiite, or that Chrisship station. I was seduced. That
tians once killed Christians in uncharismatic experience engendered a
heard of numbers during the Thirty
passion that stayed with me throughYears War (1618-1648)? Does the
out my 35-year career.
study of history or, God forbid, ShakePETER KUSHKOWSKI
Portland, Conn.
speare belong in economic statistics?

Risk Corridors Are Essential in Health Care
Over the past several years, much
has been said about the politics of
health-care reform. However, Sen.
Marco Rubio’s criticism of risk corridors associated with the Affordable
Care Act (“ObamaCare: A Crony Capitalist’s Best Friend,” op-ed, May 25).
and other criticism on these pages
of the private health insurance industry are misguided.

When Congress passed the health
reform law, it included a temporary
three-year transition program to
mitigate disruption to consumers in
the early years of the new insurance
market. This risk corridors program
is a time-tested policy that has been
used on a bipartisan basis as part of
many insurance initiatives, including
Medicare’s highly successful prescription drug program.
Health plans responded to the law
and the subsequent federal and
state regulations as required. Coverage options for millions of Ameri-

cans were developed based on the
rules that were in place. Unfortunately, as a result of the shortfall in
the risk corridors funding, more
than 800,000 Americans across the
country have faced disruptions in
coverage, health plans have had to
reduce benefits and options, and
several had to close their operations
entirely.
No matter the party, everyone
shares the goal of ensuring affordable access to health care. We believe the private insurance market
is the best way to deliver choice
and quality for consumers. That
will require Congress to move forward with bipartisan solutions that
protect consumers and promote a
stable, affordable market for all

Americans.
MATTHEW EYLES
Executive Vice President
America’s Health Insurance Plans
Washington

It’s Time to Consider the Libertarian Ticket
Your editorial calls the Libertarian
Party’s Gary Johnson-William Weld
ticket an “honorable alternative” to
the presumptive Democratic and Republican nominees, and indeed it is
(“The Libertarian Alternative,” May
31). If Messrs. Johnson and Weld were
the Republican standard bearers
rather than the Libertarian ones, they
would enjoy the full-throated support
of conservatives and classical liberals
who cherish the GOP’s legacy of free
markets and limited government. They
are two successful former governors
with unimpeachable conservative credentials on economic matters, tolerant
views on social issues and bipartisan
appeal to boot. In this election cycle,
where the major parties offer voters a
poor choice, the Johnson-Weld ticket
is a no-brainer—or it would be if so
many Americans weren’t conditioned
to dismiss the idea of a third-party
candidate out of hand.
Donald Trump’s ascendancy has

demonstrated that on too many major
issues, the GOP no longer offers a coherent message to counter Democratic
dogma. Republicans pay lip service to
the goal of smaller government, but
no progress has been made on that
front since the 1980s.
On the most important issues of the
day—how to fix America’s ailing economy, America’s role in foreign affairs
and the extent to which government
should be allowed to curtail liberties
to ameliorate perceived social problems—Libertarians, not Republicans,
offer the starkest and most principled
alternative to the Democratic Party.
JAMES LIDDELL
Washington

I couldn’t agree more that the accomplished Libertarian ticket is an excellent alternative to Donald Trump
and Hillary Clinton, but more important, it would punish the two established parties for breaking faith with
America for giving us unacceptable
candidates. We know they are unacceptable because each party has based
its message on how bad the other candidate would be rather than any acHow wonderful that the Obama ad- tual policy or character considerministration is forgiving student
ations. This is insulting.
loans of those attending schools said
At 10% now in the latest Fox poll,
to have used deceptive advertising
the Libertarians would need to take
and recruiting (“Applications to Can- just 12% from each of the established
cel Student Loans Surge,” U.S. News,
parties to be positioned to win. A LibMay 27). Perhaps now American taxertarian presidency might just be

payers can have their past income
what the country needs. Everybody
taxes forgiven (and returned) when
would have to work together because
it’s shown that politicians have used
they’d have no choice. With a Libertardeceptive advertising.
ian president standing between them,
ED WRIGHT the usual Republican-Democratic ranSan Jose, Calif. cor just wouldn’t play.
DAVE DAVIS
If the government pays off the stuPhoenix
dent loans that graduates claim are
worthless, then the graduates should
Letters intended for publication should
lose their diplomas, which they claim
be addressed to: The Editor, 1211 Avenue
don’t have value. Graduates who have
of the Americas, New York, NY 10036,
or emailed to Please
a valued diploma wouldn’t ask forinclude your city and state. All letters
giveness. This would separate the boare subject to editing, and unpublished
gus claims from real ones.
letters can be neither acknowledged nor
TED HAMMOND
returned.
Greensboro, Ga.

Writing Off Student Loans
Is an Idea With Great Legs

THE WALL STREET JOURNAL.

Monday, June 6, 2016 | A17

OPINION

Ending the Corporate-Welfare Circus
By Brent Gardner

State gifts to the likes of
Boeing, Ford, Google and
Apple are unnecessary and
unfair. Better to cut the tax
rate and reduce regulation.
delegations opposed to federal-subsidy programs like the Export-Import Bank, which hands out taxpayer-backed loans and guarantees
to businesses like GE. This followed
the company’s refusal last summer
to relocate its headquarters to Dallas, because some prominent Texas
lawmakers opposed reauthorizing
the bank.
Increasingly, major companies
determine where to maintain, expand or relocate facilities based on
how much money they can take
from taxpayers’ pockets in the process. They sometimes hold jobs and
entire communities hostage until
they get their way.
The most frequent tactic is to
demand tax credits or direct subsi-

GETTY IMAGES

C

ompetition is at the
heart of America’s economic success, but not
every type of contest
benefits society. Consider the growing trend of businesses cajoling states and politicians to compete for who can dole
out the most corporate welfare.
It’s especially frustrating because
there are already plenty of ways
to promote job growth without
robbing taxpayers.
General Electric is one of the
latest companies to shamelessly
demand taxpayer-funded goodies
from government. The company’s
senior tax counsel Bobby Burgner
spoke freely about the firm’s strategy earlier this month at a panel
hosted by the National Bureau of
Economic Research. Mr. Burgner
declared that GE would generally
avoid states with congressional

dies from state governments. In
2010 John Deere secured $15 million from Iowa to maintain roughly
300 jobs at a Waterloo plant. A
year later in neighboring Illinois,
Sears and the Chicago Mercantile
Exchange Group threatened to relocate their headquarters unless the
state forked over about $100 million in tax breaks. General Electric

was in on the game as early as
2010 when it sought $25 million in
tax credits from Massachusetts to
maintain 150 local jobs.
States also use tax giveaways to
lure businesses to relocate or expand. North Carolina gave presents
of $320 million to Apple and $250
million to Google so they would
build data servers in the Tar Heel
State. Kentucky has doled out
more than $500 million in tax
breaks and subsidies for Toyota
and Ford auto plants. Medical
companies have milked Florida for
well over $1 billion in various
handouts. Nevada threw $1.3 billion at Tesla Motors to build an
electric-car-battery plant.
And then there’s Boeing. In
2013, the company, which assembles jetliners in the world’s largest
building in Everett, Wash., an-

nounced that it was looking for a
location to build its new 777X.
This spurred a furious scramble by
multiple states to win the company’s favor. Although most kept
their bids under wraps, Missouri
tried to tip the scales by passing a
bill containing $1.7 billion in tax
incentives.
That still wasn’t enough, and

Boeing decided to stay in Washington. The price? An $8.7 billion
package, the largest such giveaway
in American history, that included
tax breaks on airplane production,
a sales-and-use tax exemption for
new buildings and taxpayer-funded
training for employees.
Some states now devote part of
their annual budget to doling out
taxpayer-funded goodies to businesses, and many have established
government agencies to grease
company wheels. New York has its
Empire State Development Corporation. California’s is known as the
California Infrastructure and Economic Development Bank. And, as
usual, everything is bigger in Texas:
The state annually hands out more
than $19 billion in corporate welfare through the Texas Enterprise
Fund and other programs, accord-

ing to the New York Times.
It’s not all bad news for taxpayers. Wisconsin lawmakers last year
rejected Gov. Scott Walker’s plan to
inject $55 million into the Wisconsin Economic Development Corporation. In February Florida lawmakers rejected Gov. Rick Scott’s
proposal to give $250 million to
Enterprise Florida. The state
agency will now be shrunk by
roughly two-thirds—a big win for
anyone paying taxes in the Sunshine State.
Yet these are only exceptions
that prove the rule in this specialinterest race to the bottom. If state

and local lawmakers are truly interested in spurring job creation and
economic growth, they have better
options than handing out taxpayer
money to a lucky few.
States could start with eliminating tax carve outs and replacing
them with lower-overall tax rates
and lighter regulatory burdens. Federal lawmakers could also do their
part by lowering America’s highestin-the-developed-world corporate
tax rate. These already proven ideas
would help states create a healthy
economic climate to attract businesses and investment.
Embracing these policies would
protect taxpayers, who should
never be forced to fork over their
money to companies that include
multinational firms with multimillion-dollar profit margins. Consumers and taxpayers will also
benefit once a level economic playing field forces businesses to compete with each other based solely
on the quality of their products
and services.
That might seem like a novel
concept to many of today’s lawmakers and business leaders. But it’s
the kind of competition that has
spurred the innovation and advances that made America the economic envy of the world—not a
corporate welfare free-for-all.
Mr. Gardner is vice president of
government affairs at Americans
for Prosperity.

Muhammad Ali and the Pinnacle of Confidence
By Bob Greene

‘W

hat do you think of
that?” Muhammad Ali
asked. We were in adjacent seats on an American Airlines
flight from Chicago to Washington,
D.C., as the plane made its landing
approach.
Ali was gesturing out the window. I thought he was referring to
the nighttime sight of the illuminated monuments. I said I thought
they looked very pretty.
But that is not what he was talking about. He was looking at the
houses in suburban Virginia and
Maryland:
“Look at all those lights on all
those houses. . . . Do you know I
could walk up to any one of those
houses, and knock on the door, and
they would know me? It’s a funny
feeling to look down on the world
and know that every person knows
me. Sometimes I think about hitchhiking around the world, with no
money, and just knocking on a
different door every time I needed
a meal or a place to sleep. I could
do it.”
Probably so. We first met and
had our first conversations when he
was 26 and I was 21. This flight was

a decade and a half later: In 1983
Esquire magazine, to commemorate
its 50th anniversary, was devoting
an issue to the 50 men and women
judged to have most influenced the
world in the previous half-century.
I’d been asked by the magazine to
travel with Ali on this three-day trip
to Washington.
For a man so often seen, on frenzied fight nights, surrounded by
handlers and trainers and hangerson, he always seemed exceedingly
comfortable being alone. He had
told me to meet his plane from Los
Angeles at O’Hare International Airport in Chicago so we could get on

the connecting flight; he arrived by
himself, with no entourage at all. I
would have been surprised, except
that this was the same as it had
been the first time I ever encountered him.
Still in school, I had been working as a summer reporter at the
Columbus Citizen-Journal in Ohio
when I was told to cover a visit to
town by Ali. I was intimidated by
the assignment, but the number of
people initially accompanying him
and running interference turned out
to be zero.
I’d see it again over the years: In
the early 1970s, in Chicago, he was

preparing for a fight against a boxer
named Jimmy Ellis. There was a
weathered little gym called the
Johnny Coulon Physical Training
Club, underneath the elevated-train
tracks on 63rd Street on the South
Side. Ali came to the place alone,
climbed the three shadowy flights of
stairs and, in solitude except for a
person timing him, punched away at
the heavy bags, his grunts of exertion and the slapping of his fists
against the leather the only sounds
in the room. In the 1990s, outside a
hotel in downtown Chicago, I noticed him standing by himself, trying
to hail a cab; when I asked him what
he was doing there, he softly said, “I
have to get to the airport.”
Unremarkable for anyone else,
but not what you would necessarily
expect for a man of his renown. The
pinnacle of confidence is being just
fine keeping your own company.
And, for all the tales of Ali’s vaunted
ego, he courageously put self-consciousness aside when his health
began to fail. He could have hidden,
hoping to preserve the world’s
image of him in his prime; instead
he looked the public right in the eye.
By the time of that trip to Washington, his voice had already become
shaky and slurred. Everyone he

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encountered knew it, and so did he,
and he couldn’t do a thing about it.
He didn’t let it stop him for a moment. He spoke to every person who
approached him.
The last time I saw him was at
dinner a few years back at a

Chicago steakhouse. There were
family members and friends at the
table. Ali said not a word the entire
evening; he drew a picture of a

There he was, as I saw him
several times: the world’s
most famous person,
by himself, comfortable
keeping his own company.
mountain on a piece of paper in
front of him. Because of his tremors
he needed help eating his meal, but
he graciously nodded hello to each
stranger who walked by. When he
rose to leave, the other diners in the
restaurant, some with tears streaming down their cheeks, spontane-

ously burst into applause.
He seemed to understand, especially near the end, that, heavyweight championships aside, the
greatest victory in this life is
simply being able to wake up each
morning to a new sunrise. Shortly
before that trip to Washington all
those years ago, I had phoned him
at his home in California to arrange
the logistics. Partly kidding but
mostly serious, he had said: “You
just want to put me on the cover.
I’m the most famous man in the

world.”
I said that there would be no photographs on the cover of the magazine: just type. And that there would
be people in the issue as famous as
he was. He scoffed at the idea, and
asked who. Oh, I said, John F. Kennedy. Franklin Delano Ro-osevelt. Dr.
Martin Luther King Jr.
“They’re all dead,” Ali said, teasing a bit. And reveling, as ever, in
the sheer, joyous fact of being alive.
Mr. Greene’s books include
“Chevrolet Summers, Dairy Queen
Nights” (Harper Perennial, 2001).

Aloha, Puerto Rico
By Keli’i Akina
And Andy Blom

C

ongress is wrestling with
legislation to put Puerto Rico
back on its feet while avoiding
a taxpayer bailout or chapter 9
bankruptcy. Legislation empowering
a strict fiscal-control board is an
important first step. But lawmakers
also need to implement policies that
enable the Puerto Rican economy to
grow. Exempting the territory from
the Jones Act would be a good start.
The Merchant Marine Act of

1920, better known as the Jones Act,
specifies that ships carrying cargo
between two American ports must
be built in the U.S. and be 75%
owned by American citizens. Further, at least 75% of a barge’s crew
must be U.S. citizens, and it has to
fly the American flag.
In practice, the law has been incredibly damaging—to Puerto Rico
as well as Hawaii, which has its own
economic worries. One study estimated that the Jones Act has cost
Puerto Rican residents $29 billion in
the past 40 years. The cost of shipping a 20-foot container from any
U.S. port to Puerto Rico is twice as
expensive as shipping to the virtually equidistant Dominican Republic,
a 2012 Federal Reserve Bank of New
York study showed.
This makes most aspects of
everyday life more pricey. A vehicle
costs $6,000 more in Puerto Rico
than on the mainland, and food is
twice as expensive as in Florida.
Energy can cost two or three times

more per kilowatt-hour than on the
mainland, according to the U.S.
Energy Information Administration.
Because of the Jones Act, liquefied
natural gas cannot economically be
imported to the island.
The fleet of U.S. vessels that

comply with the Jones Act has
dwindled to fewer than 100 today,
from 2,300 in 1946. Many of those
ships are antiquated and expensive
to maintain. Allowing “international
relay”—that is, a non-Jones Act ship
on a single voyage transferring
goods between two U.S. ports—
would bring significant relief to
Puerto Rico.
The Jones Act also damages Hawaii, which is the next-highest state
or territory in debt service. Puerto
Rico needs Jones Act relief to survive, and Hawaii needs it to avoid
becoming Puerto Rico.
The congressional Republican
Study Committee in February released a statement explaining that it
didn’t support a bailout for Puerto
Rico but instead wanted “progrowth reforms that would alleviate
the burden that current federal policies place on the territory.” Why not
Jones Act reform for Puerto Rico?
An exemption was made for the U.S.
Virgin Islands in 1922. Congress
could alleviate Hawaii’s burden at
the same time by reforming this
anachronistic, anti-growth law.
Mr. Akina is the president and
CEO of the Grassroot Institute of
Hawaii. Mr. Blom is the executive
director of Grassroot Hawaii Action.

Waiting
For Obama
On Religious
Liberty
By Frank Pavone

T

he ball is now in the Obama
administration’s court. For more
than four years, religious nonprofit groups like mine have defended
ourselves against the ObamaCare
Health and Human Services mandate,
which makes religious nonprofit
groups complicit in the distribution of
abortion-causing drugs to their
employees. We are now waiting to see
what the president and his appointees
will do in light of the Supreme Court’s
recent action in Priests for Life v. HHS
and the other six cases that make up
Zubik v. Burwell.
The Supreme Court could have
settled the question of whether federal bureaucrats may issue punishing,
perhaps incapacitating, fines to faithbased organizations that refuse to
participate in what we believe to be
evil. Instead, the justices sent all of
the cases in Zubik back to the four
federal circuit courts that heard them
first. The high court also asked those

appeals courts to step away momentarily and give the two sides time to
resolve the case on their own.

Priests for Life is ready
to reach a solution, as the
Supreme Court directed.
What will the administration do
now? The White House’s latest “accommodation” proposal for religious
nonprofit charities, schools and other
organizations did not satisfy the Religious Freedom Restoration Act. The
proposal and each of its previous versions required faith-based groups
seeking an exemption from the mandate to submit a form to an authority.
Without this initiating action, abortion-causing drugs would not be
made available to our employees. The
basic requirement that we be complicit in the provision of abortifacients and other life-denying drugs,
devices and procedures was a part of
every government proposal. When we
responded that we are forbidden by
our faith to take part in this
scheme—the government effectively
retorted, “So what?
But both sides in Zubik have told
the Supreme Court that a solution is
theoretically possible.
For instance, the administration
could, for once, actually listen to the
Zubik petitioners—and to the scores of
other faith-based groups that have
lawsuits pending in lower courts—and
propose a solution that does not hijack

our health-insurance plans. The
administration could, for example,
make abortifacient/contraceptive coverage available to religious nonprofit
employees through the ObamaCare
exchanges, Title X (the federal program devoted to family-planning services), or separate arrangements with
our own or another insurance company. In other words, don’t involve us,
or the health-insurance plan we offer
our employees, in the effort to expand
coverage of abortion-inducing drugs.
The administration might be
tempted to come up with a proposal
that satisfies only those groups that
have third-party insurance coverage—
and not those that self-insure. This
wouldn’t be acceptable, because selfinsurers underwrite their own healthinsurance plans and are, practically
speaking, their own insurance companies. A government “accommodation”
that offered as its only option a requirement that insurers of religious
nonprofit groups offer the employees
of those groups separate plans for
abortifacients and contraceptives
would still force self-insured religious
groups to violate their faith.
Then again, the administration
might completely ignore the Supreme
Court and come up with yet another
regulation that satisfies no one except the bureaucrats who insist that
the religious must bow to the state.
If all the parties resolve the matter, the case would probably be
closed. But if the two sides can’t
agree, four federal appeals courts will

eventually have to rule on the seven
Zubik cases. Almost all of the judges
from these courts who heard these
lawsuits the first time are Democratic
appointees who sided with the administration. It isn’t likely that they
would issue decisions favorable to religious liberty. The four courts may
also end up issuing conflicting rulings. Either scenario would bring us
back to the Supreme Court.
No timetable has been set for an
end to the HHS mandate controversy.
Given that both sides have indicated
to the Supreme Court that there is a
way to satisfy all parties, the government’s unwillingness so far to make
the changes in the mandate necessary
to accomplish that is inexplicable.
Fr. Pavone is the national director
of Priests for Life.


THE WALL STREET JOURNAL.

A18 | Monday, June 6, 2016

Cognitive sports is here.
Sports teams lose hundreds of millions of dollars to injuries
each year. IBM Watson™ is now helping analyze training
and biomarker data, along with the unstructured data from
travel schedules and sports science research, to help teams
predict the likelihood of injuries. And to keep athletes playing
to win. When your team thinks, you can outthink.

outthink
second place

ibm.com/outthink

IBM and its logo, ibm.com and Watson are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. See current list at ibm.com/trademark. Other product and service names might be trademarks of IBM or other companies. ©International Business Machines Corp. 2016.


URBAN GARDNER A20 | CITY NEWS A20, A21 | PROPERTY A22 | ARTS A23 | SPORTS A24

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Lineup Goes Lame
Injury-riddled Mets make do
WSJ.com/NY

* * * *

Going Backstage
At Governors Ball
ARTS | A23

SPORTS | A24

THE WALL STREET JOURNAL.

Monday, June 6, 2016 | A19

PATH Enters Tunnel of Woe

JOHN TAGGART FOR THE WALL STREET JOURNAL

Housing growth near
train lines exacerbates
crowding, vexes riders;
no relief in near term

Passengers try to board at
the Grove Street station.

BY ANDREW TANGEL

JOHN TAGGART FOR THE WALL STREET JOURNAL

n Blvd.

Light Rail

16th St.

14th St.

JERSEY CITY
9

Mer
cer S
York
S

bus

1

t.

t.

5

3

THE WALL STREET JOURNAL.

Montgomer

8

T id e w

1/4 mile

Liberty State Park

Housing for City’s Senior Moment
particularly in Manhattan.
The joint venture plans a
15-story building at the northeast corner of East 56th
Street and Lexington Avenue.
The developPROPERTY ers, who didn’t

disclose total
costs for the
project, paid $115 million for
the parcels that make up the
site.
The building will have private apartments, landscaped
terraces and an overall design
inspired by classic Park Avenue apartment houses. It will
be targeted at those with private means to pay.
“This is a place where
these people can be reminded
of things in their past, poten-

BY KEIKO MORRIS
When executives from realestate investment trust Welltower Inc. and developer
Hines began discussing a project to build a senior-housing
development, they didn’t
imagine the traditional leafy
location outside the city. They
wanted to build in Manhattan.
Welltower and Hines are
targeting an affluent sector of
a growing urban aging population, as have other players
in the niche development sector. They said they are aiming
to fill the gap between the
strong demand and limited
supply of facilities that offer
assisted-living services and
care for memory-impaired,

RICHARD BEAVEN FOR THE WALL STREET JOURNAL

BY MIKE VILENSKY

Zephyr Teachout, running for Congress, lost to Gov. Cuomo in 2014.
is, really.”
Such shifting sentiments illustrate the challenge for Ms.
Teachout as her profile has
risen. Largely ignored or dismissed by elected officials and

PATH

a te r B
a s in

tially by the design of the
building and by the location
of the building and have a significantly better quality of
life,” said Thomas DeRosa,
chief executive of Welltower,
which has 72 senior housing
properties in the tri-state
area.
Investor interest in senior
housing that offers assistedliving services and care for
dementia-related conditions
has grown in and around cities such as New York, where
aging residents are increasing
in number, industry brokers,
analysts, developers and investors said.

These residential facilities,
which typically offer less care
than a nursing home, largely

rely on residents who can pay
for services rather than on reimbursement from government programs, such as Medicaid, which are susceptible to
cuts.
There are about a dozen licensed assisted-living residences in New York City, including one in Manhattan,
according to the New York
State Department of Health
website. Of those, nine—including the Manhattan facility—are also licensed as special-needs
assisted-living
residences, providing specialized care for conditions that
can include dementia.
“People are living longer,
and as people live longer they
Please see SENIOR page A22

Teachout, Who Tested Cuomo, Faces Her Own Populist Rival 84°
In her losing 2014 primary
against New York Gov. Andrew
Cuomo, Zephyr Teachout, then
a little-known law professor,
ran as a populist Democrat to
the left of Mr. Cuomo.
Two years later, Ms. Teachout, 44 years old, is the
front-runner in the Democratic
primary for the state’s 19th
Congressional District. But now
she is the one facing an insurgent rival: Will Yandik, a

fourth-generation farmer who
hails from the region.
“Zephyr is a star, she’s a big
hero,” said Melinda Hardin, a
political activist in the district,
which includes the Catskills
and Hudson Valley, who voted
for Ms. Teachout in 2014.
However Ms. Hardin said
she is now backing Mr. Yandik.
“He’s more grass-roots than she

6

y St.

7

8 65 Bay Street: 447

Source: Jersey City City Planning Division

2

Grand St.

7 155 Marin,
Liberty Harbor North: 448
9 Embankment Newport: 163

Dr.

Hudson River

er C
olum

.

to ph

Future
Marina

Hudson St

6 200 Greene: 766

3rd St.

Warren St.

e

Some projects expected to open
within the next two years:

Turnp
ik

5 Majestic 2: 99

Chris

ersey

4 Cast Iron Lofts 2: 232

PAT
H

.

Liberty Harbor North: 167

Marin Blvd.

78

3 50 Regent Street

7th St.
5th St.

Manila Ave.

1 70 Columbus: 545 units
2 350 Warren (Modera Lofts): 377

Holland Tunnel

9th St.

Brunswick St.

Some projects completed
over the past two years:

PATH

Washing
to

Ave
.

Pal
is

Ba

NJ Tr
ansit

4

ade

ldw

in A
ve .

Proposed development
Approved development
Under construction
Completed development
Recreation/park
Historic district

e
Av

A Providence, R.I.-based
builder run by the same family
for five generations has been
making a big push into the
New York City market, increasing its share of business from
developers of residential, commercial and institutional constructions projects.
But Gilbane Building Co.
hasn’t made many friends
among the city’s labor unions.
Rather, the company has become a lightning rod for construction workDYNASTIES ers battling to
maintain New
York’s status as
one of the last union bastions
in the country.
Unions have sponsored about
a half-dozen anti-Gilbane rallies
in recent months, including one

in May that began at a Gilbane
construction site at 1 Wall
Street and ended at the company’s downtown offices where
more than 250 protesters were
joined by two large inflatable
rats. Other rallies have included
as many as five of the rats.
“They pride themselves at
having an over-100-year history
with the highest ethical standards,” said Gary LaBarbera,
president of the Building and
Construction Trades Council,
who has spoken at many of the
rallies. “Then they go out and
do the exact opposite.”
William Gilbane III, a fifthgeneration descendant of the

A surge in development in Jersey City is helping fuel growing ridership
on the PATH train between northern New Jersey and Manhattan.

rk
wa

BY PETER GRANT

company’s founder and head of
the New York office, said the
company adheres to the highest
safety standards in the industry. He pointed out that the
company has never had a fatality in New York at one of its

sites.
Union leaders say Gilbane is
being singled out partly because the company has been
pushing the bounds of the size
of projects being built with a
mix of union and nonunion labor. The protests are also a
sign of the intense behind-thescenes maneuvering going on
in the clash between labor and
management in the city’s construction business.
On the surface, construction
unions are attacking Gilbane
for hiring nonunion contractors
that they say aren’t fair to
workers, pay lower wages and
don’t adhere to top quality
safety standards. Mr. LaBarbera
said the company’s nonunion
subcontractors pay as little as
$15 per hour.
“It’s putting profits before
people,” says Mr. LaBarbera.
Mr. Gilbane said the company uses a mix of union and
nonunion contractors on its
jobs based on numerous criteria including cost. He also denied that any of the company’s
subcontractors pay as low as
$15 per hour.
Mr. Gilbane said the main financial difference between
union and nonunion contractors is that nonunion shops
don’t have many of the onerous
work rules that drive up costs,

like requiring expensive laborers to push buttons on automatic elevators.
“We’re not doing union
busting,” he said. “We are very
focused on putting the most
qualified, responsible companies and people on our projects.”
Tension between labor and
management has been part of
New York’s construction busiPlease see CLASH page A22

Here They Come

Ne

PETER GRANT/THE WALL STREET JOURNAL

Builder Riles Up
Labor Amid Push
Into NYC Market

New J

John Anderson III, Alexander Cole, Brennan Gilbane Koch, and
William Gilbane III, below, work for the family firm, Gilbane Building.

The PATH train, already
bursting at the seams, stands
to get more crowded amid a
building boom in northern
New Jersey, in another sign
the transit network is straining under the region’s population growth.

Apartment
buildings
springing up in Jersey City
and communities nearby are
funneling new riders onto the
PATH, whose lines run to the
World Trade Center and Herald Square in Manhattan.
Many passengers complain
of crammed commutes, or
having to wait for trains to
pass before boarding one that
isn’t packed—an experience
familiar to many New York
City subway riders.
“It’s just miserable,” said
Elliot Kelly, 24 years old, who
rides the PATH from Jersey
City each weekday morning to
work at a law firm in Manhattan. “It’s never nice to make a
commute when you’re 3 centimeters from someone else’s
body.”
As the PATH’s operator, the
Port Authority of New York
and New Jersey, considers improvements to expand the system’s capacity, questions linger over when they will be
completed and who should pay
for them.
Port Authority Chairman
John Degnan said Jersey City
shouldn’t approve new developments along the PATH’s
route without making sure the

system can handle the expected growth in riders.
“It’s irresponsible for a city
to allow indiscriminate growth
that’s going to tax public infrastructure beyond its capability,” Mr. Degnan said.
Jersey City Mayor Steven
Fulop faulted the Port Authority, which is jointly controlled
Please see PATH page A20

deep-pocketed donors when
she ran for governor, she surprised some of them when she
garnered more than a third of
the primary vote. She subsequently published a book on

political corruption.
In her run for Congress, she
has won the endorsement of
U.S. Sen. Kirsten Gillibrand, a
fellow New York Democrat, and
raised more than $500,000.
Aides to Mr. Cuomo didn’t respond to a question about who
he endorses.
Ms. Teachout has been a vocal advocate of a public campaign-finance system, but she
has proved skilled at private
fundraising in this race. Her donors include movie star Mark
Ruffalo, former Kickstarter executive Fred Benenson and Ben
& Jerry’s co-founder Ben Cohen. Much of her funding has
also come from small donors
through ActBlue, a political-action committee supporting
Democrats.
Ms. Teachout said she is

campaigning as hard as ever. “I
have spent my entire life speak-

ing out and raising people’s
voices and standing up to
power,” she said, “and I’ll keep
doing what I’ve done.”
By contrast, Mr. Yandik, a
Princeton University graduate,
has stressed his working-class
Hudson Valley roots. “I’m
someone who grew up here and
got a good education, and instead of moving to some other
city, I’ve come back,” he said.
Mr. Yandik, 38, in addition to
farming, works in local politics
and helps run a family bakery.
He called Ms. Teachout a newcomer to the area and said of
her celebrity backers: “Endorsements don’t win elections.”
The district is currently represented by Chris Gibson, a Republican who held the seat for
three terms but said last year
that he wouldn’t seek re-election in 2016. In the Republican
Please see RACE page A20

TODAY’S
HIGH

Weather
Real Feel
9 a.m. 72°

5 p.m. 82°
Record High
98° (1925)

SUNNY,
WARMER

Sunrise/Sunset
5:25 a.m./8:25 p.m.
Tuesday’s High

81°

N.Y. Sports Lineup
7:05 p.m. Monday
Angels @ Yankees

7:05 p.m. Monday
Mets @ Pirates

For N.Y. sports coverage, see A24


A20 | Monday, June 6, 2016

* ***

THE WALL STREET JOURNAL.

CITY NEWS

Roy Berendsohn teaches Ralph Gardner Jr. how to use a circular
saw, left. Above, Mr. Berendsohn shows the columnist how to
shovel, above, and stands with the finished beds, below.

T-B: RALPH GARDNER JR./THE WALL STREET JOURNAL (2)

hile I didn’t flunk
shop, I didn’t excel
at it either.
In fact, I still marvel that I
had any desire to become a
writer after the 500-word
punishment essays my shop
teacher handed out as casually as he did hammer and
nails. If anything can turn a
person off the essay form, it’s
repeatedly having to come up
with variations on the theme
of “Why I
Shouldn’t
Talk in
Class.”
My skill
with carpentry tools was
URBAN
hardly better
GARDNER
than it was
RALPH

with a Dixon
GARDNER JR.
Ticonderoga
#2 pencil. So
when my
family recently began to consider a raised-bed garden, I
took the liberty of enlisting
the help of Roy Berendsohn,
“Popular Mechanics” magazine’s “Ask Roy” columnist.
Why raised beds instead
of a conventional garden? I’m
not sure except that our Hudson Valley property is terrible for growing anything but
poison ivy. There’s approximately 2 inches of topsoil.
And from there to the center
of the earth it’s solid rock.
Per Mr. Berendsohn’s instructions, I purchased
wood, nails and a truckload
of topsoil before his arrival
at our home. All he had to
do was show me how to
measure, saw and nail together a few boards.
Or preferably do so himself why I feigned taking
notes.
But first I was curious to
learn a bit of Mr. Berendsohn’s biography; he’s been
at “Popular Mechanics” for
27 years. Specifically, did he
excel in shop class as a kid?
Impressively modest, Mr.
Berendsohn, 56 years old,

denied any special talent
recognized at an early age
for hammering a nail
straight.
“I did not have a mechanical gift,” he insisted. “I’ve
learned the hard way with
anything I’ve done. I tell

DEBORAH GARDNER

Raising the Beds, With Assistance From a Professional
W

people if I can do this, you
can do this.”
That was before he met
me.
He also had excellent role
models. There’s a touching
interview in June’s “Things
My Father Taught Me” issue
of Popular Mechanics where

both Mr. Berendsohn and his
91-year-old father, Oscar, are
interviewed.
Oscar, who fled the Nazis,
got an engineering degree
from the Polytechnic Institute
of Brooklyn (now the NYU

Tandon School of Engineering) and started working on

spy satellites. His workbench,
shown in the story, is a thing
of organizational beauty.
Roy also learned a trick
or two working construction
in western Connecticut as a
teenager. He still uses the
solid steel Estwing hammer
a boss gave him back then.

“It’s the hammer that put
me through college,” he said.
I couldn’t help asking
about mishaps, as Mr. Berendsohn pulled sawhorses
and a circular saw from the
back seat of his 2001 Chevy
Malibu. My attitude being
that the safest home im-

provement projects are those
you hire others to perform.
“When I was 17, I got a
finish nail in my right eye,”
he explained. “It bounced off
concrete. I never do this
work without some form of
eye protection.”
The accident caused no

permanent damage. Mr. Berendsohn blinked reflexively at
the incoming projectile and
trapped it with his eyelid.
Fortunately, there were
no mishaps as he sawed the
10-foot planks I’d purchased
into 6-foot and 4-foot sections to make the sides for
the raised beds.
I took command of the circular saw only briefly, mostly
to say I had. I also solicited
tips about some of the genteel chores I find myself occasionally tempted to accomplish: such as how to hammer
a nail into a wall or piece of
wood without bending it.
“You put your shoulder
over the nail,” he explained
as he did just that, nailing
two sections of the board together. “Start with a couple
of taps and drive it in.”
Mr. Berendsohn also
coached me on proper wheelbarrow shoveling technique:
“Get as close to it as possible. Align the long access
with the direction you’re
shoveling. You want to avoid
shoveling from the side.”
He’d already lost me.
But it turns out I’m
pretty good at pushing a
wheelbarrow downhill, if not
the advanced math Mr. Berendsohn employed to mark
off the wood.

However, the most complicated chore yet awaits—
figuring how to mount fence
posts in solid rock. Whatever
we grow in the beds will
have to be protected from
the woodchucks, which are
approximately the size and
ravenousness of black bears.
Mr. Berendsohn’s initial
suggestions included setting
fence posts inside concrete
blocks and stapling chicken
wire to the wood, or jackhammering.
He’s working on additional solutions.


Will Yandik, a Democrat, is running for Congress in a New York
state district that includes the Catskills and Hudson Valley.

RACE
Continued from page A19
primary, John Faso, former minority leader of the state Assembly, is battling businessman
Andrew Heaney.
The district is split about
evenly between Democrats and
Republicans, but politicians’
roots in the area have been a
heated subject in the past. In
2014, Democratic activist Sean
Eldridge ran against Mr. Gibson but was criticized for buying a multimillion-dollar home

in the area and moving there
shortly before announcing his
candidacy.
“He was right about many
things, but he didn’t understand what we’re all about,”
said Pamela Pine, a 69-year-old
retired designer and Columbia
County Democrat, of Mr. Eldridge. She is supporting Mr.
Yandik because she said he is
looking out “for the people who
live here.”
Mr. Eldridge, who lost to
Mr. Gibson by double digits,
donated to Ms. Teachout but
declined to comment for this
article.
Ms. Teachout, who grew up
in Vermont, lived in Brooklyn
during the 2014 primary but
moved north after that race.
She continues to teach law at
Fordham University but lives in
a Dutchess County home and
said she grew up in a similar
area. She move to Dutchess
County in 2015.
Ms. Teachout said she

worked with communities in
the district during the governor’s race and while advocating for public education issues

and developed deep relationships there.
Since announcing her candidacy, Ms. Teachout has appeared to some observers to
veer to the center. She called
for an economic study of the
Constitution Pipeline, a proposed natural-gas project that
has riled upstate New York. But
both candidates said they
agreed with a state decision to
reject it. Both candidates have
criticized New York’s strict
gun-control laws, saying the
process by which they were implemented was flawed.
Ms. Teachout said she is a “a
bit of a Teddy Roosevelt Republican,” adding “I like breaking up big banks, and I want to
take on big cable.” She has previously called herself a “Rockefeller Republican.”
Support for Mr. Yandik,
meanwhile, comes almost exclusively from within the district. Ms. Teachout has drawn
national attention.
Marvin Ammori, a Washington, D.C., attorney, donated to
Ms. Teachout, he said, because
they are friends and he believes
she will advocate for net neutrality, a broadband policy that
is important to him.
Ms. Teachout’s political
clout hasn’t gone to her head,
he added. “To see her now, doing this political thing and getting endorsements and dancing
at shindigs, she is still pretty
much just Zephyr.”

Continued from page A19

by New Jersey and New York
governors, for failing to properly plan.
“At the end of the day it’s
Port Authority’s responsibility,” Mr. Fulop said. “They
should stop putting blame
elsewhere. Every surrounding
municipality has grown.”
Apartments under construction or approved in Jersey City alone could usher in
an estimated 64,250 new residents, increasing the city’s
current population of about
264,000 by some 25%.
“We’ve got a brewing crisis,” said Dawn Zimmer,
mayor of neighboring Hoboken, whose constituents frequently complain of PATH
overcrowding.
The Port Authority forecasts the PATH will carry 88.4
million passengers in 2020, a
15% surge from 2015 levels.
The PATH’s experience
highlights a recurring planning disconnect between municipalities and regional transit systems. A building boom
in the trendy Brooklyn area of
Williamsburg in part forced
the New York’s Metropolitan
Transportation Authority to
spend hundreds of millions of
dollars to increase capacity on
the New York City’s L subway
line.
Much of the Port Authority’s attention over the past
year has focused on improving
other means for crossing the

Hudson River, including a replacement for Manhattan’s aging Port Authority Bus Terminal. Last year, the bus
terminal served 66.7 million
passengers, about 10 million
fewer than the PATH.
“Crowding will get worse
before it gets better,” said
Rich Barone, transportation
expert at the Regional Plan
Association, a civic group focused on urban planning in
the region. “This is the universal trans-Hudson story. Our
delay in implementing years
of planning to add new capacity will have consequences.”
Upgrades to PATH that
would allow run trains to run
more frequently—and help reduce crowding—aren’t ex-

JOHN TAGGART FOR THE WALL STREET JOURNAL

RICHARD BEAVEN FOR THE WALL STREET JOURNAL

PATH

Commuters pass a construction site for new condo buildings near the Grove Street PATH station.

Grab a Seat
PATH ridership
90 million
80
70
60

50
40
30
20
10

Projected

0
2010 ’12

’14

’16

’18

’20

Source: Port Authority of New York
and New Jersey

THE WALL STREET JOURNAL.

pected to arrive until the end
of 2018 at the earliest. A new
advanced signal system, which
is part of a crash-avoidance
system required by federal
law, would let PATH trains run

closer together, increasing capacity up to about 20%, Port
Authority officials said. Trains
could then run about every
two minutes during peak
times—as some of the busier
New York City subway lines do
during rush hours—instead of
every four to six minutes as is

the case now.
Until such upgrades are in
place, PATH’s plans to ease
crowding involve the expansion of rush-hour service, running trains more frequently
for longer periods.
Port Authority officials declined to specify plans for
other service improvements,
such as when the system
would begin running 10-car
trains on its Newark-to-World
Trade Center line, up from the
current limit of eight.
It remains to be seen
whether the Port Authority
will move forward with plans
to extend the PATH from Newark Penn Station to Newark
Liberty International Airport.
Mr. Degnan said the Port
Authority planned to seek
capital contributions from cities and developers that benefit from projects that increase
the PATH’s capacity and expand the system. That would

mark a shift in how the Port
Authority pays for PATH improvements.
Such a financial arrangement has recent precedent:
New York City effectively paid
for a new subway station at
the Hudson Yards development in Manhattan by issuing
bonds backed by expected increases in property-tax revenue.

Mr. Degnan said the Port
Authority couldn’t afford to
fund the PATH system’s operating deficits while also footing the entire bill for its future needs.
“We’re not a piggy bank,”
Mr. Degnan said. “We can’t
stand by and simply dole out
money because the mayor of a
town tells us that the development they’re planning in the
future requires it. It’s time for
them to step up to the plate.”
Unlike other transportation
agencies, the Port Authority is
largely funded by tolls it collects on Hudson River bridges
and tunnels and revenue from
the New York City area airports it operates. The MTA, by
contrast, derives a significant
amount of its operating and
capital budgets from state and
local funding sources.

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From You

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for brevity and clarity. Please
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THE WALL STREET JOURNAL.

Monday, June 6, 2016 | A21

* *

CITY NEWS

An image of the suspect from
a May 11 robbery in Queens.
BY MARK MORALES
Police say the robberies
play out briskly and in roughly
the same fashion: A stocky,
young man enters a fast-food
restaurant, brandishes a big
knife and demands cash.

He usually leaves with several hundred dollars, and, authorities say, the man has carried out 22 similar holdups on
Long Island and in New York
City since March 1.
About a dozen of the heists
have taken place in Nassau
County.
“The arrest of this individual is our number one priority,” said Nassau County Police
Department Detective Lieutenant Richard LeBrun, in a statement released Sunday.
The robber apparently
started his spree March 1 at a
Dunkin’ Donuts on Lakeville
Avenue in New Hyde Park, police said.
He most recently is suspected to have been involved
in a robbery Friday at a Subway restaurant on 108th
Street in the Forest Hills section of Queens, officials said.
“He caught us. We’re glad
no one got hurt,” sad Anthony
Malave, 22, a Subway restaurant employee who was inside
during the robbery on Friday

night.
Mr. Malave said he and another co-worker were inside
the store about 9:30 p.m. making preparations to close when
a man walked quickly inside.
He wore sunglasses and
flashed a knife, Mr. Malave
said. Images captured on a
surveillance camera show the
man holding out the knife before making his way to an area
designated for employees only.

Officials said the man said,
“ ‘Give me the money,’ ” before grabbing a tray of cash
from the register and making
off with as much as $300.
“It was a very quick process. He made it clear what he
wanted,” said Mr. Malave. “We
were alone, so there’s nothing
much we could do.”
Before the Subway restaurant robbery in Forest Hills,
the robber took $400 on June
1 from a Subway restaurant on
Northern Boulevard, police
said.
Before that, on May 25, the
thief targeted a Dunkin’ Donuts on Cross Bay Boulevard
in Queens and made off with
$776 in cash, police said.
New York Police Department Chief of Detectives Robert Boyce said the suspect selects fast-food restaurants
located close to highways.
Detectives are combing
through surveillance footage.
They think he parks several
blocks away from the store he
chooses to rob, Chief Boyce
said.
“He walks in and produces
a large butcher’s knife that he
uses for each one and puts it
back into his pant leg when he
leaves,” Chief Boyce said.

Police say the man appears
to be in his 20s.
He stands about 5 feet 9
inches tall and was last seen
wearing a gray hooded shirt,
black jeans and black boots,
police said.

PETER J. SMITH FOR THE WALL STREET JOURNAL

NEW YORK CITY POLICE DEPARTMENT

Police Hunt Man Support for Israel on the Upper East Side
Wielding Knife
In Robbery Spree

RAIN OR SHINE: Seth Kofina of Rockland County blows a shofar in the Celebrate Israel Parade that traveled up Fifth Avenue on Sunday.

Cuomo Counters Boycotts of Israel
BY ZOLAN KANNO-YOUNGS
New York Gov. Andrew
Cuomo signed an executive order Sunday to divest state
funds from businesses supporting a boycott against Israel.
Mr. Cuomo said the boycott,
divestment and sanctions
movement “is in many ways
more frightening” than tunnels
Hamas constructed to infiltrate
Israel.
“We are against the BDS

movement and it’s very simple,” Mr. Cuomo said in remarks at the Harvard club in
Midtown before marching in
the Celebrate Israel Parade on
the Upper East Side. “If you
boycott against Israel, New
York will boycott you.”
The order would prevent
state agencies and departments from investing in companies boycotting Israel. The
state Office of General Services

SETH WENIG/ASSOCIATED PRESS

Polynesian Tradition Sails Into the City

ALOHA, NEW YORK: Crew members of the Hokule’a sing Sunday from aboard the vessel in
Manhattan. The Hawaiian voyaging canoe is sailing around the world and to promote conservation.

Greater
New York
Watch

day he was in the surgical intensive care unit.
Mr. Khan, a U.S. citizen of
Guyanese heritage, was wearing
traditional Islamic attire when he
was attacked, according to Ms.
Nasher, who visited Mr. Khan in
the hospital Sunday.
She said nothing was stolen
in the attack.

—Zolan Kanno-Youngs

QUEENS
BROOKLYN
Group Says Attack
May Be a Hate Crime Four Men Shot Near
A leading Muslim civil-rights
Amusement Park

organization Sunday called on
the New York Police Department
to investigate the possibility of a
hate crime in Queens.
The NYPD Hate Crimes Task
Force was notified of last week’s
incident, officials said, and the
investigation is continuing.
Mohamid Rasheed Khan, 59
years old, was near the Center
for Islamic Studies on Jamaica
Avenue on Wednesday, when he
was attacked, said Afaf Nasher,
the executive director for the
New York Chapter of the Council
on American-Islamic Relations.
Mr. Khan was riding his bicycle when he was hit in the face
and knocked over, causing his
head to slam on the ground, a
law-enforcement official said. He
was taken to Jamaica Hospital

Medical Center, where on Sun-

Police said four men were
shot and wounded Sunday on a
Coney Island street, near the
famed amusement park.
Authorities didn’t immediately
know the circumstances of the
shootings on Neptune Avenue
just before 3 p.m.
Two of the men were admitted to Coney Island Hospital, and
two others to Lutheran Medical
Center. Each was in stable condition. Their names weren’t immediately released.
—Associated Press
THE BRONX

Unconscious Woman
Found on Roadway

Authorities are trying to identify a woman who was found
unconscious and badly injured on

a Bronx roadway.
Believed to be in her 30s, the
woman was in critical condition
at Jacobi Medical Center. Her
left arm is tattooed with a
flower, rosary beads and a Biblical quote that starts with the
words “I will fear no evil…”
She was discovered late Friday on an entrance ramp to Pelham Parkway, with trauma to

her head and her arm cut. Investigators are trying to determine
the cause of her injuries.
—Associated Press
NEW YORK STATE

Public Defense Funds
Change Is Proposed

New York’s Assembly has
passed legislation to gradually
transfer responsibility to fund
public defenders from the counties to the state.
Assembly member Patricia
Fahy, an Albany Democrat, said
the bill would relieve the burden
from counties, where services
and funding are uneven.
Under current law, New York
City and the 57 counties outside
it are required to fund attorneys
for criminal defendants unable
to afford one.
A companion bill with 20 cosponsors has been introduced in
the Senate.
—Associated Press

will develop a list of those institutions and companies and
post it online within 180 days.
The office will notify the businesses before adding them to
the list and give them 90 days

to show proof they aren’t supporting the boycott.
The Palestinian BDS National Committee, which coordinates the initiative, didn’t return a request for comment.
The committee’s website describes the movement as “a
strategy that allows people of
conscience to play an effective
role in the Palestinian struggle
for justice.”
Mr. Cuomo said New York
was the first state to issue
such an such an order.
A Republican-sponsored bill
with similar aims as Mr.
Cuomo’s order passed the state
Senate in January. Senate majority leader John J. Flanagan,
a Long Island Republican, ap-

plauded the order.
In a statement provided
through a spokesman, Donna
Lieberman, executive director
for the New York Civil Liberties Union, said the group
would be looking “very closely
at this executive order.”
“Whenever the government
creates a blacklist based on
political views it raises serious
First Amendment concerns and
this is no exception,” Ms. Lieberman said.
On Sunday, Mr. Cuomo, a
Democrat, also expressed disapproval of some Democrats

who have criticized Israel for
its response to Hamas in the
2014 Gaza war. “How can you
have a disproportionate response when you are dealing
with an enemy who is obsessed and single minded?” he
said.
Vermont Sen. Bernie Sanders, running against Hillary

Clinton for the Democratic
presidential nomination, has
said he thought Israel’s response in the seven- week
Gaza conflict was disproportionate. Mr. Sanders’s campaign didn’t return a request
for comment.
Mr. Cuomo, who has endorsed Mrs. Clinton, didn’t
mention Mr. Sanders’s name.
Mrs. Clinton, during a debate in April with Mr. Sanders
in Brooklyn, expressed sympathy for Israelis who she said
are constantly under terrorist
attack.
After Mr. Cuomo’s speech,
Rep. Jerry Nadler, a Democrat
whose district covers portions
of Manhattan and Brooklyn,
criticized Mr. Sanders. “A response is disproportionate if it
is more destructive of life or
property that is necessary to
accomplish its military objective,” he said.


A22 | Monday, June 6, 2016

* ***

THE WALL STREET JOURNAL.

PROPERTY MONDAY
Developers Bank on New York City’s Aging Population

A rendering of Welltower Inc. and Hines’ 15-story senior living
community, left, and a current view of the block at the northeast
corner of East 56th Street and Lexington Avenue, above. Below, a
rendering of an assisted living residence planned by Maplewood
Senior Living and Omega Healthcare Investors for Second Avenue
between East 93rd and East 94th streets.

CLOCKWISE FROM LEFT: SLCE ARCHITECTS; PETER J. SMITH FOR THE WALL STREET JOURNAL; HANDEL ARCHITECTS

necessarily a sure bet. The
business is labor intensive,
heavily regulated and requires
experienced operators, industry experts said.
“The challenge is operating
something in New York that is
compelling for people to move
into when you can stay in
your co-op and have full ser-

vice in terms of maintenance
and doorman and porters and
everything delivered to your

door,” said John Moore, chief
executive of Atria Senior Living Inc., a national operator
which manages four New York
City senior housing communities, including one on Manhattan’s Upper West Side.

Still, some see opportunity.
Maplewood Senior Living and
its partner Omega Healthcare
Investors Inc., a real-estate investment trust focused on the
long-term care industry, were
determined to establish a
presence in the Manhattan
market. The companies had to
negotiate with several parties

What’s the
Deal
QUEENS

The owner of an office building in the Forest Hills section of
Queens is replacing a departing
government tenant with local
organizations seeking headquarters space in the neighborhood.
Muss Development has
signed 43,000 square feet of
new leases at 118-35 Queens
Blvd., known as Forest Hills
Tower. The building, which Muss
constructed in 1981, is undergoing a multimillion-dollar renovation, said principal Jason Muss.
In 2012, Muss arranged a

hasty, 200,000-square-foot
lease with the Federal Emergency Management Agency to
set up its New York City headquarters after Hurricane Sandy.
The government agency is giving back space and will fully depart the building by the end of
the summer, Mr. Muss said.
With the available space,
Muss signed a 12-year lease
with the Child Center of New
York to take 21,808 square feet
on the sixth floor. Plaza College,

CLASH
Continued from page A19
ness for decades. But it has
been intensifying lately partly
because nonunion contractors
have been making major inroads in what used to be an allunion town. As recently as the
1980s, all residential projects in
the city used union labor exclusively. Today it is about half
that much.
Unions still dominate commercial and institutional construction. But that too is showing signs of slipping.
“The nonunion contractors
became steadily more skilled
and able to take on bigger
pieces of work, and the unions
didn’t see it in time,” said Denise Richardson, executive director of the General Contractors Association of New York,
an industry group that repre-

ALAN SCHINDLER PHOTOGRAPHY

Forest Hills Tower
Signs New Tenants

Forest Hills Tower at 118-35 Queens Blvd., where Child Center of New York has signed a lease.

to secure the assemblage of
five buildings for their site on
Second Avenue between East
93rd and East 94th streets,
said the company’s chief executive Gregory Smith.
Maplewood and Omega are
planning a $246 million senior-housing high rise there
with apartments and special-

ized services, including care
for those with varying levels
of dementia. The project will
also have an indoor pool,
beauty salon and terrace.
“Even knowing there were
high barriers to entry, we
stood our ground and decided
that was a market we wanted
to be in,” Mr. Smith said.

revealed the average asking rent
for this market niche was
$99.94 a square foot in the first
quarter, up 0.5% from $99.43 in
September 2015—when the index was updated previously.

Landlords are maintaining
pricing levels but likely will continue to offer robust tenant concession packages with free rent
and allowances for tenants to
build out their offices, said Cynthia Wasserberger a JLL managing director.
In previous economic cycles,
asking rents in trophy buildings
showed sharp increases, rising
127% between 1997 and 2000
and 82% between 2003 and
2007, the report noted. Since
2009, average asking rents have
steadily increased by 36%. The
first quarter’s average asking
rent was 17% below the 2007
peak of $120.22.
“We are sort of chugging
along,” Ms. Wasserberger said.
“Rents aren’t too out of whack the
way they were in 2000 and ‘07.”
—Keiko Morris

May surveyed 2,000 investors
and startup firms, mostly in the
U.S., aiming to get a sense of
key players’ views on where the
sector is headed in 2016.
About half of the investors
said they expect to see more acquisitions in 2016 than 2015, and
87% said they anticipate making
the same number or more investments in real estate technology, according to the Global Real

Estate Tech Confidence Index.
None of the investors said they
expect to see fewer real estate
tech deals this year.
Meanwhile, about 44% of
startup founders expect raising
venture capital in 2016 will be
harder than in 2015, with 39%
saying it will remain the same as
last year and about 17% expecting
fundraising to be easier this year.
Startups also are pessimistic
about exit opportunities, with
44% reporting it is unlikely or very
unlikely their firm will be acquired,
go public or have a major liquidity
event in the next two years. Only
17.4% said such transactions were
likely or very likely.
Startups, however, aren’t entirely skeptical about the year
ahead, saying they plan to hire
aggressively, with 39% planning
to hire six to 20 employees this
year and 12% indicating they
would hire up to 50 workers.
The Real Estate Board of New
York reviewed the survey’s
methodology and analysis.
—Keiko Morris

a current tenant, signed a 15year lease for 21,107 square feet
on the third floor. After the expansion, Plaza College will occupy 61,107 square feet there.
The Child Center of New York,
founded in 1953, offers programming, education and counseling
to children in Queens. Its current
headquarters in Woodside has
become overcrowded, said
spokeswoman Eugenie Bisulco.
“The new space is bettersuited to accommodating our
growth,” she said. “Forest Hills is

a more central location, putting
us nearer to our wellness centers and partner schools in Jamaica and South Queens.”
Brittany Travis, a spokeswoman with Plaza College, said
its expansion will be used for
classrooms and administration
“to accommodate the new and
exciting programs we are planning to offer in the near future.”
Asking rents at the building
range from mid- to- high $30s a
square foot.
—Emily Nonko

Average asking rents at Midtown Manhattan trophy towers
increased slightly from the fall,
indicating landlords are holding
firm on rental pricing, according
to a JLL report.
The Hedge Fund Index, which
tracks 24 high-end buildings

with a high concentration of
boutique hedge funds and investment management tenants,

Investors are more bullish
about the real estate tech sector
this year than startup companies
are, according to a new survey.
MetaProp NYC, a real estate
technology accelerator, seed investment and advisory firm, in

sents infrastructure contractors
that exclusively use union
workers.
Gilbane stepped into the picture as this sea change was taking place. Founded in 1873 by
an Irish immigrant, the company has built several billion
square feet of space over the
decades and today has more
than 50 offices world-wide.
The company, which is 100%
family owned, did its first
building project in New York in
1940, but its work here has
been limited until recently. The
company began flexing its muscles in the city after the 2008
financial crisis as part of a
strategy to focus more on urban
areas throughout the country.
Mr. Gilbane said that the
company currently is working
on about $1.1 billion worth of

New York projects, up from
$250 million four years ago.
The firm has grown from 80
employees in the city in 2008

to about 350, including three
other family members, Alexander Cole, John Anderson III and
Brennan Gilbane Koch.
Gilbane’s newcomer status
helps explain why it is a leader
in pushing the use of a mixture
of nonunion and union contractors. Homegrown construction
companies have been more
steeped in the city’s uniondominant culture.
Union leaders say they began perceiving Gilbane as a
threat recently as it took on big
jobs that traditionally would
have been exclusively union,
like 1 Wall Street. That 1-million-square-foot office building
is being converted by developer
Harry Macklowe into residential and retail space. Gilbane is
using both union and nonunion
contractors on that job.
“We’re not talking about 20story residential buildings,”
said Mr. LaBarbera. “We’re
talking about very complicated

projects that historically have
been all union jobs.”
Gilbane also is in unions’

crosshairs because other big
construction companies have
started to balk at renewing collective-bargaining agreements.
The big firms “feel as though
economically they’ve been
forced into this position,” Ms.
Richardson said. “They’re going
to do exactly what Gilbane has
done: open their subcontractor
packages up to union as well as
nonunion firms.”
Mr. Gilbane said the company doesn’t like being subject
to such attacks, but it has no
plans to change its method for
choosing contractors. He expressed hope that his company
and unions will be able to find
common ground.
“There will be a meeting in
the middle here that will be
healthy for everybody,” he said.
—Laura Kusisto
contributed to this article.

A union protest outside Gilbane’s downtown offices in May.

MIDTOWN

Office Asking Rents
Are Ticking Higher

NEW YORK

Investors Are Bullish
On Real Estate Tech

PETER GRANT/THE WALL STREET JOURNAL

Continued from page A19
have health and memory issues,” said Chris Merrill, chief
executive of Harrison Street
Real Estate Capital LLC, a private-equity firm. The firm and
its partner, the Engel Burman
Group, own 13 senior communities offering assisted living
and memory care services in
the surrounding New York
City area. He noted, “there is
a real need for quality assisted living and memory
care.”
By 2040, the city’s population of residents ages 60 and
older is expected to reach 1.86
million—up 22% from 2013—
and make up more than 20%
of the population, according
to projections from the New
York City Department for the
Aging.
“For Hines, what we liked
about this as an economic
matter [is] it’s on a demographic curve and not an economic cycle,” said Tommy
Craig, senior managing director at Hines, which will make

its first foray into senior
housing with this Midtown
development.
Home prices also make the
New York City region attractive, because many potential
residents will use the equity
in their homes to pay for senior housing, said Beth Mace,
chief economist of the National Investment Center for
Seniors Housing & Care, or
NIC, an educational and research nonprofit that tracks
the market. The median home
value in the New York metropolitan area is $404,000,
while the U.S. average is
about $207,000, according to
NIC.
The large presence of adult
children of the elderly living
in the New York area is also a
strong driver in the senior
housing industry, she said.
“You see a lot of marketing
efforts not just to residents,
but to their children as well,”
said Ms. Mace. “Adult children
decide where the adult parent
is going to go.”
The project may be addressing a demand, but it isn’t


THE WALL STREET JOURNAL.

Monday, June 6, 2016 | A23

* *

ARTS & ENTERTAINMENT

Going Behind the Scenes at Governors Ball Festival
BY LEAH LATELLA
The sixth annual Governors Ball Music Festival
kicked off this past Friday on
Randall’s Island Park before
closing down early Sunday
due to inclement weather.
The three-day, New York City
based festival hosted 66

bands and 55 food trucks,
many by New York restaurants. Around 45,000 daily
fans flocked to the grounds
by both bridge and ferry and
55% were local from the surrounding boroughs.
In true New York style,
every inch of green space
was occupied to its maxi-

mum capacity while the
crowds enjoyed this sold out
event. Behind the scenes,
4,500 staff members and

600 volunteers helped keep
things running smoothly.
We got an inside look at
some of the artists and what
they can’t live without at
this homegrown festival.

Albert Hammond Jr.:

Holly Miranda:

Meg Mac:

American singer-songwriter
Holly Miranda brings on stage
with her a special rock that
she picked up during a
meditative music event near
Joshua Tree National Park in
southern California. ‘So now I
carry it around and I feel like I
am carrying a little bit of that
energy or that power with
me,’ she said.

While on tour with D’Angelo, Australian singer-songwriter Meg
Mac noticed he always wore a hat. So she tried it out as well.
‘Once I started wearing it, I couldn’t perform without it. It feels
powerful when you wear a hat,’ she said.

Bloc Party:
Kele Okereke, frontman for the English indie rock band Bloc Party, center, uses an iPod for his routine
vocal warm up before every performance, which gets him in the mood for singing. ‘When I pull it out,
people look at me a bit funny because not many people have iPods anymore,’ he said. ‘I still keep it real
with a BlackBerry, so it’s very useful to me to have my entire music library in one place.' Their lineup
also includes from left, Justin Harris (bass), Louise Bartle (drums) and Russell Lissack (guitar).

ALEX SCOTT FOR THE WALL STREET JOURNAL (5)

American songwriter and guitarist Albert Hammond Jr. of the Strokes has played the same
Fender Stratocaster since 1998. ‘Oh, it’s priceless. I’ve had it since the beginning,’ he said. Behind the
Big Apple stage, Mr. Hammond tells the story of how a quest to find a guitar repairman in
Manhattan started a chain of events that led him to the guitar and introduced him to J.P. Bowersock,
his guitar teacher and guitar guru for the Strokes’ first album. ‘Meeting this guy on the street kind of
has this whole thing that connects with my entire history of music, which is pretty crazy,’ he said. ‘It
was that year where stuff happened to me where I was like, that’s impossible.’ He continued, ‘It was
amazing. It was like, oh New York was the right move for me.’


A24 | Monday, June 6, 2016

* *

THE WALL STREET JOURNAL.

SPORTS

Injuries Take Toll on Mets

The Garden Staged

Ali’s Biggest Fight

BY ANDREW BEATON

From “The Rumble in the Jungle” to “The Thrilla in Manila,” Muhammad Ali’s title fights spanned
the globe. But the biggest battle of
his career was reserved for New
York City.

Take a Number
LYNNE SLADKY/ASSOCIATED PRESS

MIAMI—Please excuse Terry Collins for needing to make a joke.
“We may only have seven guys tomorrow,” he cracked before Sunday’s
1-0 loss to the Marlins.
The Mets entered this series
against the Marlins missing most of
their starting infield—Travis d’Arnaud, Lucas Duda and David Wright.
Then when Yoenis Cespedes and
Juan Lagares went down with injuries on Saturday, Collins had all sorts
of issues.
He pulled Lagares from the game
to get his thumb examined by a doctor, but couldn’t find one. “There was
no doctor to see Juan, I know that. If
anybody’s qualified, please step forward now,” Collins said.
After Saturday’s game, Collins
tried calling Mets executives in New
York to inquire about roster moves.
He couldn’t connect with them.
So there’s definitely something

comical about all of this, making Collins’s inclination to crack jokes understandable. Although there’s nothing funny about the injuries
themselves or the threats they pose
to the season, they did survive the
weekend rather well. After all, they
took two of three games from Miami,
only losing against the utterly dominant Jose Fernandez, who struck out
14 and kept the Mets scoreless on
Sunday.
The other reason to be cheery:
The Mets’ patchwork lineup showed
surprising promise. The Mets scored
six runs in each of Friday and Saturday’s back-to-back wins after a frigid
May during which the team averaged
only three runs per game.
They got key contributions from
catcher Rene Rivera, first baseman
James Loney and third baseman
Wilmer Flores, all of whom came
through with big hits. Backups Matt
Reynolds and Alejandro De Aza made
key contributions, while outfielder
Michael Conforto broke out of an 0for-20 slump at a time when his bat
is vital.
In Sunday’s loss, Matt Harvey had
his second consecutive stellar outing,
allowing just one run on four hits in
seven innings. This came after his
struggles had become so severe
there were talks of removing him
from the starting rotation, a question

Neil Walker was one of the few healthy starters in the lineup on Sunday.

The Injured List
A look at injuries to Mets’ position players.
PLAYER

INJURY

STATUS

Travis d’Arnaud C
Lucas Duda 1B
David Wright 3B
Yoenis Cespedes OF
Juan Lagares OF

Rotator cuff strain
Back (stress fracture)
Neck (Herniated disc)
Hip
Thumb (sprained)

DL; Began rehab assignment playing DH on Sunday
DL; Likely out until at least late June or July
DL; Out a minimum of six to eight weeks
Day-to-day; has flared up previously
Seeing doctor in New York on Monday

he defiantly rejected his last time out

with a seven-inning, two-hit shutout
against the White Sox. “Today was, I
guess you could say, a second step
from last start,” Harvey said.
As for the injuries, Cespedes is
day-to-day with a sore hip, an injury
that has flared up in the past but
isn’t considered serious. He was
taken out of the starting lineup Saturday and pinch-hit on Sunday, with
the team hoping to have him back for
the upcoming series in Pittsburgh.
Lagares’s status is less clear. During Saturday’s game, he made a diving catch to rob Ichiro Suzuki of an
RBI-hit but in the process injured his
thumb and later had to be removed
from the game. It has been diagnosed as a sprain before he visits
with doctors in New York, and he
said he hopes to be back in Pittsburgh for game time on Monday.
It’s also unclear how the Mets will

proceed: Can they weather the storm
with a lineup filled with players who
began the year in Triple-A, or will
they need to look for outside help?
The good news is that the heralded starting rotation is finally
clicking on all cylinders with Harvey
finally looking like his old self. Mets
starters have a 3.17 ERA on the season, the second lowest rotation ERA
in baseball, and that figure may even
drop with Harvey’s improved form.
Now the pressure is on for Harvey

and the other Mets aces to dominate.
“No matter what our lineup may
look like or injuries we have, you
have to stay focused and do everything you can to put up zeroes,” Harvey said. “We could have the best
lineup in the world, we could have
the worst lineup in the world. Obviously, our job is to go out and go as
deep into the game as we can and
fight for zeroes.”

On March 8, 1971, Madison
Square Garden was the site of his
“Fight of the Century” with Joe Frazier. The showdown, in which Ali
was trying to reclaim the belt that
had been stripped from him for refusing to be drafted, brought together two undefeated heavyweight champions, drew a
worldwide audience of 300 million
and was broadcast in 12 languages.
Ringside seats were scalped for
$1,000 (nearly $6,000 in today’s
money.) Each fighter earned the
equivalent of about $15 million today, or about 17 times the salary of
the highest-paid baseball player of
the time, Carl Yastrzemski.
After a three-and-a-half-year exile from boxing, Ali returned a
much different, less evasive fighter,
content to battle the southpawslugging Frazier toe-to-toe. After
dominating the early going, Ali lost
the vast majority of the remaining
rounds according to the official
scorecards, with Frazier winning a
unanimous decision. But, unofficially, the United Press International

scored the fight a 7-7-1 draw. Ali
suffered the only knockdown after
being hit flush with a Frazier left
hook in the 15th round. But Frazier,
his face badly swollen and misshapen, was in and out of hospital
for two weeks following the fight.
Ali’s rivalry with Frazier would
continue after the latter lost his title to George Foreman. Their rematch at the Garden on Jan. 28,
1974 saw Ali take a narrow win by
decision thanks to his tactic of
clinching Frazier by the back of the
neck every time he tried to move in
to attack. After Ali’s shocking upset
of Foreman in Zaire just nine

months later, the pair continued
their epic rivalry with 1975’s “Thrilla
in Manila,” in which Ali prevailed
again by TKO after Round 14.
That ensured their epic rivalry
ended with Ali holding a 2-1 edge
in the ring, although that may be
underselling his record. The day before their second fight in New York,
Ali also prevailed over Frazier in the
marbles ring—on the city’s Sunday
morning kids’ TV show, “Wonderama.”
—Michael Salfino

Fight of the Century
Some noteworthy facts from the

first bout between Muhammad Ali
and Joe Frazier.
Date
Venue

Joe Frazier’s
26-0, 23 KOs
record
Muhammad
31-0, 25 KOs
Ali’s record
Ringside seat
$150 ($886)
(2016 dollars)
Scalper ringside $1,000 ($5,908)
(2016 dollars)
Crowd
20,455
Guaranteed
$2.5 million ($14.8
purse (2016
million)
dollars)
Worldwide
300 million
viewership
AP scorecard
9-5-1 Frazier
UPI scorecard
7-7-1 Draw

Knockdowns
Ali in Round 15
Frazier by
Result
unanimous decision
WSJ

OLD-TIMERS’ DAY
MORE THAN A GAME

sunday, june 12
Arrive early!
ceremonies promptly begin at 11:30 a.m.

@

2:05 p.m.
#THISISBASEBALL

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FOR TICKETS: (877) 469-9849 OR (800) 943-4327 (TTY)

NOTICE: For the safety of every Guest, all persons specifically consent to and are subject to metal detector and physical pat-down
inspections prior to entry. Any item or property that could affect the safety of Yankee Stadium, its occupants or its property shall not be
permitted into the Stadium. Any person that could affect the safety of the Stadium, its occupants or its property shall be denied entry.
All seat locations are subject to availability. Game time, opponent, date and team rosters and lineups, including the Yankees’ roster and
lineup, are subject to change. Game times listed as TBD are subject to determination by, among others, Major League Baseball and its
television partners. Purchasing a ticket to any promotional date does not guarantee that a Guest will receive the designated giveaway
item. All giveaway items and event dates are subject to cancellation or change without further notice. Distribution of promotional items
will only be to eligible Guests in attendance and only while supplies last.

OOF
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March 8, 1971
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UPI/PICTURE-ALLIANCE/DPA/AP


MEDIA B5 | WEATHER B6 | CROSSWORD B6

BUSINESS & TECH.

Pentagon Hires
Foreign Supplier

Alcohol Price
Ruling on Tap

Djokovic Makes
History in France

TECHNOLOGY | B3

BUSINESS NEWS | B6

SPORTS | B7

© 2016 Dow Jones & Company. All Rights Reserved.

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THE WALL STREET JOURNAL.

Monday, June 6, 2016 | B1

GM Bets on Virtual Stores
Buyers walking into a Cadillac dealer in the near future
could find an interesting thing
on the car lot: nothing.
By Christina Rogers,
John D. Stoll and
Gautham Nagesh
General Motors Co.’s luxury
division has about three times
as many U.S. stores as German
luxury auto makers or Toyota
Motor Co.’s Lexus, but sells
only about half the volume.
Short of steering around rigid
state franchise laws and hammering out financial settlements to shutter stores, a plan

is being hatched to convert a
portion of Cadillac’s 925 stores
into virtual dealerships that
will be low on overhead and big
on sophisticated technology.
In a somewhat unprecedented way of moving metal,
Cadillac President Johan de
Nysschen will this month begin looking for commitments
from some store owners willing to set up showrooms
where buyers can get a car

serviced or learn about products via virtual reality headsets without getting behind
the wheel. Driving off immediately with a new vehicle will
be impossible because these
stores won’t have inventory.
Virtual stores are a part of
“Project Pinnacle,” an extensive retail-strategy overhaul by
Mr. de Nysschen first introduced to dealers a few months
ago in closed-door meetings,

dealers said. Hired by Chief
Executive Mary Barra in 2014
to turn the struggling luxury
maker around, Mr. de Nysschen is revamping the way the
company compensates its dealers by rewarding them less on
the basis of vehicles sold and
more on the way those dealers
mimic better performing luxury brands with perks such as
free roadside assistance.
Company executives will
solicit commitments during a
roadshow that starts in June,
traveling to about a half-dozen
cities to win over dealers confused or even angered by a
plan that could be seen as a
way to force the smallest of
dealers out of business, according to GM and several
dealers. Mr. de Nysschen
wants to know which of five
tiers of dealers those store
owners want to fit in, includ-

ing whether some of the dealerships with the lowest volumes would be willing to go to
tier 5, which is virtual.
Regarding virtual dealerships, a GM spokesman said Cadillac is working on the concept
and researching technologies.
Mr. de Nysschen came to Cadillac amid GM’s ignition-switch
crisis and his aggressive stance
to clean up a luxury brand in
disarray has been the subject of
some complaints within the
dealer body, according to dealers and executives familiar with
the matter.
Many dealers view Mr. de
Nysschen’s ability to push
through Project Pinnacle as a
test of his staying power at a
company that has in the past
squeezed out managers who
ruffled too many feathers. Mr.
de Nysschen wasn’t available
Please see DEALER page B2

2,500
Lexus
344,601 vehicles
sold in 2015
2,000

1,500
BMW

346,023
VEHICLE SALES PER DEALER

Cadillac plans to turn
some of its dealerships
into VR showrooms;
headsets, but no cars

Large Dealer Footprint
Cadillac sells fewer vehicles in the U.S. than many luxury-car
rivals but has far more dealers.

Mercedes
372,977

1,000
Infiniti
133,498
Acura
177,165

500
Volvo
70,046
0

200
400
600
APPROXIMATE NUMBER OF DEALERS

based on oil priced at $45 a
barrel, operators say; premium
wells are generating greater
profit.
In part, returns benefit
from access to established
pipeline, storage and other infrastructure. Drillers in both
areas have been able to find
energy stacked in layers underground. Some producers
also are tapping holdings that
were acquired long ago, when
acquisition costs were lower.
Continental
Resources
Inc., which helped spark the
North Dakota boom, says its
best wells today are in the
Stack—a well-trod part of
Oklahoma near Cushing, Okla.,
a major oil storage and trading hub. The company says its
drilling there can yield a 75%
return with oil at $45 a barrel.
Please see OIL page B2

America’s oil and gas producers are still finding places
where they can prosper even
at today’s lower prices.
Companies are refocusing
their drilling efforts on the

Permian Basin in Texas and
New Mexico and rushing into
a part of Oklahoma known as
the Stack where they can
claim solid returns.
While small in terms of
overall production, the move
is gathering steam, even as
drilling in places like North
Dakota and Pennsylvania remains sluggish.
Wells in the Permian and
the Stack—which stands for
Sooner Trend, Anadarko basin,
and Canadian and Kingfisher
counties—are racking up between 10% and 30% returns

KANSAS

Cushing

Stack
ANN SAPHIR/REUTERS

TEXAS

Tulsa

Oklahoma City
Cana d ian

R.

OKLAHOMA
100 miles

THE WALL STREET JOURNAL.

Source: RS Energy Group

LARAINE WESCHLER/REPUBLICAN-AMERICAN/AP

Google’s Chrome OS Steals a March on Rivals
F
and power, I increasingly
think it is the future of computing.
That view is gaining adherents. In the first quarter,
Chrome OS devices outsold
products using Apple Inc.’s
Mac OS for the first time.
Chrome OS devices still
account for only 10% of personal-computer sales in the
U.S. and 2.5% of PC sales
world-wide, according to
Linn Huang, a director of research at IDC. But IDC expects sales of Chrome OS devices to increase nearly 30%
this year, far outstripping
the PC market’s overall
growth.
Here’s why I agree: For
most of what people need to
accomplish on a computer,

Chromebooks have had notable success in the education market.
Chrome is just better.
Chrome was designed to
be an operating system that
relies on the cloud—basically
a machine that primarily

runs a web browser. As a result, it does things that no
other desktop operating system does, but that we have
come to take for granted in

1,000

THE WALL STREET JOURNAL.

BY ERIN AILWORTH

or most of my working
life, I have used Macs
at home and Windows
PCs at work. But a couple of
years ago, intrigued by a
change in the winds of computing—
from the
desktop to
the cloud—
I decided to
give
Google’s

KEYWORDS
ChromeCHRISTOPHER books a
MIMS
chance.
Now, to
my surprise, I use the Chrome operating system for all my nonmobile computing.
Thanks to continuous improvements in its usefulness

800

Sources: the companies; McKinsey; Automotive News

Oil Drillers Have a Few Sweet Spots Left

A drilling rig in the Permian Basin, a region that still yields solid returns for American oil producers.

Cadillac
188,794

mobile operating systems.
Chrome is fast, even on
relatively weak hardware,
which is why a decent
Chromebook can be had for
less than $300. Like a mobile
OS, it updates automatically.
But unlike every other OS
I’ve ever used, these updates
are invisible, unavoidable,
occur only in the background, and never seem to

slow down the machine.
All of this is deliberate,
says Rajen Sheth, a director
of product-management for
Chrome. “What resonates
with users is simplicity, security, shareability and speed,”
he says.
Chromebooks have seen
tremendous success in the
Please see MIMS page B4

Combining
Medicines
For Cancer
Gets Costly
BY PETER LOFTUS
CHICAGO—Cancer researchers see promise in giving patients combinations of multiple
drugs that are proving more effective than one or two. But the
strategy poses a dilemma for
health insurers and patients:
even higher prices.
Researchers said at a medical meeting here Sunday that
adding a third drug, Johnson &
Johnson’s Darzalex, to an older
two-drug combination for patients with multiple myeloma
significantly slowed the blood
cancer’s growth compared with
the older two-drug combination
alone in a clinical trial.
But the combined cost of the

drugs—based on current list
prices and the dosing schedule
used in the study—would be at
least $180,000 for the first full
year of treatment for the average patient. Darzalex, which
was introduced last year, costs
about $134,550 for the first
year and $76,050 each year
thereafter, a J&J spokesman
said.
High prices for new cancer
drugs and repeated increases
for some older ones have
sparked criticism from doctors,
patients and insurers, who say
the costs are straining budgets
and often seem unrelated to
how well the drugs work. The
spread of combination treatments threatens to heighten
this tension.
“We have to think about if
the benefit from combination
therapies is worth the cost,”
Daniel Goldstein, a medical oncologist at Rabin Medical Center
in Israel, said in an interview
Friday at the annual meeting of
the American Society of Clinical
Oncology in Chicago.
Steve Pearson, president of
the Institute for Clinical and

Economic Review, a nonprofit
that assesses the cost-effectiveness of drugs, suggested drug
companies work together to offer “group discounts” on all
drugs in a combination regimen.
This would allow combination
Please see DRUGS page B2


B2 | Monday, June 6, 2016

THE WALL STREET JOURNAL.

* *

INDEX TO BUSINESSES

BUSINESS NEWS

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.

I-J
International Business
Machines...................B3
Johnson & Johnson....B1
J.P. Morgan Chase......C6

L-M

Calamos Asset

Management.............R9
Carlyle Group .............. C1
Chevron.....................A13
Comcast.................B5,R5
Continental Resources. B1
Credit Suisse...............C6
Cypress Semiconductor B3
Dell..............................B4
Demandware...............C6
Diageo ......................... B6

LendingClub.................C3
Lockheed Martin.........B3
Macquarie Group.........C1
Marketo.......................C6
McDonald's..................C1
Microsoft ............... B4,R5
Monsanto..................R10
Moon Express.............A1
Morgan Stanley .......... C6

N-O

G-H

NantHealth..................C6
NantKwest .................. C6
Newfield Exploration..B2
Occidental Petroleum.B2
Opower........................C6

Oracle...........................C6

Gannett.....................R10
GEA Group .................. R7
General Motors...........B1

Pernod Ricard..............B6
Pioneer Natural

E-F
Eli Lilly.........................C1
ENI...............................A1
First Round Capital.....C3

P-Q

Resources..................B2
Procter & Gamble.......R5
Qlik Technologies........C6

R-S
Retrophin .................... B6
Rio Tinto ..................... R7
Rocket Lab..................A7
Royal Dutch Shell..A1,C1
SABMiller...............B5,B6
Salesforce....................C6
Saudi Aramco..............C3
Signet Jewelers..........B5
SoftBank Group..........B4

Supercell......................B4

T-U
Tencent........................B4
Tesco............................B6
Tesla Motors...............R5
Textura ........................ C6
Thoma Bravo...............C6
Thomson Reuters.......R2
Toyota Motor..............B1
Turing PharmaceuticalsB6
UBS..............................C6

V-W
Valeant Pharmaceuticals
International.............C1
Verizon CommunicationsC1
Vista Equity Partners.C6
Vouch Financial...........C3
WeWork ...................... B4
WholeRen EducationA14

INDEX TO PEOPLE
A-B
Anderson, Jamie.........R6
Arora, Nikesh..............B4
Bernhardt, Keith.........R2
Boswell, Brian.............R2
Brafman, Benjamin.....B6
Brodsky, Reed.............B6

Browne, Jeremy..........B6

C-D
Calamos, John P.........R9
Cameron, David...........B6
Canup, James..............R2
Chappell, Bill...............B3
Colligan, Megan..........B5
Cooperman, Leon......R10
Diaz, Francisco............C2

F-G
Fabian, Matt................C2
Farmer, Nancy.............R2
Feirstein, Andrea........R2
Ferraro, Dominick.......R2
Freeman, John............B2
Frost, David.................B6
Ghizzoni, Federico .... R10
Glasser, Scott ............. R5
Glownia, Rob...............R9
Greebel, Evan..............B6
Gross, Michael............B4

Gudger, Andre.............B3

H-J
Hamm, Harold.............B2
Hanke, Steve...............R7
Hartwig, Robert..........C1

Hensarling, Jeb...........C1
Hirsch, Susan..............R6
Hollub, Vicki................B2
Huang, Linn.................B1
Jarrett, William..........R4
Joy, Tom......................R6

K-L
Kagan, Michael...........R5
Kantrowitz, Mark ....... R2
Kitces, Michael...........R4
Kochan, James............C1
Koudounis, John ......... R9
Laird, Adam.................R6
Landy, Douglas............C6
Lee, Yee.......................C3

M-N
Miller, John.................C2
Newsome, James........C3

O-P
O'Connor, Emily .......... C3
O'Flynn, Denis.............B6
Pace, Scott..................A7
Papa, Joseph...............C1

DRUGS
Continued from the prior page
treatments to meet cost-effective targets without requiring

only the newest addition to offer a big discount, he said.
Some drugmakers, including
Roche Holding AG, say they
would consider discounts on
combinations, but note there
are challenges in the U.S. because the health-insurance system is fragmented. J&J said it
couldn’t project pricing for the
Darzalex-containing combination, which hasn’t been approved by U.S. regulators.
Much of the push for combinations centers on a new
wave of drugs that harness the
body’s immune system to fight
cancer, including Merck & Co.’s
Keytruda and Bristol-Myers
Squibb Co.’s Opdivo, each of
which costs more than $12,500
a month.
Initially, these drugs were
approved for use as single
agents, based on clinical trials
showing they prolonged sur-

OIL

Pearson, Michael ........ C1
Piper, Mike..................R4

R-S
Ranson, David.............R9
Redstone, Sumner......B5
Renzi, Matteo...........A12

Richards, Bob..............A7
Rodriguez, Manuel......C1
Ryan, Paul ................... C6
Salmond, Alex.............B6
Schimmelbusch, Heinz.R7
Schwartz, Norty..........B3
Sheth, Rajen...............B1
Shkreli, Martin............B6
Smith, Andreas
Whittam ................... R6
Soon-Shiong, Patrick..C6
Spiegel, Michael..........C3
Stockwell, Tim............B6

T-W
Taormina, Rick ............ C2
Tarullo, Daniel.............C3
Thill, Brent..................C6
Thomas, Jason............C1
Wagner, Che................C6
Waters, Maxine .......... C6
Wright, Robert............R9
Wynne, Geoffrey L ..... C3

vival or shrank tumors in a significant percentage of patients.
But many patients haven’t
benefited from the drugs,
prompting researchers to test
them in combination with other
medications, including different

immunotherapies, chemotherapy or drugs that target genetic
mutations.
Keytruda is being tested in
various combinations with
more than 50 other drugs,
while Opdivo is being tested
with about 40 other drugs, according to Evaluate Ltd., a
drug-industry research firm.
Roche Holding’s Genentech
unit, which recently began selling the immunotherapy Tecentriq, is running about 50 clinical trials of combinations of
two or more cancer drugs,
Chief Medical Officer Sandra
Horning said in an interview.
Daniel O’Day, CEO of Roche’s
pharmaceuticals unit, said the
company has had discussions
with health insurers “to move
to a system where we can get
combination-based pricing in
the U.S.” A Roche spokeswoman
said the company priced its
cline elsewhere.
“Now we’re talking about
plays that can break even or
do better at $45 oil,” said
John Freeman, an energy analyst at Raymond James & Associates.
Another area where production is still rising is the Permian Basin, which spans parts of
West Texas and New Mexico.
The Permian, a major oil-producing area for decades, has
been reborn as the combination

of horizontal drilling and hydraulic fracturing have helped
companies tap oil trapped in
dense rock formations.
Operators there now pump
more than 2 million barrels
of oil a day, more than in any
other U.S. drilling region, according to estimates from the
U.S. Energy Information Administration.
The Permian’s low production costs are luring companies such as Occidental Petroleum Corp. away from other
fields. Vicki Hollub, Occidental’s chief executive, recently

GM has spent 15 years investing heavily in the Cadillac brand—but it still falls far behind foreign rivals in terms of profit and volume.

DEALER
Continued from the prior page
to comment for this article.
One long-held belief among
dealers he has come to embrace is that Cadillac’s dealer
count has been considered a
valuable asset because many
of these franchises are attached to larger-volume Chevrolet stores that are closer to
much of the population than
other luxury stores. Even if a
Cadillac store sells only a few
cars a month, that is a few
cars more than the brand otherwise would have sold.
Mr. de Nysschen’s supporters say keep their franchise,
lose the inventory.
“They can still sell the same
volume,” said Will Churchill,

owner of Frank Kent Cadillac
in Fort Worth, Texas, and head
of Cadillac’s dealer council.
“They don’t have to stock the
15 cars and hope that they
have the right one…the data
shows they probably don’t.”

Closing dealerships or discontinuing brands is costly
due to franchise laws that
have long protected individuals from widespread consolidation by the manufacturer.
GM and Fiat Chrysler Automobiles spent billions in 2009 to
cancel agreements with thousands of dealers.
Some dealers in lower-volume locations will stop short
of going virtual. Brian Hamilton, principal at Midway Auto
Dealerships in Kearney, Neb.,
said even a limited amount of
inventory is necessary and
doubts many dealers will want
to entirely ditch the traditional selling model.
Mr. Hamilton’s state is an
interesting test case for Cadillac. Once home to 22 stores,
the count has shrunk to eight
after GM’s 2009 bankruptcy
and Cadillac’s volume declines.
Still, that is quadruple what
BMW, Lexus or other key luxury competitors have in the
state. “Hopefully we can use
that to our advantage.”
Those who do adopt the

A scientist worked on a new anticancer drug called Imbruvica in
a Pharmacyclics Inc. lab in Sunnyvale, Calif., in 2014.
breast-cancer drug Perjeta
lower than many other new
cancer drugs because the company knew it would be used in
combination with its older
breast-cancer drug Herceptin.
Perjeta costs $6,300 a month
and Herceptin costs $5,500 a

month.
Robert Vonderheide, a cancer researcher at the University
of Pennsylvania, said in an
ASCO presentation that the
choices of drugs to test in combination were “dizzying.” But
he added, “Can we afford it,

told investors that the
area would be the company’s
highest priority.
“We feel like that is where
we get the most value for the
dollars we invest,” she said.
Pioneer Natural Resources
Co., currently the most active
driller in the Permian, said it
is planning to add more rigs to
its operations—one or two at
a time—when oil prices hit

$50 a barrel.
Chevron Corp. said it has
identified some 4,000 wells in
the Permian that can generate
a 10% return at that price, as
well costs in the area have
fallen even as output increases.
“We see our activity in the
Permian as being very, very,
strong,” Joseph Geagea, Chevron’s executive vice president
of technology, projects and
services, told investors in
April.
The fortunes of these areas
could change as quickly the
old ones. Just a few years
ago, energy workers were

streaming into North Dakota,
pushing rental prices sky high
and spawning hotel construction as they looked for work
on or around one of the more
than 200 rigs drilling in the
Bakken Shale formation.
Today, energy is still drawing workers to places like El
Reno, a city of roughly 20,000
about 30 miles west of Oklahoma City, where Halliburton Co. has an office and repair facility.
“Our motels are still pretty
much full,” said El Reno Mayor
Matt White. “We really are excited about the energy play

out here. It’s a big deal for us.”
PayRock Energy LLC, a private-equity-backed outfit that
buys acreage to drill and flip,
said there has been so much
interest in its Stack property
that the company has put all
its 58,000 acres on the market.
“Little guys, private guys,
public guys, in-basin guys, outof-basin guys—you name it,”
said John Zimmerman, PayRock’s vice president of finance. “Everybody who is in
the Stack wants more of it.”
Case in point: Newfield Exploration Co. recently paid
$470 million to Chesapeake
Energy Corp. for more than
40,000 acres that complement
its existing footprint in the
Stack. The Texas-based energy
explorer has shifted most of
its activity to Oklahoma,
where it will spend 90% its
$650 million budget this year.
“The industry has really
voted
with
its
checkbook,” said Stephen Campbell,
a Newfield vice president.

CONTINENTAL RESOURCES

Continued from the prior page
The company recently announced a gusher of a well in
the field.
“These wells are among the
best-performing wells I’ve
been involved with in my entire career,” Harold Hamm,
Continental’s chief executive,
told investors last month. Of
the 57 rigs currently drilling in
Oklahoma, about half are in
the Stack, and 11 of those are
Continental’s, the company
said.
As U.S. oil futures, which
closed on Friday at $48.62 a
barrel, rebounded and recently
approached $50 a barrel, some
large and midsize energy companies have said they are
planning to step up production
in lower-cost areas. The gains
aren’t likely to tip the scales
toward greater production or
hiring nationwide, but they
are tempering some of the de-

SCOTT OLSON/GETTY IMAGES

C-D

Glencore ...................... R7

Globalfoundries...........B3
Greylock Partners.......C3
GungHo Online
Entertainment..........B4
Halliburton................R10
Home Depot................R5

ALISON YIN FOR THE WALL STREET JOURNAL

A-B
Acer.............................B4
Alcoa............................R7
Alibaba........................B4
American International
Group.........................C1
AMG Advanced
Metallurgical.............R7
Anheuser-Busch InBev.B5
Apple...........................B1
BNSF Railway.............B3
BP ................................ C1

Continental Resources says its best wells today are in the Stack, a well-trod section of Oklahoma.

virtual model will have tester
cars on site, which can be
loaned to people getting their
car serviced or used in test
drives, Mr. Churchill said. Prospective buyers can learn a lot
about a Caddy by putting on

the virtual-reality goggles, he
said. Because Cadillacs are
made in the U.S., orders
should be quickly filled.
Mr. de Nysschen’s virtual
concept is new, and strategies
that eliminate inventory have
been rarely employed in the U.S.
While some dealers have
voiced concern about Project
Pinnacle’s potential to squeeze
out small-volume stores, most
say Cadillac needs to change.
Once the benchmark for premium automobiles, GM has
spent 15 years investing heavily
in the brand—but it still falls far
behind foreign rivals in terms of
profit, reputation and volume.
Having so many outlets has
helped the domestic brand
lure people who otherwise
wouldn’t consider a Caddy, but
it also requires GM to produce
a glut of inventory—a practice

that is costly and threatens to
erode the brand’s luxury cachet. Cadillac has an 88 days’
supply of sedans sitting on
dealer lots, according to WardsAuto.com, a number that exceeds levels at Germany’s
three luxury makers.

In a round table interview
with reporters earlier this
year, Mr. de Nysschen said GM
knows the mass market extremely well, ranking as the
No. 1 U.S. player and No. 3 in
the world in terms of sales.
Auto makers have long
flooded dealer lots for two reasons: car companies book revenue on production volumes, not
retail sales. An overabundance
of output can boost revenue,
and the problem can be taken
care of later via discounts or
production cuts. Car buyers
also are used to having ample
selection to choose from.
Mr. De Nysschen said this
isn’t the case with luxury car
buyers. “I don’t think Hermès
or Rolex are famous because
they have a sale every month.
They have brand cachet.”

given the cost of these drugs?”
Last year, the U.S. Food and
Drug Administration approved
the first immunotherapy combination, Bristol-Myers’ Opdivo
and Yervoy, to treat melanoma.
It costs more than $250,000 a
patient for the first full year of
treatment.

AbbVie Inc. and its partner
companies are testing a combination of the drugs Imbruvica
and Venclexta to treat a form
of leukemia. For their currently
approved uses, Imbruvica costs
at least $116,000 a year and
Venclexta costs $109,500 for
the first year of treatment.
In an interview, AbbVie
Chief Executive Richard Gonzalez acknowledged the high
cost of multidrug combinations. “In the grand scheme of
things, it’s worth it” if they
lead to cures or long remissions, he said. An AbbVie
spokesman said the Imbruvica-Venclexta combination is
in early clinical studies, and
that no cost has been set.
The new study of J&J’s
Darzalex included nearly 500
patients whose multiple my-

eloma had worsened despite
at least one prior treatment
with other drugs. About half
were given the drugs Velcade
and dexamethasone. The other
half were given Darzalex in
combination with those drugs.
The addition of Darzalex reduced the risk of disease progression or death by about
61% versus the older treatment, at a median follow-up
period of about 7½ months after the start of treatment. Side

effects associated with the
Darzalex-containing regimen
included blood-platelet deficiency and anemia.
Velcade is co-marketed by
Takeda Pharmaceuticals International Co. and J&J, and dexamethasone is a generic drug
available from multiple companies. In the study, patients
stopped taking Velcade after
six months of treatment. A sixmonth supply costs about
$45,000, a Takeda spokeswoman said. Patients took
Darzalex until they no longer
benefited from the drug.
—Ron Winslow
contributed to this article.

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