2012 12 01 cmyk cxtb 04online.wsj.com/public/resources/documents/pageone_1201.pdf · 2018-08-27 ·...

1
YELLOW VOL. CCLX NO. 129 ****** SATURDAY/SUNDAY, DECEMBER 1 - 2, 2012 HHHH $3.00 WSJ.com Every year since 1963, the Space Medicine Association has given out the Hubertus Strug- hold Award to a top scientist or clinician for outstanding work in aviation medicine. The prestigious 50-year-old prize is named in honor of the man known as the “Father of Space Medicine,” revered for his contributions to America’s early space program. The German émi- gré, who made Texas his home after World War II, is credited with work that helped American astronauts walk on the moon. But it is what he allegedly did during the war that has fueled a bitter controversy. Nearly 70 years after the end of World War II, the scientific community is still fractured over the legacy of Nazi science—a conflict underscored by the clash over the Strughold prize. Dr. Strughold, a former scien- tist for the Third Reich, was listed as one of 13 “persons, firms or or- ganizations implicated” in some notorious Dachau concentration camp experiments, according to a 1946 memo by the staff of the Nuremberg Trials. The document referenced the infamous hypoth- ermia, or “cold experiments,” in which inmates were used, and typically died, as subjects ex- posed to freezing conditions. For years, former colleagues and disciples have defended him, saying there was no evidence to conclude he engaged in atroci- ties. Other space scientists have argued that his involvement in Hitler’s war machine should pre- vent any honors, including the eponymous prize, from being named for him. He was never tried at Nurem- Please turn to page A12 A Scientist’s Nazi-Era Past Haunts Prestigious Space Prize BY LUCETTE LAGNADO Dr. Hubertus Strughold, dubbed the ‘Father of Space Medicine,’ in an early chamber designed to simulate the conditions in space. Some scientists want his name removed from a medical prize. WEEKEND WHEN THE FIGHTING STOPS REVIEW MAXIM STYL Holiday Is IN TODAY'S PAPER WSJ. MAGAZINE n Bank of America shelved plans for new checking fees that could have hit at least 10 million customers by the end of this year, amid a sweeping review of its retail- banking business. A1 n Toyota is offering retire- ment incentives to 2,000 workers in Kentucky, a sign it is adopting some cost-sav- ing measures recently used by its Detroit rivals. B3 n The Dow industrials rose 3.76 points, or less than 0.1%, to 13025.58. The Dow lost 70.88 points in November for its second consecutive monthly decline. B5 n The Supreme Court said it would decide whether iso- lated human genes can be patented, a long-disputed le- gal question with implica- tions for biotech firms. B4 n Yum Brands shares fell 9.9% after the fast-food chain said that its sales in China have softened. B3 n EADS is considering whether to do a buyback of a large portion of its stock. B1 n France ruled out nation- alizing an ArcelorMittal plant after being assured the steel giant won’t cut jobs. B3 n Italy took oversight of a steel plant in a move aimed at protecting the nation’s main source of steel. B3 What’s News i i i Business & Finance World-Wide i i i CONTENTS Books..................... C5-C10 Corporate News B1,3-4 Design.............................. D2 Eating & Drinking D4-5 Gear & Gadgets....... D6 Heard on the Street B16 Icons ............................... C14 Ideas Market .............. C4 Opinion.................. A13-15 Stock Listings .... B11,15 Style & Fashion........ D3 Weather....................... B15 Wknd Investor.....B7-10 s Copyright 2012 Dow Jones & Company. All Rights Reserved Inside NOONAN A15 The Drawn-Out Crisis: It’s the Obama Way n Critics of Egypt’s Morsi assailed the new constitution. Opponents charged that the draft document is a jumbled attempt to impose Islamic law produced by what they called an unrepresentative body dominated by Isla- mists. President Morsi has vowed to bring a national referendum soon. A8 The battle is expected to play out in coming days in Egypt’s courts and streets. n Sen. McConnell detailed potential changes to Medi- care, Medicaid and Social Security, providing clarity on how Republicans would cut entitlement costs. A1 n The House voted to allow more foreign students with advanced U.S.-earned de- grees to stay and work. A6 n Latin America is becom- ing a tale of two economies as nations like Colombia and Mexico outpace global growth while Brazil and Ar- gentina face slowdowns. A10 n The Senate approved a measure that would tighten Iran sanctions, as the U.S. and Turkey are on a collision course over Turkey’s surging sales of gold to Iran. A8 n Israel said it plans a wave of construction in the West Bank and East Jerusalem, a day after the Palestinian ter- ritories received observer status from the U.N. A8 n A freight train derailed on a bridge in New Jersey, spilling hazardous cargo. A6 Senate Minority Leader Mitch McConnell outlined potential changes to Medicare and Social Security in an interview Friday, providing fresh clarity on the concessions Republicans would like to see from Democrats on cutting the costs of the federal entitlement programs. Mr. McConnell (R., Ky.) said bipartisan agreement on higher Medicare premiums for the wealthy, an increase in the Medi- care eligibility age and slowing cost-of-living increases for So- cial Security could move both parties closer to a budget deal that averts the so-called fiscal cliff, the combination of spend- ing cuts and tax increases that start in early January unless Washington acts. In return for the support of Democrats, he said, Republicans would agree to include more tax revenue in a budget deal, though not from higher rates. “Those are the kinds of things that would get Republicans in- terested in new revenue,” Mr. McConnell said. Democrats played down Mr. McConnell’s comments and framed the debate from their own point of view: If Republi- cans instead agreed to raise in- come-tax rates for high earners, a deal to avoid the fiscal cliff could be quickly reached. House Minority Leader Nancy Pelosi (D., Calif.) said there was “nothing new” in Mr. McCon- nell’s comments. A senior ad- ministration official said the White House would make no new offers until Republicans changed their opposition to rais- ing top tax rates. Democrats said they were still awaiting a formal GOP proposal. “Republicans are still choosing not to put forward an actual of- fer, and we can’t respond to an interview,” said Adam Jentleson, spokesman for Senate Majority Leader Harry Reid (D., Nev.). Mr. McConnell’s cost-saving suggestions, however, mark a Please turn to page A4 BY NAFTALI BENDAVID AND JANET HOOK GOP Takes Aim at Entitlements Senate Minority Leader Calls for Bipartisan Support of Changes to Medicare, Social Security to Get Deal Bank of America Corp. has shelved plans for new fees that could have hit at least 10 million customers by the end of this year, skirting a potential replay of a 2011 uproar over consumer- banking charges. The decision to hold off on new checking-account fees at least un- til late next year comes amid a sweeping review of the bank’s re- tail-banking business, said people familiar with the bank’s plans. Many other big banks, includ- ing J.P. Morgan Chase & Co. and Wells Fargo & Co., have rolled out plans that aim to raise fee revenue or push customers to do more business with them as low interest rates, slow economic growth and tough new rules limit bank profits. But the fees are unpopular with customers, regulators and many legislators, who see them as aimed at consumers who lack for low-cost options in handling their finances. Levying new charges opens banks up to criti- cism that they are punishing lower-income customers with policies that encourage users to hold larger balances and use multiple products. However, in choosing to delay new fees, banks risk alienating investors who want to see more revenue. “Banks cannot continue to be on the front page,” said Paul Miller, an analyst with FBR Capi- tal Markets, who added that holding off on fees is a smart move from a public-relations perspective. At the same time, “low-balance depositors don’t have a lot of money for you to make money off of.” For Bank of America, a focus Please turn to page A10 BY SHAYNDI RAICE AND ROBIN SIDEL Bank of America Backs Down On New Fees Insect Chic: In Colorado, Beetles Create Decor Trend i i i Bugs Give Trees a Blue Streak; Craftsmen Avoid Word ‘Fungus’ DENVER—Chuck Shifflett hates what the insidious moun- tain pine beetle has done to the forests of Colorado, but he loves what the insect has done for his kitchen. Last year, Mr. Shifflett, a property developer and retired Air Force officer, decided that the old, white, vinyl cabinets in his Den- ver condo needed an update. So he ripped them out and replaced them with cupboards made of wood from trees once infested with the beetles, which carry a fungus that stains the wood a bluish-gray hue. Mr. Shifflett’s kitchen island, as well, is marbled bluish-gray and he plans to panel his study in the blue, beetle-chewed wood. “The old cabinets were in kind of a country style, which just isn’t appropriate for a downtown loft,” said Mr. Shif- flett, standing in his apartment, decorated in contemporary art, European metal light fixtures and sleek armchairs. “Now, ev- erybody who comes in here asks immediately about the cabinets. It’s incredibly beautiful wood.” Mr. Shifflett’s kitchen is on the cusp of the hottest interior design trend in Col- orado at the mo- ment: Eco-con- scious, with-it home- and business- owners are outfit- ting their houses and offices in blue- stained beetle wood. It is the latest sym- bol of downtown chic, up there with countertops made from recycled glass and bamboo-paper lampshades. “I hadn’t seen it used in a home before ours, but now it’s super trendy,” says Paige Dami- ano, who built a contemporary house in 2010 in Denver with her husband, who runs sales for New Mexico and Colorado for Burton Snowboards. On their architect’s sugges- tion, the couple outfitted the cabinets, wall paneling and ceil- ings in the living room of the house with the blue wood. “You see it popping up every- where, in restaurants, office buildings, homes,” says Ms. Da- miano, whose home was fea- tured last year in Dwell, a maga- zine that highlights interior design tastemakers. “People who are into design, Colorado lovers, eco-friendly people all love it, because it looks super awesome, and because it’s heartbreaking, when you drive up into the mountains, to see all these dead trees.” The U.S. Forest Service esti- mates that in the past decade, the beetle has chewed through and killed portions of 40 million to 45 million acres of timber, or about 12% of the forested land west of the Mississippi. The in- festation, which first became se- rious in Colorado, has moved to other states, including Montana, Please turn to page A6 BY ROBBIE WHELAN Mountain Pine Beetle ‘[Timothy Geithner] noticed that I laughed.… That pretty well summed up my view of what he was saying.’ MITCH MCCONNELL (R.) Senate minority leader ‘Everybody knows that we have to have cuts, we have to have growth, and we have to have revenue. So why are we stalling?’ NANCY PELOSI (D.) House minority leader Luis Marden/National Geographic Stock Plan to raise estate tax is dividing Democrats ..................... A4 > Tourbillon Messidor BREGUET BOUTIQUES NEW YORK BEVERLY HILLS BAL HARBOUR LAS VEGAS TOLL FREE 877-891-1272 C M Y K Composite Composite MAGENTA CYAN BLACK P2JW336000-6-A00100-10011000000 CX,SC CXT,LAT P2JW336000-6-A00100-10011000000

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Page 1: 2012 12 01 cmyk CXTB 04online.wsj.com/public/resources/documents/pageone_1201.pdf · 2018-08-27 · 10 million customersbythe end of this year,amid a sweeping reviewofits retail-banking

YELLOW

VOL. CCLX NO. 129 * * * * * *

SATURDAY/SUNDAY, DECEMBER 1 - 2, 2012

HHHH $3 .00

WSJ.com

Every year since 1963, theSpace Medicine Association hasgiven out the Hubertus Strug-hold Award to a top scientist orclinician for outstanding work inaviation medicine.

The prestigious 50-year-oldprize is named in honor of theman known as the “Father ofSpace Medicine,” revered for hiscontributions to America’s earlyspace program. The German émi-gré, who made Texas his homeafter World War II, is creditedwith work that helped Americanastronauts walk on the moon.

But it is what he allegedly didduring the war that has fueled abitter controversy.

Nearly 70 years after the endof World War II, the scientificcommunity is still fractured overthe legacy of Nazi science—aconflict underscored by the clashover the Strughold prize.

Dr. Strughold, a former scien-tist for the Third Reich, was listedas one of 13 “persons, firms or or-ganizations implicated” in somenotorious Dachau concentrationcamp experiments, according to a1946 memo by the staff of theNuremberg Trials. The documentreferenced the infamous hypoth-ermia, or “cold experiments,” inwhich inmates were used, andtypically died, as subjects ex-posed to freezing conditions.

For years, former colleaguesand disciples have defended him,saying there was no evidence toconclude he engaged in atroci-ties. Other space scientists haveargued that his involvement inHitler’s war machine should pre-vent any honors, including theeponymous prize, from beingnamed for him.

He was never tried at Nurem-PleaseturntopageA12

A Scientist’s Nazi-Era PastHaunts Prestigious Space Prize

BY LUCETTE LAGNADO

Dr. Hubertus Strughold, dubbed the ‘Father of Space Medicine,’ in an early chamber designed tosimulate the conditions in space. Some scientists want his name removed from a medical prize.

WEEKEND

WHENTHEFIGHTINGSTOPS

REVIEW MAXIMSTYL

Holiday Iss

IN TODAY'SPAPER

WSJ. MAGAZINE

n Bank of America shelvedplans for new checking feesthat could have hit at least10 million customers by theend of this year, amid asweeping review of its retail-banking business. A1n Toyota is offering retire-ment incentives to 2,000workers in Kentucky, a signit is adopting some cost-sav-ing measures recently usedby its Detroit rivals. B3n The Dow industrials rose3.76 points, or less than 0.1%,to 13025.58. The Dow lost70.88 points in Novemberfor its second consecutivemonthly decline. B5n The Supreme Court saidit would decide whether iso-lated human genes can bepatented, a long-disputed le-gal question with implica-tions for biotech firms. B4n Yum Brands shares fell9.9% after the fast-foodchain said that its sales inChina have softened. B3n EADS is consideringwhether to do a buyback of alarge portion of its stock. B1n France ruled out nation-alizing an ArcelorMittalplant after being assured thesteel giant won’t cut jobs. B3n Italy took oversight of asteel plant in a move aimedat protecting the nation’smain source of steel. B3

What’sNews

i i i

Business&Finance

World-Wide

i i i

CONTENTSBooks..................... C5-C10Corporate News B1,3-4Design.............................. D2Eating & Drinking D4-5Gear & Gadgets....... D6Heard on the Street B16

Icons............................... C14Ideas Market.............. C4Opinion.................. A13-15Stock Listings.... B11,15Style & Fashion........ D3Weather....................... B15Wknd Investor.....B7-10

s Copyright 2012 Dow Jones & Company.All Rights Reserved

InsideNOONAN A15

The Drawn-OutCrisis: It’s theObama Way

n Critics of Egypt’s Morsiassailed the new constitution.Opponents charged that thedraft document is a jumbledattempt to impose Islamiclaw produced by what theycalled an unrepresentativebody dominated by Isla-mists. President Morsi hasvowed to bring a nationalreferendum soon. A8The battle is expected toplay out in coming days inEgypt’s courts and streets.n Sen. McConnell detailedpotential changes to Medi-care, Medicaid and SocialSecurity, providing clarityon how Republicans wouldcut entitlement costs. A1n The House voted to allowmore foreign students withadvanced U.S.-earned de-grees to stay and work. A6n Latin America is becom-ing a tale of two economiesas nations like Colombia andMexico outpace globalgrowth while Brazil and Ar-gentina face slowdowns. A10n The Senate approved ameasure that would tightenIran sanctions, as the U.S.and Turkey are on a collisioncourse over Turkey’s surgingsales of gold to Iran. A8n Israel said it plans a waveof construction in the WestBank and East Jerusalem, aday after the Palestinian ter-ritories received observerstatus from the U.N. A8n A freight train derailedon a bridge in New Jersey,spilling hazardous cargo. A6

Senate Minority Leader MitchMcConnell outlined potentialchanges to Medicare and SocialSecurity in an interview Friday,providing fresh clarity on theconcessions Republicans wouldlike to see from Democrats oncutting the costs of the federalentitlement programs.

Mr. McConnell (R., Ky.) saidbipartisan agreement on higherMedicare premiums for thewealthy, an increase in the Medi-care eligibility age and slowingcost-of-living increases for So-cial Security could move both

parties closer to a budget dealthat averts the so-called fiscalcliff, the combination of spend-ing cuts and tax increases thatstart in early January unlessWashington acts.

In return for the support ofDemocrats, he said, Republicanswould agree to include more taxrevenue in a budget deal, thoughnot from higher rates.

“Those are the kinds of thingsthat would get Republicans in-terested in new revenue,” Mr.McConnell said.

Democrats played down Mr.McConnell’s comments andframed the debate from theirown point of view: If Republi-

cans instead agreed to raise in-come-tax rates for high earners,a deal to avoid the fiscal cliffcould be quickly reached.

House Minority Leader NancyPelosi (D., Calif.) said there was“nothing new” in Mr. McCon-nell’s comments. A senior ad-ministration official said the

White House would make nonew offers until Republicanschanged their opposition to rais-ing top tax rates.

Democrats said they were stillawaiting a formal GOP proposal.“Republicans are still choosingnot to put forward an actual of-fer, and we can’t respond to an

interview,” said Adam Jentleson,spokesman for Senate MajorityLeader Harry Reid (D., Nev.).

Mr. McConnell’s cost-savingsuggestions, however, mark a

PleaseturntopageA4

BY NAFTALI BENDAVIDAND JANET HOOK

GOPTakesAimatEntitlementsSenate Minority Leader Calls for Bipartisan Support of Changes to Medicare, Social Security to Get Deal

Bank of America Corp. hasshelved plans for new fees thatcould have hit at least 10 millioncustomers by the end of thisyear, skirting a potential replayof a 2011 uproar over consumer-banking charges.

The decision to hold off on newchecking-account fees at least un-til late next year comes amid asweeping review of the bank’s re-tail-banking business, said peoplefamiliar with the bank’s plans.

Many other big banks, includ-ing J.P. Morgan Chase & Co. andWells Fargo & Co., have rolledout plans that aim to raise feerevenue or push customers to domore business with them as lowinterest rates, slow economicgrowth and tough new ruleslimit bank profits.

But the fees are unpopularwith customers, regulators andmany legislators, who see themas aimed at consumers who lackfor low-cost options in handlingtheir finances. Levying newcharges opens banks up to criti-cism that they are punishinglower-income customers withpolicies that encourage users tohold larger balances and usemultiple products. However, inchoosing to delay new fees,banks risk alienating investorswho want to see more revenue.

“Banks cannot continue to beon the front page,” said PaulMiller, an analyst with FBR Capi-tal Markets, who added thatholding off on fees is a smartmove from a public-relationsperspective. At the same time,“low-balance depositors don’thave a lot of money for you tomake money off of.”

For Bank of America, a focusPleaseturntopageA10

BY SHAYNDI RAICEAND ROBIN SIDEL

Bank ofAmericaBacksDownOnNewFees

Insect Chic: In Colorado, Beetles Create Decor Trendi i i

Bugs Give Trees a Blue Streak; Craftsmen Avoid Word ‘Fungus’

DENVER—Chuck Shiffletthates what the insidious moun-tain pine beetle has done to theforests of Colorado, but he loveswhat the insect has done for hiskitchen.

Last year, Mr. Shifflett, aproperty developer and retiredAir Force officer,decided that theold, white, vinylcabinets in his Den-ver condo neededan update. So heripped them out andreplaced them withcupboards made ofwood from treesonce infested withthe beetles, whichcarry a fungus thatstains the wood abluish-gray hue.

Mr. Shifflett’s kitchen island,as well, is marbled bluish-grayand he plans to panel his studyin the blue, beetle-chewed wood.

“The old cabinets were inkind of a country style, whichjust isn’t appropriate for a

downtown loft,” said Mr. Shif-flett, standing in his apartment,decorated in contemporary art,European metal light fixturesand sleek armchairs. “Now, ev-erybody who comes in here asksimmediately about the cabinets.It’s incredibly beautiful wood.”

Mr. Shifflett’s kitchen is onthe cusp of the hottest interior

design trend in Col-orado at the mo-ment: Eco-con-scious, with-ithome- and business-owners are outfit-ting their housesand offices in blue-stained beetle wood.It is the latest sym-bol of downtownchic, up there withcountertops madefrom recycled glassand bamboo-paper

lampshades.“I hadn’t seen it used in a

home before ours, but now it’ssuper trendy,” says Paige Dami-ano, who built a contemporaryhouse in 2010 in Denver with herhusband, who runs sales for New

Mexico and Colorado for BurtonSnowboards.

On their architect’s sugges-tion, the couple outfitted thecabinets, wall paneling and ceil-ings in the living room of thehouse with the blue wood.

“You see it popping up every-where, in restaurants, officebuildings, homes,” says Ms. Da-miano, whose home was fea-tured last year in Dwell, a maga-zine that highlights interiordesign tastemakers. “People whoare into design, Colorado lovers,eco-friendly people all love it,because it looks super awesome,and because it’s heartbreaking,when you drive up into themountains, to see all these deadtrees.”

The U.S. Forest Service esti-mates that in the past decade,the beetle has chewed throughand killed portions of 40 millionto 45 million acres of timber, orabout 12% of the forested landwest of the Mississippi. The in-festation, which first became se-rious in Colorado, has moved toother states, including Montana,

PleaseturntopageA6

BY ROBBIE WHELAN

Mountain Pine Beetle

‘[Timothy Geithner] noticed thatI laughed.… That pretty wellsummed up my view of whathe was saying.’MITCH MCCONNELL (R.) Senate minority leader

‘Everybody knows that we have tohave cuts, we have to havegrowth, and we have to haverevenue. So why are we stalling?’NANCY PELOSI (D.) House minority leader

Luis

Marden/NationalG

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Plan to raise estate tax isdividing Democrats..................... A4

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TOLL FREE 877- 891-1272

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