2015 04 07 cmyk na 04 - the wall street...

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C M Y K Composite ****** TUESDAY, APRIL 7, 2015 ~ VOL. CCLXV NO. 80 WSJ.com HHHH $3.00 CONTENTS Arts in Review.......... D5 Business News.. B2,3,6 Global Finance............ C3 CFO Journal................. B5 Health & Wellness D2-4 Heard on the Street C8 In the Markets........... C4 Opinion................... A11-13 Sports.............................. D6 Technology................... B4 U.S. News................. A2-6 Weather Watch ........ B7 World News............ A7-9 s Copyright 2015 Dow Jones & Company. All Rights Reserved > What’s News Israeli officials and con- gressional Republicans set high bars for a nuclear deal with Iran, as critics of the plan geared up for lobbying. A1, A8 Kenya bombed two al-Sha- baab bases in Somalia, days after militants gunned down at least 148 people at a uni- versity in Garissa, Kenya. A7 Yemeni civilians trapped by battles between Houthi rebels and Saudi-backed fight- ers in Aden said they are run- ning out of food and water. A8 The jury is set to begin de- liberations in the Boston bombing trial after both sides gave closing statements. A2 A Medicaid proposal would give managed-care recipients equal coverage for mental- health and medical care. A4 Medicare Advantage pay- ments will rise about 1.25% next year, reversing a slight de- cline proposed in February. A4 The U.S. defense secretary voiced concern about China’s behavior in the South China Sea and its cyberactivities. A7 Chicago Mayor Emanuel has seen his lead over rival Gar- cia grow in recent polls ahead of Tuesday’s runoff vote. A4 A Turkish court blocked ac- cess to Twitter and YouTube for failing to remove content linked to a hostage crisis. A7 The State Department ap- proved Pakistan’s request to buy almost $1 billion of U.S. arms to fight insurgents. A9 A probe of a Rolling Stone article about an alleged gang rape found no grounds for firing magazine staffers. A6 V iacom said it would take $785 million in pretax charges for job cuts and to write down the value of un- derperforming shows. B1 The Dow rallied 117.61 to 17880.85 in the first trading day after a weak jobs report, nudging the blue chips into positive territory for 2015. C1 The New York Fed chief blamed first-quarter economic weakness on temporary fac- tors, suggesting he still ex- pects a rate rise this year. A2 BlackRock said it will close or consolidate some money- market funds in response to a recent regulatory overhaul. C1 Oil-train traffic fueled by the energy boom is edging down due to safety problems and low crude prices. B1 Samsung Electronics ex- pects to report that its recent profit slide moderated during the latest quarter. B3 DuPont said Trian’s pro- posal to break up the chemi- cal firm would cost $4 bil- lion and hurt research. B3 Commodities investors are turning bullish on cop- per as a flurry of disruptions begin to squeeze supply. C1 Kleiner partner Matt Mur- phy said he is leaving the venture-capital firm to look for a new opportunity. B1 Virtu Financial is seeking a valuation of about $2.59 bil- lion in an IPO of the high-fre- quency trading firm. C3 Proxy adviser ISS blasted Wynn Resorts’ governance and urged shareholders to boycott board candidates. B3 Business & Finance World-Wide Israel Presses Its Case Against Iran Deal New technologies that promise to change how food is grown, transported and sold are attract- ing increased interest from the kinds of investors that have fueled Silicon Valley powerhouses. The money involved in U.S. food startups is still small com- pared with Internet companies. But venture-capital investment in agriculture and food soared 54% to $486 million last year, accord- ing to Dow Jones VentureSource. Monsanto Co., Bayer AG and other agribusiness giants have launched their own VC initiatives, and investment managers have raised funds dedicated to food and agriculture technology. Private-eq- uity firm Paine & Partners, for in- stance, raised $893 million in Jan- uary for investments in boosting productivity in areas like protein Please see FOOD page A9 BY ILAN BRAT AND JACOB BUNGE Jake Sposato remembers the moment it all began. It was 1982. He was 15 years old. He was in a movie theater watching “The Road Warrior,” starring the young actor Mel Gibson. Sud- denly a black muscle car known in the film as an “Interceptor” roared across the screen. “I saw that car,” he recalls, “and I thought: That is what a car should be. That is what I will own one day.” Dee Vyper tells a similar story. He was 12, and there was that black car. “It was the meanest muscle car ever to roll across a screen,” he says. “Man, when I saw ‘Mad Max’ and ‘The Road Warrior’ as a kid, everything changed.” Now the subculture devoted to the films’ wildly imaginative vehi- cles is getting ready for a mo- mentous event. BY A.J. BAIME As ‘Mad Max’ Returns, Fans Dust Off Their Muscle Cars i i i Die-hards await sequel with mohawks and replica ‘Interceptors;’ no Mel Gibson “Mad Max: Fury Road” hits U.S. theaters on May 15, the first new Mad Max film in 30 years. Die-hards are gearing up, and putting the finishing touches on their replica vehicles and cos- tumes. “Mad Max,” from 1979, plus “The Road Warrior” and 1985’s “Mad Max Beyond Thunderdome” chronicle the adventures of an ex- istential antihero in a postapoca- lyptic future. The film’s world- wide fans, mostly men, dress in film-correct costumes at fan gatherings. Shoulder pads, old hockey goalie masks and Mohawk haircuts are standard equipment. Please see MAX page A10 Replica Interceptor Silicon Valley Sows Seeds For New Era In Farm Tech Duke Defeats Wisconsin to Win Fifth NCAA Basketball Title DAVID J. PHILLIP/ASSOCIATED PRESS HARD WON: The Duke Blue Devils celebrate after beating the Wisconsin Badgers 68-63 in a tight game on Monday night in Indianapolis. D6 to an account Mr. Costa gave to prosecutors and eventually to Brazil’s Congress. Other executives and Brazilian politicians got a cut of the cash, he said, while a web of money launderers helped them hide some of it overseas. Police soon raided dozens of homes, turning up sports cars and safes filled with money and jewelry. They seized so many valuable paintings allegedly bought with bribery proceeds, includ- ing a Salvador Dalí, that they allowed a museum to exhibit some of the works. Mr. Costa’s account cracked open a scandal that has riveted Brazil, sparking political and fi- nancial turmoil in the world’s seventh-largest economy. Nicknamed Operation Car Wash, it has forced the resignation of top management at Petrobras, pounded the company’s stock, led to project cancellations and thousands of layoffs, Please see BRAZIL page A10 CURITIBA, Brazil—Last summer, a haggard- looking former oil executive stared across a ta- ble at six stone-faced federal prosecutors in a cramped office in southern Brazil. For weeks, he had promised to tell what he knew about a suspected money-laundering scheme but kept holding back, according to prosecutors. Then, he learned they were investi- gating his family, too, for potential evidence tampering. Paulo Roberto Costa began to talk. For nearly 10 years as a senior executive at Petróleo Brasileiro SA, known as Petrobras, he took bribes from the country’s biggest construc- tion firms, allowing them to skim hundreds of millions of dollars from the state-controlled oil company through inflated contracts, according BY WILL CONNORS AND LUCIANA MAGALHAES TOM WALLACE/ASSOCIATED PRESS (PHOTO) SIDETRACKED: The shipment of oil by train, which surged in recent years but also caused safety concerns, began to turn down after the price of crude oil plunged late last year. B1 BRAZIL CRACKS OPEN VAST BRIBERY SCANDAL ‘Nine horsemen’ prosecutors on Petrobras case flip witnesses, target lawmakers Israeli officials and congres- sional Republicans on Monday set high bars with exacting con- ditions for a nuclear accord with Iran, signaling fresh domestic and international pressure on ne- gotiations leading up to a sum- mer deadline. Leading Arab governments, in- cluding Saudi Arabia, cautiously accepted the landmark diplomacy with Iran, in their most detailed reactions yet. But Saudi officials said they needed more assur- ances that Iran’s pathway to a nuclear weapons program has been blocked. The global responses and con- gressional reactions—pitted against a determined campaign by the Obama administration— form the outlines of a furious po- litical battle as Israeli officials and their supporters gear up for a lobbying effort once Congress returns next week from an Easter recess. “There is an alternative: to stand firm, get a much better deal, a deal that can be trusted,” Israel’s intelligence chief, Yuval Steinitz, said. “The deal has to be made on the assumption that Iran might violate it.” President Barack Obama and his aides dismissed much of the Please see IRAN page A8 By Jay Solomon, Nicholas Casey and Carol E. Lee Ronald Porter filed a federal lawsuit in 2007 after the Navy eliminated his job. He still is waiting for his employment-dis- crimination case to be heard. BY JOE PALAZZOLO Civil suits such as Mr. Porter’s are piling up in some of the na- tion’s federal courts, leading to long delays in cases involving Social Security benefits, per- sonal injury and civil rights, among others. More than 330,000 such cases were pending as of last October—a record—up nearly 20% since 2004, according to the Administrative Office of the United States Courts. The num- ber of cases awaiting resolution for three years or more exceeded 30,000 for the fifth time in the past decade. The federal court for Califor- nia’s Eastern District, where Mr. Porter filed his suit, has a partic- ularly deep backlog. The number of cases filed per judge, 974 last year, is almost twice the national average. More than 14% of civil cases in that district have been pending for three years or more. The Seventh Amendment to the U.S. Constitution guarantees the right to a jury trial in civil cases. But the Sixth Amendment gives people in criminal cases the right to a “speedy” trial. The upshot: Criminal cases often dis- place and delay civil disputes, creating a backlog. “Over the years I’ve received several letters from people indi- cating, ‘Even if I win this case now, my business has failed be- cause of the delay. How is this justice?’ ” said Judge Lawrence Please see BACKLOG page A6 Record Backlog Jams Courts Some 330,000 civil suits wait as judicial vacancies go unfilled and criminal cases take priority Boom in Oil Trains Stalls Weekly average barrels of oil and fuel moving on trains each month THE WALL STREET JOURNAL. Source: WSJ analysis of data from the Association of American Railroads 12 0 3 6 9 million ’15 2014 March 9.7M Gerald F. Seib: Gulf states test Obama salesmanship................. A4 DJIA 17880.85 À 117.61 0.7% NASDAQ 4917.32 À 0.6% NIKKEI 19397.98 g 0.2% STOXX 600 397.80 Closed 10-YR. TREAS. g 18/32 , yield 1.902% OIL $52.14 À $3.00 GOLD $1,218.60 À $17.70 EURO $1.0923 YEN 119.53 | Spin Your Own Story PERSONAL JOURNAL | D1 Investing in Funds Stars Unveil Their Hits, Misses JOURNAL REPORT | R1 GETTY IMAGES Call1-800-iShares for a prospectus, which includes investment objectives, risks, fees, expenses and other information you should read and consider carefully before investing. Risk includes loss of principal. Diversification may not protect against market risk or loss of principal. Transactions in shares of ETFs will result in brokerage commissions and will generate tax consequences. All regulated investment companies are obliged to distribute portfolio gains to shareholders. The iShares Funds are not sponsored, endorsed, issued, sold or promoted by S&P Dow Jones Indices LLC nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company named above. Distributed by BlackRock Investments, LLC. ©2014 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are trademarks of BlackRock, Inc. iS-12264-0414 IVV IJH IJR iShares Core S&P 500 Fund iShares Core S&P Mid-Cap Fund iShares Core S&P Small-Cap Fund After all, that’s why you invest. iShares Funds are diversified, low cost and tax efficient. Ask your financial advisor. Visit iShares.com iShares Funds can help you keep more of what you earn. Composite YELLOW MAGENTA CYAN BLACK P2JW097000-6-A00100-1--------XA CL,CN,CX,DL,DM,DX,EE,EU,FL,HO,KC,MW,NC,NE,NY,PH,PN,RM,SA,SC,SL,SW,TU,WB,WE BG,BM,BP,CC,CH,CK,CP,CT,DN,DR,FW,HL,HW,KS,LA,LG,LK,MI,ML,NM,PA,PI,PV,TD,TS,UT,WO P2JW097000-6-A00100-1--------XA

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Page 1: 2015 04 07 cmyk NA 04 - The Wall Street Journalonline.wsj.com/public/resources/documents/pageone0407.pdfCMYK Composite ***** TUESDAY,APRIL 7, 2015~VOL. CCLXV NO.80 WSJ.com HHHH $3.00

CM Y K Composite

* * * * * * TUESDAY, APRIL 7, 2015 ~ VOL. CCLXV NO. 80 WSJ.com HHHH $3 .00

CONTENTSArts in Review.......... D5Business News.. B2,3,6Global Finance............ C3CFO Journal................. B5Health & Wellness D2-4Heard on the Street C8

In the Markets........... C4Opinion................... A11-13Sports.............................. D6Technology................... B4U.S. News................. A2-6Weather Watch........ B7World News............ A7-9

s Copyright 2015 Dow Jones & Company.All Rights Reserved

>

What’sNews

Israeli officials and con-gressional Republicans sethigh bars for a nuclear dealwith Iran, as critics of the plangeared up for lobbying. A1, A8 Kenya bombed two al-Sha-baab bases in Somalia, daysafter militants gunned downat least 148 people at a uni-versity in Garissa, Kenya. A7 Yemeni civilians trappedby battles between Houthirebels and Saudi-backed fight-ers in Aden said they are run-ning out of food and water. A8 The jury is set to begin de-liberations in the Bostonbombing trial after both sidesgave closing statements. A2AMedicaid proposalwouldgive managed-care recipientsequal coverage for mental-health and medical care. A4Medicare Advantage pay-ments will rise about 1.25%next year, reversing a slight de-cline proposed in February. A4 The U.S. defense secretaryvoiced concern about China’sbehavior in the South ChinaSea and its cyberactivities. A7 Chicago Mayor Emanuelhas seen his lead over rival Gar-cia grow in recent polls aheadof Tuesday’s runoff vote. A4A Turkish court blocked ac-cess to Twitter and YouTubefor failing to remove contentlinked to a hostage crisis. A7 The State Department ap-proved Pakistan’s request tobuy almost $1 billion of U.S.arms to fight insurgents. A9 A probe of a Rolling Stonearticle about an alleged gangrape found no grounds forfiring magazine staffers. A6

V iacom said it would take$785 million in pretax

charges for job cuts and towrite down the value of un-derperforming shows. B1The Dow rallied 117.61 to17880.85 in the first tradingday after a weak jobs report,nudging the blue chips intopositive territory for 2015. C1 The New York Fed chiefblamed first-quarter economicweakness on temporary fac-tors, suggesting he still ex-pects a rate rise this year. A2 BlackRock said it will closeor consolidate some money-market funds in response to arecent regulatory overhaul. C1 Oil-train traffic fueled bythe energy boom is edgingdown due to safety problemsand low crude prices. B1 Samsung Electronics ex-pects to report that its recentprofit slide moderated duringthe latest quarter. B3 DuPont said Trian’s pro-posal to break up the chemi-cal firm would cost $4 bil-lion and hurt research. B3 Commodities investorsare turning bullish on cop-per as a flurry of disruptionsbegin to squeeze supply. C1 Kleiner partner Matt Mur-phy said he is leaving theventure-capital firm to lookfor a new opportunity. B1Virtu Financial is seeking avaluation of about $2.59 bil-lion in an IPO of the high-fre-quency trading firm. C3 Proxy adviser ISS blastedWynn Resorts’ governanceand urged shareholders toboycott board candidates. B3

Business&Finance

World-Wide

IsraelPressesIts CaseAgainstIran Deal

New technologies that promiseto change how food is grown,transported and sold are attract-ing increased interest from thekinds of investors that have fueledSilicon Valley powerhouses.

The money involved in U.S.food startups is still small com-pared with Internet companies.But venture-capital investment inagriculture and food soared 54%to $486 million last year, accord-ing to Dow Jones VentureSource.

Monsanto Co., Bayer AG andother agribusiness giants havelaunched their own VC initiatives,and investment managers haveraised funds dedicated to food andagriculture technology. Private-eq-uity firm Paine & Partners, for in-stance, raised $893million in Jan-uary for investments in boostingproductivity in areas like protein

Please see FOOD page A9

BY ILAN BRATAND JACOB BUNGE

Jake Sposato remembers themoment it all began. It was 1982.He was 15 years old. He was in amovie theater watching “TheRoad Warrior,” starring theyoung actor Mel Gibson. Sud-denly a black muscle car knownin the film as an “Interceptor”roared across the screen.

“I saw that car,” he recalls,“and I thought: That is what a carshould be. That is what I will ownone day.”

Dee Vyper tells a similar story.He was 12, and there was thatblack car. “It was the meanestmuscle car ever to roll across ascreen,” he says. “Man, when Isaw ‘Mad Max’ and ‘The RoadWarrior’ as a kid, everythingchanged.”

Now the subculture devoted tothe films’ wildly imaginative vehi-cles is getting ready for a mo-mentous event.

BY A.J. BAIME

As ‘Mad Max’ Returns,Fans Dust Off Their Muscle Cars

i i i

Die-hards await sequel with mohawksand replica ‘Interceptors;’ no Mel Gibson

“Mad Max: Fury Road” hitsU.S. theaters on May 15, the firstnew Mad Max film in 30 years.Die-hards are gearing up, andputting the finishing touches ontheir replica vehicles and cos-tumes.

“Mad Max,” from 1979, plus“The Road Warrior” and 1985’s“Mad Max Beyond Thunderdome”chronicle the adventures of an ex-istential antihero in a postapoca-lyptic future. The film’s world-wide fans, mostly men, dress infilm-correct costumes at fangatherings. Shoulder pads, oldhockey goalie masks and Mohawkhaircuts are standard equipment.

Please see MAX page A10

Replica Interceptor

Silicon ValleySows SeedsFor New EraIn Farm Tech

Duke Defeats Wisconsin to Win Fifth NCAA Basketball Title

DAVID

J.PH

ILLIP/ASS

OCIAT

EDPR

ESS

HARD WON: The Duke Blue Devils celebrate after beating the Wisconsin Badgers 68-63 in a tight game on Monday night in Indianapolis. D6

to an account Mr. Costa gave to prosecutors andeventually to Brazil’s Congress. Other executivesand Brazilian politicians got a cut of the cash,he said, while a web of money launderershelped them hide some of it overseas.

Police soon raided dozens of homes, turningup sports cars and safes filled with money andjewelry. They seized so many valuable paintingsallegedly bought with bribery proceeds, includ-ing a Salvador Dalí, that they allowed a museumto exhibit some of the works.

Mr. Costa’s account cracked open a scandalthat has riveted Brazil, sparking political and fi-nancial turmoil in the world’s seventh-largesteconomy. Nicknamed Operation Car Wash, it hasforced the resignation of top management atPetrobras, pounded the company’s stock, led toproject cancellations and thousands of layoffs,

Please see BRAZIL page A10

CURITIBA, Brazil—Last summer, a haggard-looking former oil executive stared across a ta-ble at six stone-faced federal prosecutors in acramped office in southern Brazil.

For weeks, he had promised to tell what heknew about a suspected money-launderingscheme but kept holding back, according toprosecutors. Then, he learned they were investi-gating his family, too, for potential evidencetampering.

Paulo Roberto Costa began to talk.For nearly 10 years as a senior executive at

Petróleo Brasileiro SA, known as Petrobras, hetook bribes from the country’s biggest construc-tion firms, allowing them to skim hundreds ofmillions of dollars from the state-controlled oilcompany through inflated contracts, according

BY WILL CONNORS AND LUCIANA MAGALHAES

TOM

WALLACE

/ASS

OCIAT

EDPR

ESS(PHOTO

)

SIDETRACKED: The shipment of oil by train, which surged in recentyears but also caused safety concerns, began to turn down after theprice of crude oil plunged late last year. B1

BRAZIL CRACKS OPENVAST BRIBERY SCANDAL

‘Nine horsemen’ prosecutors on Petrobras case flip witnesses, target lawmakers

Israeli officials and congres-sional Republicans on Mondayset high bars with exacting con-ditions for a nuclear accord withIran, signaling fresh domesticand international pressure on ne-gotiations leading up to a sum-mer deadline.

Leading Arab governments, in-cluding Saudi Arabia, cautiouslyaccepted the landmark diplomacywith Iran, in their most detailedreactions yet. But Saudi officialssaid they needed more assur-ances that Iran’s pathway to anuclear weapons program hasbeen blocked.

The global responses and con-gressional reactions—pittedagainst a determined campaignby the Obama administration—form the outlines of a furious po-litical battle as Israeli officialsand their supporters gear up fora lobbying effort once Congressreturns next week from an Easterrecess.

“There is an alternative: tostand firm, get a much betterdeal, a deal that can be trusted,”Israel’s intelligence chief, YuvalSteinitz, said. “The deal has to bemade on the assumption thatIran might violate it.”

President Barack Obama andhis aides dismissed much of the

Please see IRAN page A8

By Jay Solomon,Nicholas Caseyand Carol E. Lee

Ronald Porter filed a federallawsuit in 2007 after the Navyeliminated his job. He still iswaiting for his employment-dis-crimination case to be heard.

BY JOE PALAZZOLO

Civil suits such as Mr. Porter’sare piling up in some of the na-tion’s federal courts, leading tolong delays in cases involvingSocial Security benefits, per-sonal injury and civil rights,among others.

More than 330,000 suchcases were pending as of lastOctober—a record—up nearly20% since 2004, according to theAdministrative Office of theUnited States Courts. The num-ber of cases awaiting resolution

for three years or more exceeded30,000 for the fifth time in thepast decade.

The federal court for Califor-nia’s Eastern District, where Mr.Porter filed his suit, has a partic-ularly deep backlog. The numberof cases filed per judge, 974 lastyear, is almost twice the nationalaverage. More than 14% of civilcases in that district have beenpending for three years or more.

The Seventh Amendment tothe U.S. Constitution guarantees

the right to a jury trial in civilcases. But the Sixth Amendmentgives people in criminal casesthe right to a “speedy” trial. Theupshot: Criminal cases often dis-place and delay civil disputes,creating a backlog.

“Over the years I’ve receivedseveral letters from people indi-cating, ‘Even if I win this casenow, my business has failed be-cause of the delay. How is thisjustice?’ ” said Judge Lawrence

Please see BACKLOG page A6

Record Backlog Jams CourtsSome 330,000 civil suitswait as judicial vacanciesgo unfilled and criminalcases take priority

Boom in Oil Trains StallsWeekly average barrels of oil andfuel moving on trains each month

THEWALL STREET JOURNAL.

Source: WSJ analysis of data from theAssociation of American Railroads

12

0

3

6

9

million

’152014

March9.7M

Gerald F. Seib: Gulf states testObama salesmanship................. A4

DJIA 17880.85 À 117.61 0.7% NASDAQ 4917.32 À 0.6% NIKKEI 19397.98 g 0.2% STOXX600 397.80 Closed 10-YR. TREAS. g 18/32 , yield 1.902% OIL $52.14 À $3.00 GOLD $1,218.60 À $17.70 EURO $1.0923 YEN 119.53

|

Spin YourOwn StoryPERSONAL JOURNAL | D1

Investing in FundsStars UnveilTheir Hits, Misses

JOURNAL REPORT | R1

GET

TYIM

AGES

Call1-800-iShares for a prospectus, which includes investment objectives, risks, fees, expensesand other information you should read and consider carefully before investing. Risk includesloss of principal. Diversification may not protect against market risk or loss of principal. Transactionsin shares of ETFs will result in brokerage commissions and will generate tax consequences. All regulatedinvestment companies are obliged to distribute portfolio gains to shareholders. The iShares Funds arenot sponsored, endorsed, issued, sold or promoted by S&P Dow Jones Indices LLC nor does this companymake any representation regarding the advisability of investing in the Fund. BlackRock is not affiliatedwith the company named above. Distributed by BlackRock Investments, LLC. ©2014 BlackRock, Inc. Allrights reserved. iSHARES and BLACKROCK are trademarks of BlackRock, Inc. iS-12264-0414

IVV

IJH

IJR

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After all, that’s whyyou invest.iShares Funds arediversified, low costand tax efficient.

Ask your financial advisor.Visit iShares.com

iShares Fundscan help youkeep more ofwhat you earn.

CompositeYELLOW MAGENTA CYAN BLACK

P2JW097000-6-A00100-1--------XA CL,CN,CX,DL,DM,DX,EE,EU,FL,HO,KC,MW,NC,NE,NY,PH,PN,RM,SA,SC,SL,SW,TU,WB,WEBG,BM,BP,CC,CH,CK,CP,CT,DN,DR,FW,HL,HW,KS,LA,LG,LK,MI,ML,NM,PA,PI,PV,TD,TS,UT,WO

P2JW097000-6-A00100-1--------XA