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Page 1: C M Y K · 2018. 6. 27. · come its biggest contract ever in Africa, with a potential value of $700 million. It was also the biggest mistake in McKinsey s nine-decade his-. tory

VOL. CLXVII . . . No. 58,006 + © 2018 The New York Times Company NEW YORK, WEDNESDAY, JUNE 27, 2018

C M Y K Nxxx,2018-06-27,A,001,Bs-4C,E2_+

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The ride-hailing service won an appealto regain its taxi license in London, abig win for its chief executive. PAGE B1

BUSINESS DAY B1-7

Uber Regains London License

WASHINGTON — The Su-preme Court upheld PresidentTrump’s ban on travel from sev-eral predominantly Muslim coun-tries, delivering to the presidenton Tuesday a political victory andan endorsement of his power tocontrol immigration at a time ofpolitical upheaval about the treat-ment of migrants at the Mexicanborder.

In a 5-to-4 vote, the court’s con-servatives said that the presi-dent’s power to secure the coun-try’s borders, delegated by Con-gress over decades of immigra-tion lawmaking, was notundermined by Mr. Trump’s his-tory of incendiary statementsabout the dangers he said Mus-lims pose to the United States.

Writing for the majority, ChiefJustice John G. Roberts Jr. saidthat Mr. Trump had ample statu-tory authority to make nationalsecurity judgments in the realm ofimmigration. And the chief justicerejected a constitutional chal-lenge to Mr. Trump’s third execu-tive order on the matter, issued inSeptember as a proclamation.

The court’s liberals denouncedthe decision. In a passionate andsearing dissent from the bench,Justice Sonia Sotomayor said thedecision was no better than Kore-matsu v. United States, the 1944decision that endorsed the deten-tion of Japanese-Americans dur-ing World War II.

She praised the court for offi-cially overturning Korematsu in

its decision on Tuesday. But by up-holding the travel ban, Justice So-tomayor said, the court “merelyreplaces one gravely wrong deci-sion with another.”

The court’s travel ban decisionprovides new political ammuni-tion for the president and mem-bers of his party as they prepareto face the voters in the fall. Mr.Trump has already made clear hisplans to use anti-immigrant mes-saging as he campaigns for Re-publicans, much the way he suc-cessfully deployed the issue towhip up the base of the party dur-ing the 2016 presidential cam-paign.

Mr. Trump, who has battledcourt challenges to the travel bansince the first days of his adminis-tration, hailed the decision to up-hold his third version as a“tremendous victory” and prom-ised to continue using his office todefend the country against terror-ism, crime and extremism.

“This ruling is also a moment ofprofound vindication followingmonths of hysterical commentaryfrom the media and Democraticpoliticians who refuse to do whatit takes to secure our border andour country,” the president said ina statement issued by the WhiteHouse soon after the decision wasannounced.

The vindication for Mr. Trumpwas also a stunning political vali-dation of the Republican strategy

5-4 Ruling Says Power Over BordersOutweighs Remarks on Muslims

JUSTICES BACK TRAVEL BAN, YIELDING TO TRUMP

By ADAM LIPTAK and MICHAEL D. SHEAR

Protests in New York on Tuesday after the Supreme Court upheld President Trump’s ban on travel from five mostly Muslim nations.MARIAN CARRASQUERO/THE NEW YORK TIMES

Continued on Page A16

WASHINGTON — Ruling foropponents of abortion on freespeech grounds, the SupremeCourt said on Tuesday that theState of California may not requirereligiously oriented “crisis preg-nancy centers” to supply womenwith information about how to endtheir pregnancies.

The case was a clash betweenstate efforts to provide womenwith facts about their medical op-tions and First Amendment rul-ings that place limits on the gov-ernment’s ability to compel peopleto say things at odds with their be-liefs.

Justice Clarence Thomas, writ-ing for the five-justice conserva-tive majority, accepted the free-speech argument, ruling that theFirst Amendment prohibits Cali-fornia from forcing the centers,which oppose abortion on reli-gious grounds, to post noticesabout how to obtain the pro-cedure. The centers seek to per-suade women to choose parentingor adoption.

“Licensed clinics must providea government-drafted scriptabout the availability of state-sponsored services, as well as

contact information for how to ob-tain them,” Justice Thomas wrote.“One of those services is abortion— the very practice that petition-ers are devoted to opposing.”

California, he wrote, can useother means to tell women aboutthe availability of abortion, includ-ing advertising. But “Californiacannot co-opt the licensed facili-ties to deliver its message for it,”he wrote.

The case was the first touchingon abortion since Justice Neil M.Gorsuch, who sided with the ma-jority, joined the court. While thedecision’s legal analysis turned onthe First Amendment, it was loston no one that the justices most

Anti-Abortion Health ClinicsWin First Amendment Ruling

By ADAM LIPTAK

Activists from both sides of theabortion issue on Monday.

ZACH GIBSON/GETTY IMAGES

Continued on Page A18

When John L. Flannery tookover as the chief executive of Gen-eral Electric last August, he de-clared that he would not be nostal-gic about the industrial giant’s sto-ried past when reshaping thecompany for the future.

He wasn’t kidding.General Electric said on Tues-

day that it planned to spin off itshealth care business and sell itsmultibillion-dollar stake in BakerHughes, a major producer of oilfield equipment, as Mr. Flanneryturns the embattled industrial ti-tan into a much smaller company.

The company said it would re-tain just three major operations:jet engines, electric power gener-ators and wind turbines. Thosebusinesses accounted for 60 per-cent of the company’s $122 billionin revenue last year.

G.E., once the ultimate Ameri-can conglomerate and a symbol ofcorporate power, had endured apainful decline in recent years.Executives could not sell thestruggling parts fast enough. Inthe past year, shares in the com-pany have fallen by half, cuttingits market value by $120 billion.

On Tuesday, in a sign of its wan-ing influence, G.E.’s stock was offi-cially dropped from the DowJones industrial average, having

ConglomerateNo More, G.E.

Cuts to GrowBy STEVE LOHR

and MICHAEL J. de la MERCED

Continued on Page A13

JORGE SAENZ/ASSOCIATED PRESS

Fans in Buenos Aires as Argentina beat Nigeria, 2-1, to squeak forward in the World Cup. Page B8.Back From the Brink

REPUDIATION A federal judge halted family separations and ruled thatall migrant children must be reunited with their parents. PAGE A15

REVERSAL Justices also overruled Korematsu v. United States, butcritics said the move was more symbolic than substantive. PAGE A17

JOHANNESBURG — Theblackouts kept coming. The state-owned power company, Eskom,was on the verge of insolvency.Maintenance was being deferred.And a major boiler exploded,threatening the national grid.

McKinsey & Company, the god-father of management consulting,thought it could help, but was notsure that it should, according topeople involved in the debate. Therisk was huge. Could McKinsey fixthe problems? Would it get paid?Would it be tainted by South Af-

rica’s rampant political corrup-tion?

In late 2015, over objectionsfrom at least three influentialMcKinsey partners, the firm de-cided the risk was worth takingand signed on to what would be-come its biggest contract ever inAfrica, with a potential value of$700 million.

It was also the biggest mistakein McKinsey’s nine-decade his-tory.

The contract turned out to be il-legal, a violation of South Africancontracting law, with some of thepayments channeled to an associ-ate of an Indian-born family, theGuptas, at the center of a swirlingcorruption scandal. Then therewas the lavish size of that payout.It did not take a Harvard BusinessSchool graduate to explain whySouth Africans might get angryseeing a wealthy American firmcart away so much public moneyin a country with the worst incomeinequality in the world and ayouth unemployment rate over 50

percent.And a bitter irony: While McK-

insey’s pay was supposed to bebased entirely on its results, it isfar from clear that the flailingpower company is much better offthan it was before.

The Eskom affair is now part ofan expansive investigation bySouth African authorities into howthe Guptas used their friendshipswith Jacob Zuma, then the coun-try’s president, and his son to ma-nipulate and control state-ownedenterprises for personal gain. In-ternational corruption watchdogscall it a case of “state capture.”Lawmakers here call it a silent

How a Revered Global Adviser Blundered Into a Corrupt BargainBy WALT BOGDANICH

and MICHAEL FORSYTHE

Continued on Page A9

McKinsey’s ReputationIs Tainted by Scandal

in South Africa

A library group took Laura IngallsWilder’s name off an award, saying herbooks reflect dated values. PAGE A12

‘Little House’ Author DroppedThe stand-ups on W. Kamau Bell’s “To-tally Biased,” canceled five years ago,are good fits for the Trump era. PAGE C1

A Talk Show Ahead of Its Time

Thomas L. Friedman PAGE A23

EDITORIAL, OP-ED A22-23

The Mets said Sandy Alderson wouldtake a leave of absence for a healthproblem as the team sank toward thebottom of the standings. PAGE B8

SPORTSWEDNESDAY B8-14

Mets’ G.M. Steps Aside

Martin Golden, who has opposed speedcameras near schools, has been caughtexceeding the limit in the special zones10 times since 2015. PAGE A19

NEW YORK A19-21

The 10-Ticket State Senator

A trove of documents about the Mont-gomery bus boycott has turned up in acourthouse vault. PAGE A12

NATIONAL A12-18

Traces of Civil Rights History

The people of Aguascalientes have itbetter than a lot of Mexicans, but manystill plan to vote against the governingparty’s presidential candidate. PAGE A7

INTERNATIONAL A4-11

Call for Change Stirs in Mexico

The Bard festival’s version is not theMary Martin vehicle you recall. Above,Jack Ferver as Tinker Bell. PAGE C1

ARTS C1-7

Leonard Bernstein’s ‘Peter Pan’The goal for the product, which haslong languished in yogurt’s shadow, isto “uncottage” it — or, as one dairyexecutive put it, “Chobani it.” PAGE D1

FOOD D1-8

Cottage Cheese’s Comeback

The president signaled that he mightease a plan to impose sweeping invest-ment restrictions on China. PAGE B3

Trump Softens Line on China

Representative Joseph Crowleyof New York, once seen as a possi-ble successor to Nancy Pelosi asDemocratic leader of the House,suffered a shocking primary de-feat on Tuesday, the most signifi-cant loss for a Democratic incum-

bent in more than a decade, andone that will reverberate acrossthe party and the country.

Mr. Crowley was defeated by a28-year-old political newcomer,Alexandria Ocasio-Cortez, a for-mer organizer for Bernie Sand-ers’s presidential campaign, whohad declared it was time for gen-erational, racial and ideologicalchange.

The last time Mr. Crowley, 56,even had a primary challenger, in2004, Ms. Ocasio-Cortez was notold enough to vote.

Mr. Crowley, the No. 4 Demo-crat in the House, had drasticallyoutspent his lesser-known rival tono avail, as Ms. Ocasio-Cortez’scampaign was lifted by an ag-gressive social media presenceand fueled by attention from na-

tional progressives hoping to flextheir muscle in a race against a po-tential future speaker.

Ms. Ocasio-Cortez had used Mr.

Crowley’s role in the leadership,and the fact that he was the headof the local Democratic Party ma-chine, against him in her bid to up-end the existing political class.She will face Anthony Pappas, theRepublican candidate, in the No-vember general election.

Mr. Crowley is the first HouseDemocrat in the nation to lose a

Democratic Power Broker, Once a Possible House Leader, Loses New York PrimaryBy SHANE GOLDMACHERand JONATHAN MARTIN

Continued on Page A21

LIFTED BY A NOD FROM TRUMP

Gov. Henry McMaster of SouthCarolina won his runoff after arally with the president. Page A18.

Late EditionToday, sunshine, then increasingclouds, high 77. Tonight, cloudy, hu-mid, showers or thunderstorms, low69. Tomorrow, a few showers, thun-der, high 82. Weather map, Page C8.

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