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WHITE PLAINS, N.Y. Ber-nard B. Kerik, a former detectivewho rose to lead the New York Po-lice Department before his careercrumbled in scandal, pleaded guiltyThursday to eight charges includingtax fraud and lying to White Houseofficials.

The prosecution and the defense

recommended that Judge StephenC. Robinson sentence Kerik to 27 to33 months. The judge set sentencingfor Feb. 18. Kerik was ordered to payrestitution of nearly $188,000.

For the swaggering Kerik, themorning marked the low point in acareer filled with operatic twists.Kerik was a police detective whenRudolph W. Giuliani chose him ashis bodyguard and chauffeur duringhis first mayoral campaign. The twomen forged a connection that lastedthroughout Giulianis mayoraltyand beyond.

Giuliani appointed Kerik to a se-nior position in the Correction De-partment, and then as the citys 40thpolice commissioner even thoughhe lacked a college degree.

Kerik led the Police Departmentthrough the 9/11 attack, meetingPresident Bush at the ruins of theWorld Trade Center. Kerik im-pressed the president enough thatthe White House tapped him tolead the Department of HomelandSecurity in 2004. The bid quicklycollapsed and Kerik withdrew hisname from consideration, citingunpaid taxes for his familys nanny.More serious allegations then be-gan to surface.

The case against Kerik centeredon claims that a New Jersey con-struction firm, the Interstate Indus-trial Corp., suspected of organizedcrime ties, paid for much of therenovation work at Keriks home inthe Bronx, in the hope that he wouldhelp the company obtain a city li-cense.

Kerik admitted to allowing Inter-state to pay about $250,000 to reno-vate his apartment while he wascorrection commissioner, and tocontacting officials on Interstatesbehalf. SAM DOLNICK

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An Army psychiatrist facingdeployment to one of Americaswar zones killed 12 people andwounded 31 others on Thursdayin a shooting rampage with twohandguns at the sprawling FortHood Army post in Central Texas,military officials said.

The gunman, who was stillalive after being shot four times,was identified by law enforce-ment authorities as Maj. NidalMalik Hasan, 39, who had been inthe service since 1995. Hasan wasabout to be deployed to Iraq or Af-

ghanistan, said Sen. Kay BaileyHutchison, R-Texas.

Clad in a military uniform andfiring an automatic pistol and an-other weapon, Hasan, a balding,chubby-faced man with heavyeyebrows, sprayed bullets insidea crowded medical processingcenter for soldiers returning fromor about to be sent overseas, mili-tary officials said.

The victims, nearly all militarypersonnel but including two civil-ians, were cut down in clusters,the officials said. Witnesses toldmilitary investigators that med-ics working at the center toreopen the clothing of the dead andwounded to get at the wounds andadminister first aid.

As the shooting unfolded,military police and civilian of-ficers of the Department of the

Army responded and returnedthe gunmans fire, officials said,adding that Hasan was shot by afirst-responder, who was herselfwounded in the exchange.

In the confusion of a day of wildand misleading reports, the ma-jor and the officer who shot himwere both reported killed in thegun battle, but both reports wereerroneous.

Eight hours after the shootings,Lt. Gen. Robert W. Cone, a basespokesmen, said Hasan, whom

he described as the sole gunmanhad been shot four times, but wahospitalized off the base, undeguard, in stable condition anwas not in imminent danger odying.

Another military spokesmalisted the majors condition acritical. The condition of the oficer who shot the gunman wanot given.

Hasan was not speaking to investigators, and much about himotives was unknown.

Cone said that terrorism wa

not being ruled out, but that preliminary evidence did not suggesthat the rampage had been an acof terrorism. Fox News quoted retired Army colonel, Terry Leeas saying that Hasan, with whomhe worked, had voiced hope thaPresident Obama would pull U.troops out of Iraq and Afghanstan, had argued with militarcolleagues who supported thwars and had tried to prevent hiown deployment.

As ambulances wailed to thscene, officials said the extent oinjuries to the wounded variesignificantly, with some in critcal condition.

Obama called the shootings horrific outburst of violence anurged Americans to pray for thoswho were killed and wounded.

ROBERT D. McFADDEN

WASHINGTON Born in Vir-ginia, the son of immigrant par-ents from a Palestinian town nearJerusalem, he joined the Armyright out of high school. The Armyput him through college and thenmedical school, where he trainedto be a psychiatrist.

But Maj. Nidal Malik Hasan,the 39-year-old man accused ofThursdays mass shooting at FortHood, Tex., began having secondthoughts about a military career afew years ago after other soldiersharassed him for being a Muslim,he told relatives in Virginia.

He had also more recently ex-pressed deep concerns about be-ing sent to Iraq or Afghanistan.Having counseled scores of re-turning soldiers with post-trau-

matic stress disorder, first at Wal-ter Reed Army Medical Center inWashington and more recentlyat Fort Hood, he knew all too wellthe terrifying realities of war, saida cousin, Nader Hasan.

He was mortified by the ideaof having to deploy, Hasan said.He had people telling him on adaily basis the horrors they sawover there.

The F.B.I. earlier becameaware of Internet postings by aman calling himself Nidal Hasan,a law enforcement official said.The postings discussed suicidebombings favorably, but the in-vestigators were not clear wheth-er the writer was the major. Inone posting, a man named NidalHasan compared the heroism of

a soldier who throws himself ongrenade to protect fellow soldierto suicide bombers.

Nader Hasan said his cousinever mentioned in recent phoncalls that he was going to be deployed.

Major Hasan had two brothers, one in Virginia and anothein Jerusalem, his cousin said. Thfamily, by and large, prospered ithe United States, Hasan said.

Hasan, 40, a lawyer in Virginisaid his cousin became mordevout after his parents died i1998 and 2001. His parents didnwant him to go into the militaryHasan said. He said, No, I waborn and raised here, Im gointo do my duty to the country.

JAMES DA

Told of War Horror, Suspect Feared Deployment

12 Killed in Rampage at Army Base

RODOLFO GONZALEZ

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Friday, November 6, 2009 Midnight in New York 2009 Th Nw yk TFROM THE PAGES OF

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WASHINGTON A series ofgovernment reviews have pre-sented the Obama administrationwith a dire portrait of Afghani-stans military and police force.

As President Obama considershis top commanders call to rap-idly double Afghanistans secu-rity forces, the internal reviewsdescribe an overstretched enter-prise struggling to nurse along thepoorly led and largely illiterate Af-ghan forces.

In September, Gen. StanleyA. McChrystal, the top U.S. com-mander in Afghanistan, recom-mended increasing the AfghanArmy as quickly as possible to134,000 in a year from the currentforce of more than 90,000, andperhaps eventually to 240,000. He

would also expand the police forceto 160,000.

Nothing in our experience overthe last seven to eight years sug-gests that progress at such a rapidpace is realistic, said Rep. John F.Tierney, D-Mass., chairman of aHouse panel on national security.

Among the conclusions in thenew reports: one out of every fouror five men in the security forcesquit each year, meaning that tensof thousands must be recruited

just to maintain the status quo.The number of Afghan battalionsable to fight independently actual-ly declined in the past six months.

The most significant challengeto rapidly expanding the AfghanNational Security Forces is a lackof competent and professionalleadership at all levels, and the in-ability to generate it rapidly, con-cluded an assessment from theU.S.-led training headquarters.

Another September report, thePentagon inspector generals an-nual review of the training pro-gram, warned that any accelera-

tion will face major challenges. A third assessment, a quarterly

report sent to Congress last week,revealed that despite the forma-tion of new army battalions, fewerof them were capable of operatingindependently. One reason maybe that the Afghan Armys jerry-

built logistics system, a relic of theSoviet era and one of the trainingprograms orphans, has become adrag on the combat forces.

Among other problems, one of

the reports found, the U.S. mili-tarys training headquarters sim-ply does not have enough peopleto do all it is already being askedto do, a flaw that unless correctedwould only prolong the U.S. pres-ence in Afghanistan.

Construction is also falling be-hind, leaving recruits living intents and making a boom in bar-racks-building problematic, sincethere are not yet enough qualifiedengineers.

And attempts to draw Afghanbusinesses into the war efforthave backfired. One local start-

up company assigned to do basicweapons maintenance for the Af-ghan Army tried to use hammersand nails to hold grenade launch-ers together and ultimately had tobe trained by a U.S. contractor.

THOM SHANKERand JOHN H. CUSHMAN Jr.

Big Obstacles Seen in Afghan Training Effort

KABUL, Afghanistan TheU.N. mission in Afghanistan an-nounced plans on Thursday torelocate hundreds of foreign staffmembers, sending some out ofthe country, in the wake of a lethalattack on its workers at a guest-house last week.

The relocation of its workershere, while temporary, was onemore signal of mounting pressureon U.N. operations as security de-teriorates around the region. Themove comes just four days afterthe United Nations announced itwas withdrawing its internationalworkers from northwestern Paki-stan, where insurgents are fight-ing Pakistani troops and have car-

ried out a string of attacks.In recent weeks, U.N. workers

on both sides of the border havebeen singled out in deadly attacks,in what appears to be a deliberatecampaign by insurgents to under-cut international support for theembattled Afghan and Pakistanigovernments.

Five U.N. workers for the WorldFood Program were killed in a sui-cide attack at the programs offic-es in the Pakistani capital, Islam-abad, in early October. Last weekin Kabul three insurgents dressedin police uniforms scaled the frontgate of a guesthouse housing Unit-ed Nations personnel to mount aterrifying two-hour siege.

Five of the United Nations in-ternational staff members werekilled, along with two Afghan se-curity officials and the brother-in-law of a prominent Afghan politi-cian, before the attackers wereshot and killed. The strike was thebiggest on the United Nations inAfghanistan in its half-century ofwork here.

A U.N. spokesman, Adrian Ed-wards, said Thursday that about600 international staff memberswould be temporarily relocatedeither to other places in Afghani-stan or outside the country, pri-marily Dubai and Central Asiancountries. ALISSA J. RUBIN

U.N. to Relocate Hundreds of Afghanistan Workers

RAMALLAH, West Bank ThePalestinian president, MahmoudAbbas, warned on Thursday thathe would not seek re-election, thelatest sign that the Obama admin-istrations drive to broker a Mid-dle East peace accord has falleninto disarray.

Abbas, 74, has threatened to stepaside before, but his announce-ment, coming immediately afterSecretary of State Hillary Rod-ham Clintons visit to the region,

laid bare the deepening tensionsover the Americans failure to ex-tract an Israeli settlement freezeor any concessions from Arableaders.

Clintons visit sowed anger andconfusion among Palestinians andother Arabs after she praised asunprecedented the offer by theIsraeli prime minister, BenjaminNetanyahu, to slow down, but notstop, construction of Jewish settle-ments in the West Bank.

It was not clear whether Abbaswas determined to quit, althoughhe said his decision was final.What seems clear is that high-lev-el peace talks will not resume anytime soon. A top aide to Abbas saida large part of his despondencyand frustration was because ofObamas unrealized promises.Without a stop to Jewish settle-ments, he said, Islamist rivals inHamas could triumph, and vio-lence could break out. (NYT)

Palestinian President Rules Out a Race for Re-Election

Interntion InquiryOn Kenyn Vioence

Members of the political elite

in Kenya could face an inter-national investigation into theviolence that shook the coun-try after elections last year. After months of stonewalling byKenyan politicians, Luis More-no-Ocampo, the chief prosecu-tor of the International Crimi-nal Court, said Thursday thatcrimes against humanity hadbeen committed during thepostelection period and that hewould seek a formal investiga-tion. Several of the prime sus-pects, accused by human rightsgroups of masterminding the

violence, are high-ranking gov-ernment ministers. (NYT

Sudis Join Fight

Saudi warplanes bombed agroup of Yemeni rebels lateWednesday on the countriesborder, a day after the rebelsoverran a strategic hilltop andkilled a Saudi border guard.The airstrikes appeared to sig-nal an expansion of the waragainst the Houthi rebels, whohave been fighting the Yemenigovernment intermittently for

more than five years. (NYT

2 to Fce ChrgesIn Moscow Kiings

Two young people identifiedas ultranationalists will facecharges in the January shoot-ing that killed a crusading law-yer, Stanislav Markelov, and areporter, Anastasia Baburova,in an attack that cast a pall oveRussian human rights activ-ists. Prosecutors announced thearrest of Nikita Tikhonov andYevgenia Khasis, both in their

20s, who appeared in court withblack hoods over their heads.The chief of the Federal Security Service said they were identfied during a crackdown on ex-tremist groups. (NYT

Krdzic Tri Hted

Judges ordered Thursdaythat a lawyer be imposed onRadovan Karadzic, the formerBosnian Serb leader on trial inThe Hague, but halted the trialuntil March 1, to give a lawyertime to get ready. (NYT

In Brief

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CLEVELAND After the thirdpolice station in a row refusedto take a missing person reportabout her niece two years ago,Sandy Drain took matters into her

own hands.She organized search parties

to comb abandoned houses. Shegot neighborhood children tohelp post fliers on light poles. Sherecruited a national advocacygroup for missing persons to holda rally. She even hired a psychic tolook for clues in her nieces apart-ment.

It was pretty obvious the po-lice werent going to help us,said Drain, 65, who added that thepolice only began seriously in-vestigating the case of her niece,Gloria Walker, after her initial ef-

forts prompted the news media tobegin asking questions.

If youre from this neighbor-hood, you come to expect that,she said.

Her desperation and angerhave grown here on Clevelandseast side since the police last weekarrested Anthony Sowell, a con-victed sex offender who has beencharged with multiple counts ofmurder after 11 decomposing bod-ies were discovered in his houseand backyard.

Despite being accustomed todrugs and violence, residents saidthey were shocked by the casesgruesomeness and appalled that aman convicted of attempted rapehad apparently been able to hidesuch heinous crimes, even as au-thorities were regularly checkingup on him.

Community activists addedthat in recent years they had re-ceived dozens of reports from

residents in this largely poor andblack neighborhood who told ofencountering similar frustrationsin getting the police to investigatecases of missing adults.

They belittled it and madejokes, said Barbara Carmichaelabout her repeated and failed ef-forts to file a missing person re-port about her daughter Tonia,whose body was the first of the 11found in Sowells house to be iden-tified this week. They told me towait a while because she wouldreturn once all the drugs weregone.

Law enforcement officials saidthey did everything they could.We take these cases seriously,said Lt. Thomas Stacho, a spokes-man for the Cleveland Police De-

partment.In the case of Drains niece

certainly our records show thawe spent a significant amounof time investigating the disap

pearance, Stacho said, includinchecking leads, looking up licensplates and obtaining Walkerdental records.

Experts on crime also point outhat unlike cases involving missing children, where the polictypically react quickly, cases involving missing adults are morcomplicated. With adults, the police tend to investigate only whethere is clear evidence of foul playrather than just signs of a family feud or the disappearance oa drug addict who, perhaps, hachosen to remain out of touch.

Many of the women from thneighborhood who were reportemissing were known drug useraccording to neighbors and thpolice.

But as a crowd gathered tstare at the cream-colored duplex where Sowell lived one othe better-maintained homes ia neighborhood filled with abandoned houses many peoplsaid it should not matter whethea person was a drug user for thpolice to investigate.

Many also wondered alouwhether they knew anyon

among the dead.She has been missing sinc

April, Fawcett Bess, owner of thpizza shop across the street fromSowells house, said of a formegirlfriend of Sowells. But nobodreally paid any attention becausshe was into the dope. Its crazy.

IAN URBINAand CHRISTOPHER MAA

Gruesome Find Has Neighbors Angry at Police

WASHINGTON HouseDemocratic leaders worked furi-ously Thursday to secure the final

votes for weekend approval of asweeping health care overhaulas President Obama threw hisweight behind the lobbying effortand Republicans dug in againstthe health plan.

Democratic vote counters,working as thousands of conser-vative protesters chanted Killthe Bill outside the Capitol andlater swarmed through Congres-sional office buildings, said theydid not yet have the necessary 218confirmed supporters. But theysaid they were confident theywould exceed that total in time for

a landmark vote set for Saturdayon the $1.1 trillion, 10-year healthplan.

President Obama made a sur-prise public appearance at theWhite House on Thursday to her-ald endorsements for the Housemeasure from the American Med-ical Association and AARP.

Republicans were engaged ina determined effort to block themeasure, with House Republi-cans lining up to address thou-sands of conservatives gatheredat the West Front of the Capitol.No House Republican is expectedto vote for the measure.

Some Democrats from moreconservative districts, such asReps. Ike Skelton of Missouri, DanBoren of Oklahoma, Jim Marshallof Georgia and Bobby Bright of Al-abama, made it clear they wouldoppose the measure.

CARL HULSE andDAVID M. HERSZENHORN

Leaders Scramble

For Health Votes

Jobess aid Wins Pssge

The government moved Thursday to as-sist long-unemployed workers and strug-gling businesses, as well as home buyersand homeowners facing foreclosure. FannieMae announced a Deed for Lease programin which those in danger of eviction may beable to stay as tenants in their houses for atleast a year. Congress gave final approvalto a measure that will extend unemploy-ment benefits. Other provisions of the billwill expand two popular tax breaks onefor home buyers, the other for businessesoperating at a loss. President Obama willsign the measure into law on Friday morn-ing, aides said. (NYT)

Democrts Push Cimte Bi

Democrats on the Environment and Pub-lic Works Committee pushed through a cli-mate bill on Thursday without any debateor participation by Republicans. The 959-page measure passed by an 11-to-1 votewith the support of all the Democrats ex-cept Sen. Max Baucus of Montana. Republi-cans boycotted the meetings. (NYT)

Poygmist Convicted

One of the leaders of a polygamist sectwas convicted Thursday night of sexual-ly assaulting an under-age girl whom thechurch elders had assigned to him as one of

his nine wives. A jury of seven men and fiv

women in El Dorado, Tex., deliberated twohours and 20 minutes before returning averdict of guilty in the first trial of a dozenmembers of the Yearning for Zion Ranch.The defendant, Raymond M. Jessop, 38, wilbe sentenced after a second hearing beforethe jury on Monday. (NYT

Ruing on Snford Trve

The South Carolina Supreme Court ruledthat an ethics investigation into Gov. MarkSanfords travel must be made public,clearing the way for lawmakers consider-ing impeachment to review a report on theinquiry. (AP

In Brief

KEN BLAZE FORthE NEw YORK timEs

sandy Dran nee ang for o year.

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After weeks of speculation onWall Street, prosecutors broughta fresh round of insider tradingcharges on Thursday that left nodoubt they are aimed at hedge

funds and the networks of marketgossip that are endemic on trad-ing floors.

The charges, against 14 moneymanagers, lawyers and other in-vestors, followed the arrest lastmonth of a hedge fund billionaire,Raj Rajaratnam, on charges thathe had profited from inside infor-mation.

Prosecutors described a net-work that used prepaid cell-phones to avoid detection, andthat was pierced in part throughsurveillance and wiretaps.

One law enforcement official,

speaking on condition of anonym-ity because the investigation iscontinuing, said the authorities

expect to make more arrests inthe coming weeks. The investi-gation is part of a broad FederalBureau of Investigation push intocrimes related to hedge funds.

And for the first time, the au-thorities hinted that they mightbe brushing against the pinnacleof the hedge fund world, S.A.C.Capital Management, a $12 billionfund company. Neither S.A.C. norany current employee has beencharged with wrongdoing.

The broadest of Thursdayscomplaints names seven defen-dants, including Arthur J. Cutillo,a lawyer at the prestigious firm ofRopes & Gray, who is accused ofoffering tips on impending take-overs that the firm worked on.The tips were then passed among

a group of lawyers and traders.Prosecutors also announced

five guilty pleas from hedge fund

managers in Massachusetts andCalifornia, including one fromRoomy Khan, the witness at thecenter of the case against Raja-ratnam.

As part of a plea agreementmade public Thursday, prosecu-tors agreed not to charge RichardChoo-Beng Lee, a California fundmanager who worked at S.A.C.from 1999 through January 2004,on any insider trading he commit-ted at S.A.C. as long as he had dis-closed the insider trading to them.Lee pleaded guilty in October toinsider trading while running hisown hedge fund last year.

Jeffrey L. Bornstein, Lees law-yer and a partner at K&L Gates,said Lee was cooperating withthe authorities and could not

comment on the letter or whatinformation Lee might be able toprovide. ALEX BERENSON

14 Charged in Widening Insider Trading Case

We have become so paranoidfor no reason, the young tradertold his friend in an evening callon his cellphone in late Febru-ary 2008. There was always areason to be paranoid, his friendresponded, and they agreed tocontinue their talk at their Man-hattan gym.

The topic was illegal insidertrading, according to federalprosecutors and market regula-tors. And the paranoia was justi-fied: the calls were being inter-cepted by the F.B.I. as part of anexpanding investigation by thegovernment into the improperuse of confidential informationby Wall Street traders.

On Thursday, the trader, ZviGoffer, 32, was arrested and ac-cused of being the linchpin of an

illegal tipping-and-trading ring soelaborate that he was nicknamedOctopussy, because his tenta-cles touched so many confidentialsources, prosecutors said.

One of those sources, accord-ing to prosecutors, was Arthur J.Cutillo, 33, a lawyer at the presti-gious firm of Ropes & Gray, whowas also arrested Thursday. Hewas accused of sharing secret in-formation with Goffer on at leastfour deals the law firm was han-dling for clients.

Goffer and some of the otherpeople arrested Thursday hadpersonal and professional linkswith defendants in a larger insid-er trading case pending againstthe Galleon Group hedge fund;its founder, Raj Rajaratnam; andother defendants added to the

case through a new civil com-plaint filed by the Securities andExchange Commission on Thurs-day.

When we announced our firstarrests three weeks ago, I saidthis case would be a wake-up callfor Wall Street, said Preet Bha-rara, the U.S. attorney in Manhat-tan. Well, today the alarm bellshave only grown louder.

Unlike the Galleon case, wheresenior officials at corporationspassed tips on early earnings es-timates to people at the fund, theGoffer case centers on allegationsthat may sound more familiar tostudents of the insider tradingscandals of 25 years ago earlytips about deals from the peopleinvolved in doing them.

DIANA B. HENRIQUES

Insider-Trading Scheme That Brought in $20 Million

Athena Gurno thought her al-lergies were acting up when shestarted coughing in early Octo-ber. But within days, Gurno, 30,was in a Seattle hospital, close todeath from the H1N1 flu.

Desperate, her doctors trieda still-experimental drug calledperamivir. After getting her sec-ond dose, Gurno started to recov-er, though she is still in intensivecare, according to her father, JohnSpikowski.

This saved Athenas life,Spikowski reported on a blog that

tracks his daughters progress.Peramivir may also be a life

saver for its developer, BioCrystPharmaceuticals, which wasfounded in 1986 but has never hada drug reach the market.

On Thursday, the federal gov-ernment ordered 10,000 treat-ment courses of peramivir for itsnational stockpile. It is paying$22.5 million, or about $2,250 perpatient. Shares of BioCryst rosenearly 13 percent, to $11.39.

Peramivir is given intrave-nously, making it usable by hospi-

talized patients who are too ill totake two approved flu drugs thatwork against the virus in similarways Tamiflu by Roche, whichis typically given as a pill, or Re-lenza from GlaxoSmithKline,which is inhaled.

Late Thursday, the govern-ment announced orders for intra-venous versions of Tamiflu andRelenza, which are much cheaper a development that could forceshares of BioCryst to give upsome of their gains.

ANDREW POLLACK

U.S. Turns to New Drug for Serious Cases of H1N1 Flu

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For months now, consumershave been hunkering down, buy-ing only what they need to sur-vive, like groceries, diapers, medi-cine and shoes.

Shoes?The American public, it would

seem, cannot carry on withoutnew shoes, which have been sell-ing well as the broader economystruggles toward recovery.

Retailing executives and ana-lysts offer varying explanations.The one favored by many of themis that consumers consider shoesa necessity, so people feel lessguilt about buying them.

I would argue you wear out

shoes more than you wear outhandbags, said Marie Driscoll,an analyst with Standard & PoorsEquity Research who is adept atrationalizing her own shoe pur-chases. Living in New York, shewalks everywhere. I use the ar-gument, If I spend $150 to $300 onshoes, this is my car.

Many shoes, of course, can behad for a lot less than that, whichmakes them a recession-friendlyindulgence. Most of the shoes be-ing bought today are moderatelypriced, according to retailers andmarket researchers.

Also, the cost-per-wear of a pairof shoes is far lower than that of

a dress or suit, which can only bedonned so many times a week be-fore colleagues snicker. And newshoes spruce up old outfits.

Another popular theory is thatas the economy has inspired aback-to-basics mentality, withfamilies dining and vacationing athome, people are focusing on freeoutdoor activities that requirecomfortable or rugged shoes.

Shoe buyers for major retailingchains said sales were also drivenby styles for children and babies.Children regularly grow out ofshoes and parents are typicallyloath to scrimp on their children.

STEPHANIE ROSENBLOOM

Shoes Are the Recessions Not-So-Guilty Pleasure

It took just five weeks after theWorldCom accounting scandalerupted in 2002 for Congress topass, and President George W.Bush to sign, the Sar-

banes-Oxley Act. Thatlaw required public com-panies to make sure theirinternal controls againstfraud were not full ofholes.

But this week, a Congressionalcommittee voted to repeal a cru-cial part of the law. Other partsare also under attack.

Sarbanes-Oxley was passed,almost unanimously, by a Re-publican-controlled House anda Democratic-controlled Senate.Now a Democratic Congress isgutting it.

The House Financial ServicesCommittee this week approvedan amendment to the InvestorProtection Act of 2009 to allowmost companies not to complywith the law, and mandating astudy to see whether it would bea good idea to exempt additional

companies as well.Some veterans of past reform

efforts were left sputtering. Thatthe Democratic Party is the ve-

hicle for overturning

the most pro-investorlegislation in the past 25years is deeply disturb-ing, said Arthur Levitt,a Democrat who was

chairman of the Securities andExchange Commission underPresident Bill Clinton. Anyonewho votes for this will bear theinvestors mark of Cain.

Those who favored the amend-ment saw it differently. They weresimply out to help small business-es, which would be burdened byhaving to report on whether theymaintained acceptable financial

controls, and to have auditorscheck on whether those controlsdid work.

They also suggested that moreforeign companies would list theirsecurities in the United States ifthey were spared that require-ment. No one seems to have asked

if investors would benefit frommaking it easier to invest in com-panies that fear such an audit.

There are other threats to Sar-banes-Oxley.

The law set up a long-overduesystem of regulating the account-ing industry. The Public CompanyAccounting Oversight Board hasdone a credible job, but a monthfrom now the Supreme Court willhear a case that could drive it outof existence.

The Sarbanes-Oxley law alsoreinforced the independenceof the Financial AccountingStandards Board, which writesaccounting rules in the UnitedStates. But this year, a subcom-mittee of the House Financial Ser-vices Committee held a hearing at

which legislators threatened direaction if the chairman of the fi-nancial accounting board did notmake it easier for banks to ignoremarket values of the toxic securi-ties they owned. The board cavedin, which may be one reason whybanks are reporting fewer losses.

Goodbye to the Accounting Reforms of 2002

Prosecutors spent nearly threehours on Thursday wrapping uptheir case against two formerBear Stearns hedge fund manag-ers, arguing that the two knewtheir funds were in trouble in thespring of 2007 and lied to inves-tors.

If you are trusted with otherpeoples money on Wall Street,you cant defraud them, Assis-tant U.S. Attorney Ilene Jaro-slaw told jurors in her closingremarks.

The two men, Ralph Cioffi andMatthew Tannin, thought thelaws and rules applied to every-one else but them, she added.

Cioffi is also facing insidertrading charges on allegations hemoved $2 million he had investedin one of the failing hedge fundsto another less risky fund whiletelling investors he was adding tohis position.

This case is not about hedgefund strategy or what happenedin the market in 2007, Jaroslaw

told the jury, which is expected tobegin deliberations next week.

What it is about, is the two de-fendants lied to their investors.Its not about the future, sheadded, But a case of black andwhite lies.

Dane Butswinkas, Cioffis mainlawyer, said prosecutors havetaken e-mail messages out ofcontext and provided mislead-ing sound bites to try to prove acriminal conspiracy when therewas none. ZACHERY KOUWE

Final Arguments Against 2 in Bear Stearns Fraud Case

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Shares of the following companies mayhave unusual moves in U.S. trading to-morrow. Stock symbols are in parentheses, and prices are as of 5:55 p.m. inNew York.

Crcs Inc. (CROX:US) lost 5 percent t$6.50. The maker of colorful clogs withholes forecast fourth-quarter adjustedloss of as much as 20 cents a share,wider than the average analyst estimatof a loss of 16 cents.

Nvidia Crp. (NVDA:US) climbed 5.9percent to $12.99. The maker of graphics chips reported third-quarter prof-

it excluding some items of 19 cents ashare, beating the 10-cent average ofanalyst estimates.

Sthebys (BID:US) fell 7 percent to$16.94. The auction house reportedthird-quarter adjusted loss of 84 centsa share as art sales contracted with theglobal economy. On average, the threeanalysts surveyed by Bloomberg fore-cast a loss of 29 cents a share.

Starbucks Crp. (SBUX:US) rose 3.9percent to $20.46. The coffee-shop operator reported fourth-quarter profit ex-cluding some items of 24 cents a shareas cost cuts expanded margins. Theearnings beat the average analyst esti-mate by 15 percent. (blg

Stocks on the Move

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WESTPORT, Mass. In thislittle town on the south coast, peo-ple like me summer folk areknown as skukes. Ive never metanyone who knows the real deri-

vation of the term, but its not acompliment. Skukes are annoyingbecause they drive up the price ofreal estate and because they do forfun what year-rounders do for aliving. Take lobstering, for exam-ple. Most of the summer there wasa local man at the town dock sell-ing lobsters for a very reasonable$4.99 a pound. Skukishly, I thoughtI would be more enterprising andtry to catch my own. My goal wasby the end of the summer to hearmy family complain: What? Lob-ster again?

Over about a month Chip

Gillespie, my pal and partner inthis enterprise, and I managed toland six keepable bugs as welobstermen say and taking intoaccount the cost of gas, bait andthe lobster traps themselves, I fig-ure they worked out to about $50a pound. Not a bargain, certainly,but they tasted better than anylobster Id ever had.

I also had incalculable amountsof fun and on two occasions scaredmyself half to death once inseas swollen by Hurricane Billthat were almost more than myboat could handle, and once byalmost falling overboard before Iwas even out of the harbor. Thiswas very early in the morning,

though, and except for Chip, Impretty sure no one saw me, or else

I would be a new skuke legend.The first thing you learn about

lobstering is that nobody reallyunderstands lobsters. Lobsterslike the shelter of rocks and prefercold water to warm. They movearound a lot and find their foodby smell thats what the anten-nas are for and not by sight. Butthe whole notion of trapping themmay be a misconception. Thereis some evidence to suggest thatthe traditional lobster pot, with itstwo rooms the kitchen andthe parlor, as theyre known and funnel-shaped nets, is not asconfining as fishermen think, andthat the bugs come and go more orless as they please. The cage may

be more a restaurant, in otherwords, than a jail. One theory saysthat the bugs you catch are justthe ones that happen to be thereat the time.

Chip and I nevertheless bought10 traps the state limit for rec-reational lobstering. We wastedabout a month painting the buoysa garish blue and orange, not verytraditional but smart as it hap-pened, because garish orange iseasy to spot from a distance. Find-ing your traps after you put themin, we discovered, is by far thehardest part of lobstering.

On a good day wed find all 10,but often one or two went unac-countably AWOL for a day or two,and a couple of times we failed tofind the offshore set altogether.

For bait we used frozen pogiesfrom the local tackle shop. Freshwould have been cheaper but alsosmellier. Next year we might eventhink about catching our own.

Checking the traps, allowingtime for aimless circling, took acouple of hours, and we did it ev-ery few days.

More often than not wed returnempty handed What? No lob-ster again? though on threememorable occasions there were apair of bugs, yellow rubber bandsnow around their claws, scuttlingin the bucket. When they got too

rambunctious, we told them to cutit out.

CHARLES McGRATH

Ask most people what they thinkof when they hear the word Bau-haus, and theyre likely to come upwith tubular steel furniture, pre-fabricated housing, ranks of naveutopians and Tom Wolfes with-ering disdain for all of the above.A show about the Bauhaus? Nothanks. Who, after all, really needsto see another Breuer chair?

Which is why Bauhaus: Work-shops for Modernity, opening onSunday at the Museum of ModernArt, is such an unexpected treat.The kind of exhibition that comesaround once in a rare while, ittakes a sledgehammer to the cli-chs, particularly the notion thatthe Bauhaus marched in lockstepto a single vision.

Organized by Barry Bergdoll,the museums chief curator of ar-chitecture and design, and LeahDickerman, its curator of paintingand sculpture, the show makes

much of the ideological and cre-ative clashes that rocked theschool during its brief but remark-able history between commer-cial and creative values, pragma-tists and idealists, social activistsand aesthetes. It makes a convinc-ing case that the remarkable cre-ative output of the Bauhaus had asmuch to do with this constant dis-cord as with the individual geniusof any of its members.

Even more unexpected is howrelevant much of the schools mis-sion still feels, from the ongoingeffort to come to terms with mind-bending technological advancesto the desire to serve an audiencebeyond the cultural elite. Its truethis mission was pursued with anoptimism that would be hard toconjure today, but if the show hasa message, its that a little naivetcan be productive.

One of the many revelations

here is the quasi-religious mysti-cism that infused parts of the Bau-haus in its earliest years. The firstimage you see when you step intothe galleries is an expressionistpainting from 1919 by Johannes It-ten, who ran the schools introduc-tory course. Its colorful abstractforms, which break down intoa dense pattern of overlappingtriangles, circles and rectangles,evoke the refracted glass of astained glass cathedral window.

The show allows you to glimpsehow the schools creative clasheswere a reflection of how muchtheir participants had at stake both aesthetically and politically in the future. All of them livedsomewhere between the world asthey saw it and the world as theywished it could be. Their yearning,never fulfilled, haunts you long af-ter you leave the show.

NICOLAI OUROUSSOFF

Finding a Bit of Animal House in the Bauhaus

MARIETTA, Ohio A deecurrent of history runs througthis quiet town of 15,000 nestled ithe arms of the Ohio and Musking

um Rivers. Indians first left theimark here, in great earthen buriamounds. Then, as the first chartered city in the Northwest Territory, Marietta felt the nationinitial footprints as it strode west

As the birthplace of governorsenators and even a vice presdent, Marietta has had a historiimpact on its state and nation thatranscends its small size. For vistors that history is meticulouslpreserved in the towns brickpaved streets, stately 200-yearold homes and more than 30monuments.

The town was settled in 1788when Gen. Rufus Putnam led 4former Revolutionary War oficers in a crude flatboat to thrivers junction, where they buia fortified settlement. GeorgWashington who owned lanin the area actively encouragethe arduous journey.

Visitors can tour Campus Martius on Second Street, the territories first civilian settlement. Thmuseum encloses Putnams homon its original foundation; thicbolted shutters, rough floors anan open hearth testify to the pioneers hard life.

Campus Martius isnt fancieup like Williamsburg, said JameODonnell, a longtime history professor at Marietta College. But you want to see how a middle-clasfamily lived in the 1790s sleeping eight to a room and cookinover an open fire here it is.

A trolley tour by local guides iprobably the best way to begin Marietta visit. The trolleys cruispast landmarks like the MeigHouse, built in 1802 and home oa postmaster general aptlnamed Return J. Meigs. One of thtours chief attractions is MounCemetery on Fifth Street. Said tbe the resting place of more Revolutionary War officers than angraveyard in the nation, it also hathe so-called Great Mound, or Conus, built by Indians as long ago a800 B.C. ROBERT C. YEAGER

River Town WhereThe West Began

The Lobsters That Got Away, and Didnt

jODi hiLtON FOR thE NEw YORK timEs

A kke goal: anglober drng e er.

Arts Beat

No. 1 omission from Top 10

book list: Women.

nytimes.com/rtsbet

FEaTURE Friday, November 6, 2009 6

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Not long ago, gene therapy seemed trou-bled by insurmountable difficulties. Afterdecades of hype and dashed hopes, many whoonce embraced the idea of correcting geneticdisorders by giving people new genes all but

gave up the idea.But scientists say gene therapy may be on

the edge of a resurgence. There were threerecent, though small, successes one involv-ing children with a fatal brain disease, onewith an eye disease that causes blindness andone with children who have a disease that de-stroys the immune system.

We are ready to move, said Dr. Luigi Nal-dini of the Institute for Gene Therapy at Vita-

Salute San Raffaele in Milan.Its exciting, added Dr. Kenneth Cornetta,

a gene therapy researcher at Indiana Univer-sity and president of the American Society ofGene and Cell Therapy. The science gets bet-

ter every year.The field was dealt a blow when the first

gene therapy success, reported six years ago,turned out to have a problem. Eighteen of20 children with a rare genetic disease werecured, but then three developed leukemia andone died of it. Researchers and gene therapycompanies became skittish.

I like to be really cautious, said Dr. MarkKay, a gene therapy researcher at Stanford.

But now, he added, there is a lot of reason-ably cautious optimism.

The latest encouraging news arises froma paper published Friday in the journal Sci-ence. An international team of researchers

is reporting the successful treatment of twochildren with adrenoleukodystrophy, or ALDin which the fatty insulation of nerve cellsdegenerates. A result is progressive braindamage and death two to five years after di-agnosis.

Scientists say they believe they avoided thecancer problem by using a different method tget genes into the childrens DNA. Two yearshave gone by, and the children are doing well

The children were not cured, but theirdisease was arrested. And gene therapy wasas good as the standard treatment for the dis-ease, a bone marrow transplant. In this case,the children could not have transplants be-cause they did not have marrow donors who

matched them genetically.In addition, a paper last month in the jour-

nal Lancet reported that a different methodof gene therapy, which did not involve insert-ing a new gene into DNA, partly restored thesight of five children and seven adults with arare congenital eye disease, Lebers congenital amaurosis. People with the disease have amutated gene that prevents them from mak-ing a retina protein.

While not in the DNA, the added gene re-mains in the body of the cells, directing theproduction of the missing protein and help-ing correct the disorder. The patients had nostandard treatment, and gene therapy offerethem a chance to see again, although theirsight was far from perfect.

And a paper in The New England Journal oMedicine a year ago reported that 8 out of 10patients with a rare immunological disorderwere cured with gene therapy. The methodwas the same as the one that led to leukemia,and Cornetta said scientists were still study-ing why it did not cause cancer in those chil-dren. GINA KOLATA

Scientists Are Seeing Signs of a Resurgence for Gene Therapy

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JOURNal Friday, November 6, 2009 7

ACROSS

1 Far Easternpilgrimagedestination

10 Page withconvictions

14 Dull type

15 Campus V.I.P.

16 Leader of thepack

17 Clearly riveted

18 One ___!

19 The Ballad of___, 1967comedy western

20 Made time

21 Suspension

22 Relatively stable

23 Solstice

celebrators26 Set up

28 ___ Bernina(highest peak inthe Eastern Alps)

30 Dull shade

31 Then

33 Someaudiophilescollections

36 Subject of the2005 biographyiCon

37 Spotted

38 Kafkas ___Hungerknstler

39 City in SanJoaquin County

40 Gruff

42 They may beglowing

44 WilliamMcKinleys Ohiobirthplace

46 Hamburgersacknowledgment

47 Availability sign

48 Occasionalmedicinedropper?: Abbr.

51 Not sowelcoming

52 John Hurt playedCaligula in it

54 They hadC-shaped soundholes

55 Avalanche, e.g.56 Best in shows

57 Where somebuffalo roam

DOWN

1 Theyre officiallyhonored on thethird Friday inSept.

2 Regard impolitely

3 Sexist, say

4 Stylized drama

5 A tall Romancolumn is namedafter him

6 Celebrated

7 Dr. Js almamater

8 The EnglishPatient Oscarwinner

9 Commentwhen followingsomeone

10 Source ofballpark pitches?

11 They go aroundon reservations

12 It often hascontrols

13 Like somechanged locks

15 Citadel feature

21 Pope who metwith Galileo

22 The FutureLies Aheadcomedian, 1958

23 By its nature

24 Wood distillationproduct

25 Its bulb is small

27 G.P.S. output:Abbr.

29 Vivacious31 Baseball

nickname thatsa portmanteau

32 Fibula neighbor

34 Theyreconcerned withchecks andbalances

35 Sight-seers atthe Prado?

40 Split

41 Trip part

43 Kiplings greatgray Lone Wolf

45 More terrific, to ahip-hopper

46 One may be

given a 1047 Nervous

reactions

48 Cabinetmember?

49 Shared air

50 Wine spot

53 Frank

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C R I C A J O L E D M E G

L A N A G E S A G O A D A

E N T R O S E S A R E R E D

A D O R E R S S N A K I N G

R O N I A E S G E N I E

C L A S P S S A S S E C T

U P T H E O S T I A

T H E I N V I S I B L E M A N

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A L A S T E P I N S L A E

T O R A D A P T T O E N D

11/6/09 (No. 1106)

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CROSSWORD Edited By Will Shortz

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e d i t o r i a l s o f t h e t i m e s

House Republican leaders have producedtheir own health care reform bill. It would doalmost nothing to reduce the high number

of Americans who have no insurance. And itmakes only a token stab at slowing the risingcosts of medical care.

Despite that, the Republicans are pitchingtheir bill as far more affordable than the Demo-crats approach. And you are sure to hear a lotin coming days about how it could reduce pre-miums. How it compares in that respect withthe Democratic proposal is not yet clear. But alot of the Republicans savings come from re-duced coverage. Pay less and get less.

The good news is that this bill has no chanceof passing. The bad news is that unless theDemocrats push back with the hard facts, theRepublicans could use it to spread false hope ofa cheaper alternative.

According to the Congressional Budget Of-fice, the Republican plan would provide $61billion over 10 years to expand coverage (com-pared with more than $1 trillion in the Demo-crats bill). That paltry effort, the budget officeestimates, would extend coverage to a few mil-lion people who would otherwise be uninsuredin 2019, leaving 52 million citizens and legalresidents below Medicare age without cover-age or about 17 percent of that population, rightwhere it is today.

The Republican bill has some good provi-sions, such as prohibiting insurers from impos-ing annual or lifetime caps on what they willpay, and automatic enrollment of workers inemployer-sponsored group coverage. But it

would not prevent insurers from denying cov-erage or charging higher premiums based onpre-existing conditions.

The Republicans have been railing that theDemocratic reforms will do little to slow therapid rise in medical costs. But neither partyhas a solution. The Republican bill would capmalpractice awards a clear infringementof the rights of injured patients. It would getlesser savings by requiring electronic transac-tions for administrative tasks and opening anapproval process for generic biological medi-cines. The Democratic bills would use both ofthose for savings and initiate an array of pilotprojects to try to find solutions.

The Republican bills emphasis is on reduc-ing premiums. Compared with current trends,the Congressional Budget Office estimatesthat under the Republican bill, the average pre-

mium would drop by 7 to 10 percent for employ-ees enrolled in group plans at small businessesand by 5 to 8 percent for people who buy theirown policies. At large employers, the averagepremium might drop by 0 to 3 percent.

Much of the premium reduction was attrib-uted to shrinking the services covered. TheDemocrats plan to set minimum benefit re-quirements to protect people from skimpy poli-cies that leave them without adequate protec-tion. The budget office is planning to estimatehow the Democratic bills would affect premi-ums. Americans need to know that so they canmake a full comparison. But there should beno illusions here. The affordable Republicanhealth care reform isnt health care reform.

The Republican Health Plan

Congress threw good money after bad thisweek when it voted to extend and expand awasteful home buyers tax credit set to expireat the end of the month.

The new program, which will continuethrough the spring, is being portrayed as arescue plan for the ailing housing market.But this costly giveaway to the real estateand mortgage industry will spend far morein taxpayers dollars than it can ever deliverin economic benefit. As happened with thecash-for-clunkers program in the automobileindustry, the program will make housing lookmomentarily better but is unlikely to contrib-ute to long-term recovery.

The original program allowed a credit of$8,000 for first-time home buyers who earn upto $75,000 individually or $150,000 filing jointly.The program got a black eye earlier this monthwhen the Treasury Departments inspectorgeneral for tax administration reported thattens of thousands of people had exploited loop-holes in the law to claim credits for which theyappeared not to be eligible.

But even before that, housing analysts werefinding that the tax credit did little for homesales. Between 80 percent and 90 percent ofthe people who have bought homes using the

credit would have purchased those homeswithout it. To put it another way, the tax credithas been wasteful spending, not stimulusspending.

The bill that passed both houses of Congressthis week extends the program through April2010 and grants the full tax credit to coupleswho earn up to $225,000. The expanded pro-gram introduces a $6,500 tax credit for peoplewho already own homes but want to buy newones.

The vote gives campaigning lawmakerssomething to crow about on the stump. But thenew tax credit appeals primarily to affluentvoters who do not need the governments helpbuying property. And encouraging buyers toleave one house for another does nothing toreduce the glut of homes on the market, whichis an important factor driving down housingprices. Finally, the tax credit does nothingabout the central housing problem, which isforeclosure.

If Congress wants to spend the taxpayersmoney to do something about the strugglinghousing market and it should it shouldinvest the money where it is most needed, inbetter programs that help people avoid fore-closure and stay in their homes.

A Bad Way to Spend Money

DaVID BROOKS

The Suburban MindDemocrats did poorly in elections on Tue

day partly because of disappointed liberalwho think that President Obama is moving to

slowly, but mostly because of anxious suburban independents who think he is moving tofast. In Pennsylvania, there was an eight-poinswing away from the Democrats among independents from a year ago. In New Jersey, anVirginia, the swings were 12 and 13 points.

The most telling races this year were thsuburban rebellions. In Westchester and Nassau counties in New York, Republican canddates defeated entrenched Democratic countofficials. In Pennsylvania, the G.O.P. won siout of seven statewide offices.

Middle-class suburban voters are now iplay. What do these voters want?

The first thing to say is that this recessiohas hit the new suburbs hardest. A survey b

the National Center for Suburban Studies aHofstra University found that 76 percent osuburbanites say they or someone they knowhas lost a job in the past year.

These voters are not turning to governmenfor support. According to Gallup, the percenage of Americans who believe that there is tomuch government regulation rose from 38 pecent in 2008 to 45 percent in 2009. The percenage of Americans who want unions to have lesinfluence rose from 32 percent to a record 4percent.

Over the past seven months, the number opeople who say government is doing too manthings better left to business has jumped from40 percent to 48 percent, according to a WaStreet Journal/NBC News poll.

According to that same survey, only 31 pecent of Americans believe that the presidenand Congress should worry more about boosing the economy even though it may mealarger budget deficits. Sixty-two percent believe the president and Congress should worry more about keeping the deficit down, evethough it may mean it will take longer for theconomy to recover.

These shifts have not occurred because conservatives and liberals have changed theiminds. They havent. The shift is among independents. According to Gallup, the share oindependents who describe their views as conservative has moved from 29 percent last yeato 35 percent today. The share of independentwho believe there is too much government regulation of business has jumped from 38 percento 50 percent. Independents are in the positioof a person who is feeling gravely ill at the samtime he has lost faith in his doctor.

This does not mean that independents arturning into Republicans. But it does mean thDemocrats have to fight to regain some of themost crucial supporters.

Independents support the party that seemmost likely to establish a frame of stability anorder, within which they can lead their liveThey cant always articulate what they wanbut they withdraw from any party that threaens turmoil and risk.

OPINION Friday, November 6, 2009 8

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It was never as easy as the Yan-kees made it seem the last timethey were champions. They wonfour World Series in five seasons,from 1996 through 2000. They did

not win again until Wednesday atYankee Stadium.

You forget how good it feelsafter the final out, said the cap-tain, Derek Jeter, early Thursdaymorning. But I appreciated thelast ones we won. I knew it wasvery, very difficult to do. If it waseasy, people would be repeatingevery year. No ones done it sincewe did.

The Boston Red Sox won twicethis decade, but not consecutive-ly. The Philadelphia Phillies wonlast season, but the Yankees van-quished them in six games this

time. The St. Louis Cardinals wontwo pennants, but only one title.

The Yankees won a lot from 2001to 2008, just not when it mattered

most. The Yankees led the majorsin regular-season victories overthose seasons, with 775, aboutfour more per season than theRed Sox. The capricious nature of

the three-tiered postseason con-tinually tripped up the Yankees,who bowed in the first round fourtimes.

Yet it was not simply bad luckthat knocked the Yankees fromtheir perch. They were old, andage will be the biggest challengein cultivating another dynasty.The teams first test comes imme-diately, a clash of sentiment andpracticality involving two of theirbest players in the World Series:Hideki Matsui, 35, who batted.615 in the World Series and wasnamed the most valuable player,

and Johnny Damon, who turned36 on Thursday and hit .364.

Both were on the bench for theend of the series, Damon out with a

strained right calf muscle, Matsuibecause he was used exclusivelyas the designated hitter. Bothplayers contracts have expired.

Ideally, the Yankees want the

flexibility to use the designatedhitter spot for players like Jeter,35; third baseman Alex Rodri-guez, 34; and catcher Jorge Pos-ada, 38. But Matsui and Damonare freshly minted World Serieslegends.

Cashman likely understands,deep down, that a great achieve-ment of the season was probablykeeping so many older playershealthy and productive. Four sig-nificant Yankees in their mid- tolate-30s were coming off surgery:Posada to his shoulder; Matsui tohis knee; Mariano Rivera to his

shoulder; Rodriguez to his hip. Allhad standout years.

But how long can they all defytime? TYLER KEPNER

After the Championship Comes the Challenge

Free-agent Fiings

Pitcher John Lackey andoutfielder Matt Holliday were

among 79 players who filed forfree agency Thursday, the firstpossible day to do so. Outfield-er Jason Bay, first basemanCarlos Delgado, pitcher JohnSmoltz and reliever Billy Wag-ner also filed, as did pitcher JonGarland after the Los AngelesDodgers declined his $10 milliooption. He will receive a $2.5million buyout. (AP

americs Cup Fight

SAN DIEGO The most contentious Americas Cup in the

158-year history of the compe-tition may be headed to Aus-tralia. Officials for Alinghi, theSwiss boat that is the defendingchampion, told Justice ShirleyKornreich of New York StateSupreme Court that they wouldrace the American challengerBMW Oracle Racing off Australia as a compromise. (AP

ARCADIA, Calif. The numberof thoroughbreds in Californiawho suffered fatal breakdownshas fallen by 40 percent sincethe state switched from dirt tosynthetic surfaces, according toa study compiled by state regu-lators. But skepticism persistsamong horsemen who contendthe all-weather surfaces haveonly created a new set of injuriesand are no safer than traditionaldirt tracks.

The California numbers sug-gest otherwise. Since 2006, whenHollywood Park installed the firstartificial oval, to September of thisyear, the fatality rate has fallen to1.70 per 1,000 starts, from 3.09 per

1,000 on dirt. At Santa Anita Park,where the Breeders Cup WorldChampionships will be held begin-ning Friday, fatalities fell to 1.59per 1,000 starts, from 2.89.

It is what it is, which is a prettydramatic fall-off, contrary to whatsome trainers think, said Dr. RickArthur, equine medical directorfor the California Horse RacingBoard. When racehorses are attheir best, I am absolutely con-vinced that they are safer on thesynthetics than they are dirt.

Arthur warned that syntheticsurfaces were not a cure-all forsaving horses lives, and cited sev-eral factors that have contributedto the fact that the United States

has the worst mortality rate forthoroughbreds in the world, intraining and in racing. In fact, oneaspect of the study supported agrowing sentiment in the veteri-nary community that the overuseof legal and illegal medicationshas imperiled the welfare of race-horses.

Mary Scollay, the equine medi-cal director for the KentuckyHorse Racing Commission, saidCalifornias methodology for col-lecting the data was rigorous andthe numbers were comprehen-sive. California has been perform-ing necropsies on horses who havedied on its racetracks since 1992.

JOE DRAPE

Critics Remain Despite Progress With Synthetics

WEaTHERHigh/low temperatures for the 21 hours ended at 4 p.m.yesterday, Eastern time, and precipitation (in inches) for the

18 hours ended at 1 p.m. yesterday. Expected conditions fortoday and tomorrow.

Wth cntns: C-clus, F-fg, H-hz, i-c, PC-ptl clu,r-n, S-sun, Sh-shws, Sn-snw, SS-snw shws, T-thunsts, T-tc, W-wn.

U.S. CITIES

Yesterday Tday Tmrrwatlnt 65/ 48 0 67/ 40 S 68/ 42 Saluququ 69/ 43 0 70/ 43 PC 71/ 44 Sbs 55/ 37 0 56/ 45 Sh 53/ 40 PCbstn 47/ 43 0.01 48/ 38 PC 50/ 33 Sbuffl 43/ 35 0.19 41/ 29 PC 52/ 32 SChltt 66/ 39 0 64/ 35 S 66/ 35 SChcg 54/ 36 0 58/ 38 PC 64/ 46 PCClln 50/ 39 0 51/ 32 S 61/ 38 PCdlls-Ft. Wth 76/ 53 0 80/ 55 S 81/ 58 Sdn 75/ 36 0 74/ 44 S 66/ 41 Sdtt 52/ 39 0 49/ 30 PC 56/ 41 C

Hustn 78/ 54 0 80/ 54 S 80/ 56 SKnss Ct 66/ 36 0 72/ 52 S 72/ 53 SLs angls 68/ 59 0 71/ 55 PC 71/ 55 PCm 84/ 73 0.43 82/ 72 PC 82/ 73 PCmpls.-St. Pul 53/ 28 0 58/ 39 PC 61/ 46 PCNw yk Ct 53/ 44 0 49/ 38 S 52/ 35 Soln 81/ 66 0 78/ 57 S 79/ 59 PCPhllph 56/ 42 0 50/ 37 S 56/ 34 SPhnx 91/ 63 0 85/ 62 S 85/ 60 PCSlt Lk Ct 74/ 41 0 61/ 46 PC 57/ 39 PCSn Fncsc 66/ 57 0 66/ 56 C 67/ 52 PCSttl 61/ 48 0 51/ 48 Sh 50/ 45 ShSt. Lus 60/ 36 0 68/ 43 S 74/ 50 SWshngtn 60/ 42 0 51/ 38 S 58/ 35 S

FOREIGN CITIES

Yesterday Tday Tmrrwacpulc 92/ 77 0 90/ 72 S 86/ 73 Sathns 69/ 52 0 75/ 60 PC 68/ 58 PCbjng 63/ 34 0 65/ 41 S 63/ 47 PCbln 52/ 41 0.27 52/ 41 PC 45/ 37 PCbuns as 78/ 50 0 73/ 57 PC 70/ 57 PCC 80/ 63 0 81/ 63 S 88/ 63 PC

Cp Twn 67/ 61 T 70/ 52 C 70/ 55 Cduln 51/ 43 0.11 55/ 41 Sh 50/ 41 PGn 50/ 41 0.15 45/ 36 PC 46/ 37 rHng Kng 80/ 70 0 82/ 73 S 82/ 75 SKngstn 88/ 77 0 86/ 77 C 84/ 79 TL 71/ 64 T 70/ 63 C 68/ 63 CLnn 55/ 46 0.03 57/ 46 Sh 52/ 41 Pm 59/ 50 0 54/ 45 Sh 57/ 48 Pmxc Ct 59/ 50 0 66/ 46 PC 72/ 43 Pmntl 40/ 32 T 40/ 27 C 45/ 27 Cmscw 31/ 21 T 32/ 28 C 36/ 32 SNssu 87/ 75 0 86/ 73 T 86/ 73 WPs 55/ 45 0.03 55/ 46 C 54/ 45 SPgu 52/ 39 0.28 48/ 37 PC 45/ 39 Sr Jn 99/ 75 T 91/ 72 S 95/ 73 Sr 64/ 59 0.16 72/ 50 r 63/ 48 PSntg 72/ 39 0 75/ 43 S 66/ 43 SStckhl 44/ 34 45/ 39 Sh 46/ 39 CSn 67/ 61 0.04 72/ 59 C 75/ 61 STk 63/ 50 0 68/ 54 PC 70/ 57 PTnt 46/ 37 0.09 41/ 28 PC 50/ 37 Cvncu 57/ 45 0 52/ 43 Sh 48/ 41 rWsw 43/ 34 0.02 45/ 34 PC 45/ 36 C

In Brief

NHl SCORES

THURSDAYmntl 2, bstn 1, SoCluus 4, atlnt 3dtt 2, Sn Js 1, So

ottw 3, Tp b 2, oTvncu 5, mnnst 2Clg 2, St. Lus 1, oTPhnx 3, Chcg 1

NBa SCORES

WEDNESDAYS LATE GAMESL.a. Lks 103, Hustn 102, oTNw olns 114, dlls 107, oTatlnt 113, Scnt 105Gln Stt 113, mphs 105THURSDAYChcg 86, Clln 85

SPORTS Friday, November 6, 2009 9

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8/14/2019 f r o m t h e Pa g e

10/10

Jimmy Rollins stood in themiddle of the losing clubhouseearly Thursday morning, speak-ing with reporters and puttingthe best face possible on the

Philadelphia Philliesfour-games-to-twoWorld Series loss to theYankees.

They were the bet-ter team this series, hesaid. Do I think werethe better team? I really do. Theyshowed a lot of heart. A lot of grit.We drilled a couple of guys, noone backed down and they ex-ecuted.

Rollins, the Phillies shortstop,set the tone before the Serieswhen he predicted that the Phil-lies would beat the Yankees in

five or six games.After the Yankees won Game

6, Derek Jeter told some report-ers that Rollinss prediction hadserved as motivation.

Did Rollins believe that? Helaughed. Heck no, he said.Maybe somebody else, notDerek Jeter. He doesnt need meto motivate him.

A year ago, Rollins and histeammates were doing the cel-ebrating after defeating the Tam-pa Bay Rays in the World Series.Early Thursday, the Phillies, withtheir starting and relief pitchingdiscombobulated, watched the

Yankees celebrate.Rollins was philosophical. I

dont really look at it as some-thing that hurts, he said, refer-ring to the loss.

We would like to havegotten the win. You thinkabout the fans that aregoing home empty-hand-ed at the end of the sea-son. But winning and los-ing is part of the game.

From the time you start playing,you understand that at the end ofthe season only one can win, andits not always going to be you.They won. Congratulations.

Rollins was asked about a pos-sible Phillies dynasty. They wonthe National League East in 2007,they won the World Series in

2008, they came close this year.The team isnt too old and has a$111 million-plus payroll eighthhighest in baseball.

But with a projected lineupnext year in which every startingposition player but one will be atleast 30, the window is closing.Will the Phillies be able to spendthe money necessary to fortifythe team?

You usually got to win two in arow, but San Antonio does a pret-ty good job of winning every oth-er year, Rollins said, referring tothe N.B.A.s Spurs. We still havea good group of guys who are go-

ing to be here, so we dont worryabout anyone leaving.

Were a good team, we justcame up short this year, but go-ing down the future, I dont see

anything changing. I think weregeared up for that; nothingsgoing to change in terms of whowere going to put out there onthe field.

Brave talk, but is it realistic?In a sport where the teams that

have the gold tend to win, theYankees are one of the few teamsthat can harbor realistic dynasticaspirations.

If Matsui or Johnny Damon donot return, the Yankees may goafter St. Louis outfielder MattHolliday. Need one more startingpitcher? Why not go after the Los

Angeles Angels John Lackey?Posada has two years left on hiscontract. Who is to say that asPosada winds down, the Yankeeswont go after Minnesota Twinscatcher Joe Mauer? The fran-chise has its shopping cart out.

Beware. With checkbook inhand, the Yankees may be com-ing to a neighborhood near you.

Its About the Money, and the Yanks Have a Lot

SportS

oF

tHe timeS

William C.Rhoden

If LeBron James were to scrawlhis career goals on, say, a NewYork deli napkin, the list mightlook something like this:

Win Most Valuable Playeraward

Win Olympic gold medalWin N.B.A. championshipBecome global iconThese are not modest aspira-

tions, but then James, the Cleve-land Cavaliers star who answersto the nickname King, is no mod-est figure. He secured a gold med-al in 2008 and the M.V.P. awardlast spring.

An N.B.A. title has eluded him,but he is doing O.K. on the global-icon front, with strong jersey salesin Europe and China.

So what do you get for the su-perstar who has everything? Theanswers might determine whereJames lands next summer, if hebecomes a free agent.

He will get a chance to weigh hisoptions on Friday night, when the

Cavaliers visit New York to playthe Knicks.

In Cleveland, James has beenblessed with solid teammates,deep playoff runs and a finalsappearance. The Knicks will tryto mesmerize him with Broad-way lights and Madison Avenueriches.

The conventional wisdom isthat if James leaves Cleveland, itwill be to chase fame and fortunein New York, the greatest marketof all. But it might be a misguidedpursuit, based on a faulty prem-ise.

Steve Rosner, partner andco-founder of 16W Marketing inRutherford, N.J., said, I alwaysthought that was a misnomer,when athletes would play in NewYork that they would make moreendorsement money.

David Falk, the onetime super-agent who represented MichaelJordan, Patrick Ewing and AlonzoMourning, said, I dont think that

where you are physically situatedis nearly as important as it was 20years ago.

The world has changed sinceFalk brokered the deals thatturned Jordan into the greatestsports marketing vehicle ever inthe 1980s and 90s.

The Internet gives fans a24-hour connection to their sportsheroes, no matter where theyplay. Games are beamed to televi-sions in every hemisphere, and tocomputers and mobile phones viasatellite. Players converse withfans through blogs and Twitterand Facebook.

The sports world is flat.And market size, which was

once a key consideration in en-dorsement deals, is virtually ir-relevant, according to agents,consultants and image experts.Moving to New York might giveJames a small boost, but most sayit would be negligible.

HOWARD BECK

Does LeBron James Need to Be King of New York?Suspension Sought

The National Organization foWomen called on the OaklandRaiders to suspend Coach TomCable while the team investi-gates accusations that he has ahistory of violent behavior to-ward women.

The NOW president, TerryONeill, praised the Raiders ina statement for undertaking aserious evaluation of charg-es made by Cables first wife,Sandy Cable, and former girl-friend, Marie Lutz, that Cablephysically abused them. But shsaid that Cable should be sus-pended while that investigationproceeds.

Cable has acknowledgedstriking Sandy Cable with anopen hand more than 20 yearsago and said it was the onlytime he had touched a wom-an inappropriately. Lutz ac-cused Cable of assaulting heras recently as last January, butCable said previously he wascleared by the police in thatcase. (AP

N.B.a. STaNDINGS

EaSTERN CONFERENCE

ATLANTIC W L Pct GBbstn 6 0 1.000

Phllph 2 2 .500 3

Tnt 2 2 .500 3

Kncks 1 4 .200 4{

Nts 0 5 .000 5{

SoUTHEAST W L Pct GBatlnt 4 1 .800

m 4 1 .800

oln 4 1 .800

Chltt 2 2 .500 1{

Wshngtn 2 3 .400 2

CENTRAL W L Pct GBChcg 3 2 .600

Clln 3 3 .500 {

dtt 2 3 .400 1

mlwuk 1 2 .333 1

inn 1 3 .250 1{

WESTERN CONFERENCE

SoUTHWEST W L Pct GB

Sn antn 2 1 .667 dlls 3 2 .600

Hustn 3 2 .600

Nw olns 2 3 .400 1

mphs 1 4 .200 2

NoRTHWEST W L Pct GBdn 5 0 1.000

oklh Ct 2 2 .500 2{

Ptln 2 3 .400 3

Uth 1 3 .250 3{

mnnst 1 4 .200 4

PACIfIC W L Pct GBL.a. Lks 4 1 .800

Phnx 4 1 .800

Gln Stt 1 2 .333 2

L.a. Clpps 1 4 .200 3

Scnt 1 4 .200 3

ONlINE:RIVERaS FUTURE

The star reliever wants to

pitch five more years.

nytimes.com/sports

SPORTS Friday, November 6, 2009 10

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