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What’sNews

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World-Widen Islamic State captured amajor air base in northeast-ern Syria, gaining full con-trol of an entire province forthe first time in the war. A1n Obama is facing pressureto step up strikes against Is-lamic State, but some fellowDemocrats and European al-lies are voicing caution. A1nAU.S. freelance writer, heldby al Qaeda-linked militantsin Syria for nearly two years,was freed after Qatar helpednegotiate his release. A6n Britain said it is close toidentifying the suspect inthe beheading of U.S. jour-nalist James Foley. A6n The biggest earthquake tohit the San Francisco Bay Areain 25 years jolted California’swine region, buckling roadsand damaging buildings. A3n Israel’s Netanyahu said thebattle with Hamas is likely tocontinue into September andsignaled plans for more airattacks in civilian areas. A7n Ukraine celebrated Inde-pendence Day with a militaryparade as separatists marchedUkrainian POWs through theirstronghold of Donetsk. A10nU.S. Navy planes and Chi-nese fighter jets have had aseries of dangerously close en-counters over the South ChinaSea, the Pentagon says. A8nHigh schools and middleschools shouldn’t start before8:30 a.m. so teens get enoughsleep, pediatricians said. A3nDied: John Akers, 79, ledIBM through a transition. B6…Richard Attenborough, 90,British director and actor. B6

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Burger King is in talks tobuy Tim Hortons in a so-

called tax-inversion deal thatwould move the hamburgerchain’s base to Canada. A1n Roche said it would pay$8.3 billion for InterMune, asmall California biotech com-pany with a new drug to treata deadly lung disease. B1n Activist investor EngineCapital is pushing the parentof Ann Taylor for a sale ofthe women’s retailer. B1n The oil industry plans alobbying push to loosen theU.S. ban on crude exports butfaces voter concern about theimpact on gasoline prices. A4n Valeant and Ackman filedsuit in an effort to have a judgehelp speed up their $53 bil-lion hostile takeover bid forBotox maker Allergan. B3nMoney managers expectstocks to continue doingwell for the next few monthsbut are on guard for a Fedmove to speed a rate hike. C1n Goldman Sachs is ex-pected to name fewer newpartners this fall, elevating nomore than 70 employees. C1nMcDonald’s is losing itsappeal among customers intheir 20s and 30s as thefast-food chain faces itsworst slump in a decade. B1n States and localitieswarnthat planned regulations couldcause banks to retreat fromthe municipal bond market. C3n “Guardians of the Galaxy”became the summer’s top-grossing movie at the NorthAmerican box office. B5

Business&Finance

MATHOLE, South Africa—In broad daylight, heis a thin, soft-spoken 23-year-old who stays immac-ulately clean in Converse All-Stars and khaki pants.But to make ends meet, Mduduzi Matjila has takenon another life, one that takes him deep into thedarkness of the earth and leaves his skin coatedwith a yellow tint.

It is dangerous and illegal work, wanderingthrough the labyrinth of tunnels of mines closedyears before, in search of gold. Donning overallsand a head lamp, he will risk cave-ins, ambushes bygangs and arrest by police. Most times, he prays be-fore he goes. “You wonder if you will come outalive,” he says, eyes bloodshot from working over-night in an unlit shaft.

After years of watching its dominance over thegold industry shrink dramatically, South Africa hasemerged as the world capital of illegal gold digging.In staggering numbers—easily into the tens of thou-

sands—desperate former miners and gang membershave created a subterranean subculture of aban-doned mine-shaft wanderers. Armed with a fewcrude tools, they dig into blasted or cement-sealedmines, comb through tunnels, and spend days chis-eling away at bedrock.

Once the world’s biggest gold producer, SouthAfrica accounted for 80% of the global supplies asrecently as 1970. Today, that figure is less than 1%,in large part because China and other countrieshave sharply picked up their own production, forc-ing mine closures here that created an opening forfreelancers. Today, some 4,400 abandoned minesdot the countryside, almost four times the numberin operation, according to South Africa’s Council forGeoscience. And while there are still about 150,000formally employed gold miners in South Africa,“we’re very close to the point where there will bemore illegal miners than legal miners,” says An-thony Turton, a South African mining consultant.

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BY DEVON MAYLIE

DANGER UNDERGROUND

Business Thrives in Abandoned Mines

ADA, Okla.—This city’s policechief last year made what wouldbecome a very popular decision,assigning a rookie to traffic dutyeven though the new officer wasknown to be heartless.

Since the green-horn’s patrol car be-gan appearing inneighborhoods wherepeople had com-plained about speed-ing drivers, he has be-come so beloved thattownspeople are buy-ing him doughnuts,praising him on Face-book and working hisname into sermons.

The officer proved bettersuited to the task of deterringspeeders than experienced cops,says Police Chief Mike Miller, be-cause of a compelling attribute:He’s a dummy.

“He didn’t cost us anything,”Mr. Miller says of the rookie, aCPR manikin that the depart-ment dresses in police blues andprops behind the wheel of aspare cruiser.

Cash-strapped police depart-ments have long usedfaux cops to standsentry on city streets.But few decoys haveachieved the celebritystature of “PlasticPopo,” as Ada’s officeris known in this cityof 17,000 people about80 miles from Okla-homa City.

The first time somein Ada saw the stiffcop with his eyes al-

ways closed and his mouthagape, they worried he was areal officer in distress. “Every-one knows everyone in thistown” says Deena West, a pro-

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BY NATHAN KOPPEL

This Town’s Favorite PolicemanIs the Cold, Silent Type

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‘Officer Popo’ Deters Speeders,Wins Hearts,Although He’s a Real Dummy

Officer Popo

JASON GAY IN SPORTSJASON GAY IN SPORTS

A Champion’s RevivalA Champion’s RevivalJOURNAL REPORTJOURNAL REPORT How Zeal Can Sink a StartupHow Zeal Can Sink a Startup

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Images

Burger King Worldwide Inc. isin talks to buy Canadian coffee-and-doughnut chain Tim Hor-tons Inc., a deal that would bestructured as a so-called tax in-version and move the hamburgerseller’s base to Canada.

The two sides are working ona deal that would create a newcompany, they said in a state-ment, confirming a report on thetalks by The Wall Street Journal.The takeover would create thethird-largest quick-service res-taurant provider in the world,they said.

Inversion deals have been onthe rise lately, and are facingstiff opposition in Washingtongiven that they threaten to de-plete U.S. government coffers. Amove by Burger King to seal oneis sure to intensify criticism ofthem, since it is such a well-known and distinctly Americanbrand.

A person familiar with the mat-ter said a deal between the twocompanies could be struck soon,though additional details on timingcouldn’t be learned. Tim Hortonshas a market value of about $8.4billion, while Burger King’s is about$9.6 billion, so together the restau-rant companies are currently worthabout $18 billion.

By moving to a lower-tax ju-risdiction, inversion deals enablecompanies to save money on for-eign earnings and cash stowedabroad, and in some cases lowertheir overall corporate rate.Even though many of the head-line-grabbing inversion deals oflate have involved Europeancompanies, Canada has also beenthe focal point for a number ofthem, given its proximity andsimilarity to the U.S. Canada’sfederal corporate tax rate waslowered to 15% in 2012.

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BY LIZ HOFFMANAND DANA MATTIOLI

BurgerKingIn TalksOn CanadaTax Deal

Pressure MountsOn Obama to Act

WASHINGTON—PresidentBarack Obama faces pressureat home and in the Middle Eastto quickly step up strikes at Is-lamic State militants, but also

reluctance fromsome within hisown party and Eu-

ropean allies to do so.The leading options under

consideration for strikes inSyria—if Mr. Obama decides toexpand the fight—are narrow inscope, designed to prevent theIslamic State from carrying out

any plots that threaten Ameri-cans and from resupplyingforces in neighboring Iraq. Offi-cials played down prospects fora broad-based campaign to up-root and destroy Islamic State’svast fighting force in Syria.

Republicans seized on freshIslamic State battlefield gains inSyria and the beheading of a U.S.journalist last week to step upcalls for a more aggressivestance. As the U.S. military saidSunday it carried out two moreair strikes in Iraq, Republicansurged more decisive military ac-tion to include airstrikes in

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BY COLLEEN MCCAIN NELSONAND ADAM ENTOUS

BEIRUT—The extremist groupIslamic State captured a majorair base in Syria in the north-eastern province of Raqqa, driv-ing out regime forces and gain-ing full control of an entireprovince for the first time in thecountry’s civil war.

The takeover of the Tabqa airbase on Sunday follows setbacksin neighboring Iraq, where U.S.airstrikes since Aug. 8 succeededin beating the group back in sev-eral areas in the north.

The base had been the last foot-hold for forces of Syrian PresidentBashar al-Assad in Raqqa. Islamic

State fighters over the past monthdrove regime forces from the head-quarters of the Syrian Army’s 17thDivision and another base for the93rd Brigade of the same division.

The loss of the air base trig-gered a wave of anger amongmany Assad supporters, particu-larly members of his own minor-ity Alawite sect, who blamedmilitary and security leaders forabandoning the fight and leavingmany soldiers to a brutal fate atthe hands of the Sunni militants.

Islamic State fighters wereseen parading in the town ofTabqa with the severed heads ofsoldiers killed at the air base, ac-

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BY SAM DAGHER

MilitantsSeizeSyria Air BaseIslamic State Beats Back Regime ForcesToExpandStronghold;Pressure onAssad

ANALYSIS

One Journalist Remembered as Another Is Freed

HOMETOWN SERVICE: Parishioners waited to greet the family of James Foley, who was killed by Islamic Statemilitants in the Mideast, after a mass in Rochester, N.H., on Sunday. Peter Theo Curtis, a 45-year-old writer heldcaptive in Syria for nearly two years, was released by the Nusra Front after Qatar helped negotiate his freedom. A6

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Images

Dwindling ResourceSouth Africa's gold output

The Wall Street Journal

Source: GFMS, Thomson Reuters

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