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WEEKEND

THESCARCITYFALLACY

REVIEW

TheRiseOf the#Shelfie

OFF DUTY

n The chiefs of the four bigU.S. wireless carriers got to-tal 2013 compensation valuedat more than $117 million. B1n Fannie and Freddieargued ahead of a key Senatevote that parts of a bill to re-place them won’t work. A4n The slated merger of Om-nicom and Publicis Groupe isbeing threatened by battlesover position and power. A1n U.S. stocks fell on mixedearnings news and Internetstock selloffs. The Dow fell104.19 points to 16361.46. B1n Gold prices vaulted above$1,300 an ounce as tensionsin Ukraine escalated. B5n The yuan has weakened3.4% against the dollar sincethe end of January to an al-most 16-month low. B5n Citigroup will beginmultibillion-dollar settle-ment talks with the JusticeDepartment related to mort-gage-backed securities. B2n Ford Motor’s profit fell39% on warranty costs andprovisions for currency deval-uations in South America. B3n General Electric’s effortsto buy Alstom’s energy op-erations ran into politicalheadwinds in France. B3

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InsideNOONAN A13

‘Santo Subito!’John Paul II’s

Courage

D ivisions between U.S.and European leaders

over how to expand sanc-tions have delayed newmeasures against Moscow,a lag Ukrainians complainhas emboldened Putin. A1 Russia’s central banklifted rates after S&P cut thecountry’s debt to junk. A7n Long waits at the PhoenixVA forced some patients toseek emergency-room care,a whistleblower said. A2n Syria has removed morethan 90% of its lethal chem-icals from the country. A6n An Oregon state boardadopted a recommendationto use the federal govern-ment’s technology to runits health exchange. A4nMany Iranians who votedfor President Rouhani sayhe has neglected the econ-omy and human rights. A6n California Democrats areconsidering using cap-and-trade proceeds to fund a pro-posed high-speed rail line. A4n The number of marriedcouples in which a mother isemployed but the father isn’tslipped to just over 1.45 mil-lion, the government said. A2n U.S. farmers are using awider array of herbicidesto fight Roundup-resistantweeds, adding costs andenvironmental concerns. B1n North Korea said it washolding an American touristwho was first detained morethan two weeks ago. A9n Died: Earl Morrall, 79,former NFL quarterback.

U.S. and European leaders Fri-day struggled to overcome divi-sions over how to expand sanc-tions against Russia, a delay thatUkraine complained has embold-ened Moscow to continue fan-ning separatist sentiment in the

country’s east.President Barack Obama spoke

Friday with leaders of the U.K.,France, Germany and Italy tostress the need for concertedmea-sures, and they agreed on the needfor action.

At the end of the day, theGroup of Seven, which also in-cludes Japan and Canada, issueda statement saying they wouldmove swiftly to impose addi-tional targeted sanctions. Theydidn’t say when or specify thetargets.

But U.S. and European officialssaid earlier they have identifiedareas of greater common groundand suggested the new sanctionsare set to come on Monday.

“Given the urgency of secur-ing the opportunity for a suc-cessful and peaceful democraticvote next month in Ukraine’s

PleaseturntopageA7

By ColleenMcCainNelson,Stacy Meichtryand Jay Solomon

AlliesDisagreeOn NewPenaltiesAs Ukraine Stews,Fresh SanctionsDelayed for Russia

Battles over position andpower are threatening to upendthe slated $35 billion “mergerof equals” between advertisingfirms Omnicom Group Inc. andPublicis Groupe SA.

The two sides have said thatlegal and tax issues in Europeare delaying the completion ofthe deal, first announced lastsummer. But beyond those diffi-

culties, relations have severelyfrayed, say people with knowl-edge of the situation.

The two sides haven't yetagreed on which company willbe the legal acquirer of theother, say some of these people.That is holding up filing of cru-cial paperwork with the U.S. Se-curities and Exchange Commis-sion, say some of the people.

The companies are also atloggerheads over who will fillsenior jobs, particularly the po-

sition of finance chief. Omnicomwants its chief financial officer,Randall Weisenburger, in theslot whereas Publicis wants itsCFO, Jean-Michel Etienne, toget the job, the people say.

The delays have caused thecompanies to halt meetings ofmany of the roughly 70 integra-tion committees, where the twogroups started to mutually pres-ent their networks, teams andorganization, some of the peoplesaid. These meetings could only

go so far until the merger wascompleted, as the two groupsaren’t allowed to share any in-formation on clients or numbersuntil the deal has secured all itsregulatory approvals.

The companies continue tosay they expect the deal to becompleted. While some execu-tives believe there is too muchat stake for the deal to be calledoff, others aren’t so sure.

In recent days the companiesPleaseturntothenextpage

BY SUZANNE VRANICAAND RUTH BENDER

Clashes Over Power Threaten$35 Billion Ad AgencyMerger

Before giving birth two years ago, Whitney Fer-rarese went back and forth trying to decidewhether to save the blood from her baby’s umbili-cal cord, a peculiar but increasingly commonAmerican birth ritual.

Like every new parent, Ms. Ferrarese worriedabout the health of her firstborn. It was a longshot, but maybe stem cells from the cord bloodheld a miracle cure for a disease that might strikeher baby in the years ahead.

Ms. Ferrarese trawled online message boards,where some mothers say it is a lifesaver and oth-ers call it snake oil. She and her husband talked itover with their doctor, friends and family beforeagreeing to pay $1,900 for a company to processand store the cryogenically frozen cord blood oftheir daughter, Iris.

“In the back of my head, I thought, ‘If we don’tdo it, something’s going to happen and we’ll need

it,’ ” said Ms. Ferrarese, of Houston. Since then,she said, many of her friends have done the same,and the 32-year-old mother plans to store the cordblood of a second daughter, expected in June.

The question of whether to pay for storage ofa baby’s cord blood is now routinely asked of ex-pectant parents in obstetrician offices and hospi-tal delivery rooms. Many states have passed lawsrequiring that doctors tell expectant parents theiroptions for cord blood: discard it; bank it pri-vately; or donate it to a public bank, which like ablood or organ bank helps people in need. Theharvesting and storage of stem cells from theblood of umbilical cords has surged in the past de-cade to a $4 billion global industry.

But a Wall Street Journal analysis of govern-ment inspections and a review of lawsuits in theU.S. found problems in the loosely regulated cord-blood-banking business, including dirty storageconditions, leaky blood samples and firms going

PleaseturntopageA10

BY DIONNE SEARCEY AND CHRISTOPHER S. STEWART

PARENTS’ DILEMMA

Questions Plague Cord-Blood Banks

You can stretch cotton only sofar. Pushed by persistently steepprices for the fabric, apparelmakers are weaving synthetic fi-bers into clothing that was once100% natural.

The trend is showing up at arange of retailers, from high-endto mass-market. Jeans from LosAngeles-based seller AG, whichspecializes in premium denim,are made from cotton, lyocelland polyurethane and cost $168.American Apparel Inc. offers a$22 T-shirt that is a blend ofpolyester, cotton and rayon. Adress from Hennes & Mauritz ABmade from rayon and spandexcosts $12.95.

This year, U.S. imports ofclothing made chiefly from syn-thetic materials are poised tooutpace cotton apparel for thefirst time in more than two de-cades. As recently as 2008, 60%of apparel imports—the vast ma-jority of the U.S. clothing markettoday—were made of cotton.

While economics is a factor inclothing makers’ move awayfrom cotton, consumers were al-ready heading in the same direc-tion. Under Armour Inc. becamea $2.9 billion a year businessselling athletic gear made withsynthetics including polyester,the oil-based fabric once associ-ated with leisure suits and golfpants. Lululemon Athletica Inc.’syoga pants aren’t just worn inthe gym anymore.

“I usually tend to go towardsfabric that holds up well, soprobably more of a blend” ofcotton and synthetic fibers, saidMelissa Lance, 38 years old, anurse who lives in VirginiaBeach, Va. “I don’t really carewhat it’s made out of as long asit’s comfortable and soft.”

Under Armour began as asupplier of moisture-wicking T-shirts to sports teams. Now, it

Pleaseturntothenextpage

BY ALEXANDRA WEXLER

Man-MadeFibers SetTo ToppleKingCotton

New TreatmentU.S. cord-blood transplantsfrom public banks

The Wall Street JournalSource: Dept. of Health and Human Services

1,500

0

500

1,000

2001 ’05 ’10 ’13

2013: 1,102

Catholics Prepare to Celebrate Two New Saints

HOLY MEN: Student priests at Vatican City hold a picture of former popes John Paul II and John XXIII, who will be canonized on Sunday. A8, C3

DPA

/AssociatedPress

For These Rockin’ Vans,The ’70s Are Still A-Knockin’

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Customized ‘Vanner’ Culture Rolls OnWith Clubs, Truck-Ins; ‘Golden Voyager’

The 1970s may be long gone,but for a group of freewheelingfans, the spirit lives on in boxyglory. Sometimes with flamingosemblazoned on the side.

Custom vans—the Grand Funk-blasting, mobile rumpus rooms ofyes teryear—have held on tosome dedicatedenthusiasts.

Even withgrandchildrenin tow or full-time jobs beck-oning on Mon-day, the“vanners” are trying their might-iest to keep on trucking.

Age has dampened a fewthings.

“Pretty much, we don’t wantto see these people naked any-more,” said Joe Madonia, a 55-year-old who runs the Museum ofVanning & Hall of Fame at his

Hudson, Fla., home. He is work-ing on moving the museum to afree-standing building.

He has at least 50,000 piecesof vanning memorabilia, plus twovintage vans, both 1970s Fords.One has several murals, includinga sword-wielding knight, whilethe other has a “gangster fla-

mingo” withspats, a hat andflying bullets.“My wife is veryinto flamingos,”he said.

Van culturetook off in theearly ’70s, whenthe “shaggin’

wagon” served as a versatile,cheap ride for young people seek-ing groovy times on the road.These weren’t flower-poweredmagic buses but mostly big, De-troit-made vehicles personalizedfor comfort and partying.

Hot Rod Magazine helpedPleaseturntopageA5

BY JON KAMP

S&P cuts Russia’s debt ratingsto one notch above junk.......... A7

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