1
YELLOW ****** THURSDAY, OCTOBER 23, 2014 ~ VOL. CCLXIV NO. 97 WSJ.com HHHH $2.00 DJIA 16461.32 g 153.49 0.9% NASDAQ 4382.85 g 0.8% NIKKEI 15195.77 À 2.6% STOXX 600 326.11 À 0.7% 10-YR. TREAS. g 8/32 , yield 2.234% OIL (new) $80.52 g $1.97 GOLD $1,244.80 g $6.20 EURO $1.2647 YEN 107.15 Getty Images TODAY IN PERSONAL JOURNAL Best Day to Buy a Ticket PLUS Get Your Friends to Pay for Your Getaway CONTENTS Corporate News B2,3,6 Earnings......................... B4 Global Finance............ C3 Heard on the Street C12 In the Markets....... C6,7 Leisure & Arts............ D4 Opinion.................. A17-19 Small Business.......... B5 Sports.............................. D5 Style & Travel......... D2,3 U.S. News................. A2-8 Weather Watch ........ B7 World News....... A10-15 s Copyright 2014 Dow Jones & Company. All Rights Reserved > What’s News i i i World-Wide n A gunman fatally shot a soldier in Ottawa before be- ing killed inside Parliament, in an incident that shut down the Canadian capital. A1, A10 n Iraq’s Kurdish authorities approved the deployment of 150 soldiers to relieve fellow Kurds fighting Islamic State in the Syrian city of Kobani. A10 n Four ex-Blackwater guards were found guilty in the 2007 shooting deaths of 14 Iraqi civilians in Baghdad. A3 n U.S. authorities will begin monitoring travelers arriving from Ebola-stricken countries for symptoms next week. A6 n Social Security announced a 1.7% annual cost-of-living adjustment for 2015, matching a rise in consumer prices. A2 n The FBI is revamping its whistleblower rules to make it easier for employees to re- port agency misconduct. A3 n Ex-security chief Zhou likely faces expulsion from China’s Communist Party amid an anticorruption push. A12 n A Palestinian drove into pe- destrians in Jerusalem, killing an infant, in what Israeli offi- cials called a terrorist act. A13 n U.K. government advisers meet Thursday with tech firms for talks on combating extremist content online. A13 n Thousands of protesters left Pakistan’s capital after a Muslim cleric ended an anti- government sit-in. A12 n Academic fraud at a Univer- sity of North Carolina depart- ment frequented by athletes was blamed on lax oversight. A4 i i i A n air-bag recall is turn- ing into a new safety crisis for the auto industry. Takata is being investigated to see whether the supplier misled U.S. regulators about safety. A1 n J.P. Morgan was warned of potential problems in its hiring practices in China over a year before the program came under U.S. scrutiny. C1 n P&G shook up its senior management ranks, naming new leaders for key businesses and narrowing the field of po- tential CEO successors. B1 n Luxottica named a P&G veteran as co-CEO amid tur- moil over the return of the Ital- ian eyewear firm’s founder. B1 n Blue-chip companies, in- cluding AT&T, IBM, Coke and GE, have been posting poor growth quarter after quarter. A1 n AT&T cut its revenue out- look, citing fewer-than-ex- pected sign-ups for its no- contract wireless plan. B4 n The Dow finished down 153.49 at 16461.32, snapping a three-day rally. The S&P 500 and Nasdaq also declined. C6 n Amazon, Best Buy, Gap and other retailers are boosting the amount online shoppers must spend to get free shipping. B1 n Discriminatory pricing by e-commerce sites is more widespread than had been thought, a study found. B1 n The SEC rejected a Black- Rock proposal for a new ETF that would have kept its hold- ings hidden from investors. C1 n Total’s board named the French energy firm’s refining and chemicals head as CEO. B3 Business & Finance A suddenly expanded recall of air bags is turning into a new safety crisis for the auto indus- try and intensifying scrutiny of U.S. regulators’ ability to oversee auto makers and their suppliers. The Manhattan U.S. attorney’s office is investigating whether air bag supplier Takata Corp. made misleading statements about the safety of its air bags to U.S. regulators, people famil- iar with the matter said. The probe is at a preliminary stage and could end without any charges filed. Regulators this week nearly doubled their estimate of the number of U.S. vehicles affected, to 7.8 million, and said the figure could be revised again. The mostly older cars are equipped with air bags that could explode with too much force during a collision, spraying drivers and passengers with shrapnel, regu- lators have said. The National Highway Traffic Safety Administration on Wednesday issued a bulletin warning of defects in Takata air bags. Some auto makers are re- placing air bags. At least two, Ford Motor Co. and Fiat Chrysler Automobiles NV, said their vehi- cles on the agency’s list aren’t subject to a formal recall. A web- site the federal agency set up in August to help consumers deter- mine if their cars were at risk has suffered crashes. The expansion of repairs first Please turn to the next page By Jeff Bennett, Christopher M. Matthews and Christina Rogers Air Bag Safety Measures Probed A man fatally shot a soldier at Canada’s National War Memorial before being killed inside the country’s Parliament building, in a terror attack that shut down the capital city and stands to change the way Canada protects itself. Armed officers combed Can- ada’s Parliament building and surrounding areas for potential other shooters for much of the day, forcing Ottawa’s core into a lockdown mode into the evening, when police said there was no further threat to public safety there. Prime Minister Stephen Harper, speaking from an undis- closed location, said in a tele- vised address “in the days to come we will learn more about the terrorist and any accomplices he may have had.” The attack on what he termed “a sacred place” served as a “grim reminder that Canada is not immune to the attacks that happened around the world.” The killer was identified by U.S. authorities as Michael Ze- haf-Bibeau, who they said was born Michael Joseph Hall but changed his name as part of a conversion to Islam. Officials didn’t offer a motive. Earlier in the day, lawmakers huddled in Parliament offices for hours, with some still under lockdown at nightfall. Students were required to stay in their school buildings in the usually quiet city, and Royal Canadian Mounted Police officers warned residents to stay off roofs and away from windows. The shooting occurred as Can- ada was already on heightened alert after two soldiers were run over on Monday in Quebec by a Canadian man whom authorities were investigating for terror links. It also happened just a day af- ter Ottawa dispatched warplanes to the U.S.-led campaign against Islamic State militants, a move that the country’s main intelli- gence agency had earlier warned would increase the threat of ter- ror attacks in Canada. The shooting in Canada ampli- fied unease around Western capi- tals over their citizens’ vulnera- bility at home during a time of heightened alerts over potential terror attacks. President Barack Obama said Wednesday the attack under- scored the importance to the U.S. “to recognize that when it comes Please turn to page A10 By Paul Vieira in Ottawa and Alistair MacDonald and Ben Dummett in Toronto Terror Hits Canadian Capital Gunman Kills Soldier Before Being Shot Dead Inside Parliament Building Wayne Cuddington/Barcroft Media/Landov Blue Chips Have New Reasons To Be Blue In a letter to a friend, the manager of a Florida urology practice worried in 2010 that her company would attract federal scrutiny for its frequent use of an expensive bladder-cancer test. The manager’s concern involved a program at 21st Century Oncology Holdings Inc.—a national chain of cancer practices—that gives its urologists a financial incentive to order the test from a central BY JOHN CARREYROU AND JANET ADAMY MEDICARE UNMASKED Doctor ‘Self-Referral’ Thrives on Legal Loophole The approach was time-tested and hard to beat: Put your money in blue chips, decades-old compa- nies that could be counted on to perform through thick and thin. Now, the market’s stalwarts are showing their age. Steady has be- come stagnant as companies once considered among the market’s most reliable post poor growth, quarter after woeful quarter. The list of stumbling stars is remarkable: AT&T Inc., which on Wednesday lowered its revenue forecast; Coca-Cola Co., which posted flat sales; International Business Machines Corp., which threw out its profit forecast; and General Electric Co., which hasn’t seen its stock climb above $30 a share since the financial Please turn to page A8 By Theo Francis, Mike Esterl and Joann S. Lublin NEW YORK—William D. Mc- Cracken eyed his target on the far side of a security checkpoint outside New York Police Depart- ment headquarters. Metal detec- tors ringed the fortress-like building, and the police of- ficer on guard was wary. Mr. Mc- Cracken’s in- tentions weren’t nefari- ous. All he wanted was to snap a photograph of the cor- nerstone, dated 1973, at One Po- lice Plaza in lower Manhattan. The cop barred him from the re- stricted area, then borrowed Mr. McCracken’s camera and took the photo himself. For the past six years, the 39- year-old real-estate lawyer has been combing both sides of ev- ery street in Manhattan in a quest to document the dated, in- scribed rocks that serve as birth certificates for buildings. By foot and on bike, often accompa- nied by his Labradoodle named Martin, Mr. McCracken has amassed an online archive of the island’s 1,100-plus sur- viving corner- stones. “I’m 90% sure I have 90% of them,” he says. “And I’m 100% sure I don’t have 100% of them.” His wife, Amy, usually sleeps in when he rises at 6 a.m. to find new cornerstones. “He’s mission-driven,” she says. “It can be a grind.” Mr. McCracken’s search has gotten tougher as the venerable Please turn to page A16 BY DOUGLAS FEIDEN No Building Is Left Unturned In One Man’s Search for Cornerstones i i i Six-Year Tally by Foot and Bike Tops 1,100; New Ones Are as Rare as a Flying Buttress 2166 Broadway in-house lab. A federal law since the 1990s has pro- hibited “self-referral,” in which doctors can profit from Medicare-reimbursed procedures they order. But 21st Century Oncology and many physician groups around the country have found ways to do it anyway, exploiting an exception to the law in ways its writers didn’t anticipate. The manager attached an email from a 21st Cen- tury Oncology executive who touted an increase in the number of tests ordered through the central lab, and encouraged doctors in her office to direct busi- ness to the lab and share in the revenue. The surge in orders for the bladder-cancer test was so sharp, she wrote to her friend, that it would “surely bring Please turn to page A16 Detainee Returns From North Korea Zuma Press Bystanders and soldiers try to aid a soldier who was killed by a gunman at Canada’s National War Memorial in Ottawa on Wednesday. REUNITED: Jeffrey Fowle, an Ohio man freed by North Korea following about six months in detention after he was arrested on a group tour, greets his son after landing near Dayton early Wednesday morning. Part of a series examining how payments are made in the roughly $600 billion Medicare system. Anxiety grows in Canada...... A10 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. More Enterprise SaaS Applications Than Any Other Cloud Services Provider Oracle Cloud Applications ERP Financials Procurement Projects Supply Chain HCM Human Capital Recruiting Talent CRM Sales Service Marketing C M Y K Composite Composite MAGENTA CYAN BLACK P2JW296000-6-A00100-1--------XA CL,CN,CX,DL,DM,DX,EE,EU,FL,HO,KC,MW,NC,NE,NY,PH,PN,RM,SA,SC,SL,SW,TU,WB,WE BG,BM,BP,CC,CH,CK,CP,CT,DN,DR,FW,HL,HW,KS,LA,LG,LK,MI,ML,NM,PA,PI,PV,TD,TS,UT,WO P2JW296000-6-A00100-1--------XA

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YELLOW

* * * * * * THURSDAY, OCTOBER 23, 2014 ~ VOL. CCLXIV NO. 97 WSJ.com HHHH $2 .00

DJIA 16461.32 g 153.49 0.9% NASDAQ 4382.85 g 0.8% NIKKEI 15195.77 À 2.6% STOXX600 326.11 À 0.7% 10-YR. TREAS. g 8/32 , yield 2.234% OIL (new) $80.52 g $1.97 GOLD $1,244.80 g $6.20 EURO $1.2647 YEN 107.15

Getty

Images

TODAY IN PERSONAL JOURNAL

Best Day to Buy a TicketPLUS Get Your Friends to Pay for Your Getaway

CONTENTSCorporate News B2,3,6Earnings......................... B4Global Finance............ C3Heard on the Street C12In the Markets....... C6,7Leisure & Arts............ D4

Opinion.................. A17-19Small Business.......... B5Sports.............................. D5Style & Travel......... D2,3U.S. News................. A2-8Weather Watch........ B7World News....... A10-15

s Copyright 2014 Dow Jones & Company.All Rights Reserved

>

What’sNews

i i i

World-Widen A gunman fatally shot asoldier in Ottawa before be-ing killed inside Parliament,in an incident that shut downthe Canadian capital. A1, A10n Iraq’s Kurdish authoritiesapproved the deployment of150 soldiers to relieve fellowKurds fighting Islamic State inthe Syrian city of Kobani. A10n Four ex-Blackwater guardswere found guilty in the2007 shooting deaths of 14Iraqi civilians in Baghdad. A3n U.S. authorities will beginmonitoring travelers arrivingfrom Ebola-stricken countriesfor symptoms next week. A6n Social Security announceda 1.7% annual cost-of-livingadjustment for 2015, matchinga rise in consumer prices. A2n The FBI is revamping itswhistleblower rules to makeit easier for employees to re-port agency misconduct. A3n Ex-security chief Zhoulikely faces expulsion fromChina’s Communist Party amidan anticorruption push. A12nA Palestinian drove into pe-destrians in Jerusalem, killingan infant, in what Israeli offi-cials called a terrorist act. A13n U.K. government advisersmeet Thursday with techfirms for talks on combatingextremist content online. A13n Thousands of protestersleft Pakistan’s capital after aMuslim cleric ended an anti-government sit-in. A12nAcademic fraud at a Univer-sity of North Carolina depart-ment frequented by athleteswas blamed on lax oversight.A4

i i i

An air-bag recall is turn-ing into a new safety crisis

for the auto industry. Takata isbeing investigated to seewhether the supplier misledU.S. regulators about safety. A1n J.P. Morgan was warnedof potential problems in itshiring practices in China overa year before the programcame under U.S. scrutiny. C1n P&G shook up its seniormanagement ranks, namingnew leaders for key businessesand narrowing the field of po-tential CEO successors. B1n Luxottica named a P&Gveteran as co-CEO amid tur-moil over the return of the Ital-ian eyewear firm’s founder. B1n Blue-chip companies, in-cluding AT&T, IBM, Coke andGE, have been posting poorgrowth quarter after quarter. A1n AT&T cut its revenue out-look, citing fewer-than-ex-pected sign-ups for its no-contract wireless plan. B4n The Dow finished down153.49 at 16461.32, snapping athree-day rally. The S&P 500and Nasdaq also declined. C6nAmazon, Best Buy, Gap andother retailers are boosting theamount online shoppers mustspend to get free shipping. B1n Discriminatory pricing bye-commerce sites is morewidespread than had beenthought, a study found. B1n The SEC rejected a Black-Rock proposal for a new ETFthat would have kept its hold-ings hidden from investors. C1n Total’s board named theFrench energy firm’s refiningand chemicals head as CEO. B3

Business&Finance

A suddenly expanded recall ofair bags is turning into a newsafety crisis for the auto indus-try and intensifying scrutiny ofU.S. regulators’ ability to overseeauto makers and their suppliers.

The Manhattan U.S. attorney’soffice is investigating whetherair bag supplier Takata Corp.made misleading statementsabout the safety of its air bagsto U.S. regulators, people famil-iar with the matter said. Theprobe is at a preliminary stageand could end without anycharges filed.

Regulators this week nearlydoubled their estimate of thenumber of U.S. vehicles affected,to 7.8 million, and said the figurecould be revised again. Themostly older cars are equippedwith air bags that could explodewith too much force during acollision, spraying drivers andpassengers with shrapnel, regu-lators have said.

The National Highway TrafficSafety Administration onWednesday issued a bulletinwarning of defects in Takata airbags. Some auto makers are re-placing air bags. At least two,Ford Motor Co. and Fiat ChryslerAutomobiles NV, said their vehi-cles on the agency’s list aren’tsubject to a formal recall. A web-site the federal agency set up inAugust to help consumers deter-mine if their cars were at riskhas suffered crashes.

The expansion of repairs firstPleaseturntothenextpage

By Jeff Bennett,Christopher M.

Matthewsand Christina Rogers

Air BagSafetyMeasuresProbed

A man fatally shot a soldier atCanada’s National War Memorialbefore being killed inside thecountry’s Parliament building, ina terror attack that shut downthe capital city and stands tochange the way Canada protectsitself.

Armed officers combed Can-ada’s Parliament building andsurrounding areas for potentialother shooters for much of theday, forcing Ottawa’s core into alockdown mode into the evening,when police said there was nofurther threat to public safetythere.

Prime Minister StephenHarper, speaking from an undis-closed location, said in a tele-

vised address “in the days tocome we will learn more aboutthe terrorist and any accompliceshe may have had.”

The attack on what he termed“a sacred place” served as a“grim reminder that Canada isnot immune to the attacks thathappened around the world.”

The killer was identified byU.S. authorities as Michael Ze-haf-Bibeau, who they said wasborn Michael Joseph Hall butchanged his name as part of a

conversion to Islam. Officialsdidn’t offer a motive.

Earlier in the day, lawmakershuddled in Parliament offices forhours, with some still underlockdown at nightfall. Studentswere required to stay in theirschool buildings in the usuallyquiet city, and Royal CanadianMounted Police officers warnedresidents to stay off roofs andaway from windows.

The shooting occurred as Can-ada was already on heightenedalert after two soldiers were runover on Monday in Quebec by aCanadian man whom authoritieswere investigating for terrorlinks.

It also happened just a day af-

ter Ottawa dispatched warplanesto the U.S.-led campaign againstIslamic State militants, a movethat the country’s main intelli-gence agency had earlier warnedwould increase the threat of ter-ror attacks in Canada.

The shooting in Canada ampli-fied unease around Western capi-tals over their citizens’ vulnera-bility at home during a time ofheightened alerts over potentialterror attacks.

President Barack Obama saidWednesday the attack under-scored the importance to the U.S.“to recognize that when it comes

PleaseturntopageA10

By Paul Vieira in Ottawaand Alistair MacDonald

and Ben Dummettin Toronto

Terror Hits Canadian CapitalGunman Kills Soldier Before Being Shot Dead Inside Parliament Building

Wayne

Cuddington

/BarcroftMedia/Landov

Blue ChipsHave NewReasonsTo Be Blue

In a letter to a friend, the manager of a Floridaurology practice worried in 2010 that her companywould attract federal scrutiny for its frequent use ofan expensive bladder-cancer test.

The manager’s concern involved a program at21st Century Oncology Holdings Inc.—a nationalchain of cancer practices—that gives its urologistsa financial incentive to order the test from a central

BY JOHN CARREYROU AND JANET ADAMY

MEDICARE UNMASKED

Doctor ‘Self-Referral’Thrives on Legal Loophole

The approach was time-testedand hard to beat: Put your moneyin blue chips, decades-old compa-nies that could be counted on toperform through thick and thin.

Now, the market’s stalwarts areshowing their age. Steady has be-come stagnant as companies onceconsidered among the market’smost reliable post poor growth,quarter after woeful quarter.

The list of stumbling stars isremarkable: AT&T Inc., which onWednesday lowered its revenueforecast; Coca-Cola Co., whichposted flat sales; InternationalBusiness Machines Corp., whichthrew out its profit forecast; andGeneral Electric Co., whichhasn’t seen its stock climb above$30 a share since the financial

PleaseturntopageA8

By Theo Francis,Mike Esterl

and Joann S. Lublin

NEW YORK—William D. Mc-Cracken eyed his target on thefar side of a security checkpointoutside New York Police Depart-ment headquarters. Metal detec-tors ringed the fortress-likebuilding, andthe police of-ficer on guardwas wary.

Mr. Mc-Cracken’s in-t e n t i o n sweren’t nefari-ous. All hewanted was tosnap a photograph of the cor-nerstone, dated 1973, at One Po-lice Plaza in lower Manhattan.The cop barred him from the re-stricted area, then borrowed Mr.McCracken’s camera and tookthe photo himself.

For the past six years, the 39-year-old real-estate lawyer has

been combing both sides of ev-ery street in Manhattan in aquest to document the dated, in-scribed rocks that serve as birthcertificates for buildings. Byfoot and on bike, often accompa-nied by his Labradoodle namedMartin, Mr. McCracken has

amassed anonline archiveof the island’s1,100-plus sur-viving corner-stones.

“I’m 90%sure I have90% of them,”he says. “And

I’m 100% sure I don’t have 100%of them.” His wife, Amy, usuallysleeps in when he rises at 6 a.m.to find new cornerstones. “He’smission-driven,” she says. “Itcan be a grind.”

Mr. McCracken’s search hasgotten tougher as the venerable

PleaseturntopageA16

BY DOUGLAS FEIDEN

No Building Is Left UnturnedIn One Man’s Search for Cornerstones

i i i

Six-Year Tally by Foot and Bike Tops 1,100;New Ones Are as Rare as a Flying Buttress

2166 Broadway

in-house lab. A federal law since the 1990s has pro-hibited “self-referral,” in which doctors can profitfrom Medicare-reimbursed procedures they order.But 21st Century Oncology and many physiciangroups around the country have found ways to do itanyway, exploiting an exception to the law in waysits writers didn’t anticipate.

The manager attached an email from a 21st Cen-tury Oncology executive who touted an increase inthe number of tests ordered through the central lab,and encouraged doctors in her office to direct busi-ness to the lab and share in the revenue. The surgein orders for the bladder-cancer test was so sharp,she wrote to her friend, that it would “surely bring

PleaseturntopageA16

Detainee Returns From North Korea

ZumaPress

Bystanders and soldiers try to aid a soldier who was killed by a gunman at Canada’s National War Memorial in Ottawa on Wednesday.

REUNITED: Jeffrey Fowle, an Ohio man freed by North Korea followingabout six months in detention after he was arrested on a group tour,greets his son after landing near Dayton early Wednesday morning.

Part of a series examining how payments are madein the roughly $600 billion Medicare system.

Anxiety grows in Canada...... A10

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.

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HCMHuman CapitalRecruitingTalent

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