In Nigeria, Polio Vaccine Workers Are Killed by Gunmen

At least nine polio immunization workers were shot to death in northern Nigeria on Friday by gunmen who attacked two clinics, officials said.

The killings, with eerie echoes of attacks that killed nine female polio workers in Pakistan in December, represented another serious setback for the global effort to eradicate polio.

Most of the victims were women and were shot in the back of the head, local reports said.

A four-day vaccination drive had just ended in Kano State, where the killings took place, and the vaccinators were in a “mop-up” phase, looking for children who had been missed, said Sarah Crowe, a spokeswoman for the United Nations Children’s Fund, one of the agencies running the eradication campaign.

Dr. Mohammad Ali Pate, Nigeria’s minister of state for health, said in a telephone interview that it was not entirely clear whether the gunmen were specifically targeting polio workers or just attacking the health centers where vaccinators happened to be gathering early in the morning. “Health workers are soft targets,” he said.

No one immediately took responsibility, but suspicion fell on Boko Haram, a militant Islamist group that has attacked police stations, government offices and even a religious leader’s convoy.

Polio, which once paralyzed millions of children, is now down to fewer than 1,000 known cases around the world, and is endemic in only three countries: Nigeria, Pakistan and Afghanistan.

Since September — when a new polio operations center was opened in the capital and Nigeria’s president, Goodluck Jonathan, appointed a special adviser for polio — the country had been improving, said Dr. Bruce Aylward, chief of polio eradication for the World Health Organization. There have been no new cases since Dec. 3.

While vaccinators have not previously been killed in the country, there is a long history of Nigerian Muslims shunning the vaccine.

Ten years ago, immunization was suspended for 11 months as local governors waited for local scientists to investigate rumors that it caused AIDS or was a Western plot to sterilize Muslim girls. That hiatus let cases spread across Africa. The Nigerian strain of the virus even reached Saudi Arabia when a Nigerian child living in hills outside Mecca was paralyzed.

Heidi Larson, an anthropologist at the London School of Hygiene and Tropical Medicine who tracks vaccine issues, said the newest killings “are kind of mimicking what’s going on in Pakistan, and I feel it’s very much prompted by that.”

In a roundabout way, the C.I.A. has been blamed for the Pakistan killings. In its effort to track Osama bin Laden, the agency paid a Pakistani doctor to seek entry to Bin Laden’s compound on the pretext of vaccinating the children — presumably to get DNA samples as evidence that it was the right family. That enraged some Taliban factions in Pakistan, which outlawed vaccination in their areas and threatened vaccinators.

Nigerian police officials said the first shootings were of eight workers early in the morning at a clinic in the Tarauni neighborhood of Kano, the state capital; two or three died. A survivor said the two gunmen then set fire to a curtain, locked the doors and left.

“We summoned our courage and broke the door because we realized they wanted to burn us alive,” the survivor said from her bed at Aminu Kano Teaching Hospital.

About an hour later, six men on three-wheeled motorcycles stormed a clinic in the Haye neighborhood, a few miles away. They killed seven women waiting to collect vaccine.

Ten years ago, Dr. Larson said, she joined a door-to-door vaccination drive in northern Nigeria as a Unicef communications officer, “and even then we were trying to calm rumors that the C.I.A. was involved,” she said. The Iraq and Afghanistan wars had convinced poor Muslims in many countries that Americans hated them, and some believed the American-made vaccine was a plot by Western drug companies and intelligence agencies.

Since the vaccine ruse in Pakistan, she said, “Frankly, now, I can’t go to them and say, ‘The C.I.A. isn’t involved.’ ”

Dr. Pate said the attack would not stop the newly reinvigorated eradication drive, adding, “This isn’t going to deter us from getting everyone vaccinated to save the lives of our children.”

Aminu Abubakar contributed reported from Kano, Nigeria.

Read More..

In Nigeria, Polio Vaccine Workers Are Killed by Gunmen

At least nine polio immunization workers were shot to death in northern Nigeria on Friday by gunmen who attacked two clinics, officials said.

The killings, with eerie echoes of attacks that killed nine female polio workers in Pakistan in December, represented another serious setback for the global effort to eradicate polio.

Most of the victims were women and were shot in the back of the head, local reports said.

A four-day vaccination drive had just ended in Kano State, where the killings took place, and the vaccinators were in a “mop-up” phase, looking for children who had been missed, said Sarah Crowe, a spokeswoman for the United Nations Children’s Fund, one of the agencies running the eradication campaign.

Dr. Mohammad Ali Pate, Nigeria’s minister of state for health, said in a telephone interview that it was not entirely clear whether the gunmen were specifically targeting polio workers or just attacking the health centers where vaccinators happened to be gathering early in the morning. “Health workers are soft targets,” he said.

No one immediately took responsibility, but suspicion fell on Boko Haram, a militant Islamist group that has attacked police stations, government offices and even a religious leader’s convoy.

Polio, which once paralyzed millions of children, is now down to fewer than 1,000 known cases around the world, and is endemic in only three countries: Nigeria, Pakistan and Afghanistan.

Since September — when a new polio operations center was opened in the capital and Nigeria’s president, Goodluck Jonathan, appointed a special adviser for polio — the country had been improving, said Dr. Bruce Aylward, chief of polio eradication for the World Health Organization. There have been no new cases since Dec. 3.

While vaccinators have not previously been killed in the country, there is a long history of Nigerian Muslims shunning the vaccine.

Ten years ago, immunization was suspended for 11 months as local governors waited for local scientists to investigate rumors that it caused AIDS or was a Western plot to sterilize Muslim girls. That hiatus let cases spread across Africa. The Nigerian strain of the virus even reached Saudi Arabia when a Nigerian child living in hills outside Mecca was paralyzed.

Heidi Larson, an anthropologist at the London School of Hygiene and Tropical Medicine who tracks vaccine issues, said the newest killings “are kind of mimicking what’s going on in Pakistan, and I feel it’s very much prompted by that.”

In a roundabout way, the C.I.A. has been blamed for the Pakistan killings. In its effort to track Osama bin Laden, the agency paid a Pakistani doctor to seek entry to Bin Laden’s compound on the pretext of vaccinating the children — presumably to get DNA samples as evidence that it was the right family. That enraged some Taliban factions in Pakistan, which outlawed vaccination in their areas and threatened vaccinators.

Nigerian police officials said the first shootings were of eight workers early in the morning at a clinic in the Tarauni neighborhood of Kano, the state capital; two or three died. A survivor said the two gunmen then set fire to a curtain, locked the doors and left.

“We summoned our courage and broke the door because we realized they wanted to burn us alive,” the survivor said from her bed at Aminu Kano Teaching Hospital.

About an hour later, six men on three-wheeled motorcycles stormed a clinic in the Haye neighborhood, a few miles away. They killed seven women waiting to collect vaccine.

Ten years ago, Dr. Larson said, she joined a door-to-door vaccination drive in northern Nigeria as a Unicef communications officer, “and even then we were trying to calm rumors that the C.I.A. was involved,” she said. The Iraq and Afghanistan wars had convinced poor Muslims in many countries that Americans hated them, and some believed the American-made vaccine was a plot by Western drug companies and intelligence agencies.

Since the vaccine ruse in Pakistan, she said, “Frankly, now, I can’t go to them and say, ‘The C.I.A. isn’t involved.’ ”

Dr. Pate said the attack would not stop the newly reinvigorated eradication drive, adding, “This isn’t going to deter us from getting everyone vaccinated to save the lives of our children.”

Aminu Abubakar contributed reported from Kano, Nigeria.

Read More..

John E. Karlin, 1918-2013: John E. Karlin, Who Led the Way to All-Digit Dialing, Dies at 94

Courtesy of Alcatel-Lucent USA

John E. Karlin, a researcher at Bell Labs, studied ways to make the telephone easier to use.

A generation ago, when the poetry of PEnnsylvania and BUtterfield was about to give way to telephone numbers in unpoetic strings, a critical question arose: Would people be able to remember all seven digits long enough to dial them?

And when, not long afterward, the dial gave way to push buttons, new questions arose: round buttons, or square? How big should they be? Most crucially, how should they be arrayed? In a circle? A rectangle? An arc?

For decades after World War II, these questions were studied by a group of social scientists and engineers in New Jersey led by one man, a Bell Labs industrial psychologist named John E. Karlin.

By all accounts a modest man despite his variegated accomplishments (he had a doctorate in mathematical psychology, was trained in electrical engineering and had been a professional violinist), Mr. Karlin, who died on Jan. 28, at 94, was virtually unknown to the general public.

But his research, along with that of his subordinates, quietly yet emphatically defined the experience of using the telephone in the mid-20th century and afterward, from ushering in all-digit dialing to casting the shape of the keypad on touch-tone phones. And that keypad, in turn, would inform the design of a spate of other everyday objects.

It is not so much that Mr. Karlin trained midcentury Americans how to use the telephone. It is, rather, that by studying the psychological capabilities and limitations of ordinary people, he trained the telephone, then a rapidly proliferating but still fairly novel technology, to assume optimal form for use by midcentury Americans.

“He was the one who introduced the notion that behavioral sciences could answer some questions about telephone design,” Ed Israelski, an engineer who worked under Mr. Karlin at Bell Labs in the 1970s, said in a telephone interview on Wednesday.

In 2013, the 50th anniversary of the introduction of the touch-tone phone, the answers to those questions remain palpable at the press of a button. The rectangular design of the keypad, the shape of its buttons and the position of the numbers — with “1-2-3” on the top row instead of the bottom, as on a calculator — all sprang from empirical research conducted or overseen by Mr. Karlin.

The legacy of that research now extends far beyond the telephone: the keypad design Mr. Karlin shepherded into being has become the international standard on objects as diverse as A.T.M.’s, gas pumps, door locks, vending machines and medical equipment.

Mr. Karlin, associated from 1945 until his retirement in 1977 with Bell Labs, headquartered in Murray Hill, N.J., was widely considered the father of human-factors engineering in American industry.

A branch of industrial psychology that combines experimentation, engineering and product design, human-factors engineering is concerned with easing the awkward, often ill-considered marriage between man and machine. In seeking to design and improve technology based on what its users are mentally capable of, the discipline is the cognitive counterpart of ergonomics.

“Human-factors studies are different from market research and other kinds of studies in that we observe people’s behavior and record it, systematically and without bias,” Mr. Israelski said. “The hallmark of human-factors studies is they involve the actual observation of people doing things.”

Among the issues Mr. Karlin examined as the head of Bell Labs’ Human Factors Engineering department — the first department of its kind at an American company — were the optimal length for a phone cord (a study that involved gentle, successful sabotage) and the means by which rotary calls could be made efficiently after the numbers were moved from inside the finger holes, where they had nestled companionably for years, to the rim outside the dial.

John Elias Karlin was born in Johannesburg on Feb. 28, 1918, and reared nearby in Germiston, where his parents owned a grocery store and tearoom.

He earned a bachelor’s degree in philosophy, psychology and music, and a master’s degree in psychology, both from the University of Cape Town. Throughout his studies he was a violinist in the Cape Town Symphony Orchestra and the Cape Town String Quartet.

Moving to the United States, Mr. Karlin earned a Ph.D. from the University of Chicago in 1942. Afterward, he became a research associate at Harvard; he also studied electrical engineering there and at the Massachusetts Institute of Technology.

At Harvard, Mr. Karlin did research for the United States military on problems in psychoacoustics that were vital to the war effort — studying the ways, for instance, in which a bomber’s engine noise might distract its crew from their duties.

Read More..

IHT Rendezvous: Drones, Brennan and Obama's Legacy of Secrecy

NEW YORK — John O. Brennan’s testimony before the Senate Intelligence Committee on Thursday was representative of the Obama administration’s approach to counter-terrorism: right-sounding assurances with little transparency.

Mr. Brennan, the president’s choice to be the next head of the Central Intelligence Agency, said the United States should publicly disclose when American drone attacks kill civilians. He called water boarding “reprehensible” and vowed it would never occur under his watch. And he said that countering militancy should be “comprehensive,” not just “kinetic,” and involve diplomatic and development efforts as well.

What any of that means in practice, critics say, remains unknown.

Mr. Brennan failed to clearly answer questions about the administration’s excessive embrace of drone strikes and secrecy.

He flatly defended the quadrupling of drone strikes that has occurred on President Obama’s watch. He gave no clear explanation for why the public has been denied access to Justice Department legal opinions that give the president the power to kill U.S. citizens without judicial review. And his statement that the establishment of a special court to review the targeting of Americans was “worthy of discussion” was noncommittal.

Before the hearing administration officials defended the career CIA officer who has served as the president’s chief counter-terrorism adviser throughout his first term. A senior administration official who asked not be named said that Mr. Brennan has actively worked to reduce drone attacks and increase transparency.

Officials described him as a traditionalist who would move the CIA away from the paramilitary attacks that have come to define its mission since 2001. Instead, the agency would move back to espionage and hand over lethal strikes, including drone attacks, to the military’s Special Operations forces.

Over the last two years, drone strikes in Pakistan have, in fact, decreased by nearly two-thirds from a peak of 122 in 2010 to 48 last year, according to The New American Foundation. At the same time, strikes in Yemen have increased, killing an estimated 400 people including 80 civilians.

From his office in the basement of the White House, Mr. Brennan has been at the center of it all. Daniel Benjamin, who recently stepped down as the State Department’s top counterterrorism official, told the New York Times this week that Mr. Brennan had sweeping authority.

“He’s probably had more power and influence than anyone in a comparable position in the last 20 years,” said Mr. Benjamin. “He’s had enormous sway over the intelligence community. He’s had a profound impact on how the military does counterterrorism.”

Some former military and intelligence officials have warned that the administration’s drone strikes have shifted from an attempt to only target senior militants to a de facto bombing campaign against low-level fighters. They say such a policy creates high levels of public animosity toward the United States with questionable results.

In a recent interview with Reuters, retired Gen. Stanley McChrystal, the former commander of American forces in Afghanistan, said drones were useful tools, but they are “hated on a visceral level” in many countries and contribute to a “perception of American arrogance.”

In Thursday’s hearing, Mr. Brennan showed an awareness of how excessive use of force can be counterproductive. He also aggressively defended the need for the United States to abide by the rule of law, a vital practice if the US is going to ever gain popular support in the region.

In one of his strongest moments, Mr. Brennan flatly rejected suggestions by Senator Marco Rubio of Florida that U.S. officials should have pressured Tunisian officials to improperly detain a suspect in the fatal attack on the U.S. consulate in Benghazi, Libya. Mr. Brennan said Tunisian officials had no evidence linking the man to the incident.

“Senator, this country needs to make sure we are setting an example and a standard for the world,” he said, adding that Washington had to “respect the rights of these governments to enforce their laws independently.”

Mr. Brennan also argued that opponents of the program misunderstood it. He said the United States only used drone strikes as a “last resort,” and the administration goes through “agony” before launching drone strikes in order to avoid civilian casualties.

In truth, the administration’s insistence on keeping the drone program secret fuels public suspicion. Declaring a program “covert” when it is reported on by the global media on a daily basis is increasingly absurd: as Joshua Foust, an analyst and former U.S. intelligence official, has argued, keeping the program secret cedes the debate to critics who say the strikes only kill vast numbers of civilians.

It is easy to see why many analysts say the United States should continue to carry out drone strikes – they are a military necessity – but keep them to a minimum. And details such as why an attack is carried out, who is killed and any civilian casualties should be publicly disclosed.

Mr. Brennan’s statement that drone strikes have decimated al Qaeda’s core leadership in Pakistan’s tribal areas was largely accurate. But despite the increase in strikes under Mr. Obama, the attacks have failed to do the same to the Afghan and Pakistani Taliban operating out of the same area. Drone strikes will never be a silver bullet. They have created a stalemate in Pakistan, weakening militant groups but not eliminating them.

After the hearing, Sen. Dianne Feinstein, the Democratic chair of the Senate Intelligence Committee, said she was considering drafting legislation that would create a special court to review requests by the president to target Americans under certain circumstances. The new body would be similar to the court that currently reviews government requests to wiretap citizens.

Critics point out that the Obama administration has a long record of promising transparency and then embracing secrecy — from drone strikes to legal memos to unprecedented prosecutions of government officials for leaking to the news media.

Overall, Mr. Brennan impressed those watching yesterday. We will see if he moves the CIA and the administration toward greater transparency. What he and the president plan remains secret.

---

David Rohde is a columnist for Reuters, former reporter for The New York Times and two-time winner of the Pulitzer Prize. His forthcoming book, “Beyond War: Reimagining American Influence in a New Middle East” will be published in March 2013.

Read More..

Wall Street Edges Ahead

Stocks opened slightly higher on Wall Street on Friday after a trio of positive economic data points, but gains were expected to be modest.

The Standard & Poor’s 500-stock index added 0.2 percent in early trading, the Dow Jones industrial average rose 0.2 percent and the Nasdaq composite index jumped 0.4 percent.

Data showed that Chinese exports grew more than expected in January, while imports climbed 28.8 percent, highlighting robust domestic demand. German data showed a 2012 trade surplus that was the nation’s second highest in more than 60 years, an indication of the underlying strength of Europe’s biggest economy.

And U.S. data showed that the trade deficit shrank in December to $38.5 billion, its narrowest in nearly three years, indicating the economy did better in the fourth quarter than initially estimated.

The S.&P. 500 has risen for five straight weeks and is up 5.8 percent for the year. Its advance was helped by legislators in Washington averting a series of automatic spending cuts and tax increases earlier in the year, as well as better-than-expected corporate earnings and data that pointed to modest economic improvement but no immediate change in the Federal Reserve’s stimulus plans.

But the index, hovering near five-year highs, has stalled in recent days as investors await strong trading incentives to drive it further..

“The market has made a big run, a lot of this was anticipated and so now investors are saying, ‘Now what? What do we do for an encore?'” said Terry Morris, senior equity manager for National Penn Investors Trust Company in Reading, Pa. “It has made a big run and it is deserving of rest — in fact, it would probably be healthy if we had a little bit of a pullback.”

McDonald’s said that January sales at established hamburger restaurants around the world fell 1.9 percent, a steeper decline than analysts expected. Shares edged down 0.5 percent.

LinkedIn jumped 10.6 percent after announcing both blow-out quarterly profit and a bullish forecast for the new year that exceeded Wall Street’s already lofty expectations.

According to Thomson Reuters data through Thursday morning, of 317 companies in the S.&P. 500 that have reported earnings, 69 percent have exceeded analysts’ expectations, above a 62 percent average since 1994 and a 65 percent average over the past four quarters.

Fourth-quarter earnings for S.&P. 500 companies grew 5 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.

On Thursday, comments about the strength of the euro by the European Central Bank president, Mario Draghi, renewed concern about the euro zone economy and sent global equities lower. On Friday, European stock markets were mostly higher in afternoon trading, while the euro traded around $1.3394.

Read More..

The New Old Age: The Executor's Assistant

I’m serving as executor for my father’s estate, a role few of us are prepared for until we’re playing it, so I was grateful when the mail brought “The American Bar Association Guide to Wills and Estates” — the fourth edition of a handbook the A.B.A. began publishing in 1995.

This is a legal universe, I’m learning, in which every step — even with a small, simple estate that owes no taxes and includes no real estate or trusts — turns out to be at least 30 percent more complicated than expected.

If my dad had been wealthy or owned a business, or if we faced a challenge to his will, I would have turned the whole matter over to an estate lawyer by now. But even then, it would be helpful to know what the lawyer was talking about. The A.B.A. guide would help.

Written with surprising clarity (hey, they’re lawyers), it maps out all kinds of questions and decisions to consider and explains the many ways to leave property to one’s heirs. Updated from the third edition in 2009, the guide not only talks taxes and trusts, but also offers counsel for same-sex couples and unconventional families.

If you want to permit your second husband to live in the family home until he dies, but then guarantee that the house reverts to the children of your first marriage, the guide tells you how a “life estate” works. It explains what is taxable and what isn’t, and discusses how to choose executors and trustees. It lists lots of resources and concludes with an estate-planning checklist.

In general, the A.B.A. intends its guide for the person trying to put his or her affairs in order, more than for family members trying to figure out how to proceed after someone has died. But many of us will play both these parts at some point (and if you are already an executor, or have been, please tell us how that has gone, and mention your state). We’ll need this information.

---

Paula Span is the author of “When the Time Comes: Families With Aging Parents Share Their Struggles and Solutions.”

Read More..

The New Old Age: The Executor's Assistant

I’m serving as executor for my father’s estate, a role few of us are prepared for until we’re playing it, so I was grateful when the mail brought “The American Bar Association Guide to Wills and Estates” — the fourth edition of a handbook the A.B.A. began publishing in 1995.

This is a legal universe, I’m learning, in which every step — even with a small, simple estate that owes no taxes and includes no real estate or trusts — turns out to be at least 30 percent more complicated than expected.

If my dad had been wealthy or owned a business, or if we faced a challenge to his will, I would have turned the whole matter over to an estate lawyer by now. But even then, it would be helpful to know what the lawyer was talking about. The A.B.A. guide would help.

Written with surprising clarity (hey, they’re lawyers), it maps out all kinds of questions and decisions to consider and explains the many ways to leave property to one’s heirs. Updated from the third edition in 2009, the guide not only talks taxes and trusts, but also offers counsel for same-sex couples and unconventional families.

If you want to permit your second husband to live in the family home until he dies, but then guarantee that the house reverts to the children of your first marriage, the guide tells you how a “life estate” works. It explains what is taxable and what isn’t, and discusses how to choose executors and trustees. It lists lots of resources and concludes with an estate-planning checklist.

In general, the A.B.A. intends its guide for the person trying to put his or her affairs in order, more than for family members trying to figure out how to proceed after someone has died. But many of us will play both these parts at some point (and if you are already an executor, or have been, please tell us how that has gone, and mention your state). We’ll need this information.

---

Paula Span is the author of “When the Time Comes: Families With Aging Parents Share Their Struggles and Solutions.”

Read More..

DealBook: Einhorn Sues Apple Over Plan to Discard Preferred Stock

9:02 p.m. | Updated

Wall Street has had a long romance with Apple. Now one of the company’s best-known investors is saying: I love you, but you need to change.

The surprising declaration by the billionaire hedge fund manager David Einhorn adds to the growing dissatisfaction with Apple and its once soaring stock.

On Thursday, Mr. Einhorn urged his fellow shareholders to block a plan by Apple to scrap a certain class of stock. He says that the move limits the company’s ability to use its enormous war chest — some $137 billion in cash — to reward investors.

The campaign is an unusually aggressive one for Mr. Einhorn, who came to fame betting against Lehman Brothers. To thwart the proposal, Mr. Einhorn is suing Apple in Federal District Court in Manhattan, claiming that it violated securities rules by tying the plan with two other initiatives that he sees as good corporate governance.

The standoff sets up an unusual clash between two sides who can each claim a huge following on Wall Street. In one corner is Apple, whose stock’s almost unearthly growth has bewitched investors across the globe — at least until recently. In the other is Mr. Einhorn, widely regarded as an intelligent investor whose moves inspire legions of copycats. His merely asking a few questions on an earnings call for Herbalife, a nutritional supplement company, last May prompted a plunge in its shares.

So far, each side has remained cordial. Mr. Einhorn called Apple “phenomenal” and contended that his campaign had nothing to do with its recent stock decline. His firm, Greenlight Capital, currently holds 1.3 million shares, now worth nearly $609 million.

“We own more Apple today than we ever have before,” he said in a telephone interview. “We’re optimistic about the company’s prospects, and think too much bad news has been priced in.”

In a response, Apple said that it “welcomes” Mr. Einhorn’s views and added that its management and its board were actively discussing how to return more cash to shareholders.

But the spat underlines recent hand-wringing over Apple, whose stock has proved vulnerable in recent weeks. Over the decade that ended in late September, its share price soared an astounding 18,749 percent, to more than $700. Scores of hedge funds bought into the stock, riding its coat tails to bolster their own returns.

Since about Sept. 21, however, Apple’s stock price has tumbled almost 33 percent, closing on Thursday at $468.22. (Even so, its market capitalization stands at $439.7 billion, making Apple the most valuable public company in the world.)

As the shares have fallen, the volume of criticism has risen.

“Because the stock has sold off from its high, and because Apple’s earnings have declined for the first time in a decade, you’ll hear people become more vocal,” said Walter Piecyk Jr., an analyst at BTIG Research.

Since at least 2005, no shareholder has conducted a formal campaign against an Apple management proposal, according to the data provider FactSet.

Mr. Einhorn’s main concern is Apple’s cash hoard, which is bigger than Intel’s entire market value. Shareholders have long complained that the cash, invested in the likes of Treasury bonds, is increasingly a drag on the stock price and should either be invested in new opportunities for growth or returned to them.

Last spring, the company announced a plan to return $45 billion to shareholders over three years, in the form of share buybacks and a dividend for its common stock. But that will hardly make a dent in a cash pile that swelled by $117 million a day during its most recent quarter.

Mr. Einhorn on Thursday compared Apple to his grandmother, whose experience surviving the Great Depression molded her into an extreme saver who did not leave voice mail messages for fear of using extra cellphone minutes. The company’s own near-death experience in 1997, he said, left a similarly profound scar on its corporate psyche.

As an alternative, he has been proposing since last May what he calls a “win-win” for Apple and its investors. The company, he says, could issue $50 billion in preferred shares to existing shareholders, which would carry a roughly 4 percent annual dividend. Over time, Apple could issue more preferred stock and increase its overall payouts.

The idea, which Mr. Einhorn said had been discussed within his firm for some time, would reward shareholders while ensuring that Apple would spend that additional cash over time. He raised the idea with company executives, including Apple’s chief financial officer, Peter Oppenheimer, over several months, but was rebuffed.

Mr. Einhorn became more aggressive after seeing Apple’s proposal to eliminate so-called blank check preferred stock from its corporate charter. The move would prohibit it from issuing preferred stock without shareholder approval. To Mr. Einhorn, that would sharply limit options for “unlocking value.”

He was further irked by Apple’s tying the plan with two others that he said he would ordinarily support.

In its statement, Apple said that its proposal was actually aimed at making itself more responsive to investors. It added that the plan would not prevent the introduction of precisely the kind of initiative that Mr. Einhorn had discussed.

At least one major investor has sided with Apple. Calpers, the giant California public employee pension fund that is the company’s 43rd-biggest shareholder, said in a statement that the proposal “significantly strengthens share owner rights and deserves full support.”

For his part, Mr. Einhorn said he planned on trying to persuade other shareholders. And he has reconciled himself to Apple’s days of meteoric growth now lying in the past.

“It’s not going to grow 80 percent a year,” he said of the company, “but that doesn’t mean it’s going to go bankrupt.”

David Einhorn's Lawsuit Against Apple by

A version of this article appeared in print on 02/08/2013, on page B1 of the NewYork edition with the headline: Investor Sues Apple Over Plan For Stocks.

Read More..

India Ink: Calls Grow Louder for Politician Accused of Rape to Resign

KOCHI— Demands for a fresh investigation of an Indian politician accused of raping a teenager in 1996 gained momentum after the young woman’s mother urged the Congress Party’s leader to dismiss the lawmaker.

As a teenager, a woman from a small town called Suryanelli in Kerala was allegedly abducted and raped by 42 men over a period of 40 days in January and February of 1996. Among the suspects the girl identified was P.J. Kurien, then a member of Parliament and now the deputy chairman of the upper house of Parliament.

In an emotionally charged letter to Sonia Gandhi, the president of Congress Party, the woman’s mother called for Mr. Kurien, a Congress member, to be dismissed from his position in the Rajya Sabha.

“We believe that Mr. P.J. Kurien has exerted undue influence over the investigating officials in order to escape from the clutches of law, and he had succeeded in that,” she said in the letter, dated Thursday.

She also asked Mrs. Gandhi how Mr. Kurien could be allowed to preside over the legislative debate on criminal law amendments for tougher rape laws.

In a country outraged by the gang-rape of a 23-year-old physiotherapy student in Delhi and by the authorities’ failure to prevent and punish crimes against women, this latest rape case is being seen as yet another example of India’s slow justice system, where cases languish in courts for years. It has also focused attention on official corruption, which allows the wealthy and politically connected to influence police investigations.

For the last 17 years, the Kerala rape case has been winding its way through India’s judicial system. On Jan. 31, the Supreme Court ordered a retrial, overturning the acquittal of a majority of the 42 suspects in 2005 by the Kerala High Court, which said that the girl had not tried to escape.

The girl alleged that Mr. Kurien had raped her at a government guest house in the southern town of Kumily. But police failed to include him on the list of men she had accused, so she filed a private complaint before a magistrate in 1999, said Sureshbabu Thomas, a special prosecutor for the case against the rest of the men.

Mr. Kurien filed a petition to dismiss the case in the lower court, which rejected his request. He then filed his appeal with the Kerala High Court, which said there was insufficient evidence against Mr. Kurien. The state government of Kerala appealed to the Supreme Court, which sided with Mr. Kurien.

“All the others who were named by the victim had to appear in the court, but P.J. Kurien did not,” K.V. Bhadra Kumari, a women’s rights activist and a lawyer, said in a phone interview. “Let him also be tried and let the law take its course.”

The Kerala government has refused to investigate Mr. Kurien, saying that his case has been cleared by the Supreme Court, but that has only enraged those who want Mr. Kurien to stand trial.

Opposition leaders in Kerala, Mr. Kurien’s home state, disrupted state legislative assembly proceedings Friday, demanding that Mr. Kurien resign. Angry protests were also held in Kerala’s capital city of Thiruvananthapuram.

Mr. Kurien has refused to step down. “I have already offered myself for judicial scrutiny in 1990s. Why should I do so again?” Mr. Kurien told an Indian television channel NDTV. “Then the High Court and Supreme Court had exonerated me. A fresh investigation will be contempt of court.”

Kerala, one of the few states in India where women outnumber men, is considered one of India’s most progressive states because of its high literacy rates: 93.91 percent overall, and a female literacy rate of 91.98 percent. It also has a much higher rate of reported rapes than the national average and has one of the highest rates of reported crimes against women among India’s 26 states.

K. Ajitha, a former member of the Naxal movement who now serves as a director of Anweshi, a woman’s organization that fights gender-based violence, said that one of the crucial problems is that there is a well-connected criminal network in the state, which protects political leaders and influential people when they are accused of rape.

“The organized mafia traps young adolescent girls by spreading its tentacles to all fields — the political leadership, the police, the judiciary,” she said. “So a rape victim rarely receives justice.”

Two of Kerala’s most publicized cases of sexual assault, known in the media as the “Suryanelli” and the “Vithura” after the hometowns of the victims, have been pending for years.

The trial of the 45 men accused in the Vithura case, where a girl was allegedly gang raped in 1995, is still under way 18 years after the crime was first reported. The victim, now in her early 30s, has requested the courts to discontinue the trial, saying it was traumatic to relive the incidents over and over again. The Kerala High Court, however, has rejected the request.

Read More..

DealBook: Einhorn to Sue Apple Over Plan to Discard Preferred Stock

The hedge fund magnate David Einhorn has long been known as a fervent fan of Apple. But he is making an unusually public stand to oppose a move by the company: a lawsuit.

His hedge fund, Greenlight Capital, said on Thursday that it was suing Apple in an effort to block a move that would eliminate preferred shares. In a letter to fellow stockholders, Mr. Einhorn said the move to amend the company’s charter would unnecessarily limit the technology giant’s ability to create value for shareholders and called on them for support.

“This is an unprecedented action to curtail the company’s options,” he wrote in the letter. “We are not aware of any other company that has ever voluntarily taken this step.”

The stated goal of the legal action is technical, based on an accusation that Apple is violating securities rules by bundling several shareholder initiatives in one proposal. But underneath it lies deeper dissatisfaction with the company.

Activists have taken on increasingly bigger targets in recent years, including the likes of Hess and Procter & Gamble. But no one has dared to take on the onetime darling of the hedge fund community.

The opposition by Mr. Einhorn is the latest sign of investor ire with a company whose stock price in recent years had been almost unearthly in its gains. That growth attracted Greenlight, which now holds 1.3 million shares – a stake of more than $590 million – and a wide array of hedge funds that hitched their investment performance to Apple’s rising star.

Over the last several months, however, shares in Apple have tumbled, leaving many with a sour taste in their mouths. In a letter to Greenlight investors last month, Mr. Einhorn joked that some of his fund’s stumbles were because “our apple was bruised.”

On Thursday, however, he took a more adversarial tone.

Mr. Einhorn praised Apple as “a phenomenal company filled with talented people creating iconic products that consumers around the world love.” But he expressed deep dissatisfaction over how Apple was managing its finances, complaining that the company’s enormous $137 billion cash hoard was shortchanging shareholders.

It appears that the move by Apple to eliminate preferred shares in its charter is the final straw. Mr. Einhorn said he had called upon the company to issue existing shareholders a perpetual preferred stock that would pay out a dividend. In one suggested outcome, the company would initially distribute $50 billion carrying a 4 percent annual dividend, and then issue more over time.

Mr. Einhorn said he had raised the issue with Apple executives several times, only to be rejected.

As Apple’s share price has fallen – it is down more than 26 percent over the last six months – Mr. Einhorn has said shareholders are owed more.

“The recent, severe underperformance of Apple’s shares, which are down approximately 35 percent from their peak valuation, underscores the need for the company to apply the same level of creativity used to develop revolutionary technology for its consumers to unlock the value of its strong balance sheet for its shareholders,” he wrote in the letter.

On CNBC, Mr. Einhorn likened Apple, whose near-collapse in 1997 profoundly scarred the company, to his his grandmother, who survived the Great Depression. Both have adopted tendencies to amass far more cash than they need, instead of putting it to more productive investments.

Apple is like “someone who’s gone through traumas,” the hedge fund magnate said. “They sometimes feel they can never have cash.”

Mr. Einhorn also protested that Apple was tying the preferred stock proposal to two other initiatives he supported: allowing for simple majority voting for directors and establishing a par value for common stock.

Shares in Apple were up slightly in early-morning trading on Thursday, at $457.57. That remains well below its 52-week high of $705.07.

Read More..