Slim majority supports L.A. sales tax increase

A Los Angeles sales tax hike being promoted as vital to preserving public safety and helping end years of budget deficits is drawing support from a narrow majority of likely voters, according to a new USC Price/L.A. Times poll.

Fifty-three percent of surveyed voters said they definitely or probably would vote for Proposition A, which is on Tuesday's ballot and would raise $200 million a year by boosting the city's sales tax rate by half a cent to 9.5%, one of the highest in the state.

About 41% of respondents said they expected to vote against the measure, while 6% were undecided. The results offer hope to Mayor Antonio Villaraigosa and other backers of Proposition A, which needs 50% plus one of the vote to pass.

GRAPHIC: Contributions to Yes on Prop. A

Because of the poll's 4.4-percentage-point margin of error, support could dip below 50% and passage can't be taken for granted, said Dan Schnur, director of the Jesse M. Unruh Institute of Politics at USC. "On one hand, [Proposition A] enjoys a fairly sizable lead in the polls," he said. "On the other hand, margins this close to 50% should always be cause for concern for an initiative's proponents."

The bipartisan USC Sol Price School of Public Policy/L.A. Times Los Angeles City Primary Poll canvassed 500 likely voters between Feb. 24 and 27. The poll was conducted jointly by the Benenson Strategy Group, a Democratic firm, and M4 Strategies, a Republican company.

Backers of Proposition A — using contributions from labor unions, billboard companies and real estate interests needing City Hall approvals — have been airing TV ads featuring images of accident victims being rushed to hospitals and a grim-faced Police Chief Charlie Beck warning that "public safety is now in danger."

Beck also has been warning at news conferences and in interviews that the Los Angeles Police Department will lose 500 officers if voters reject the tax increase.

Opponents, who lack the money to mount an advertising campaign, say voters are being asked to pay for bad City Hall spending decisions, including a deal that gives civilian city employees a 25% pay hike over seven years.

Some warn that city leaders will only give away the added sales tax collections by pursuing a proposed phase-out of the business receipts tax. The top five candidates for mayor have come out against Proposition A, and the poll results suggest that was politically wise. Close to half of respondents said they would be less likely to vote for a mayoral candidate who supports the sales tax increase.

The poll indicates that the Proposition A language that city officials put on voters' ballots could end up pushing it to victory, said Chris St. Hilaire, chief executive of M4 Strategies, which helped conduct the poll.

The ballot title calls it the "neighborhood public safety and vital city services funding and accountability measure" and says it would help maintain 911 emergency and other services.

Retired nurse Annette Koppel, 80, voted by mail for the sales tax increase, but only reluctantly. Although she is living on a fixed income, Koppel — a victim of a carjacking in the late 1980s — said she worries about a decrease in the number of police, firefighters and paramedics.

"Without them, what are we going to do?" she asked.

Some, including a former top budget advisor to Villaraigosa who is now running for City Council, have questioned whether the budget crisis is as severe as city officials say.

James Cotton, 84, of Winnetka told The Times that he voted against the sales tax increase even though his daughter is an employee in the Fire Department. Cotton said lawmakers should look for other ways of balancing the budget and making better choices about how to spend taxpayer funds.

"I'm of the opinion that a lot of the money could be better spent," said Cotton, adding that the measure would hurt businesses and residents on fixed incomes.

The push for a sales tax increase is being led by City Council President Herb Wesson, who has helped raise more than $1.2 million for the pro-Proposition A campaign. More than one out of every four dollars has come from labor unions, most of them representing city employees. Service Employees International Union, which represents civilian city employees, has given $100,000. Its members at City Hall received a 3.75% pay increase last summer and are in line for another 1.75% raise in July and a 5.5% pay hike on Jan. 1, 2014.

As of Friday afternoon, real estate interests and billboard companies had provided one-third of the money collected in support of Proposition A, according to Ethics Commission records. Several donors are waiting for the City Council to approve their projects or have already received permission to use tax revenue to finance their projects.

The single biggest donor has been NFL stadium developer Anschutz Entertainment Group, which has received a series of lucrative deals with City Hall over the last decade. The company was given the right to keep up to $270 million in tax revenue generated by its hotels at the LA Live entertainment complex over 25 years.

AEG is also seeking to run the city's Convention Center.

The company, its top executive and its lawyers have given a combined $126,000 to get the measure passed, according to campaign reports.

david.zahniser@latimes.com

kate.linthicum@latimes.com

Times researcher Maloy Moore contributed to this report.

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England Develops a Voracious Appetite for a New Diet

LONDON — Visitors to England right now, be warned. The big topic on people’s minds — from cabdrivers to corporate executives — is not Kate Middleton’s increasingly visible baby bump (though the craze does involve the size of one’s waistline), but rather a best-selling diet book that has sent the British into a fasting frenzy.

“The Fast Diet,” published in mid-January in Britain, could do the same in the United States if Americans eat it up. The United States edition arrived last week.

The book has held the No. 1 slot on Amazon’s British site nearly every day since its publication in January, according to Rebecca Nicolson, a founder of Short Books, the independent publishing company behind the sensation. “It is selling,” she said, “like hot cakes,” which coincidentally are something one can actually eat on this revolutionary diet.

With an alluring cover line that reads, “Lose Weight, Stay Healthy, Live Longer,” the premise of this latest weight-loss regimen — or “slimming” as the British call “dieting” — is intermittent fasting, or what has become known here as the 5:2 diet: five days of eating and drinking whatever you want, dispersed with two days of fasting.

A typical fasting day consists of two meals of roughly 250 to 300 calories each, depending on the person’s sex (500 calories for women, 600 for men). Think two eggs and a slice of ham for breakfast, and a plate of steamed fish and vegetables for dinner.

It is not much sustenance, but the secret to weight loss, according to the book, is that even after just a few hours of fasting, the body begins to turn off the fat-storing mechanisms and turn on the fat-burning systems.

“I’ve always been into self-experimentation,” said Dr. Michael Mosley, one of the book’s two authors and a well-known medical journalist on the BBC who is often called the Sanjay Gupta of Britain.

He researched the science of the diet and its health benefits by putting himself through intermittent fasting and filming it for a BBC documentary last August called “Eat, Fast and Live Longer.” (The broadcast gained high ratings, three million viewers, despite running during the London Olympics. PBS plans to air it in April.)

“This started because I was not feeling well last year,” Dr. Mosley said recently over a cup of tea and half a cookie (it was not one of his fasting days). “It turns out I was suffering from high blood sugar, high cholesterol and had a kind of visceral fat inside my gut.”

Though hardly obese at the time, at 5 feet 11 inches and 187 pounds, Dr. Mosley, 55, had a body mass index and body fat percentage that were a few points higher than the recommended amount for men. “Given that my father had died at age 73 of complications from diabetes, and I was now looking prediabetic, I knew something had to change,” he added.

The result was a documentary, almost the opposite of “Super Size Me,” in which Dr. Mosley not only fasted, but also interviewed scientific researchers, mostly in the United States, about the positive results of various forms of intermittent fasting, tested primarily on rats but in some cases human volunteers. The prominent benefits, he discovered, were weight loss, a lower risk of cancer and heart disease, and increased energy.

“The body goes into a repair-and-recover mode when it no longer has the work of storing the food being consumed,” he said.

Though Dr. Mosley quickly gave up on the most extreme forms of fasting (he ate little more than one cup of low-calorie soup every 24 hours for four consecutive days in his first trial), he finally settled on the 5:2 ratio as a more sustainable, less painful option that could realistically be followed without annihilating his social life or work.

“Our earliest antecedents,” Dr. Mosley argued, “lived a feast-or-famine existence, gorging themselves after a big hunt and then not eating until they scored the next one.” Similarly, he explained, temporary fasting is a ritual of religions like Islam and Judaism — as demonstrated by Ramadan and Yom Kippur. “We shouldn’t have a fear of hunger if it is just temporary,” he said.

What Dr. Mosley found most astounding, however, were his personal results. Not only did he lose 20 pounds (he currently weighs 168 pounds) in nine weeks, but his glucose and cholesterol levels went down, as did his body fat. “What’s more, I have a whole new level of energy,” he said.

The documentary became an instant hit, which in turn led Mimi Spencer, a food and fashion writer, to propose that they collaborate on a book. “I could see this was not a faddish diet but one that was sustainable with long-term health results, beyond the obvious weight-loss benefit,” said Ms. Spencer, 45, who has lost 20 pounds on the diet within four months and lowered her B.M.I. by 2 points.

The result is a 200-page paperback: the first half written by Dr. Mosley outlining the scientific findings of intermittent fasting; the second by Ms. Spencer, with encouraging text on how to get through the first days of fasting, from keeping busy so you don’t hear your rumbling belly, to waiting 15 minutes for your meal or snack.

She also provides fasting recipes with tantalizing photos like feta niçoise salad and Mexican pizza, and a calorie counter at the back. (Who knew a quarter of a cup of balsamic vinegar dressing added up to a whopping 209 calories?)

In London, the diet has taken off with the help of well-known British celebrity chefs and food writers like Hugh Fearnley-Whittingstall, who raved about it in The Guardian after his sixth day of fasting, having already lost eight pounds. (“I feel lean and sharper,” he wrote, “and find the whole thing rather exhilarating.”)

The diet is also particularly popular among men, according to Dr. Mosley, who has heard from many of his converts via e-mail and Twitter, where he has around 24,000 followers. “They find it easy to work into their schedules because dieting for a day here and there doesn’t feel torturous,” he said, adding that couples also particularly like doing it together.

But not everyone is singing the diet’s praises. The National Health System, Britain’s publicly funded medical establishment, put out a statement on its Web site shortly after the book came out: “Despite its increasing popularity, there is a great deal of uncertainty about I.F. (intermittent fasting) with significant gaps in the evidence.”

The health agency also listed some side effects, including bad breath, anxiety, dehydration and irritability. Yet people in London do not seem too concerned. A slew of fasting diet books have come out in recent weeks, notably the “The 5:2 Diet Book” and “The Feast and Fast Diet.”

There is also a crop of new cookbooks featuring fasting-friendly recipes. Let’s just say, the British are hungry for them.

This article has been revised to reflect the following correction:

Correction: March 2, 2013

An earlier version of this article misstated part of the name of the national healthcare organization in Britain. It is the National Health Service, not the National Health System. The article also misidentified the Balsamic product that has 209 calories per cup. It is Balsamic vinegar dressing, not Balsamic vinegar.

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DealBook: Buffett’s Annual Letter Plays Up Newspapers’ Value

Over the last half-century, Warren E. Buffett has built a reputation as a contrarian investor, betting against the crowd to amass a fortune estimated at $54 billion.

Mr. Buffett underscored that contrarian instinct in his annual letter to shareholders published on Friday. In a year when Mr. Buffett did not make any large acquisitions, he bought dozens of newspapers, a business others have shunned. His company, Berkshire Hathaway, has bought 28 dailies in the last 15 months.

“There is no substitute for a local newspaper that is doing its job,” he wrote.

Those purchases, which cost Mr. Buffett a total of $344 million, are relatively minor deals for Berkshire, and just a small part of the giant conglomerate. Mr. Buffett bemoaned his inability to do a major deal in 2012. “I pursued a couple of elephants, but came up empty-handed,” he said. “Our luck, however, changed earlier this year.”

Mr. Buffett was making a reference to one of his largest-ever deals. Last month, Berkshire, along with a Brazilian investment group, announced a $23.6 billion takeover,of the ketchup maker H. J. Heinz.

Written in accessible prose largely free of financial jargon, Berkshire’s annual letter holds appeal far beyond Wall Street. This year’s dispatch contained plenty of Mr. Buffett’s folksy observations about investing and business that his devotees relish.

“More than 50 years ago, Charlie told me that it was far better to buy a wonderful business at a fair price than to buy a fair business at a wonderful price,” Mr. Buffett wrote, referring to his longtime partner at Berkshire, Charlie Munger.

Mr. Buffett also struck a patriotic tone, directly appealing to his fellow chief executives “that opportunities abound in America.” He noted that the United States gross domestic product, on an inflation-adjusted basis, had more than quadrupled over the last six decades.

“Throughout that period, every tomorrow has been uncertain,” he wrote. “America’s destiny, however, has always been clear: ever-increasing abundance.”

The letter provides more than entertainment value and patriotic stirrings, delivering to Berkshire shareholders an update on the company’s vast collection of businesses. With a market capitalization of $250 billion, Berkshire ranks among the largest companies in the United States.

Its holdings vary, with big companies like the railroad operator Burlington Northern Santa Fe and the electric utility MidAmerican Energy, and smaller ones like the running-shoe outfit Brooks Sports and the chocolatier See’s Candies. All told, Berkshire employs about 288,000 people.

The letter, once again, did not answer a question that has vexed Berkshire shareholders and Buffett-ologists: Who will succeed Mr. Buffett, who is 82, as chief executive?

Last year, he acknowledged that he had chosen a successor, but he did not name the candidate.

He has said that upon his death, Berkshire will split his job in three, naming a chief executive, a nonexecutive chairman and several investment managers of its publicly traded holdings.

In 2010, he said that his son, Howard Buffett, would succeed him as nonexecutive chairman.

Berkshire’s share price recently traded at a record high, surpassing its prefinancial crisis peak reached in 2007 and rising about 22 percent over the last year.

The company reported net income last year of about $14.8 billion, up about 45 percent from 2011. Yet the company’s book value, or net worth — Mr. Buffett’s preferred performance measure — lagged the broader stock market, increasing 14.4 percent, compared with the market’s 16 percent return.

Mr. Buffett lamented that 2012 was only the ninth time in 48 years that Berkshire’s book value increase was less than the gain of the Standard & Poor’s 500-stock index. But he pointed out that in eight of those nine years, the S.& P. had a gain of 15 percent or more, suggesting that Berkshire proved to be a most valuable investment during bad market periods.

“We do better when the wind is in our face,” he wrote.

For Berkshire’s largest collection of assets, its insurance operations, the wind has been at its back. We “shot the lights out last year” in insurance, Mr. Buffett said.

He lavished praise on the auto insurer Geico, giving a special shout-out to the company’s mascot, the Gecko lizard.

Investors also keep a keen eye on changes in Berkshire’s roughly $87 billion stock portfolio. Its holdings include large positions in iconic companies like International Business Machines, Coca-Cola, American Express and Wells Fargo. He said Berkshire’s investment in each of those was likely to increase in the future.

“Mae West had it right: ‘Too much of a good thing can be wonderful,’ ” Mr. Buffett wrote.

He also complimented two relatively new hires, Todd Combs and Ted Weschler, who now each manage about $5 billion in stock portfolios for Berkshire. Both men ran unheralded, modest-size money management firms before Mr. Buffett plucked them out of obscurity and moved them to Omaha to work for him.

He called the men “a perfect cultural fit” and indicated that the two would manage Berkshire’s entire stock portfolio once he steps aside. “We hit the jackpot with these two,” Mr. Buffett said, noting that last year, each outperformed the S.& P. by double-digit margins.

Then, sheepishly, employing supertiny type, he wrote: “They left me in the dust as well.”

A former paperboy and member of the Newspaper Association of America’s carrier hall of fame, Mr. Buffett devoted nearly three out of 24 pages of his annual report to newspapers.

While Mr. Buffett has been a longtime owner of The Buffalo News and a stakeholder in The Washington Post Company, he told shareholders four years ago that he wouldn’t buy a newspaper at any price.

But his latest note reflects how much his opinion has turned. His buying spree started in November 2011, when he struck a deal to buy The Omaha World-Herald Company, this hometown paper, for a reported $200 million. By May 2012, he bought out the chain of newspapers owned by Media General, except for The Tampa Tribune. In recent months, he continued to express his interest in buying more papers “at appropriate prices — and that means a very low multiple of current earnings.”

“Papers delivering comprehensive and reliable information to tightly bound communities and having a sensible Internet strategy will remain viable for a long time,” wrote Mr. Buffett.

Mr. Buffett said in a telephone interview last month that he would consider buying The Morning Call of Allentown, Pa., a paper that the Tribune Company is considering selling. But Mr. Buffett said he had not contacted Tribune executives.

“It’s solely a question of the specifics of it and the price,” he said about the Allentown paper. “But it’s similar to the kinds of communities that we bought papers in.”

Mr. Buffett has plenty of cash to make more newspaper acquisitions. To cover his portion of the Heinz purchase, Mr. Buffett will deploy about $12 billion of Berkshire’s $42 billion cash hoard. That leaves a lot of money for Mr. Buffett to continue his shopping spree for newspapers — and more major deals like Heinz.

“Charlie and I have again donned our safari outfits,” Mr. Buffett wrote, “and resumed our search for elephants.”

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Bell jurors ordered to begin anew after panelist is dismissed

After nearly five days of deliberations, jurors in the Bell corruption trial were ordered Thursday to begin anew after a member of the panel was dismissed for misconduct and replaced by an alternate.

The original juror, a white-haired woman identified only as Juror No. 3, told Los Angeles County Superior Court Judge Kathleen Kennedy she had gone onto a legal website to look up jury instructions and then asked her daughter to help find a definition for the word "coercion."

Although all but one defense attorney requested that the woman stay, Kennedy said the juror needed to be removed. "She has spoken about the deliberations with her daughter, she has conducted research on the Internet, and I've repeatedly, repeatedly throughout this trial — probably hundreds of times — cautioned the jury not to do that," the judge said.

The removal came after jurors notified the judge that they were deadlocked and that continued deliberations seemed fruitless.

It was unclear how to interpret the day's events, whether the dismissed juror had been a lone holdout or an indication of a fractured jury.

The juror started to tell the judge which way she was leaning in the case, saying she had gone online "looking to see at what point can I get the harassment to stop.... How long do I have to stay in there and deliberate with them when I have made my decision that I didn't think there was —"

Kennedy cut her off before she could finish.

The woman clasped her hands over her mouth and said, "I'm sorry."

Two defense attorneys thought she was leaning toward acquittal and wanted her to stay. "I would have preferred the deadlock to a guilty verdict," said Alex Kessel, the attorney for George Mirabal, one of six former council members charged with misappropriation of public funds.

The council members are charged with inflating their salaries in what prosecutors contend was a far-reaching web of corruption in which fat paychecks were placed ahead of the needs of the city's largely immigrant, working-poor constituents.

When attorneys and defendants were summoned to the courtroom Thursday morning, they were initially told that the jury appeared to be deadlocked.

"Your honor, we have reached a point where as a jury we have fundamental disagreements and cannot reach a unanimous verdict in this case," read a note signed by two jurors, including the foreman, that was given to Kennedy.

A note from another juror alerted the judge that Juror No. 3 had consulted an outside attorney. That did not appear to be the case, but her other actions were revealed under questioning from the judge.

The same juror made a tearful request Monday to be removed from the panel because she felt others were picking on her. Kennedy told the woman that although discussions can get heated, it was important to continue deliberating.

On Thursday, however, the juror again broke into tears and said she had spoken with her daughter about "the abuse I have suffered." She said her daughter told her, "Mom, they're trying to find the weak link."

The woman said she had turned to the Internet to better understand the rules about jury deliberations and came across the word "coercion." After her daughter helped her look up the word's definition, she wrote it down on a piece of paper and brought it with her to court. When the judge asked to see the paper she went into the jury room to retrieve it.

The woman later left the courtroom in tears.

With an alternate in place, Kennedy told the panel to act as if the earlier deliberations had not taken place. The alternate had sat in the jury box during the four-week trial but did not take part in deliberations.

Former council members Luis Artiga, Victor Bello, George Cole, Oscar Hernandez, Teresa Jacobo and Mirabal are accused of drawing annual salaries of as much as $100,000 a year by serving on boards that did little work and seldom met, part of a scandal that drew national attention to the small city in 2010.

Prosecutors said that Bell's charter follows state law regarding council members' compensation. In a city the size of Bell, council members should be paid no more than $8,076 a year.

The trial began in late January, and the case went to the jury last Friday.

As the jury resumed deliberations in downtown Los Angeles, the verdict was clearly in on the streets of Bell.

One resident unfurled old protest banners and signs from the days when the pay scandal was first exposed and then called former members of an activist group that had led the charge for reform in the city.

"We're holding our breaths and waiting," Denise Rodarte, a member of the grassroots group Bell Assn. to Stop the Abuse, said in regard to a verdict.

"It's cut and dry: Local elected officials were supposed to make a certain amount of money, and they made a lot more."

corina.knoll@latimes.com

jeff.gottlieb@latimes.com

Times staff writer Ruben Vives contributed to this report.

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Well: A Rainbow of Root Vegetables

This week’s Recipes for Health is as much a treat for the eyes as the palate. Colorful root vegetables from bright orange carrots and red scallions to purple and yellow potatoes and pale green leeks will add color and flavor to your table.

Since root vegetables and tubers keep well and can be cooked up into something delicious even after they have begun to go limp in the refrigerator, this week’s Recipes for Health should be useful. Root vegetables, tubers (potatoes and sweet potatoes, which are called yams by most vendors – I mean the ones with dark orange flesh), winter squash and cabbages are the only local vegetables available during the winter months in colder regions, so these recipes will be timely for many readers.

Roasting is a good place to begin with most root vegetables. They sweeten as they caramelize in a hot oven. I roasted baby carrots and thick red scallions (they may have been baby onions; I didn’t get the information from the farmer, I just bought them because they were lush and pretty) together and seasoned them with fresh thyme leaves, then sprinkled them with chopped toasted hazelnuts. I also roasted a medley of potatoes, including sweet potatoes, after tossing them with olive oil and sage, and got a wonderful range of colors, textures and tastes ranging from sweet to savory.

Sweet winter vegetables also pair well with spicy seasonings. I like to combine sweet potatoes and chipotle peppers, and this time in a hearty lentil stew that we enjoyed all week.

Here are five colorful and delicious dishes made with root vegetables.

Spicy Lentil and Sweet Potato Stew With Chipotles: The combination of sweet potatoes and spicy chipotles with savory lentils is a winner.

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Roasted Carrots and Scallions With Thyme and Hazelnuts: Toasted hazelnuts add a crunchy texture and nutty finish to this dish.

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Carrot Wraps: A vegetarian sandwich that satisfies like a full meal.

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Rainbow Potato Roast: A multicolored mix that can be vegan, or not.

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Leek Quiche: A lighter version of a Flemish classic.

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A Volatile Week Ends With Modest Gains

Stocks advanced modestly on Friday, leaving the Standard & Poor’s 500-stock index with slight gains after a volatile week, as strong economic data overshadowed growth concerns in China and Europe and let investors discount the impact of federal spending cuts.

Data reported early in the day showed that Asian factories were slowing and European output was falling, setting off a sharp drop at the beginning of trading in New York. But most of the losses evaporated after a report showed that United States manufacturing activity had expanded in February at the fastest pace in 20 months. Consumer sentiment also rose in February as Americans turned more optimistic about the job market.

As $85 billion in government budget cuts took effect on Friday, President Obama blamed Republicans for the lack of a compromise to avert the so-called sequester. But the stock market appeared to have already priced in legislators’ failure to reach an agreement.

“We were able to dig out of that hole, but not make any great strides on it either,” said Peter M. Jankovskis, co-chief investment officer at OakBrook Investments in Lisle, Ill. “We will probably be in a holding pattern pending some big development on a broader budget deal.”

The Dow Jones industrial average gained 35.17 points, or 0.25 percent, to 14,089.66. The S.& P. 500 rose 3.52 points, or 0.23 percent, to 1,518.20. The Nasdaq composite index advanced 9.55 points, or 0.3 percent, to 3,169.74.

For the week, the Dow rose 0.64 percent, the S.& P. 500 edged up 0.17 percent and the Nasdaq gained 0.25 percent.

It was a bumpy road to the week’s slight gains. The markets slid on Monday after inconclusive elections in Italy revived concerns about the euro zone, only to rebound in the next two sessions after the Federal Reserve chairman, Ben S. Bernanke, defended the central bank’s stimulus measures.

The low interest rates from the Federal Reserve’s monetary policy have helped equities continue to attract investors. The Dow is less than 1 percent away from its nominal intraday record of 14,198.10. Declines have been shallow and short-lived, with investors jumping in to buy when the market dips.

Advancing stocks outnumbered declining ones on the New York Stock Exchange by a ratio of about 17 to 13, while on the Nasdaq, about seven stocks rose for every five that fell.

Shares of Intuitive Surgical jumped 8.5 percent on Friday, to $553.40, after a Cantor Fitzgerald analyst, Jeremy Feffer, upgraded the stock, saying a slide of more than 11 percent on Thursday had been a gross overreaction to a news report.

Groupon shares surged 12.6 percent, to $5.10, a day after the company fired its chief executive in response to weak quarterly results.

Gap stock rose 2.9 percent, to $33.87, after the company reported fourth-quarter earnings that beat expectations and raised its dividend by 20 percent. Salesforce.com posted sales that beat forecasts, driving its stock up 7.6 percent, to $182.

Chesapeake Energy shares fell 2.4 percent, to $19.67, after the Securities and Exchange Commission escalated its investigation of the company and its chief executive, Aubrey McClendon, over a perk that granted him a share in each of the natural gas producer’s wells.

The benchmark 10-year Treasury note rose 10/32, to 101 13/32, and its yield fell to 1.85 percent from 1.88 percent late on Thursday.

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Jury in Bell corruption trial may be deadlocked

A court spokeswoman said Thursday the jury in the Bell corruption case appears to be deadlocked.

“The jurors may be at an impasse,” said Patricia Kelly, a spokeswoman for L.A. County Superior Court.

Jurors sent a note to the judge Thursday morning, and all the attorneys in the case were called in.

Six former Bell City Council members are accused of stealing public money by paying themselves extraordinary salaries in one of Los Angeles County’s poorest cities.

Luis Artiga, Victor Bello, George Cole, Oscar Hernandez, Teresa Jacobo and George Mirabal are accused of misappropriation of public funds, felony counts that could bring prison terms.

They were arrested in September 2010 and have been free on bail.

The nearly $100,000 salaries drawn by most of the former elected officials are part of a much larger municipal corruption case in the southeast Los Angeles County city in which prosecutors allege that money from the city’s modest general fund flowed freely to top officials.

The three defendants who testified painted a picture of a city as a place led by a controlling, manipulative administrator who handed out enormous salaries, loaned city money and padded future pensions. Robert Rizzo, the former adminstrator, and ex-assistant city manager Angela Spaccia are also awaiting trial.

The four-week trial of the former council members turned on extremes.

Deputy Dist. Atty. Edward Miller said the council members were little more than common thieves who were consumed with fattening their paychecks at the expense of the city’s largely immigrant, working-poor residents.

Miller said the accused represented the “one-percenters" of Bell who had “apparently forgotten who they are and where they live."

Defense attorneys said the former city leaders -- one a pastor, another a mom-and-pop grocery store owner, another a funeral director -- were dedicated public servants who put in long hours and tirelessly responded to the needs of their constituents.

Jacobo testified that Rizzo informed her she could quit her job as a real estate agent and receive a full-time salary as a council member. She said she asked City Attorney Edward Lee if that was possible and he nodded his head.

"I thought I was doing a very good job to be able to earn that, yes," Jacobo said.

Cole said Rizzo was so intimidating that the former councilman voted for a 12% annual pay raise out of fear the city programs he established would be gutted by Rizzo in retaliation if he opposed the pay hikes.

The defense argued that the prosecution failed to prove criminal negligence -- that their clients knew what they were doing was wrong or that a reasonable person would know it was wrong.

The attorney for Hernandez, the city’s mayor at the time of the arrests, said his client had only a grade-school education, was known more for his heart than his intellect and was, perhaps, not overly “scholarly.”

Prosecutors argued that the council members pushed up their salaries by serving on city boards that rarely met and, in one case, existed only as a means for paying them even more money.

Jurors were also left to deal with the question of whether council members were protected by a City Charter that was approved in a special election that drew fewer than 400 voters.

Defense attorneys say the charter allowed council members to be paid for serving on the authorities.

But the prosecutor argued that the charter -- a quasi-constitution for a city -- set salaries at what councils in similar-sized cities were receiving under state law: $8,076 a year. Because council members automatically serve on boards and commissions, the district attorney said the total compensation for all of each council member's work was included in that figure.

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Doctor and Patient: Why Failing Med Students Don’t Get Failing Grades

Tall and dark-haired, the third-year medical student always seemed to be the first to arrive at the hospital and the last to leave, her white coat perpetually weighed down by the books and notes she jammed into the pockets. She appeared totally absorbed by her work, even exhausted at times, and said little to anyone around her.

Except when she got frustrated.

I first noticed her when I overheard her quarreling with a nurse. A few months later I heard her accuse another student of sabotaging her work. And then one morning, I saw her storm off the wards after a senior doctor corrected a presentation she had just given. “The patient never told me that!” she cried. The nurses and I stood agape as we watched her stamp her foot and walk away.

“Why don’t you just fail her?” one of the nurses asked the doctor.

“I can’t,” she sighed, explaining that the student did extremely well on all her tests and worked harder than almost anyone in her class. “The problem,” she said, “is that we have no multiple choice exams when it comes to things like clinical intuition, communication skills and bedside manner.”

Medical educators have long understood that good doctoring, like ducks, elephants and obscenity, is easy to recognize but difficult to quantify. And nowhere is the need to catalog those qualities more explicit, and charged, than in the third year of medical school, when students leave the lecture halls and begin to work with patients and other clinicians in specialty-based courses referred to as “clerkships.” In these clerkships, students are evaluated by senior doctors and ranked on their nascent doctoring skills, with the highest-ranking students going on to the most competitive training programs and jobs.

A student’s performance at this early stage, the traditional thinking went, would be predictive of how good a doctor she or he would eventually become.

But in the mid-1990s, a group of researchers decided to examine grading criteria and asked directors of internal medicine clerkship courses across the country how accurate and consistent they believed their grading to be. Nearly half of the course directors believed that some form of grade inflation existed, even within their own courses. Many said they had increasing difficulty distinguishing students who could not achieve a “minimum standard,” whatever that might be. And over 40 percent admitted they had passed students who should have failed their course.

The study inspired a series of reforms aimed at improving how medical educators evaluated students at this critical juncture in their education. Some schools began instituting nifty mnemonics like RIME, or Reporter-Interpreter-Manager-Educator, for assessing progressive levels of student performance; others began to call regular meetings to discuss grades; still others compiled detailed evaluation forms that left little to the subjective imagination.

Now a new study published last month in the journal Teaching and Learning in Medicine looks at the effects of these many efforts on the grading process. And while the good news is that the rate of grade inflation in medical schools is slower than in colleges and universities, the not-so-good news is that little has changed. A majority of clerkship directors still believe that grade inflation is an issue even within their own courses; and over a third believe that students have passed their course who probably should have failed.

“Grades don’t have a lot of meaning,” said Dr. Sara B. Fazio, lead author of the paper and an associate professor of medicine at Harvard Medical School who leads the internal medicine clerkship at the Beth Israel Deaconess Medical Center in Boston. “‘Satisfactory’ is like the kiss of death.”

About a quarter of the course directors surveyed believed that grade inflation occurred because senior doctors were loath to deal with students who could become angry, upset or even turn litigious over grades. Some confessed to feeling pressure to help students get into more selective internships and training programs.

But for many of these educators, the real issue was not flunking the flagrantly unprofessional student, but rather evaluating and helping the student who only needed a little extra help in transitioning from classroom problem sets to real world patients. Most faculty received little or no training or support in evaluating students, few came from institutions that had remediation programs to which they could direct students, and all worked under grading systems that were subjective and not standardized.

Despite the disheartening findings, Dr. Fazio and her co-investigators believe that several continuing initiatives may address the evaluation issues. For example, residency training programs across the country will soon be assessing all doctors-in-training with a national standards list, a series of defined skills, or “competencies,” in areas like interpersonal communication, professional behavior and specialty-specific procedures. Over the next few years, medical schools will likely be adopting a similar system for medical students, creating a national standard for all institutions.

“There have to be unified, transparent and objective criteria,” Dr. Fazio said. “Everyone should know what it means when we talk about educating and training ‘good doctors.’”

“We will all be patients one day,” she added. “We have to think about what kind of doctors we want to have now and in the future.”

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Advertising: A Shared History in Detroit Is an Ad Inspiration

THE Chrysler Group is bringing to life the advertising theme for its Chrysler brand, “Imported from Detroit,” through an innovative partnership with a coming Broadway show that bears the Detroit-inspired name of one of the most famous brands in music.

The partnership unites Chrysler and “Motown: the Musical,” about the musical legacy of Berry Gordy and Motown, the record label he founded that is now owned by the Universal Music Group. The musical, scheduled to open on April 14 at the Lunt-Fontanne Theater, is the beneficiary of an elaborate promotional initiative by the Chrysler brand that supplements the show’s own efforts to encourage ticket sales.

The centerpiece of the Chrysler brand’s support is a television commercial that has been running nationally since December, featuring Mr. Gordy riding in a Motown Edition of a Chrysler 300C sedan as the seminal Motown song “Ain’t No Mountain High Enough” plays on the soundtrack.

The commercial, created by a Chrysler Group agency, GlobalHue in Southfield, Mich., begins with Mr. Gordy at the original “Hitsville U.S.A.” Motown headquarters building in Detroit and ends with him arriving at the Lunt-Fontanne and declaring: “We are Motown. And this is what we do.” As Mr. Gordy enters the theater, the Chrysler slogan appears, altered to read “Imported from Motown.”

The words “ ‘Motown: the Musical’ on Broadway March 2013” appear, referring to the start of previews on March 11, and the address of the show’s Web site, motownthemusical.com, along with the Chrysler brand Web address, chrysler.com.

The commercial is believed to be the first time that a Broadway show has had such paid national television exposure as it prepares to open in New York. The commercial is in addition to a commercial that the producers of “Motown: the Musical” are running on stations in the New York market; the local commercial was created by SpotCo in New York, part of Reach4entertainment Enterprises.

The Chrysler brand will also buttress the show’s marketing with colorful signs to go up in coming days in Penn Station and Times Square. The signs display a Chrysler 300 Motown Edition, the Chrysler logo, the logo of “Motown: the Musical” and photographs of cast members of the show like Brandon Victor Dixon, who portrays Mr. Gordy.

The Chrysler Group is spending an estimated $6 million to $8 million to promote “Motown: the Musical.” The budget for the ads from the show’s producers, Mr. Gordy, Kevin McCollum and Doug Morris, is estimated at $2 million.

The automaker’s efforts extend beyond the product placement and sponsorship agreements that have become increasingly prevalent on Broadway as theater enters the realm of so-called entertainment marketing with television, movies and video games. Unlike the provisions of many of those deals, the Chrysler name is not being added to a lyric of a Motown song, nor are there plans to park a car in the lobby of the Lunt-Fontanne.

Rather, the partnership is about “merging both journeys, the journey of the Chrysler brand and the journey of Mr. Gordy and his music,” said Olivier François, chief marketing officer at the Chrysler Group.

“Motown is the most exported from Detroit of any music and, in this case, imported to New York,” Mr. François said. “It’s putting together the sound and the drive of Detroit. We were meant to meet.”

That thought is expressed in the national commercial, in which a narrator proclaims, “Because if cars are our city’s heart, music is its soul.”

That the partnership is centered on music is no coincidence. Mr. François, a producer of pop music in his native France in the 1980s, described the Motown catalog as “part of the American patrimony” that “will live forever.”

“And so is Chrysler,” he said hopefully. “Regardless of my passion for the Motown music and my respect for Mr. Gordy, I would not have pushed to tie a brand to Motown if there wasn’t this new Chrysler story,” Mr. François said, referring to “Imported from Detroit,” which was introduced in 2011 with a Super Bowl commercial featuring another famous Detroit music figure, Eminem.

“The Motown name has a huge value,” he added. “Does it have a huge value for any car? Maybe not.”

Mr. McCollum, whose Broadway credits include “Avenue Q” and “Rent,” invoked another musical to explain how the show and the Chrysler Group came together: “Kismet.”

“About a year ago, we flew to Detroit and sat down with Olivier and his team, and they pitched the idea,” Mr. McCollum said. “It’s about a collaboration between these two great American industries that came out of one place.”

Besides, he added, Mr. Gordy was “highly influenced by his early days working in an auto plant, learning that you have to put something out there people want.”

Mr. McCollum said he was glad to join Mr. François and Mr. Gordy in “celebrating Detroit when you’d think it’s contrarian thinking” to do so because Motown, Chrysler and “Motown: the Musical” are all about “the power of the American dream.”

The SpotCo campaign for the show — and a public relations effort by Boneau/Bryan-Brown in New York — play that up. The local commercial, for instance, extols Motown’s songs as “the soundtrack that changed America, the beat of a generation, the soul of a nation.”

The goal is “less transactional,” said Ilene Rosen, associate chief operating officer at SpotCo, and “more about synergizing the Motown and Chrysler brands to elevate both.”

As much as other Broadway producers would probably welcome a deep-pocketed partner like the Chrysler Group, the unique circumstances that produced the partnership may make it difficult to emulate, she added.

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Race for L.A. city controller heats up

A previously low-profile race for Los Angeles city controller has begun to heat up as opponents of City Councilman Dennis Zine accuse him of "double dipping" the city's payroll and question why he is considering lucrative tax breaks for a Warner Center developer.

Zine, who for 12 years has represented a district in the southeast San Fernando Valley, is the better known of the major candidates competing to replace outgoing Controller Wendy Greuel.

The others are Cary Brazeman, a marketing executive, and lawyer Ron Galperin. Zine has raised $766,000 for his campaign, more than double that of Galperin, the next-highest fundraiser, and has the backing of several of the city's powerful labor unions.

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He also has been endorsed by Mayor Antonio Villaraigosa and several of his council colleagues. Galperin is backed by the Service Employees International Union, one the city's largest labor groups, and Brazeman is supported by retired Rep. Diane Watson and several neighborhood council representatives.

With the primary ballot less than a week away, Brazeman and Galperin have turned up the heat on Zine, hoping to push the race beyond the March 5 vote. If no one wins more than 50% of the ballots cast, the top two vote-getters will face a runoff in the May general election.

In a recent debate, Zine's opponents criticized him for receiving a $100,000 annual pension for his 33 years with the Los Angeles Police Department and a nearly $180,000 council salary. Brazeman and Galperin called it an example of "double dipping" that should be eliminated.

That brought a forceful response from Zine, who shot back that he gives a big portion of his police pension check to charities.

"I am so tired of hearing 'double dipping,' " he said. "I worked 33 years on the streets of Los Angeles. I have given over $300,000 to nonprofits that need it.... That's what's happened with that pension."

In the same debate, Brazeman accused Zine of cozying up to a Warner Center developer by pushing for tax breaks on a project that already has been approved. The nearly 30-acre Village at Westfield Topanga project would add 1 million square feet of new shops, restaurants, office space and a hotel to a faded commercial district on Topanga Canyon Boulevard.

"The councilman proposed to give developers at Warner Center tens of millions of dollars in tax breaks even though it's a highly successful project," he said. "He wants to give it away."

City records show that less than a month after the development was approved in February 2012, Zine asked the council for a study looking at possible "economic development incentives" that could be given to Westfield in return for speeding up street and landscaping enhancements to the project's exterior.

The motion's language notes that similar tax breaks have been awarded to large projects in the Hollywood and downtown areas, and that "similar public investment in the Valley has been lacking." Westfield is paying for the $200,000 study.

Zine defended his decision before the debate audience, saying if the study finds that the city will not benefit, no tax breaks will be awarded. "If there's nothing there, then they get nothing," Zine said.

The controller serves as a public watchdog over the city's $7.3-billion annual operation, auditing the general fund, 500 special fund accounts and the performance of city departments. Those audits often produce recommendations for reducing waste, fraud and abuse.

But the mayor and the council are not obligated to adopt those recommendations, and as a result the job is part accountant, part scolder in chief. All the candidates say they will use their elective position not only to perform audits but also to turn them into action.

Their challenge during the campaign has been explaining how they will do that.

Zine, 65, says his City Hall experience has taught him how to get things done by working with his colleagues. He won't be afraid to publicly criticize department managers, he said, but thinks collaboration works better than being combative.

"You can rant and rave and people won't work with you," he said. "Or you can sit down and talk it out, and you can accomplish things."

Galperin, 49, considers himself a policy wonk who relishes digging into the details to come up with ways to become more efficient with limited dollars and to find ways to raise revenue using the city's sprawling assets. For instance, the city owns two asphalt plants that could expand production and sell some of its material to raise money to fix potholes, he said.

He's served on two city commissions, including one that found millions of dollars in savings by detailing ways to be more efficient. Zine is positioning himself as a "tough guy for tough times," but the controller should be more than that, Galperin said.

"What we really need is some thoughtfulness and some smarts and some effectiveness," he said. "Just getting up there and saying we need to be tough is not going to accomplish what needs to be done."

Brazeman, 46, started his own marketing and public relations firm in West Los Angeles a decade ago and became active in city politics over his discontent with a development project near his home. He has pushed the council to change several initiatives over the last five years, including changes to the financing of the Farmers Field stadium proposal that will save taxpayer dollars, he said.

As controller, he would pick and choose his battles, and, Brazeman said, be "the right combination of constructive, abrasive and assertive."

catherine.saillant@latimes.com

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Global Health: After Measles Success, Rwanda to Get Rubella Vaccine

Rwanda has been so successful at fighting measles that next month it will be the first country to get donor support to move to the next stage — fighting rubella too.

On March 11, it will hold a nationwide three-day vaccination campaign with a combined measles-rubella vaccine, hoping to reach nearly five million children up to age 14. It will then integrate the dual vaccine into its national health service.

Rwanda can do so “because they’ve done such a good job on measles,” said Christine McNab, a spokeswoman for the Measles and Rubella Initiative. M.R.I. helped pay for previous vaccination campaigns in the country and the GAVI Alliance is helping to finance the upcoming one.

Rubella, also called German measles, causes a rash that is very similar to the measles rash, making it hard for health workers to tell the difference.

Rubella is generally mild, even in children, but in pregnant women, it can kill the fetus or cause serious birth defects, including blindness, deafness, mental retardation and chronic heart damage.

Ms. McNab said that Rwanda had proved that it can suppress measles and identify rubella, and it would benefit from the newer, more expensive vaccine.

The dual vaccine costs twice as much — 52 cents a dose at Unicef prices, compared with 24 cents for measles alone. (The MMR vaccine that American children get, which also contains a vaccine against mumps, costs Unicef $1.)

More than 90 percent of Rwandan children now are vaccinated twice against measles, and cases have been near zero since 2007.

The tiny country, which was convulsed by Hutu-Tutsi genocide in 1994, is now leading the way in Africa in delivering medical care to its citizens, Ms. McNab said. Three years ago, it was the first African country to introduce shots against human papilloma virus, or HPV, which causes cervical cancer.

In wealthy countries, measles kills a small number of children — usually those whose parents decline vaccination. But in poor countries, measles is a major killer of malnourished infants. Around the world, the initiative estimates, about 158,000 children die of it each year, or about 430 a day.

Every year, an estimated 112,000 children, mostly in Africa, South Asia and the Pacific islands, are born with handicaps caused by their mothers’ rubella infection.

Thanks in part to the initiative — which until last year was known just as the Measles Initiative — measles deaths among children have declined 71 percent since 2000. The initiative is a partnership of many health agencies, vaccine companies, donors and others, but is led by the American Red Cross, the United Nations Foundation, the Centers for Disease Control and Prevention, Unicef and the World Health Organization.

This article has been revised to reflect the following correction:

Correction: February 27, 2013

An earlier version of this article misstated the source of the vaccine and some financing for the campaign. The vaccine and financing is being provided by the GAVI Alliance, not the Measles and Rubella Initiative.

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Groupon Shares Crumple After Dismal Outlook, Take-Rate Cut

SAN FRANCISCO (Reuters) - Groupon Inc lost a quarter of its market value on Wednesday after the company revealed it began to take a smaller cut of revenue on daily deals during the holidays, sacrificing revenue and profits to attract and keep merchants.

The cut in its "take rate", which some analysts had said was needed to revive flagging interest among merchants in its Internet offers, was a blow to fourth-quarter results. And a sharper-than-expected post-holiday slowdown in its new e-commerce business contributed to a disappointing first-quarter sales forecast.

The stream of bad numbers, which included a surprise loss in the fourth quarter, drove Groupon's stock down 26 percent to $4.43 in after hours trade. Overall, the company has shed more than three-quarters of its value since debuting at $20 in November of 2011.

"This raises questions about how these guys are going to be able to scale the business," said Tom White, an analyst at Macquarie. "The forecast is underwhelming."

Groupon is among a group of consumer-focused Internet startups that went public to much fanfare in 2011 - before losing massive chunks of market value as investors realized they had over-rated their prospects.

Within a year, Groupon had run into problems dealing with European merchants and sustaining interest among users as deals fever receded. In 2012, analysts speculated that Chief Executive Andrew Mason, known for a quirky sense of humor, may have fallen out of favor with the board.

A company spokesman said Mason remained in charge and the CEO addressed analysts on Wednesday's post-results call.

Groupon reported fourth-quarter revenue rose 30 percent to $638.3 million from $492.2 million in the year-ago period. But it slid into the red with a 1 cent per share loss excluding items, versus expectations for a slim profit of 3 cents a share.

It forecast first-quarter revenue of $560 million to $610 million, sharply below the $650 million average estimate of analysts polled by Thomson Reuters I/B/E/S.

Chief Financial Officer Jason Child told Reuters that Groupon began sharing more money from its deals with merchants early in the fourth quarter, to persuade them to come onboard and run an offer for the first time, or work on another.

This was done selectively in the United States and in Europe, he added.

Historically, Groupon has kept about 40 percent of the money generated by daily deals. That declined to about 35 percent in the fourth quarter. Groupon then "fine tuned" take rates later in the quarter and Child said the company expects profitability to improve as a result.

"We are focused on driving growth," he said in an interview. "We will make the investments we feel we need to optimize for growth and merchant profitability."

THE GOODS ON EUROPE

Merchants have complained that Groupon takes too large a cut of online offers.

Groupon executives forecast long-term take rates of 30 percent to 40 percent for the daily deals business, during a conference call with analysts. One of the reasons Groupon reduced take rates was to create more daily deals for a new business called Local Marketplace, which launched in November.

Groupon has mostly focused on sending daily emails to customers offering vouchers for activities in their area. Local Marketplace relies instead on people searching for something to do or buy nearby, such as an oil change or a massage. By the end of the third quarter, before the launch, Groupon had amassed an online store of more than 27,000 deals for the new marketplace.

Analysts have said the move has potential because Groupon's deals may be more likely to show up in Google searches. By the end of 2012, Groupon claimed almost 37,000 active deals running in North America, and many were longer-term offers for Local Marketplace.

For now, Groupon Goods, the company's discounted product sales business, generated a lot of the fourth-quarter revenue growth, though it's seasonally volatile and generates lower margins than daily deals.

Groupon's limp outlook revived fears its business model may be in jeopardy. Chief among their concerns have been intensifying competition in e-commerce, and a struggling European division walloped by the recession there.

Executives warned a turnaround effort there would take time, and signaled that cost cuts are coming for the company's International business.

Groupon is trying to fix it by reducing the size of discounts on deals there and testing faster payments to higher-quality merchants. Technology used to automate its U.S. operations and sales efforts is being rolled out in Europe now.

Kal Raman, chief operating officer, said more than the twice the number of people are needed to handle and process an International division deal, than in the United States.

A Groupon spokesman said there are no "definite" plans for International job cuts, but there were staff reductions in the United States when the company automated.

"That is an enormous opportunity to organize Groupon's operations to be both more efficient," Raman told analysts during the conference call.

(Reporting by Alistair Barr; Editing by David Gregorio, Richard Chang and Tim Dobbyn)

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Tribune Co. hires advisors to explore sale of newspaper unit

Tribune Co. has hired investment bankers to advise the media company on the potential sale of its newspaper publishing unit.

The company announced that it has retained JPMorgan Chase & Co. and Evercore Partners to assess whether to sell the division that includes the Los Angeles Times, Chicago Tribune and six other daily newspapers.

The bankers will analyze bids from suitors, but their hiring does not necessarily mean that the assets would be sold.

"There is a lot of interest in our newspapers, which we haven't solicited," Gary Weitman, a Tribune spokesman, said in a statement. "Hiring outside financial advisors will help us determine whether that interest is credible, allow us to consider all of our options, and fulfill our fiduciary responsibility to our shareholders and employees."

Tribune hopes to sell the newspaper group intact instead of selling each paper individually, according to a person familiar with the matter.

The Chicago company has a healthy balance sheet and doesn't feel financial pressure to sell the properties, according to the person. It's unclear how long the process could take.

There has been widespread speculation that Tribune would attempt to unload the newspaper business to focus on its more promising television operations. Rupert Murdoch's News Corp. is among the possible bidders for the newspaper assets.

Tribune emerged from its four-year bankruptcy at the end of 2012 and appointed broadcasting veteran Peter Liguori as chief executive in January.

JPMorgan Chase holds an ownership stake in Tribune.

Evercore Partners, a boutique investment bank, also is working for the parent company of the New York Times on its planned divestiture of the Boston Globe.

walter.hamilton@latimes.com

andrew.tangel@latimes.com

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Advanced Breast Cancer May Be Rising Among Young Women, Study Finds

The incidence of advanced breast cancer among younger women, ages 25 to 39, may have increased slightly over the last three decades, according to a study released Tuesday.

But more research is needed to verify the finding, which was based on an analysis of statistics, the study’s authors said. They do not know what may have caused the apparent increase.

Some outside experts questioned whether the increase was real, and expressed concerns that the report would frighten women needlessly.

The study, published in The Journal of the American Medical Association, found that advanced cases climbed to 2.9 per 100,000 younger women in 2009, from 1.53 per 100,000 women in 1976 — an increase of 1.37 cases per 100,000 women in 34 years. The totals were about 250 such cases per year in the mid-1970s, and more than 800 per year in 2009.

Though small, the increase was statistically significant, and the researchers said it was worrisome because it involved cancer that had already spread to organs like the liver or lungs by the time it was diagnosed, which greatly diminishes the odds of survival.

For now, the only advice the researchers can offer to young women is to see a doctor quickly if they notice lumps, pain or other changes in the breast, and not to assume that they cannot have breast cancer because they are young and healthy, or have no family history of the disease.

“Breast cancer can and does occur in younger women,” said Dr. Rebecca H. Johnson, the first author of the study and medical director of the adolescent and young adult oncology program at Seattle Children’s Hospital.

But Dr. Johnson noted that there is no evidence that screening helps younger women who have an average risk for the disease and no symptoms. “We’re certainly not advocating that young women get mammography at an earlier age than is generally specified,” she said.

Expert groups differ about when screening should begin; some say at age 40, others 50.

Breast cancer is not common in younger women; only 1.8 percent of all cases are diagnosed in women from 20 to 34, and 10 percent in women from 35 to 44. However, when it does occur, the disease tends to be more deadly in younger women than in older ones. Researchers are not sure why.

The researchers analyzed data from SEER, a program run by the National Cancer Institute to collect cancer statistics on 28 percent of the population of the United States. The study also used data from the past when SEER was smaller.

The study is based on information from 936,497 women who had breast cancer from 1976 to 2009. Of those, 53,502 were 25 to 39 years old, including 3,438 who had advanced breast cancer, also called metastatic or distant disease.

Younger women were the only ones in whom metastatic disease seemed to have increased, the researchers found.

Dr. Archie Bleyer, a clinical research professor in radiation medicine at the Knight Cancer Institute at the Oregon Health and Science University in Portland who helped write the study, said scientists needed to verify the increase in advanced breast cancer in young women in the United States and find out whether it is occurring in other developed Western countries. “This is the first report of this kind,” he said, adding that researchers had already asked colleagues in Canada to analyze data there.

“We need this to be sure ourselves about this potentially concerning, almost alarming trend,” Dr. Bleyer said. “Then and only then are we really worried about what is the cause, because we’ve got to be sure it’s real.”

Dr. Johnson said her own experience led her to look into the statistics on the disease in young women. She had breast cancer when she was 27; she is now 44. Over the years, friends and colleagues often referred young women with the disease to her for advice.

“It just struck me how many of those people there were,” she said.

Dr. Donald A. Berry, an expert on breast cancer data and a professor of biostatistics at the University of Texas’ M. D. Anderson Cancer Center in Houston, said he was dubious about the finding, even though it was statistically significant, because the size of the apparent increase was so small — 1.37 cases per 100,000 women, over the course of 30 years.

More screening and more precise tests to identify the stage of cancer at the time of diagnosis might account for the increase, he said.

“Not many women aged 25 to 39 get screened, but some do, but it only takes a few to account for a notable increase from one in 100,000,” Dr. Berry said.

Dr. Silvia C. Formenti, a breast cancer expert and the chairwoman of radiation oncology at New York University Langone Medical Center, questioned the study in part because although it found an increased incidence of advanced disease, it did not find the accompanying increase in deaths that would be expected.

A spokeswoman for an advocacy group for young women with breast cancer, Young Survival Coalition, said the organization also wondered whether improved diagnostic and staging tests might explain all or part of the increase.

“We’re looking at this data with caution,” said the spokeswoman, Michelle Esser. “We don’t want to invite panic or alarm.”

She said it was important to note that the findings applied only to women who had metastatic disease at the time of diagnosis, and did not imply that women who already had early-stage cancer faced an increased risk of advanced disease.

Dr. J. Leonard Lichtenfeld
, deputy chief medical officer of the American Cancer Society, said he and an epidemiologist for the society thought the increase was real.

“We want to make sure this is not oversold or that people suddenly get very frightened that we have a huge problem,” Dr. Lichtenfeld said. “We don’t. But we are concerned that over time, we might have a more serious problem than we have today.”

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DealBook: Wall Street Pay Rises, for Those Who Still Have a Job

7:39 p.m. | Updated

Wall Street may be shrinking — cutting thousands of jobs over the last year — but for those who remain, the pay is still very lucrative.

The average cash bonus for those employed in the financial industry in New York last year rose roughly 9 percent, to $121,900, Thomas P. DiNapoli, New York State’s comptroller, said on Tuesday.

Cash bonuses in total are forecast to increase by roughly 8 percent, to $20 billion this year.

The total, however, is down from 2010, when it was $22.8 billion. Wall Street’s peak came in 2006, before the financial crisis, with a total $34.3 billion in bonuses. The year-end bonus can account for the bulk of a finance professional’s annual compensation.

The report from the state comptroller’s office gives estimates on the bonuses, based on tax withholding data, data from banks and conversations with industry experts. It came the same day that JPMorgan Chase, one of the country’s biggest banks, announced it was eliminating 17,000 jobs over the next two years through layoffs and attrition, adding its name to a string of large banks that continue to cut jobs to reduce expenses.

Wall Street has regained 30 percent of the 28,300 jobs lost during the financial crisis, Mr. DiNapoli said. And firms are continuing to streamline as they cope with a sluggish economic recovery, difficult markets and a heavier regulatory burden. While financial industry employment in New York City was steady in the first half of 2012, it was down slightly in the second half of the year, the comptroller’s office said.

“Wall Street is still in transition, but it is very slowly adjusting to changes in its economic and regulatory environment,” he said.

In an effort to hold down — albeit temporarily — compensation costs, a number of financial firms have deferred cash payments to employees in recent years. Mr. DiNapoli said on Tuesday that part of the increase in 2012 was cash promised in recent years but actually paid out last year. He said that it was difficult to break out what percentage of the total was deferrals, but he believed that it was still a small part of the total.

The ebbs and flows of Wall Street pay have a major impact on the economy of New York City, where 169,700 are employed in finance. Local businesses like restaurants, luxury goods retailers and the upper end of the real estate market pin their fortunes to the flood of cash from year-end bonuses.

Before the start of the financial crisis, business and personal income tax collections from finance-related activities accounted for up to 20 percent of New York State tax revenue. In 2012, that contribution fell to 14 percent.

Yet finance remains the best paying sector in New York City, Mr. DiNapoli told reporters during a conference call.

All told, the average pay package for securities industry employees in New York was $362,900 in 2011, the last year for which data is available, almost unchanged from 2010.

“Profits and bonuses rebounded in 2012, but the industry is still restructuring,” Mr. DiNapoli said. Despite its smaller size, the securities industry is still a very important part of the New York City and New York State economies.”

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A cosmic gift to L.A.

One night on Mt. Wilson about 1908, a short, powerfully built man with a handlebar mustache looked through the largest telescope in the world. What he saw transformed him, and would put Los Angeles at the forefront of a movement to make astronomy the people's science.

We may never know whether Col. Griffith J. Griffith saw the rings of Saturn or another celestial object with the then-new 60-inch reflector telescope, but we can be sure that it inspired his vision of a world-class observatory for the people of Los Angeles, allowing the masses a glimpse of the heavens.

"If all mankind could look through that telescope," he said that night, "it would change the world."

PHOTOS: Images of space

Griffith's contribution was not just his namesake observatory, but his rejection of the notion more common in his time that an observatory belonged on a remote mountaintop and should be restricted to scientists.

Griffith sought to make astronomy a public science — a notion embodied by Griffith Observatory, built near what is now the middle of the city, where it is accessible to anyone.

Or, as observatory Director Ed Krupp says: "Location, location, location."

The observatory has embraced this public-spirited view of science in other ways too: From its beginning in the 1930s, it was popularized by Hollywood, becoming a movie icon in its own right.

"Griffith had an inkling of the power of motion pictures and he wanted a motion picture theater of some kind incorporated into this public observatory," Krupp says. "The planetarium hadn't been invented at the time ... and so a movie theater was really the closest thing that he could imagine to an immersive experience in astronomy and in science."

The 1955 film "Rebel Without a Cause" made the observatory an international emblem of the city, but even before the building opened in 1935, it was used to film scenes in Gene Autry's bizarre cowboy-science fiction mash-up "The Phantom Empire," Krupp says. "At the time, the building seemed classic yet futuristic, and that made it a draw for science fiction," Krupp says. "It was, in fact, the palace of Ming the Merciless on the Planet Mongo in the Flash Gordon space opera."

Today, "its stardom attracts a steady stream of visitors from all over the planet," he says.

Griffith and the observatory were a main focus of a program titled "Making Astronomy Public, Los Angeles Style" held during the American Astronomical Society meeting held earlier this year in Long Beach.

Speakers at the meeting sought to expand the conventional view of Griffith, who donated about 3,000 acres for a city park in 1896, shot his wife in the head in 1903 and served two years in prison for assault with a deadly weapon.

He was a despised character in Los Angeles after the shooting, says Anthony Cook, an astronomer at the observatory who spoke at the conference. But although many have questioned whether the observatory was an attempt to buy back the goodwill of the city, Cook says the gift was sincere.

"He came out of San Quentin after two years really a reformed person. He stayed away from alcohol, he actually supported his ex-wife, any philanthropic enterprise that she wanted to do, helped his son maintain caring for her, and also turned his attentions to what he hoped would benefit everybody, which was by developing Griffith Park."

A onetime newspaper reporter who covered mining and became wealthy as an expert on the subject, Griffith remained a popularizer throughout his life. In drafting the observatory's detailed specifications, he had lengthy discussions with George Ellery Hale, who with Andrew Carnegie founded the first astrophysical telescope in Los Angeles, and Walter Adams, who later became director of the Mt. Wilson Observatory.

Although an observatory — or at least a tower with a telescope — had been suggested for the highest point in the park as early as 1897, it wasn't until Griffith's epiphany on Mt. Wilson that he broadened his vision into an ambitious plan for a large observatory and hall of science.

"Griffith was very civic-minded," Cook says. "He wanted to do things unifying the huge, diverse population settled in Los Angeles."

Before Griffith died in 1919, he established a generous trust fund to build an observatory in Griffith Park — when the time was right. Perhaps due to his lingering notoriety, nothing was done until the 1930s, when a handful of major U.S. cities began building the newly invented planetariums. But unlike those being constructed elsewhere, Los Angeles' planetarium would be a part of what is primarily an observatory.

A competition was held for the design of the building — Richard Neutra proposed a sleek Art Deco structure that raises tantalizing possibilities of what might have been — and prominent civic architects John C. Austin and Frederick M. Ashley were chosen.

The result was what the Smithsonian Institution's David DeVorkin — a former observatory tour guide — calls "the hood ornament of Los Angeles."

True to its public aspirations, the observatory emphasized showmanship. The facility's Hollywood connections meant it could tap skilled studio artists and technicians for exhibits and planetarium shows.

The philosophy from the beginning was to turn visitors into observers in a building full of scientific instruments, Krupp says. In fact, the $93-million renovation and expansion of the observatory in 2006 was guided by the concept that the entire building is an instrument.

Krupp returned to Griffith's famous quote on Mt. Wilson: "If all mankind could look through that telescope it would change the world."

It reflects Griffith's view that seeing into the cosmos could affect people personally, and perhaps transform society. That's what makes his observatory so special, Krupp says: "He wanted a place that would make the universe intelligible to the public through personal engagement with the sky."

larry.harnisch@latimes.com

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Global Health: After Measles Success, Rwanda to Get Rubella Vaccine

Rwanda has been so successful at fighting measles that next month it will be the first country to get donor support to move to the next stage — fighting rubella too.

On March 11, it will hold a nationwide three-day vaccination campaign with a combined measles-rubella vaccine, hoping to reach nearly five million children up to age 14. It will then integrate the dual vaccine into its national health service.

Rwanda can do so “because they’ve done such a good job on measles,” said Christine McNab, a spokeswoman for the Measles and Rubella Initiative, which will provide the vaccine and help pay for the campaign.

Rubella, also called German measles, causes a rash that is very similar to the measles rash, making it hard for health workers to tell the difference.

Rubella is generally mild, even in children, but in pregnant women, it can kill the fetus or cause serious birth defects, including blindness, deafness, mental retardation and chronic heart damage.

Ms. McNab said that Rwanda had proved that it can suppress measles and identify rubella, and it would benefit from the newer, more expensive vaccine.

The dual vaccine costs twice as much — 52 cents a dose at Unicef prices, compared with 24 cents for measles alone. (The MMR vaccine that American children get, which also contains a vaccine against mumps, costs Unicef $1.)

More than 90 percent of Rwandan children now are vaccinated twice against measles, and cases have been near zero since 2007.

The tiny country, which was convulsed by Hutu-Tutsi genocide in 1994, is now leading the way in Africa in delivering medical care to its citizens, Ms. McNab said. Three years ago, it was the first African country to introduce shots against human papilloma virus, or HPV, which causes cervical cancer.

In wealthy countries, measles kills a small number of children — usually those whose parents decline vaccination. But in poor countries, measles is a major killer of malnourished infants. Around the world, the initiative estimates, about 158,000 children die of it each year, or about 430 a day.

Every year, an estimated 112,000 children, mostly in Africa, South Asia and the Pacific islands, are born with handicaps caused by their mothers’ rubella infection.

Thanks in part to the initiative — which until last year was known just as the Measles Initiative — measles deaths among children have declined 71 percent since 2000. The initiative is a partnership of many health agencies, vaccine companies, donors and others, but is led by the American Red Cross, the United Nations Foundation, the Centers for Disease Control and Prevention, Unicef and the World Health Organization.

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Lowe’s Fourth-Quarter Earnings Beat Expectations

Richard Drew/Associated Press

Robert Niblock, chief executive of Lowe’s, said consumer spending was increasing.

The results are a sign that people are beginning to feel better about spending money on their homes as the housing market slowly recovers.

Lowe’s chief executive, Robert A. Niblock, said the company was seeing a pickup in spending even in areas of the country hit hardest by the housing slump, like Florida, Arizona and California.

“Rising home values have given homeowners additional confidence in spending on their homes,” Mr. Niblock said in an interview.

Lowe’s net income fell 11 percent from the previous year’s quarter, which included an extra week of revenue. Its earnings forecast for the year was below expectations but its revenue projection beat the consensus.

Lowe’s has revamped its pricing structure, offering what it says are permanent low prices on many items across the store instead of fleeting discounts. It has also focused on hiring more workers and improving its inventory.

In a call with analysts, Lowe’s chief customer officer, Gregory M. Bridgeford, said the pricing strategy helped spur strong sales of cabinets and countertops, tools and outdoor power equipment.

Lowe’s reported net income totaled $288 million, or 26 cents per share, for the three months ended Feb. 1. That was down from $322 million, or 26 cents a share, a year earlier. Analysts expected 23 cents a share in the latest quarter, according to FactSet.

There were 11 percent fewer shares outstanding in the latest quarter than a year ago. An extra week in the quarter last year had increased year-earlier earnings by 5 cents a share.

Revenue fell 5 percent to $11.05 billion from $11.63 billion a year earlier. Analysts had expected sales of $10.85 billion. Revenue in stores open at least one year rose 1.9 percent. The measure is an important gauge of a retailer’s fiscal health because it excludes stores that open or close during the year.

Lowe’s, which operates 1,754 stores in the United States, Canada and Mexico, expects fiscal 2013 net income of $2.05 a share. Analysts expect $2.10 a share.

The company expects revenue to rise 4 percent, implying revenue of $52.54 billion. Analysts expect $51.69 billion.

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Brown's school funding plan draws mixed reactions

In the Anaheim City School District, where most students are low-income and struggling to learn English, teachers need special training, extra tutoring time and lots of visual materials to help their pupils achieve at grade level.

In the well-heeled Palos Verdes Peninsula Unified School District, poverty and limited English are not widespread problems. But officials there say their student needs include more expensive Advanced Placement classes to challenge them with college-level material in high school.

Who should get more state educational dollars? Last week, school districts got their first glimpse of how that question would be answered under Gov. Jerry Brown's proposed new funding formula: Anaheim would receive an estimated $11,656 per student annually; Palos Verdes would get $8,429 by the time the plan is fully implemented in seven years.

And that disparity draws distinctly different reactions.

"It's great news," said Darren Dang, Anaheim's assistant superintendent of administrative services. "Given our demographics, we'll be getting much-needed resources for our students."

But Lydia Cano, Palos Verdes' deputy superintendent of business services, said she believed the new scheme would shortchange her students. Disadvantaged students already receive a bigger share of state and federal dollars, she said.

"It's not fair," she said. "It will make the divide even bigger."

In the most significant change in four decades in how school dollars would be distributed, Brown is proposing to give all districts a base grant, then add an extra 35% of that for each student who is low-income, struggling with English or in foster care. If such students make up more than 50% of a district's population, another 35% supplement would be given.

The formula is part of Brown's proposed budget, which requires the Legislature's approval.

Under the proposal, the state would do away with most so-called categorical funding — which was earmarked for such specific uses as textbooks, remediation and low-income student aid. Instead, the money would be given directly to districts with no strings attached, to promote Brown's goal of greater local control.

The plan is aimed at reforming what most educators agree is an inequitable, burdensome and overly complex funding system. It is grounded in a 2008 report coauthored by state Board of Education President Michael Kirst that compiled research showing that parental income and English language ability are two critical factors in academic achievement.

Kirst argued that it was more important to help needy students gain grade-level skills than it is to provide college-level work for top-achieving high schoolers. "These are judgments about political priorities," he said.

About 20 states currently distribute extra dollars to needier students, including Rhode Island and New York, according to Margaret Weston of the Public Policy Institute of California. Poor districts in California already receive about 20% more in state and federal dollars than do affluent ones, but Brown's formula would increase that share, she said.

After four years of crippling budget cuts, the Los Angeles Unified School District is expected to receive an estimated boost of $820 more per student over the next two years under Brown's proposal. By 2020, funding is expected to grow to $11,993 per student from $7,509 last year.

L.A. Supt. John Deasy hailed the governor's proposal. "It's morally the right thing to do and educationally the sound thing to do," he said.

Like many administrators, however, Deasy cautioned that it would take a few years of increases to make up for the state's devastating reductions since 2007. New spending could possibly begin in 2015, he said, adding that he would recommend restorations in summer school, counselors, arts and support staff, among other things.

He also said he would make it the district's "policy and practice" to send the state dollars for disadvantaged students directly to their schools to help them. Some officials, such as Dang in Anaheim, have expressed concerns about possible pressure to use the money for salary hikes.

Over the next five years, per-student funding is expected to grow by about $2,700, the state estimates showed. All school districts and charter schools would receive at least as much money this year as last.

In Los Angeles County, funding estimates range from a low of $7,863 per student in the Hermosa Beach City School District to $13,569 for Animo Leadership High, an independent charter school in Inglewood.

Long Beach, San Bernardino City and Santa Ana unified all are estimated to receive funding boosts of $800 to $1,000 per student over the next two years. But the state projects an increase of less than half that for more affluent districts, such as San Marino, Palos Verdes Peninsula and Manhattan Beach unified.

Julie Boucher, San Marino's assistant superintendent of business services, said she was dismayed that Brown was not proposing to first restore general funding that the state has cut since 2007 before allocating additional dollars to specific students.

San Marino's state funding has been slashed by $17 million since 2008 — a total equivalent to 60% of its annual budget. The district has received $3.1 million annually from its nonprofit fundraising foundation and $5.1 million from a parcel tax but still has worked with its employee unions to freeze salaries, require larger contributions for healthcare, cut 26 teaching positions and shorten the school calendar with unpaid furlough days, she said.

"It does not seem equitable given the fact that we're all down," she said of Brown's proposal. "First we need to be made whole. Don't rob Peter to pay Paul."

During a recent visit to Ponderosa Elementary School in Anaheim, however, educators demonstrated how teaching lower-income English learners is more costly and time-consuming.

In Bernadette Grzechowiak's fifth-grade classroom, for instance, students were learning how to find main ideas in a passage about Native Americans. But unlike fluent English speakers, she said, those with limited language skills need far more visual aids — presented every 60 to 90 seconds, according to research. Her room is filled with graphics about colonial America and sentence frames to teach them academic language, such as "One detail that supports the main idea is…"

Grzechowiak said she learned those and other techniques from a district-paid teaching coach.

Ponderosa has also spent $10,000 on a science book series heavy on photos and graphics to help students learning English. And the school has two full-time teachers to provide extra support for struggling students and a bilingual community liaison to help educate the school's largely immigrant parents about their children's academic needs.

"Kids are so hungry and ready to learn," said Maria Villegas, the principal. "It just takes time, opportunity and having a great staff."

teresa.watanabe@latimes.com

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