Changing of the Guard: How Crash Cover-Up Altered China’s Succession





BEIJING — “Thank you. I’m well. Don’t worry,” read the post on a Chinese social networking site. The brief comment, published in June, appeared to come from Ling Gu, the 23-year-old son of a high-powered aide to China’s president, and it helped quash reports that he had been killed in a Ferrari crash after a night of partying.




It only later emerged that the message was a sham, posted by someone under Mr. Ling’s alias — almost three months after his death.


The ploy was one of many in a tangled effort to suppress news of the Ferrari crash that killed Mr. Ling and critically injured two young female passengers, one of whom later died. The outlines of the affair surfaced months ago, but it is now becoming clearer that the crash and the botched cover-up had more momentous consequences, altering the course of the Chinese Communist Party’s once-in-a-decade leadership succession last month.


China’s departing president, Hu Jintao, entered the summer in an apparently strong position after the disgrace of Bo Xilai, previously a rising member of a rival political network who was brought down when his wife was accused of murdering a British businessman. But Mr. Hu suffered a debilitating reversal of his own when party elders — led by his predecessor, Jiang Zemin — confronted him with allegations that Ling Jihua, his closest protégé and political fixer, had engineered the cover-up of his son’s death.


According to current and former officials, party elites, and others, the exposure helped tip the balance of difficult negotiations, hastening Mr. Hu’s decline; spurring the ascent of China’s new leader, Xi Jinping; and playing into the hands of Mr. Jiang, whose associates dominate the new seven-man leadership at the expense of candidates from Mr. Hu’s clique.


The case also shows how the profligate lifestyles of leaders’ relatives and friends can weigh heavily in backstage power tussles, especially as party skulduggery plays out under the intensifying glare of media.


Numerous party insiders provided information regarding the episode, speaking on the condition of anonymity for fear of reprisals from the authorities. Officials have investigated the aftermath of the car wreck, they say, including looking into accusations that a state oil company paid hush money to the families of the two women.


Under Mr. Hu, Mr. Ling had directed the leadership’s administrative center, the General Office, but was relegated to a less influential post in September, ahead of schedule. Last month, he failed to advance to the 25-person Politburo and lost his seat on the influential party secretariat.


Mr. Hu, who stepped down as party chief, immediately yielded his post as chairman of the military, meaning he will not retain power as Mr. Jiang did. “Hu was weakened even before leaving office,” said a midranking official in the Organization Department, the party’s personnel office.


Mr. Ling’s future remains unsettled, with party insiders saying that his case presents an early test of whether Mr. Xi intends to follow through on public promises to fight high-level corruption.


“He can decide whether to go after Ling Jihua or not,” said Wu Guoguang, a former top-level party speechwriter, now a political scientist at the University of Victoria in British Columbia. “Either way, this is a big card in Xi Jinping’s hand.”


Mr. Ling, 56, built his career in the Communist Youth League. At an early age, he secured the patronage of Mr. Hu, who led the Youth League in the early 1980s and brought Mr. Ling to the General Office in 1995. “Hu didn’t come with a lot of friends, but Ling was someone he knew he could trust,” said the Organization Department official. “Officials said that if Ling called, it was like Hu calling.”


Mr. Ling played a central role in moving Youth League veterans into high offices and undermining Mr. Hu’s adversaries. Mr. Ling also wielded leverage over Internet censorship of leaders’ affairs, and sought to use it to benefit his patron.


“Negative publicity, including untruths, about Xi Jinping were not suppressed the way publicity about Hu Jintao was,” said one associate of party leaders.


As his influence grew, Mr. Ling tried to keep a low profile. About a decade ago, his wife closed a software company she owned and formed a nonprofit foundation that incubates young entrepreneurs. The couple sent their son, Ling Gu, to an elite Beijing high school under an alias, Wang Ziyun. “Ling Jihua told his family not to damage his career,” a former Youth League colleague said. “But it seems it can’t be stopped.”


Still living under an alias, Ling Gu graduated from Peking University last year with an international relations degree and began graduate studies in education. One of his instructors said his performance plunged later in his undergraduate years. “I think there were too many lures, too much seduction,” he said.


Before dawn on March 18, a black Ferrari Spider speeding along Fourth Ring Road in Beijing ricocheted off a wall, struck a railing and cracked in two. Mr. Ling was killed instantly, and the two young Tibetan women with him were hospitalized with severe injuries. One died months later, and the other is recovering, party insiders said.


Ian Johnson and Edward Wong contributed reporting.



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Toshiba’s 10-inch Excite 10 SE tablet sells for $349.99, comes with Jelly Bean












While every other company is busy chasing the 7-inch tablet market, Toshiba (TOSBF) is keeping its eye on people interested in 10-inch tablets. Its new Excite 10 SE Android tablet is fairly similar to its Excite 10 LE, sporting a 10.1-inch 1280 x 800 resolution display, NVIDIA Tegra 3 quad-core processor, 16GB of internal storage, 3-megapixel rear camera, HD front camera, microSD card slot and Android 4.1 Jelly Bean. It doesn’t have the iPad’s eye-popping Retina display or the Samsung (005930) Nexus 10′s crisp 2,560 x 1,600 resolution with 300 pixels per inch, but it’s more than adequate for most basic tablet tasks. And at $ 349.99, it’s not a bad deal for a 10-inch tablet. The Excite 10 SE goes on sale December 6th and will be available from ToshibaDirect.com and select retail stores. Toshiba’s press release follows below.



Toshiba expands excite family of tablets with new 10-inch model












New Excite 10 SE Tablet Powered by Android 4.1 Starting at $ 349.99 MSRP


IRVINE, Calif. — Dec. 4, 2012 — Toshiba’s Digital Products Division (DPD), a division of Toshiba America Information Systems, Inc., today announced the availability of the Excite™ 10 SE tablet, a multimedia-rich tablet with a 10.1-inch touchscreen, powered by Android™ 4.1, Jelly Bean. The Excite 10 SE offers an affordable option for people looking for a powerful and versatile tablet for the home, starting at only $ 349.99 MSRP[i].


“Our Excite family of tablets continues to grow with options to suit a wide range of consumer needs, from portability and gaming to versatility and power,” said Carl Pinto, vice president of marketing of Toshiba America Information Systems, Inc., Digital Products Division. “We designed the Excite 10 SE to be a full featured tablet that offers a pure Android, Jelly Bean experience, while maintaining an attractive price point.”


The Excite 10 SE features Android 4.1, Jelly Bean, which improves on the simplicity and usability of Android 4.0. Moving between customizable home screens and switching between apps is effortless, while the Chrome™ browser and new Google Now intelligent personal assistant and Voice Search apps makes surfing the web fast and fluid.


Slim and light at only 0.4 inches thick and weighing 22.6 ounces[ii], the Excite 10 SE is encased with a textured Fusion Lattice finish, making it comfortable to hold and easy to carry. The tablet offers a vibrant 10.1-inch diagonal AutoBrite™ HD touchscreen display[iii] plus the NVIDIA® Tegra® 3 Super 4-PLUS-1™ quad-core processor[iv] that delivers smooth web browsing and outstanding performance for games, HD movies and more.


Stereo speakers with SRS® Premium Voice Pro create an optimized audio experience for music, video and games, while providing greater clarity for video chatting via the tablet’s HD front-facing camera. The Excite 10 SE also includes a 3 megapixel rear-facing camera with auto-focus and digital zoom for capturing HD video and photos. Featuring a wide range of connectivity, the tablet includes 802.11 b/g/n Wi-Fi®, Bluetooth® 3.0, as well as Micro SD and Micro USB ports for expandability. The tablet also charges conveniently via the Micro USB port.


Availability


The Excite 10 SE will be available starting at $ 349.99 MSRP for the 16GB model at select retailers and direct from Toshiba at ToshibaDirect.com on December 6, 2012.



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Bret Bielema leaves Wisconsin for Arkansas


FAYETTEVILLE, Ark. (AP) — Bret Bielema is taking his brand of power football to Arkansas, leaving Wisconsin after seven seasons.


Arkansas released a statement Tuesday night saying Bielema has agreed to a deal to take over the program reeling following the firing of former coach Bobby Petrino.


A person familiar with the situation, who spoke on the condition of anonymity because the information hasn't been released publicly, says the deal is for six years and $3.2 million annually.


Bielema, Barry Alvarez's hand-picked successor at Wisconsin, was 68-24 with the Badgers, with four double-digit win seasons. He coached Wisconsin to a 17-14 victory over Arkansas in his first season at the Capital One Bowl.


"His tough, aggressive style of play has been successful and will be appealing to student-athletes and Razorback fans," Arkansas athletic director Jeff Long said in a statement. "He not only shares the vision and values for the future of Arkansas football, he embraces them."


Bielema is leaving the Big Ten for the SEC and a Razorbacks program that opened the year with hopes of challenging for a national championship only to get mired in the Petrino scandal before stumbling to a 4-8 finish.


The move was the second stunning hire this year at Arkansas, which brought in John L. Smith as the interim coach after firing Petrino for hiring his mistress to work in the athletic department. Long announced after the season that Smith wouldn't return.


Bielema seems likely to bring a far different approach than what the Razorbacks have become accustomed to. Arkansas continually ranked among the Southeastern Conference's best passing teams under Petrino while Bielema is known for his dominant offensive lines and slew of running backs.


"During my conversation with Jeff (Long), he described the characteristics for the perfect fit to lead this program," Bielema said in a statement. "It was evident we share the same mission, principles and goals."


Wisconsin running back Montee Ball tied Barry Sanders' long-standing single-season record of 39 touchdowns last year, and this year became the FBS career leader in touchdowns. He currently has 82 touchdowns after running for three Saturday night in the Big Ten title game against Nebraska — a 70-31 romp that secured the Badgers third straight trip to the Rose Bowl, where they will play Stanford on Jan. 1.


The 42-year-old Bielema was the defensive coordinator at Wisconsin for two years before being promoted to head coach in 2006. He played for Iowa and started his coaching career there as an assistant under Hayden Fry and later Kirk Ferentz.


"I was very surprised when Bret told me he was taking the offer from Arkansas," said Alvarez, Wisconsin's athletic director and former coach. "He did a great job for us during his seven years as head coach, both on the field and off. I want to thank him for his work and wish him the best at Arkansas."


The Illinois native takes over a program still reeling following the April scandal, one eager for stability and leadership.


"I'm excited about this decision," Arkansas cornerback Tevin Mitchel tweeted.


The Razorbacks improved their win total in four straight seasons under Petrino, including a 21-5 mark in 2010-11, and finished last season ranked No. 5. They had talked openly in the spring about competing for the school's first SEC championship and perhaps a national title.


Then came the April 1 motorcycle accident that led to Petrino's downfall. The married father of four initially lied about being alone during the wreck, later admitting to riding with his mistress — a former Arkansas volleyball player he had hired to work in the athletic department.


Smith, who had been an assistant the last three seasons at Arkansas under Petrino, was chosen by Long to guide a team that returned first-team All-SEC quarterback Tyler Wilson and a host of other key playmakers. The decision was lauded by the Razorbacks, who welcomed the personable Smith back with open arms.


The season hit the skids with a stunning overtime loss to Louisiana-Monroe on Sept. 8, starting a four-game losing streak that dropped Arkansas out of the rankings. The Razorbacks finished with the school's lowest win total since 2005, missing a bowl game for the first time since 2008.


"It's very difficult for me to believe that is not a bowl-eligible team," LSU coach Les Miles said following the Tigers' win over the Razorbacks in the season finale. "Watching the talent there, (it's) very capable."


Arkansas struggled to find its identity in the SEC after leaving the former Southwest Conference in 1992, but it appeared to have finally found just that under Petrino, who was hired after leaving the Atlanta Falcons during the season in 2007.


The Razorbacks turned into an offensive powerhouse under Petrino, leading the league in scoring and total offense last season. After winning 10 games and reaching the school's first BCS bowl game in 2010, losing to Ohio State, Arkansas won 11 games in 2011, capped by a Cotton Bowl win over Kansas State.


Still, Arkansas has yet to win the SEC, losing in the conference championship game three times.


While the country watched closely to see how Arkansas would react following Petrino's dismissal, Smith made headlines of his own throughout the season. The former Michigan State and Louisville coach filed for bankruptcy during the season, revealing $40.7 million in debt he blamed on bad land deals.


He was under far more fire from Arkansas fans for the mounting losses and it will be up to Bielema to turn things around in the loaded SEC West, with Alabama, LSU and now Texas A&M.


Long said during the season that the new coach would be tasked with building on the recent success at the school, which is looking into expanding the 72,000-seat Razorback Stadium and is currently building an 80,000-square-foot football operations center.


"The infrastructure in place at Arkansas shows the commitment from the administration to accomplish our goals together and I am excited to begin to lead this group of student-athletes," Bielema said. "This program will represent the state of Arkansas in a way Razorback fans everywhere will be proud of."


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DealBook: HSBC Sells Stake in Chinese Insurer for $9.4 Billion

HONG KONG — HSBC Holdings, one of Europe’s biggest banks, said Wednesday it would sell its entire stake in a leading Chinese insurer to a Thai conglomerate for 72.7 billion Hong Kong dollars ($9.4 billion.)

HSBC said it would sell its 15.6 percent stake in Ping An Insurance, based in Shenzhen, to the Charoen Pokphand Group, controlled by the Thai billionaire Dhanin Chearavanont, in a deal to be financed partly by the China Development Bank, a policy lender wholly owned by the state of China.

HSBC has been shedding assets to cut costs and streamline its business, and at the same time bolstering its balance sheet in the face of tighter global capital requirements for banks. Since Stuart T. Gulliver took over as chief executive at the beginning of 2011, the bank, which is based in London, has sold more than 40 noncore assets and has booked about $4 billion in gains on those sales this year alone.

HSBC disclosed last month that it was in talks over a potential sale of its Ping An stake, which it started building in 2002, and said Wednesday it expected to book a post-tax gain of $2.6 billion on completion of the deal with the Thai company.

‘‘This transaction represents further progress in the execution of the group’s strategy,’’ Mr. Gulliver said in a statement announcing the sale. ‘‘China remains a key market for the group.’’

Founded in Hong Kong and Shanghai almost 150 years ago, HSBC currently operates 133 outlets across 33 branch offices in mainland China. After the Ping An stake sale it will retain minority investments in several Chinese lenders, including a 19.9 percent stake in the Bank of Communications that is worth around $10 billion at current share prices, a stake in Industrial Bank, a midtier institution based in Fujian Province, and an 8 percent stake in the Bank of Shanghai.

The two-part Ping An transaction will see Charoen Pokphand, a conglomerate with businesses ranging from distribution of agricultural products like fresh eggs to operating one of the world’s biggest chains of 7-11 convenience stores, purchase 1.2 billion Ping An shares from HSBC at a price of 59 Hong Kong dollars ($7.61) apiece.

HSBC said it would transfer 21 percent of the shares to the Thai group on Friday. The sale of the remaining 79 percent of the shares at the same price is being financed partly with cash and partly by a loan from the China Development Bank to Charoen Pokphand, and the transfer of those shares is expected to be completed by Jan. 7, contingent on receiving approval from the China Insurance Regulatory Commission.

Shares in Ping An rose 4 percent to 60 Hong Kong dollars in late morning trading in Hong Kong on Wednesday following the announcement — exceeding the stake sale price by 1 dollar in a sign investors are confident the transaction will go ahead. Shares in HSBC rose 1 percent to 79.50 Hong Kong dollars by late morning, and are up around 35 percent in the year to date.

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With Some Hospitals Closed After Hurricane Sandy, Others Pick Up Slack





A month after Hurricane Sandy struck New York City, unexpectedly shutting down several hospitals, one Upper East Side medical center had so many more emergency room patients than usual that it was parking them in its lobby.




White and blue plastic screens had been set up between the front door and the elevator banks in the East 68th Street building of that hospital, NewYork-Presbyterian/Weill Cornell. The screens shielded 10 gurneys and an improvised nursing station from the view of people obliviously walking in and out of the soaring, light-filled atrium.


“It’s like a World War II ward,” Teri Daniels, who had been waiting a day and a half with a relative who needed to be admitted, said last week.


Since the storm, a number of New York City hospitals have been scrambling to deal with a sharp increase in patients, forcing them to add shifts of doctors and nurses on overtime, to convert offices and lobbies to use for patients’ care, and even, in one case, to go to a local furniture store to buy extra beds.


At Beth Israel Medical Center, 11 blocks south of the Bellevue Hospital Center emergency room, which was shuttered because of storm damage, the average number of visits to the E.R. per day has risen to record levels. Visits have increased by 24 percent this November compared with last, and the numbers show no sign of dropping. Hospital admissions have risen 12 percent compared with last November.


Most of the rise in volume is from patients who had never been to Beth Israel before. An emergency room doctor at the hospital described treating one patient who said he had been born at Bellevue and had never before gone anywhere else.


Emergency room visits have gone up 25 percent at NewYork-Presybterian/Weill Cornell, which in Bellevue’s absence is the closest high-level trauma center — treating stab wounds, gun wounds, people hit by cars and the like — in Manhattan from 68th Street south. Stretchers holding patients have been lined up like train cars around the nursing station and double-parked in front of stretcher bays.


In Brooklyn, some patients in Maimonides Medical Center’s emergency room who need to be admitted are waiting two or three days for a bed upstairs, instead of four or five hours. Almost every one of the additional 1,100 emergency patients this November compared with last November came from four ZIP codes affected by the storm and served by Coney Island Hospital, a public hospital that was closed because of storm damage.


The number of psychiatric emergency patients from those same ZIP codes has tripled, in a surge that began three days before the hurricane, perhaps fueled by anxiety, as well as by displacement from flooded adult homes or programs at Coney Island Hospital, doctors said.


The Maimonides psychiatric emergency room bought five captain’s beds — which do not have railings that can be used for suicide attempts — at a local furniture store, to accommodate extra patients. The regular emergency room had to buy 27 new stretchers after the hurricane, “and we probably need a few more,” the department’s chief, Dr. John Marshall, said.


The emergency room and inpatient operations of four hospitals remain closed because of flooding and storm damage. Besides Bellevue and Coney Island, NYU Langone Medical Center and the VA New York Harbor Healthcare System, both near Bellevue on the East Side of Manhattan, are closed.


While the surge in traffic to other hospitals has been a burden, it has also been a boon, bringing more revenue.


On the Upper East Side, the storm has helped Lenox Hill Hospital, which has a history of financial problems. It took two or three wards that had been turned into offices and converted them back to space for patients. Emergency room visits are up 10 percent, and surgery has been expanded to seven days a week from five.


“We usually operate at slightly over 300 beds, and now we’re at well over 550,” Carleigh Gustafson, director of emergency nursing, said.


Conversely, administrators at the shuttered hospitals, especially NYU Langone, a major teaching center, worry that their patients and doctors are being raided, with some never to return.


NYU’s salaried doctors are being paid through January, on the condition that they do not take another job. But at the same time, they need a place to practice, so NYU administrators have been arranging for them to work as far away as New Jersey until the hospital reopens. Lenox Hill alone has taken on close to 300 NYU doctors, about 600 nurses, and about 150 doctors in training, fellows and medical students.


Obstetricians and surgeons from the closed hospitals have been particularly disadvantaged, since they are dependent on hospitals to treat their patients. Many displaced surgeons have been reduced to treating only the most desperately ill, and operating on nights and weekends, when hospitals tend to be least well staffed.


“I think there’s no question that a lot of people have postponed anything that they can postpone that is elective,” said Dr. Andrew W. Brotman, senior vice president at NYU.


In mid-November, Dr. Michael L. Brodman, chairman of obstetrics at Mount Sinai Medical Center, sent out a memo saying his department had taken on 26 NYU physicians, as well as nurses and residents, but “clearly, that is too much for us to handle long term.”


Since then, 15 of the physicians have gone to New York Downtown Hospital, while Mount Sinai has retained 11 doctors and 26 nurses.


“We are guests in other people’s homes,” Dr. Brotman of NYU said, “and we are guests who have to some degree overstayed their welcome.”


Joanna Walters contributed reporting.



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Larissa Journal: Greek Brothel Owner Rescues Larissa Soccer Club


Angelos Tzortzinis for The New York Times


Ms. Alevridou's support of Voukefalas has caused an uproar.







LARISSA, Greece — Her soccer club looked ragged. Strikers jumped up for headers only to miss the ball entirely. Players tumbled over one another, shouting out accusations that they had been fouled.




But in the bleachers, Soula Alevridou, or “Madam Soula,” as she is known in these parts, watched intently, a petite woman in a man’s tie smoking ultra thin cigarettes.


“Keep in mind that the home team is very good,” she said, explaining the difficulties that her team, Voukefalas, was having.


Madam Soula, a former prostitute and now, at the age of 67, the owner of two luxury brothels here in Larissa, stepped in this fall to sponsor Voukefalas, a small amateur soccer team that like many others in Greece was having trouble coming up with the cash for uniforms, equipment and playing field fees.


She considers her support a natural thing to do, maybe even a patriotic gesture, because her debt-mired country is in so much trouble that many of life’s extras, like amateur sports, are becoming out of reach.


“A friend asked and I said, ‘I am here,’ ” she said.


But local officials in this once-rich farming area are hardly thanking her for her efforts. In fact, her gift of about $1,300 so far, in part to buy bubble-gum pink training outfits — has caused something of an uproar as officials debate the appropriateness of having a brothel owner step in, even if it is to make up for a bankrupt state and an economy that leaves few businesses with the cash to help young men play sports.


In an interview, Larissa’s mayor, Konstantinos Tzanakoulis, pointedly ignored questions about the matter. And the Larissa soccer league recently informed Voukefalas that team equipment bearing the name of Madam Soula’s brothels — Villa Erotica and House of the Era — would not be tolerated, though brothels are legal in Greece. The league warned that any infraction, not only in games but also during “training, warm-ups, interviews and friendly matches,” would land the team in disciplinary hearings for “defamation of the sport.”


The team’s president, Ioannis Batziolas, 29, a backup goalie, calls the league’s decision hypocritical, and points out that Greece’s professional soccer championship is sponsored by the state-owned lottery and betting company OPAP, which is soon to be privatized. “What is the better idea to promote?” he asks. “Gambling or sex?”


For a time, this city of 200,000 at the foot of Mount Olympus seemed to be weathering the Greek crisis better than most. But the years of recession are piling up and most businesses are suffering. Unemployment is over 20 percent, higher among young people.


Madam Soula said her business had been hurt, too. But not that much. Customers sometimes even fly in from Britain, she said, drawn by Internet ads.


Mr. Batziolas said he looked everywhere for team sponsors, but found nothing until Madam Soula came forward. His own travel agency, L.A. Travel, provided most of the money last year. But it just could not afford to any longer, he said. On top of that, he has not seen the government’s share of support in several years. “They owe me thousands,” he said.


Mr. Tzanakoulis, who has been mayor here for more than a decade, says that the municipality is continuing to support sports, but that the central government has not been delivering, which leaves a great need.


“Sports are important for young men,” he said. “It is a good activity that keeps them out of trouble.” But that is all he will say on the subject of Voukefalas (the team is named after Alexander the Great’s horse) and the team’s new sponsor.


Voukefalas is not the only team to have been creative in looking for sponsors. Another soccer team got a funeral home to act as a sponsor and for a while wore black T-shirts with white crosses. But league officials did not like that either.


Madam Soula tries to shrug off the hullabaloo over her sponsorship. “Do they have anyone else to give them the money?” she asks.


Dimitris Bounias contributed reporting.



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‘The Daily’ doomed by dull content and isolation












LOS ANGELES (AP) — It was too expensive. It lacked editorial focus. And for a digital publication, it was strangely cut off from the Internet. That’s the obituary being written in real time through posts, tweets and online chats about The Daily, the first-of-its-kind iPad newspaper that is being shut down this month.


Rupert Murdoch‘s News Corp. said Monday that The Daily will publish its final issue on Dec. 15, less than two years after its January 2011 launch. The app has already been removed from Apple’s iTunes, where it once received lukewarm ratings.












The Daily had roughly 100,000 subscribers who paid either 99 cents a week or $ 40 a year for its daily download of journalism tailored for touch screens. But that wasn’t enough to sustain some 100 employees and millions of dollars in losses since its launch. At the time of its debut, News Corp. said The Daily’s operating costs would amount to about half a million dollars a week, or around $ 26 million a year.


When News Corp. launched The Daily, it was touted as a bold experiment in new media. The company hired top-name journalists from other publications, such as the New York Post’s former Page Six editor, Richard Johnson, and said it poured $ 30 million into the newspaper’s launch. Now, the company is acknowledging that The Daily no longer has a place at News Corp., which is being split in two to separate its publishing enterprises from its TV and movie businesses.


Murdoch said in a statement that News Corp. “could not find a large enough audience quickly enough to convince us the business model was sustainable in the long-term.” Some employees are being hired in other parts of the company.


Critics say The Daily’s day-to-day mix of news, opinion and info-graphics wasn’t that different from content available for free on the Internet. And despite a high-profile launch that drew lots of media attention, the publication failed to build a distinctive brand. There was no ad campaign touting its coverage and stories weren’t accessible to non-subscribers, so it didn’t benefit from buzz that comes from social networks like Twitter and Facebook.


Trevor Butterworth, who wrote a weekly column for The Daily called “The Information Society,” says the disconnect between the app and the broader Internet curtailed its reach. He was laid off in July when the publication shrank from 170 workers to about 120. As part of the purge, The Daily cut its dedicated opinion section and dropped sports coverage in favor of using a feed from its News Corp. sister outfit, Fox Sports.


“Stories weren’t widely shared or widely known,” says Butterworth. “It felt like I was writing into the void.”


When it launched, The Daily was meant to take advantage of the explosion of tablet computer sales, and the notion that people generally read on them in the morning or evening, like a magazine.


But each issue came in a giant file — sometimes 1 gigabyte large — and took 10 or 15 minutes to download over a broadband connection, which is unheard of for news apps, says Matt Haughey, the founder of MetaFilter.com, one of the first community blogs on the Internet.


Because the stories weren’t linkable, The Daily didn’t benefit from new Internet traffic that would have come from content aggregators like Flipboard and Tumblr.


“They ignored the obvious, which was the Web,” Haughey says. Although many people are foregoing buying a laptop for the lightweight convenience of a tablet, the day hasn’t arrived yet when all online access will come through apps rather than the Web. “Maybe in five or 10 years, the Web will be less important,” he says. “For now it seems like they were missing out.”


It may also have been a problem that News Corp. launched The Daily from scratch into an environment where readers tend to gravitate toward trusted sources and established brands. According to a 2011 Pew Research Center survey, 84 percent of mobile device users said a news app’s brand was a major factor in deciding whether to download it.


One of the intangible challenges The Daily had was standing out in a sea of online journalism, both paid and free. Some national newspapers, such as The New York Times and The Wall Street Journal, have carved out a niche with informed coverage of sometimes complex topics and have gained paying digital subscribers by limiting the number of free articles they offer online.


Gannett Co., which publishes USA Today and about 80 other newspapers, has succeeded in raising circulation revenue at local papers by putting up so-called online “pay walls,” taking advantage of the fact that there are few alternative sources of coverage for certain communities.


Without a unique coverage niche or a local monopoly, The Daily was caught between two worlds.


By being digital-only, the publication didn’t have a defined coverage area. It was “in competition with everybody and everything,” says Joshua Benton, director of the Nieman Journalism Lab at Harvard University. Yet it failed to carve out its own niche in that larger universe, he says.


“Its lack of editorial focus played a role,” Benton notes. “It was sort of a pleasant, middle-brow, slightly tabloidy mix of news and features. And there’s lots of that available for free online. I would imagine if ‘The Daily’ were starting again now, they would invest more in establishing their brand identity early on.”


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RG3, Redskins closing in on Giants with 17-16 win

LANDOVER, Md. (AP) — Robert Griffin III threw for one touchdown and had a fumble turn into another score, and the Washington Redskins pulled within one game of the NFC East lead with a 17-16 win over the New York Giants on Monday night.

The Redskins improved to 6-6 with their third straight victory, tied with the Dallas Cowboys and on the heels of the Giants, who have lost three of four to fall to 7-5.

Griffin completed 13 of 21 passes for 163 yards and ran five times for 72 yards, breaking Cam Newton's NFL record for yards rushing by a rookie quarterback.

Griffin lost the ball on one of his runs, but it flew into the arms of teammate Joshua Morgan, who ran it in for an early touchdown.

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Deficit Talks Stumble Over Down Payment


Alex Wong/Getty Images


Senator Kent Conrad in Washington last month. He sees “confusion between the initial down payment and the framework.”







WASHINGTON — For all the growing angst over the state of negotiations to head off a fiscal crisis in January, the parties are farthest apart on a relatively small part of the overall deficit reduction program — the down payment.




President Obama and the House speaker, John A. Boehner, are in general agreement that the relevant Congressional committees must sit down next year and work out changes to the tax code and entitlement programs to save well more than $1 trillion over the next decade.


But before that work begins, both men want Congress to approve a first installment on deficit reduction in the coming weeks. The installment would replace the automatic spending cuts and tax increases that make up the “fiscal cliff,” while signaling Washington’s seriousness about getting its fiscal house in order. That is where the chasm lies in size and scope.


Mr. Obama says the down payment should be large and made up almost completely of tax increases on top incomes, partly because he and Congressional leaders last year agreed on some spending cuts over the next decade but have yet to agree on any tax increases.


Republicans have countered by arguing for a smaller down payment that must include immediate savings from Medicare and other social programs. Republicans, using almost mirror-image language, have said that they do not want to agree to specific tax increases and vague promises of future spending cuts.


Senator Kent Conrad of North Dakota, chairman of the Budget Committee and part of a bipartisan “Gang of Six” senators who devised the two-stage process, said: “I think there’s a lot of confusion between the initial down payment and the framework. That’s for sure.”


The two biggest areas of dispute are tax increases and the big government health insurance programs, Medicare and Medicaid. On the health programs, neither side believes Congress could meaningfully overhaul them in the four weeks that remain before the fiscal deadline.


“Entitlement reform is a big step, and it affects tens of millions of people,” said Senator Richard J. Durbin, Democrat of Illinois, another architect of the two-stage framework. “It’s not just a matter of cutting spending in an appropriation. It’s changing policy. And that’s why I was reluctant to include it in the down-payment conversation. I want this to be a thoughtful effort on both sides that doesn’t jeopardize this program.”


But Republicans say that it is possible to make some initial changes to the programs in coming weeks. “There are simpler things that can be done,” said Senator Michael D. Crapo, Republican of Idaho and another Gang of Six member. “The real structural changes would come later.”


Mr. Crapo said Congress could agree on some additional cuts to health care providers and change the way inflation is calculated to slow not only automatic increases in Medicare and Social Security benefits, but also the annual rise in tax brackets.


Democrats instead argue that the down payment should consist of a combination of tax increases and cuts to programs outside Medicare, Medicaid and Social Security, like farm programs. Mr. Obama has pushed for a return to the top tax rates under President Bill Clinton.


Republican leaders have said that they are willing to raise new tax revenues — albeit not as much as Democrats want — but Republicans want taxes to rise by closing loopholes and curbing tax deductions and credits.


If the two sides are able to come to an agreement on the down payment, it would also likely fix targets for larger savings in the tax code and entitlement programs. The White House and Congress would then spend much of the next year trying to hash out the specific policy changes needed to hit those targets.


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Call That Kept Nursing Home Patients in Sandy’s Path


Chang W. Lee/The New York Times


Workers were shocked that nursing and adult homes in areas like Rockaway Park, Queens, weren’t evacuated.







Hurricane Sandy was swirling northward, four days before landfall, and at the Sea Crest Health Care Center, a nursing home overlooking the Coney Island Boardwalk in Brooklyn, workers were gathering medicines and other supplies as they prepared to evacuate.




Then the call came from health officials: Mayor Michael R. Bloomberg, acting on the advice of his aides and those of Gov. Andrew M. Cuomo, recommended that nursing homes and adult homes stay put. The 305 residents would ride out the storm.


The same advisory also took administrators by surprise at the Ocean Promenade nursing home, which faces the Atlantic Ocean in Queens. They canceled plans to move 105 residents to safety.


“No one gets why we weren’t evacuated,” said a worker there, Yisroel Tabi. “We wouldn’t have exposed ourselves to dealing with that situation.”


The recommendation that thousands of elderly, disabled and mentally ill residents remain in more than 40 nursing homes and adult homes in flood-prone areas of New York City had calamitous consequences.


At least 29 facilities in Queens and Brooklyn were severely flooded. Generators failed or were absent. Buildings were plunged into a cold, wet darkness, with no access to power, water, heat and food.


While no immediate deaths were reported, it took at least three days for the Fire Department, the National Guard and ambulance crews from around the country to rescue over 4,000 nursing home and 1,500 adult home residents. Without working elevators, many had to be carried down slippery stairwells.


“I was shocked,” said Greg Levow, who works for an ambulance service and helped rescue residents at Queens. “I couldn’t understand why they were there in the first place.”


Many sat for hours in ambulances and buses before being transported to safety through sand drifts and debris-filled floodwaters. They went to crowded shelters and nursing homes as far away as Albany, where for days, they often lacked medical charts and medications. Families struggled to locate relatives.


The decision not to empty the nursing homes and adult homes in the mandatory evacuation area was one of the most questionable by the authorities during Hurricane Sandy. And an investigation by The New York Times found that the impact was worsened by missteps that officials made in not ensuring that these facilities could protect residents.


They did not require that nursing homes maintain backup generators that could withstand flooding. They did not ensure that health care administrators could adequately communicate with government agencies during and after a storm. And they discounted the more severe of the early predictions about Hurricane Sandy’s surge.


The Times’s investigation was based on interviews with officials, health care administrators, doctors, nurses, ambulance medics, residents, family members and disaster experts. It included a review of internal State Health Department status reports. The findings revealed the striking vulnerability of the city’s nursing and adult homes.


On Sunday, Oct. 28, the day before Hurricane Sandy arrived, Mr. Bloomberg ordered a mandatory evacuation in Zone A, the low-lying neighborhoods of the city. But by that point, Mr. Bloomberg, relying on the advice of the city and state health commissioners, had already determined that people in nursing homes and adult homes should not leave, officials said.


The mayor’s recommendations that health care facilities not evacuate startled residents of Surf Manor adult home in Coney Island, said one of them, Norman Bloomfield. He recalled that another resident exclaimed, “What about us! Why’s he telling us to stay?”


The commissioners made the recommendation to Mr. Bloomberg and Mr. Cuomo because they said they believed that the inherent risks of transporting the residents outweighed the potential dangers from the storm.


In interviews, senior Bloomberg and Cuomo aides did not express regret for keeping the residents in place.


“I would defend all the decisions and the actions” by the health authorities involving the storm, said Linda I. Gibbs, a deputy mayor. “I feel like I’m describing something that was a remarkable, lifesaving event.”


Dr. Nirav R. Shah, the state health commissioner, who regulates nursing homes, said: “I’m not even thinking of second-guessing the decisions.”


Still, officials in New Jersey and in Nassau County adopted a different policy, evacuating nursing homes in coastal areas well before the storm.


Contradictory Forecasts


The city’s experience with Tropical Storm Irene last year weighed heavily on state and city health officials and contributed to their underestimating the impact of Hurricane Sandy, according to records and interviews.


Before Tropical Storm Irene, the officials ordered nursing homes and adult homes to evacuate. The storm caused relatively minor damage, but the evacuation led to millions of dollars in health care, transportation, housing and other costs, and took a toll on residents.


As a result, when Hurricane Sandy loomed, the officials were acutely aware that they could come under criticism if they ordered another evacuation that proved unnecessary.


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