Big money gets in on Cabinet nomination fights

WASHINGTON — As former Sen. Chuck Hagel seeks to fend off critics aiming to derail his confirmation as Defense secretary, he has an incongruous ally: a Pittsburgh philanthropist who made his fortune as one of the world's top horse-race bettors.

Bill Benter, a prolific donor to Democrats and liberal groups who keeps a low public profile, financed an ad campaign by a group of centrist national security veterans who hailed Hagel's "bipartisanship and independence of conscience and mind."

Benter's backing of Hagel, who will appear Thursday before the Senate Armed Services Committee, comes as a small number of extremely rich donors are increasingly engaging in independent efforts to shape national politics. The trend has rapidly accelerated in campaigns since federal court decisions in 2010 opened the door to unfettered political spending by corporations and wealthy individuals.

Now the money wars have moved into a new venue: the debate over Cabinet nominees, who traditionally have not had to endure a rough-and-tumble campaign to get confirmed. Some of the players are financed by deep-pocketed interests whose identities are unknown.

A cluster of opaque groups, some of which recently sprang into existence, have run television ads blasting Hagel as weak on Israel and hostile to gays. His critics include some of the conservative advocacy organizations that fought vigorously against President Obama's reelection, such as the Iowa-based American Future Fund, whose donors remain a mystery.

The anti-Hagel campaign, reminiscent of fierce battles over Supreme Court nominees such as Robert H. Bork in 1987, alarmed longtime colleagues of the former Nebraska senator, a Republican.

"This isn't good for America," said Gary Hart, a former Democratic senator from Colorado. "It is terribly poisonous. And it just starts a very, very bad precedent."

Hart and other former top government officials who are part of a loosely organized council called the Bipartisan Group wrote a letter defending Hagel, which Benter had published in a half-page ad in the Washington Post. Benter, a backer of the liberal pro-Israel group J Street, also paid to place the bipartisan group's message for a week in Politico's Playbook, an email digest of political news that is a must-read among capital insiders.

The intense fight over Hagel spotlights how wealthy interests are seeking to shape policy even beyond campaigns and traditional lobbying.

"It's a sign of the times and foreshadows what we're going to see a lot more of in regards to appointments and issue fights," said Robert Weissman, president of Public Citizen, which advocates for campaign finance reform. "Obviously, anyone who spends huge amounts of money to advocate for a Cabinet official is going to have a reasonable expectation of special access to that person."

Administration officials, who requested anonymity to discuss the nomination process, dismissed the notion that Hagel would be indebted to Benter, noting that a wide array of prominent foreign policy veterans have endorsed the former senator to lead the Pentagon.

Benter, whose role in the Hagel fight was first reported by Foreign Policy magazine, did not respond to interview requests. Messages left for him were returned by Tony Podesta, a prominent Washington lobbyist, who described Benter as "an active citizen" who was asked by the Bipartisan Group to spread its message.

Podesta would not say how much Benter had spent, but added that the campaign did not include any lobbying. "In the greater scheme of things, it was a pittance," he said.

A math whiz who parlayed his knack for statistics into a computerized system that helped him win untold millions betting on horse races in Hong Kong, Benter has given more than $450,000 to Democrats and liberal political groups in the last decade, according to Federal Election Commission reports.

Benter now runs a medical transcription company in Pittsburgh, where he is a regular on the opera scene and gives generously to cultural and educational institutions, according to financial records and published reports.

He keeps a low profile in national politics, but his name surfaced two years ago when the Washington Times reported that a Hong Kong business associate of Benter, named Consolacion Esdicul, had donated more than $800,000 to J Street at Benter's behest. She was the group's biggest donor in the 2008-09 fiscal year.

Associates said they did not think Benter knew Hagel personally or had any business interests in the defense industry. They said he appeared motivated to jump into the controversy after seeing the attacks mounted against Hagel.

"He said he was very upset because he felt there was a great deal of distortion of the facts and personal attacks that were unwarranted," said Henry Siegman, president of the New York-based U.S./Middle East Project, who was contacted by Benter about organizing a pro-Hagel effort. "He is not someone to the best of my knowledge involved in defense issues per se. His concern is American policy in the region."

Siegman reached out to members of the Bipartisan Group, an advisory council to his group that has included former national security advisors Brent Scowcroft and Zbigniew Brzezinski, as well as Hagel. Siegman said its members decided there was a need to clarify positions Hagel had taken on the Israel-Palestinian negotiations as part of the group, and Benter offered to pay to publicize the group's defense of his record.

Siegman said he thought the campaign Benter financed had some impact on Hagel's behalf.

"I hope that at the very least he calls him and thanks him," he said.

matea.gold@latimes.com

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Rape trial of teenaged football players to be open to public: Ohio judge

(Reuters) – The controversial trial of two high school football players accused of raping a classmate will remain open to the public and will not be relocated to another town, an Ohio judge ruled on Wednesday.

Prosecutors and an attorney representing the accuser had sought a closed trial, arguing that public access to the juvenile trial would subject the accuser to unwanted publicity and make potential witnesses reluctant to testify.

Visiting Hamilton County Judge Tom Lipps said the presence of the media would prevent inaccurate reporting and enhance public confidence in the juvenile justice system, according to his written ruling, a copy of which was seen by Reuters.

“An open hearing is especially valuable where rumors, mischaracterizations and opinions unsupported by facts have reportedly been repeated in social media postings and other published outlets,” Lipps wrote. “An open hearing will diminish the influence of such postings and publications.”

Prosecutors have accused Ma’Lik Richmond and Trent Mays, both 16, of raping a classmate at a party attended by many teammates last August in Steubenville, a close-knit city of 19,000 near the Pennsylvania border.

The case attracted national attention after the hacker activist group Anonymous publicized a picture of two young men carrying a girl by her wrists and ankles and released a video showing other young men joking about the alleged assault.

Richmond’s lawyer, Walter Madison, said previously on CNN that his client was one of the young men in the photograph – which he said was taken out of context – but does not appear in the video. A lawyer for Mays has not publicly commented on the postings.

Community leaders have accused authorities of protecting the school’s popular football program by not charging more players who could have prevented the alleged attack.

Lipps also ruled on Wednesday that the trial will remain in Steubenville. He set a trial date for March 13.

Reuters generally does not identify people who say they have been victims of sex crimes.

(Editing by Paul Thomasch, Bernard Orr)

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Patty Andrews of Andrews Sisters dead at 94

LOS ANGELES (AP) — Patty Andrews, the last surviving member of the singing Andrews Sisters trio whose hits such as the rollicking "Boogie Woogie Bugle Boy of Company B" and the poignant "I Can Dream, Can't I?" captured the home-front spirit of World War II, died Wednesday. She was 94.

Andrews died of natural causes at her home in the Los Angeles suburb of Northridge, said family spokesman Alan Eichler in a statement.

Patty was the Andrews in the middle, the lead singer and chief clown, whose raucous jitterbugging delighted American servicemen abroad and audiences at home.

She could also deliver sentimental ballads like "I'll Be with You in Apple Blossom Time" with a sincerity that caused hardened GIs far from home to weep.

"When I was a kid, I only had two records and one of them was the Andrews Sisters. They were remarkable. Their sound, so pure," said Bette Midler, who had a hit cover of "Bugle Boy" in 1973. "Everything they did for our nation was more than we could have asked for. This is the last of the trio, and I hope the trumpets ushering (Patty) into heaven with her sisters are playing "Boogie Woogie Bugle Boy."

From the late 1930s through the 1940s, the Andrews Sisters produced one hit record after another, beginning with "Bei Mir Bist Du Schoen" in 1937 and continuing with "Beat Me Daddy, Eight to the Bar," ''Rum and Coca-Cola" and more. They recorded more than 400 songs and sold over 80 million records, several of them going gold.

Other sisters, notably the Boswells, had become famous as singing acts, but mostly they huddled before a microphone in close harmony. The Andrews Sisters — LaVerne, Maxene and Patty — added a new dimension. During breaks in their singing, they cavorted about the stage in rhythm to the music.

Their voices combined with perfect synergy. As Patty remarked in 1971: "There were just three girls in the family. LaVerne had a very low voice. Maxene's was kind of high, and I was between. It was like God had given us voices to fit our parts."

Kathy Daris of the singing Lennon Sisters recalled on Facebook late Wednesday that the Andrews Sisters "were the first singing sister act that we tried to copy. We loved their rendition of songs, their high spirit, their fabulous harmony."

The Andrews Sisters' rise coincided with the advent of swing music, and their style fit perfectly into the new craze. They aimed at reproducing the sound of three harmonizing trumpets.

"I was listening to Benny Goodman and to all the bands," Patty once remarked. "I was into the feel, so that would go into my own musical ability. I was into swing. I loved the brass section."

Unlike other singing acts, the sisters recorded with popular bands of the '40s, fitting neatly into the styles of Benny Goodman, Glenn Miller, Jimmy Dorsey, Bob Crosby, Woody Herman, Guy Lombardo, Desi Arnaz and Russ Morgan. They sang dozens of songs on records with Bing Crosby, including the million-seller "Don't Fence Me In." They also recorded with Dick Haymes, Carmen Miranda, Danny Kaye, Al Jolson, Jimmy Durante and Red Foley.

The Andrews' popularity led to a contract with Universal Pictures, where they made a dozen low-budget musical comedies between 1940 and 1944. In 1947, they appeared in "The Road to Rio" with Bing Crosby, Bob Hope and Dorothy Lamour.

The trio continued until LaVerne's death in 1967. By that time the close harmony had turned to discord, and the sisters had been openly feuding.

Midler's cover of "Bugle Boy" revived interest in the trio. The two survivors joined in 1974 for a Broadway show, "Over Here!" It ran for more than a year, but disputes with the producers led to the cancellation of the national tour of the show, and the sisters did not perform together again.

Patty continued on her own, finding success in Las Vegas and on TV variety shows. Her sister also toured solo until her death in 1995.

Her father, Peter Andrews, was a Greek immigrant who anglicized his name of Andreus when he arrived in America; his wife, Olga, was a Norwegian with a love of music. LaVerne was born in 1911, Maxine (later Maxene) in 1916, Patricia (later Patty, sometimes Patti) in 1918.

All three sisters were born and raised in the Minneapolis area, spending summers in Mound, Minn., on the western shores of Lake Minnetonka, about 20 miles west of Minneapolis.

Listening to the Boswell Sisters on radio, LaVerne played the piano and taught her sisters to sing in harmony; neither Maxene nor Patty ever learned to read music. All three studied singers at the vaudeville house near their father's restaurant. As their skills developed, they moved from amateur shows to vaudeville and singing with bands.

After Peter Andrews moved the family to New York in 1937, his wife, Olga, sought singing dates for the girls. They were often turned down with comments such as: "They sing too loud and they move too much." Olga persisted, and the sisters sang on radio with a hotel band at $15 a week. The broadcasts landed them a contract with Decca Records.

They recorded a few songs, and then came "Bei Mir Bist Du Schoen," an old Yiddish song for which Sammy Cahn and Saul Kaplan wrote English lyrics. (The title means, "To Me You Are Beautiful.") It was a smash hit, and the Andrews Sisters were launched into the bigtime.

Their only disappointment was the movies. Universal was a penny-pinching studio that ground out product to fit the lower half of a double bill. The sisters were seldom involved in the plots, being used for musical interludes in film with titles such as "Private Buckaroo," ''Swingtime Johnny" and "Moonlight and Cactus."

Their only hit was "Buck Privates," which made stars of Abbott and Costello and included the trio's blockbuster "Boogie Woogie Bugle Boy from Company B."

In 1947, Patty married Martin Melcher, an agent who represented the sisters as well as Doris Day, then at the beginning of her film career. Patty divorced Melcher in 1949 and soon he became Day's husband, manager and producer.

Patty married Walter Weschler, pianist for the sisters, in 1952. He became their manager and demanded more pay for himself and for Patty. The two other sisters rebelled, and their differences with Patty became public. Lawsuits were filed between the two camps.

"We had been together nearly all our lives," Patty explained in 1971. "Then in one year our dream world ended. Our mother died and then our father. All three of us were upset, and we were at each other's throats all the time."

Patty Andrews is survived by her foster daughter, Pam DuBois, a niece and several cousins. Weschler died in 2010.

A memorial service is planned in Los Angeles, with the date to be determined.

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Well: Myths of Weight Loss Are Plentiful, Researcher Says

If schools reinstated physical education classes, a lot of fat children would lose weight. And they might never have gotten fat in the first place if their mothers had just breast fed them when they were babies. But be warned: obese people should definitely steer clear of crash diets. And they can lose more than 50 pounds in five years simply by walking a mile a day.

Those are among the myths and unproven assumptions about obesity and weight loss that have been repeated so often and with such conviction that even scientists like David B. Allison, who directs the Nutrition Obesity Research Center at the University of Alabama at Birmingham, have fallen for some of them.

Now, he is trying to set the record straight. In an article published online today in The New England Journal of Medicine, he and his colleagues lay out seven myths and six unsubstantiated presumptions about obesity. They also list nine facts that, unfortunately, promise little in the way of quick fixes for the weight-obsessed. Example: “Trying to go on a diet or recommending that someone go on a diet does not generally work well in the long term.”

Obesity experts applauded this plain-spoken effort to dispel widespread confusion about obesity. The field, they say, has become something of a quagmire.

“In my view,” said Dr. Jeffrey M. Friedman, a Rockefeller University obesity researcher, “there is more misinformation pretending to be fact in this field than in any other I can think of.”

Others agreed, saying it was about time someone tried to set the record straight.

“I feel like cheering,” said Madelyn Fernstrom, founding director of the University of Pittsburgh Weight Management Center. When it comes to obesity beliefs, she said, “We are spinning out of control.”

Steven N. Blair, an exercise and obesity researcher at the University of South Carolina, said his own students believe many of the myths. “I like to challenge my students. Can you show me the data? Too often that doesn’t come into it.”

Dr. Allison sought to establish what is known to be unequivocally true about obesity and weight loss.

His first thought was that, of course, weighing oneself daily helped control weight. He checked for the conclusive studies he knew must exist. They did not.

“My goodness, after 50-plus years of studying obesity in earnest and all the public wringing of hands, why don’t we know this answer?” Dr. Allison asked. “What’s striking is how easy it would be to check. Take a couple of thousand people and randomly assign them to weigh themselves every day or not.”

Yet it has not been done.

Instead, people often rely on weak studies that get repeated ad infinitum. It is commonly thought, for example, that people who eat breakfast are thinner. But that notion is based on studies of people who happened to eat breakfast. Researchers then asked if they were fatter or thinner than people who happened not to eat breakfast — and found an association between eating breakfast and being thinner. But such studies can be misleading because the two groups might be different in other ways that cause the breakfast eaters to be thinner. But no one has randomly assigned people to eat breakfast or not, which could cinch the argument.

So, Dr. Allison asks, why do yet another study of the association between thinness and breakfast? “Yet, I can tell you that in the last two weeks I saw an association study of breakfast eating in Islamabad and another in Inner Mongolia and another in a country I never heard of.”

“Why are we doing these?” Dr. Allison asked. “All that time and effort is essentially wasted. The question is: ‘Is it a causal association?’” To get the answer, he added, “Do the clinical trial.”

He decided to do it himself, with university research funds. A few hundred people will be recruited and will be randomly assigned to one of three groups. Some will be told to eat breakfast every day, others to skip breakfast, and the third group will be given vague advice about whether to eat it or not.

As he delved into the obesity literature, Dr. Allison began to ask himself why some myths and misconceptions are so commonplace. Often, he decided, the beliefs reflected a “reasonableness bias.” The advice sounds so reasonable it must be true. For example, the idea that people do the best on weight-loss programs if they set reasonable goals sounds so sensible.

“We all want to be reasonable,” Dr. Allison said. But, he said, when he examined weight-loss studies he found no consistent association between the ambitiousness of the goal and how much weight was lost and how long it had stayed off. This myth, though, illustrates the tricky ground weight-loss programs have to navigate when advising dieters. The problem is that on average people do not lose much – 10 percent of their weight is typical – but setting 10 percent as a goal is not necessarily the best strategy. A very few lose a lot more and some people may be inspired by the thought of a really life-changing weight loss.

“If a patient says, ‘Do you think it is reasonable for me to lose 25 percent of my body weight,’ the honest answer is, ‘No. Not without surgery,’” Dr. Allison said. But, he said, “If a patient says, ‘My goal is to lose 25 percent of my body weight,’ I would say, ‘Go for it.’”

Yet all this negativism bothers people, Dr. Allison conceded. When he talks about his findings to scientists, they often say: “O.K., you’ve convinced us. But what can we do? We’ve got to do something.” He replies that scientists have an ethical duty to make clear what is established and what is speculation. And while it is fine to recommend things like bike paths or weighing yourself daily, scientists must make sure they preface their advice with the caveat that these things seem sensible but have not been proven.

Among the best established methods is weight-loss surgery, which, of course, is not right for most people. But surgeons have done careful studies to show that on average people lose substanial amounts of weight and their health improves, Dr. Allison said. For dieters, the best results occur with structured programs, like ones that supply complete meals or meal replacements.

In the meantime, Dr. Allison said, it is incumbent upon scientists to change their ways. “We need to do rigorous studies,” he said. “We need to stop doing association studies after an association has clearly been demonstrated.”

“I never said we have to wait for perfect knowledge,” Dr. Allison said. But, as John Lennon said, “Just give me some truth.”

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Boeing defends using lithium-ion batteries in 787 Dreamliner jet

Despite numerous incidents and high-profile fires involving lithium-ion batteries on its new 787 Dreamliner passenger jet, aerospace giant Boeing Co. defended installing the technology on the plane and vowed to quickly determine what went wrong.

The 787 has been grounded since Jan. 16 by the Federal Aviation Administration because of problems with onboard lithium-ion batteries. Investigators around the world are looking into the matter.

In a conference call announcing Boeing's fourth-quarter earnings, Chief Executive James McNerney said the company is working with customers and the regulatory agencies to get the matter resolved but is not permitted to comment directly on the ongoing investigations.

"I'm confident we will identify the root cause of these incidents," he said. "When we know the answer, we'll know the answer and we'll act on it."

On Monday, the National Transportation Safety Board released its sixth update on the investigation into the lithium-ion battery systems. It said it has begun analyzing the chemical and elemental makeup of the areas of internal short-circuiting and thermal damage. Work is underway in Washington, D.C., Seattle and Japan.

The agency hasn't reached a conclusion on the cause of the incidents, but McNerney said he didn't doubt Boeing's decision to use the new technology.

"Nothing we've learned has told us yet that we have made the wrong choice on the battery technology," he said. "We feel good about the battery technology and its fit for the airplane. We've just got to get to the root cause of these incidents, and we'll take a look at the data as it unfolds."

Japan's All Nippon Airways disclosed that over the last seven months it had to replace 10 of the batteries on its 17 Dreamliner jets because of an array of issues.

"These replacements included not only battery malfunction cases but also that of charging systems," said Jean Saito, a spokeswoman with the airline. "No flights were canceled or delayed due to these cases."

Boeing's McNerney said the number of battery replacements had been slightly higher than expected, but he did not know the exact number of batteries that had been replaced on the 50 Dreamliners the company had delivered so far.

"What I do know is that batteries are replaced on airplanes every day, every type of battery including these batteries," he said. "What we do know is that the replacement cycle that we've been experiencing there has been for maintenance reasons. There's been no instance that we're aware of where a battery has been replaced due to any kind of safety concerns."

Boeing said in its financial statement that it expected "no significant financial impact" from the 787 grounding this year — even though it will not deliver any new 787s as long as the plane is grounded.

Analysts were less confident. Wayne Plucker, an aerospace analyst with research firm Frost & Sullivan, said Boeing was "painting the rosiest picture" it could, assuming there was one solution for the ongoing problems.

"If there's a quick fix with minimum pain then there shouldn't be much of a problem," he said. "But if it involves a major change in technology it will hit their bottom line in this quarter for sure and next quarter as well."

The 787's battery systems were called into question Jan. 7 when a smoldering fire was discovered on the underbelly of a Dreamliner in Boston operated by Japan Airlines after the 183 passengers and 11 crew members had deplaned at the gate.

In an incident Jan. 16 involving All Nippon Airways in southwestern Japan, smoke was seen swirling from the right side of the cockpit after an emergency landing related to the plane's electrical systems. All 137 passengers and crew members were evacuated from the aircraft and slid down the 787's emergency slides. Video of the event was captured by an onboard passenger and has been broadcast worldwide.

Boeing's lithium-ion batteries are made in Japan by Kyoto-based GS Yuasa Corp. The Japan Transport Safety Board, the country's version of the FAA, is heading the investigation into All Nippon's emergency landing and reported fire.

No one was reported injured in the incidents. But the recent events have become a public relations nightmare for Boeing, which has long heralded the Dreamliner as a representation of 21st century air travel.

The 787, a twin-aisle aircraft that can seat 210 to 290 passengers, is the first large commercial jet with more than half its structure made of composite materials (carbon fibers meshed together with epoxy) rather than aluminum sheets. It's also the first large commercial aircraft that extensively uses electrically powered systems involving lithium-ion batteries.

In the fourth quarter, Boeing earned $978 million, or $1.28 per share, a 30% drop from $1.39 billion, or $1.84 per share, a year earlier, but that period included a tax benefit.

Boeing's fourth-quarter profit topped analyst estimates of $1.19 a share. Fourth-quarter revenue reached $22.3 billion, up 14% from the same period in 2011.

Boeing has taken 848 orders for 787s from airlines and aircraft leasing firms around the world. Depending on the version ordered, the price ranges from $206.8 million to $243.6 million per jet.

The Chicago company has delivered 50 of the 787s to eight airlines worldwide. Six are owned by United Airlines, the only U.S. carrier that currently has 787s in its fleet.

Boeing said it expects earnings this year to be $5 to $5.20 per share, with revenue of $82 billion to $85 billion.

Boeing's shares closed up 94 cents, or more than 1%, at $74.59.

william.hennigan@latimes.com

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Pacific Palisades newspaper junkie buys his own

At 6:45 a.m., Alan Smolinisky pads out to his driveway in a hillside cul-de-sac just west of the Getty Villa.

He wears black-and-white-checked flannel pajama bottoms and a pristinely white T-shirt that glows like a beacon in the muted light. In one arm, he carries 15-month-old Charlie, named for billionaire investor Charles Munger.

Bending carefully toward the concrete apron, Smolinisky lets Charlie scoop up three newspapers stuffed in plastic bags.

As Charlie sucks on a bottle in the kitchen, Smolinisky unwraps the Los Angeles Times, the Wall Street Journal and the Financial Times, separating sections into carefully considered piles — news, features, markets coverage. By day's end, he will have spent five hours reading them cover to cover.

Smolinisky, 33, is a newspaper junkie. He abides by Munger's philosophy that high achievers in the financial world tend to be voracious readers.

"I love knowing everything going on everywhere in the world," said Smolinisky, a real estate entrepreneur who keeps a peacock blue Bentley and a red Ferrari in his garage. Late last year, he satisfied a decade-long dream, paying seven figures for the Palisadian-Post. The weekly has chronicled life in Pacific Palisades since 1928 and has been losing money. Smolinisky aims to turn it around.

"Pacific Palisades is my favorite place on Earth, and the Palisadian-Post is my favorite newspaper," he said. "I have a moral obligation to make sure this newspaper arrives every Thursday for as long as I live."

::

At a time when his peers have mostly traded paper for pixels, Smolinisky doesn't own an iPad or a Kindle. He's not much for social media and says he has never used Facebook or Twitter. So it seemed fitting that he chose to buy this decidedly low-tech, old-school paper.

The broadsheet has endeared itself to residents by recording quotidian happenings — births, marriages and deaths, with a panoply of soccer games, high school graduations and Fourth of July parades in between. The paper covers each year's first Palisadian baby, the Mr. and Miss Palisades contest, young residents' accomplishments and 50^th wedding anniversaries.

Bill Bruns, managing editor since 1993, likes to joke that, if a resident of Brentwood won a Nobel Prize, the paper would not cover the story. But if the person lived in the Palisades the news would land on the front page.

When Smolinisky and his friends were tykes, the Pali-Post ran photos of their T-ball and soccer games. When he was a teen, it carried stories about A&A Productions, a company he co-founded that put on dances in the Palisades.

"All the other papers are so serious and scary," he said. "The Palisadian-Post was never like that. It always had this hyper-local, fun attitude of 'we are the luckiest people on Earth to live in such an amazing, crime-free community.' "

What other publication, he mused, would write about where the Department of Water and Power would put its new electrical substation? Or about the colorful gingerbread-themed house on Sunset Boulevard? Or the house across the street from the gingerbread-themed house, the one where the Iranian immigrant erected dozens of Iranian and U.S. flags and a banner reading "Long Live Iran and United States Peace."

Page 2 each week features "Your Two Cents Worth," a column of brief, unsigned questions and opinions from readers. After hearing from readers and editors how popular the sound-off column was, Smolinisky allotted more space.

Donna Vaccarino, an architect, heard Smolinisky speak at a community meeting and was impressed by his pride in owning the paper. "We all want to help him make it a success," she said.

Smolinisky bought the publication and its office building on Via de la Paz. The deal included the Post's money-losing commercial printing business, which he shuttered. He has told the staff he wants to make the paper profitable so that he can restore full-time status to 16 employees, including seven in the newsroom, who have endured years of shortened hours and pay. (An eighth newsroom employee, the copy editor, volunteers her time.)

Smolinisky has learned some quick lessons in newspaper economics. An equipment broker inspected the 37-foot-long Goss printing press in the concrete-lined back shop. It was valued 30 years ago at nearly $400,000. The broker named a price: $15,000.

The fledgling newspaper man was elated at first, having feared that the bulky machine had no value. Then the realization dawned. That was the price he'd have to pay somebody to haul the press away. For now, it remains in place.

Smolinisky finds he doesn't get much done when he's in the newsroom. "I sort of worship the writers and just like to watch them and listen to what they are up to," he said.

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BlackBerry 10 said to be inadequate for helping RIM overcome its ‘demons’

After hitting a seven-year low of $ 6.22 this past summer, shares of Research in Motion (RIMM) have rebounded and climbed more than 100% in the past six months. The company that was previously written off by Wall Street investors has seen a significant boost in recent months as anticipation grows for its BlackBerry 10 operating system. But while a number of analysts have voiced their support for RIM, not everyone is convinced.

[More from BGR: Apple’s 128GB iPad shows the world exactly what Apple does best]

Jan Dawson of Ovum explained, per Benzinga, that RIM continues to “face the twin demons of consumer-driven buying power and a chronic inability to appeal to mature market consumers,” and he believes BlackBerry 10 won’t change this. The analyst said that due to a strong user base of 79 million subscribers and profitability still in the black, the company will remain for years to come. He was quick to note, however, that its glory days are in the past and “it is only a matter of time before it reaches a natural end.”

[More from BGR: Apple unveils new 128GB iPad]

Dawson previously wrote that RIM’s strategy seems to be focused on building the best devices for current BlackBerry users “rather than something that will necessarily win converts from other platforms.”

“The points of differentiation RIM has focused on in teasers for the new platform confirm this – better multitasking, productivity, email, contacts and calendar applications and so on, rather than a better gaming, content consumption or social networking experience,” he said.

Shares of RIM are down more than 6% on Monday, a day before the company is set to unveil its BlackBerry 10 operating system.

This article was originally published on BGR.com

Gadgets News Headlines – Yahoo! News

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ABC: Barbara Walters is out of the hospital

LOS ANGELES (AP) — ABC says Barbara Walters is out of the hospital and recovering from chicken pox at home.

ABC said Tuesday that the 83-year-old host on "The View" is resting comfortably and "getting stronger." There was no indication of when she might return to work.

Walters was hospitalized after falling and cutting her head at a pre-inaugural party in Washington on Jan. 19. The news veteran later was diagnosed with chicken pox, which typically hits people when they are children.

The disease can be serious in older people because of the possibility of complications like pneumonia.

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To Open Eyes, W-2s List Cost of Health Plans

WASHINGTON — As workers open their W-2 forms this month, many will see a new box with information on the total cost of employer-sponsored health insurance coverage. To some, it will be a surprise, perhaps even a shock.

Workers often have little idea how much they and their employers are paying for coverage. In many cases, economists say, workers give up cash compensation to get and keep health benefits.

The disclosures, required by the 2010 health care law, are meant to make workers more cost-conscious. Health benefits are still tax-free. But labor unions and employer groups say it could be easier to tax them in the future, now that employers must report their value to the government.

The new information appears in Box 12 of the standard W-2 form, with a two-letter code, DD. The box shows the “cost of employer-sponsored health coverage.” And that amount is not taxable, the Internal Revenue Service says on the back of the form.

Jay J. Makled, a union steward for the United Automobile Workers at the Ford plant in Dearborn, Mich., described his reaction after seeing that his health coverage cost nearly $16,000 last year: “It’s quite expensive. I was surprised to see how much the company was paying for that benefit.”

Hourly employees represented by the union there said they generally did not pay any of the premium.

The number on the W-2 form is supposed to reflect the part of the cost paid by the employer and the part paid by the employee.

Prof. Nicole Huberfeld, an expert on health law at the University of Kentucky, who received her W-2 form on Monday, said, “Most people who get health insurance from their employers have no idea how much it costs.”

“People are often shocked when they see the cost, $12,000 to $16,000 a year,” Ms. Huberfeld said. “Many Americans believe this is something they get free. But employers pay lower wages because they provide insurance.”

In 2012, according to an annual survey by the Kaiser Family Foundation, premiums for employer-sponsored health insurance averaged $5,615 a year for single coverage and $15,745 for family coverage. Over five years, the costs have increased 25 percent for individual coverage and 30 percent for family coverage.

“Health coverage is a big piece of people’s income and a large part of the social welfare budget,” said C. Eugene Steuerle, a tax economist at the Urban Institute. “But the benefits are not taxable, and most of the spending is hidden, so we don’t consider the trade-offs. If we want to get control of health care costs, people have to be aware of them.”

That is the goal of the disclosure requirement, which was proposed by a bipartisan group of senators: two Republicans, Charles E. Grassley of Iowa and Michael B. Enzi of Wyoming, and two Democrats, Max Baucus of Montana and Ron Wyden of Oregon.

Congress acted after Peter R. Orszag, then the director of the Congressional Budget Office, told lawmakers: “The economic evidence is overwhelming, the theory is overwhelming, that when your firm pays for your health insurance, you actually pay through reduced take-home pay. The firm is not giving that to you for free.”

The tax-free treatment of employer-provided health benefits is the largest tax break in the tax code, costing the government roughly $180 billion a year in lost revenue, or 80 percent more than the home mortgage interest deduction, according to the administration.

Katie W. Mahoney, the executive director of health policy at the U.S. Chamber of Commerce, said, “It’s useful for employees to know the value of coverage their employers provide.” But she said some employers worried that reporting the benefit on the W-2 form could lead to taxing the benefit.

“That’s not the intent of the current requirement,” Ms. Mahoney said. “But once the information is collected by the government, it’s very easy for another administration to have a different intent.”

An employee of the A.F.L.-C.I.O. whose health coverage was listed as costing more than $20,000 said: “That knocks my socks off. When I saw the number, my eyes popped out. I appreciate my employer all the more.”

The employee said he had been told not to discuss the cost publicly because the union did not want to suggest that some employees had “Cadillac coverage.”

An employer that fails to comply with the reporting requirement could be subject to penalties of $200 per W-2 form, up to a maximum of $3 million, tax lawyers said.

Employers are exempt from the reporting obligation if they are required to file fewer than 250 W-2 forms, the I.R.S. said. That could change, but the agency said employers would be given at least six months’ notice.

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Amazon.com sales jump 22% but profit drops 45% in fourth quarter

Amazon.com Inc. saw big sales during the holiday season, reporting Tuesday that fourth-quarter revenue rose 22% to $21.27 billion from a year earlier.

But the Internet retail giant's sales and earnings missed Wall Street's estimates. Profit for the three months that ended Dec. 31 declined 45% to $97 million, or 21 cents a share, compared with $177 million, or 38 cents, in the same quarter of 2011.

Analysts had expected the e-commerce company to post revenue of $22.26 billion and earnings of 27 cents a share.

Nonetheless, Amazon's stock surged in after-hours trading, rising more than 9% on signs the company's operating margins were improving. During regular trading before earnings were released, shares closed down $15.69, or 5.7%, at $260.35.

Operating income was a highlight of the company's quarterly results, increasing 56% to $405 million in the fourth quarter, compared with $260 million a year earlier.

For the current quarter, Amazon expects sales of $15 billion to $16.6 billion, a 14% to 26% growth from the first quarter of 2012.

It was a good Christmas for Amazon's Kindle family. The company said that for the second year in a row, its tablet was the most popular item for customers, with the Kindle Fire HD the "No. 1 bestselling, most gifted and most wished-for product" across the company's merchandise lineup.

"At year-end, Kindle Fire HD, Kindle Fire, Kindle Paperwhite and Kindle held the top four spots on the Amazon worldwide bestseller charts since launch," the company said.

As is typical for Amazon, it did not break out sales figures for its tablets and e-readers.

Jeff Bezos, founder and chief executive of Amazon, said the company had seen huge growth in its electronic book business as consumers shift to digital texts.

"We're now seeing the transition we've been expecting," he said in a statement. "After five years, eBooks is a multibillion-dollar category for us and growing fast — up approximately 70% last year. In contrast, our physical book sales experienced the lowest December growth rate in our 17 years as a book seller, up just 5%. We're excited and very grateful to our customers for their response to Kindle."

Amazon also said its digital media selection grew to more 23 million movies, TV shows, songs, magazines, books, audio books, apps and games in 2012, an increase from 19 million at the end of 2011.

andrea.chang@latimes.com

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