DealBook Briefing: How California Could Win the U.S. Tighter Data Privacy


More from yesterday’s scoop by Michael de la Merced and Andrew:

“This will both broaden the ownership across the firm and help us remain employee controlled for generations to come,” Bridgewater’s co-chief executives, David McCormick and Eileen Murray, wrote in a letter to clients that was reviewed by DealBook.

But: Giving top executives more control might change Bridgewater’s controversial culture of “radical transparency,” in which employees are encouraged to confront each other openly. The philosophy has helped make Bridgewater famous — and to give it high staff turnover.

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Pascal Rossignol/Reuters

Amazon is entering the drug business. It won’t be easy.

It was a day the health care industry had long feared. The e-commerce giant bought its way into the prescription industry yesterday, acquiring the mail-order drug company PillPack for around $1 billion. Walmart had offered around $700 million.

Amazon’s vision: To do to drugs what it has to books (and most other things), by making it easy for people to get medicines in the mail. PillPack already operates across the U.S., and Amazon is likely to cut its prices. The health care industry is accustomed to drug prices rising steeply.

But the FT points out that Amazon will be swimming against the tide. People are abandoning most kinds of store for online shopping, but the number of prescriptions being filled at physical pharmacies is actually rising.

Still, the markets clearly think Amazon can win. Shares in drugstore chains like CVS, Rite Aid and Walgreens plummeted yesterday.

What happens to the losers of the bank stress tests

Most American banks passed the second round of the Fed’s stress tests with flying colors, according to the results published yesterday. Now that they’ve proved they have enough cash to withstand economic turmoil, the Fed will let them pay out more than $125 billion to shareholders. But three lenders fell short:

• Deutsche Bank’s U.S. arm, unsurprisingly, failed the tests because of “widespread and critical deficiencies” in its financial controls. It will be restricted in how much money it can transfer back to its German headquarters.

• Goldman Sachs and Morgan Stanley didn’t meet minimum capital levels, because of one-time accounting losses caused by the Republican tax cuts. They were ordered to keep their shareholder payouts at last year’s level and build up their capital buffers — but don’t expect them to be hamstrung next year.

The takeaway: Banks will argue that their improved health means they don’t need as many regulations. But Stephen Gandel of Bloomberg Opinion argues that bank shareholders still have reason to worry about earnings.

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The scary ending Netflix needs to avoid

Netflix’s stock price has nearly doubled since the start of the year. And, unlike other technology companies, its runaway success hasn’t stirred up public or political backlash — so far. But the Economist argues that the streaming service’s continued success could be its undoing:

Some suspect that Netflix harbors ambitions to monopolize TV. Such a move would concentrate enormous amounts of cultural power in the hands of a few content commissioners and algorithms. It would hollow out support for public-service broadcasters, by reducing their audience, and risk leaving poorer users with fewer affordable entertainment options. And it would inevitably find it much harder to avoid the attention of regulators.

The bottom line: Competition will keep consumers, regulators and lawmakers happy.

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Yana Paskova for The New York Times

A new Lehman drama is questioning capitalism

Almost a decade after Lehman Brothers fell, the investment bank is being resurrected — on a London stage, in the form of “The Lehman Trilogy.” The play, by the Italian playwright Stefano Massini, traces the history of the firm from its origins as an Alabama textiles trading shop to its collapse as a titan of Wall Street.

The actor Ben Miles, one of the three stars, explained the drama’s intent to the FT:

“It asks very good questions about when did capitalism become, in the eyes of many, a bad idea? When did it turn from a very valid pursuit into something slightly tainted? When did this small family business that grew and grew begin to transform itself into something that none of the original founders had envisaged? And why did it do that?”

Revolving door

Deloitte’s C.E.O., Cathy Engelbert, won’t be nominated for a second term, upsetting succession plans at the accounting and consulting firm. (WSJ)

Two top Paulson & Company executives, Michael Barr and Jonathan Shumaker, are spinning out its real estate funds into a new firm. (Reuters)

Google has hired Karan Bhatia, who was president of G.E.’s government affairs unit, as head of policy. (Axios)

The speed read

Deals

• Shareholders of 21st Century Fox are scheduled to vote on Walt Disney’s $71.3 billion takeover bid on July 27. At least one is asking Fox to seriously consider any counteroffer from Comcast.

• President Trump said SoftBank planned to invest $72 billion in the U.S., up from $50 billion. It wasn’t clear where the number came from. (Reuters)

• The Chinese phone maker Xiaomi raised $4.7 billion in its I.P.O. in Hong Kong, at the low end of the expected range, for a valuation of $54 billion. (Bloomberg)

• Shares of BJ’s Wholesale Club rose over 29 percent in their market debut yesterday, valuing the retailer at $2.8 billion. (WSJ)

Politics and policy

• Inside the White House’s quiet campaign to convince Justice Anthony Kennedy to retire. (NYT)

• Jerome Powell, the Fed’s chairman, assured lawmakers that the central bank was being cautious as it raises interest rates. (Bloomberg)

• Robert Mueller has subpoenaed a longtime aide to Roger Stone, one of President Trump’s outside advisers. Paul Manafort owes the Russian oligarch Oleg Deripaska $10 million.

Tech

• Safety precautions are expected to be front and center as Uber moves to restart its testing of autonomous vehicles. (Information)

• The trade war has China questioning its tech chops. (WSJ)

• Morgan Stanley says Google should give every U.S. household a smart speaker. It would only cost $3.3 billion. (CNBC)

• Tech giants are trying to sell Hollywood on cloud computing. (TechCrunch)

• Kroger will test autonomous grocery-delivery vehicles. (Verge)

Best of the rest

• America’s cheese stockpile is at a 100-year high (1.385 billion pounds, if you’re hungry). (WXYZ)

• A former Pixar employee says open sexism is rife there. (Variety)

• Here’s how a start-up aims to turn would-be homeowners into cash buyers. (Bloomberg)

• Authorities charged a former Equifax executive with insider trading around its data breach. (Hill)

• The S.E.C. plans to loosen regulations on exchange-traded funds. (FT)

• The quest to keep a French fry crispy for an hour. (NYT)

You can find live updates throughout the day at nytimes.com/dealbook.

We’d love your feedback. Please email thoughts and suggestions to bizday@nytimes.com.

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California Results Are Consistent With a Competitive House Race


Democrats claimed an outright majority of votes in California’s 49th, which makes them clear favorites to win the district in the general election. In five other districts, the Democrats received between 45 percent and 48 percent of the major party vote, setting up races that could be characterized as tossups or leaning Republican, just as they’re currently rated by the Cook Political Report.

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Mike Levin and his wife, Chrissy, on Tuesday night. He will most likely be the Democratic candidate in California’s 49th District, which appears to be the Democrats’ best chance to flip a district in the state in November. CreditHilary Swift for The New York Times

There was one notable outlier: California’s 21st, represented by the Republican David Valadao. Mr. Valadao currently holds 64 percent of the vote, a tally that, historically, would make him all but a lock to win the general election.

It would probably be a mistake to completely write off a competitive race in the 21st District, where Hillary Clinton won by double digits. This is the least-educated congressional district in the country, and Hispanic voters make up a majority of the electorate. Turnout was extremely low. Absentee ballot data indicates that the turnout was particularly weak among Democrats and Hispanic voters. According to Political Data Inc., Democrats had just a three-point edge in returned ballots, compared with their 19-point advantage among those who received a ballot in the mail. Similarly, Latinos made up 38 percent of returns, compared with 60 percent of the mailed ballots.

The low Hispanic turnout in the Central Valley dragged down Democrats across the board, like the incumbent Democratic congressman Jim Costa in the neighboring 16th District (who claimed 53 percent of the vote, with a stronger Democratic turnout), and the Democratic Assemblyman Rudy Salas, who only won 48 percent of the vote. Maybe Democrats will make more gains here in the late balloting than elsewhere.

Democrats, obviously, can’t feel great about low Hispanic turnout. But of the reasons to fall well short of expectations in a district, it’s probably one of the less discouraging ones. It’s not likely to repeat itself elsewhere, and Democrats can reasonably hope for a stronger turnout in the general election. After all, Mr. Salas and Mr. Costa presumably remain heavy favorites in the general election, despite their close contests. If that’s true, Mr. Valadao should still be considered vulnerable.

But Mr. Valadao’s wide margin is probably large enough to merit a modest, tentative reassessment. No congressional candidate has lost a general election in Washington (since 1990) or California while receiving such a large share of the major party vote in a top-two primary. The demographic peculiarities of the 21st District make it easier to imagine weird things happening here, but at the moment it seems like a stretch to characterize this race as merely “leaning Republican.”

A Campaign, a Murder, a Legacy: Robert F. Kennedy’s California Story


Fifty years after his death, friends, aides and journalists recall the senator’s last campaign in California, his assassination in Los Angeles and what came next for the city.

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The Paul Schrade Library at the Robert F. Kennedy Community Schools, the complex that replaced the Ambassador Hotel in Los Angeles. CreditRozette Rago for The New York Times

Reaching into jubilant crowds from atop the back seat of a slow-moving convertible, walking the streets of riot-torn Watts, sitting with Cesar Chavez in the Central Valley — these are the frozen moments of Robert F. Kennedy’s campaign for president in California in 1968.

There is another one, of course, a final one: lying on the kitchen floor of the Ambassador Hotel in Los Angeles, a busboy cradling his head.

The date was June 5, 1968.

Days earlier, Mr. Kennedy had flown into the city to campaign in the California primary, his presidential hopes hanging in the balance. He had just lost to Eugene McCarthy in the primary in Oregon, the first election loss ever for a Kennedy. But Oregon was mostly white; in California, Mr. Kennedy touched his natural constituency — impoverished African-Americans and disenfranchised farmworkers from Mexico.

And so in California, the promise of his candidacy rested: to heal a nation torn by the Vietnam War and divided by race and class. A big win there, his aides hoped, could convince Mr. McCarthy to drop from the race and the power brokers in the Democratic Party to back Mr. Kennedy, clearing a path to the nomination at the convention later that summer in Chicago.

“He said, ‘If I don’t win California I am withdrawing,’” recalled Jeff Greenfield, the former CBS newsman who at the time was a young speechwriter for Mr. Kennedy. “What do they say in the N.B.A.? Win or go home. That was it.”

On election night, word reached Mr. Kennedy at his fifth floor suite of the Ambassador Hotel, his campaign headquarters, that some polling sites in minority neighborhoods of Los Angeles had closed early. He dispatched campaign workers to find out what had happened. When the answer came back, it was good news for the Kennedy campaign: The early closings were because every single registered voter had already cast a ballot.

And then it was all over.

Moving through the pantry of the hotel, after giving his victory speech, Mr. Kennedy was gunned down. Sirhan Bishara Sirhan, said to be motivated by Israel’s treatment of the Palestinians and his hatred of Mr. Kennedy for his support of Israel, was later convicted of the murder.

Mr. Kennedy died the next day, June 6. That day, wrote Richard Goodwin, a Kennedy confidant, “the sixties came to an end in a Los Angeles hospital.”

In the decades after the murder conspiracy theories flourished, the Ambassador fell into disrepair before it was bought by Donald J. Trump, and a long struggle ensued between the future president, conservationists and the Los Angeles school district over what should become of the place.

Finally, the hotel was razed and replaced with a complex of schools for underprivileged children, many of them Latino immigrants, named for Mr. Kennedy.

[Read more about how Mr. Kennedy’s assassination changed American politics.]

On the 50th anniversary of his death, we spoke to friends, aides and journalists who were there in those last days in Los Angeles. The interviews have been condensed and lightly edited.

The Robert F. Kennedy Inspiration Park along Wilshire Boulevard.CreditRozette Rago for The New York Times

We were so excited. The excitement in the Latino community was just infectious. I mean, people were just so excited he was running and people were voting for him.

Mr. Greenfield: For me he was more willing to mock the pieties of politics than anybody I have seen before or since. There’s this scene where he goes to Fresno. And they have a big mall in Fresno. And he said, people ask me why I decided to run for president. And I told them, you know, if I’m running for president, I’m going to go to California. And if I go to California I’m going to get to the Fresno mall. Because after you have seen the pyramids of Egypt and the Taj Mahal, what else is left but the Fresno mall?

Peter Edelman, a professor at Georgetown University’s law school who was a speechwriter for Mr. Kennedy: We get on the plane, it’s a private plane, there’s just four of us. Four chairs and four of us. And the plane takes off and he tells us he’s going to run for president.

‘A Great Perhaps, a Great Maybe’

In the moments before he left his suite to give his speech in the ballroom, Mr. Kennedy’s mood had lightened with the victory. The day before he had traveled 1,200 miles up and down the state, and nearly collapsed at his last stop, in San Diego.

Mr. Kennedy campaigning in the Watts neighborhood of Los Angeles, circa 1968.CreditDavid Hume Kennerly/Getty Images

Mr. Greenfield: There was a degree of buoyancy he had never shown before. Like California freed him. He was free of his brother and became his own man.

Mr. Kennedy addressing a packed ballroom crowd shortly before he was shot. CreditGetty Images

Mr. Schrade: We ran down the stairs, from the fifth, and fortunately caught up with him before he got to the ballroom. Bob was slowly going through the kitchen. “Viva Kennedy! Viva Kennedy!” from the kitchen workers. And shaking hands, signing some autographs.

Mr. Hamill: I went down fairly early. Jimmy Breslin came down right after me. We were all placed at the back of the stage. Plimpton and all the other guys.

Ms. Huerta: I was just shocked by the fact that he didn’t have any security. I think he had one person. Cesar had a lot of death threats. So we always had a contingent of security with Cesar wherever he went. But I didn’t say anything. The moment was so jubilant. I didn’t want to spoil the moment.

Mr. Yaro: I was close enough to shout, ‘Bobby, give us a V!’

Mr. Hamill: Bang bang, bang bang bang. I heard five shots. Some heard six.

Mr. Schrade: I was about six or eight feet behind Bob at that point. Lights went on, and I started shaking violently, and fell. I didn’t know I’d been shot.

Mr. Yaro: I’m sure I was scared to death. I realized I hadn’t taken a picture, of Sirhan taking the life of Kennedy. It dawned on me that I had my camera with me.

Mr. Hamill: I think about it still. I was so happy that I knew the guy. And so sad that in the end it was a great perhaps, a great maybe, that didn’t happen.

Rumors and conspiracy theories flourished over Mr. Kennedy’s assassination.CreditBoris Yaro/Los Angeles Times, via Associated Press

Conspiracy Theories and Missing Evidence

By the mid-1970s, a national feeling of mistrust toward government grew in the wake of the Vietnam War and Watergate. In Washington, lawmakers were holding new hearings on the J.F.K. and M.L.K. assassinations, and looking into abuses of power by the C.I.A. Conspiracy theories flourished. In Los Angeles, some were beginning to doubt that Mr. Sirhan acted alone.

Leading efforts to reopen the case was Mr. Schrade. He thought there might have been a second gunman, and when it emerged that the Los Angeles Police Department had destroyed some evidence, those suspicions grew.

Mr. Schrade — now 93 and still fighting to reopen the case — convinced a young Los Angeles city councilman at the time, Zev Yaroslavsky, to hold hearings on the L.A.P.D.’s role in the investigation. Mr. Yaroslavsky found no basis to support a theory that Mr. Sirhan was not the sole shooter, but it was clear the police had destroyed evidence. His hearings were a rare challenge to the authority of the Los Angeles police, then the pre-eminent power in city politics.

The original entrance to the Ambassador Hotel remains, with the still functioning clock.CreditRozette Rago for The New York Times
Memorabilia from the Ambassador Hotel on display at the school complex.CreditRozette Rago for The New York Times

California Primary Election: Voters Head to the Polls


President Trump has endorsed one of the Republicans, John Cox, which could give Mr. Cox enough votes to win the other slot. Given how overwhelmingly Democratic the state is — and Mr. Cox’s ties to Mr. Trump — that result would no doubt result in many people declaring Mr. Newsom the presumptive next governor.

But if Antonio Villaraigosa, a Democrat and former mayor of Los Angeles, wins that second spot, look out for a competitive, classic North-South battle.

2018 Election Calendar and Results

A full list of elections for the House and Senate, including which races matter most for congressional control.


Here’s the latest:

• Polls close tonight at 8 p.m. California is a notoriously slow state when it comes to counting ballots, but we expect to get a reasonably early projection of the top finishers in the races for governor and Senate.

• Candidates made a last-minute scramble for votes on Monday. In the governor’s race, Mr. Villaraigosa traveled around Los Angeles, ending up with a late-night stop at Pink’s Hot Dogs. Mr. Newsom greeted voters at a diner in Inglewood before heading to San Diego and San Francisco. Mr. Cox showed up at a candidate telephone bank in Riverside County.

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Gavin Newsom, right, a Democratic candidate for governor, and his wife, Jen Siebel Newsom, thanking the staff on Monday at his campaign headquarters in San Francisco.

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Jim Wilson/The New York Times

• Check out photographs from campaigns and primaries around the state.

• Need a primer to understand the stakes of the races on Tuesday? Start here. And here’s an explanation of how the state’s unusual primary system works.

• There were seven Republican districts that voted for Hillary Clinton in 2016. Will the Democrats be able to win those congressional seats? Here is a collection of charts that explore the data behind those key districts.

• How will Latino voting power count in the primary? Here’s what we know. And will younger Asian-Americans help turn Orange County blue? Our reporter went home to find out.

• We have 30 journalists throughout the state. This week, many of them will be on the ground reporting from the most competitive congressional districts, including races in the Central Valley, Orange County and San Diego. We will bring you live updates throughout the day on Tuesday. Follow them here and on Twitter.

• Find your polling place through the secretary of state’s website, and check out the primary calendar for the rest of the midterms year.

Get the latest news on the state in your inbox by signing up for California Today here.

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Antonio Villaraigosa, a Democrat running for governor, campaigned on Monday at a BART stop in Walnut Creek before stopping at Starbucks.

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Jim Wilson/The New York Times

Who will get the blame if Democrats get locked out?

Today is Election Day, which means tomorrow is — depending on the results — Blame Day. The big question: If Democrats get locked out of competitive Republican-held congressional races — a distinct possibility in three districts because of California’s nonpartisan top-two election system — who gets the blame?

Here are some nominees:

The Democratic Congressional Campaign Committee, for lurching from candidate to candidate in some of these districts (until the end), giving voters little help in navigating ballots swimming with the names of mostly unknown Democrats who want to go to Washington.

The California Democratic Party, for failing to groom a bench of candidates for this moment — and for its largely unsuccessful efforts to clear the field.

California’s nonpartisan toptwo election system. This election reform may end up producing the worst-case scenario Democratic and Republican leaders warned about when it was passed by voters in 2010. With so many candidates jumping into the open primary, Democrats are fighting over a set number of voters.

From this point of view, there was little state or national Democrats could do. (And it is not just Democrats. Republicans could get locked out of the November ballot in the governor and Senate race.)

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Candidate signs in Fullerton on Monday.

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Kayla Reefer for The New York Times

Voters, for not figuring out this somewhat overwhelming ballot. (But no. Rule of thumb in politics: Never blame the voters.) — Adam Nagourney

California offers clues for the nation.

The quirks that make the California primary risky for Democrats also make it a leading indicator of the general election.

In California’s nonpartisan top-two system, voters can cast a ballot for any candidate, regardless of party. Historically, that means these top-two primaries look a lot like the general election.

Since 1990, the major party vote share in top-two congressional primaries in Washington State and California has differed from the general election result by an average of three percentage points, an Upshot analysis shows.

That mans the California results will be about as good as any data we are going to get before November. The average House poll over the final three weeks of an election is off by an average margin of 6.2 points, according to FiveThirtyEight. The primary results are a bit like getting a free round of 52 final House polls in early June.

The results are good enough that you can put stock in a surprise. In 2016, Darrell Issa’s seat was rated “Safely Republican” by the Cook Political Report heading into the primary. But he ended up claiming just 50.8 percent of the vote, the closest House election of the cycle.

If this is a wave environment like in 2006 or 2010, which would probably make the Democrats slight to modest favorites to retake the House, it should not be too hard to tell. (Full article is here.) — Nate Cohn

Fluid political affiliations in the 21st District.

Elizabeth Dias

Reporting from the 21st District in the Central Valley.

That even families with different political views can agree is part of why Democrats hope they can turn this district from red to blue in November.

On Monday afternoon, T.J. Cox, a Democratic candidate, visited with David and Dorothy Boldt, of D.E. Boldt Farms, at their ranch in the near-100-degree heat. Dorothy, a registered Republican, voted for Bernie Sanders for president in 2016, while her husband, David, a Democrat, said he held his nose and voted for Hillary Clinton. Both support Mr. Cox’s campaign.

“I care about the whole laundry list of progressive issues, from climate change to a more friendly and open attitude to immigration,” Mr. Boldt said.

Their son, Peter Boldt, 23, a registered Republican who also supports Mr. Cox, displayed an album of photos from their family’s farm, dating back five generations. As Mr. Cox sampled their plums, nectarines and peaches, David talked about how gentleness with the fruit is their specialty. Some of their produce is on shelves in Whole Foods; little stickers on the fruit have the farm’s name on them. “I get emails from Wall Street brokers saying ‘I bit into one of your plums!’” David said.

Mr. Cox peeled off a sticker and stuck it on his shirt like a campaign button.

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T.J. Cox, second from right, is a Democrat running to represent the 21st Congressional District. Dorothy Boldt, center, and her husband, David De Boldt, right, both support Mr. Cox even though she is a Republican and he is a Democrat.

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Ryan Christopher Jones for The New York Times

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California Primary Election: Live Updates


A nail-biter in the 49th District

Jose A. Del Real

Reporting from the 49th District in Orange County, south of Los Angeles.

The primary in the 49th District — one of the most hotly pursued seats by Democrats — remains a nail-biter shortly before Election Day.

The 49th runs along the coastal part of the state, stretching from the southern tip of Orange County down past Encinitas toward San Diego. Campaign ads in the district have been heavy on ocean scenery and personality, if light on policy.

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Sara Jacobs campaigning in Carlsbad, Calif. She is a Democrat running in the competitive 49th District, which voted for Hillary Clinton but elected a Republican representative.

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Sandy Huffaker for The New York Times

Democrats are seeking to flip the district from Republican control as part of their plan to win the House of Representatives in November. But a glut of Democratic candidates and a sharp gap in Democratic voters threatens to split the vote enough to keep liberals out of the general election altogether.

Polls in the district have delivered contradictory signals about who is likeliest to proceed to the general election. The candidates who have most recently ranked in the top two include the Democrats Mike Levin, Doug Applegate and Sara Jacobs, along with the Republicans Rocky Chavez and Diane Harkey.

The tossup status of the race harks back to the 2016 election, when Representative Darrell Issa, the Republican incumbent, won by fewer than 2,000 votes even as voters in the area backed Mrs. Clinton over Mr. Trump by 7 percentage points. Mr. Issa is not running for re-election.

Cities and farms in the Central Valley

Thomas Fuller

Reporting from the 10th District in the Central Valley.

No one is calling him the “Star Wars” candidate just yet, but Josh Harder, who leads a crowded field of Democrats in fund-raising in the 10th Congressional District, says he was grateful for the $2,700 contribution from the director George Lucas, who like Mr. Harder grew up in the Central Valley district.

Mr. Harder, a 31-year-old former technology venture capitalist, has raised $1.5 million, well more than the other Democrats combined.

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Josh Harder and his fiancé at a campaign event in the Central Valley of California. Mr. Harder has raised more money than his Democratic opponents combined in the 10th District race.

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Alpana Aras-King for The New York Times

If you shrank California’s political dynamics down to a single constituency it might look something like the 10th District, a patchwork of liberal-leaning cities and more conservative rural farming communities east of San Jose. There are rows and rows of peach and cherry trees, almond groves and cattle farms. And there are also fast-growing cities like Tracy and Manteca, which increasingly serve as bedroom communities for the San Francisco Bay Area.

In 2016 the Republican incumbent, Jeff Denham, a businessman, squeaked past his Democratic challenger, Michael Eggman, a beekeeper. Mr. Eggman is running again, and other top Democratic contenders are Virginia Madueño, the former mayor of the small city of Riverbank, and Sue Zwahlen, an emergency room nurse.

Mr. Denham, who has raised $3 million, is widely considered a shoo-in on Tuesday. There is also the seemingly remote possibility of two Republicans advancing in the jungle primary: Ted Howze, a veterinarian active in Republican politics in the city of Turlock, is challenging Mr. Denham, although federal filings show he has not raised any money.

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Free Cash to Fight Income Inequality? California City Is First in U.S. to Try


If it is primarily a display, then only the most responsible people should be given cash. But if it is about science, the money must be dispensed more randomly, with the likelihood that some people will waste it on drugs.

At a meeting at City Hall, the SEED project manager Lori Ospina urged that the program be designed to yield valid scientific data. That involves choosing participants on the basis of narrow demographic criteria — perhaps their age, their race, their income.

But that approach could expose the city to charges that the program is not inclusive enough. “The trolls I’ve been dealing with on social media and in real life have very racialized views of how this is going to work,” Mr. Tubbs said. “As the first black mayor of this city, it would be very dangerous if the only people to get this were black.”

He wants to select participants who are most likely to spend their money wisely, generating stories of working poor people lifted by extra cash.

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Shay Holliman emerged from prison with a problem that confronts many local residents: She was eager to work, yet vulnerable to criminal background checks that deny jobs to convicted felons.

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Jason Henry for The New York Times

People like Shay Holliman.

As a child, her mother was incarcerated. She was raised by her grandmother, along with nine other children. They crammed into apartments full of cockroaches, moving from state to state to stay ahead of the bill collectors.

She had a baby. She worked at McDonald’s, but she lacked reliable child care, making the job impossible. She could not pay rent on her $600 a month welfare check.

One night, she found herself walking the Stockton streets, her infant daughter in a carrier against her chest, pulling two suitcases full of everything she owned.

Taking shelter with a sister consumed by drug addiction, she fell into a vortex of violence. She served 11 years in prison for killing a man who she said had attacked her sister.

She emerged with a problem that confronts many people in Stockton: She was eager to work, yet she was vulnerable to criminal background checks that deny jobs to convicted felons.

She worked inside commercial freezers and as a driver. Recently, she took a job at a nonprofit that helps people released from prison set up lives on the outside.

“I’m finally living my dream,” she said.

In some quarters, the basic income experiment has provoked talk that free money will prompt people to ditch work.

“Oh, my,” said Ms. Holliman, who still carries credit card debt of more than $500 and does not earn enough money to regularly buy fresh fruit. “When you’re struggling, you’re going to rush and pay your bills.”

Stockton’s trial is meant to deliver examples of that sentiment, challenging the notion that people needing help have not tried hard enough.

“It’s about changing the narrative around who’s deserving,” the mayor said.

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Awe, Gratitude, Fear: Conflicting Emotions for Korean-Americans in the Era of Trump


The fight over immigration, however, is of little interest to many older Korean immigrants who arrived in the United States decades ago. Instead, they have been captivated by the momentous developments in their native country, after three detainees were released by North Korea this week.

“This is more than stopping nuclear proliferation for us — it is very personal,” said Ellen Ahn, the executive director of Korean Community Services, based in Buena Park. Ms. Ahn’s mother, who was a refugee from North Korea in the 1950s, walked south for days to escape the country when she was 9 years old. Ms. Ahn said she grew up hearing stories of her grandfather being captured by the North Korean Army. “It’s really recent history for our families, all of those kinds of memories are etched in our collective family consciousness.”

Like many of her friends, she stayed up all night watching the Korean-language news on the meeting last month between the leaders of North and South Korea. She texted her 73-year-old mother at 2 a.m. to see if she was watching. “She told me she was in her 12th hour and had been crying the entire time.”

The next morning, her parents went out to celebrate by eating Pyongyang-style cold noodles — the kind the North Korean leader, Kim Jong-un, brought to a banquet during the meeting with President Moon Jae-in.

“To see what is happening is joyous and dramatic,” she added. Ms. Ahn said that fissures between the generations over the Trump administration are not just over issues like immigration; they are also about language. Younger Koreans raised in America rely on English-language media, while older generations voraciously consume news directly from South Korean sources. “People have divided energies,” she said.

Korean-American citizens have historically not been a politically active voting block: Nationally, about 46 percent of eligible voters nationally cast a ballot in 2016, compared with 61 percent among adult citizens overall. This year, though, their vote could be crucial in several competitive congressional races in Orange County.

Statewide, roughly 54 percent of Koreans self-identify as Democrats, according to the National Asian-American Survey, far more reliably liberal than immigrants from China and Vietnam. Nationally, 75 percent of Koreans voted for Hillary Clinton in 2016, according to the same survey.

John Kim, who leads the Korean Federation of Orange County, said he voted for Mr. Trump in part because he believed his business background would help him solve intractable problems, like the Korean conflict.

“I supported him because he said he would do something,” Mr. Kim said. “He is honest and he is doing what he said he would do. He does not stand for nonsense. So to see this now, it is a relief.”

But among critics, anger toward Mr. Trump runs deep. Some view his past comments as racist, pointing to an incident earlier this year when he asked a Korean-American intelligence official, “Where are you from?” When she said she was from New York, he pressed to know where “your people” are from, suggesting the “pretty Korean lady” should negotiate with North Korea.

After Mr. Trump’s pre-dawn news conference on the tarmac, Korean-American leaders all over the country were struggling with how to rectify the White House’s paradoxical positions.

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At the Source OC in Buena Park, a bustling business district in Orange County, Calif., that serves as a kind of suburban Koreatown. More than 325,000 Koreans live in Southern California, with about a third in Orange County.

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Rozette Rago for The New York Times

“We see there are various, blatant contradictions in his general attitude and disposition,” said John Park, 44, the executive director of the MinKwon Center for Community Action, the leading Korean-American activist group in New York.

“In terms of North and South Korea, we do care about family unification; that’s something we’ve been hoping for, for a long time,” Mr. Park said. But, he added, “They are O.K. with splitting up families. They are really doubling down on that position, which is horrifying and inhumane to us.”

Even among those who support negotiations with North Korea, some Korean-Americans say they are skeptical the Trump administration will play a crucial role. Jung-woo Kim, who moved to Fullerton from South Korea when he was 15 and regularly speaks to friends there, said that it was Mr. Moon, the South Korean president, who deserved credit for the recent shifts.

“If you want to have peace, it’s Korean people’s work to do,” said Mr. Kim, who now works for the National Korean American Service & Education Consortium. “Whatever he is doing is not about helping our people. He thinks he deserves the Nobel Prize.”

Mr. Kim is among the activists who hope the fight over immigration will play a key role in the midterm congressional races in Orange County, where Democrats are trying win several seats. Local political experts say Korean voters in the county are evenly split, with about a third each registering as Republican and Democrats and the remainder choosing neither party.

Earlier this year, dozens of people gathered outside Representative Mimi Walters’s district office, urging her to do more to create a path to citizenship. Since Mr. Trump’s election, the activists have focused their ire on Ms. Walters, along with other Republicans in Orange County who are facing tough re-election bids this year.

“They haven’t done very much for us, even though there are so many people here impacted,” said Erica Kim, who has lived in Orange County for years and now works as a parent organizer at the Korean Resource Center. “My daughter thinks she is American. My friends, they want to do something to help her. I tell them: The only way we can change anything is vote and get people who are elected to listen.”

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Officers’ Names Remain Secret Weeks After Fatal Shooting of a Black Man in California


He said the church was filled on Friday with friends and family members who said their final goodbyes to Mr. Yarber — a father of three whose friends called him Butchie — and Barstow residents who called for justice.

“A lot of people talked about the need for ongoing protests and marches — a lot more than I would expect at a funeral,” Mr. Merritt said.

In a statement on Monday, the Police Department said officers responded to a report of a reckless driver on March 18 and Mr. Yarber fled when officers tried unsuccessfully to stop him. The statement said that further investigation showed that the car, a blue Hyundai, was stolen.

So when someone called to report a “suspicious vehicle” — the black Mustang — in a Walmart parking lot on April 5 and provided a license plate number, officers saw that it was registered to someone whose last name was Yarber and, once on the scene, recognized the driver, the statement said.

Officers told Mr. Yarber to get out but he did not, the statement said, adding that he “continued to accelerate his vehicle forward and in reverse toward the officers, almost hitting one officer” before striking the rear of another patrol car occupied by an officer.

The statement added, “The officers feared for their safety and the safety of others and an officer-involved shooting occurred.”

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Mourners at the funeral for Mr. Yarber.

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James Tensuan for The New York Times

The car was riddled with bullets. Mr. Yarber was killed and one of his three passengers was shot and hospitalized. She has since been released.

It all happened very quickly, said Marlon Hawkins, 41, who was in the front seat of the car at the time of the shooting.

He said they had just pulled in when several police cars arrived, boxing them in. There was a lot of yelling and then a lot of gunfire.

Mr. Hawkins said he jumped out of the car and onto the ground. He suffered injuries and was taken to the hospital for a few hours. He got a phone call and learned that Mr. Yarber was dead.

“I was just devastated,” Mr. Hawkins said. “It was just surreal. It was happening so fast, I couldn’t believe it. I was sick.”

Mr. Merritt has repeatedly called on the authorities to release the officers’ names.

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Flowers and candles were left in Mr. Yarber’s memory at a Walmart parking lot in Barstow, Calif.

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James Tensuan for The New York Times

In its statement, the Barstow police said they were “precluded by state law from providing or sharing any information related to the personnel records of the involved officers.”

The department said in its statement that the officers were wearing body cameras and that the footage was turned over to the San Bernardino County Sheriff’s Department. It has not been released publicly.

“This case is important because it really begins to explore the idea that law enforcement is above the law,” Mr. Merritt said.

Citing a California Supreme Court decision, Mr. Merritt argued that in the case of an officer-involved shooting, police departments that want to withhold names must show clear evidence that there would be a particular threat to officers involved if their names were made public.

“They’ve decided that they would go into a black box. It’s almost as if they’re hiding, waiting for everybody to go away,” he said. “We’re not going to go away.”

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With Taunts and Guile, the Golden State Killer Left a Trail of Horror


Beyond Sacramento, that year of 1977 unfolded apace: a new president named Jimmy Carter; a hot movie called “Star Wars”; the death of Elvis. But in and around the capital city of California, reports of yet another horrific attack by the East Area Rapist overshadowed everyday life, becoming the obsession of, among others, Detective Daly.

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The street where Mr. DeAngelo lived, in Citrus Heights, Calif.

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Jason Henry for The New York Times

The first occurred in June 1976. Then another in July, in August, in September. After several more in October, law enforcement officials announced that they were looking for one perpetrator tied to attack after attack. He came to be known as the East Area Rapist.

“The fear in the community was like something I had never seen before,” said Ms. Daly, who was part of a task force dedicated to the case. “People were afraid wherever they went.”

With good reason.

The rapist typically wore a ski mask, and usually wielded a gun. He tied up his victims, and issued threatening instructions through clenched teeth. He took mementos: photographs, jewelry, identification. He sometimes paused to eat or drink, as if to suggest he was perfectly at home with mayhem.

The attacks were devastating to women and their families. But Linda O’Dell, one of the victims, recalled Ms. Daly’s deftness, at a time when victims of rape were often re-victimized by the law enforcement procedures that followed. “She was a trailblazer,” Ms. O’Dell said of the detective. “She was very comforting to me.”

Investigators soon developed an outline of their suspect: an agile young man, just under 6 feet tall and with a size-9 shoe, whose tactical precision suggested military or law enforcement experience. He was also particularly audacious: After a local newspaper noted that he raped his victims when no man was at home, Ms. Daly recalled, he began assaulting women while tying up their husbands.

“He was so in tune with what we were doing and what was in the media,” she said. “And every time we would say, ‘Well, he didn’t do this,’ it was: ‘Ha-ha. I gotcha. I could do it.’”

This calculated audacity fed into the suspicion that, at the very least, the perpetrator had had law enforcement training.

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Mr. DeAngelo, second from left, was a police officer in Auburn, not far from where he had attended high school.

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Auburn Journal

“At the time,” Ms. Daly said, “it was a strong enough suspicion that he could have been law enforcement that all of the men in our department who matched his description came forward and got themselves eliminated,” through blood tests matched with a sample of the rapist’s blood.

Monica Miller, the head of the Sacramento F.B.I. field office from 2013 to 2017, agreed that the predator’s patterns suggested that he either knew what police would look for at a crime scene or had inside information into the investigation.

“He was extremely wily,” Ms. Miller said. “Just the way he was able to elude the U.S. He was smarter than the average person when it came to tactics or techniques.”

The rapist flashed his boldness again after that community forum at which the audience member expressed his doubt that a woman could be attacked with a man in the house. And the subsequent assault on his wife, Ms. Daly recalled, was especially savage.

“They were all savage,” she said. “But he just seemed to have spent more time in that home, with repeated assaults. I think he was thumbing his nose at everybody.”

At this time, Mr. DeAngelo was a police officer in Auburn, a community tucked into the Northern California foothills, not far from where he had attended high school. He wore the light blue uniform, patrolled the quaint streets, and responded to routine calls — all while the residents of Auburn were being rattled by reports of the serial attacker called the East Area Rapist.

Nicholas Willick, an Auburn police officer who served with Mr. DeAngelo and who later became police chief, recalled the tenor of the time, with people installing alarm systems, packing handguns and buying guard dogs.

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Katie and Brian Maggiore, were shot to death while walking their dog in the Sacramento County city of Rancho Cordova in 1978.

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FBI

“We were getting besieged with phone calls wanting an officer to come over to the house to make security checks and make suggestions on how they could make their houses more safe,” Mr. Willick recalled. “Because people were afraid.”

In February 1978, a married couple, Brian and Katie Maggiore, were shot to death while walking their dog in the Sacramento County city of Rancho Cordova. This, it would turn out, would be the first murder linked to the East Area Rapist.

The next year, in early July, Chief Willick fired Mr. DeAngelo from the police force after he was arrested for trying to steal a hammer and a can of dog repellent from a Pay ’n Save store by concealing them in his trousers.

Three months later, the serial rapist tied up a couple in the Santa Barbara city of Goleta, nearly 400 miles south of Sacramento. He fled on a bicycle after the woman began screaming.

The next month, in November, Mr. DeAngelo took the stand to deny that he was trying to steal the items. Found guilty, he was given a $100 fine and six months’ probation.

The rapes and murders continued for years, in California locations far beyond Sacramento County. All the while, Ms. Daly retained a large red binder packed with reports and photos and interviews — a resource she often shared with investigators who came after her.

“This is something that, once it’s been with you, it does not leave you,” she said.

In 1986, the predator’s 12-year spree of break-ins, violence and death stopped — at least, it seems, in California. Twelve dead, at least 50 women raped, and more than 120 homes burglarized.

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Mr. DeAngelo had his wrists shackled to his government-issue wheelchair on Friday at his arraignment in Sacramento.

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Jason Henry for The New York Times

The reasons remain unclear. Ms. Daly surmised that the killer had lost his agility to outrun police officers, or perhaps had come so close to getting caught that he decided to stop. “I felt that something happened that he just wasn’t able to do those crimes anymore,” she said.

Interest in the case waxed and waned over the decades. In 2001, advancements in DNA technology led to the establishment of a link between rapes in Northern California and murders in Southern California. In 2013, the crime writer Michelle McNamara shined a spotlight on the case with an article in Los Angeles magazine. And in 2016, the F.B.I. and the Sacramento County district attorney’s office announced a renewed effort to solve it.

Mr. DeAngelo and his wife had three daughters, but at some point the couple separated. He worked for more than a quarter-century at a distribution center for the Save Mart grocery story chain in Roseville, outside of Sacramento. He retired in 2017 and was noticed, if at all, for his painstaking lawn care, and for occasional outbursts of obscenity.

Then, on Tuesday, the police came for a fallen member of their fraternity. Ms. Daly, long-retired, was among those who got a heads-up call, and 40 years of emotions welled up.

“It’s been borderline tears from the time I got the phone call,” she said.

Late last year, law enforcement officials had uploaded the suspect’s DNA profile, culled from the scene of a 1980 double murder in Ventura County, to a website dedicated to genealogy. That approach was a Hail Mary from Paul Holes, an investigator with the Contra Costa County district attorney’s office who had worked the case for 24 years and was about to retire.

Four months of sleuthing on the genealogy website led to distant relatives of Mr. DeAngelo, and from there genealogists helped pinpoint Mr. DeAngelo himself — whose DNA, taken from items he discarded outside his home, was a match with the killer’s, according to the police.

On Friday afternoon, Mr. DeAngelo was rolled into a Sacramento County courtroom, his wrists shackled to his government-issued wheelchair. He wore an orange jumpsuit with “Sacramento Co Prisoner” stenciled in large letters on the back.

Judge Michael W. Sweet ascertained, after some difficulty, that the defendant’s name was Joseph James DeAngelo. He then recited the charges, including the murder of Katie Maggiore — “a human being” — and of Brian Maggiore — “a human being.”

The former police officer gazed at the judge, blinking slowly and with his mouth partly open, as if there were no words. Then he was wheeled away.

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Can a City Ditch the Power Company? Not Without a Fight


Critics of the San Diego plan — backed by an affiliate of the local utility, the San Diego Gas and Electric Company — have started a political-style ad campaign on social media, raising concern that taxpayers could be on the hook for billions of dollars if the program went wrong.

They have made the case that major changes to California’s energy policies gave rise to an energy crisis in 2000 and 2001 that caused rolling blackouts and soaring power bills. And they formed an alliance, the Clean Air Coalition, that includes leaders of organizations funded by the power company, among them a group of African-American pastors.

That’s when the campaign became more than Bishop George McKinney could stand.

Bishop McKinney, pastor of St. Stephen’s Cathedral Church of God in Christ here for the last 55 years, said he believed that those attacking the program, including fellow African-American clergy members, were doing so only because of financial support from the utility company.

“I think that the inner-city residents are being taken advantage of,” the 85-year-old bishop said. “The cost of energy now is escalating in the community. There has to be someone who is willing to speak truth to power.”

The move toward such government-run electricity programs, known as community choice aggregation, has been gathering steam over the last year in Southern California, with Los Angeles County adopting the effort and recruiting dozens of cities to enroll. Similar programs have been operating in Northern California for almost a decade.

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A work crew from the San Diego Gas and Electric Company, which is backing critics of the community choice proposal who say taxpayers could be on the hook for billions of dollars if the plan goes wrong.

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K.C. Alfred/The San Diego Union-Tribune, via Associated Press

Broad success of the community choice movement in California could contribute to a substantial reshaping of the West’s energy market. Managers of the state’s complex power grid would have to factor in the supply agreements struck by these new energy players while ensuring that service remained reliable.

San Diego Gas and Electric, a subsidiary of Sempra Energy, is one of California’s three big shareholder-owned utilities, along with Pacific Gas and Electric and Southern California Edison. Together they serve about 70 percent of California’s electricity customers and have been raising concerns about the impact of government-run utility programs on their businesses.

“We support customers’ right to choose an energy provider that best meets their needs,” said Helen Gao, a spokeswoman for the San Diego utility. “At the same time, we have an obligation to protect customers who remain.”

When local governments adopt community choice programs, they typically require the traditional utilities to maintain the network of power lines and often the billing for all customers. California programs are usually designed so that customers are automatically enrolled in community choice and must opt out to go back with the utility company.

Utilities argue that the required services impose an unfair financial burden on them and ultimately their remaining customers.

California regulators are expected to have a proposal by summer’s end about how much community choice programs should pay the power companies in so-called exit fees to make up for the loss of customers.

If the fees are too high, though, community choice provides no savings to consumers. If the fees are too low, the utility companies might not be able to cover their costs.

San Diego, like dozens of other cities nationwide, proposes to reach 100 percent carbon-free electricity. The city has a target date of 2035.

After reviewing feasibility studies, city leaders determined that one of the few ways they could reach their goal was through a community choice program supported by the development of new solar and wind facilities locally and with neighboring California counties. In addition, any cost to carry out the program would be recouped within five years, they said, citing a Northern California county that covered its $2.7 million in expenses within two years.

“I’m not saying these guys are bad and we’re the white hats,” Beth Vaughan, executive director of the California Community Choice Association, said about the utility companies. “What I’m saying is times are changing. It makes sense to me that the communities want to have a say.”

Mark Pruitt, principal of the Illinois Community Choice Aggregation Network, said savings to ratepayers through the state’s program had diminished over time from as high as 30 percent compared with the utility companies down to 5 percent or less.

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Haney Hong, co-chairman of an alliance that opposes the community choice program, questioned how such efforts met their clean-energy goals.

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John Francis Peters for The New York Times

When community choice programs begin, they have an advantage over utilities: Particularly with the falling prices of solar and wind power, they can often secure wholesale contracts at better terms than the long-term agreements that the incumbents are locked into.

In some cases, however, the utilities now offer lower rates in Illinois than the community choice programs, Mr. Pruitt said. Cities there determine each year whether to use the public program or the utility, based on the better deal. But about 50 to 60 percent of electricity customers in the state remain with the community choice programs.

“It has forced better practice throughout the utility sector in Illinois,” Mr. Pruitt said.

But the critics of San Diego’s community choice proposal said they worried that it could drain the city’s coffers.

“It may double the budget at a time when we don’t have the resources that we need,” said the Rev. Gerald Brown, co-chairman of the Clear the Air Coalition. “We don’t want any new taxes or any new rates at all.”

Mr. Brown runs a nonprofit organization, the United African American Ministerial Action Council, that receives financial support from San Diego Gas and Electric.

He said the support had nothing to do with his criticism of the community choice proposal. He said he was troubled by an estimate that it could cost the city up to $2.8 billion to support the program — a worst-case scenario that the city says it no longer includes in its estimates because it was too far-fetched.

Mr. Brown and members of the Clear the Air Coalition also contend that similar government-run utility programs are not producing new alternative-energy projects as they promise. They noted that the utility produced 45 percent of its electricity from carbon-free sources, and argued that community choice programs achieved their climate-friendly goals through purchases of clean energy credits rather than actual generation.

“We’re talking about possible environmental fraud,” said Haney Hong, another co-chairman of the coalition and the president and chief executive of the San Diego County Taxpayers Association. “I feel like folks might be sold a bill of goods.”

San Diego officials said the city was not including renewable-energy credits in its assumptions in becoming carbon-free. (San Diego Gas and Electric also benefits from renewable-energy credits, but says most reflect power sources created specifically for the utility.)

“It’s just a fear-based campaign,” said Nicole Capretz, executive director of the Climate Action Campaign, a group backing the community choice proposal, which she shaped while she was the city’s chief sustainability officer. “The utility is made whole. That’s what’s baffling.”

Bishop McKinney said he believed that opponents of the plan had made up their minds prematurely, taking a position that would ultimately harm the disadvantaged and minorities.

“I’m going to support the change,” he said, calling it “one possible means of equalizing and bringing justice to the table.”

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