Snow-making at ski resorts goes high tech

Mother Nature has been a fickle manager of snowfall lately, sending an avalanche of powder to ski resorts across the country two years ago, followed by the least amount of snowfall in decades last winter.

A scattering of storms has already swept through the West this winter, but it's too early to tell if this season will be a snowy success or another dry disappointment.

But ski resort managers are losing less sleep over erratic weather conditions after making a flurry of investments over the last few years in ultra-efficient, computerized snow-making equipment.

Once powered by diesel air compressors and monitored by workers on snowmobiles, today's snow-making systems rely on computers, fiber-optic cables and low-energy fans that can be controlled by smartphone or programmed to automatically make snow when conditions are prime.

The good news for powder hounds is that the frozen spray generated by modern snow-making equipment is so close to real snow that even veteran skiers can't tell the difference.

"If I'm going down a run, I can't tell you if I just skied on natural or man-made snow," said Bruce Lee, a Redondo Beach resident who has been skiing for 30 years in Vermont, Pennsylvania, Utah, Colorado and California. "I'll bet no one can tell the difference."

Video chat: Tahoe ski resorts get a makeover

Investments in snow making have been especially crucial in California, where snowfall has always been particularly unreliable. The state is home to 29 resorts that generate an estimated $1.3 billion in spending a year.

Last year's ultra-dry season only reinforced the value of artificial snow-making systems. The 2011-12 season marked the lowest national average snowfall in 20 years, forcing half of the nation's resorts to either open late or close early.

The National Resources Defense Council estimates that ski resorts lost $1 billion in revenue because of meager snowfall over the last decade.

Resort operators that had already invested heavily -n snow-making equipment said man-made snow helped them avoid a complete bust.

"For us, the reaction to last year was 'Thank God we've done what we did in the past,'" said Pete Sonntag, general manager at Lake Tahoe's Heavenly ski resort, where 155 snow-making machines can cover 65% of the resort's skiable terrain.

Heavenly's snow-making system — the largest on the West Coast — can be controlled from a desktop computer at a pump house on the mountain or a smartphone carried by Barrett Burghard, the resort's senior manager for snow surfaces.

"I'm not going to lie and say we can make snow as good as Mother Nature," Burghard said as he glanced at a computer screen to check the water levels in the resort's storage tanks. "But it's close."

The best man-made snow, he said, is light and can be pressed into a snowball without oozing water.

He has another, very unscientific method for testing his machine-spewed snow: He tosses it against his arm to see how it bounces off his sleeve. "There's an art to making snow," Burghard said.

In the past, snow-making was a labor-intensive task that involved teams of workers taking temperature and humidity readings throughout the night.

If the conditions were right for snow-making, workers would ride snowmobiles up the mountains to switch on snow guns, which were often powered by diesel air compressors and connected to high-pressure air and water hoses bordering ski runs.

But temperatures at different spots on a mountain can vary by several degrees, making it difficult for resort operators to gauge when and where to activate the snow guns.

Modern snow-making guns use less energy than older systems, relying on a combination of portable compressors and energy-efficient fans.

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Cardinal George: Doctors 'couldn't find any evidence of cancer'

Medical tests have shown that Chicago's Cardinal Francis George appears to be free of cancer, he said in a wide-ranging interview, though doctors have advised the Roman Catholic archbishop to skip two Christmas Day traditions dear to him.

Because months of treatment have taken a toll on his immune system, George will miss celebrating Mass with inmates at the Cook County Jail and visiting Lurie Children's Hospital to comfort young patients who can't be home on Christmas Day. Instead he will celebrate midnight Mass at Holy Name Cathedral downtown, followed by a quiet day at home with family.

“The first tests they did halfway through were quite successful,” George, 75, said during an interview this week at his residence. He has been undergoing chemotherapy since September, shortly after doctors discovered cancerous cells on his liver and a kidney. He expects to be finished with chemotherapy in early January.

“They were quite surprised. It looked good,” he said. “But then they always say there are always things we can't see. But otherwise, they were very encouraged that they couldn't find any evidence of cancer where they found it before.”

With rosy cheeks and a broad smile, George, who battled bladder cancer six years ago, praised the steroids that doctors had prescribed to reduce inflammation during his treatment, joking that he now understands why athletes succumb to the temptation. But he also expressed disappointment that fatigue has kept him from composing a pastoral letter about the customs he believes bind Catholics together despite polarization in the pews about issues such as gay marriage.

“The important thing is to keep us together as much as we possibly can so that people aren't hurt and that we have a just society,” he said. “And not just a just society but a society that's loving in some fashion. … It's not as if we're falling apart, but the challenges keep shifting.”

`It's poison'

Though he has encountered extreme exhaustion and relied on steroids to help boost his strength, George said he has managed to escape many of the side effects commonly associated with chemotherapy.

“I have some bad days, but most days are pretty good,” he said. “It's poison. They tell you that `we're poisoning you.’ But it's controlled. A lot of people have gone through this. I hear from them.”

By eating a balanced diet of meat, cooked or peeled vegetables, antioxidants and peanut butter (his favorite comfort food), he has followed doctors' orders to put on weight. He also drinks asparagus juice three times a day, served by the Polish nuns who prepare his meals and insist on the gloppy green potion's healing powers.

“It can't harm me,” George said.

He's not sure he can say the same about one letter writer's recommendation to eat live Brazilian bugs -- a suggestion he appreciated but didn't try. He also expressed gratitude for the prayers and letters from the community and cancer patients who have shared stories and encouragement.

“I am truly grateful for people who have prayed for me. I'm really humbled by that,” George said. “People have written to me to share their own stories of chemotherapy. It's a big club. It makes it easier to know that a lot of people are facing difficulties certainly far worse than mine. … When you're in difficulty, people's kindness comes through.”

Though he prays the rosary daily, he said he has prayed it with greater fervor since his diagnosis in August. Every declaration of “Hail Mary,” which ends with “Pray for us sinners now and at the hour of our death,” has taken on new weight, he said. Since recovering from polio as a young boy, George has believed in the intercession of the Virgin Mary in his life.

“I say it with new meaning now, more slowly, with more emotion,” he said. “I have a potentially lethal disease, so that prayer takes on new meaning when I say it. There's a greater depth of feeling along with the prayer, proximity to God and therefore trust -- like a child trusting in his mother.”

“There's a moment in everybody's life that we're going to die,” George said. “That's part of God's providence, too. I'd at least like to prepare for that, so I can finish a few things.”

Life of church `more fragile'

George said he had hoped a lighter public schedule during his treatment would allow him to finish at least one personal project -- a pastoral letter about Catholic customs such as celebrating Mass on Sundays, fasting from meat on Fridays and performing other public devotions. The letter would be based on an ongoing conversation with the Archdiocesan Pastoral Council about struggles parishioners encounter when trying to embody their faith.

“The sense of our way of life as a set of customs is something we should think about because when we disagree about ideas or about rules, the customs keep you together,” he said. “If the customs aren't there any longer, then it becomes a very contentious place, which it often is now.”

The need for the letter has become more urgent in recent years, George said, as debates about gay marriage and contraception have become more heated and society has become more secularized, leading the faithful to make their religious practice a more private affair.

“What does it mean when you're no longer considered the glue that holds society together but rather a source of discord in society?” he said. “We have to rethink a lot of things. It's a different situation for us. But one response is saying this is how Christians live. This is our customary way of life. … I don't know that life is any more problematic or contentious than it has been for the last 50 years … but it certainly does seem the life of the church is more fragile.”

mbrachear@tribune.com

Twitter @TribSeeker

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Proper jailbreak for iOS 6 reportedly coming December 22nd

The speed at which a jailbreak for a new iOS device is released has slowed down considerably over the last few years. A tethered jailbreak  for devices running iOS 6 has been out September, but most people have been holding out for the untethered version – a hack that doesn’t erase everything upon reboot. A new jailbreak developer called “Dream JB” claims he will release a proper untethered jailbreak for devices running iOS 6 or 6.0.1 including the iPhone 5, iPad mini and iPad 4 on December 22nd. Dream JB also promises to release a video on Wednesday as proof. According to his website’s FAQ page, the jailbreak will be a one-click process and will differ from previous jailbreak methods in the past by using a prepared “Webkit exploit” and “userland exploit.” After it’s all done, Cydia, the App Store’s alternative for jailbroken smartphones, can be installed on the device. Unfortunately, the jailbreak won’t support Apple TV boxes.

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Legendary Indian sitarist, composer Ravi Shankar dead at 92

LOS ANGELES (Reuters) – Sitarist and composer Ravi Shankar, who helped introduce the sitar to the Western world through his collaborations with The Beatles, died in Southern California on Tuesday, his family said. He was 92.

Shankar, a three-time Grammy winner with legendary appearances at the 1967 Monterey Festival and at Woodstock, had been in fragile health for several years and last Thursday underwent surgery, his family said in a statement.

“Although it is a time for sorrow and sadness, it is also a time for all of us to give thanks and to be grateful that we were able to have him as a part of our lives,” the family said. “He will live forever in our hearts and in his music.”

In India, Prime Minister Manmohan Singh‘s office posted a Twitter message calling Shankar a “national treasure and global ambassador of India‘s cultural heritage.”

“An era has passed away with … Ravi Shankar. The nation joins me to pay tributes to his unsurpassable genius, his art and his humility,” the Indian premier added.

Shankar had suffered from upper respiratory and heart issues over the past year and underwent heart-valve replacement surgery last week at a hospital in San Diego, south of Los Angeles.

The surgery was successful but he was unable to recover.

“Unfortunately, despite the best efforts of the surgeons and doctors taking care of him, his body was not able to withstand the strain of the surgery. We were at his side when he passed away,” his wife Sukanya and daughter Anoushka said.

Shankar lived in both India and the United States. He is also survived by his daughter, Grammy-winning singer Norah Jones, three grandchildren, and four great-grandchildren.

Shankar performed his last concert with his daughter Anoushka on November 4 in Long Beach, California, the statement said. The night before he underwent surgery, he was nominated for a Grammy for his latest album “The Living Room Sessions, Part 1.”

‘NORWEGIAN WOOD’ TO ‘WEST MEETS EAST’

His family said that memorial plans will be announced at a later date and requested that donations be made to the Ravi Shankar Foundation.

Shankar is credited with popularizing Indian music through his work with violinist Yehudi Menuhin and The Beatles in the late 1960s, inspiring George Harrison to learn the sitar and the British band to record songs like “Norwegian Wood” (1965) and “Within You, Without You” (1967).

His friendship with Harrison led him to appearances at the Monterey and Woodstock pop festivals in the late 1960s, and the 1972 Concert for Bangladesh, becoming one of the first Indian musicians to become a household name in the West.

His influence in classical music, including on composer Philip Glass, was just as large. His work with Menuhin on their “West Meets East” albums in the 1960s and 1970s earned them a Grammy, and he wrote concertos for sitar and orchestra for both the London Symphony Orchestra and the New York Philharmonic.

Shankar served as a member of the upper chamber of the Parliament of India, from 1986 to 1992, after being nominated by then Indian Prime Minister Rajiv Gandhi.

A man of many talents, he also wrote the Oscar-nominated score for 1982 film “Gandhi,” several books, and mounted theatrical productions.

He also built an ashram-style home and music center in India where students could live and learn, and later the Ravi Shankar Center in Delhi in 2001, which hosts an annual music festival.

Yet his first brush with the arts was through dance.

Born Robindra Shankar in 1920 in India‘s holiest city, Varanasi, he spent his first few years in relative poverty before his eldest brother took the family to Paris.

For about eight years, Shankar danced in his brother’s Indian classical and folk dance troupe, which toured the world. But by the late 1930s he had turned his back on show business to learn the sitar and other classical Indian instruments.

Shankar earned multiple honors in his long career, including an Order of the British Empire (OBE) from Britain’s Queen Elizabeth for services to music, the Bharat Ratna, India‘s highest civilian award, and the French Legion d’Honneur.

(Editing by Eric Walsh)

Music News Headlines – Yahoo! News

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HSBC to pay record $1.9B fine

British-owned bank HSBC is paying $1.9B to settle a US money-laundering probe. The bank was investigated for involvement in the transfer of funds from Mexican drug cartels and sanctioned nations like Iran. (Dec. 11)

HSBC has agreed to pay a record $1.92 billion fine to settle a multi-year probe by U.S. prosecutors, who accused Europe's biggest bank of failing to enforce rules designed to prevent the laundering of criminal cash.

The U.S. Justice Department on Tuesday charged the bank with failing to maintain an effective program against money laundering and conduct due diligence on certain accounts.

In documents filed in federal court in Brooklyn, it also charged the bank with violating sanctions laws by doing business with Iran, Libya, Sudan, Burma and Cuba.

HSBC Holdings Plc admitted to a breakdown of controls and apologised for its conduct.

"We accept responsibility for our past mistakes. We have said we are profoundly sorry for them, and we do so again. The HSBC of today is a fundamentally different organisation from the one that made those mistakes," said Chief Executive Stuart Gulliver.

"Over the last two years, under new senior leadership, we have been taking concrete steps to put right what went wrong and to participate actively with government authorities in bringing to light and addressing these matters."

The bank agreed to forfeit $1.256 billion and retain a compliance monitor to resolve the charges through a deferred-prosecution agreement.

The settlement offers new information about failures at HSBC to police transactions linked to Mexico, details of which were reported this summer in a sweeping U.S. Senate probe.

The Senate panel alleged that HSBC failed to maintain controls designed to prevent money laundering by drug cartels, terrorists and tax cheats, when acting as a financier to clients routing funds from places including Mexico, Iran and Syria.

The bank was unable to properly monitor $15 billion in bulk cash transactions between mid-2006 and mid-2009, and had inadequate staffing and high turnover in its compliance units, the Senate panel's July report said.

HSBC on Tuesday said it expected to also reach a settlement with British watchdog the Financial Services Authority. The FSA declined to comment.

U.S. and European banks have now agreed to settlements with U.S. regulators totalling some $5 billion in recent years on charges they violated U.S. sanctions and failed to police potentially illicit transactions.

No bank or bank executives, however, have been indicted, as prosecutors have instead used deferred prosecutions - under which criminal charges against a firm are set aside if it agrees to conditions such as paying fines and changing behaviour.

HSBC's settlement also includes agreements or consent orders with the Manhattan district attorney, the Federal Reserve and three U.S. Treasury Department units: the Office of Foreign Assets Control, the Comptroller of the Currency and the Financial Crimes Enforcement Network.

HSBC said it would pay $1.921 billion, continue to cooperate fully with regulatory and law enforcement authorities, and take further action to strengthen its compliance policies and procedures. U.S. prosecutors have agreed to defer or forego prosecution.

The settlement is the third time in a decade that HSBC has been penalized for lax controls and ordered by U.S. authorities to better monitor suspicious transactions. Directives by regulators to improve oversight came in 2003 and again in 2010.

Last month, HSBC told investors it had set aside $1.5 billion to cover fines or penalties stemming from the inquiry and warned that costs could be significantly higher.

Analyst Jim Antos of Mizuho Securities said the settlement costs were "trivial" in terms of the company's book value.

"But in terms of real cash terms, that's a huge fine to pay," said Antos, who rates HSBC a "buy".

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Fare hikes, elimination of bus routes focus of CTA budget hearing

The second CTA fare hike in five years and a controversial plan that eliminates at least a dozen bus routes to free up money to add service on more crowded buses and trains were the focus of a public hearing Monday night on the CTA’s proposed 2013 budget.

The overwhelming majority of the 191 people who attended, amid tighter than usual security at CTA headquarters, wore yellow T-shirts calling on the CTA board to reverse its earlier decision to shorten the No. 11 Lincoln/Sedgwick bus route.

Pleas and demands to save the No. 11 bus route dominated the testimony. The  No. 11 route is being cut between Western and Fullerton avenues as part of a $16 million crowding-reduction plan that is slated to take effect Sunday.

Allan Mellis, a community activist in Lincoln Square, asked the CTA board to amend next year’s budget to find funds to restore the No. 11, which provides 5,800 rides on an average weekday, according to the CTA.

Ald. Ameya Pawar, whose 47th ward would lose a chunk of the No. 11 route, asked for time to work out a solution, including the possibility of using excess TIF funds from his ward. The CTA should not “fix a fiscal issue only to create a social problem” in terms of the toll the loss of No. 11 service would have on senior citizens and people living on fixed incomes, Pawar said.

The $1.39 billion CTA budget for next year erases a projected deficit by raising fares a total of $56 million and introducing $60 million in savings from labor unions and more than $50 million in management cuts and reforms, officials said.

But the price of one-day, three-day, seven-day and 30-day passes will increase effective Jan. 14 under the plan, while the full base fare will be frozen at $2.25 on the rail system and $2 on buses if transit cards are used to pay fares, or $2.25 for cash bus fares.

Reduced fares and passes for senior citizens and disabled people will also increase, and reduced fares for students will decline by 10 cents.

In addition, it will cost $5 instead of $2.25 to ride the Blue Line from O'Hare International Airport if a pass is not used.

No major service cuts or CTA employee layoffs will be needed to balance the budget, officials said.

CTA President Forrest Claypool said the changes in next year’s budget deliver fiscal stability to the agency’s operating budget and prevent the need for more fare increases over perhaps a decade.

The CTA, however, faces an estimated $15.9 billion backlog in major capital improvements to bring stations, tracks, viaducts and other infrastructure as well as buses and trains to a state of good repair over the next 10 years, according to a study commissioned by the Regional Transportation Authority.

A crowding-reduction initiative that is scheduled to begin Sunday  will cancel 12 bus routes and shorten two others. In addition, nine privately contracted CTA routes would be eliminated if subsidies provided by businesses aren't increased, officials said.

More service will be added to 48 bus routes and six of the eight rail lines with the goal of speeding travel times and making the ride more comfortable by reducing crowding by 10 percent to 15 percent during rush periods, according to the transit agency.

At Monday’s meeting, William Scott, a retired teacher who lives in Drexel Square, said other bus routes besides No. 11 suffer from serious problems too. He said it's difficult to find a seat on the No. 4 Cottage Grove bus.

Claypool responded that service will be added on the No. 4 under the de-crowding plan.
Neither Claypool nor CTA board Chairman Terry Peterson spoke about the possibility of altering the budget or the de-crowding plan.

Other people who testified complained about the CTA plan to more than double the fare, to $5, for trips beginning at O'Hare on the Blue Line.

Marge Demora, who works for United Airlines at the airport, said “it’s discrimination to single out O'Hare fares.” She said workers at restaurants and other jobs that pay minimum wages at the airport will be the hardest hit.

On buses that typically carry 70 passengers, the new target will be 45 to 55 passengers per bus, CTA officials said. Rail cars packed with 90 or more riders at maximum capacity are expected to have 70 to 75 passengers, officials said.

CTA officials said service will be increased on bus and rail routes used by 76 percent of the CTA’s total ridership.

But the bus service cuts, which the CTA board has already approved, have sparked vocal protests from some riders, particularly those who are rallying to save the No. 145 Wilson/Michigan Express and the No. 11 Lincoln/Sedgwick bus route, which is slated to stop operating between Western and Fullerton. CTA officials said the No. 11 service is redundant with the Brown Line between Fullerton and Western. A new route, the No. 37 Sedgwick, will be created.

jhilkevitch@tribune.com

Twitter @jhilkevitch

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Royal phone scandal highlights new media risks

CANBERRA (Reuters) – Back in 2007, as investigations were gathering strength into the UK phone hacking scandal involving journalists working under the umbrella of the Murdoch media empire, a comedy show based around prank telephone calls made a low-key debut in Britain.

‘Fonejacker’ proved such a hit with the British public that the next year the program, in which a masked caller bamboozles hapless victims, won a coveted BAFTA award for best comedy, underscoring the attraction of the prank call amid a blurring of a ceaseless news cycle with social media and entertainment.

But just such a prank telephone call, to a London hospital where Prince William‘s pregnant wife Kate was being treated, has sparked a firestorm in traditional and social media after the apparent suicide by the nurse who put the call through.

Much of the fury has been directed at laying blame for the nurse’s death on the Australian DJs who made the prank call, or the media in general, with the most vitriolic comments appearing on the public domains of Facebook and Twitter.

The social media outrage has become a story of its own, outlasting the original news value of a prank call, and has seen advertising pulled from the program which broadcast the hoax call and the suspension of the two radio announcers.

Shares in radio station 2DayFM’s owner, Southern Cross Austero fell 5 percent on Monday as the public backlash gathered strength.

Media commentators and analysts warn the rapidly changing traditional and social media worlds may have given people greater freedom of expression, but can unleash a genie which can have destructive or negative repercussions, without responsible behavior by both mainstream and social media operators.

“It’s all changing so fast that societal norms have retreated in confusion,” said veteran newspaper columnist Jennifer Hewett in the Australian Financial Review.

“What is clear is that we will soon look back to count the mounting costs and destructive force, as well as the great benefits, of the explosion of communication in an all-media, all-in, all-the-time world,” Hewett said.

Jacintha Saldanha, 46, was found dead in staff accommodation near London’s King Edward VII hospital on Friday after putting the hoax call through to a colleague who unwittingly disclosed details of Kate’s morning sickness to 2DayFM’s presenters.

Her death, still being investigated, followed still simmering outrage in Britain over phone hacking, as well as Australian anger over the power of radio announcers to plump ratings with a diet of shock, including a 2Day announcer who sparked fury by calling a woman journalist rival a “fat slag”.

And while in Britain the popular press were quick to seize the moral high ground and point the finger “Down Under”, Australian commentators pointed blame the other way, or at confusion over the changing role of media and voracious public demand for not only information, but increasingly titillation.

Australian newspaper columnist Mike Carlton said while 2Day FM and its parent company made good money by “entertaining simple minds”, for tabloid British papers to point “Down Under” over a ‘gotcha’ news genre they created was “towering hypocrisy”.

CHANGING MEDIA ETHICS

The social media condemnation of Saldanha’s death should prompt a re-think of ethics in the era of celebrity news, said Jim Macnamara, a media analyst from Australia’s University of Technology, Sydney.

“There is a lesson in this for media organizations everywhere, and for journalists and media personalities, and that is that they need to look at community standards and better self regulate,” said Macnamara.

The tragic fallout from the radio stunt has rekindled memories of the death of William’s mother Diana in a Paris car crash in 1997 and threatens to cast a pall over the birth of his and Kate’s first child.

Public amusement at the prank started turning when British media reported the call as a major security breach of the royal family’s privacy, despite the call never reaching Kate’s room and the information revealed by a nurse was already public.

But news of Saldanha’s death is what sparked the Internet firestorm, that once unleashed could not be controlled.

Hypocritically, some of the harshest criticism was on Twitter and Facebook, where people unleashed fury on Australian and British media, after having themselves publish news of Saldanha’s error under a Twitter topic #royalprank, which was repeated more than 15,000 times.

“When the twitterverse goes into meltdown, we all react with a chain reaction any nuclear plant would be proud of. I hope, in time, the world will learn to splash cold water on itself when these stories break and cool down, before we all get dragged into the mud of our own making,” Tristan Stewart-Robertson, a Glasgow-based journalist wrote in a blog on www.firstpost.com

(Editing by Michael Perry)

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“Homeland” creator: Stop using animals in military training

LOS ANGELES (TheWrap.com) – “Homeland” executive producer Gideon Raff is urging a cease-fire between the U.S. military and the animal kingdom.

Joining with the People for the Ethical Treatment of Animals, Raff has sent a letter to U.S. Secretary of Defense Leon Panetta, asking him to halt the use of animals in medical training exercises in favor of high-tech human simulators.

In his letter, Raff – a former paratrooper in the Israeli Defense Forces – claims that research by the IDF Medical Corps indicates that military personnel are better prepared for battlefield medical procedures when they’re trained with human stimulators and given real-life experience with patients than when they utilize “crude animal laboratories.”

“Having served as a paratrooper in the Israeli Defense Forces (IDF), I have the utmost concern for the health and security of the heroic service members – like those portrayed on my shows ‘Homeland’ and ‘Prisoners of War’ – who risk their lives to protect our safety and freedom,” Raff wrote in his letter to Panetta. (“Homeland” is a U.S. adaptation of his Israeli series, “Prisoners of War.”)

“But the U.S. Department of Defense is not saving soldiers’ lives by shooting, dismembering, blowing up, and killing thousands of animals each year for crude medical training drills,” he added. “I am troubled that this violence still goes on when more humane and effective ways of training medics and doctors are available, so I have joined PETA’s campaign to end this cruel practice.”

The letter concludes, “Caring for the well-being of animals and preparing the troops serving our countries are not mutually exclusive. In this case, sparing animals pain and death in training drills means that military personnel receive better medical training and ultimately better care if they are wounded on the battlefield.”

Raff, a vegan whose pro-animal crusade includes lobbying against monkey experiments in Israel, isn’t the only famous former military personnel to protest the U.S. government’s use of animals in allegedly cruel capacities. Oliver Stone and Bob Barker have also condemned the practice.

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Concussion Liability Issues Could Stretch Beyond N.F.L.

Paul Kitagaki Jr./The Sacramento Bee, via Associated Press

Insurers could raise premiums with a higher risk of lawsuits for concussions, like the one 49ers quarterback Alex Smith sustained a month ago.

As the N.F.L. confronts a raft of lawsuits brought by thousands of former players who accuse the league of hiding information about the dangers of concussions, a less visible battle that may have a more widespread effect in the sport is unfolding between the league and 32 of its current and former insurers.

The dispute revolves around how much money, if any, the insurers are obliged to pay for the league’s mounting legal bills and the hundreds of millions of dollars in potential damages that might stem from the cases brought by the retired players.

Regardless of how it is resolved, the dispute could hurt teams, leagues and schools at all levels if insurers raise premiums to compensate for the increased risk of lawsuits from the families of people who play hockey, lacrosse and other contact sports.

The N.F.L., which generates about $9 billion a year, may be equipped to handle these legal challenges. But colleges, high schools and club teams may be forced to consider severe measures in the face of liability issues, like raising fees to offset higher premiums; capping potential damages; and requiring players to sign away their right to sue coaches and schools. Some schools and leagues may even shut down teams because the expense and legal risk are too high.

“Insurers will be tightening up their own coverage and make sports more expensive,” said Robert Boland, who teaches sports law at New York University. “It could make the sustainability of certain sports a real issue.”

The N.F.L. contends that the insurers, some of whom wrote policies in the 1960s, have a duty to defend the league, which has paid them millions of dollars in premiums. The question for the N.F.L. is not whether the insurers are required to help the league, but rather what percent of the league’s expenses each insurer is obliged to cover.

The 32 insurance companies have varying arguments against the league. Some wrote policies for a limited number of years and contend their obligations should also be limited. Others contend they wrote policies for the N.F.L.’s marketing arm — for licensing disputes, for example — not the league itself.

A few of the companies went bankrupt or merged with rivals. Some insurers wrote primary policies that covered up to the first $1 million of claims; the rest insured obligations in excess of that amount.

Creating a formula for how to apportion liability will in some cases depend on the broader case between the league and its players now in federal court in Pennsylvania. If the N.F.L. persuades the judge to dismiss the case, the league will be left trying to recoup its legal costs from the insurers. If the judge allows the players’ case to proceed, the definitions of when, how and whether a player’s concussions led to his illness will become critical in shaping the insurers’ exposure, and could take years to sort out.

“This is baby step 1 in the process for everyone figuring how deep in the soup they are,” said Christopher Fusco, a lawyer who has worked on similar insurance cases but is not involved in the N.F.L. litigation. “Baby step 2 will be to figure out the facts.”

Fusco and other lawyers said the facts would largely come from the underlying suit between the league and the more than 3,000 retired players, including determining when the players sustained the head trauma and their injuries. This will probably be a long process because many of the retired players in the underlying suit, some of whom are now having memory loss, played decades ago, when concussions were often undiagnosed or not recorded.

Many of the insurance companies named in the suits declined to comment, citing the continuing litigation. The N.F.L. also did not comment.

The two-tiered battle between the league and its former players and insurers echoes the litigation stemming from asbestos claims because both cases center on long-tail claims, or injuries that could take years to manifest themselves.

One of the critical points of contention in those cases was how to define an occurrence to determine an insurer’s liability. In the context of the N.F.L. case, the question will be whether a player’s injuries should be treated as a single claim or a series of claims based on the number of concussions he received or the number of seasons he played.

“This is an issue that gets to the crux of asbestos and environmental litigation,” said William M. Wilt, the president of Assured Research, an insurance advisory firm. “If an occurrence is defined as each player and each season he played, you could hit the policy limits multiple times.”

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'Dollar Menu' sparks McDonald's rebound

McDonald's took Wall Street by surprise Monday morning, with a November same-store sales report that beat expectations and showed particular strength in the U.S. business.

The news follows a weak performance in October that had some investors speculating about the future of the world's largest restaurant company.

The Oak Brook-based burger giant reported U.S. same-store sales up 2.5 percent on the strength of its breakfast business, value offerings, beverages and limited-time offers like the cheddar bacon onion sandwich. In Europe, same-store sales grew 1.4 percent, and 0.6 percent in the chain's Asia/Pacific, Middle East and Africa division.

Overall, same-store sales increased 2.4 percent, beating various expectations for a roughly flat performance.

McDonald's has taken a tough stance on slipping U.S. sales as revived rivals like Wendy's and Burger King crank out new premium and value products. Days after releasing a report that showed October's rare drop in monthly same-store sales, McDonald's said its U.S. president, Jan Fields, had resigned and would be replaced by Jeff Stratton, who had been the company's global restaurant officer.

"We are strengthening our focus on the global priorities that are most impactful to our customers — optimizing our menu, modernizing the customer experience and broadening accessibility to our brand to move our business forward," McDonald's CEO Don Thompson said in a statement.

While the sales report is likely to be a boost for the fast-food chain, investors don't expect company performance to return to normal levels until early 2013.

"One month does not a trend make … but it's a nice sign to see them rebound after a horrible October," ITG Investment Research analyst Steve West said.

Analysts expect volatile industry sales in the coming quarters as countries around the world grapple with economic woes and high unemployment. Profits could get squeezed as diners shop around for deals and restaurants respond by keeping prices down.

"We are concerned about the margin outlook in this more promotional environment," said Lazard Capital Markets analyst Matthew DiFrisco.

McDonald's "ramped up its value messaging, focusing heavily on the Dollar Menu to help drive traffic," Jefferies & Co restaurant analyst Andy Barish said in a research note.

The company has been promoting both the Dollar Menu and its Extra Value Menu, which includes offerings like 20 Chicken McNuggets for $4.99, to lure diners.

Baird analyst David Tarantino raised his fourth-quarter earnings estimate by a penny per share Monday morning following the sales announcement. He wrote that while company performance "could remain soft" through the first quarter, "the November sales report supports our thesis that McDonald's can achieve better performance in 2013 as a whole, with results aided by planned initiatives (including increased emphasis on value plus premium offerings across markets), fewer cost pressures, and less negative currency translation."

McDonald's shares closed up 93 cents, or 1 percent, at $89.41.

Reuters contributed.

eyork@tribune.com

Twitter @emilyyork

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