Rescuers end effort to find body of man presumed dead in sinkhole

SEFFNER, Florida -- Florida rescue workers have ended their efforts to recover the body of a man who disappeared into a sinkhole that swallowed his bedroom while he slept in a suburban Tampa home, and the house will be demolished, a public safety official said on Saturday.

Jeff Bush, 36, who is presumed dead, was asleep when the other five members of the household who were getting ready for bed on Thursday night heard a loud crash and Jeff screaming.

Authorities have not detected any signs of life after lowering listening devices and cameras into the hole.

"Our data has come back, and there is absolutely no way we can do any kind of recovery without endangering lives of workers," said Hillsborough County Fire Rescue spokeswoman Jessica Dam.

The sinkhole also has compromised the house next door, officials said Saturday.

Officials planned to let family members, accompanied by firefighters, into the threatened  home for about 20 minutes to gather some  belongings, Hillsborough County Fire Rescue spokesman Ronnie Rivera told reporters Saturday.

She said demolition of the home would begin early on Sunday.

Bush's body hadn’t been removed by Saturday afternoon and the ground near the home was still "very, very unsafe," Rivera said at a televised press conference Saturday.

"At this time we did some testing and we determined that the house right next to the house that’s actually damaged is also compromised by the sinkhole," Rivera said.

Jeff's brother, 35-year-old Jeremy Bush, jumped into the hole and furiously kept digging to find his brother.

"I really don't think they are going to be able to find him," Jeremy said on Saturday. He "will be there forever."

A small memorial of balloons and flowers for his brother had formed near the house on Saturday morning.

"I thank the Lord for not taking my daughter and the rest of my family," he said.

Jeremy himself had to be rescued from the sinkhole by the first responder to the emergency call, Douglas Duvall of the Hillsborough County Sheriff's Office. When Duvall entered Jeff Bush's bedroom, all he saw was a widening chasm but no sign of Jeff.

"The hole took the entire bedroom," said Duvall. "You could see the bed frame, the dresser, everything was sinking," he said.

Norman Wicker, 48, the father of Jeremy's fiancee who also lived in the house, ran to get a flashlight and shovel.

"It sounded like a car ran into the back of the house," Wicker said.

"There is a very large, very fluid mass underneath this house rendering the entire house and the entire lot dangerous and unsafe," Bill Bracken, the head of an engineering company assisting fire and rescue officials, told the news conference late on Friday.

"We are still trying to determine the extent and nature of what's down there so we can best determine how to approach it and how to extricate," Bracken said.

After suspending the search overnight, it resumed at daylight on Saturday, with engineering consultants trying to determine the extent of the collapse so that a perimeter boundary can be established for setting up heavy equipment for future excavation.

Several nearby homes were evacuated in case the 30-foot wide sinkhole got larger but officials said Friday it only appeared to be getting deeper. Soil samples showed that the sinkhole has compromised the ground underneath a home next door, engineers said Saturday.

The residents of that house were allowed 20 minutes in their home on Saturday to gather belongings. Firefighters and residents formed an assembly line to move items out of the house into SUVs and trucks.

Rescue officials said that in addition to soil samples, they were focusing on engineering analysis, ground penetration radar and other techniques to determine the extent of the ongoing collapse. Listening devices were being used to detect any evidence of life although Bush was presumed dead.

The Bush brothers worked together as landscapers, according to Leland Wicker, 48, one of the other residents of the house.

The risk of sinkholes is common in Florida due to the state's porous geological bedrock, according to the Florida Department of Environmental Protection. As rainwater filters down into the ground, it dissolves the rock, causing erosion that can lead to underground caverns, which cause sinkholes when they collapse.

Reuters

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Kelly lifts No. 3 Duke past No. 5 Miami 79-76

DURHAM, N.C. (AP) — Ryan Kelly had waited two months for the chance to help his Duke teammates reclaim the form that made them the nation's top-ranked team.

He returned with a stunning performance that shook up No. 5 Miami and left his own Hall of Fame coach struggling for the right words.

The senior scored a career-high 36 points in his return from a foot injury that had sidelined him since January, helping the third-ranked Blue Devils beat the Hurricanes 79-76 on Saturday night in a matchup of the Atlantic Coast Conference's top teams.

"I guess I was ready for it," Kelly said. "That's all I can say."

Kelly knocked down 10 of 14 shots — including 7 of 9 3-pointers— for the Blue Devils (25-4, 12-4 ACC), who avenged a blowout road loss in January by grinding out a tough win in Cameron Indoor Stadium. He also went 9-for-12 from the foul line and pulled down seven rebounds in 32 minutes.

It left Duke coach Mike Krzyzewski joking to reporters that he was interested to read how they'd describe Kelly's big night.

"I mean, me saying 'spectacular' or whatever doesn't do his performance justice," Krzyzewski said. "One for the ages. Probably as good a performance as any player has had — a Duke player has had — in Cameron."

Kelly's performance was the highlight of a game that certainly lived up to the teams' lofty rankings and their status as the league's best. Miami led by seven in the first half and by two at the break, while Duke never led by more than five until the final 3 minutes.

Quinn Cook added 15 points, including a 3-pointer that gave Duke a 10-point lead with 1:55 left.

But the Hurricanes (23-5, 14-2) made a frantic rally and missed two 3s in the final seconds to tie it. Shane Larkin came up short on the first over Kelly. Durand Scott ran down the rebound and fired a pass to the left corner to Rion Brown, whose final 3 clanged off the rim as the horn sounded.

Kelly's season-high was 22 points and his career-best was 23 points before Saturday. He had missed 13 straight games with the right foot injury, though he had been gradually increasing his work in practice in recent days before going right back in the starting lineup Saturday.

"I just knew I was going to play my hardest," Kelly said. "Honestly, though, more than anything it was just going to be whether I could hold up with my breathing. I haven't played any games in a long time, and being in a game is a lot different from being in practice or anything you can do. But I think I held up all right."

He missed a 3 on Duke's first possession, but knocked one down 2½ minutes in and never looked rusty.

"Well, I thought we prepared for Ryan Kelly but obviously not for that Ryan Kelly," Miami coach Jim Larranaga said. "He was sensational from start to finish."

Miami had beaten Duke 90-63 in January and had already clinched at least a share of the ACC regular-season title with the Blue Devils' loss at Virginia on Thursday night. Miami will win its first ACC crown outright by beating either Georgia Tech or Clemson at home this week.

But Saturday's game was about more than just the league standings or the chance to avenge that blowout loss for the Blue Devils. Rather, this was their chance to reclaim some momentum for March with Kelly's return.

"The thing (the win) does for us is it gives us a chance over the next few weeks to transition to the NCAA tournament," Krzyzewski said. "We're just running a little bit different race than anybody else right now. And it doesn't mean everything's OK, but it's a lot better."

Duke was unbeaten with nonconference wins against Kentucky, Louisville and Ohio State when Kelly went down against Clemson in January. It was during Kelly's absence that Duke suffered 27-point loss at Miami on Jan. 23, a game that saw the Hurricanes romping unchecked through Duke's passive defense and even slapping the floor in an apparent jab at the Blue Devils' tradition.

The 6-foot-11 forward was averaging 13 points and five rebounds, and stretched defenses with his outside shot to open space for Mason Plumlee inside.

Fittingly, he started the spurt that finally put the Blue Devils ahead for good. First he hit a pair of free throws, then knocked down a 3-pointer over Kenny Kadji with the shot clock winding down to push Duke to a 58-56 lead with 9:13 left. Plumlee followed with a short hook to cap the 7-0 run for a 60-56 edge.

Duke extended its lead with another 7-0 burst, with freshman Rasheed Sulaimon scoring a pair of driving baskets before Cook's 3 that appeared to have Duke in control.

Miami fought back, getting a 3-pointer from Trey McKinney Jones to make it a one-possession game with 1:06 left. But in addition to those late misses, Larkin also had a costly turnover when he threw away a sideline pass to Brown with Miami trailing by just two with about 30 seconds left.

"This is the type of game that everybody lives for," said Durand Scott, who scored 12 for the Hurricanes. "You can't really get mad at this. We went out there, we played our hardest, we're proud of ourselves, and our team did the best that we could. We just fell short a 3."

Duke shot 52 percent, with Kelly's big day offsetting Seth Curry's struggles (seven points on 2-for-8 shooting) and Miami's domination on the boards that led to a 20-4 edge in second-chance points.

Larkin scored 25 points to lead Miami, while Kenny Kadji added 17 points and 10 rebounds. But big man Reggie Johnson had a miserable night by going scoreless on 0-for-5 shooting and picking up his fourth foul in the first minute after halftime.

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WHO: Slight cancer risk after Japan nuke accident

LONDON (AP) — Two years after Japan's nuclear plant disaster, an international team of experts said Thursday that residents of areas hit by the highest doses of radiation face an increased cancer risk so small it probably won't be detectable.

In fact, experts calculated that increase at about 1 extra percentage point added to a Japanese infant's lifetime cancer risk.

"The additional risk is quite small and will probably be hidden by the noise of other (cancer) risks like people's lifestyle choices and statistical fluctuations," said Richard Wakeford of the University of Manchester, one of the authors of the report. "It's more important not to start smoking than having been in Fukushima."

The report was issued by the World Health Organization, which asked scientists to study the health effects of the disaster in Fukushima, a rural farming region.

On March 11, 2011, an earthquake and tsunami knocked out the Fukushima plant's power and cooling systems, causing meltdowns in three reactors and spewing radiation into the surrounding air, soil and water. The most exposed populations were directly under the plumes of radiation in the most affected communities in Fukushima, which is about 150 miles (240 kilometers) north of Tokyo.

In the report, the highest increases in risk are for people exposed as babies to radiation in the most heavily affected areas. Normally in Japan, the lifetime risk of developing cancer of an organ is about 41 percent for men and 29 percent for women. The new report said that for infants in the most heavily exposed areas, the radiation from Fukushima would add about 1 percentage point to those numbers.

Experts had been particularly worried about a spike in thyroid cancer, since radioactive iodine released in nuclear accidents is absorbed by the thyroid, especially in children. After the Chernobyl disaster, about 6,000 children exposed to radiation later developed thyroid cancer because many drank contaminated milk after the accident.

In Japan, dairy radiation levels were closely monitored, but children are not big milk drinkers there.

The WHO report estimated that women exposed as infants to the most radiation after the Fukushima accident would have a 70 percent higher chance of getting thyroid cancer in their lifetimes. But thyroid cancer is extremely rare and one of the most treatable cancers when caught early. A woman's normal lifetime risk of developing it is about 0.75 percent. That number would rise by 0.5 under the calculated increase for women who got the highest radiation doses as infants.

Wakeford said the increase may be so small it will probably not be observable.

For people beyond the most directly affected areas of Fukushima, Wakeford said the projected cancer risk from the radiation dropped dramatically. "The risks to everyone else were just infinitesimal."

David Brenner of Columbia University in New York, an expert on radiation-induced cancers, said that although the risk to individuals is tiny outside the most contaminated areas, some cancers might still result, at least in theory. But they'd be too rare to be detectable in overall cancer rates, he said.

Brenner said the numerical risk estimates in the WHO report were not surprising. He also said they should be considered imprecise because of the difficulty in determining risk from low doses of radiation. He was not connected with the WHO report.

Some experts said it was surprising that any increase in cancer was even predicted.

"On the basis of the radiation doses people have received, there is no reason to think there would be an increase in cancer in the next 50 years," said Wade Allison, an emeritus professor of physics at Oxford University, who also had no role in developing the new report. "The very small increase in cancers means that it's even less than the risk of crossing the road," he said.

WHO acknowledged in its report that it relied on some assumptions that may have resulted in an overestimate of the radiation dose in the general population.

Gerry Thomas, a professor of molecular pathology at Imperial College London, accused the United Nations health agency of hyping the cancer risk.

"It's understandable that WHO wants to err on the side of caution, but telling the Japanese about a barely significant personal risk may not be helpful," she said.

Thomas said the WHO report used inflated estimates of radiation doses and didn't properly take into account Japan's quick evacuation of people from Fukushima.

"This will fuel fears in Japan that could be more dangerous than the physical effects of radiation," she said, noting that people living under stress have higher rates of heart problems, suicide and mental illness.

In Japan, Norio Kanno, the chief of Iitate village, in one of the regions hardest hit by the disaster, harshly criticized the WHO report on Japanese public television channel NHK, describing it as "totally hypothetical."

Many people who remain in Fukushima still fear long-term health risks from the radiation, and some refuse to let their children play outside or eat locally grown food.

Some restrictions have been lifted on a 12-mile (20-kilometer) zone around the nuclear plant. But large sections of land in the area remain off-limits. Many residents aren't expected to be able to return to their homes for years.

Kanno accused the report's authors of exaggerating the cancer risk and stoking fear among residents.

"I'm enraged," he said.

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Mari Yamaguchi in Tokyo and AP Science Writer Malcolm Ritter in New York contributed to this report.

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Online:

WHO report: http://bit.ly/YDCXcb

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Comings and goings at 'Downton Abbey' next season

NEW YORK (AP) — Shirley MacLaine will be returning to "Downton Abbey" next season, and opera star Kiri Te Kanawa is joining the cast.

MacLaine will reprise her role as Martha Levinson, Lord Robert Crawley's freewheeling American mother-in-law, Carnival Films and "Masterpiece" on PBS said Saturday. MacLaine appeared in episodes early last season.

New Zealand-born soprano Te Kanawa will play a house guest. She will sing during her visit.

Other new cast members and characters include:

— Tom Cullen as Lord Gillingham, described as an old family friend of the Crawleys who visits the family as a guest for a house party (and who might be the one to mend Lady Mary Crawley's broken heart).

— Nigel Harman will play a valet named Green.

— Harriet Walter plays Lady Shackleton, an old friend of the Dowager Countess.

— Joanna David will play a guest role as the Duchess of Yeovil.

— Julian Ovenden is cast as aristocrat Charles Blake.

"The addition of these characters can only mean more delicious drama, which is what 'Downton Abbey' is all about," said "Masterpiece" executive producer Rebecca Eaton.

Meanwhile, the producers have confirmed that villainous housemaid Sarah O'Brien won't be back. Siobhan Finneran, who played her, is leaving the show.

These announcements come shortly after the third season's airing in the United States. It concluded with the heartbreaking death of popular Matthew Crawley in a car crash, leaving behind his newborn child and loving wife, Lady Mary Crawley.

Matthew's untimely demise was the result of the departure from the series by actor Dan Stevens, who had starred in that role.

The third season also saw the shocking death of Lady Sybil Branson, who died during childbirth. She was played by the departing Jessica Brown Findlay.

Last season the wildly popular melodrama, set in early 20th century Britain, was the most-watched series on PBS since Ken Burns' epic "The Civil War," which first aired in 1990. The Nielsen Co. said 8.2 million viewers saw the "Downton" season conclusion.

"Downton Abbey," which airs on the "Masterpiece" anthology, won three Emmy awards last fall, including a best supporting actress trophy for Maggie Smith (the Dowager Countess), who also won a Golden Globe in January.

In all, the series has won nine Emmys, two Golden Globes and a Screen Actors Guild Award for the ensemble cast, which is the first time the cast of a British television show has won this award.

Hugh Bonneville, Michelle Dockery, Elizabeth McGovern, Jim Carter and Brendan Coyle are among its other returning stars.

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Online:

http://www.pbs.org/downton

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Next Groupon CEO will have experience, Lefkofsky says

Groupon has fired its chief executive and the money-losing company faces several challenges, but Executive Chairman Eric Lefkofsky is undeterred. The Chicago-based e-commerce site, he said, is "inches away from greatness."

Lefkofsky, Groupon's co-founder and largest shareholder, speaking to the Tribune in his first public comments since Thursday's ouster of Andrew Mason, declined to discuss specific reasons for replacing Mason, though he pointed out at least one recent management error.

He also sounded as if he now agrees with the widespread sentiment that Mason didn't have the right skills to deal with the company's unique problems: It is global, large, technology-driven and growing fast, but it's also unprofitable, dogged by competitors and under intense scrutiny for its missteps.

Lefkofsky said he looked forward to hiring a CEO "who has experience dealing with the issues we're dealing with … who has been there and done that."

In spite of Groupon's troubles, "the long-term horizon of the company is fantastic," Lefkofsky said.

He'll have to forgive Wall Street if it casts a skeptical eye at his optimism. Even though it's less than 5 years old, Groupon popularized the idea of using the Internet to match local merchants and customers and it is now an established business. A new CEO isn't going to make the company's problems magically disappear.

Groupon is at a crossroads, not just because it has to find a replacement for Mason, the co-founder whose playful, irreverent style set the tone for the company's culture. Groupon faces shrinking consumer interest in its daily deals business that sends online coupons for everything from restaurants to pedicures to inboxes every day. And it has huge problems in its European operations.

Groupon is attempting to evolve its business model beyond daily deals into an ongoing, search-driven local marketplace. But the investment has been expensive. To boost growth, the company launched a separate business selling products at steep discounts. But that retail business has dragged down profit margins.

"While a new CEO may bring better skill sets (particularly in technology or online commerce), we believe that the challenges Groupon faces will only increase," wrote Edward Woo, an analyst at Ascendiant Capital Markets.

Lefkofsky supports the new course Mason had charted with input from him and other members of the board of directors.

In North America, email now drives less than 50 percent of Groupon's transactions. Half of local transaction volume comes from what the company calls its "deal bank," its searchable inventory of deals that are active for longer periods of time.

"This isn't about 'Oh, my God, we're going down the completely wrong road,'" Lefkofsky said. "Largely, the strategy and the business is going to continue down the exact same path it has been on."

He described Groupon as a "pioneer of curated commerce. We're selecting a certain number of deals every day, and then we're serving them out to people, sometimes via email, sometimes via mobile."

But the board decided that as the company enters the next stage of its evolution, the time was right to find "a new CEO that had some of those skills we need long term," Lefkofsky said.

In the interim, Lefkofsky and another director, former AOL Inc. executive Ted Leonsis, will run the company.

"Both (Ted) and I felt the company was inches away from greatness," Lefkofsky said.

That's a stretch judging by the stock market. Groupon's shares are down 75 percent in the 15 months since it went public at $20 a share. On Friday, in reaction to Mason's exit, the stock jumped more than 12 percent to close at $5.10.

While Groupon caught fire as a startup, it has stumbled repeatedly as it has grown. The company made embarrassing mistakes during the process of going public and then faced scrutiny over its accounting methods.

Since going public, Groupon has turned a quarterly profit only once.

In the fourth quarter, its net loss grew to $81.1 million, and the company projected weaker-than-expected operating income for the current quarter.

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Redflex execs out as scandal grows in red light camera firm

The president, chief financial officer and top lawyer for Chicago's red light camera company resigned this week amid an escalating corruption scandal that has cost Redflex Traffic Systems Inc. its lucrative, decadelong relationship with the city.

The resignations came as Redflex said it was winding down a company-funded probe into allegations of an improper relationship between the company and the former city transportation manager who oversaw its contract until 2011, a relationship first disclosed by the Tribune in October. A longtime friend of that city manager was hired by Redflex for a high-paid consulting deal.

The company recently acknowledged it improperly paid for thousands of dollars in trips for the former city official, the latest in a series of controversial revelations that have shaken Redflex from its Phoenix headquarters to Australia, the home of parent company Redflex Holdings Ltd.

Mayor Rahm Emanuel's administration banned the company from competing for the upcoming speed camera contract and went further last month by announcing that Redflex would lose its red light contract when it expires in June. The Chicago program, with more than 380 cameras, has been the company's largest in North America and is worth about 13 percent of worldwide revenue for Redflex Holdings. Since 2003 it has generated about $100 million for Redflex and more than $300 million in ticket revenue for the city.

In an email addressed to all company employees, Redflex Holdings CEO and President Robert T. DeVincenzi announced the resignations of three top executives in Phoenix: Karen Finley, the company's longtime president and chief executive officer; Andrejs Bunkse, the general counsel; and Sean Nolen, the chief financial officer. Their exits follow those of the chairman of the board of Redflex Holdings, another Australian board member and the company's top sales executive who Redflex has blamed for much of its Chicago problems.

"Today's announcement of executive changes follows the conclusion of our investigation in Chicago and marks the dividing line between the past and where this company is headed," said DeVincenzi, who took over as CEO of the Phoenix company. "This day, and each day going forward, we intend to be a constructive force in our industry, promoting high ethical standards and serving the public interest."

The company also held town hall meetings in Arizona to unveil reforms, including new requirements to put all company employees through anti-bribery and anti-corruption training, hiring a new director of compliance to ensure that employees adhere to company policies and establishing a 24-hour whistle-blower hotline.

The resignations and a second consecutive halt to public trading of the company's stock are the latest in a string of events that followed Tribune reports last year regarding 2-year-old internal allegations of corruption in the Chicago contract that the company previously said were investigated and discounted.

The scandal now enveloping the company centers on its relationship to former Chicago transportation official John Bills, who retired in 2011 after overseeing the company's contract since it began in 2003.

A whistle-blower letter obtained by the Tribune said Bills received lavish vacations directly on the expense report of a company executive and raised questions about improper ties between Bills and a Redflex consultant who received more than $570,000 in company commissions.

Bills and the consultant, a longtime friend, have denied wrongdoing.

The company told the Tribune in October that its investigation into the 2010 letter found only one instance of an inadvertent expenditure for Bills, a two-day hotel stay at the Arizona Biltmore expensed by the executive. Redflex lawyer Bunkse told the newspaper that the company responded by sending the executive to "anti-bribery" training and overhauling company expense procedures.

But after additional Tribune reports, the company hired a former Chicago inspector general, David Hoffman, to conduct another investigation. Hoffman made an interim report of his findings to company board members this month. That report prompted the company officials to acknowledge a much deeper involvement with Bills, including thousands of dollars for trips to the Super Bowl and White Sox spring training over many years.

The chairman of the company's Australian board of directors resigned, trading on company stock was temporarily suspended and the company acknowledged that it is sharing information with law enforcement.

Trading was halted again this week pending more details about the company's latest actions.

dkidwell@tribune.com

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Heat top Grizzlies 98-91 for 13th straight win

MIAMI (AP) — LeBron James endured his worst shooting night of the season, and still delivered the biggest basket of the game.

That's how things are going these days for the Miami Heat.

Dwyane Wade scored 22 points and set up James for a critical 3-pointer in the final half-minute, and the Heat extended their winning streak to 13 games by beating the Memphis Grizzlies 98-91 on Friday night.

"I thought this was one of our better wins of the season," Heat coach Erik Spoelstra said. "It was tough. We had to work for everything. We had to find a different way to win, deal with frustration ... and then make some plays down the stretch."

On a night when he shot just 4 for 14, James finished two rebounds shy of a triple-double, with 18 points and 10 assists. Shane Battier scored 14, Chris Bosh added 13 and Ray Allen had 10 for Miami, which snapped Memphis' eight-game winning streak.

But down the stretch, James — who had 14 points, four rebounds and four assists in the fourth quarter alone — was simply too much to handle.

"He made the big shot and that's all that matters," said Memphis' Marc Gasol, who led all scorers with 24. "He wasn't having the usual (numbers) he normally gets. I think we did a good job. He took a shot like he's supposed to and made it so kudos, move on."

Gasol tied the game with a pair of free throws with 2:44 left, before the Heat scored the next five — and quickly — to build a bit of breathing room. Bosh had a three-point play, and Wade took off in transition for a slam that put Miami up 90-85.

Memphis wasn't done. Gasol made two more free throws, then scored off a dribble-drive with 42.5 seconds left to get the Grizzlies within 90-89.

But that was the last gasp.

On the next Miami possession, James hit a 3-pointer with 24 seconds remaining, and the Heat made free throws from there to close out the win.

"I've got confidence I'm going to knock it down, just like all the other ones I've missed," James said. "I had confidence in those too, but they just don't go down. That's how the ball goes sometimes. But I'm always confident in my next shot. D-Wade gave me a great pass and I was able to knock it down."

The Grizzlies got 14 points from Zach Randolph, who said he was bothered throughout after turning his left ankle on the game's first possession. Mike Conley added 14 for Memphis, which got 10 from Quincy Pondexter.

"I have no problem with the game," Grizzlies coach Lionel Hollins said. "We were right there. They just made a few more plays than we did down the stretch."

For the Heat, this week was filled with attention for things like pregame dunking exhibitions and their version of a "Harlem Shake" video — which generated more than 5 million views on YouTube in about 24 hours of being posted.

Then came a basketball game, the likes of which had not been seen in the NBA for almost 20 years.

According to STATS LLC, the most recent time before Friday that there was a game between two teams that were carrying at least 12- and eight-game winning streaks was Dec. 3, 1993, when Atlanta (which had won nine straight) beat Houston (which had won 15 straight).

In fact, the Heat-Grizzlies game was just the eighth in NBA history pitting two teams with active winning streaks of at least eight in a row.

Want more significance? Spoelstra and Hollins were announced earlier in the day as the Eastern and Western Conference coaches of the month, respectively. And news came just before tipoff that James was picked yet again as the East's player of the month, making him 4-for-4 in that department this season.

"Just a residual of team success," Spoelstra said.

Added Hollins: "I'm the head coach and I get the credit and I get the blame, but those guys have been playing extremely well ... coming together with all the turmoil and all the chaos that we've had."

So of course, in a game between the NBA's two hottest teams, the start was ice cold. The teams combined to miss 23 of their first 32 shots.

And for James, things were downright frigid.

After the best shooting month of his career — the three-time MVP made 64 percent of his shots in February, the best month of any NBA player with 200 attempts since Kareem Abdul-Jabbar shot 65 percent in March 1983 — James' run in March started in a decidedly different manner.

James made a 3-pointer on his first attempt of the night, then missed his next eight tries, and had just four points after three quarters.

A dunk with 9:19 left in regulation was just his second made field goal of the night, and he hit a runner midway through the fourth to reach double-digit scoring for the 475th straight regular-season game, going back to Jan. 6, 2007.

"You won't see that happening too many times," Wade said. "It was great that on a night where he didn't have it going offensively, he had trust in his guys and didn't force up 20-odd shots. He played to pass and he still was aggressive. We'll take it. We'll take it, him getting those numbers and us getting the win."

NOTES: The Heat had the blessing of team officials when they took a half-hour before practice Thursday to tape the "Harlem Shake" video in their locker room. "We don't need to be serious all the time," Bosh said. ... Battier has at least one 3-pointer in 14 straight games, the fourth-best such streak of his career. ... Miami is at New York on Sunday, facing a Knicks team that has already beaten the Heat twice — by 20 points each time. "Our guys will look forward to playing this game," Spoelstra said.

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WHO: Slight cancer risk after Japan nuke accident

LONDON (AP) — Two years after Japan's nuclear plant disaster, an international team of experts said Thursday that residents of areas hit by the highest doses of radiation face an increased cancer risk so small it probably won't be detectable.

In fact, experts calculated that increase at about 1 extra percentage point added to a Japanese infant's lifetime cancer risk.

"The additional risk is quite small and will probably be hidden by the noise of other (cancer) risks like people's lifestyle choices and statistical fluctuations," said Richard Wakeford of the University of Manchester, one of the authors of the report. "It's more important not to start smoking than having been in Fukushima."

The report was issued by the World Health Organization, which asked scientists to study the health effects of the disaster in Fukushima, a rural farming region.

On March 11, 2011, an earthquake and tsunami knocked out the Fukushima plant's power and cooling systems, causing meltdowns in three reactors and spewing radiation into the surrounding air, soil and water. The most exposed populations were directly under the plumes of radiation in the most affected communities in Fukushima, which is about 150 miles (240 kilometers) north of Tokyo.

In the report, the highest increases in risk are for people exposed as babies to radiation in the most heavily affected areas. Normally in Japan, the lifetime risk of developing cancer of an organ is about 41 percent for men and 29 percent for women. The new report said that for infants in the most heavily exposed areas, the radiation from Fukushima would add about 1 percentage point to those numbers.

Experts had been particularly worried about a spike in thyroid cancer, since radioactive iodine released in nuclear accidents is absorbed by the thyroid, especially in children. After the Chernobyl disaster, about 6,000 children exposed to radiation later developed thyroid cancer because many drank contaminated milk after the accident.

In Japan, dairy radiation levels were closely monitored, but children are not big milk drinkers there.

The WHO report estimated that women exposed as infants to the most radiation after the Fukushima accident would have a 70 percent higher chance of getting thyroid cancer in their lifetimes. But thyroid cancer is extremely rare and one of the most treatable cancers when caught early. A woman's normal lifetime risk of developing it is about 0.75 percent. That number would rise by 0.5 under the calculated increase for women who got the highest radiation doses as infants.

Wakeford said the increase may be so small it will probably not be observable.

For people beyond the most directly affected areas of Fukushima, Wakeford said the projected cancer risk from the radiation dropped dramatically. "The risks to everyone else were just infinitesimal."

David Brenner of Columbia University in New York, an expert on radiation-induced cancers, said that although the risk to individuals is tiny outside the most contaminated areas, some cancers might still result, at least in theory. But they'd be too rare to be detectable in overall cancer rates, he said.

Brenner said the numerical risk estimates in the WHO report were not surprising. He also said they should be considered imprecise because of the difficulty in determining risk from low doses of radiation. He was not connected with the WHO report.

Some experts said it was surprising that any increase in cancer was even predicted.

"On the basis of the radiation doses people have received, there is no reason to think there would be an increase in cancer in the next 50 years," said Wade Allison, an emeritus professor of physics at Oxford University, who also had no role in developing the new report. "The very small increase in cancers means that it's even less than the risk of crossing the road," he said.

WHO acknowledged in its report that it relied on some assumptions that may have resulted in an overestimate of the radiation dose in the general population.

Gerry Thomas, a professor of molecular pathology at Imperial College London, accused the United Nations health agency of hyping the cancer risk.

"It's understandable that WHO wants to err on the side of caution, but telling the Japanese about a barely significant personal risk may not be helpful," she said.

Thomas said the WHO report used inflated estimates of radiation doses and didn't properly take into account Japan's quick evacuation of people from Fukushima.

"This will fuel fears in Japan that could be more dangerous than the physical effects of radiation," she said, noting that people living under stress have higher rates of heart problems, suicide and mental illness.

In Japan, Norio Kanno, the chief of Iitate village, in one of the regions hardest hit by the disaster, harshly criticized the WHO report on Japanese public television channel NHK, describing it as "totally hypothetical."

Many people who remain in Fukushima still fear long-term health risks from the radiation, and some refuse to let their children play outside or eat locally grown food.

Some restrictions have been lifted on a 12-mile (20-kilometer) zone around the nuclear plant. But large sections of land in the area remain off-limits. Many residents aren't expected to be able to return to their homes for years.

Kanno accused the report's authors of exaggerating the cancer risk and stoking fear among residents.

"I'm enraged," he said.

___

Mari Yamaguchi in Tokyo and AP Science Writer Malcolm Ritter in New York contributed to this report.

__

Online:

WHO report: http://bit.ly/YDCXcb

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Suit over hiring of Jackson doctor to go to trial

LOS ANGELES (AP) — A judge has dismissed all but one count in a civil lawsuit by Michael Jackson's mother against concert giant AEG Live, which hired a doctor who was convicted of involuntary manslaughter in the singer's death.

Superior Court Judge Yvette Palazuelos' ruling Thursday means that Katherine Jackson will have a trial on her claim that AEG negligently hired and supervised former cardiologist Conrad Murray. The ruling dismisses claims that AEG could be held liable for Murray's conduct and breached its duty to properly care for the pop superstar.

AEG Live was promoting a series of comeback concerts by Michael Jackson in London titled "This Is It." Jackson died in June 2009 while in final preparations for the shows after Murray administered a lethal dose of the anesthetic propofol in the singer's bedroom.

Katherine Jackson's attorney Kevin Boyle was not immediately available for comment but argued at a hearing Monday that AEG controlled Murray's actions and failed to properly investigate him before agreeing to pay him to work as the singer's physician.

He cited Murray's debt problems as a red flag that AEG should have spotted and contends the company created a serious conflict between his responsibility to Jackson and his own financial well-being.

Jackson died at age 50 before a contract that would have paid Murray $150,000 a month was finalized.

AEG attorney Marvin Putnam has said Murray was not employed by the promoter and he expects the company to win at trial. He said Katherine Jackson's lawyers will be unable to prove that AEG should have foreseen that Murray was a danger to the "Thriller" singer.

A trial is scheduled to begin April 2.

___

Anthony McCartney can be reached at http://twitter.com/mccartneyAP .

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Incomes see largest drop in 20 years

U.S. consumer spending rose in January as Americans spent more on services, with savings providing a cushion after income recorded its biggest drop in 20 years.

Income tumbled 3.6 percent, the largest drop since January 1993. Part of the decline was payback for a 2.6 percent surge in December as businesses, anxious about higher taxes, rushed to pay dividends and bonuses before the new year.

A portion of the drop in January also reflected the tax hikes. The income at the disposal of households after inflation and taxes plunged a 4.0 percent in January after advancing 2.7 percent in December.

The Commerce Department said on Friday consumer spending increased 0.2 percent in January after a revised 0.1 percent rise the prior month. Spending had previously been estimated to have increased 0.2 percent in December.

January's increase was in line with economists' expectations. Spending accounts for about 70 percent of U.S. economic activity and when adjusted for inflation, it gained 0.1 percent after a similar increase in December.

Though spending rose in January, it was supported by a rise in services, probably related to utilities consumption. Spending on goods fell, suggesting some hit from the expiration at the end of 2012 of a 2 percent payroll tax cut. Tax rates for wealthy Americans also increased.

The impact is expected to be larger in February's spending data and possibly extend through the first half of the year as households adjust to smaller paychecks, which are also being strained by rising gasoline prices.

Economists expect consumer spending in the first three months of this year to slow down sharply from the fourth quarter's 2.1 percent annual pace.

With income dropping sharply and spending rising, the saving rate - the percentage of disposable income households are socking away - fell to 2.4 percent, the lowest level since November 2007. The rate had jumped to 6.4 percent in December.

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Tax on pack of cigarettes sold in Chicago up $1 to $6.67

On the eve of a $1-per-pack Cook County cigarette tax increase, County Board President Toni Preckwinkle stood in the glow of X-rays showing damaged lungs, surrounded by some of Stroger Hospital's top pulmonary specialists as she discussed how smoking shortens people's lives.

The setting and talking points made clear the message Preckwinkle wanted to convey Thursday: This is a public health problem, one she plans to fight by giving smokers an incentive to quit and teens a reason not to start.

But the county's tax increase is more than just a campaign to protect people from emphysema and lung cancer. Preckwinkle is counting on $25.6 million this year from the move to help balance the budget. The history of cigarette tax increases suggests the county will be lucky to get that much in 2013 and should expect diminishing returns in the years ahead.

Smokes are a financial well that public officials have gone to repeatedly to shore up shaky finances at the local and state level. When the county tax increase takes effect Friday, a pack of cigarettes purchased in Chicago will come with $6.67 tacked on by the city, county and state. That's just behind New York City's nation-leading $6.86 in taxes per pack. It will also push the cost of a pack of cigarettes in Chicago to as much as $11.

Recent cigarette tax increases have had only a short-term benefit to the government bottom line. Some people quit, while others buy cigarettes online or outside the county or state.

When the county last raised the cigarette tax — by $1 per pack in 2006 — collections initially shot up by $46.5 million, hitting $203.7 million, county records show. But by 2009, the county collected $20.4 million less than it had in 2005.

Mayor Richard M. Daley bumped up the city of Chicago's share of the cigarette tax by 32 cents in 2005 and another 20 cents in 2006, to 68 cents per pack. He saw collections rise from $15.6 million in 2004 to $32.9 million in 2006, according to a city report. But city cigarette tax revenue fell to $28.4 million in 2007, and continued dropping to $18.7 million by 2011, records show.

At the state level, Quinn pushed through a $1-a-pack hike in June.

Before that, state lawmakers and Gov. George Ryan agreed on a 40-cent increase in 2002. Cigarette tax proceeds went up by more than $178 million in 2003, to $643.1 million, and rose to $729.2 million in 2004. The revenue then fell steadily to $549 million by 2010 before edging back up to $580 million last year, according to state records.

The county is preparing for the windfall from the $1 increase to be strong this year, then decline. County officials project that after bringing in $25.6 million for the remainder of this budget year, the increase will net about $29 million for 2014, $21 million in 2015, $15 million in 2016 and just $9 million in 2017.

Preckwinkle says that's OK with her.

"My hope would be that over the long run this is no longer a way in which governments look to raise money, because fewer and fewer people are smoking," she said. "So I would hope that we have the effect of reducing our revenue because more people quit."

The county could end up saving money as cigarette tax revenue falls because uninsured people with ailments related to smoking are such a heavy financial burden to the public hospital system, Preckwinkle said.

In the meantime, Preckwinkle pledged to hire more staff this year to crack down on stores selling untaxed packs and large-scale tobacco smuggling from surrounding states. "We anticipate that there may be some noncompliance, as there always is when you institute an increase like this," she said.

Preckwinkle also acknowledged that the higher tax rate will push some smokers into surrounding counties or Indiana to pick up their packs, but she predicted such cross-border runs will not last.

"While people may initially, when the prices rise, go to other states — Indiana, Wisconsin or wherever — over time that trek gets very tiresome and time-consuming, and they return to their former habits of buying their cigarettes nearby," Preckwinkle said.

But David Vite, president of the Illinois Retail Merchants Association, said he thinks the cigarette taxes in Cook County are now so high compared with surrounding areas that smokers will continue to make the longer drive, and Illinois stores near jurisdictions with lower taxes will struggle even more.

"You might see people return to their old patterns if we were talking about a slight disparity, say 25 cents a pack," Vite said. "But now we're talking about a difference of nearly $3 a pack compared to Indiana, almost $30 a carton. You're going to see guys working in factories saying, 'It's my week to make a run,' heading to Indiana and coming back with $1,500 worth of cigarettes for all their co-workers."

jebyrne@tribune.com

Twitter @_johnbyrne

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Groupon fires CEO, Mason admits "failure" in candid memo

SAN FRANCISCO (Reuters) - Groupon Inc fired Andrew Mason as chief executive officer on Thursday, ousting a co-founder who captured headlines with his quirky style but failed to reverse a crumbling share price or stop a gradual erosion of its main daily deals business.

The leader in Internet daily deals launched a search for a new leader to turn the company around, the same day its stock slid 24 percent after a dismal quarterly results report.

In an unusually candid post-firing letter, Mason -- known for his atypical sense of humor -- confessed he was getting in the way of the company he co-founded just a few years ago, and had failed in his role as leader.

"After four and a half intense and wonderful years as CEO of Groupon, I've decided that I'd like to spend more time with my family. Just kidding - I was fired today. If you're wondering why... you haven't been paying attention," Mason wrote in a memo addressed to the People of Groupon and made available to Reuters.

"From controversial metrics in our S1 to our material weakness to two quarters of missing our own expectations and a stock price that's hovering around one quarter of our listing price, the events of the last year and a half speak for themselves. As CEO, I am accountable."

The company said in a statement that Mason was asked to step down.

Co-founder Eric Lefkofsky and board member Ted Leonsis will lead the company in the interim, until a permanent CEO is found.

The company plans to hire a recruiting firm for the CEO search, a spokesman said.

The Groupon board met on Thursday and decided to replace Mason. No Groupon board members will be considered as CEO candidates, according to a person familiar with the board's deliberations.

Newly hired chief operating officer Kal Raman -- brought onboard to turn around the international operations -- is a possible candidate. However, the company is likely to favor an outside candidate who has e-commerce and global experience, said the person, who is familiar with Groupon's strategic thinking.

Groupon declined to comment on CEO candidates.

"We all know our operational and financial performance has eroded the confidence of many of our supporters, both inside and outside of the company. Now our task at hand is to win back their support," according to a letter from Lefkofsky and Leonsis.

GROUPON'S HEYDAY

Groupon, once hailed on magazine covers as the fastest-growing startup in history, rose to prominence in 2010 as the desire for daily deals -- sharply discounted online coupons for everything from neighborhood car washes to spa treatments -- peaked.

The company, which Mason once joked he founded to get then-partner Lefkofsky "off his back", in late 2011 joined a number of consumer Internet startups to go public at multibillion dollar valuations.

But shortly after, demand for daily deals began to evaporate. Groupon's costly international expansion, particularly into economically troubled Europe, began to erode growth and margins. And Wall Street quickly soured on the company, wiping out a lot of its market value.

"Groupon is a very large, very complex multifaceted global business. It's got ambitions in a lot of different areas and categories," said Macquarie Research analyst Tom White. "They are either going to have to find somebody who is a proven executer in handling complex businesses, or maybe this is a signal they are going to simplify."

The company's stock closed 24 percent lower on Thursday after the daily deals company posted a surprise quarterly loss on Wednesday, partly because it took a smaller cut of revenue from merchants offering holiday season discounts.

"The next person who comes in will have tough road ahead. The new CEO will have to be somebody with a strong stomach," said Dan Niles, chief investment officer at AlphaOne Capital.

"It's a lot like J.C. Penney. Changing the CEO is not going to change the fundamental tough aspects of the business. J.C. Penney stock did great when they replaced the CEO, and look what has happened since then."

Groupon shares rose as much as 8 percent in after-hours trade, from a close of $4.53 on the Nasdaq. However, later in the evening session the stock was up 4.2 percent at $4.72.

It has lost three quarters of its value since its November 2011 initial public offering at $20.

(Additional reporting By Liana Baker and Jennifer Saba in New York and Alexei Oreskovic and Poornima Gupta in San Francisco, writing by Edwin Chan; Editing by Gary Hill and Carol Bishopric)

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No. 2 Gonzaga survives scare from BYU 70-65

PROVO, Utah (AP) — Kelly Olynyk scored 19 points, Gary Bell Jr. hit four 3-pointers and No. 2 Gonzaga survived a late Brigham Young rally for a 70-65 victory Thursday night and its 10th outright conference title.

The Bulldogs (28-2, 15-0 West Coast Conference) host Portland on Saturday and a win there could mean Gonzaga's first-ever No. 1 ranking.

Gonzaga led by 11 points with 10:51 left but BYU fought back.

Consecutive 3-pointers by Brock Zylstra, another by Craig Cusick and two free throws by Brandon Davies tied it at 60 with 4:18 remaining.

Olynyk hit a key jumper down the stretch and Kevin Pangos made two free throws to help seal it.

BYU had one final chance with 6.6 seconds remaining and down three points but Gonzaga fouled Cusick before he could attempt a 3.

Tyler Haws had 19 points for BYU (20-10, 9-6).

Davies added 12 points and 11 rebounds in his final home game for the Cougars despite being plagued by foul trouble.

The Bulldogs won the first meeting in Spokane, Wash., by 20 points.

Olynyk was nearly perfect in the first game, going 9 of 9 from the field and 8 of 8 from the free throw line for 26 points.

This time, he probably felt as if he were in a football game as it was rough-and-tumble from the start, with a former Cougars football player even called for an intentional foul on Olynyk as he drove the lane.

He finished 7 of 10 from the field.

Bell was the lone Gonzaga player to have any success shooting the 3.

Pangos was 1 of 12 from beyond the arc and the Bulldogs 6 of 30 overall from 3-point range.

But Gonzaga held BYU to 36.5 percent shooting and had a marked advantage at the free throw line. The Bulldogs made 20 of 34 attempts, compared to 13 of 22 for BYU.

BYU's hopes of a seventh straight NCAA appearance may come down to winning the WCC tourney in Las Vegas. The Cougars also could see their streak of six consecutive 25-win seasons end.

At least the Cougars know they pushed Gonzaga to the limit.

After Pangos made two free throws, he fouled Cusick on a 3-point attempt with 7 seconds left.

Cusick made all three, pulling BYU to 67-65. Elias Harris made 3 of 4 free throws down the stretch, while BYU's shooting went cold

Should Gonzaga ascend to the top spot, the question remains whether the Bulldogs would garner a No. 1 seed in the NCAA tournament — something they have never achieved.

Their only losses this season were to Butler and Illinois when both were ranked No. 13.

Provided they defeat Portland, they will have won 12 straight heading into the WCC tournament.

On Thursday, they got a test.

The game was physical from the start, with bodies flying, players diving and the pace frenetic.

BYU suffered a blow early when Davies picked up two fouls in 2 1-2 minutes and he was replaced by converted football player — 6-foot-7 freshman Bronson Kaufusi.

The Bulldogs went to Olynyk often early. He had seven points in 5 minutes and the Bulldogs bumped their lead to 19-10 thanks to two 3-pointers by Bell.

The Cougars pulled to 23-18 on Davies' reverse dunk with 8:08 left in the half and were within 25-23 on a long jumper by Haws with 6:30 left.

Gonzaga led 35-31 at halftime but opened the second half with another 3-pointer by Bell and dunk by Olynyk, who forced Davies into his third foul less than 4 minutes in.

Davies picked up foul No. 4 with 13:33 left.

The game only got rougher, with Kaufusi called for an intentional foul as Olynyk drove to the basket with 11 minutes left.

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WHO: Slight cancer risk after Japan nuke accident

LONDON (AP) — Two years after Japan's nuclear plant disaster, an international team of experts said Thursday that residents of areas hit by the highest doses of radiation face an increased cancer risk so small it probably won't be detectable.

In fact, experts calculated that increase at about 1 extra percentage point added to a Japanese infant's lifetime cancer risk.

"The additional risk is quite small and will probably be hidden by the noise of other (cancer) risks like people's lifestyle choices and statistical fluctuations," said Richard Wakeford of the University of Manchester, one of the authors of the report. "It's more important not to start smoking than having been in Fukushima."

The report was issued by the World Health Organization, which asked scientists to study the health effects of the disaster in Fukushima, a rural farming region.

On March 11, 2011, an earthquake and tsunami knocked out the Fukushima plant's power and cooling systems, causing meltdowns in three reactors and spewing radiation into the surrounding air, soil and water. The most exposed populations were directly under the plumes of radiation in the most affected communities in Fukushima, which is about 150 miles (240 kilometers) north of Tokyo.

In the report, the highest increases in risk are for people exposed as babies to radiation in the most heavily affected areas. Normally in Japan, the lifetime risk of developing cancer of an organ is about 41 percent for men and 29 percent for women. The new report said that for infants in the most heavily exposed areas, the radiation from Fukushima would add about 1 percentage point to those numbers.

Experts had been particularly worried about a spike in thyroid cancer, since radioactive iodine released in nuclear accidents is absorbed by the thyroid, especially in children. After the Chernobyl disaster, about 6,000 children exposed to radiation later developed thyroid cancer because many drank contaminated milk after the accident.

In Japan, dairy radiation levels were closely monitored, but children are not big milk drinkers there.

The WHO report estimated that women exposed as infants to the most radiation after the Fukushima accident would have a 70 percent higher chance of getting thyroid cancer in their lifetimes. But thyroid cancer is extremely rare and one of the most treatable cancers when caught early. A woman's normal lifetime risk of developing it is about 0.75 percent. That number would rise by 0.5 under the calculated increase for women who got the highest radiation doses as infants.

Wakeford said the increase may be so small it will probably not be observable.

For people beyond the most directly affected areas of Fukushima, Wakeford said the projected cancer risk from the radiation dropped dramatically. "The risks to everyone else were just infinitesimal."

David Brenner of Columbia University in New York, an expert on radiation-induced cancers, said that although the risk to individuals is tiny outside the most contaminated areas, some cancers might still result, at least in theory. But they'd be too rare to be detectable in overall cancer rates, he said.

Brenner said the numerical risk estimates in the WHO report were not surprising. He also said they should be considered imprecise because of the difficulty in determining risk from low doses of radiation. He was not connected with the WHO report.

Some experts said it was surprising that any increase in cancer was even predicted.

"On the basis of the radiation doses people have received, there is no reason to think there would be an increase in cancer in the next 50 years," said Wade Allison, an emeritus professor of physics at Oxford University, who also had no role in developing the new report. "The very small increase in cancers means that it's even less than the risk of crossing the road," he said.

WHO acknowledged in its report that it relied on some assumptions that may have resulted in an overestimate of the radiation dose in the general population.

Gerry Thomas, a professor of molecular pathology at Imperial College London, accused the United Nations health agency of hyping the cancer risk.

"It's understandable that WHO wants to err on the side of caution, but telling the Japanese about a barely significant personal risk may not be helpful," she said.

Thomas said the WHO report used inflated estimates of radiation doses and didn't properly take into account Japan's quick evacuation of people from Fukushima.

"This will fuel fears in Japan that could be more dangerous than the physical effects of radiation," she said, noting that people living under stress have higher rates of heart problems, suicide and mental illness.

In Japan, Norio Kanno, the chief of Iitate village, in one of the regions hardest hit by the disaster, harshly criticized the WHO report on Japanese public television channel NHK, describing it as "totally hypothetical."

Many people who remain in Fukushima still fear long-term health risks from the radiation, and some refuse to let their children play outside or eat locally grown food.

Some restrictions have been lifted on a 12-mile (20-kilometer) zone around the nuclear plant. But large sections of land in the area remain off-limits. Many residents aren't expected to be able to return to their homes for years.

Kanno accused the report's authors of exaggerating the cancer risk and stoking fear among residents.

"I'm enraged," he said.

___

Mari Yamaguchi in Tokyo and AP Science Writer Malcolm Ritter in New York contributed to this report.

__

Online:

WHO report: http://bit.ly/YDCXcb

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Economic expansion weakest since 2011

The U.S. economy barely grew in the fourth quarter although a slightly better performance in exports and fewer imports led the government to scratch an earlier estimate that showed an economic contraction.

Gross domestic product expanded at a 0.1 percent annual rate, the Commerce Department said on Thursday, missing the 0.5 percent gain forecast by analysts in a Reuters poll.

The growth rate was the slowest since the first quarter of 2011 and far from what is needed to fuel a faster drop in the unemployment rate.

However, much of the weakness came from a slowdown in inventory accumulation and a sharp drop in military spending. These factors are expected to reverse in the first quarter.

Consumer spending was more robust by comparison, although it only expanded at a 2.1 percent annual rate.

Because household spending powers about 70 percent of national output, this still-lackluster pace of growth suggests underlying momentum in the economy was quite modest as it entered the first quarter, when significant fiscal tightening began.

Initially, the government had estimated the economy shrank at a 0.1 percent annual rate in the last three months of 2012. That had shocked economists.

Thursday's report showed the reasons for the decline were mostly as initially estimated. Inventories subtracted 1.55 percentage points from the GDP growth rate during the period, a little more of a drag than initially estimated. Defense spending plunged 22 percent, shaving 1.28 points off growth as in the previous estimate.

There were some relatively bright spots, however. Imports fell 4.5 percent during the period, which added to the overall growth rate because it was a larger drop than in the third quarter. Buying goods from foreigners bleeds money from the economy, subtracting from economic growth.

Also helping reverse the initial view of an economic contraction, exports did not fall as much during the period as the government had thought when it released its advance GDP estimate in January. Exports have been hampered by a recession in Europe, a cooling Chinese economy and storm-related port disruptions.

Excluding the volatile inventories component, GDP rose at a revised 1.7 percent rate, in line with expectations. These final sales of goods and services had been previously estimated to have increased at a 1.1 percent pace.

Business spending was revised to show more growth during the period than initially thought, adding about a percentage point to the growth rate.

Growth in home building was revised slightly higher to show a 17.5 percent annual rate. Residential construction is one of the brighter spots in the economy and is benefiting from the Federal Reserve's ultra easy monetary policy stance, which has driven mortgage rates to record lows. (Reporting by Jason Lange; Editing by Andrea Ricci)
 

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Chicago archdiocese to close 5 schools in cost-cutting move

Budget cuts announced Wednesday by the Archdiocese of Chicago signal that the area's Roman Catholics are entering a period of austerity when there will be less money for their parishes and schools.

The cuts, which were officially announced as Cardinal Francis George and other leaders of the church gathered at the Vatican to select a new pope, include closing five schools, eliminating 75 positions at the archdiocese's headquarters and placing a moratorium on loans to parishes from the archdiocese bank for three years. Other changes include creating stricter guidelines for local parishes applying for subsidies and reducing the number of the agencies in the archdiocese.

George, who spoke publicly about the cuts when asked by reporters in Rome, said they are needed to address the archdiocese's chronic financial problems. The archdiocese has run deficits of more than $30 million annually over the last four years, including being $40 million in the red for the fiscal year ending in June 2012.

All told, the measures will save tens of millions of dollars over the next few years, officials said.

“The expenses have gone up, and the income is pretty well flat,” George said after a news conference in Rome about Pope Benedict XVI's last audience Wednesday in St. Peter's Square. “We tried to ride out the recession without making any changes — and we can't do that. We're giving more grants to parishes and schools that need more money. The budget is not balanced. Not just layoffs, but a lot of other things being done, other ways to use the resources we have.”

The archdiocese sold $150 million in bonds in 2012 that helped it get through a cash-flow problem, but ultimately that wasn't enough, George said. He hopes the cuts will enable the archdiocese to balance its budget in two years.

Although the cardinal's announcement made headlines, the archdiocese's financial situation has been no secret to its priests. Several clergymen said they knew the archdiocese had planned to scale back loans to parishes.

“We have already made adjustments,” said the Rev. Dennis Ziomek of St. Barbara Parish in Chicago's Bridgeport neighborhood. “We have to be responsible stewards with the money.”

In a letter posted on the archdiocese website, the cardinal thanked parishioners for their generosity and asked them to pray for the employees now out of a paycheck.

At the archdiocese's Pastoral Center headquarters on Wednesday, people funneled in and out of the building during their lunch breaks but declined comment on the layoffs. Before the announcement, staffers received memos asking them to report to their desks early Wednesday.

Of the 75 positions, 55 were full-time jobs. Sixty people were let go, while the remaining posts had been vacant. Those cuts are expected to save $11 million to $13 million annually by fiscal 2015, George wrote in his letter.

Employees who received pink slips will get job counseling, extended health benefits and generous severance packages.

“We're keeping up counseling for helping people find jobs, looking for places where they might look for jobs,” George said.

Along with the layoffs, the archdiocese will reduce the number of capital loans and grants it gives parishes, while creating “stricter criteria” for them to qualify for the financial assistance.

A Parish Transformation initiative in the works for at least two years will also try to save money by laying out measures to provide more financial stability, though the letter did not give details.

Those cuts are expected to save an additional $13 million to $15 million annually by fiscal 2015, the letter states.

By next year, the archdiocese will reduce its aid to Catholic schools by $10 million. It plans to give scholarships to children affected by the five school closings so they can attend nearby Catholic schools. Officials said low enrollment was a key factor for closing the schools: St. Gregory the Great High, St. Paul-Our Lady of Vilna Elementary and St. Helena of the Cross Elementary in Chicago, plus St. Bernardine in Forest Park and St. Kieran in Chicago Heights.

Now, Catholic schools will start relying on scholarships for student financial aid instead of grants from the archdiocese to make tuition affordable, Superintendent Sister Mary Paul McCaughey said.

She pointed to a new partnership with the Big Shoulders Fund, a charity supporting urban Catholic schools, that will help families pay for school with scholarships.

McCaughey did not expect tuition at other Catholic schools to immediately rise because grants from the archdiocese have been reduced. About two-thirds of schools already have posted their tuition rates for the upcoming school year, she added.

“Although things are challenged, I think (Chicago) is a Catholic community that's always supported its schools,” McCaughey said. “I think the support will be there.”

Outside of St. Bernardine Elementary in west suburban Forest Park, one of the schools that will close this summer, Maria Maxham said she was devastated when she heard last month that she'd have to send her children, one in second grade and the other in fourth grade, to a different school.

Maxham, who lives in Forest Park, said she is not sure the two will attend another local Catholic school because some lack what she thought was St. Bernardine's strength.

“There is so much diversity at St. Bernardine, and that's part of what makes it so fantastic,” Maxham said. “It was a special place and a second family for us.”

The school, which has been open since 1915, has about 100 students currently enrolled in its preschool-through-eighth-grade classrooms.

Administrators, teachers and parents were notified of the closing in January, when McCaughey led a meeting at the school and explained the large amount of money that the archdiocese needed to reduce from the schools budget, Principal Veronica Skelton Cash said.

One family left the school shortly after hearing the news, she added.

Cash, who joined the school in the fall, said there was much frustration among staff members afterward. Many believed they would have at least a few years to turn things around.

“I could see a lot of things changing for the better at this school,” Cash said. “The culture of the community is changing, and we were getting more and more inquiries about the school. There was momentum going forward.”

Current employees were given guidance on severance and benefits by the archdiocese's human resources officials, Cash said. Teachers without jobs will also be placed on a priority list for future employment with the archdiocese, she said.

“I'm incredibly disheartened,” said Daniel Kwarcinski, who hopes to find a job at another private school after teaching art for seven years at St. Bernardine. “There's a need for a school like this where we are at.”

In Rome, George said the decisions to let people go and reduce aid were not easy. But he reiterated that the archdiocese's financial situation drove the decision.

“We have to balance the budget, especially if it's precarious,” he said. “The growth being very slow means we can no longer ignore the kinds of deficit situations that have been imposed on us. We have to take action.”

Tribune reporter Manya A. Brachear reported from Rome, with Tribune reporters Bridget Doyle and Jennifer Delgado in Chicago.

mbrachear@tribune.com

bdoyle@tribune.com

jmdelgado@tribune.com

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Apple CEO says he feels shareholders' pain, urges long view

CUPERTINO, California (Reuters) - Apple Inc CEO Tim Cook on Wednesday acknowledged widespread disappointment in the company's sagging share price but shared few details about its secretive product pipeline and touched only briefly on a raging debate about how best to reward shareholders.

The world's most valuable technology company headed into its annual shareholders' meeting at its headquarters on shakier ground than it has been accustomed to in years, since the iPhone and iPad helped vault the company to premier investment status.

A declining share price has lent weight to Wall Street's demand that it share more of its $137 billion in cash and securities pile - equivalent to Hungary's Gross Domestic Product, and growing - a debate now spearheaded by outspoken hedge fund manager David Einhorn.

Einhorn was not spotted at the meeting at the company's headquarters at 1 Infinite Loop in Cupertino. Cook repeated that the company's board remained in "very very active" discussions about options for cash sharing, and said he shared investors' dissatisfaction over the stock price.

"I don't like it either. The board doesn't like it. The management team doesn't like it," Cook told investors.

"What we are focused on is the long term. This has always been a secret of Apple."

By focusing on the long term, revenue and profit will follow, he said.

Apple had the "mother of all years" last year with growth, in terms of dollars, outpacing that of Microsoft Corp, Google Inc, Nokia and several other major technology companies combined, Cook said.

Cook -- who was re-elected to the board with 99.1 percent of shareholder votes -- added that the company was working on new product categories, but, as usual, would not elaborate.

Speculation is rife on Wall Street and in Silicon Valley that the iPhone maker is working on a project to revolutionize the television and TV content, or a smart "iWatch."

Apple's stock was down 0.25 percent to $447.86 in afternoon trade. It is now down more than 35 percent from its $702.10 September peak.

SHARE AND SHARE ALIKE

Cook presided over Wednesday's staid affair in his typically even-keeled manner. Despite a slipping share price, dissatisfaction on the Street over its cash allocation and uncertainty over its product pipeline, shareholders re-elected the entire board, and Cook won more than 99 percent of the vote in preliminary results.

Cook got the most votes, followed by Walt Disney Co's Bob Iger, who won re-election with 99 percent of shareholder votes. Former Avon Products Inc CEO Andrea Jung, who stepped down after botching several attempts at restructuring the cosmetics company, received the fewest votes of the group, with 84.6 percent of shareholders voting yea.

Carol Shoaff, an Apple shareholder for about the past five years, said after the meeting that she was confident in Apple's leadership and the company was on the right path.

"I think he's good," she said, referring to Cook. "I don't think Steve Jobs would have left him in charge if he didn't believe in him."

Members of the Service Employees International Union protested outside the headquarters to get Apple to reconsider hiring of securities contractor SIS.

Apple's annual shareholder meetings have seemed more like celebrations in recent years. Since the company came out with its first iPhone in 2007, the company multiplied in market value until it peaked in September.

Then Samsung Electronics and Amazon.com Inc began seriously eroding its market share in 2012, powered by arch-rival Google Inc's Android software. On March 14, Samsung will launch the Galaxy SIV smartphone, the latest iteration of a flagship smartphone that helped it dethrone Apple from the top of the industry.

Institutional investors want Apple to share a greater chunk of its cash and securities pile, a demand growing increasingly strident with the company's stock wallowing at levels untested since the start of 2012.

Einhorn is advocating "iPrefs," preferred stock that will carry a perpetual 4 percent dividend to boost returns while not hampering cash flow.

On Friday, Einhorn won an important legal victory that strengthened his hand. His Greenlight Capital secured an injunction that invalidated shareholder voting on a proposal to scrap Apple's power to issue preferred stock at its discretion.

Apple says this would enhance governance. But the hedge fund manager argued it could complicate efforts to issue preferred securities in the future.

Cook said again on Wednesday that Einhorn's lawsuit - regardless of its efficacy - was a "silly sideshow." The underlying principle of cash distribution was something he and the board took seriously, he added.

The proposal was not put forth on Wednesday but Apple shareholders and representatives from the California Public Employees Retirement System and the Nathan Cummings Foundation spoke in favor of it at the meeting.

CalPers, owner of 2.7 million Apple shares, had supported the so-called Proposal 2. Senior Portfolio Manager Anne Simpson said it was unfortunate the measure could not be put forward.

"We know there is hot debate going on with cash," Simpson told the assembled shareholders. "We are willing and happy to wait."

NEW HQ TO BE DELAYED

Cook, who took over from late company co-founder Steve Jobs in 2011, answered a variety of questions from shareholders, including some on Apple's new headquarters, labor conditions in its factories and product plans.

One shareholder also asked why there was no bathroom in an Apple retail store in Santa Monica, Calif. Cook, acknowledging that it was an important point, said he will look into it.

On the new headquarters, Cook said the company plans to break ground later this year and occupy the facilities in 2016, a delay from the original 2015 target date.

The meeting largely followed the script with no distractions. Shareholders voted down two shareholder proposals, both of which were opposed by Apple's board. One wanted Apple leadership to hold more stock, the other was a proposal to create a board committee on human rights.

(Writing by Edwin Chan; Editing by Lisa Von Ahn, Tim Dobbyn and Dan Grebler)

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Americans try to reach WBC title game at last

SCOTTSDALE, Ariz. (AP) — Ryan Vogelsong has a little running joke that he is going to plunk San Francisco teammate Pablo Sandoval in the World Baseball Classic to keep the Panda from a three-homer game like the one he produced in Game 1 of the World Series last fall.

Sandoval plans to play nice once he pulls on the Venezuela uniform.

"He's my teammate, I don't want to fight," Sandoval said with a smile.

Both know the team to beat: Two-time WBC winner Japan.

Joe Torre is returning to the top step of the dugout to manage the Americans, who have yet to even reach the championship game of this hugely popular international event.

Team USA has plenty of motivation to make up for two poor showings in this tournament. The Americans didn't get out of the second round in 2009, then lost in the semifinals to Japan three years later. Now, they are making plans to reach the semifinals and final at San Francisco's AT&T Park.

"We'll probably be disappointed if we don't make it to San Francisco," said Vogelsong, slated to be the No. 2 starter in the U.S. rotation. "First and foremost, we're focused on getting there."

The Japanese topped Cuba in the inaugural Classic in 2006, then South Korea three years later. Japan is known for its rigorous spring trainings, which typically begin a couple of weeks before the major league clubs and feature all-day workouts with just a short break to eat.

"It's such a dedicated group of players. I go back to going over to Japan as a member of the Mets back in '74 and just noticing and at that time I didn't think necessarily that the Japanese could play at our level, maybe stature-wise," Torre recalled. "Even though their game was clean and disciplined, it just didn't look like they were as good as we were. That's certainly has changed."

Rockies slugger Carlos Gonzalez will play alongside Sandoval for Venezuela. The World Series champion Giants have had to plan carefully this spring to get through the Cactus League with much of their roster headed to the WBC — Marco Scutaro on Venezuela, Angel Pagan and Andres Torres on Puerto Rico, Vogelsong and reliever Jeremy Affeldt on the U.S. team, closer Sergio Romo pitching for Mexico.

"It's my first time representing and I'm really looking forward to doing it," Pagan said. "The first two Classics I couldn't do it because I was either trying to make a team or I was trying to be the everyday player. It fills my heart to go out there and play in front of my countrymen and in front of my family. I did it when I played in New York and Puerto Rico but it's not the same when you're wearing the P.R. jersey. It's going to be a little different, and I'm ready."

And CarGo sure is confident in Venezuela's chances.

"I don't think we need practice — Venezuela doesn't need practice," he said. "Japan, they train together for a long time and get prepared for that. We don't really get prepared for that, we all focus on our teams. 'OK, you've got to go play for your country.' We're all going to be blind, put the uniform on, let's play."

Many players are torn between playing for their country or playing for the club that signs their paycheck — especially those who might be on the bubble of making the roster or earning a starting job.

Gonzalez said the Venezuelans feel tremendous pressure to take part in the Classic, yet he understands why Seattle ace Felix Hernandez has passed after signing a $175 million, seven-year contract earlier this month that made him the highest-paid pitcher in baseball.

"You have to represent your team," Gonzalez said. "You see all the news about King Felix not playing for Venezuela and the whole country changes, they get upset that you're not going to play for your country. They think it's all about the money but, you know what, we've been working since we were 16 years old and we came from Venezuela to represent. Especially King Felix, he's been playing since he was 16 with Seattle. He's a franchise player who was about to sign the biggest contract. It's crazy how people feel bad about it. He has to think about his future, he has to think about his family. I think made the right choice."

The inaugural 2006 Classic featured a pool-play format, while 2009 was double-elimination — and this one will be a combination of both. The first round will be pool play, with the top two teams advancing. The second round is double-elimination, and the top two teams will reach the semifinals.

The Americans will play their round-robin games at the Arizona Diamondbacks' Chase Field in Phoenix.

"I'm not sure that our players weren't excited," Torre said of the previous two WBC tournaments. "The guys who have played this before were excited to get back to it. I think it's still something to get a little used to. Let's admit it, you play the USA team, MLB, even though there are a number of MLB players obviously playing for other countries, it's like putting on your Sunday best, you know, 'We're excited because we have a chance to beat them at their own game' so to speak."

Semifinals will be played March 17-18, with the championship March 19 in the Giants' waterfront ballpark.

That's where Sandoval cleared the fences three times in a Game 1 World Series win against the Tigers.

The guy known as Kung Fu Panda hopes to find his groove again for his country.

"I'm trying to get the Triple Crown," Sandoval said of the World Series, Venezuelan championship and World Baseball Classic.

Even if it does mean he gets hit by Vogelsong along the way.

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AP Sports Writer Bob Baum contributed to this story.

WATCH FOR:

—Animated crowds so different than the regular MLB supporters, complete with instruments, patriotic chants, face paint and flags. More than 1.5 million fans have attended games in first two WBC tournaments.

—This year's field went from 16 in previous two events to 28 countries that had a chance to qualify. The top 12 nations from the last WBC were already in, then the other four determined from 28 teams through qualifying. The WBC winner will be named world champion for the first time.

—It's now a six-game, modified double-elimination format. The inaugural 2006 Classic featured a pool-play format, while 2009 was double-elimination — and this one will be a combination of both. The first round will be pool play, with the top two teams advancing. The second round is double-elimination, and the top two teams will reach the semifinals.

—Americans on a mission: Team USA has yet to reach the championship game of the first two Classics.

—Players will be subject to drug testing by the World Anti-Doping Agency.

—San Juan, Puerto Rico, will host games for the third time at Hiram Bithorn Stadium, to be played March 7-10.

—Sparkling new Salt River Fields at Talking Stick, the shared spring venue of the Arizona Diamondbacks and Colorado Rockies, will be on display for the world to see. The ballpark hosts Pool D games between the U.S., Italy, Mexico and qualifier Canada.

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Colleges, theaters to create new Civil War plays

WASHINGTON (AP) — Four major universities are joining theater companies in Boston, Baltimore, Washington and Atlanta in a project to commission new plays, music and dance compositions about the Civil War and its lasting legacy 150 years later.

The National Civil War Project is being announced Thursday in Washington and will involve programming over the next two years to mark the 150th anniversary of the war between the North and the South. Beyond commissioning new works, organizers plan for university faculty to integrate the arts into their academic programs on campus.

Under the program, Harvard University will partner with the American Repertory Theater in Cambridge, Mass.; the University of Maryland's Clarice Smith Performing Arts Center will join CENTERSTAGE in Baltimore; George Washington University is working with Arena Stage in Washington, and Atlanta's Alliance Theatre will join Emory University.

Each collaboration will evoke unique perspectives on the Civil War in each region.

At Harvard, a new piece called "The Boston Abolitionists" about the abolitionist movement and the trial of a fugitive slave will be performed in May. Separately, Matthew Aucoin, an assistant conductor at the Metropolitan Opera, is using Walt Whitman's poetry about being a medic to develop a new opera.

In Atlanta, Alliance Theatre and Emory will develop a new theatrical production of U.S. Poet Laureate Natasha Trethewey's Pulitzer Prize-winning book "Native Guard," with a workshop planned for 2014. It recounts the story of a black Civil War regiment assigned to guard white Confederate soldiers on Ship Island off Mississippi's Gulf Coast.

Arena Stage Artistic Director Molly Smith, who helped guide the project, said this is a chance to reevaluate the Civil War and consider the issues that still resonate in American life.

"This is an anniversary of what is arguably one of the most important times in American history," she said. "And the same questions behind state rights and civil rights continue to infuse who we are as a country."

In September, the University of Maryland will host a national conference on civil rights and health disparities among minority populations to mark the 50th anniversary of the March on Washington.

Choreographer Liz Lerman, a 2002 MacArthur Foundation "genius" fellow, helped in developing the partnerships between theaters and universities during a semester spent at Harvard. She said artists can help professors animate their scholarship as more traditional lectures move online, and the Civil War is a good subject to connect art and academics.

"It's something about the fact that we're still trying to understand it," Lerman said. "There are enough civil wars still going on in the world, I myself am trying to understand what it must be like."

Lerman is developing a new dance theater piece in Washington called "Healing Wars" to explore the role of women and innovations in healing for amputees from the Civil War through the wars in Iraq and Afghanistan. Characters will migrate between past and present. The piece will feature actor Bill Pullman and eight dancers.

Harvard President Drew Gilpin Faust, a Civil War historian, has been leading the university to integrate the arts with academic pursuits, through theater, exhibits or other art forms.

"Engaging students through art and art-making is one of the ways in which universities prepare young women and men for life in a world that is far better connected and far more complex than at any other point in human history," she wrote in an email about the Civil War project.

At this anniversary of the war, she said it's important to remember how the values of freedom and equality were defined in President Abraham Lincoln's Gettysburg address as the war's purpose.

George Washington University President Steven Knapp said the Civil War transformed American history, culture and industry — even the concept of American democracy by redefining equality. Tackling such a subject between academia and theater could provide a new model for learning, he said.

"It's an experiment," Knapp said, "to see how far we can go in bringing together the strengths of the university and the strengths of the theater company."

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Follow Brett Zongker at https://twitter.com/DCArtBeat

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