surrender files trump s company mueller ... › images › 2018 › 03 › 16 › nytfrontpage ›...

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VOL. CLXVII . . . No. 57,903 + © 2018 The New York Times Company NEW YORK, FRIDAY, MARCH 16, 2018 U(D54G1D)y+=!=!,!#!: BRYAN DENTON FOR THE NEW YORK TIMES Many Mongolians in Ulan Bator depend on coal-burning stoves for survival, but the resulting air pollution puts lives at risk. Page A6. World’s Coldest Capital Chokes on Foulest Air Chirlane McCray suddenly seems to be everywhere. She is in Puerto Rico, checking on mental health efforts in the wake of Hurri- cane Maria. She is sitting beside her husband, Mayor Bill de Blasio, at a City Hall news conference to announce the appointment of a new schools chancellor. Since the start of Mr. de Blasio’s second term in January, Ms. Mc- Cray, who once shied from the spotlight, has undertaken a poli- tical transformation, raising her visibility and profile — so much so that she is now contemplating running for office. But behind the scenes, a similar makeover has also quietly been taking place. Ms. McCray has stepped up her out-of-town travel, meeting with political leaders, speaking about her signature mental health initiative, network- ing and building the family brand outside New York City. Mr. de Blasio has been criticized for craving a role as a national pro- gressive leader, a status that has eluded him as an individual. But as Ms. McCray’s activities come into focus, it appears that the cou- ple are seeking instead to estab- lish a brand as one of the nation’s first families of progressive poli- tics — modeling themselves, con- sciously or not, after Bill and Hil- lary Clinton, who took turns, with one holding office while the other exerted influence from the side- lines. “The word has spread about what we’re doing,” Ms. McCray De Blasios Rising: First Lady’s Visibility Hints at a Political Brand By J. DAVID GOODMAN and WILLIAM NEUMAN Continued on Page A22 JOE RAEDLE/GETTY IMAGES A footbridge on a university campus gave way, raining tons of debris on a busy street. Page A13. At Least Four Die in Bridge Collapse SAN FRANCISCO — It’s an au- dacious proposal to get Californi- ans out of their cars: a bill in the State Legislature that would allow eight-story buildings near major transit stops, even if local commu- nities object. The idea is to foster taller, more compact residential neighbor- hoods that wean people from long, gas-guzzling commutes, reducing greenhouse-gas emissions. So it was surprising to see the Sierra Club among the bill’s oppo- nents, since its policy proposals call for communities to be “revi- talized or retrofitted” to achieve precisely those environmental goals. The California chapter de- scribed the bill as “heavy- handed,” saying it could cause a backlash against public transit and lead to the displacement of low-income residents from exist- ing housing. State Senator Scott Wiener, the bill’s sponsor, responded by accus- ing the group of “advocating for low-density sprawl.” In a state where debates often involve shades of blue, it’s not un- common for the like-minded to find themselves at odds. But the tensions over Mr. Wiener’s pro- posal point to a wider divide in the fight against climate change, spe- cifically how far the law should go to reshape urban lifestyles. Although many cities and states are embracing cleaner sources of electricity and encouraging peo- ple to buy electric vehicles, they are having a harder time getting In California, a Green Split Over a Density Push By CONOR DOUGHERTY and BRAD PLUMER Continued on Page A20 Sierra Club Fights Plan for More Housing Near Transit The mood in the courtroom was hopeful when Toys “R” Us filed for bankruptcy last September. The company’s lawyer, in the first hearing, played a clip of the retail- er’s famous jingle “I’m a Toys ‘R’ Us Kid” and vowed to restore the company’s place in the hearts of millions of American families. The reality is that Toys “R” Us, which announced on Thursday that it would shutter or sell all of its stores in the United States, never had much chance at a turn- around. For over a decade, Toys “R” Us had been drowning in $5 billion of debt, which its private equity backers had saddled it with. With debt payments siphoning off cash every year, Toys “R” Us could not properly invest in its worn-out suburban stores or outdated web- site. Sales plummeted, as Amazon captured more children’s desires — and their parents’ wallets — for Star Wars Legos and Paw Patrol recycling trucks. Toys “R” Us is the latest failure of financial engineering, albeit one that could portend a poten- tially more ominous outlook for private equity in the digital era. Most buyouts tend to work the same way. A private equity firm takes over a troubled company with the goal of sprucing up the strategy, cutting costs and over- hauling the business over three or five years. But they often load up a company with debt to pay for the deal, which can prove problematic if the profits do not perk up. In the age of Amazon, that for- mula can be dangerous. Con- sumer demands are changing so This Toy Story Foreshadowed Its Sad Ending By MICHAEL CORKERY Continued on Page A20 WASHINGTON — The special counsel, Robert S. Mueller III, has subpoenaed the Trump Organiza- tion in recent weeks to turn over documents, including some relat- ed to Russia, according to two peo- ple briefed on the matter. The or- der is the first known instance of the special counsel demanding records directly related to Presi- dent Trump’s businesses, bring- ing the investigation closer to the president. The breadth of the subpoena was not clear, nor was it clear why Mr. Mueller issued it instead of simply asking for the documents from the company, an umbrella or- ganization that encompasses Mr. Trump’s business ventures. Mr. Mueller ordered the Trump Orga- nization to hand over records re- lated to Russia and other topics he is investigating, the people said. The subpoena is the latest indi- cation that the investigation, which Mr. Trump’s lawyers once regularly assured him would be completed by now, will continue for at least several more months. Word of the subpoena came as Mr. Mueller appears to be broadening his inquiry to examine the role for- eign money may have played in funding Mr. Trump’s political ac- tivities. In recent weeks, Mr. Mueller’s investigators have questioned witnesses, including an adviser to the United Arab Emirates, about the flow of Emi- rati money into the United States. Mr. Mueller has already in- dicted 13 Russians and three com- panies accused of meddling in the 2016 presidential campaign, and on Thursday, the Trump adminis- tration included them in sanctions it leveled at Moscow as punish- ment for interference in the cam- paign and “malicious cyber- attacks.” The Trump Organization has typically complied with requests from congressional investigators for documents for their own in- quiries into Russian election in- terference, and there was no indi- cation the company planned to fight Mr. Mueller’s order. “Since July 2017, we have ad- vised the public that the Trump Organization is fully cooperative with all investigations, including MUELLER DEMANDS TRUMP’S COMPANY SURRENDER FILES Court Order Seeks Documents on Russia — Investigation Nears President By MICHAEL S. SCHMIDT and MAGGIE HABERMAN Robert S. Mueller III JOSHUA ROBERTS/REUTERS Continued on Page A17 The Trump administration ac- cused Russia on Thursday of engi- neering a series of cyberattacks that targeted American and Euro- pean nuclear power plants and water and electric systems, and could have sabotaged or shut power plants off at will. United States officials and pri- vate security firms saw the at- tacks as a signal by Moscow that it could disrupt the West’s critical facilities in the event of a conflict. They said the strikes acceler- ated in late 2015, at the same time the Russian interference in the American election was underway. The attackers had compromised some operators in North America and Europe by spring 2017, after President Trump was inaugurat- ed. In the following months, ac- cording to a Department of Home- land Security report issued on Thursday, Russian hackers made their way to machines with access to critical control systems at power plants that were not identi- fied. The hackers never went so far as to sabotage or shut down the computer systems that guide the operations of the plants. Still, new computer screenshots released by the Department of Homeland Security on Thursday made clear that Russian state hackers had the foothold they would have needed to manipulate or shut down power plants. “We now have evidence they’re sitting on the machines, con- nected to industrial control infra- U.S. Says Hacks Left Russia Able To Shut Utilities By NICOLE PERLROTH and DAVID E. SANGER Continued on Page A11 WASHINGTON — The Trump administration imposed sanctions on a series of Russian organiza- tions and individuals on Thursday in retaliation for interference in the 2016 presidential election and other “malicious cyberattacks,” its most significant action against Moscow since President Trump took office. The sanctions came as the United States joined with Britain, France and Germany in denounc- ing Russia for its apparent role in a nerve-gas attack on a former Russian spy and his daughter on British soil, calling it a “clear vio- lation” of international law. But the joint statement said nothing about any collective action in re- sponse. In his first comment on the poi- son attack, Mr. Trump agreed that, despite its denials, Russia was most likely behind it. “It looks like it,” he told reporters in the Oval Of- fice, adding that he had spoken with Prime Minister Theresa May of Britain. “We are in deep discussions,” Mr. Trump continued. “A very sad situation. It certainly looks like the Russians were behind it. Something that should never, ever happen. And we’re taking it very seriously, as I think are many oth- ers.” In keeping with his reluctance to blame Moscow for meddling in the 2016 presidential campaign, Mr. Trump did not mention the sanctions or election interference. The president has repeatedly dis- missed the suggestion that Russia New Sanctions Put on Moscow Over 2016 Vote By PETER BAKER Continued on Page A11 Experts talk about how the power has shifted from American dominance in the past five years. PAGE A8 Effects of China’s Rise in Asia Five more accusers besides the woman at the center of sexual assault charges against the actor can testify at his retrial, a judge ruled. PAGE A19 Added Pressure on Bill Cosby Republicans in Congress are reluctant to distance themselves from the presi- dent despite obvious political danger ahead, Carl Hulse writes. PAGE A17 Standing by Their Man James Levine accused the Metropolitan Opera of breach of contract and defa- mation after it fired him following a sexual abuse investigation. PAGE A22 NEW YORK A21-23, 28 Conductor Sues Opera Petrochemical plants were repeatedly hacked last year. The worst attack was meant to cause an explosion. PAGE B1 BUSINESS DAY B1-6 Deadly Goal in Saudi Plants This master of the Hudson River land- scape let art argue against industrial assaults. Above, his tools. PAGE C11 WEEKEND ARTS C1-20 Thomas Cole, Moralist Mike Hale has made a list of non-Amer- ican TV shows, available via streaming, that are worth sampling. PAGE C1 Great Television From Afar Loyola-Chicago beat Miami and Buffalo stunned Arizona in the first day of the N.C.A.A. men’s tournament. PAGE B9 SPORTSFRIDAY B7-12 Miami and Arizona Exit Early The leaders of a North American bid for the 2026 World Cup revealed a proposal to host matches in 23 cities. PAGE B7 Courting Soccer’s Big Event Paul Krugman PAGE A27 EDITORIAL, OP-ED A26-27 In a mass exodus, as many as 20,000 civilians fled an embattled region near Damascus, Syria’s capital. PAGE A4 INTERNATIONAL A4-11 Syrians Flee Rebel Enclave The decision on a bid to block AT&T’s merger with Time Warner may shape the video business. PAGE B1 Merger Case Heads to Court Surveillance video shows that the only armed officer at a Florida high school where a gunman went on a rampage took cover until it was over. PAGE A12 NATIONAL A12-20 Deputy Waited Outside School Gen. H. R. McMaster, the na- tional security adviser, is said to be the next to be pushed out. White House Memo, Page A19. Hints of Purges to Come Late Edition Today, periodic clouds and sunshine, colder, high 39. Tonight, partly cloudy, cold, low 28. Tomorrow, sun- shine and patchy clouds, not as cold, high 46. Weather map, Page A28. $3.00

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Page 1: SURRENDER FILES TRUMP S COMPANY MUELLER ... › images › 2018 › 03 › 16 › nytfrontpage › ...2018/03/16  · esident.pr The breadth of the subpoena was not clear, nor was

VOL. CLXVII . . . No. 57,903 + © 2018 The New York Times Company NEW YORK, FRIDAY, MARCH 16, 2018

C M Y K Nxxx,2018-03-16,A,001,Bs-4C,E2_+

U(D54G1D)y+=!=!,!#!:

BRYAN DENTON FOR THE NEW YORK TIMES

Many Mongolians in Ulan Bator depend on coal-burning stoves for survival, but the resulting air pollution puts lives at risk. Page A6.World’s Coldest Capital Chokes on Foulest Air

Chirlane McCray suddenlyseems to be everywhere. She is inPuerto Rico, checking on mentalhealth efforts in the wake of Hurri-cane Maria. She is sitting besideher husband, Mayor Bill de Blasio,at a City Hall news conference toannounce the appointment of a

new schools chancellor.Since the start of Mr. de Blasio’s

second term in January, Ms. Mc-Cray, who once shied from thespotlight, has undertaken a poli-tical transformation, raising hervisibility and profile — so much sothat she is now contemplatingrunning for office.

But behind the scenes, a similarmakeover has also quietly beentaking place. Ms. McCray has

stepped up her out-of-town travel,meeting with political leaders,speaking about her signaturemental health initiative, network-ing and building the family brandoutside New York City.

Mr. de Blasio has been criticizedfor craving a role as a national pro-gressive leader, a status that haseluded him as an individual. Butas Ms. McCray’s activities comeinto focus, it appears that the cou-

ple are seeking instead to estab-lish a brand as one of the nation’sfirst families of progressive poli-tics — modeling themselves, con-sciously or not, after Bill and Hil-lary Clinton, who took turns, withone holding office while the otherexerted influence from the side-lines.

“The word has spread aboutwhat we’re doing,” Ms. McCray

De Blasios Rising: First Lady’s Visibility Hints at a Political BrandBy J. DAVID GOODMANand WILLIAM NEUMAN

Continued on Page A22

JOE RAEDLE/GETTY IMAGES

A footbridge on a university campus gave way, raining tons of debris on a busy street. Page A13.At Least Four Die in Bridge Collapse

SAN FRANCISCO — It’s an au-dacious proposal to get Californi-ans out of their cars: a bill in theState Legislature that would alloweight-story buildings near majortransit stops, even if local commu-nities object.

The idea is to foster taller, morecompact residential neighbor-hoods that wean people from long,gas-guzzling commutes, reducinggreenhouse-gas emissions.

So it was surprising to see theSierra Club among the bill’s oppo-nents, since its policy proposals

call for communities to be “revi-talized or retrofitted” to achieveprecisely those environmentalgoals. The California chapter de-scribed the bill as “heavy-handed,” saying it could cause abacklash against public transitand lead to the displacement oflow-income residents from exist-ing housing.

State Senator Scott Wiener, thebill’s sponsor, responded by accus-ing the group of “advocating forlow-density sprawl.”

In a state where debates ofteninvolve shades of blue, it’s not un-common for the like-minded tofind themselves at odds. But thetensions over Mr. Wiener’s pro-posal point to a wider divide in thefight against climate change, spe-cifically how far the law should goto reshape urban lifestyles.

Although many cities and statesare embracing cleaner sources ofelectricity and encouraging peo-ple to buy electric vehicles, theyare having a harder time getting

In California, a Green Split Over a Density PushBy CONOR DOUGHERTY

and BRAD PLUMER

Continued on Page A20

Sierra Club Fights Planfor More Housing

Near Transit

The mood in the courtroom washopeful when Toys “R” Us filed forbankruptcy last September. Thecompany’s lawyer, in the firsthearing, played a clip of the retail-er’s famous jingle “I’m a Toys ‘R’Us Kid” and vowed to restore thecompany’s place in the hearts ofmillions of American families.

The reality is that Toys “R” Us,which announced on Thursdaythat it would shutter or sell all ofits stores in the United States,never had much chance at a turn-around.

For over a decade, Toys “R” Ushad been drowning in $5 billion ofdebt, which its private equitybackers had saddled it with. Withdebt payments siphoning off cashevery year, Toys “R” Us could notproperly invest in its worn-outsuburban stores or outdated web-site. Sales plummeted, as Amazoncaptured more children’s desires— and their parents’ wallets — forStar Wars Legos and Paw Patrolrecycling trucks.

Toys “R” Us is the latest failureof financial engineering, albeitone that could portend a poten-tially more ominous outlook forprivate equity in the digital era.

Most buyouts tend to work thesame way. A private equity firmtakes over a troubled companywith the goal of sprucing up thestrategy, cutting costs and over-hauling the business over three orfive years. But they often load up acompany with debt to pay for thedeal, which can prove problematicif the profits do not perk up.

In the age of Amazon, that for-mula can be dangerous. Con-sumer demands are changing so

This Toy StoryForeshadowedIts Sad Ending

By MICHAEL CORKERY

Continued on Page A20

WASHINGTON — The specialcounsel, Robert S. Mueller III, hassubpoenaed the Trump Organiza-tion in recent weeks to turn overdocuments, including some relat-ed to Russia, according to two peo-ple briefed on the matter. The or-der is the first known instance ofthe special counsel demandingrecords directly related to Presi-dent Trump’s businesses, bring-ing the investigation closer to thepresident.

The breadth of the subpoenawas not clear, nor was it clear whyMr. Mueller issued it instead ofsimply asking for the documentsfrom the company, an umbrella or-ganization that encompasses Mr.Trump’s business ventures. Mr.Mueller ordered the Trump Orga-nization to hand over records re-lated to Russia and other topics heis investigating, the people said.

The subpoena is the latest indi-cation that the investigation,which Mr. Trump’s lawyers onceregularly assured him would becompleted by now, will continuefor at least several more months.Word of the subpoena came as Mr.Mueller appears to be broadeninghis inquiry to examine the role for-eign money may have played infunding Mr. Trump’s political ac-tivities. In recent weeks, Mr.Mueller’s investigators have

questioned witnesses, includingan adviser to the United ArabEmirates, about the flow of Emi-rati money into the United States.

Mr. Mueller has already in-dicted 13 Russians and three com-panies accused of meddling in the2016 presidential campaign, andon Thursday, the Trump adminis-tration included them in sanctionsit leveled at Moscow as punish-ment for interference in the cam-paign and “malicious cyber-attacks.”

The Trump Organization hastypically complied with requestsfrom congressional investigatorsfor documents for their own in-quiries into Russian election in-terference, and there was no indi-cation the company planned tofight Mr. Mueller’s order.

“Since July 2017, we have ad-vised the public that the TrumpOrganization is fully cooperativewith all investigations, including

MUELLER DEMANDSTRUMP’S COMPANY

SURRENDER FILESCourt Order Seeks Documents on Russia

— Investigation Nears President

By MICHAEL S. SCHMIDT and MAGGIE HABERMAN

Robert S. Mueller IIIJOSHUA ROBERTS/REUTERS

Continued on Page A17

The Trump administration ac-cused Russia on Thursday of engi-neering a series of cyberattacksthat targeted American and Euro-pean nuclear power plants andwater and electric systems, andcould have sabotaged or shutpower plants off at will.

United States officials and pri-vate security firms saw the at-tacks as a signal by Moscow that itcould disrupt the West’s criticalfacilities in the event of a conflict.

They said the strikes acceler-ated in late 2015, at the same timethe Russian interference in theAmerican election was underway.The attackers had compromisedsome operators in North Americaand Europe by spring 2017, afterPresident Trump was inaugurat-ed.

In the following months, ac-cording to a Department of Home-land Security report issued onThursday, Russian hackers madetheir way to machines with accessto critical control systems atpower plants that were not identi-fied. The hackers never went sofar as to sabotage or shut downthe computer systems that guidethe operations of the plants.

Still, new computer screenshotsreleased by the Department ofHomeland Security on Thursdaymade clear that Russian statehackers had the foothold theywould have needed to manipulateor shut down power plants.

“We now have evidence they’resitting on the machines, con-nected to industrial control infra-

U.S. Says HacksLeft Russia AbleTo Shut Utilities

By NICOLE PERLROTHand DAVID E. SANGER

Continued on Page A11

WASHINGTON — The Trumpadministration imposed sanctionson a series of Russian organiza-tions and individuals on Thursdayin retaliation for interference inthe 2016 presidential election andother “malicious cyberattacks,”its most significant action againstMoscow since President Trumptook office.

The sanctions came as theUnited States joined with Britain,France and Germany in denounc-ing Russia for its apparent role ina nerve-gas attack on a formerRussian spy and his daughter onBritish soil, calling it a “clear vio-lation” of international law. Butthe joint statement said nothingabout any collective action in re-sponse.

In his first comment on the poi-son attack, Mr. Trump agreed that,despite its denials, Russia wasmost likely behind it. “It looks likeit,” he told reporters in the Oval Of-fice, adding that he had spokenwith Prime Minister Theresa Mayof Britain.

“We are in deep discussions,”Mr. Trump continued. “A very sadsituation. It certainly looks likethe Russians were behind it.Something that should never, everhappen. And we’re taking it veryseriously, as I think are many oth-ers.”

In keeping with his reluctanceto blame Moscow for meddling inthe 2016 presidential campaign,Mr. Trump did not mention thesanctions or election interference.The president has repeatedly dis-missed the suggestion that Russia

New Sanctions Put on Moscow Over 2016 Vote

By PETER BAKER

Continued on Page A11

Experts talk about how the power hasshifted from American dominance inthe past five years. PAGE A8

Effects of China’s Rise in Asia Five more accusers besides the womanat the center of sexual assault chargesagainst the actor can testify at hisretrial, a judge ruled. PAGE A19

Added Pressure on Bill Cosby

Republicans in Congress are reluctantto distance themselves from the presi-dent despite obvious political dangerahead, Carl Hulse writes. PAGE A17

Standing by Their Man

James Levine accused the MetropolitanOpera of breach of contract and defa-mation after it fired him following asexual abuse investigation. PAGE A22

NEW YORK A21-23, 28

Conductor Sues Opera

Petrochemical plants were repeatedlyhacked last year. The worst attack wasmeant to cause an explosion. PAGE B1

BUSINESS DAY B1-6

Deadly Goal in Saudi PlantsThis master of the Hudson River land-scape let art argue against industrialassaults. Above, his tools. PAGE C11

WEEKEND ARTS C1-20

Thomas Cole, Moralist

Mike Hale has made a list of non-Amer-ican TV shows, available via streaming,that are worth sampling. PAGE C1

Great Television From Afar

Loyola-Chicago beat Miami and Buffalostunned Arizona in the first day of theN.C.A.A. men’s tournament. PAGE B9

SPORTSFRIDAY B7-12

Miami and Arizona Exit Early

The leaders of a North American bid forthe 2026 World Cup revealed a proposalto host matches in 23 cities. PAGE B7

Courting Soccer’s Big Event

Paul Krugman PAGE A27

EDITORIAL, OP-ED A26-27In a mass exodus, as many as 20,000civilians fled an embattled region nearDamascus, Syria’s capital. PAGE A4

INTERNATIONAL A4-11

Syrians Flee Rebel Enclave

The decision on a bid to block AT&T’smerger with Time Warner may shapethe video business. PAGE B1

Merger Case Heads to Court

Surveillance video shows that the onlyarmed officer at a Florida high schoolwhere a gunman went on a rampagetook cover until it was over. PAGE A12

NATIONAL A12-20

Deputy Waited Outside School

Gen. H. R. McMaster, the na-tional security adviser, is said tobe the next to be pushed out.White House Memo, Page A19.

Hints of Purges to Come

Late EditionToday, periodic clouds and sunshine,colder, high 39. Tonight, partlycloudy, cold, low 28. Tomorrow, sun-shine and patchy clouds, not as cold,high 46. Weather map, Page A28.

$3.00