OfficeMax, Office Depot shares soar on merger talk









Shares of OfficeMax Inc. skyrocketed 21 percent Tuesday on speculation that the Naperville-based office supply retailer is in talks to merge with rival Office Depot Inc.


In the first day of trading after news of a potential deal was reported, OfficeMax shares closed up $2.25, at $13, while Boca Raton, Fla.-based Office Depot stock gained more than 9 percent, closing at $5.02. Archrival and market leader Staples' shares picked up more than 13 percent, closing at $14.65.


Neither OfficeMax nor Office Depot representatives are talking, but observers predict a deal as early as this week.





A marriage between the two is seen a natural progression in a crowded industry facing increased competition from forces such as Internet giant Amazon.com and the likes of big discounters such as Wal-Mart and Costco.


Not long ago, bets were that Staples might link up with OfficeMax. More recently, there was speculation that Office Depot and OfficeMax would team up to compete against Staples.


A merger would initially bump the combined companies ahead of Staples in store count. Together, OfficeMax and Office Depot operate about 2,653 stores, although analysts predict that at least 600 would be shuttered. Staples, which is based in Framingham, Mass., operates about 2,300.


Analysts say that Office Depot and OfficeMax have long lists of good customers and when put together could improve operating efficiencies and, therefore, profit.


"The basic challenge that both companies face is that they play in such a competitive space that they are forever locked in a battle to gain market share," said Tim Calkins, clinical professor of marketing at Northwestern University's Kellogg School of Management. "The truth is, when you have that much competition, it's very hard to maintain good margins; there's just relentless pressure."


Both chains have been working to reduce costs, closing underperforming stores and moving into smaller locations, but even if they team up, some analysts still give Staples the edge.


"We think there are a lot of things that Staples is doing better, that even after (Office Depot and OfficeMax) combine, they might not be able to match Staples immediately and maybe not ever," said Morningstar analyst Liang Feng.


OfficeMax is a little more than a year into a major turnaround plan led by CEO Ravi Saligram, an engineer by training who worked at Leo Burnett and was a top executive at Aramark International before he was tapped to lead OfficeMax in 2010. Saligram is largely credited with leading the company's improved performance last year, with its stock price climbing 99.6 percent, from a low of $4.89 to a high of $9.76, though sales in stores open at least a year remained flat.


Like many retailers faced with competition from the Internet, OfficeMax has aimed to shrink and become more nimble.


"We're beginning to gain some momentum," Saligram told the Tribune in a December interview. "It's a journey, but we'll do it very deliberately."


Industry analysts agree that Saligram's strategy is gaining traction. Credit Suisse analyst Gary Balter predicted Saligram likely would be tapped to lead the combined business.


Saligram said the company has focused on a "three-pronged" approach that began in late 2011 and included turning around the company's core business and continuing to boost its online business and shrink store size.


That included plans to cut 5 million square feet of space, expand product offerings to include janitorial and sanitation supplies, and court the small-business customer in its bricks-and-mortar stores.


"We are obsessed with the small-business customer," Saligram said. "That's our core."


The problem with that approach, according to Feng, is that while small-business customers are most profitable for office suppliers, they are also the most fickle.


That strategy also isn't far from Staples'.


For consumers, little would change after a merger, analysts say. Competition is so fierce for the office supply industry that the threat of higher prices is next to nothing.


But a marriage would help in one regard: Consumers likely struggle to distinguish between the two suppliers, Calkins said.


"The brands are so similar, it's hard for anyone to keep them straight," he said.


The Wall Street Journal reported Monday that the two companies were in advanced merger talks.


OfficeMax reports fourth-quarter earnings Thursday.


Wall Street is expecting sales to decline to $1.75 billion and adjusted earnings per share to drop to 27 cents per share.


crshropshire@tribune.com


Twitter @corilyns





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Rose returns to 5-on-5 drills for first time since injury









A sense of doubt has evolved into a hint of optimism about Derrick Rose's comeback from knee surgery.

The Bulls guard, who last week mentioned the possibility of sitting out the season, appeared to take another step Monday as he participated in 5-on-5 drills during practice.






"He was able to get out there, and it's good," teammate Kirk Hinrich said. "It was something that (we) as a team needed, as far as every individual coming off the (All-Star) break needed to scrimmage a little bit. And I'm sure it was good for (Rose), helpful to ... give him a good gauge of where he's at."

Coach Tom Thibodeau said Rose did "what everyone else did'' and said his participation wasn't out of the ordinary based on the previously stated outlook. The plan all along was to have Rose return to 5-on-5 action after the break.

Rose cited his inability to dunk as the reason he knew he hadn't fully recovered, and Joakim Noah said Rose still wasn't dunking Monday. The Bulls went through three scrimmages of seven to eight minutes, during which Rose ran full-court. It was unclear how much contact Rose endured or how much pressure he put on his left knee.

"He's doing what he should be doing,'' Thibodeau said. "He's focused on his rehab, doing more and more. We just have to be patient. When he's ready, he'll go.''

Thibodeau reiterated how his players need to pick up their intensity after dropping five of the last seven games and six of the last 10. A Rose return would instantly inject life into the 30-22 Bulls, although they've performed admirably at times in his absence while currently holding the Eastern Conference's fifth seed.

Until Rose steps on the court for a game, his teammates have to lean on each other.

"When we're right and we're playing the right way, we've proved that we can beat everybody,'' Noah said. "We've also proved that if we don't come with the right (attitude), don't play together, we can lose to anybody.''

The return of Hinrich to the lineup for Tuesday night's game in New Orleans should provide a boost. The Bulls went 2-5 with Hinrich sidelined by a right elbow infection and committed 15.6 turnovers per game in the losses.

With all due respect to Nate Robinson and his scoring ability, Hinrich runs the offense more efficiently and is a better defender.

"He's a huge part of what we do, and it just feels good to have Kirk back,'' Noah said. "What he brings to our team, it's hard to measure. His defensive intensity, the ball movement ... it's all big.''

The Bulls have lost two straight and take on a 19-34 Hornets team that has won its last two and is 5-5 over the last 10. Four of the Bulls' next six opponents have sub-.500 records, but the Heat (36-14) and Thunder (39-14) are in that stretch too.

"We have to clean some things up offensively and defensively,'' Thibodeau said. "But the biggest challenge is going to be the level of intensity, to get that back.''

vxmcclure@tribune.com

Twitter @vxmcclure23



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Romanian cinema triumphs again with top Berlin award






BERLIN (Reuters) – Romania claimed another major scalp on the European film festival circuit this weekend when “Child’s Pose” won the Golden Bear in Berlin, underlining the country’s emergence as a powerhouse of hard-hitting cinema in the post-Communist era.


The film, directed by Calin Peter Netzer, tells the story of Cornelia, an obsessive mother who uses every trick in the book to prevent her son from going to jail after he kills a boy in a car accident.






It is the latest in a long list of critical hits that have enjoyed startling success at festivals like Berlin and Cannes in recent years, helping to bring Romania‘s cinema to a wider audience.


Some of Romania‘s top directors, who have enjoyed the artistic freedom that flourished after the death of Communist dictator Nicolae Ceausescu in 1989, dismiss talk of a cinematic “new wave”, saying it lumps together very different styles and stories.


But ever since Cristi Puiu’s “The Death of Mr. Lazarescu” hit Cannes in 2005, and two years later his compatriot Cristian Mungiu won the coveted Palme d’Or there for the harrowing abortion drama “4 Months, 3 Weeks and 2 Days”, Romanian cinema has been firmly on the map.


“It is an acknowledgement, I think, that Romanian cinema is still producing good quality cinema and has been for a few years and it is a good endowment that it is still like this,” Netzer told Reuters after receiving the Golden Bear for best film.


UNFLINCHING STORYTELLING


While each film differs, there is a common thread of unflinching storytelling and compelling human drama often laid out against the backdrop of a cold and uncaring society.


Netzer said “Child’s Pose” was not a critique of Romania today, despite its unflattering portrayal of flashy materialism and casual corruption among the nouveau riche.


“I think basically this is about a relationship, a kind of pathological relationship between mother and son,” he told reporters in Berlin after the closing ceremony late on Saturday.


“The rest – the corruption, the framework, the context, all of that is on a separate level and is really only a backdrop.”


Victory in Berlin is likely to give the movie a major boost in terms of distribution in Romania and beyond, although some critics wondered whether the alienating figures of both mother and son might limit its appeal.


“There’s an instant bond the audience has with the two young women in ’4 Months…’ which we are deliberately not supposed to have in ‘Child’s Pose’,” said Jay Weissberg, critic at trade publication Variety.


“The mother is a monstrous figure and her son is even worse.”


However he, like many others, was impressed by Luminita Gheorghiu’s portrayal of Cornelia, one of several standout performances in Berlin-nominated films by mature actresses making the most of the kind of parts rarely written in Hollywood.


Paulina Garcia was the popular winner of the best actress Silver Bear for her turn in Chilean film “Gloria”, in which she plays a 58-year-old divorcee who sets out to live life to the full despite her setbacks.


“We all face crossroads in our lives where we can retreat into ourselves or we can hit the dance floor,” said “Gloria” director Sebastian Lelio of his character.


The biggest surprise at the Berlin awards ceremony was the best actor prize going to Nazif Mujic, a Bosnian Roma who had never acted before and had to be talked into playing himself in a drama based on his real-life ordeal.


“An Episode in the Life of an Iron Picker”, made for just 30,000 euros ($ 40,000), tells the story of how Bosnian hospitals refused to operate on his wife after she miscarried because she was not insured, despite the fact that her life was in danger.


Best director went to U.S. filmmaker David Gordon Green for his quirky road movie “Prince Avalanche” and Iranian entry “Closed Curtain” picked up the best script prize for directors Kamboziya Partovi and Jafar Panahi.


Panahi made the movie in secret in defiance of a 20-year filmmaking ban and was not allowed to travel to Berlin to collect his award.


“Tradition and culture remain, politicians come and go,” Partovi told reporters after receiving the honour.


(Reporting by Mike Collett-White; Editing by Andrew Heavens)


Movies News Headlines – Yahoo! News





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National Briefing | South: Abortion Curbs Clear Senate in Arkansas



The State Senate voted 25 to 7 on Monday to ban most abortions 20 weeks into a pregnancy. The measure goes back to the House to consider an amendment that added exceptions for rape and incest. The legislation is based on the belief that fetuses can feel pain 20 weeks into a pregnancy, and is similar to bans in several other states. Opponents say it would require mothers to deliver babies with fatal conditions. Gov. Mike Beebe has said he has constitutional concerns about the proposal but has not said whether he will veto it.


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Cubs seek big payday on TV rights









While the Chicago Cubs and rooftop owners debate proposed stadium billboards, a much more lucrative revenue source is in the team's sights.


Officials confirmed Monday that the team plans to begin renegotiating its broadcast rights agreement with WGN-TV, putting nearly half of its televised games in play after the 2014 season and opening the door to a potentially imminent payday that could help fund proposed Wrigley Field renovations.


The Cubs and WGN-TV have a broadcast partnership that dates to 1948 and a history that is inextricably linked. With baseball rights fees soaring in recent years, due in part to the creation of exclusive team cable channels, there is much at stake for both. Last month, the Los Angeles Dodgers launched their own cable sports network, striking a deal with Time Warner Cable that will pay the team a reported $7 billion to broadcast its games over 25 years.








The Cubs couldn't create their own cable channel until 2020.


For now, Cubs games are split between Comcast SportsNet Chicago and WGN-TV, earning the club about $60 million in annual broadcast rights fees combined, according to sources close to the situation. The CSN deal runs through 2019 and includes the White Sox, Bulls and Blackhawks as partners. Comcast owns about 30 percent of the network.


The White Sox on Monday declined to discuss the future of their broadcast rights.


The Cubs get about $20 million to air 70 games each year on WGN. They have decided to exercise a renegotiation option with the Tribune Co.-owned station, seeking to boost those revenues for the 2015 season and beyond. WGN will have a chance to retain those rights, but other media players are likely to get a shot as well.


"WGN has the ability to retain those rights through 2019, provided that they're willing to pay fair market value," said Cubs spokesman Julian Green. "That's a discussion for WGN and the Cubs to have together."


Based on the $60 million revenue fee for combined broadcast rights, the Cubs get about $400,000 per game, far below the market value potentially set by the Dodgers. Under their reported new deal, the Dodgers will be getting about $280 million per year, or about $1.8 million per game.


"It doesn't surprise me that the Cubs are going to look at all available options out there, including Comcast and everybody else who might be interested in their rights," said Jim Corno, president of Comcast SportsNet Chicago. "Sports content is extremely valuable. It's DVR-proof. Not many people are going to DVR a Dodgers game or a Bulls game or a White Sox game if they can watch it live. The advertiser can buy spots knowing that the chances are very slim that people are not going to watch my commercials because they're going to fast-forward through them."


The Ricketts family inherited the broadcast agreements as part of their 2009 purchase of the Cubs from Tribune Co., owner of the Chicago Tribune and WGN-TV. The $845 million deal — then the highest in Major League Baseball history — included Wrigley Field and a 25 percent stake in Comcast SportsNet Chicago.


Since then, valuations have soared, due in no small part to skyrocketing broadcast rights. Last March, an ownership group led by Chicago financier Mark Walter, CEO of Guggenheim Partners, paid a record $2.15 billion to buy the Dodgers out of bankruptcy. In January, the team announced the launch of its own regional sports network with Time Warner Cable beginning in 2014.


For the Cubs, who are looking to offset a proposed $300 million renovation of 99-year-old Wrigley Field with some new outfield billboards, the broadcast rights issue is a significant opportunity. Experts say there are plenty of options to improve on the current deal, including the possibility of upfront payments that secure partial rights through 2019, and a full standalone network beginning in 2020.


In a statement, Tribune Co. signaled it was willing to consider competing to keep the Cubs on WGN.


"WGN-TV has enjoyed a tremendous relationship with the Cubs and their fans since 1948," Tribune Co. spokesman Gary Weitman said in a statement Monday. "It is a relationship that we are proud of, and one that brings Cubs baseball to fans throughout Chicago and across the country. We're looking forward not only to the upcoming 2013 season, but also to working with the Cubs on baseball broadcasts in the future."


Tribune Co. shows games on both WGN-Ch. 9 and the national cable channel WGN America. While Tribune Co., which is under new management, is looking at programming options for WGN America that include original shows, sources say the company is likely to want to keep the Cubs in its lineup.


Green said the Cubs plan to talk to different parties about where the slate of games currently broadcast by WGN will be seen.


"I think there are a number of options that will certainly present themselves as we talk about this with WGN and other partners throughout the year," the Cubs spokesman said. "But at the end of the day, any final result needs to be a result that benefits the organization and most importantly, the baseball team."


The rise in sports rights fees is being passed along to cable and satellite operators, who in turn are raising monthly fees for customers, whether they watch the games or not. There is some speculation that the Dodgers deal proves to be a tipping point in which cable operators rebel by threatening to drop those sports networks.


Not everyone agrees that the Dodgers deal represents the ceiling of what broadcast rights fees are worth. Corno said that if the Dodgers sale and the new deal for the team's baseball network seemed outrageously expensive now, they likely will seem in retrospect to have been fairly priced, or even a bargain.


"In 25 years, when this deal is up, people will not be talking about how expensive the Dodger deal is," he said. "Because somebody else will have cut a deal in a major market with a major team that will make this deal look like Time Warner got a heck of a deal."


rchannick@tribune.com


Twitter @RobertChannick





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2 questioned in fatal shooting of Chicago teen

Janay McFarlane, 18, was shot on the way to a store, the same day Obama spoke on gun violence.









Two people are being questioned in connection with the fatal shooting of an 18-year-old Chicago woman who was killed Friday, the same day her sister attended President Barack Obama's speech on gun violence, officials said Sunday.


An 18-year-old man and a 20-year-old man are considered persons of interest in the homicide investigation and are being questioned by North Chicago police and officials from the Lake County State's Attorney's Office in connection with the death of Janay McFarlane, according to a statement released this afternoon by North Chicago police.


The men were arrested after McFarlane was shot at about 11:30 p.m. Friday on the  1300 block of Jackson Avenue in the northern suburb.








Angela Blakely, McFarlane’s mother, said she knew few details about the investigation but was encouraged by the news of the arrests.


“I’m just hoping that they do find out who did this to my baby, so they can pay for the crime they committed,” she said.


Blakely urged anyone with information about the killing to talk with police.


McFarlane, 18, of the 8900 block of South Lowe Avenue, was in North Chicago visiting family and friends and was walking with friends when she was shot, according Blakely. McFarlane was walking with friends, one of whom may have been the intended target, Blakely said.


When police responded to a call of shots being fired in the area they found McFarlane fatally shot, police said. They canvassed the area and were tipped off to the men who were taken in for questioning, according to police.


McFarlane was killed just hours after her sister, Destini Warren, 14, had attended President Barack Obama's speech against gun violence Friday.


Blakely, the mother of both girls, said that the family had been anticipating the President's visit to the school where Destini is a freshman.


Leading up to the visit, McFarlane frequently mentioned the recent death of Hadiya Pendleton, 15, whose own shooting death a mile from the Obama's home spurred the President's visit.


"It's terrible, it's terrible the only thing I can remember is my daughter telling me, 'Mommy, it's so sad about Hadiya. That makes no sense,' " Blakely said. "She always asked me a lot of questions about death."


The speech resonated even more when her family got the call from McFarlane's father in North Chicago, who told Destini that her sister was dead, she said.


"It was like real painful," said Destini, her voice choking back tears.


North Chicago officials said McFarlane's killing is the first in the northern suburb since October. The October slaying was the only homicide for the town last year.


chicagobreaking@tribune.com


Twitter: @ChicagoBreaking





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Well: Health Effects of Smoking for Women

The title of a recent report on smoking and health might well have paraphrased the popular ad campaign for Virginia Slims, introduced in 1968 by Philip Morris and aimed at young professional women: “You’ve come a long way, baby.”

Today that slogan should include: “…toward a shorter life.” Ten years shorter, in fact.

The new report is one of two rather shocking analyses of the hazards of smoking and the benefits of quitting published last month in The New England Journal of Medicine. The data show that “women who smoke like men die like men who smoke,” Dr. Steven A. Schroeder, a professor of health and health care at the University of California, San Francisco, wrote in an accompanying editorial.

That was not always the case. Half a century ago, the risk of death from lung cancer among men who smoked was five times higher than that among women smokers. But by the first decade of this century, that risk had equalized: for both men and women who smoked, the risk of death from lung cancer was 25 times greater than for nonsmokers, Dr. Michael J. Thun of the American Cancer Society and his colleagues reported.

Today, women who smoke are even more likely than men who smoke to die of lung cancer. According to a second study in the same journal, women smokers face a 17.8 times greater risk of dying of lung cancer than women who do not smoke; men who smoke are at 14.6 times greater risk to die of lung cancer than men who don’t. Women who smoke now face a risk of death from lung cancer that is 50 percent higher than the estimates reported in the 1980s, according to Dr. Prabhat Jha of the Center for Global Health Research in Toronto and his colleagues.

After controlling for age, body weight, education level and alcohol use, the new analysis found something else: men and women who continue to smoke die on average 10 years sooner than those who never smoked.

Dramatic progress has been made in reducing the prevalence of smoking, which has fallen from 42 percent of adults in 1965 (the year after the first surgeon general’s report on smoking and health) to 19 percent in 2010. Yet smoking still results in nearly 200,000 deaths a year among people 35 to 69 years old in the United States. A quarter of all deaths in this age group would not occur if smokers had the same risk of death as nonsmokers.

The risks are even greater among men 55 to 74 and women 60 to 74. More than two-thirds of all deaths among current smokers in these age groups are related to smoking. Over all, the death rate from all causes combined in these age groups “is now at least three times as high among current smokers as among those who have never smoked,” Dr. Thun’s team found.

While lung cancer is the most infamous hazard linked to smoking, the habit also raises the risk of death from heart disease, stroke, pulmonary disease and other cancers, including breast cancer.

Furthermore, changes in how cigarettes are manufactured may have increased the dangers of smoking. The use of perforated filters, tobacco blends that are less irritating, and paper that is more porous made it easier to inhale smoke and encouraged deeper inhalation to achieve satisfying blood levels of nicotine.

The result of deeper inhalation, Dr. Thun’s report suggests, has been an increased risk of chronic obstructive pulmonary disease, or C.O.P.D., and a shift in the kind of lung cancer linked to smoking. Among nonsmokers, the risk of death from C.O.P.D. has declined by 45 percent in men and has remained stable in women, but the death rate has more than doubled among smokers.

But there is good news, too: it’s never too late to reap the benefits of quitting. The younger you are when you stop smoking, the greater your chances of living a long and healthy life, according to the findings of Dr. Jha’s international team.

The team analyzed smoking and smoking-cessation histories of 113,752 women and 88,496 men 25 and older and linked them to causes of deaths in these groups through 2006.

Those who quit smoking by age 34 lived 10 years longer on average than those who continued to smoke, giving them a life expectancy comparable to people who never smoked. Smokers who quit between ages 35 and 44 lived nine years longer, and those who quit between 45 and 54 lived six years longer. Even quitting smoking between ages 55 and 64 resulted in a four-year gain in life expectancy.

The researchers emphasized, however, that the numbers do not mean it is safe to smoke until age 40 and then stop. Former smokers who quit by 40 still experienced a 20 percent greater risk of death than nonsmokers. About one in six former smokers who died before the age of 80 would not have died if he or she had never smoked, they reported.

Dr. Schroeder believes we can do a lot better to reduce the prevalence of smoking with the tools currently in hand if government agencies, medical insurers and the public cooperate.

Unlike the races, ribbons and fund-raisers for breast cancer, “there’s no public face for lung cancer, even though it kills more women than breast cancer does,” Dr. Schroeder said in an interview. Lung cancer is stigmatized as a disease people bring on themselves, even though many older victims were hooked on nicotine in the 1940s and 1950s, when little was known about the hazards of smoking and doctors appeared in ads assuring the public it was safe to smoke.

Raising taxes on cigarettes can help. The states with the highest prevalence of smoking have the lowest tax rates on cigarettes, Dr. Schroeder said. Also helpful would be prohibiting smoking in more public places like parks and beaches. Some states have criminalized smoking in cars when children are present.

More “countermarketing” of cigarettes is needed, he said, including antismoking public service ads on television and dramatic health warnings on cigarette packs, as is now done in Australia. But two American courts have ruled that the proposed label warnings infringed on the tobacco industry’s right to free speech.

Health insurers, both private and government, could broaden their coverage of stop-smoking aids and better publicize telephone quit lines, and doctors “should do more to stimulate quit attempts,” Dr. Schroeder said.

As Nicola Roxon, a former Australian health minister, put it, “We are killing people by not acting.”

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U. of C. Medicine's leader gears up for challenges









Nearly every morning, before 7 a.m., Dr. Kenneth Polonsky is dropped off near the Lakefront Trail on Chicago's South Side, a few steps from Lake Michigan.


He carries no briefcase, wears no suit and has no cup of coffee, the standard trappings of his executive contemporaries.


Instead — at least in the winter — he's covered in high-tech running gear, leaving only a small patch of skin around his eyes exposed to the weather. The outfit, he muses, must raise suspicions among cab drivers.





"It's 6:30 in the morning, it's dark and can be, maybe, 10 degrees outside," he says. "When I ask the driver to drop me by the side of (the road), they must think, 'What's going on with this guy? There's something funny here.'"


Twelve months a year, through heat waves, cold snaps, rain, sleet and snow, the top official at University of Chicago Medicine starts most mornings running 5 miles to work.


It's a routine that reflects lessons learned from decades of studying diabetes and treating patients with the disease and one he pairs with watching his diet "like a hawk." The daily run also is a vehicle for the cerebral 62-year-old M.D. to contemplate the challenges that lie ahead.


There are many, starting with the massive transformation of the way medical care is paid for and delivered as part of President Barack Obama's 2010 health care overhaul.


Polonsky also faces cuts to research funding that flows to the Pritzker School of Medicine through the National Institutes of Health and growing financial pressure from Illinois' Medicaid program, the federal-state health insurance program that serves a substantial percentage of the hospital's South Side patients.


All this while christening and trying to pay for a $700 million, 1.2 million-square-foot new hospital, a 10-story, boxy, modernist structure that towers above a campus better known for its ubiquitous, early-20th-century red-roofed Gothic buildings.


The hospital, dubbed the Center for Care and Discovery in the absence of a donor willing to lay down $50 million for naming rights, is scheduled to open Saturday.


With 240 private patient rooms, 28 supersize operating rooms and seven advanced imaging rooms, the hospital will specialize in neuroscience and the treatment of cancer and gastrointestinal diseases.


But even what is supposed to be a celebratory, clink-the-glasses moment for Polonsky and the university has been sullied by controversy.


An estimated 50 protesters entered the hospital on a Sunday afternoon in January, holding placards and using a megaphone to voice their displeasure that such a costly facility was not outfitted with a trauma unit.


University police with batons were videotaped shoving protesters to the ground. Four were arrested in the melee.


Polonsky said the system is re-evaluating its role in trauma care, "a legitimate question for discussion and debate and one we are looking at again in detail."


Managing this issue will be a major test of Polonsky's leadership in 2013 and will occur against the backdrop of the largest upheaval to the health care industry in a generation.


"We're in a really vulnerable situation at the moment; there's no question about it," Polonsky said of the shift under way in health care. "But that's one of the reasons I'm interested in my job. I believe I can impact a series of big issues."


Many people, he said, go through life wondering whether what they're doing is worthwhile or significant in the big picture of things.


"I'm very fortunate to never, ever have had that problem," Polonsky said.


A boy in South Africa





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Hutchinson expected to drop out, endorse Kelly in Jackson Jr. contest








State Sen. Toi Hutchinson is expected to drop out of the 2nd District special Democratic primary on Sunday and throw her support behind former state Rep. Robin Kelly in the contest to replace Jesse Jackson Jr. in Congress, multiple sources said late Saturday.

The move, expected to be announced in a morning news release, shakes up the Democratic field just nine days before the Feb. 26 primary election.

Hutchinson recently experienced a pair of setbacks during the short campaign. A super political action committee run by New York Mayor Michael Bloomberg started airing a TV attack ad backing Kelly and attacking Hutchinson and another candidate, former one-term U.S. Rep. Debbie Halvorson of Crete, for past support from the National Rifle Association. Gun control has loomed as a big issue in the contest.

In addition, Hutchinson had to deal with a recent news report detailing how she paid her mother as a campaign consultant. Hutchinson also was not listed as a participant in upcoming WTTW-Ch. 11 candidate forums.

Hutchinson's camp began contacting supporters tonight telling them of her intention to drop out of the contest, said two sources with knowledge of the decision. Word of Hutchinson's plan to endorse Kelly on Sunday via a news release also surfaced, according to a source familiar with the situation.

If Hutchinson exits the contest, there will be three major Democratic candidates left in a 15-candidate field: Kelly, Halvorson and 9th Ward Ald. Anthony Beale of Chicago.

Hutchinson got an early boost in the contest when Cook County Board President Toni Preckwinkle endorsed her instead of Kelly, who served as a top aide to Preckwinkle.


As of Feb. 6, Kelly trailed Hutchinson in cash available to spend. Kelly reported $88,820 available while Hutchinson had more than double at $199,901. Hutchinson’s campaign has engaged in a significant direct-mail campaign since that time. For the entire campaign, through Feb. 6, Hutchinson reported raising $281,106. Hutchinson has been endorsed by Preckwinkle, who gave her $1,000.


Overall, campaign disclosure reports showed Kelly has raised more than $303,725 since the start of the short campaign through Feb. 6. Campaign aides to Kelly said she has raised $417,727 for the campaign cycle through Wednesday.


Tribune reporter Bill Ruthhart contributed to this report.






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Daley turns focus toward Gary









Richard M. Daley has kept a low profile since leaving office in 2011.


That doesn't mean he has lost interest in urban issues. The former mayor has turned his attention in a surprising direction, beyond Chicago's borders to one of the most intractable urban tragedies in America: the collapse of Gary, Ind.


"I always believe no part of America should be forgotten, and I think Gary has been forgotten," Daley said.





Daley is using his influence at the University of Chicago, where he is a distinguished senior fellow, to push a modest but growing amount of manpower toward Gary Mayor Karen Freeman-Wilson.


With guidance from Daley and Freeman-Wilson, University of Chicago graduate students are trying to figure out what to do with Gary's abandoned buildings and how to promote greater use of technology to help the city accomplish more with less, among other projects.


The hope is that the students will go on to help other cities after graduation. If successful, the U. of C.-Gary partnership could be replicated in other industrial towns grappling with decline.


Gary spans about 55 square miles, nearly a quarter of the size of Chicago. Yet the steel town's population has plummeted to an estimated 80,000, meaning the city has lost about half its people since 1960. The city's problems have mounted, including abandoned buildings and homes, sagging infrastructure and a declining budget to pay for services.


Outsiders have tried to fix Gary since at least the Lyndon B. Johnson administration. Freeman-Wilson, a former Indiana attorney general, judge and Harvard College and Harvard Law School graduate, has reinvigorated Gary's renewal efforts. And she's unafraid to ask for help.


Immediately after winning the 2011 Democratic primary, Freeman-Wilson called Daley for advice. They met, and Daley invited her to be the first guest speaker at his lecture series at the University of Chicago's Harris School of Public Policy, where Daley has a five-year appointment.


This quarter, 11 students from the university's public policy, business and social services schools are getting course credit for working on projects for Gary.


"It was Mayor Daley's idea," Freeman-Wilson said as she rode from a meeting on Chicago's West Side to Gary. "I had always envisioned getting the support and work from (University of Chicago Law School) alums, because there were issues around codes and things of that nature. It was not until the mayor came up with the idea of using students from the (Harris) School of Public Policy that I said, 'Oh yeah, that would work. That would work very well.'"


Daley does not teach a class at the University of Chicago. He runs an occasional lecture series.


Carol Brown, his last policy chief at City Hall, leads the program and the class, which is called the "Urban Revitalization Project: City of Gary, Ind." Grants from the Chicago-based Joyce and MacArthur foundations help pay administrative costs, including Brown's salary and that of a part-time assistant.


Last quarter's class was divided into three project teams. One team is cataloging Gary's abandoned buildings, which are magnets for crime and eyesores that further depress surrounding property values. Another is trying to recruit pro bono legal and consulting services for the city. And a third is trying to craft a strategy to clean up front stoops and empty lots one block at a time. This quarter's class also is tackling untapped funding opportunities and economic development.


Freeman-Wilson said a major benefit of the partnership is the fresh ideas from students "who aren't jaded by the limitations of government, whereas a 20-year employee might say, 'Oh, no, we can't do that in government because we don't have X, Y and Z.'"


Already their work has prompted more widespread use among Gary employees of a technology that stores and analyzes geographic data. City workers are now using the technology to map potholes, fallen tree limbs and illegal dump sites. That way work crews can be dispatched to neighborhoods where the problems are most severe.


"This partnership encourages urban planners to think broadly about regions instead of cities — greater Chicago instead of the city of Chicago," said Stephen Paul O'Hara, a historian at Xavier University who wrote a book about Gary.


The students operate as consultants. They gather best practices and ideas from cities around the country and then recommend a course of action. At the end of each 10-week quarter, students present their recommendations to Daley, Freeman-Wilson and their staffs. Their grades are based on those presentations and supporting reports.


"I will tell you, it never stops getting nerve-wracking," second-year graduate student Jocelyn Hare said of presenting to Daley. "But it gets easier."


Last spring, Hare, 32, responded to an email seeking student volunteers to conduct preliminary research to test the idea of a partnership. Hare then interned for the city of Gary during the summer. The Harris school paid her $15 an hour. She then enrolled in the first class in the fall and again this winter, when it was opened to graduate students outside of Harris for the first time.





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