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* * * * * * THURSDAY, APRIL 16, 2015 ~ VOL. CCLXV NO. 88 WSJ.com HHHH $3 .00

Marvel superheroes.They are surrounded by Plexi-

glas, and they have nametagsthat include Wolverine, Profes-sor X, Iceman and Beast. The la-bels fit the plant’s Mojo. The fac-tory, once co-owned by ToyotaMotor Corp. and General MotorsCo., now displays an “Evolutionof Man” mural showing apesmorphing into men and menmorphing into Iron Man.

More than a dozen of Tesla’sPlease see ROBOTS page A12

Ford’s Godzilla

Uninvited VisitorOn Capitol Lawn

AIR MAIL: A gyrocopter landed onthe Capitol’s West Lawn onWednesday, piloted by a rural mailcarrier from Florida who said hewas delivering letters to legislatorsurging campaign-finance reform.Above, a bomb-squad memberapproaches the craft.

CONTENTSArts in Review.......... D5Business News B2,3,5,8Earnings......................... B7Global Finance............ C3Heard on the Street C10Opinion.................. A13-15

Small Business......... B6Sports.............................. D6Style & Travel........ D2-4Technology................... B4U.S. News................. A2-6Weather Watch........ B7World News.......... A7-11

s Copyright 2015 Dow Jones & Company.All Rights Reserved

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What’sNews

The Clinton Foundation hasdecided to continue acceptingdonations from foreign govern-ments, despite Hillary Clinton’scandidacy for president. A1, A4 Iran’s president accusedthe U.S. Congress of meddlingin sensitive nuclear talks, sig-naling potential new obstaclesin the way of a final deal. A8 Iraq’s premier said SaudiArabia threatens a regionalsectarian war by launchingairstrikes against Iranian-backed insurgents in Yemen.A8 Islamic State attacked vil-lages near the capital of Iraq’sAnbar province, signaling diffi-culties ahead for Baghdad as itseeks to retake the region. A8China is likely to ramp upinfrastructure spending andease credit after GDP grew atits slowest pace in six years. A7 Beijing gave the greenlight for construction ofChina’s first domestically de-signed nuclear reactor. A7Anew study has triggered adispute about the accuracy ofgenomic tests used tomatchcancer patients with drugs.A3The House passed billsaimed at preventing abuses atthe IRS following a series ofcontroversies at the agency. A4The U.S. health-insuranceindustry is calling for tougherrules for approving and track-ing medical devices. A2A Florida eye doctorwhofaces bribery charges withMenendez was arrested in ahealth-care fraud case. A3Aaron Hernandez, a formerNew England Patriots star, wasfound guilty of murder. D6

The EU charged Google withskewing results to favor its

comparison-shopping service,but the complaint could lead tobroader antitrust action.A1, A10 Japan dethroned China asthe top foreign holder of U.S.Treasurys for the first timesince the financial crisis. A1 Bank of America swung toa profit as legal expenses fell,but the results missed forecastsand disappointed investors. C1 Nokia agreed to buy Alca-tel-Lucent in a $16.6 billionall-stock deal, capping a pur-suit stretching back to 2013. B4Netflix added a better-than-expected 4.88 million stream-ing subscribers last quarter,helped by overseas growth. B3GM can retain a bankruptcyshield protecting it frombillionsin legal claims tied to faulty igni-tion switches, a judge ruled. B2The regulator of FannieMaeand FreddieMac will direct thefirms to slightly cut mortgagefees for riskier borrowers. A2 Small-cap shares hit a newhigh and the Nasdaq neared arecord. The Dow added 75.91points to close at 18112.61. C4U.S. industrial output felllast quarter, the latest evi-dence of a cooling economy. A2 The ECB chief said stimu-lus efforts are taking hold inthe European economy. A11Virtu’s IPOwill test percep-tions of a firm that has beenat the center of controversyaround high-speed trading. C1 Etsy priced its IPO at $16 ashare, valuing the online craftsmarketplace at $1.8 billion. B1

Business&Finance

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Workers at a Navistar truckplant in Ohio weren’t eager tomake friends when a new col-league showed up on the factoryfloor nearly 40 years ago.

It was a welding robot, andpeople manning the productionline thought of it as an intruderrepresenting a wave of automa-tion jeopardizing their jobs.They nicknamed it “Scabby.”

Today, the brick-walled truckplant is closed, and the hostilitytoward machines is thawing.

Giant bots capable of doingthe work of several people haveearned respect after decades ofcoexistence and, in the process,are getting new, more admiringnicknames.

The trend is best seen at aplant in Freemont, Calif., oper-ated by Tesla Motors Inc., acompany founded by the hugecomic book fan Elon Musk. Thebiggest robots are named after

BY MIKE RAMSEY

Factory Workers Warm UpTo Their Mechanical Colleagues

i i i

Tesla names robots after superheroes,but Nissan prefers anime; Godzilla is a favorite

A New SqueezeIn Economy Class

MIDDLE SEAT | D3

DJIA 18112.61 À 75.91 0.4% NASDAQ 5011.02 À 0.7% NIKKEI 19869.76 g 0.2% STOXX600 414.06 À 0.6% 10-YR. TREAS. À 1/32 , yield 1.900% OIL $56.39 À $3.10 GOLD $1,201.50 À $8.70 EURO $1.0685 YEN 119.14

|

Reality CheckHollywood rushes to fill gap as virtual-realitycompanies gear up for consumersBUSINESS & TECH. | B1

The board of the Bill, Hillaryand Chelsea Clinton Foundationhas decided to continue accept-ing donations from foreign gov-ernments, primarily from sixcountries, even though HillaryClinton is running for president,a summary of the new policy tobe released Thursday shows.

The rules would permit dona-tions from Australia, Canada, Ger-many, the Netherlands, Norwayand the U.K.—countries that sup-port or have supported ClintonFoundation programs on health,poverty and climate change, ac-cording to the summary.

That means other nationswould be prohibited frommakinglarge donations to the foundation.But those governments would beallowed to participate in the Clin-ton Global Initiative, a subsidiaryof the foundation where compa-nies, nonprofit groups and govern-ment officials work on solutions toglobal problems.

Ministers from any governmentwould be allowed to attend meet-ings and appear on panels at thegroup’smeetings and their govern-ments would be allowed to pay at-tendance fees of $20,000.

The new policy, which was de-signed to address growing concernthat the donations would presenta conflict of interest for a HillaryClinton presidency, all but ensuresthat Mrs. Clinton’s links to thecharity will be a feature of theemerging presidential campaign.

The campaign did not imme-diately respond to a request forcomment. Last month, whenasked about foreign contribu-tions, Mrs. Clinton said she was“very proud of the work thefoundation does” and noted thatthere are “hundreds of thou-

Please see CLINTON page A4

BY JAMES V. GRIMALDI

ClintonCharityTo KeepForeignDonors

The European Commissiontook direct aim at Google Inc.Wednesday, charging the Inter-net-search giant with skewingresults to favor its comparison-shopping service. But the for-mal complaint may only be theopening salvo in a broader as-

also opened a second front, in-tensifying a separate probe ofGoogle’s conduct with its An-droid mobile-operating system.

If history is a guide, the Eu-ropean case against Google willgrow. The bloc’s last big caseagainst a U.S. tech firm beganwith charges against MicrosoftCorp. in 2000 related to com-puter servers. The commissionlater added charges against Mi-crosoft for bundling its mediaplayer, and Web browser, withits Windows operating system.

The charges could lead tobillions of euros in fines and re-quirements for Google tochange its business practices.Microsoft ultimately paid €2.2billion ($2.3 billion). But peopleinside and outside Microsoftsay the case also altered thecompany’s culture, making itless brash and more cautious.

“There are certain things youknow you can’t do that othercompanies can do,” said Jean-François Bellis, a lawyer whorepresented Microsoft against

the EU. Being labeled “domi-nant,” as the EU labeled Googleon Wednesday, means execu-tives now must worry aboutpleasing regulators, as well asusers.

Inside Google on Wednes-day, “the amount of concernover [antitrust enforcement] isenormous,” said one personPlease see CHARGES page A10

sault that prompts big changesat Google.

European antitrust chiefMargrethe Vestager said shecontinues to examine other do-mains, such as travel and localservices, where Google is ac-cused of favoring its own serv-ices over those of others. She

By Tom Fairless inBrussels, and RolfeWinkler and AlistairBarr in San Francisco

Europe Charges Google Over SearchesAntitrust complaint tiedto firm’s comparison-shopping service couldlead to broader action

Victims, Heroes Unite Two Years After Boston Marathon Bombings

THEN AND NOW: Carlos Arredondo, in cowboy hat, helped Jeff Bauman after he was injured in the 2013 blast. The two were reunited Wednesday.

Clinton applies lessons fromfailed 2008 bid.............................. A4

‘Search bias’ is at heart ofantitrust case............................... A10

Scrutiny turns to Android..... A10

MEDICARE OVERPAYSAS HOSPITAL PRICES RISESoaring bills for sickest patients can throw payment formula out of whack

New Jersey’s Christ Hospital col-lected $2.93 million in special pay-ments for treating the sickest Medi-care patients in 2013, more thanquadruple what it had the prioryear.

Much of the increase didn’t come from treatingmore patients or providing more care. It came fromhigher list prices charged by the Jersey City hospi-tal—markups of at least 60% from the prior yearfor many patients with common diagnoses, billingrecords show.

List prices charged by hospitals aren’t supposedto matter to Medicare because the governmentdoesn’t pay them. The federal program almost al-ways pays fixed amounts based mostly on patients’conditions. That is supposed to prevent hospitalsfrom sticking the government with big price hikes.

Nevertheless, jumps in list prices hit the govern-ment every year in one corner of the roughly $600billion Medicare system: treating complicated cases

known as “cost outliers.”Medicareallows hospitals to collect for suchpatients based on the actual costs oftreating them. But because hospi-tals don’t provide cost data until

many months after patients are treated, the gov-ernment has to estimate costs using a formula thatrelies heavily on list prices.

When prices rise faster than actual costs, thegovernment overpays. Medicare can seek to clawback overpayments when it gets fresher informa-tion about costs, but it rarely does, hospital recordsshow.

A Wall Street Journal analysis of Medicareclaims data and financial filings frommedical facili-ties shows that many hospitals increased pricesfaster than costs rose, affecting outlier payments.The Journal identified $2.6 billion in overpaymentsMedicare made to general hospitals between 2010and 2013 because of overestimates of hospitals’

Please see PRICES page A12

By ChristopherWeaver,AnnaWilde Mathewsand TomMcGinty

Japan dethroned China as thetop foreign holder of U.S. Trea-surys for the first time since thefinancial crisis, following a waveof purchases by buyers shiftingmoney to the U.S. as Japan’s eco-nomic policies push down interestrates there.

In reclaiming its status as thelargest foreign creditor to Amer-ica in U.S. official data, Japan isreasserting itself as Beijing holdsits Treasury portfolio steady amida weakening Chinese economy.

U.S. debt bears higher yieldsthan government bonds offered in

Please see JAPAN page A6

By Min Zeng in New York,LinglingWei in Beijingand EleanorWarnock

in Tokyo

Japan KnocksChina FromPerch as No. 1U.S. Creditor

Greg Ip: U.S. influence hinges onthe yuan............................................. A2

China feels heat as GDP growthweakens............................................. A7 Copyright © 2015, Oracle and/or its affiliates. All rights reserved.

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