P2JW024000-7-A00100-1--------XA CMYK Composite CL,CN,CX,DL,DM,DX,EE,EU,FL,HO,KC,MW,NC,NE,NY,PH,PN,RM,SA,SC,SL,SW,TU,WB,WE BG,BM,BP,CC,CH,CK,CP,CT,DN,DR,FW,HL,HW,KS,LA,LG,LK,MI,ML,NM,PA,PI,PV,TD,TS,UT,WO IN TODAY 'S PAPER THE POWER OF DIGITAL CURRENCY WSJ. MAGAZINE rem koolhaas & dasha zhukova reinvent a moscow museum REVIEW VOL. CCLXV NO. 19 WEEKEND * * * * * * * HHHH $3.00 SATURDAY/SUNDAY, JANUARY 24 - 25, 2015 WSJ.com U.S. Put To Test By Euro’s Big Drop What’s News i i i World-Wide S audi Arabia’s King Salman, whose reign begins amid a thorny set of economic and social challenges, added his nephew Prince Mohammed bin Nayef to the line of succession. A1, A6  Saudi Oil Minister Ali alNaimi is likely to stay in his position until the turbulence in oil markets subsides. A6 n Rebel leaders in eastern Ukraine vowed to advance against government forces and boycott peace talks. A7 n The Supreme Court said it would examine Oklahoma’s lethal-injection protocol. A4 n Obama’s arrival in India on Sunday showcases what his administration sees as a deepening relationship with the South Asian nation. A5 Mohammed Mashhur/Agence France-Presse/Getty Images n A victory by the Syriza party in Greek elections Sunday could embolden leftist parties in other countries. A1 BY JON HILSENRATH Mourners gather around the grave of Saudi King Abdullah in Riyadh on Friday. King Salman, Abdullah’s half-brother, ascended to the throne. n The rate of union membership in the U.S. fell slightly last year, continuing a decadeslong slide. A3 Saudis Aim to Project Stability n The U.S. and Mexico are increasingly competing for a dwindling supply of farm labor, an analysis found. A3 BY AHMED AL OMRAN AND FELICIA SCHWARTZ n The ECB’s launch of an aggressive bond-buying stimulus program poses important tests for the U.S. economy and the Fed. A1 n The euro fell to its lowest against the dollar in more than 11 years, while U.S. stocks gave up ground. The Dow fell 141.38 points to 17672.60. B1, B5 n Prosecutors intend to appeal a court ruling they say could turn insider-trading enforcement on its head. B2 n UPS’s shares sank after the company said higher-thanexpected seasonal expenses would drag down earnings. B1 n In-flight catalog publisher SkyMall, hit by evolving rules and technology, filed for bankruptcy protection. B3 n McDonald’s warned that sales and profit will remain under pressure as it works to lure back customers. B3 n Box Inc. shares rose 66% in the cloud-computing company’s market debut. B3 n Morgan Stanley awarded chairman and CEO James Gorman restricted shares valued at $4.5 million. B2 n State Street and Bank of New York Mellon turned in disappointing results. B2 n A mechanics-union unit sued American Airlines over alleged pressure to breach federal maintenance rules. B4 n GE’s oil and gas business is bracing for deepening trouble from slumping oil prices. B4 Inside NOONAN A13 A Republic Of Disrespect CONTENTS Books..........................C5-10 Corporate News......B3,4 Eating & Drinking.D7-9 Heard on Street.......B14 In the Markets...........B5 Letters to Editor......A12 Opinion.....................A11-13 Sports................................A9 Stock Listings.....B10,13 Style & Fashion.....D4-6 Travel.............................D2,3 Weather Watch........B14 Weekend InvestorB7-9 > s Copyright 2015 Dow Jones & Company. All Rights Reserved A NURSE’S STORY World War II Vet’s Lobotomy Scarred Family She Raised BY MICHAEL M. PHILLIPS SUNLAND, Calif.—When Paul Ludden visits his mother in the nursing home, he sits on her bed and sings with her. Dorothy, 94 years old, remembers words to 1940s ditties. But she struggles to find memories of her days as a Navy nurse during World War II. When she grows quiet, Paul strokes her gray head, passing fingers over divots in her skull— tangible reminders that the war left his mother with profound mental illness and that government doctors treated her by cutting into her brain and giving her a lobotomy. This is the woman who raised Paul and his two brothers, patching their scrapes, cooking their dinners and seeing them through to adulthood. But she is also a mother who could be childlike and emotionally distant, prone to humiliating public displays of hostility, and who once chased a friend out of the house with a butter knife. Dorothy is one of the last survivors among roughly 2,000 psychiatrically ill veterans the Veterans Administration lobotomized in the 1940s and 1950s. The Wall Street Journal in 2013 first detailed the VA lobotomy program and profiled the troubled life of World War II pilot Roman Tritz, 91, the only living lobotomized veteran the newspaper could locate at the time. Lawmakers then asked the VA to find other surviving lobotomized veterans. VA headquarters, which says its files on such old cases are archived and difficult to access, hadn’t found any other survivors when Dorothy’s family contacted the Journal. Following the war’s end in 1945, hundreds of thousands of veterans swamped VA hospitals with psychological wounds ranging from what is now called PostTraumatic Stress Disorder to schizophrenia. VA mental wards were crowded with veterans, sometimes violent and out of touch with reality. But psychiatrists had few tools to treat them. Lobotomies, in which doctors sliced brain fibers thought to transmit excessive emotions, seemed a promising surgical solution to the VA. Doctors knew and relatives discovered, however, that lobotomies often erased personalities and left patients unable to care for themselves. Some like Dorothy were able go through the motions of normal life, but their marred minds exacted a painful toll on them and their families for decades. After the Journal’s first article ran in 2013, Mr. Tritz emerged somewhat from decades of selfisolation. Readers contributed Please turn to page A10 Ludden family Business & Finance JEDDAH, Saudi Arabia—Saudi Arabia’s new king swiftly moved to allay worries about continuity atop the oil kingdom, extending the line of succession to a younger generation by naming a nephew who has battled militant extremists and political dissidents alike. On the same day he ascended to the throne, King Salman bin Abdulaziz appointed his 55year-old nephew Prince Mohammed bin Nayef to the post of Composite n Thai prosecutors said they would press charges against former Prime Minister Yingluck Shinawatra. A5 i i i deputy crown prince, putting him second in line after Crown Prince Muqrin bin Abdulaziz. After decades of the crown being passed from one son of the kingdom’s founder, Abdulaziz ibn Saud, to another, the decision to insert a grandson into the line of succession marked an important generational shift for the Saudi royal family and the country that bears its name. The move followed the death on Friday of one of Saudi Arabia’s most popular and longest-serving leaders, King Abdullah bin Abdulaziz. Dorothy Ludden, a Navy nurse, before her VA lobotomy. prince. Well before becoming interior minister himself in 2012, Prince Mohammed has been a central figure in the kingdom’s close relations with the U.S., and met in December in Washington with President Barack Obama. “He’s an architect of the Saudi counterterrorism effort; he’s been the main point of contact for the U.S. on that,” a State Department official said. James Smith, the U.S. ambassador to Saudi Arabia from 2009 to 2013, said the new king and deputy crown prince “might be Please turn to page A6 After Abdullah  Economic, social problems pose challenge............. A6  Nation’s oil minister likely to stay on.......... A6  Heard on the Street.. B14 Prince Mohammed bin Nayef is credited with dismantling al Qaeda in Saudi Arabia through an aggressive anti-terrorism policy that he led from 1999 under his father, a long-serving interior minister and later crown Good Day for Box, Bad Day for Boxes Share price in minute-by-minute trading on Friday $23.23 $28 $116 up 66% from IPO 26 Previous day’s close: $114.25 114 24 112 22 110 BOX 20 18 106 16 104 IPO price: $14.00 14 UPS 108 $102.93 102 12 100 10 11 noon 1 2 3 4 10 Source: FactSet 11 noon 1 2 3 4 The Wall Street Journal UP AND DOWN: Shares of online-storage company Box shot up after Friday’s IPO, but investors punished package shipper UPS after it reported a tough holiday season despite strong demand and low oil prices. B1, B3 There’s No Easy Riding For India’s Motorcycle Drill Team i i i Border Guards’ Elite Stuntmen Display Feats on Wheels; ‘Peacock’ and ‘Lotus’ BY JESSE PESTA AND SANTANU CHOUDHURY  Merkel, Renzi see work ahead.. A8  Parity rumblings for euro......... B1 Professors Boost Rise Of Leftists In Greece BY CHARLES FORELLE down 9.9% wearing a plastic peacock on his head. “He’s gonna make lots of girlfriends,” jokes his teammate NEW DELHI—A few months Ashish Bhargava. ago Sugit Oranv, a motorcycle “I don’t think so,” Mr. Oranv lover, graduated from high says, beads of sweat forming unschool and realized der his peacock helhis dream: To join met after the paIndia’s elite Border rade’s final dress Security Force. rehearsal on Friday. And this Monday India’s paramilihe will be in front of tary Border Security the nation, and the Force patrols some world, as part of the of the country’s BSF’s crack team of toughest terrain, inmotorcycle stuntcluding the Pakimen—known as stani and Bangla“Janbaz” or the deshi frontiers, on Dare Devils—permotorcycles and forming for dozens camels. Drawing on of dignitaries inthis expertise, the BSF Dare Devils cluding President BSF also fields the Barack Obama as Dare Devils, a mopart of India’s annual Republic torcycle team whose wild disDay parade. plays of precision and balance Mr. Oranv will be the one Please turn to page A10 P2JW024000-7-A00100-1--------XA n A recent budget proposal in Maine could make the state the first to put nonprofits on the property-tax rolls. A4 New King Names First Member of Next Generation to Royal Line of Succession The European Central Bank’s launch of an aggressive program this week to buy more than €1 trillion in bonds poses important tests for the U.S. economy and the Federal Reserve. Europe’s new program of money printing—and the resulting fall in the euro—means the U.S. economy must deal with a rapidly strengthening dollar that will make American goods more expensive abroad. The stronger dollar could slow both U.S. growth and inflation, giving the Fed some incentive to hold off on its plan to raise short-term interest rates later this year from near zero. U.S. officials have been playing down that scenario, and, more broadly, resisting talk of a global currency war—competitive devaluations by countries eager to keep their currencies as low as possible to protect exports. The U.S. dollar has already soared in the wake of the ECB announcement Thursday to launch a €60 billion-a-month bond-purchase program, known as quantitative easing or QE. That program will flood the eurozone’s financial system with euros created by the central bank to buy government and private sector bonds. That is expected to boost growth by making eurozone goods and services cheaper around the globe. The dollar has already gained 15% against the currencies of U.S. trade partners in the past year. Among the factors driving the Please turn to page A8 NAOUSA, Greece—Wearing suit pants and a jacket, Costas Lapavitsas stood Wednesday afternoon on the floor of a steelfabricating shop here and addressed a few dozen workers and small-business owners who smoked while sitting in plastic chairs. “I am not a career politician,” he began. Indeed. Mr. Lapavitsas’s political career is only a few weeks old. In Greece’s elections Sunday, he is a parliamentary candidate for the leftist opposition party Syriza, which leads Prime Minister Antonis Samaras’s conservative party in the polls and could roil politics throughout Europe if it wins. For more than 20 years, the 54-year-old Mr. Lapavitsas has taught economics at the University of London’s School of Oriental and African Studies. Now, he is part of the cadre of academics-turned-politicians forging Syriza’s economic thinking. European economic orthodoxy, led by Germany, has fought Greece’s debt crisis with painful austerity—public-spending cuts and tax hikes—and other strict reforms. Syriza’s rise is the most potent challenge yet to that orthodoxy. If Syriza wins, it could embolden left-wing parties in other countries, especially Spain, where political tensions also are boiling. It could even result in a rift with Germany that ruptures the euro. The economic plan advanced by Mr. Lapavitsas and other professors aligned with Syriza is rooted in the core principles of debt forgiveness and higher government spending, which Germany has rejected. “We need to renegotiate the logic,” says Yanis Varoufakis, a Please turn to page A8 MAGENTA BLACK CYAN YELLOW