A.M. Rosenthal, R.I.P.

a.m._rosenthal.jpegA.M. “Abe” Rosenthal, the former editor of The New York Times for 17 years through the 1970’s and 80’s, died Wednesday at the age 84 from the effects of a stroke suffered two weeks ago.
Probably the biggest story that the Times broke under Rosenthal was the publication in 1971 of the Pentagon Papers — confidential government papers on America’s secret involvement in Vietnam — which won the Times one of its many Pulitzer Prizes awarded while Rosenthal was editor. The Pentagon Papers revealed that every Presidential administration since World War II had enlarged America’s involvement in Vietnam while hiding the extent of that commitment, but publication of the papers was risky given their classified nature. The Nixon Administration tried to suppress publication of the papers, which led to to a landmark Supreme Court decision upholding the primacy of the press over government attempts to impose “prior restraint” on what may be printed.
The best story about Rosenthal, however, is the one involving his forced retirement from the Times, which was not pleasant. In the mid-80’s, Rosenthal stepped down as editor of the Times and became a columnist for the newspaper. But in 1999, after 40 plus years with the Times, Times publisher Arthur Sulzberger Jr. rather unceremoniously dumped Rosenthal with no explanation. Rosenthal made clear that his leaving the Times was not his idea, telling one reporter that he should not report that he retired because it “would imply volition.” Then, when a young female Washington Post reporter asked him whether he had been fired, Rosenthal famously replied:

“Sweetheart, you can use any word you want.”

Lawrence Sager named UT Law School Dean

sagerlaw.jpgLawrence Sager, the holder of the Alice Jane Drysdale Sheffield Regents Chair at the University of Texas Law School and a noted scholar in the theory of Constitutional Law, has been named the new dean of the UT Law School.
Sager, who is 64, replaces William Powers Jr., who recruited Sager to UT four years ago and and is now president of the university. UT Law Professor Brian Leiter, who was a member of the search committee for the new dean, comments here and here.
Sager taught for more than 25 years at New York University’s law school before coming to the UT Law School. He was selected from a field of finalists that included a federal judge from California and legal scholars at the University of Virginia, Boston University, Cornell University and Yale University.

Casserly is gone

charlie_casserly2B.jpgAs noted in this post from over a month ago, one of the worse-kept secrets in Houston sports circles over the past several months is that Houston Texans General Manager Charlie Casserly would — take your pick — either resign or be fired after the completion of the annual NFL Draft of college players in April. This Megan Manfull/Chronicle article today confirms that Casserly is gone.
Inasmuch as the Texans on-field performance over the club’s first four seasons has been the poorest of any recent NFL expansion franchise, the fact that Casserly is being shown the door is not a surprise to anyone except the Chronicle. For some reason, Chronicle NFL columnist John McClain has been maintaining the facade that Casserly’s leaving is voluntary when there is a strong probability that it is not. “There have been reports that Casserly will be fired, which isn’t true,” writes McClain. “If he leaves, it will be his decision.”
H’mm. Apparently it never occurred to McClain that the eminently classy Texans owner Bob McNair might be willing to throw Casserly a bone by allowing him to say that his leaving is voluntary rather than a firing. The fact that McClain’s relationship with Casserly apparently does not allow him even to acknowledge that possibility reveals that he really shouldn’t be writing about the matter in the first place.
Update: McClain won’t give up on his theory that Casserly was not pushed out, even though there is little question that Casserly’s contract — which had only a year left on it — would not have been renewed.

Judge Hughes confirms Hyde Act sanction

Judge Hughes in robe4.jpgFollowing on this earlier post, this Harvey Rice/Chronicle story reports that U.S. District Judge Lynn Hughes ordered the Justice Department to pay $390,000 in attorney’s fees and expenses to an Oklahoma attorney as a Hyde Act sanction for a bad-faith prosecution.
In so doing, Judge Hughes observed during a hearing yesterday that the government’s charges amounted “to a garbled press release about working men who can’t get insurance” and “a jumble of claims and stray facts.”
By the way, for Judge Hughes’ opinion of the work of the Enron Task Force, see here.

Anything for a Conviction

As noted yesterday, the Enron Task Force refused Ken Lay and Jeff Skilling’s request to have the prosecution recommend to U.S. District Judge Sim Lake that half-a-dozen former high-level Enron executives who have declined to testify during the trial on Fifth Amendment grounds be granted immunity from having their testimony used against them in a subsequent prosecution.

Those witnesses — several of whom have been mentioned prominently in testimony during the trial — would likely provide exculpatory testimony for Lay and Skilling if they were to testify.

The Lay-Skilling defense team limited their immunity request to those six witnesses even though the Task Force fingered the unprecedented number of the Task Force identified over 100 former Enron executives as unindicted co-conspirators for the transparent purpose of preventing the jury from hearing the full story of what happened at Enron.

Now, according to this Mary Flood/Houston Chronicle article, the Task Force is requesting that Judge Lake go even further and instruct the Lay-Skilling defense team not to inform the jury during closing arguments of the Task Force’s decision not to allow the jury to hear all the witnesses with relevant testimony about the charges against Lay and Skilling.

In short, the Task Force’s position is “we don’t want the jury to hear all the relevant evidence, but we also don’t want the other side telling the jury that we don’t want them to hear all the relevant evidence.”

In the meantime, you can bet that the Task Force will tell the jury during closing argument that the testimony of the dozen or so former Enron executives who testified against Lay and Skilling under plea deals with the Task Force is pervasive evidence of Lay and Skilling’s guilt.

The destroyed lives, careers and economic wealth that lies in the wake of the Task Force’s previous Enron-related prosecutions is a foreboding legacy of this abominable Task Force tactic that ensures that juries will never hear exculpatory testimony for the defense.

During those earlier trials — the Arthur Anderson case, the Nigerian Barge case and the Enron Broadband case — the Task Force identified dozens of former Enron executives as either targets of the Enron criminal investigation or unindicted co-conspirators of the defendants. As a result, the Task Force effectively prevented many witnesses with exculpatory testimony for the defendants in those cases from testifying because of the threat that the witnesses’ waiver of their Fifth Amendment privilege would likely lead to criminal charges against them if they chose to testify contrary to the Task Force’s position in those cases.

The huge impact of this Task Force tactic was brought into full focus during the first trial of the Enron Broadband case last year. That trial initially appeared to be a sure-thing for the prosecution, but the Task Force’s case unraveled quickly as witnesses Lawrence Ciscon and Beth Stier both testified to a riveted jury about the Task Force’s threats of prosecution against them if they provided exculpatory testimony on behalf of the former Enron executives on trial in that case. That trial ended in a disastrous mix of acquittals and jury deadlock on the Task Force’s charges.

Arthur Andersen and the defendants in the Nigerian Barge trial were not so fortunate. In Andersen, the Task Force used the tactic in maliciously destroying a fine American company that had contributed to orderly commerce and the preservation of wealth in the U.S. for over eight decades. Likewise, in the Nigerian Barge case, dozens of witnesses from Enron and Merrill Lynch with exculpatory testimony for the defendants declined to testify because of the threat to Task Force retribution. The result was an an unspeakable injustice for the four Merrill Lynch executives convicted in that case.

Thus, our “Justice” Department is not really about “justice” at all. Rather than having a jury fairly evaluate all evidence relating to its charges against unpopular defendants or allowing defendants access to funds necessary to defend themselves effectively, our Justice Department is much more interested in indulging public bias against those defendants.

Indeed, that bias is so pervasive with regard to the Lay-Skilling case that the Houston Chronicle runs vile columns and blog posts on almost a daily basis embracing the prosecution’s calls for conviction of the defendants without so much as a mention — much less meaningful analysis — of the serious implications to justice and the rule of law arising from the government effectively preventing witnesses with exculpatory testimony for the defense from testifying in the case.

Something is seriously wrong with the administration of justice in America when the judiciary and the media blithely accept the government preventing a jury from hearing favorable testimony for defendants who are facing the overwhelming governmental power to imprison them for most of the rest of their lives.

Stros 2006 Review, Part Two

Berkman13.jpgI don’t know about you, but it sure seems to me that the first 20% of the Major League Baseball season flew by quicker than a Roger Clemens fastball. Now, if we could only see a Clemens fastball.
As predicted in my first Stros review for this season, the Stros (19-13) as a team have cooled off, going 8-8 in their second 16 game segment of the season after their sterling 11-5 start, which is still good enough to keep the Stros in the thick of the Central Division race with the Cardinals (20-13), the surprising Reds (21-11), the Brewers (16-16) and the Cubs (14-17). But despite several members of the club enjoying All-Star caliber seasons to date, there are enough warning signs about the Stros that it’s still not clear to me — absent a comeback from Clemens, that is — that the Stros can remain in playoff contention throughout the season in the strong NL Central.

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Our Justice Department at work

Yesterday, in the last day of testimony in the criminal trial of former key Enron executives Ken Lay and Jeff Skilling, the Enron Task Force confirmed in open court that it refuses to grant immunity to half-a-dozen former Enron executives who have declined to testify during the trial on Fifth Amendment grounds, but would likely provide exculpatory testimony for Lay and Skilling if they were granted immunity to testify.

The Lay-Skilling defense team limited the immunity request to those six witnesses even though the Task Force has fingered about 100 former Enron executives as unindicted co-conspirators in the case and targeted many of those in the Enron criminal investigation without indicting them. U.S. District Judge Sim Lake declined to grant defense immunity to the witnesses after the Task Force refused to recommend immunity to facilitate the witnesses’ testimony.

Meanwhile, during a hearing yesterday in New York federal district court, a Skadden, Arps lawyer representing accounting firm KPMG in negotiations with the Justice Department over KPMG’s involvement in creating and promoting allegedly illegal tax shelters testified that a Justice Department prosecutor threatened that “if [KPMG has] discretion regarding [payment of attorneys’ fees of KPMG partners involved targeted in the probe], we will look at that under a microscope.” Ellen Podgor in this post provides excellent background information on this hearing.

So, in one case, the Justice Department prevents a jury from assessing potentially exculpatory testimony for the defense while, at the same time, arguing that its witnesses alleging criminal conduct against the defendants are unrefuted.

In another case, the Justice Department attempts to undermine individual defendants from defending themselves by cutting off their main source of funds for a defense to a prosecution that — absent such a source for defense costs — would likely overwhelm them.

Yet two more examples of the increasingly high price of asserting innocence in our criminal justice system. As Sir Thomas More reminds us, “do you really think you could stand upright in the winds [of abusive prosecutorial power] that would blow” if that power were to set its sights on you? And what is the more serious danger to justice and the rule of law — out-of-control prosecutors or risk-taking businesspersons?

Aggies and Seahawks settle the 12th Man dispute

Aggie complaint.gifWithering under the logic of Texas A&M’s complaint (picture on the left) in the university’s copyright infringement lawsuit over its revered 12th Man slogan, the Seattle Seahawks gave in and entered into a settlement with the Aggies under which the Ags will allow the NFL club to continue using the phrase “12th Man” so long as the Seahawks acknowledge in doing so that the copyright on the slogan belongs to the Aggies.
The 12th man tradition began at Texas A&M in the 1920s, and the Seahawks adopted it in 1984 when they retired the no. 12 because of the help that their noisy fans provided in the old Kingdome Stadium. The Seahawks’ use of the 12th Man slogan became more prominent this past season during a successful playoff run when the volume at Qwest Field was so loud that more false-start penalties were committed there than in any other NFL stadium. As a result, the Aggies demanded that the Seahawks refrain from using the slogan and then filed a lawsuit.
Both sides of the lawsuit attempted to spin the settlement favorably. A&M Chief Marketing Officer & Vice President for Communications Steven B. Moore emailed this message to A&M alums :

“I’m pleased to inform you that, after months of negotiations, the university has reached an amicable agreement with the Seattle Seahawks resolving the controversy regarding the use of Texas A&M’s 12th Man trademark. Under the agreement, the university has granted the NFL team a license to use the 12th Man trademark in a seven-state area in the northwest that encompasses the current primary broadcast area of the Seahawks. As is the case of all licensees, the Seattle Seahawks will pay the university a licensing fee and will state publicly that Texas A&M owns the 12th Man trademark each time it is used.”

On the other hand, Seahawks CEO Tod Leiweke said:

“You won’t see any change. In certain places we will acknowledge their license and trademark. [. . .] Once they got into it, they realized it was the real deal here. It wasn’t a one-time marketing slogan . . . there was something real and authentic here.”

Meanwhile, a friend of mine — a fervent Aggie booster — emailed me with this reaction to the settlement, which is apparently shared by a number of Aggie faithful:

“The Ags gave up, just like [Head Coach Dennis] Franchione‘s defense.”

Oscar Wyatt’s Oil-for-Food motion to dismiss

Oscar Wyatt3.gifLawyers for Oscar S. Wyatt Jr. have filed a motion to dismiss criminal conspiracy charges against the longtime Houston oilman in connection with the United Nations’ Oil-for-Food scandal in which they contend that the federal charges are retaliation for his being “a persistent and vocal critic of U.S. policy.” A copy of the motion to dismiss is here, the table of contents of the memorandum in support of the motion to dismiss is here, and you may download a copy of the 88-page memorandum here. Previous posts on the federal investigation of Wyatt in connection with the Oil-for-Food scandal are here, here and here.
Mr. Wyatt was indicted in October, 2005 is an expansion of another federal case that was brought in April against David B. Chalmers Jr., president of Houston-based Bay Oil USA Inc. The indictment accuses Wyatt of conspiring with Chalmers and two Swiss business executives of paying millions of dollars in kickbacks to Saddam Hussein’s regime in Iraq so that Wyatt’s companies could continue to sell Iraqi oil under the Oil-for-Food program. Under the indictment, the 81 year old Mr. Wyatt faces a potential jail term of at least 60 years and the threat that the Justice Department will attempt to freeze a substantial amount of his assets. Wyatt — who was arrested early in the morning of October 21 at his home in Houston — is currently free after pleading not guilty to the charges and posting bail of $2.5 million.

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The end of the confounding contango?

oil_well21.jpgThis post from a couple of weeks ago noted the rise of crude oil prices to over $70 per barrel, and this subsequent post examined the unusually long contango period that has existed in the oil trading markets during the current run-up in crude oil prices.
Well, crude oil prices have now fallen below $70 per barrel again. Thus, Clear Thinkers favorite James Hamilton is wondering whether oil prices have peaked for the time being. One interesting observation in the post is about the impact of $3 a gallon gasoline prices:

These data seem to suggest that the April gasoline price increases may have been sufficient to reverse the usual tendency for the U.S. public to use more gasoline each year than the previous year. Certainly that’s what we observed last fall when gas prices were around their current values, and I see no reason not to expect to see the same thing to be repeated now.