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TECH MONDAY | Future of robot dogs / 1E A+E | ‘Atomic’ opera sparks, fizzles / 1C

50 CENTS | FINAL EDITION | FC . . . . OCTOBER 3, 2005 | MONDAY MERCURYNEWS.COM SERVING NORTHERN SINCE 1851 THE NEWSPAPER OF Inside UNREAL ESTATE: A MERCURY NEWS SPECIAL REPORT NEWS Gas AUGUST WILSON prices DIES AT AGE 60 The Pulitzer Prize-winning play- HOW THE BOOM wright captured the African- jump American experience in a 10- drama cycle. PAGE 7B S.F. FAMILY 11 cents SURVIVES IN BALI HAS HIT HOME WEEKEND SPIKE They recount suicide-bombing ACROSS NATION horror; Bali police display pic- Housing market emotions, dollars run wild tures of the three terrorists who By Gary Richards killed 22 people. PAGE 10A Mercury News Gas prices soared 11 cents na- MYSTERIOUS tionwide over the weekend, a sign that the country’s overtaxed refin- BOAT ACCIDENT eries are having trouble cranking out enough fuel despite a glut of At least 20 people die when a oil on the worldwide market and a tour boat carrying senior citi- major drop in sales at the pump. zens overturns on a calm lake in Americans were paying an upstate New York. PAGE 6A average $2.92 a gallon for self- serve regular on Sunday, up from RAIDERS EARN $2.81 on Thursday. according to the AAA. Prices also inched up FIRST VICTORY several cents over the past three After an 0-3 start, Oakland’s de- days in California and the South fense shines and Randy Moss Bay to $2.98. NHAT V. MEYER — MERCURY NEWS MERI SIMON — MERCURY NEWS celebrates in a 19-13 win over It’s worse for drivers who own the Dallas Cowboys. PAGE 1D THE REALTOR: Christine Kim and handyman Bill Dwyer THE SELLERS: Bill and Robin Black sold their Gilroy home diesel cars and transit agencies listen to instructions on a speakerphone. As the number of for $660,000 — which they bought for $140,000 in 1986 whose buses run on diesel. That Realtors grows, competition is increasing. — and are headed for Grass Valley. average price in California climbed to $3.39 a gallon Sunday, up 19 cents from a day earlier and The Week Ahead four-tenths of a cent lower than TUESDAY the diesel record set on Sept. 8. ‘‘The price of diesel has gone crazy,’’ said Jerry Cummings of S.J. COUNCIL Rotten Robbie, calling them the ‘‘biggest one-day increases we TALKS GARBAGE have ever seen. It looks like we The council is expected to dis- will be in for higher prices and cuss the performance of Norcal, which handles most of the city’s See GAS, Page 5A residential trash and recycling. WEDNESDAY High court’s

HOCKEY FANS: EUGENE H. LOUIE — MERCURY NEWS LEN VAUGHN-LAHMAN — MERCURY NEWS early task: FIRST-TIME BUYER: Michelle Limon, holding her THE RENTER: Hilda Delgado moved to the Bay Area for a WAIT IS OVER 22-month-old daughter, Micaela, and her husband made a higher salary — and now has found higher home prices. ‘‘I After a one-year labor dispute, successful bid on a condo. don’t see how it’s possible,’’ says the San Jose resident. assisted hockey returns. The Sharks open in Nashville with a 5 p.m. game suicide case against the Predators. By Howard Mintz THURSDAY Mercury News The U.S. Supreme Court begins STAGE TRIBUTE its term this week with a matter of life and death. TO MEXICAN ICON As California and other states consider legislation that would al- A bilingual play that celebrates low doctor-assisted suicide, the a Mexico comic legend — ‘‘¡Can- high court on Wednesday will re- tinflas!’’ — opens at Teatro Vi- view the Bush administration’s sio´n in San Jose. challenge to Oregon’s one-of-a- kind law that gives terminally ill FRIDAY patients the right to end their lives with medication.

DAI SUGANO — MERCURY NEWS RICHARD KOCI HERNANDEZ — MERCURY NEWS The arguments, which could NOBEL AWARDS give new Chief Justice John Rob- EQUITY PRISONERS: Joyce Fee and Denice Cranney cannot THE DOOMSAYER: Ken Fichthorn persuaded his wife, erts his first hot-button social is- PEACE PRIZE afford to leave their Willow Glen home for a neighborhood Nicole, to sell their Los Gatos home for a big profit and move sue to address, are the culmina- Some think Finnish President with less traffic. into a rental, waiting to rebuy when he expects prices to fall. tion of a three-year legal struggle Martti Ahtisaari is the favorite. between the federal government Other possibilities: Sen. Rich- and right-to-die advocates push- ard Lugar, , Bob Geldof. By Sue McAllister on the couch at the end of the day. But wealth, rising prices are closing the ing to expand their movement be- Mercury News increasingly property ownership has door to homeownership for others. De- yond Oregon’s borders. Silicon Valley’s soaring home prices taken on a dual significance. We want a spite a summer slowdown, a Mountain The case has mobilized both SUNDAY have been felt by nearly everyone, home not only for the emotional securi- View house of less than 900 square sides of an issue that has consis- though in vastly different ways. ty and comfort it provides, but also be- feet recently drew offers from more tently provoked social, ethical and GOVERNOR’S Some stretch to get into a house at cause we can use it as a sophisticated than 30 hopeful buyers. It sold for moral debate over whether states any cost, spending more than half their financial instrument to create wealth. more than $658,000 — $100,000 over should have the right to permit BILL DEADLINE incomes on mortgage payments. Others That’s one reason buyers today are the asking price. doctors to prescribe lethal doses despair, convinced they’ll never be able willing to take on dizzying debt to get Local history books might remem- of medicine to terminally ill pa- He has started wading through to buy a house where the median price is into a home. Once in, many borrow ber 2005 as the year ‘‘housing bubble’’ the dozens of bills, but this is the now $714,000. heavily against their rising property catapulted past ‘‘jobless recovery’’ and See SUICIDE, Page 9A final day for Arnold Schwarzen- Meanwhile, some who have owned values, taking out equity loans to pay ‘‘offshoring’’ to be the most potent egger’s approvals or vetoes. homes for years cash out to launch new for college tuition or to buy a new car. catch phrase among economists and SUPREME COURT’S PIVOTAL ERA lives in cheaper housing markets while Because recent history tells them Sili- regular Joes alike. others, trapped because they can’t af- con Valley real estate values go ever Money and emotion are a combusti- New term today: With a new chief INDEX ford bigger homes here despite their eq- upward — with many houses now ble mix, the fuel for many personal dra- justice, the court will tackle several Action Line...... 3B uity gains, stay put. worth 30 times what they cost 30 years mas. talked to six controversial cases. PAGE 3A Calendar ...... 1F Home has always been the place ago — many homeowners assume individuals and families about how the Classified ...... 1CL where we seek tranquillity in an untran- there will be enough equity left over to region’s current real estate boom has Comics...... 4C quil world, where we throw barbecues pay for retirement, too. affected their lives. WHY IT MATTERS Dear Abby ...... 6C and baby showers, tend our roses, flop But while many revel in their paper Read their stories, Pages 12 and 13 Editorials, Op-Ed .....14A-15A The Supreme Court’s ruling on Horoscope ...... 4C Oregon’s assisted-suicide law could Lottery...... 2A influence the fate of similar mercurynews.com TODAY: Meet the players TUESDAY: How risky loans legislation in other states, including Morning Buzz...... 2C California. Movies ...... 3C Read Part One of the series online. in the housing market make housing more affordable Obituaries ...... 7B People ...... 2A State News...... 5B Tech Monday ...... 1E 103,467 FANS IN MEXICO CITY WATCH 49ERS LOSE Television ...... 6C State Controller Steve Westly

WEATHER defends IPO profits as eBay exec . Mostly sunny

By Chris O’Brien News analysis of Westly’s tax F High: 69-73 Mercury News records shows that in 1999 and Low: 47-51 When he worked as a top ex- 2000, he bought pre-IPO Complete forecast, 8B ecutive at eBay, state Control- shares in 189 companies — al- mercury ler and gubernatorial candi- most one of every five compa- date Steve Westly made $1.6 nies that went public — and of- TO SUBSCRIBE news.com million through a controversial ten sold them on the first day of 1-800-870-NEWS (6397) or but widespread practice involv- trading. He got the shares mercurynews.com/subscribe Steve Westly made his tax ing hot IPO shares. through brokerage accounts documents During the dot-com boom, with six banks, including three public; view favored insiders often got lu- that helped underwrite eBay’s them online. crative stock from investment stock offerings. DARIO LOPEZ-MILLS — ASSOCIATED PRESS banks courting their compa- Jose´ Luis Torres sells merchandise in Mexico City before the 49ers faced Arizona nies’ business. A Mercury See WESTLY, Page 4A in the first NFL regular-season game outside the United States. Story, Page 1D Copyright 2005, San Jose Mercury News SJMN Operator: NN / Job name: XXXX0175-0004 / Description: Zone:MO Edition: Revised, date and time: 08/27/16, 18:37 Typeset, date and time: 10/02/05, 22:33 1003051MOA0A004 / Typesetter: IIIOUT / TCP: #1 / Queue entry: #0201 CYAN MAGENTA YELLOW BLACK 10/3/2005 MO A 4

4A MERCURYNEWS.COM SAN JOSE MERCURY NEWS MONDAY, OCTOBER 3, 2005

SERVING SINCE 1851 Vol. 155, No. 106 WESTLY l Controller ADMINISTRATION GEORGE RIGGS defends IPO profits President and Publisher OVERALL RESPONSIBILITY FOR NEWS, OPINION PAGES AND ALL BUSINESS ACTIVITIES [email protected] / (408) 920-5575 Continued from Page 1A financial hits along the way. In October 1999, according to SUSAN GOLDBERG While Westly did nothing ille- his tax returns, Westly bet the Executive Editor and Vice President gal, analysts say his actions Nasdaq had peaked. He paid RESPONSIBLE FOR NEWS COVERAGE [email protected] / (408) 920-5456 could raise ethical issues as he $2.93 million for a hedge betting gears up to run for governor the index would fall. It didn’t. DAVID SATTERFIELD next year. Westly said he faced And Westly lost $2.77 million in Managing Editor no conflict in taking stock from cash. RESPONSIBLE FOR DAILY NEWS OPERATION [email protected] / (408) 920-5352 banks because he was not in- volved in decisions about eBay’s Post-eBay transactions STEPHEN E. WRIGHT investment banking business. After leaving eBay in Decem- Now is the time to Editorial Page Editor and Vice President Instead, he said, brokers ap- ber 2000, Westly purchased a RESPONSIBLE FOR OPINION & COMMENTARY PAGES [email protected] / (408) 920-5325 proached him and other eBay series of financial hedges and Get ready for the executives simply because of straddles to protect the value of DAVE BAUER their high net worth. his unsold eBay stock. But Vice President/Operations RESPONSIBLE FOR PRODUCTION ‘‘They probably went to 40, QUICK RETURNS eBay’s stock unexpectedly rose, Holiday Season! 50 people at eBay,’’ Westly said. and Westly lost about $57 mil- AND INFORMATION TECHNOLOGY Here’s an example of how state [email protected] / (408) 920-5323 ‘‘This was well beyond the exec- Controller Steve Westly made lion in cash. Give yourself a lift. LISA BUCKINGHAM utive office. And the amount of money off hot shares he got from ‘‘That is something many, Vice President/Chief Financial Officer shares they gave to each of us investment banks when he was at many executives did,’’ Westly [email protected] / (408) 920-5255 was typically small.’’ eBay: said. ‘‘And there were many Learn about our low downtime lifting procedures But critics say executives more that wish they didn’t. You and other age-defying services. JEFF KIEL such as Westly got special ac- On Dec. 1, 1999, Robertson never know exactly how the Vice President/Advertising Stephens allocated 500 shares in [email protected] / (408) 920-5649 cess because of their positions market will behave.’’ Join us at our Fall Seminar at publicly traded companies. In McAfee.com to Westly’s account at At one point, Westly’s duties DAVID ROUNDS fact, banks would no longer be $12 a share. at eBay included responsibility Thursday, October 6th at 6:30 pm Vice President/Circulation allowed to offer Westly such ac- The stock opened at $38 and for mergers and acquisitions. Call to make your reservation! [email protected] / (408) 920-5674 counts today. And the practice closed at $44 on its first day of But the company purchased on- KATHLEEN SLATTERY HALL caused widespread anger trading — a gain of nearly 267 ly a handful of companies dur- Vice President/Human Resources among smaller investors who percent. ing Westly’s time at eBay and and Labor Relations viewed it as an insider game never used investment bankers [email protected] / (408) 920-5095 Westly’s broker sold all his shares that helped stack the deck for a gain of $14,515. on the deals, according to an Questions about news against them. eBay spokesman. ‘‘The banks weren’t doing it Source: Mercury News and Westly’s tax records Although Westly was one of or photos? because they liked the color of the top five executives when Have a question or comment about an article or 408.559.0988 • 877.AGE.DEFY photograph in the Mercury News? Contact your their eyes,’’ said Nell Minow, eBay went public in 1998, he reader representative, Steve Yvaska, in the chair of the Corporate Library, from an account with Robertson said Whitman and others made 3803 South Bascom Ave., Suite200, Campbell newsroom 8:30 a.m. to 5 p.m. Monday through a governance advisory firm. Stephens, an underwriter on the decisions about banking. www.agedefy.com Friday. ‘‘Their motto was probably that eBay’s IPO and secondary offer- After eBay’s IPO in August Phone (408) 920-5958 it couldn’t hurt to have a friend- ings. 1998, Westly said he was ap- E-mail [email protected] ly relationship with him be- ■ The next biggest chunk of proached by a number of bro- cause he might be helpful down gains — $329,074 — came kers. He opened accounts in HOME DELIVERY the road. That’s why they do through an account with Ham- early 1999 at several trading Computer Service things. brecht & Quist, which helped houses to maintain a diversified $49/hr SUBSCRIPTION BILLING, STARTS, ‘‘Did he do anything wrong? underwrite eBay’s secondary portfolio. and Repair at our place MOVES AND VACATION HOLDS No. Would he be allowed to do it stock offering in April 1999. Over the next two years, or yours Online mercurynews.com again today? No.’’ ‘‘It certainly looks like the sets Westly said he largely left the We sell and service Phone 1-800-870-NEWS (6397) The trading came to light last of actions that people call ‘spin- day-to-day management of the FAX 1-800-939-2329 week when Westly released 10 ning,’ ’’ said Robert Daines, a accounts to his brokers. He typ- Dell, IBM, Apple and more! years of federal and state in- professor of law and business in ically got only 100 to 500 For next day home delivery, call by 3 p.m. or On-site, pick-up or walk-in subscribe online by noon. come-tax returns, hoping to the Stanford Law School. ‘‘The shares, he noted. score political points. The other banks look like they have incen- But at the time, such small service for Windows and Apple systems REPLACEMENT OF MISSED/DAMAGED contenders in the race, state tive to do it for reasons that peo- chunks could lead to big profits, PAPERS 1-800-870-NEWS (6397) Virus and spyware Call before 9:30 a.m. Treasurer and ple called spinning. And he’s get- especially because clients like Gov. , ting a return without much Westly got the stock at below- detection and removal SUBSCRIPTION RATES haven’t released their latest re- risk.’’ market value. Data migration, backup Daily and Sunday $3.50 per week + tax turns yet. The U.S. House Committee on ‘‘There were no legal rules Friday–Sunday* $2.75 per week +tax Financial Services released a re- against spinning,’’ said John and recovery Financial analysis Sunday only* $1.71 per week + tax port in October 2002 that found Coffee, director of the Center of IBM authorized repair The documents provide an spinning was commonplace dur- Corporate Law at Columbia * Sunday-only and Friday-Sunday subscriptions unusually candid look inside the ing the tech boom. It singled out University Law School. ‘‘The Home network troubleshooting, cabling and installation receive the following holiday papers: New Year’s Day, Presidents’ Day, Memorial Day, Labor Day, finances of a key executive dur- a handful of executives who had only question is one of ethics. starting at $69 per hour ing the frothy dot-com era. Ac- benefited, including three at And there, the question is this: Thanksgiving and Christmas. These subscriptions Network design and implementation for small and also receive bonus day deliveries Sept. 29, Oct. 6, cording to a Mercury News eBay: Whitman, Jeffrey Skoll Did Goldman see him as a fu- 13, 20 and 27. Prices subject to change. analysis of Westly’s trades: and founder . ture dispenser of future busi- medium businesses ■ He received pre-IPO ness? There’s no way to know.’’ Mail rates available. EBay settlement Rentals: PCs, Notebooks, Projectors San Jose Mercury News (USPS 480-260) is pub- shares in 30.5 percent of Silicon In 2003, as part of a $1.4 bil- lished daily. Periodical postage paid at San Jose, Valley companies and 18.9 per- In April 2005, the three lion settlement with regulators, We Stock Dell Computers! Calif. cent of U.S. companies that agreed to settle a shareholder 10 investment banks agreed not Postmaster: Send changes to San Jose Mercury went public in 1999 and 2000. lawsuit over their IPO trades by to give executive officers ‘‘hot’’ ■ Dell Dimension 2400 Dell Inspiron 1200 News, 750 Ridder Park Drive. San Jose, Calif. 95190. Of the 189 companies for paying $3 million to eBay. IPO shares. Westly said he Intel Celeron 2.4 GHz, Intel Celeron M 1.3 GHz, which he got pre-IPO shares, he Westly joined eBay in August hadn’t followed these develop- 256 MB DDR, 256 MB DDR, 30 GB HD, NEWS suffered losses on only 25. 1997. During his three-year ten- ments closely because he was 40 GB HD, 10/1000 combo DVD/CD-RW, 14.1” ■ LAN, CD-ROM, XGA, XP Home. Action Line Voice mail (888) 688-6400 He made $209,250 in IPO ure, he oversaw at various points busy with the election. XP Home. 1 year warranty. [email protected] profits on an account with Gold- the company’s international and ‘‘I was now financial officer only $599! Business news (408) 920-5980 man Sachs, the lead underwrit- premium services, marketing for the sixth-largest economy in only $349! No rebate forms required [email protected] er for eBay’s IPO and second- and business development. the world,’’ Westly said. ‘‘I was Limit one per customer ary stock offerings. By compari- Over a five-year period ending quite substantially busy with Editorial/Opinion (408) 920-5572 son, eBay CEO , in 2003, he sold $246 million my new duties.’’ [email protected] who also sat on Goldman’s worth of eBay stock. But his net Features (408) 920-5241 board of directors, made $1.78 worth today is about half that. Contact Chris O’Brien at [email protected] million through Goldman IPO He has paid $63.29 million in [email protected] or www.clickawaycomputer.com trades. state and federal taxes since (415) 477-2504. Mercury News News (408) 920-5444 (800) 960-9030 [email protected] ■ The bulk of Westly’s IPO 1998. He donated $15.76 million Data Analyst Jack Davis [email protected] profits — $1,056,000 — came to charities. And he took some contributed to this report. [email protected] Obituaries (408) 920-5276 [email protected] Off Curtner at Hwy 17 & Camden Ave. 4 Blocks Southwest of San Antonio Rd. Reprints off of Union near The Pruneyard next to the Boardwalk Restaurant Photo reprints: (408) 920-5668 ROBERTS l New term starts Photo republication/reuse: (408) 920-5653 Article reprints/reuse: (888) 414-4534 Roadshow Voice mail (408) 920-5335 [email protected] today for Supreme Court Wholesale Doors Sports Continued from Page 3A was its chief virtue. law’s importance suggests Before 5 p.m. (408) 920-5444 ‘‘I think it’s important not to that is unlikely. After 5 p.m. (408) 920-5354 that the law conflicts with the have too narrow a view of pro- ‘‘The phrasing of it is so & Windows [email protected] federal Controlled Substances tecting personal rights,’’ Rob- atypical, almost original,’’ said Weather [email protected] Act. Former Attorney General erts said on the TV show. ‘‘The court historian David Garrow. Weddings/Anniversaries/ John Ashcroft threatened doc- right that was protected in the ‘‘I think it’s an important indi- tors who participate in the assisted-suicide case was the cator of what kind of justice he You Pay What the Birth announcements (408) 920-5984 [email protected] program with the revocation right of the people through might be.’’ of their licenses, or criminal their legislatures to articulate NEWS BUREAUS prosecution. their own views on the policies Abortion dispute Contractors Pay! Alameda County (510) 790-7300 The case raises cultural is- that should apply in those cas- Roberts will have other [email protected] sues about whether there is a es of terminating life, and not chances to distinguish himself Peninsula (650) 688-7575 right to die and the nature of to have the court interfering in this term. [email protected] end-of-life care, and it evokes those policy decisions. That’s An abortion dispute in late Whole House for Only! Santa Cruz County (831) 423-3234 troublesome memories of the an important right.’’ November will test his com- [email protected] complicated fight this year mitment to Roe vs. Wade over Terri Schiavo, the and demonstrate how $$ **$$ * ADVERTISING brain-dead Florida woman John Roberts is the first new much leeway he believes who was nourished by a justice in more than 10 years states should have to re- 24952495 3995 CLASSIFIED (408) 920-5111 feeding tube. Her parents strict abortion. The case, 6 Windows 5 Windows & (7 a.m. - 6 p.m., M-F) or 1-800-287-7878 wanted to keep her alive, and the first new chief justice in which arises from New mercurynews.com/classified but her husband said he nearly 20 years. Hampshire, involves a pa- 1 Sliding Door DISPLAY (408) 920-5589 was honoring her wishes by rental notification require- (9 a.m. - 5:30 p.m., M-F) removing the tube and al- ment that does not provide lowing her to die. If Roberts applies the same an exception for health emer- ONLINE (408) 938-6000 approach in the Oregon case, gencies. The court has said Call for “FREE” In-Home Estimate CONTACT US Federal vs. state he easily could vote to uphold that health exceptions must For the high court, it is a the law — a move that is likely accompany restrictions on or location near you San Jose Mercury News (408) 920-5000 question of federal vs. state au- to disappoint social conserva- abortion. But abortion oppo- 750 Ridder Park Drive thority and the right of individ- tives who oppose assisted sui- nents say the health exception San Jose, Calif. 95190 uals to decide such personal cide. If he leads the justices to should not always play the de- TOLL FREE Brokaw Rd. Rd. San Jose questions. Roberts’ approach a resounding opinion in that cisive role in determining exit Brokaw Mercury News suggests a clear direction in direction, it could make a whether a law is constitution- 1-866-464-1449 Schallenberger R ™ Lobby hours: M-F the case, and one that he spoke strong early statement about al. Clearly the best. 7 a.m. - 6 p.m. publicly about the last time the the direction he has in mind The case is not a test of Roe, *Based on 6 windows or max 600 U.I. (XO, XOX, SH), 5 windows (max 500 U.I.) and 1 Ridder Park Dr. The 880 Mercury Old Oakland Rd. d. 0.5 mi. high court dealt with the issue. for the court: one that stresses and Roberts has said he con- sliding door. Tempered glass not included. Not valid on prior purchase or in conjunction News In 1997, the justices turned deference to democratic will, siders the landmark ruling with other discounts (incl. materials, labor, tax.) Offer expires 10/31/05. 0.5 km Old Bayshore Hwy. back a challenge to a Washing- no matter the public opposi- ‘‘settled precedent.’’ But his ton state law that prohibited tion. vote in the New Hampshire Commercial St. assisted suicide, saying voters But there are important dif- case, as well as how he inspires AAA Windows & Doors 101 13th St. exit in that state had a right to de- ferences between the Oregon the other justices to vote, will FOR PRINTING QUALITY QUESTIONS cide the issue. and Washington assisted sui- be an indicator of how protect- (408) 920-5787 Roberts, then a private at- cide cases, and Roberts could ed he believes the right to 866-464-1449 WE RECYCLE: The Mercury News is partly torney, said on PBS’s ‘‘News- focus on some of them to reach abortion must be. printed on recycled newsprint. The newspaper Hour With Jim Lehrer’’ that another conclusion in the Ore- For Roberts, each case pro- www.aaawindowsanddoors.com is fully recyclable. he agreed with the ruling, and gon case. But Roberts’ state- vides an opportunity to make A VGV Windows, Inc. Company. lic. 610638 expanded on what he thought ment about the Washington his approach clear, and lead.