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VOL. CCLXIII NO. 55 * * * * * * * *

SATURDAY/SUNDAY, MARCH 8 - 9, 2014

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WSJ.com

In Digital Era, Paper MakersManage to Fight, Not Fold

WIDER MARGINS

WEEKEND

Don’tCall UsBossyBy SherylSandbergand AnnaMaria Chávez

REVIEWWSJ. MAGAZINE

men's style issue

n The U.S. job marketshowed resilience in Febru-ary as hiring picked up de-spite harsh weather, bolster-ing hopes the economy willbreak out of its slump. A1n The jobs report ensuresthe Fed will pare its monthlybond-buying program to$55 billion in mid-March. A2n The Dow rose 30.83 pointsto 16452.72, as the bull mar-ket turns five years old. B1n Boeing said a manufactur-ing problem had causedhairline cracks in the wingson some Dreamliner jets. B1n Paper companies havefound ways to stay relevantin the digital era by trackingshifts in American culture. A1n The hunt to uncover theidentity of bitcoin’s founderdescended into a game of catand mouse in cyberspace. B1n Former Jefferies traderJesse Litvak was found guiltyof fraud for misrepresentingbond prices to his clients. B2nMexico imposed a raft ofmeasures to boost competi-tion in the country’s TVand telephone industries. B3n Coupons.com’s sharessurged 88% to $30 duringtheir first day of trading. B3n Ranbaxy has issued an-other recall of generic ver-sions of Lipitor in the U.S. B3

What’sNews

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Business&Finance

World-Wide

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CONTENTSBooks........................ C5-10Cooking...................... D7-9Corporate News.... B1-4Heard on Street.......B14In the Markets.......... B5Markets Dashboard B6

Opinion................... A11-13Sports............................ A14Stock Listings........... B13Style & Fashion.... D3-4Travel........................... D5-6Weather Watch...... B14Wknd Investor.... B7-10

s Copyright 2014 Dow Jones & Company.All Rights Reserved

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InsideNOONAN A13

New York mayorvs. the children

Russia threatened to cutoff natural-gas shipments

to Ukraine over allegedly un-paid bills, while the Penta-gon said it had discussed thepossibility of closer ties withKiev for the first time. A1 Former Ukrainian leaderYulia Tymoshenko said theWest was risking its credibil-ity by not taking more force-ful action against Russia. A7n A Malaysia Air flight car-rying 239 people from KualaLumpur to Beijing lost con-tact with air-traffic controlearly Saturday. A8, WSJ.comn A number of historic sitesacross the U.S. face an uncer-tain future due to dwindlingfunding for preservation. A3n Efforts to rework assis-tance for low-wage workershave put the Obama admin-istration and some Republi-cans in rare alignment. A4n The U.S. Border Patrolchief told agents to refrainfrom firing weapons duringborder encounters unlesstheir lives are in danger. A3n Turkey’s Erdogan saidthat he could ban YouTubeand Facebook after localelections due March 30. A8n Died: Frank Jobe, 88, pio-neer of “Tommy John sur-gery” on pitchers’ elbows.

The jobs market showed resil-ience in February as hiring pickedup despite harsh winter weather,bolstering hopes the U.S. econ-omy will break out of its recentslump as the spring arrives.

Nonfarm payrolls grew by aseasonally adjusted 175,000 inFebruary, the Labor Departmentsaid Friday, following a two-month stretch of weaker growth.The unemployment rate tickedup to 6.7%, in part because morepeople joined the workforce.

The improved picture couldease worries about a more fun-damental slowdown in the U.S.economy as gauges of retailsales, manufacturing output andhousing weakened in recentmonths. But if winter weatherbears much of the blame, theeconomy could bounce back aswarmer temperatures unleashpent-up demand.

“It’s a very encouraging re-port, indicating that we’vemostly seen weather disrup-tions,” said Morgan Stanleyeconomist Ted Wieseman.

Much of the economic activitylost to winter weather should re-surface in the spring, with theeffect “more or less” evening out

over the first half of the year,Mr. Wieseman said. Forecastingfirm Macroeconomic Advisersthis past week said unusuallycold temperatures will shave afull percentage point off the na-tion’s growth rate in the firstquarter and add 1.2 percentagepoints in the second quarter.

Stronger job growth last fall,before the winter slump, spurredthe Federal Reserve in Decemberto begin scaling back its bond-buying program, which aims tostimulate the economy by lower-ing borrowing costs. Friday’s re-port will encourage the centralbank to continue reducing itspurchases in $10 billion incre-ments this year, including at itsMarch 18-19 meeting.

Despite last month’s show ofresilience, the labor market re-mains sluggish as the economicrecovery nears the end of itsfifth year. The Labor Departmentrevised up only modestly its es-timates for payroll gains in priormonths, with January’s gain nowestimated at 129,000 instead of113,000 and December’s gain at84,000 instead of 75,000. The

Pleaseturntothenextpage

BY BEN LEUBSDORF

Jobs ReboundEases FearsOf SpringStallWorries Over Early-Year Hiccups RecedeAs U.S. Businesses Add 175,000Workers

COHOES, NY—For three generations, MohawkFine Papers Inc. ran a mill at the juncture of theMohawk and Hudson rivers, selling paper to IBM,Exxon Mobil, General Electric and other corporategiants for annual reports.

But as business moved online, company Presi-dent Thomas D. O’Connor Jr. was left to rescue thefirm his grandfather founded 83 years ago in a for-mer Civil War-era ax-handle factory.

Mohawk, the town’s largest private employer,was fast losing revenues as companies cut back onpaper for brochures, reports and marketing mate-rials. Operations at its 350,000 square-foot millshrank from seven days a week to five to four. “For

the first time in hundreds of years,” Mr. O’Connorsaid, “paper had to justify itself.”

Then, in 2004, Mr. O’Connor made an extraordi-nary bet, given the digital revolution that ap-peared ready to crumple Mohawk and every paperfirm like it: His company borrowed millions to ex-pand into the fine stationery business.

The investment is now paying off as Americansrenew their relationship with paper—consumingless of the cheap stuff for reading news, bill-pay-ing and record-keeping and, in Mohawk’s case,buying more expensive stock for personalized holi-day cards, announcements and photo books fromonline juggernauts such as Shutterfly Inc.

Since the market low in March 2009, the stocksPleaseturntopageA10

BY KATHERINE ROSMAN

As she campaigns for theHouse, Democrat Gwen Grahamspends time on occasion work-ing alongside fellow Florida res-idents—on a farm, at a goatranch, at a construction site.She says it is a tactic borrowedfrom her father, former Gov. andSen. Bob Graham, intended toremind voters of the Grahamfamily’s long roots in the state.

Ms. Graham is one in a largegroup of House and Senate can-didates this year whose familynames are familiar to voters. Asthe sons and daughters of for-mer politicians, they are bank-ing that their famous names willboost their recognition amongvoters and, in many cases, rein-force the message that they areallied more with their homestates than with their politicalparties.

That is true for a number ofPleaseturntopageA6

BY ELIZABETH WILLIAMSON

On the Stump,CandidatesInvoke TheirFamily Trees

DURHAM, N.C.—Inside theauxiliary gymnasium’s side door,down the stairs to the basement,past a door that may be locked,through a dingy undergroundcorridor, up some steps, then asteeper flight of stairs, there’s alight at the end of the tunnel.

It’s a hidden en-trance to Duke Uni-versity’s basketballarena.

But sneakinginto Cameron In-door Stadium isn’tsuch a slam dunk.The few studentswho make it thatfar find a foul sight: a team inbright yellow uniforms guardingthe doors.

“Oh, Lord,” said one securityemployee, who wasn’t authorizedto speak with the media, before arecent game. “We have a lot ofstudents who try to sneak in.”

“All the time,” said a colleaguedown the hall.

Every year, thousands of Dukestudents ditch their dorm roomsand pitch tents to reserve theirplace in line for Saturday’s men’sbasketball game against the Uni-versity of North Carolina at ChapelHill, its rival 15 minutes down theroad. Duke touts the ritual to pro-

spective freshmenalmost as often asESPN airs overheadshots of the tent vil-lage.

But a smallernumber of studentsconcocts stealthierways to see the sea-son’s most-antici-

pated game. Some dress up asband members hoping to slipthrough the tunnel. Others wearface paint to blend in with otherstudent fans and dash into thegym when they think no guardsare watching. There are even the

PleaseturntopageA10

BY BEN COHEN

Want to See the Duke-UNC Game?Better Be Hiding in the RestroomNow

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Students Jump Through Hoops to SnagHot Seats; Sneaking In With the Band

Krzyzewskiville

Clocks Go ForwardMost of the U.S. and Canadaswitch to daylight-savingtime at 2 a.m. Sunday. Clocksmove ahead by one hour.Standard time returns Nov. 2.

The Bull Turns 5

The stock-market climb that beganafter the financial-crisis low onMarch 9, 2009, still has a longway to go to match other historicrallies, but has advanced at aspeedy clip.

The Wall Street Journal

500%

0

100

200

300

400

1 2 3 4 5 6 7 8 9 10 11 120YEAR

Rally startingMarch 2009Up 151%

OCTOBER1990

AUGUST1982

JUNE1949

AUGUST1921

Five largest Dow Jones IndustrialAverage rallies by percentage gain,trough to peak

Sources: WSJ Market Data Group; Ned Davis Research

1 2 3 4 50

Rally startingMarch 2009Up 151%

‘NO MARGIN OF SAFETY’: As investors celebrate, the rally is showingsome age. But investors can learn from the past five years. B1, B7, B14

Americans Return to Russia for Paralympic Games

UNFURLED: Flag-bearer Jonathan Lujan leads the Americans at the opening of the 2014 Paralympic WinterGames in Sochi on Friday. Ukraine made a statement by having only one athlete attend the ceremony.

orandum where Russia pledgedto respect Ukraine’s territorialintegrity when it gave up nuclearweapons in 1994, she noted. Bothcountries are now involved innuclear talks with Iran.

“We’re not just talking aboutstability in Ukraine and beyond,”Ms. Tymoshenko said in Dublin.“The precedent of empty guaran-tees would mean that such amechanism would lose credibilityand will have no value whatso-

PleaseturntopageA7

Former Ukrainian Prime Min-ister Yulia Tymoshenko, behindbars until a pro-Europe uprisingousted her political foe, Presi-dent Viktor Yanukovych, lastmonth, warned in an interviewthat the West was risking itscredibility by not taking moreforceful action to defendUkraine’s sovereignty.

The U.S. and the U.K. in par-ticular are guarantors to a mem-

MOSCOW—Russia used itsbiggest economic lever to ratchetup the pressure on Ukraine,threatening to cut off vital natu-ral-gas shipments over allegedlyunpaid bills. On the other side ofthe deepening East-West divide,the Pentagon said it had dis-cussed the possibility of closerties with Kiev for the first time.

The Kremlin also sent thestrongest signal yet that it ispreparing to absorb Ukraine’sCrimea region, welcoming itsseparatist leader to Moscow onFriday and endorsing his refer-endum drive.

By Paul Sonne,Andrey Ostroukhand Carol E. Lee

Moscow Tightens SqueezeOn Ukraine Over Energy

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Jobs reports keeps Fed on trackto pare its bond buying............ A2

Crimea’s financial woes weighon Kiev and Moscow.................. A7

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