Documents Show F.D.A.’s Failures in Meningitis Outbreak





Newly released documents add vivid detail to the emerging portrait of the Food and Drug Administration’s ineffective and halting efforts to regulate a Massachusetts company implicated in a national meningitis outbreak that has sickened nearly 500 people and killed 34.




In the documents, released on Tuesday in response to a Freedom of Information Act request, the agency would threaten to bring the full force of its authority down on the company, only to back away, citing lack of jurisdiction.


The company, the New England Compounding Center, at times cooperated with F.D.A. inspectors and promised to improve its procedures, and at other times challenged the agency’s legal authority to regulate it, refused to provide records and continued to ship a drug in defiance of the agency’s concerns.


Some of the documents were summarized last week by Congressional committees that held hearings on the meningitis outbreak. Republicans and Democrats criticized the F.D.A. for failing to act on information about unsafe practices at the company as far back as March 2002.


By law, compounding pharmacies are regulated primarily by the states, but the pharmacies have grown over the years into major suppliers of some of the country’s biggest hospitals. The F.D.A. is asking Congress for stronger, clearer authority to police them, but Republicans have said the agency already has enough power.


Records show that the agency was sometimes slow in pursuing its own inspection findings. In one case involving the labeling and marketing of drugs, the agency issued a warning letter to New England Compounding 684 days after an inspection, a delay that the company’s chief pharmacist complained was so long that some of the letter’s assertions no longer applied to its operations.


The agency said in a statement Wednesday that it “was not the timeline we strive for,” but that much of the delay was because of “our limited, unclear and contested authority in this area.” Because of litigation, it said, there was “significant internal discussion about how to regulate compounders.”


The agency first inspected the company in April 2002 after reports that two patients had become dizzy and short of breath after being injected with a steroid made by the company.


 On the first day of the inspection, Barry Cadden, the chief pharmacist, was cooperative, but the next day, the agency inspectors wrote, Mr. Cadden “had a complete change in attitude & basically would not provide any additional information either by responding to questions or providing records,” adding that he challenged their legal authority to be at his pharmacy at all.


The F.D.A. was back at New England Compounding in October 2002 because of possible contamination of another of its products, methylprednisolone acetate, the same drug involved in the current meningitis outbreak.


 While the F.D.A. had the right to seize an adulterated steroid, officials at the time said that action alone would not resolve the company’s poor compounding practices. In a meeting with Massachusetts regulators, F.D.A. officials left authority in the hands of the state, which “would be in a better position to gain compliance or take regulatory action,” according to a memo by an F.D.A. official summarizing the meeting.


 David Elder, compliance branch director for the F.D.A.’s New England District, warned at the meeting that there was the “potential for serious public health consequences if N.E.C.C.’s compounding practices, in particular those relating to sterile products, are not improved.”


 The company fought back hard, repeatedly questioning the F.D.A.’s jurisdiction. In a September 2004 inspection over concerns that the company was dispensing trypan blue, a dye used for some eye surgeries that had not been approved by the F.D.A., Mr. Cadden told the agency inspector that he had none in stock.


But in the clean room, the inspector noticed a drawer labeled “Trypan Blue,” which contained 189 vials of the medicine.


A few days later, Mr. Cadden was defiant. He told the agency that he was continuing to dispense trypan blue and that there was nothing in the law saying a compounder could not dispense unapproved products.


 The conversation turned testy. “Don’t answer any more questions!” Mr. Cadden told another pharmacy executive, according to the F.D.A.’s report.


Mr. Cadden rejected many of the assertions in the warning letter that finally came in December 2006. The next correspondence from the agency did not come until almost two years later, in October 2008, saying that the agency still had “serious concerns” about the company’s practices, and that failing to correct them could result in seizure of products and an injunction against the company and its principals.


It is not known whether any corrective actions were taken. The agency did not conduct another inspection until the recent meningitis outbreak.


Denise Grady contributed reporting.



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Recipes for Health: Apple Pear Strudel — Recipes for Health


Andrew Scrivani for The New York Times







This strudel is made with phyllo dough. When I tested it the first time, I found that I had enough filling for two strudels. Rather than cut the amount of filling, I increased the number of strudels to 2, as this is a dessert you can assemble and keep, unbaked, in the freezer.




Filling for 2 strudels:


1/2 pound mixed dried fruit, like raisins, currants, chopped dried figs, chopped dried apricots, dried cranberries


1 1/2 pounds apples (3 large) (I recommend Braeburns), peeled, cored and cut in 1/2-inch dice


1 tablespoon fresh lemon juice


2 tablespoons unsalted butter for cooking the apples


1/4 cup (50 grams) brown sugar


1 teaspoon vanilla


1 teaspoon cinnamon


1/2 teaspoon freshly grated nutmeg


1/4 cup (30 grams) chopped or slivered almonds


3/4 pound (1 large or 2 small) ripe but firm pears, peeled, cored and cut in 1/2-inch dice


For each strudel:


8 sheets phyllo dough


7/8 cup (100 grams) almond powder, divided


1 1/2 ounces butter, melted, for brushing the phyllo


1. Preheat the oven to 375 degrees. Line 2 sheet pans with parchment.


2. Place the dried fruit in a bowl and pour on hot or boiling water to cover. Let sit 5 minutes, and drain. Toss the apples with the lemon juice.


3. Heat a large, heavy frying pan over high heat and add 2 tablespoons butter. Wait until it becomes light brown and carefully add the apples and the sugar. Do not add the apples until the pan and the butter are hot enough, or they won’t sear properly and retain their juice. But be careful when you add them so that the hot butter doesn’t splatter. When the apples are brown on one side, add the vanilla, cinnamon, nutmeg and almonds, flip the apples and continue to sauté until golden brown, about 5 to 7 minutes. Stir in the pears and dried fruit, then scrape out onto one of the lined sheet pans and allow to cool completely. Divide into two equal portions (easiest to do this if you weigh it).


4. Place 8 sheets of phyllo dough on your work surface. Cover with a dish towel and place another, damp dish towel on top of the first towel. Place a sheet of parchment on your work surface horizontally, with the long edge close to you. Lay a sheet of phyllo dough on the parchment. Brush lightly with butter and top with the next sheet. Continue to layer all eight sheets, brushing each one with butter before topping with the next one.


5. Brush the top sheet of phyllo dough with butter. Sprinkle on half of the almond powder (50 grams). With the other half, create a line 3 inches from the base of the dough, leaving a 2 1/2-inch margin on the sides. Top this line with one portion of the fruit mixture. Fold the bottom edge of the phyllo up over the filling, then fold the ends over and roll up like a burrito. Using the parchment paper to help you, lift the strudel and place it on the other parchment-lined baking sheet. Brush with butter and make 3 or 4 slits on the diagonal along the length of the strudel. Repeat with the other sheets of phyllo to make a second strudel. If you are freezing one of them, double-wrap tightly in plastic.


6. Place the strudel in the oven and bake 20 minutes. Remove from the oven, brush again with butter, rotate the pan and return to the oven. Continue to bake for another 20 to 25 minutes, or until golden brown. Remove from the heat and allow to cool for at least 15 minutes. Serve warm or room temperature.


Yield: 2 strudels, each serving 8


Advance preparation: The fruit filling will keep for a couple of days in the refrigerator. The strudel can be baked a few hours before serving it. Recrisp in a medium oven for 10 minutes. It can also be frozen before baking, double-wrapped in plastic. Transfer directly from the freezer to the oven and add 10 minutes to the baking time.


Nutritional information per serving: 259 calories; 13 grams fat; 4 grams saturated fat; 3 grams polyunsaturated fat; 5 grams monounsaturated fat; 15 milligrams cholesterol; 34 grams carbohydrates; 4 grams dietary fiber; 91 milligrams sodium; 4 grams protein


Martha Rose Shulman is the author of “The Very Best of Recipes for Health.”


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H.P.’s Misstep Shows Risk in the Push for Big Ideas





When Hewlett-Packard spent roughly $10 billion on the software company Autonomy, it thought it was buying a slice of the future — investing in the hot trend of big data. But the deal turned out to be a debacle, and not only because H.P. wrote down $5 billion of the purchase.




The ill-fated marriage of the companies is a lesson for H.P. and other older technology giants as they throw billions at supposedly game-changing acquisitions, trying to gain a foothold in the future.


In that future, smartphones and tablets, connected to cloud-computing data centers, are the essential tools of work and play. Companies rent software over the air, rather than buying it with expensive maintenance contracts.


And vast streams of data are continually analyzed to find new patterns and make predictions about consumer behavior and product design. Autonomy, for instance, makes software that can analyze marketing patterns and advise a company on matters like where it should increase marketing resources.


These forces threaten older businesses, like H.P.’s traditional personal computer and data storage products. Other companies, like Oracle, Microsoft and Cisco, also face pressure. They are all trying to buy the future — and have the cash to do it.


In July, Microsoft decided to pay $1.2 billion for Yammer, which makes a Facebook-like social media product for the office. Oracle recently paid over $3.4 billion for two small cloud computing companies that provide software for human resources and sales management. Last Sunday, the computer networking giant Cisco agreed to pay $1.2 billion in cash for Meraki, a company that manages the free wireless service at Starbucks and other businesses.


There are lots more such deals, from these companies as well as I.B.M., SAP and others.


The pace of change is so fast that Google, so recently seen as an upstart and a giant killer, in 2011 paid $12.5 billion for Motorola Mobility to supercharge its Android smartphone business, which competes with Apple. Earlier this year, Facebook spent $750 million on Instagram so it wouldn’t miss the next thing in social media.


But identifying the next big thing can be difficult, said Jeffrey Sonnenfeld, a professor of management at Yale University. Likely as not, he said, deals like the one for Autonomy have “maybe a 40 percent success, 60 percent failure rate.”


He added, “The odds are against you succeeding, but the odds are also worth taking.”


The real hazard, he said, is in the way companies describe these acquisitions as “natural, inevitable victories.” They should be seen, he said, as “an investment, like in research and development.”


The pace of acquisitions hardly matches the level seen during the late ’90s Internet bubble, when Cisco paid $9.6 billion for three networking companies that former officials said yielded almost no benefit. In 2002, AOL Time Warner wrote down $54 billion in good will related to its troubled merger. Several telecommunications equipment makers and service providers also had multibillion-dollar write-downs.


But there are also notable successes.


EMC, a maker of data storage equipment, paid $625 million in 2003 for VMWare, which makes some of the critical technology in cloud computing. Today, after taking some of the company public, EMC’s stake is worth about $30 billion. VMWare recently took a gamble of its own, buying a next-generation networking company, Nicira, that had virtually no revenue, for $1.26 billion.


Microsoft, which also paid $8.5 billion for Skype in 2011, said Yammer was being integrated into SharePoint, Microsoft’s successful collaboration software, and will be included in its premium version of Office communications and productivity software at no cost. It did not say whether, or how, Yammer would be profitable on its own, however.


The real issue with Autonomy may be less its questionable sales than its core technology, said Leslie Owens, who follows data analysis software at Forrester Research.


“H.P. thought it was an entirely new platform, but Autonomy’s clients said it wasn’t as good as Google’s corporate search product,” she said.


Autonomy, which was founded 16 years ago, “was based on using powerful algorithms,” she said, but the software was not attuned “to new kinds of search signals, like what your friends are doing, what people like you are doing, what other data you might draw off on.” Over time those new methods attracted customers.


In a demonstration of the Autonomy product last month, H.P. appeared to have addressed some of those issues, but others remained. An application to help figure out what to pay for Web ads initially failed to work, then delivered results that appeared similar to those of several other search products.


“We remain 100 percent committed to Autonomy and its industry-leading technology,” H.P. said in a statement. “The company’s products are cutting-edge and provide many customers with unique solutions.”


In an interview Tuesday, Meg Whitman, the chief executive of H.P., indicated that the company also had strong hopes for its security software, most of which it got from other acquisitions.


H.P. has accused Autonomy of improperly accounting for much of its sales in the years before H.P. bought the company last year. It took a $5 billion noncash charge related to the purchase price.


Ms. Whitman gave Autonomy tepid support.


“It’s very disappointing,” she said of the write-down. “We’ve integrated the technology into a couple of places; we will integrate it into more.”


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Israel and Hamas Maintain Cease-Fire, After Push by the U.S. and Egypt





CAIRO — A cease-fire agreed to under intense Egyptian and American pressure between Israel and the Palestinian militant group Hamas to halt eight days of bloody conflict seemed to be holding on Thursday, averting a full-scale Israeli ground invasion of the Gaza Strip without resolving the underlying disputes.




With Israeli forces still massed on the Gaza border, a tentative calm in the fighting descended after the agreement was announced on Wednesday night. Some of the tens of thousands of Israeli reservists called up during the conflagration appeared to be making preparations on Thursday to redeploy away from staging areas along the Gaza border where the Israeli military had mounted a buildup of armor and troops.


The success of the truce will be an early test of how Egypt’s new Islamist government might influence the most intractable conflict in the Middle East.


In southern Israel, the target of more than 1,500 rockets fired from Gaza over the past week, wary residents began to return to routine. But schools within a 25-mile radius of the Palestinian enclave remained closed and thousands of soldiers, mobilized for a possible ground invasion, remained along the Gaza border. The military said that a decision regarding the troop deployment would be made after an assessment of the situation later Thursday.


A rocket alert sounded at the small village of Nativ Haasara near the border with Gaza on Thursday morning, sending residents skeptical from the start about the cease-fire running for shelter. The military said the alert had been a false alarm.


In Gaza, traffic returned to streets that had been deserted, stores and markets opened and workers began the huge task of cleaning up the debris left by days of aerial and naval bombardment. Thousands of Palestinians demonstrated in Gaza in support of the cease-fire as the Hamas leadership emerged from the fighting claiming victory.


Israel Radio said a dozen rockets were fired from Gaza in the first few hours of the cease-fire, but Israeli forces did not respond. In the rival Twitter feeds that offered a cyberspace counterpoint to the exchanges of airstrikes and rockets, the Israel Defense Forces said they had achieved their objectives while the armed Al Qassam Brigades in Gaza said Israeli forces had “raised the white flag.”


After more than a week of nights punctuated by the crash of bombardment and the sound of outgoing missiles, reporters in Gaza said the night had been quiet.


At the same time, Israeli security forces said on Thursday that they detained 55 Palestinian militants in the West Bank after earlier confrontations. The army said the detentions were designed to “continue to maintain order” and to “prevent the infiltration of terrorists into Israeli communities.”


The United States, Israel and Hamas all praised Egypt’s role in brokering the cease-fire as the antagonists pulled back from violence that had killed more than 150 Palestinians and five Israelis over the past week. The deal called for a 24-hour cooling-off period to be followed by talks aimed at resolving at least some of the longstanding grievances between the two sides.


Gazans poured into the streets declaring victory against the far more powerful Israeli military. In Israel, the public reaction was far more subdued. Many residents in the south expressed doubt that the agreement would hold, partly because at least five Palestinian rockets thudded into southern Israel after the cease-fire began.


The one-page memorandum of understanding left the issues that have most inflamed the tensions between the Israelis and the Gazans up for further negotiation. Israel demands long-term border security, including an end to Palestinian missile launching over the border. Hamas wants an end to the Israeli embargo.


The deal demonstrated the pragmatism of Egypt’s new Islamist president, Mohamed Morsi, who balanced public support for Hamas with a determination to preserve the peace with Israel. But it was unclear whether the agreement would be a turning point or merely a lull in the conflict.


The cease-fire deal was reached only through a final American diplomatic push: Secretary of State Hillary Rodham Clinton conferred for hours with Mr. Morsi and the United Nations secretary general, Ban Ki-moon, at the presidential palace here. Hanging over the talks was the Israeli shock at a Tel Aviv bus bombing on Wednesday — praised by Hamas — that recalled past Palestinian uprisings and raised fears of heavy Israeli retaliation. After false hopes the day before, Western and Egyptian diplomats said they had all but given up hope for a quick end to the violence.


David D. Kirkpatrick reported from Cairo, and Jodi Rudoren from Gaza. Reporting was contributed by Fares Akram from Gaza, Isabel Kershner and Ethan Bronner from Jerusalem, Mayy El Sheikh from Cairo, Rick Gladstone from New York, and Alan Cowell from Paris.



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Blue Laws Curb Consumerism Where Pilgrims Gave Thanks


Charlie Mahoney for The New York Times


The annual Thanksgiving celebration in Plymouth, Mass., is held the weekend before the holiday, so as not to interfere.







PLYMOUTH, Mass. — Here in the birthplace of Thanksgiving, where the Pilgrims first gave thanks in 1621 for their harvest and their survival, some residents are giving thanks this year for something else: the Colonial-era blue laws that prevent retailers from opening their doors on the fourth Thursday of November.








Charlie Mahoney for The New York Times

Participants in Saturday's town parade.






While shoppers in the rest of the country will skip out on Thanksgiving to go to Walmart or Kmart or other big-box stores, William Wrestling Brewster, whose ancestors arrived on the Mayflower and participated in that first Thanksgiving, will limit his activities to enjoying a traditional meal here with his extended family at his parents’ house.


“Thanksgiving is supposed to be about giving thanks for all you have,” said Mr. Brewster, 47, who runs a computer repair business. “I cringe to think what society is doing to itself,” he said of the mercantile mania that threatens one of the least commercial holidays.


Some of the nation’s biggest retailers — Sears, Target and Toys “R” Us among them — announced this month that they would be moving up their predawn Black Friday door-buster sales to Thanksgiving Day or moving up their existing Thanksgiving sales even earlier on Thursday. Walmart, which has already been open on Thanksgiving for many years, is advancing its bargain specials to 8 p.m. Thursday from 10 p.m.


But in Maine, Massachusetts and Rhode Island, the stores will sit dark until the wee hours of Friday. Even Walmart will not open in Maine until just after midnight Friday or in Massachusetts or Rhode Island until 1 a.m.


New England’s blue laws were put down by early settlers to enforce proper behavior on Sundays. (The origin of the term is unclear. Some have said the laws were printed on blue paper, while others have said the word “blue” was meant to disparage those like the “blue noses” who imposed rigid moral codes on others.)


Over decades, many of those laws — which banned commerce, entertainment and the sale of alcohol, among other things — were tossed aside or ignored, or exemptions were granted. In some cases, the statutes were extended to holidays and barred retailers specifically from operating on Thanksgiving or Christmas.


Maine granted an exception to L. L. Bean, whose store in Freeport is open around the clock every day, including Christmas. When the blue laws, which had faded, were revived in the 1950s, the store in Freeport was already operating 24/7, said Carolyn Beem, a spokeswoman. She said that the store, which originally catered to hunters and fishermen who shopped at odd hours, was grandfathered in and allowed to stay open on the holidays.


Nationwide, a protest is developing against Thanksgiving Day sales. Workers at some stores have threatened to strike, saying the holiday openings were disrupting their family time. Online petitions have drawn hundreds of thousands of signatures protesting the move. The stores say that many of their workers have volunteered to work on the holiday, when they will get extra pay, and that consumers wanted to shop early. It is not yet clear what effect the protests might have.


At the same time, this corner of New England is serving as something of a bulwark against the forces of commercialism.


Even the Retailers Association of Massachusetts is treading gently on the notion of Thanksgiving sales.


“There hasn’t been any outcry from our members over the years pushing this,” said Bill Rennie, vice president of the association.


But, as Thanksgiving shopping becomes more common, he said, “it may be time to have a discussion about it.”


Blue laws seem anachronistic when people can shop anytime online, he said.


There is also the case of simple economics. These states are already at risk of losing sales to stores in New Hampshire, which has no sales tax. Now, Mr. Rennie pointed out, they could lose even more in the holiday bargain rush when stores in New Hampshire are open and stores here are closed.


Still, Barry Finegold, a Massachusetts state senator whose district abuts New Hampshire, said that so far, none of the retailers in his district had asked for a change in the law.


This article has been revised to reflect the following correction:

Correction: November 20, 2012

An earlier version of this article misstated William Wrestling Brewster’s occupation. He runs a computer repair business, not a computer store.



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Well’s Vegetarian Thanksgiving 2012






Every fall, Well goes vegetarian for Thanksgiving, taking the meaty bird off the table to make room for a spectacular array of vegetarian soups, sides, main courses, salads and desserts. So get ready to save a turkey and savor the flavors of the fall harvest.
Every day until Thanksgiving, we will add more vegetarian recipes for your holiday table. Click on a photo to learn more about each recipe.





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Well’s Vegetarian Thanksgiving 2012






Every fall, Well goes vegetarian for Thanksgiving, taking the meaty bird off the table to make room for a spectacular array of vegetarian soups, sides, main courses, salads and desserts. So get ready to save a turkey and savor the flavors of the fall harvest.
Every day until Thanksgiving, we will add more vegetarian recipes for your holiday table. Click on a photo to learn more about each recipe.





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For Web Images, Creating New Technology to Seek and Find





STANFORD, Calif. — You may think you can find almost anything on the Internet.




But even as images and video rapidly come to dominate the Web, search engines can ordinarily find a given image only if the text entered by a searcher matches the text with which it was labeled. And the labels can be unreliable, unhelpful (“fuzzy” instead of “rabbit”) or simply nonexistent.


To eliminate those limits, scientists will need to create a new generation of visual search technologies — or else, as the Stanford computer scientist Fei-Fei Li recently put it, the Web will be in danger of “going dark.”


Now, along with computer scientists from Princeton, Dr. Li, 36, has built the world’s largest visual database in an effort to mimic the human vision system. With more than 14 million labeled objects, from obsidian to orangutans to ocelots, the database has because a vital resource for computer vision researchers.


The labels were created by humans. But now machines can learn from the vast database to recognize similar, unlabeled objects, making possible a striking increase in recognition accuracy.


This summer, for example, two Google computer scientists, Andrew Y. Ng and Jeff Dean, tested the new system, known as ImageNet, on a huge collection of labeled photos.


The system performed almost twice as well as previous “neural network” algorithms — software models that seek to replicate human brain functions.


Nor are the Google researchers the only ones who have used the ImageNet database to test their algorithms; since 2009, more than 300 scientific publications have used or cited it.


Computer vision is one of the thorniest problems facing designers of artificial intelligence and robots. A huge portion of the human brain is devoted to vision, and scientists are still struggling to unlock the biological mechanisms by which humans learn to recognize objects. “My dream has long been to build a vision system that recognizes the world the way that humans do,” said Dr. Li, whose Princeton colleague is the computer scientist Kai Li (they are not related).


When she began to assemble her system in 2007, Fei-Fei Li said, the only alternatives were “toy” research databases that recognized only a handful of types of objects. The challenge was how to increase the scale of the system to bring it closer to human capabilities, especially amid the rising torrent of online images.


“In age of the Internet, we are suddenly faced with an explosion in terms of imagery data,” she said. “Facebook has 200 billion images, and people are now uploading 72 hours of new video every minute on YouTube.”


Dr. Li did a quick back-of-envelope calculation and determined that if she gave the task to one of her graduate students, it could take decades.


Luckily, while the Internet has given rise to a mountainous digital haystack of imagery, it also offers a path to clarity.


Dr. Li realized that Mechanical Turk, the Amazon.com system for organizing thousands of humans to do small tasks like describing the contents of a picture, was the perfect way to assemble her database.


Using available university research funds, the ImageNet visual database project has now become the world’s largest academic user of Mechanical Turk workers, who are known as “turkers.” Each year, ImageNet employs 20,000 to 30,000 people who are automatically presented with images to label, receiving a tiny payment for each one.


The average turker can identify about 250 images in five minutes. The ImageNet database now has 14,197,122 images, indexed into 21,841 categories.


“Its size is by far much greater than anything else available in the computer vision community, and thus helped some researchers develop algorithms they could never have produced otherwise,” said Samy Bengio, a Google research scientist.


He added that ImageNet was not perfect. To organize the vast collection of images, Dr. Li uses WordNet, a database of English words designed by the Princeton psychologist George A. Miller, who died in July at 92. For Dr. Bengio, its categories are a little too elevated.


“I would have preferred if the categories chosen in ImageNet were more reflecting the distribution of interests of the population,” he said. “Most people are more interested in Lady Gaga or the iPod Mini than in this rare kind of diplodocus.”


Still, the project goes on. Jia Deng, one of Dr. Li’s graduate students, has developed an image classifier he jokingly calls infallible. Because WordNet is organized as a hierarchy of categories, the software can simply choose a level of abstraction where it has a very high probability of being correct: if it is not sure a given picture shows a rabbit, for instance, it goes to the next level (mammals) or the one above that (animals).


At one of those levels, it will almost certainly not be wrong. And Dr. Li says she expects further advances that allow ever more accuracy.


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Fighting Continues as U.S. Seeks Truce in Gaza





JERUSALEM — To a backdrop of airstrikes and mounting casualties, American efforts to negotiate a cease-fire in the latest Gaza fighting between Israel and Hamas continued on Wednesday but the struggle to achieve even a brief pause in the fighting emphasized the obstacles to finding any lasting solution.




Israeli airstrikes overnight continued into Wednesday morning, hitting government buildings, the smuggling tunnels under the southern Rafah border crossing and a bridge on the beach road that is one of three linking Gaza City to the central area of the strip. The Hamas health ministry said the Palestinian death toll stood at 140 at noon, with 1,100 injured. At least a third of those killed are believed to have been militants.


The eight-day conflict in the Gaza Strip also appeared to have spilled onto the streets of Tel Aviv on Wednesday, with what the police described as a bomb blast aboard a civilian bus. Eleven people were injured, one of them seriously.


The latest exchanges, which included the interception of at least two rockets fired from Gaza, came as Secretary of State Hillary Rodham Clinton held talks with Palestinian leaders in the West Bank and Israeli leaders in Jerusalem. She flew on Wednesday to Cairo where Egyptian-brokered cease-fire talks have been inconclusive.


Around noon on Wednesday in the Gaza Strip, according to the Hamas government media office, a bomb hit the house of Issam Da’alis, an adviser to Ismail Haniya, the Hamas prime minister. The house had been evacuated. Earlier, a predawn airstrike near a mosque in the Jabaliya Refugee Camp killed a 30-year-old militant, a spokesman said, and F-16 bombs destroyed two houses in the central Gaza Strip.


There were 23 punishing strikes against the southern tunnels that are used to bring weapons as well as construction material, cars and other commercial goods into Gaza from the Sinai Peninsula.


Within Gaza City, Abu Khadra, the largest government office complex, was obliterated overnight. Damage was also caused to shops, including two banks and a tourism office, and electricity cables fell on the ground and were covered in dust.


Separately, an F-16 bomb created a 20-foot crater in an open area in a stretch of hotels occupied by foreign journalists. Several of the hotels had windows blown out by the strike around 2 a.m., but no one was reported injured. By morning, the hole in the ground had filled with sludgy water, apparently from a burst pipe, appearing almost like a forgotten swimming hole with walls made of sand and cracked cinder block.


Surveying damage near a government complex, Raji Sourani of the Palestinian Center for Human Rights said Gaza civilians were “in the eye of the storm,” and accused Israel of “inflicting pain and terror” on them. Israeli officials accuse Hamas of locating military sites in or close to civilian areas.


Overnight, as the conflict entered its eighth day, the Israeli military said in Twitter posts that “more than 100 terror sites were targeted, of which approximately 50 were underground rocket launchers.” The targets included the Ministry of Internal Security in Gaza, described as “one of the Hamas’ main command and control centers.”


While there was no immediate or formal claim of responsibility for the bus bombing in Tel Aviv, a message on a Twitter account in the name of the Al Qassam Brigades, the armed wing of the Hamas authorities in the Gaza Strip, declared: “We told you IDF that our blessed hands will reach your leaders and soldiers wherever they are, ‘You opened the Gates of Hell on Yourselves.’ ” The letters I.D.F. refer to the Israel Defense Forces.


On several occasions since the latest conflagration seized Gaza last week, militants have aimed rockets at Tel Aviv but they have either fallen short, landed in the sea or been intercepted. Hundreds of rockets fired by militants in Gaza have struck other targets.


But the bombing seemed to be the first time in the current fighting that violence had spread directly onto the streets of Tel Aviv.


On Tuesday — the deadliest day of fighting in the conflict — Mrs. Clinton arrived hurriedly in Jerusalem and met with Prime Minister Benjamin Netanyahu of Israel to push for a truce. Her planned visit to Cairo on Wednesday to consult with Egyptian officials in contact with Hamas placed her and the Obama administration at the center of a fraught process with multiple parties, interests and demands.


Before leaving for Cairo, news reports said, Mrs. Clinton headed to the West Bank to meet Mahmoud Abbas, the head of the Palestinian Authority, which is estranged from the Hamas rulers of the Gaza Strip and has increasingly strained ties with Israel over a contentious effort to upgrade the Palestinian status at the United Nations to that of a nonmember state. Mrs. Clinton was to meet again with Mr. Netanyahu before heading for Egypt, the reports said.


Mr. Abbas’s faction is favored by the United States, but it is not directly involved in either the fighting in Gaza or the effort in Cairo to end it. Like Israel and much of the West, the United States regards Hamas as a terrorist organization.


Officials on all sides had raised expectations that a cease-fire would begin around midnight, followed by negotiations for a longer-term agreement. But by the end of Tuesday, officials with Hamas, the militant Islamist group that governs Gaza, said any announcement would not come at least until Wednesday.


Ethan Bronner reported from Jerusalem, and David D. Kirkpatrick from Cairo. Reporting was contributed by Jodi Rudoren and Fares Akram from Gaza; Isabel Kershner from Jerusalem; Alan Cowell from London; Peter Baker from Phnom Penh, Cambodia; David E. Sanger and Mark Landler from Washington; Andrea Bruce from Rafah; and Rick Gladstone from New York.



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Tax Talks Raise Bar for Richest Americans


By most measures, the personal finances of Anne Zimmerman, a small-business owner in Cincinnati, have little in common with those of Oracle’s chief executive, Lawrence J. Ellison.


Ms. Zimmerman runs an accounting business and a cloud-based Internet service company with combined annual profit of $250,000 to $500,000 in recent years. Mr. Ellison made nearly $15 million in salary, bonuses and perks in 2011, even without the $62 million he received in stock options from Oracle.


In the deficit reduction debate now consuming Washington, however, both Mr. Ellison and Ms. Zimmerman are grouped in the same, sprawling category: wealthy Americans targeted for tax increases.


President Obama has focused efforts on raising revenue from the wealthiest 2 percent of taxpayers — individuals earning more than $200,000 a year and families with adjusted gross incomes above $250,000 — calling them “millionaires and billionaires who can afford to pay a little more.” Republicans have thus far resisted those efforts, countering that the high earners are job creators and that increasing their taxes would discourage hiring.


But for all the broad brush rhetoric of political debate, the rate increases and limits on deductions now being discussed by the president and Congressional Republicans are calibrated to take the biggest bite out of the highest earners. They would lead to a smaller increase for those who earn less than $500,000 a year. The figures are all adjusted gross incomes, and since some deductions would be preserved, a household would probably have more than $250,000 in total income, perhaps $300,000, before it would fall into the wealthy definition used by the president.


If all Mr. Obama’s tax proposals for wealthy Americans were enacted, they would raise $1.6 trillion over the next decade. And an analysis by the Tax Policy Center, a nonpartisan research firm, found that the increases would be heavily weighted toward the wealthiest. Taxpayers with adjusted gross incomes over $1 million would see average increases of $184,504, the study found, with higher taxes on the ultrawealthy bloating that average. Those with adjusted gross incomes from $200,000 to $500,000 would face a tax increase averaging $4,446, with people toward the lower end having only a modest increase and people on the higher end paying several times more.


A married couple with two children earning $300,000 would see its effective tax rate increase to 21.1 percent from 16.5 percent, according to an analysis by the Tax Policy Center. A married couple with two children earning $2 million would see its effective federal income tax rate rise to 26.8 percent from 21.6 percent.


To Ms. Zimmerman, the Cincinnati businesswoman, that amount sounds reasonable.


“I’m not going to change my business decision-making process based on a few percentage points of tax increases,” she said. “If it helps get the country on a better path, well, we’re all in this together.”


But some conservatives and business advocates warn that the proposed increases could stall the sluggish economic recovery.


“There is a price that comes with these tax increases on the very wealthiest because that is where the capital is concentrated,” said William McBride, chief economist at the Tax Foundation, a conservative research firm. “That price is economic growth and hiring.”


About four million of the 114 million American households face a possible tax increase. And while they are a narrow slice of the overall population, they are nonetheless a swath of well-to-do Americans so varied that they defy easy categorization. Census data indicates that they cut across a broad range of occupations: doctors, auto dealers and dilettantes, professional athletes and financial planners, family farmers, entrepreneurs, two-income couples, corporate executives and hedge fund managers.


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