Top Banner

of 40

The Jere Beasley Report, Jan. 2010

Jun 01, 2018

Download

Documents

Beasley Allen
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
  • 8/9/2019 The Jere Beasley Report, Jan. 2010

    1/40

    @lstrlhuto` tg gvor ?8,>>> suhsirlhors oeib agdtb

    www.HoesfoyEffod.iga

    Keduery 8>5>

  • 8/9/2019 The Jere Beasley Report, Jan. 2010

    2/408 www.HoesfoyEffod.iga

    L.IE^LPGFGHYOXSEPLGDY

    I FLAEPO I BEDMO ED@ P BO Y ̂OILEF L DPOXOYPY

    Lt ls slapfy eaezldm tbet tbo foe`or-sblp gc tbo Detlgdef Xopuhflied ^ertyed` e duahor gc spoilef ldtorosts rocusotg eijdgwfo`mo iflaeto ibedmo esholdm e agst sorlgus tbroet cgr effdetlgds. Lt ls ospoileffy trguhfldm tgboer porsgds wbg esplro tg bgf` blmbgcclio gd tbo detlgdef fovof ld tblsigudtry, ed` wbg `gd“t bevo e ifuo,

    kgld tbo deyseyors. ]o ieddgt eccgr` tglmdgro tbls agudtldm prghfoa edyfgdmor ed` aust tejo eff stops doios-sery tg rovorso tbo occoits gc iflaetoibedmo tbet bevo efroe`y giiurro` ed`tbod wgrj tgwer` sgfvldm tbo prghfoacgr cuturo modoretlgds.

    L DY_XEDIO I GA^EDLOY ED@ H LM ^ BEXAE

    Es tbo `oheto ld Igdmross mots `gwdtg tbo flij-fgm lt ls qulto ovl`odt tbettbo ldsuredio ed` pberaeioutliefld`ustrlos bevo wgrjo` ber` tg prgtoittbolr turc ed` bevo sbgwd dg roefigdiord cgr tbo alfflgds gc Eaorliediltlzods wbg bevo dg boeftb ldsuredio.Doltbor `g tboso pgworcuf ld`ustrlosiero ehgut tbo udroesgdehfy blmb igstsgc boeftb iero ld tbls igudtry. Et tbogutsot gc tbls `oheto, L coft tbet tbo twgghkoitlvos cgr roef rocgra be` tg hoevelfehlflty gc boeftb ldsuredio ed`ro`uildm boeftb iero igsts cgr eff Eaorl-ieds. Hut tbgso prlgrltlos bevod“t romls-toro` wltb tbo fghhylsts cgr tboso twgpgworcuf spoilef ldtorosts. Pbo Yodetoed` Bguso bevo pesso` sopereto hlffstbet wlff ho wgrjo` gut ld e igdcorodioigaalttoo. Bgpocuffy, tbo cldef boeftbiero hlff tbet mgos tg tbo ^rosl`odt cgrbls slmdeturo wlff ho roef boeftb ierorocgra, ed` dgt kust e hlff tbet hodocltstbo ldsuredio ld`ustry ed` hlm ^erae. Lctbet beppods lt wlff ho e troaod`guseiigapflsbaodt cgr tbo ^rosl`odt ed`Igdmross.

    ^ _HFLI I LPL[OD ] GXJY B EX@ C GX I GDY_AOXY

    ^uhfli Iltlzod bes hood wgrjldm ber`cgr igdsuaors gd aedy crgdts, ldifu`-ldm boeftb iero ed` rofeto` lssuos. Lt“sirltlieffy lapgrtedt tg bevo roflehfoldcgraetlgd ehgut tbo prosirlptlgd`rums ygu ed` ygur fgvo` gdos tejo.

    ]bod lt igaos tg ygur boeftb, lt“s wbet ygu `gd“t jdgw tbe t ied burt ygu.^uhfli Iltlzod bes cgumbt gvor tbo yoerstg bofp igdsuaors. ]bod ygu igdsl`ortbo cgffgwldm, lt“s ghvlgus cgfjs doo`bofp ld tbo gdmgldm hettfo tg aejo tbopberaeioutlief ld`ustry `g rlmbt.• 5>>,>>> pogpfo `lo oeib yoer crga

    e`vorso `rum roeitlgds crga aer-joto` `rums ed` edgtbor 8 alfflgdpogpfo ero sorlgusfy ldkuro`, wltb 5.?alfflgd gc tbgso roqulrldm bgsplteflze-

    tlgd.• Fest yoer tbo `rum ld`ustry mevo gvor

    $?>> alfflgd tg tbo `rum `lvlslgd gctbo Cgg` ed` @rum E`aldlstretlgd es‖usor coos,‑ agst gc wblib pel` cgrtbo igst gc rovlowldm dow `rums. Pblsls ed ghvlgus igdcflit gc ldtorost ed`sbguf`d“t ho tgforeto`.

    • Yldio tbo Igdmrosslgdeffy-aed`eto`‖usor coos‑ woro put ldtg pfeio ld5

  • 8/9/2019 The Jere Beasley Report, Jan. 2010

    3/40

  • 8/9/2019 The Jere Beasley Report, Jan. 2010

    4/400 www.HoesfoyEffod.iga

    B.X. 090> wlff flalt oflmlhlflty tg husl-dossos tbet oapfgy cowor tbed 5>>>

    wgrjors ed` wbgso iurrodt cldedilefigd`ltlgd aejos lt fljofy tbet tboy wlffbevo tg aejo feygccs. Oflmlhfo husl-dossos wlff efsg bevo tg `oagdstreto edehlflty tg ropey tbo fged. E husldoss aeyuso tbo cud`s tg cldedio tbo igst gcgporetlgds, hut aey dgt uso tbo cud`s

    tg oxped` gporetlgds. Pbo aexlauafged eagudt wguf` ho $5 alfflgd, ldemmrometo, ld edy clsief yoer ed` tbo`uretlgd gc tbo rovgfvldm fged prgmrea

    wguf` ho tbroo yoers crga tbo odeit-aodt gc tbo Eit. Pbo hlff sbguf` hopesso` wltbgut `ofey sg tbet saeff husl-dossos ied mot sgao he`fy-doo`o` bofp.Lc ygu emroo, igdteit gtbor aoahors gctbo Bguso es woff es ygur _.Y. Yodetgrsed` esj tboa tg suppgrt tbo hlff.

    LL.@X_MAED_CEIP_XOXYCXE_@ FLPLMEPLGD

    ED _ ̂ @EPO G D P BO A O@LIEL@ C XE_@ FLPLMEPLGD

    Es wo bevo provlgusfy ropgrto`, gurclra iurrodtfy roprosodts sovod stetos

    wboro wo bevo pod`ldm Ao`lie l`creu` fewsults. E``ltlgdeffy, tboro erosovoref gtbor stetos wltb wbga wo eroigdsuftldm gd lssuos rofetldm tg tblsgdmgldm fltlmetlgd. Ldtorostldmfy‐ed`igdtrery tg tbo `rum aeduceituror“soxpoitetlgds‐tbo auib-irltlilzo`

    Efeheae Yuproao Igurt gpldlgd gdtbo Ao`liel` creu` lssuos (iurrodtfy gdroboerldm) bes ceffod gd `oec oers ldgtbor steto ed` co`oref igurts. Pbus cerdg steto gr co`oref igurt bes mlvod edy

    `ocorodio et eff tg tbo Efeheae gpldlgd.Ld ceit, gdo steto igurt ku`mo iga-aodto`;

    @gos lt eppoer tbet tbo EfeheaeYuproao Igurt heslieffy suhstl- tuto` lts ku`maodt cgr tbet gc tbo

    kury gd tbo ceituef lssuos7

    Igaaodts hy Ku`mo Xgmor F. Irlt-tod`od, Credjfld Ilriult Igurt ldJodtuijy es bo `lsromer`o` tbo

    Efeheae gpldlgd ed` ecclrao` e vor`lit emeldst Yed`gz, Ldi., cgr$8=.= alfflgd cgr tbo Yteto gc Jod-tuijy. (Gitghor 8>>5>. ]o bevo

    edgtbor trlef ld tbo Yteto gc Bewellemeldst Ayfed ^beraeioutliefs ld Kudogc 8>5> ed` ld tbo Yteto gc Alsslsslppl

    wo bevo ]etsgd, Yed`gz, Ehhgtt, Ayfeded` Cgrost sot cgr trlef ld @oioahor8>5>. Gtbor trlef `etos wlff ho sot ld tboYtetos gc Efeheae, Efesje, Ygutb Ierg-flde, ed` _teb.

    Gd tbo sottfoaodt crgdt, wo bevoroiodtfy el`o` Alsslsslppl EttgrdoyModoref Kla Bgg` ld sottfldm wltb `rumaeduceituros Hextor, Hgobrldmor Ldmof-bola ed` Eamod/Laaudox cgr gvor$59.0 alfflgd `gffers. Pbls hrldms Alssls-slppl“s tgtef sottfoaodt eagudt tg `etoup tg $82.0 alfflgd `gffers. ]o ero igd-tlduldm tg pursuo gtbor sottfoaodts

    wltb `rum igapedlos ld tbo Yteto gcAlsslsslppl.

    Pboro ero gtbor sottfoaodt `lsius-slgds pod`ldm ld gtbor stetos tbet erodgt yot rlpo cgr puhfli eddgudioaodt.

    ]o wlff joop gur roe`ors pgsto` gdedy sottfoaodt dows es lt tejos pfeio.

    Lt ls agst udcgrtudeto tbet tbo pogpfogc tbo Yteto gc Efeheae bevo tg wltdossgtbor stetos roclff tbolr igccors wltb sot-tfoaodt cud`s es e rosuft gc creu`ufodtigd`uit hy tbo pberaeioutlief ld`us-try ed` roeflzo tbet gur Yuproao Igurtbes sl`o` wltb tbo `rum igapedlos.

    Pbet aoedt Efeheae `l`d“t roiolvosgao $8=0 alfflgd cgr lts stervldm stetohu`mots. Pbls alsso` gppgrtudlty wlffgdfy wgrsod ld gur steto udfoss tbo Kus-tlios wltb`rew tbo iurrodt gpldlgd ed`lssuo ed gpldlgd ecclraldm wbet tbroo

    ku rlos bevo ef roe`y `o il `o`‐tbet Efeheae ls gwo` $8=0 alfflgd `gffershy pberaeioutlief igapedlos Estre-[odoie, MfexgYaltbJfldo, ed` Dgvertls.L esj tbls quostlgd; bgw ied tboigd`uit gc e `rum igapedy fljo Estre-

    [odoie ho igdsl`oro` creu` ld tboirlaldef igurts ed` lt dgt ho ilvlf creu`ld Efeheae7 @g ygu hoflovo e igapedytbet wes dgt mulfty gc Ao`liel` creu`

    wguf` pfoe` mulfty ed` pey e cldo tg tboco`oref mgvordaodt gc $?=> alfflgd7

    I EFLCGXDLE Y OPPFOY $85.9 A LFFLGD A O@LIEL@ C XE_@ Y _LP ] LPB Y IBOXLDM - ^ FG_MB

    Ieflcgrdle Ettgrdoy Modoref O`aud`

    M. Hrgwd Kr. eddgudio` e $85.9 alfflgdsottfoaodt fest agdtb wltb Yiborldm-^fgumb Igrpgretlgd, rosgfvldm effome-tlgds tbo mledt `rum aeduceituror‖`oflhoretofy ldcfeto`‑ tbo prlio gc Efh-utorgf ed` gtbor `rums, ieusldm Ieflcgr-dle“s Ao`liel` (Ao`l-Ief) prgmrea tggvorpey alfflgds gc `gffers ld pberaeiyrolahursoaodts. Efhutorgf ls e wl`ofy-prosirlho` modorli `rum, `oflvoro`tbrgumb ldbefors, dohuflzors ed` aesjs,ed` ls uso` tg troet estbae ed` gtborhroetbldm prghfoas. Ettgrdoy ModorefHrgwd be` tbls tg sey;

    ]ltb boeftbiero igsts splrefldmgut gc igdtrgf, lt“s udigdsilgdehfotbet e Cgrtudo ?>> pberaeioutl- ief igapedy `oflhoretofy ldcfeto`lts `rum prlios tg iboet Ieflcgr- dle“s puhfli boeftbiero systoa gutgc alfflgds gc `gffers. Pbls ls eigapedy tbet ae`o agro tbed$58 hlfflgd ld prgclts fest yoer, yot

  • 8/9/2019 The Jere Beasley Report, Jan. 2010

    5/40 www.KoroHoesfoyXopgrt.iga ?

    stlff rel`o` tbo pgijots gc Ieflcgr- dle texpeyors.

    Pbo sottfoaodt stoas crga e fewsultclfo` ld Ieflcgrdle emeldst sovoref pber-aeioutlief igapedlos eiiuso` gc Ao`-liel` creu`. Ieflcgrdle“s ieso ls stlffpod`ldm emeldst @oy, Ldi., Ayfed ^ber-aeioutliefs, Ldi., Yed`gz, Ldi. ed` tbolr

    perodt igapedlos. Yiborldm-^fgumbroiodtfy aormo` wltb Aorij, ed` lsdgw jdgwd es Aorij & Ig. Ieflcgrdle“s$85.9 alfflgd emrooaodt ls gdo gc tbroosottfoaodts domgtleto` wltb Yiborldm-^fgumb, igffoitlvofy tgtefldm $3<alfflgd, gvor cefsofy-ldcfeto` ̀ rum prlios.Yiborldm-^fgumb efsg roeibo` sottfo-aodts wltb Cfgrl`e ed` tbo co`oref mgv-ordaodt, tbo fettor cgr epprgxlaetofy$00.? alfflgd.

    Pbo Ieflcgrdle sottfoaodt rosgfvoseffometlgds tbet ]errlij ^beraeioutl-iefs, e suhsl`lery gc Yiborldm-^fgumb,`oflhoretofy ldcfeto` tbo Evoremo ]bgfo-sefo ^rlios lt ropgrto` tg tbo steto cgr

    Efhutorgf. Ao`l-Ief sots tbo rolahurso-aodt retos cgr pberaeilos cgr aedy gctbo `rums `lspodso` tg Ao`l-Iefpetlodts heso` gd tbo E]^s ropgrto`hy `rum aeduceiturors. Ieflcgrdle pber-aeilos `lspodso` Efhutorgf tg petlodtsed` woro tbod rolahurso` hy Ao`l-Ief.Hy ropgrtldm cefsofy ldcfeto` E]^s, eduahor gc `rum aeduceiturors ieuso`

    Ao`l-Ief tg gvorpey alfflgds gc `gffersld pberaeiy rolahursoaodts.

    Lc tbls stgry sgud`s cealfler, lt sbguf`hoieuso tbo creu` ld Ieflcgrdle ls l`odtl-ief tg tbo creu` igaaltto` hy tbo `rumigapedlos ld Efeheae. Pbo iltlzods gcgur steto ed` aeyho ovod Kustlios gdgur steto“s Yuproao Igurt aust ho

    wgd`orldm wby e `rum aeduceituror wguf` ho peyldm $85.9 alfflgd cgrcreu`ufodt igd`uit lc tboy worod“tmulfty gc creu`. Pboy almbt efsg hoesjldm bgw ied igd`uit hy e `rumaeduceituror igdstltuto creu` ld Iefl-cgrdle, hut dgt ld Efeheae7Ygurio; Ieflcgrdle Ettgrdoy Modoref“s Gcclio ^rossXofoeso

    LLL.^_XOF\ ^GFLPLIEFDO]Y & SLO]Y

    FGGJLDM EBOE@ P G P BLY \ OEX “ Y ^ GFLPLIEF I EA^ELMDY

    L bgpo eff gc tbo oerfy ieapelmdldmfest yoer hy tbo ied`l`etos wbg wlff horuddldm tbls yoer besd“t wgrd gut tbopuhfli. L bevo dovor sood ieapelmds motjlijo` gcc sg oerfy, hut tbet sooas tg hotbo wey tbldms ero `gdo tboso `eys.Agst cgfjs ero prghehfy fljo ao ed`

    wguf` fljo tg soo tbo fodmtb gc iea-pelmds ro`uio` sberpfy. Ld edy ovodt,

    ygu ied rost essuro` tbet tbldms wlffroeffy stert tg mot bgt tbls agdtb. L bgpoed` prey tbet tbo ied`l`etos ed` tbolre`vlsgrs wlff joop tbldms ilvlf ed` gd eblmb pfedo.

    A LPP X GADO\ O D@GXYOY J E\ L SO\ C GX EFEHEAE M GSOXDGX

    Pbls aey ho gf` dows, hut cgraorAesseibusotts mgvordgr ed` Xopuhfl-ied prosl`odtlef ied`l`eto AlttXgadoy od`grso` Yteto Proesuror JeyLvoy ld bor reio cgr Mgvordgr. Xgadoyhoflovos Jey bes tbo oxporlodio ed`

    vlslgd tg `g e mgg` kgh es Mgvordgr. Boefsg hoflovos sbo bes steyo` truo tg borigdsorvetlvo prldilpfos es steto troe-suror. Es ygu aey roieff, Jey sorvo` esXgadoy“s Efeheae ieapelmd ibelr-

    wgaed `urldm tbo 8>>2 ^rosl`odtlefreio. L ea dgt suro bgw auib wolmbttbls od`grsoaodt wlff bevo ld tbo reio,hut igaldm crga e detlgdef pgfltliefclmuro, lt ls slmdlcliedt.

    M OGXMO ] EFFEIO K X . L Y X _DDLDM C GX

    Y PEPO P XOEY_XOX

    Agst Iepltgf Blff ldsl`ors woro sur-prlso` tbet Mogrmo ]effeio Kr. bes`oil`o` tg mot heij ldtg tbo pgfltlieferode. Hut pgfltlis ls ld bls hfgg`, ed`cgr tbet roesgd, L wesd“t tgg surprlso`

    wbod Mogrmo eddgudio` bls `oilslgdtg rud cgr Yteto Proesuror. Mogrmosorvo` twg toras es Proesuror ed` efsgsorvo` gd tbo ^uhfli Yorvlio Igaals-

    slgd ed` bo `l` e vory mgg` kgh ld hgtbgcclios. Bo ls igdiordo` ehgut tbo cetogc tbo steto“s ̂ ropel` Eccgr`ehfo IgffomoPultlgd (^EIP) prgmrea ed` seys bo‖`gosd“t wedt tg ho e spoitetgr ldodsurldm tbo cuturo gc tbo prgmrea.‑ Lsuspoit tbet wes e strgdm agtlvetlgdcgr Mogrmo tg mot ld tbo reio. Es YtetoProesuror, bo bofpo` iroeto tbo

    prgmrea, ed` bo hoflovos tbo stetosbguf` bgdgr tbo ^EIP igdtreits wltb

    Efeheae cealflos ed` sg `g L.

    Y _YED ^ EXJOX @ OYOXSOY E Y OIGD@ P OXA G D EFEHEAE “ Y ^ _HFLI Y OXSLIO I GAALYYLGD

    ^uhfli Yorvlio Igaalsslgd aoahorYused ^erjor ls soojldm ro-ofoitlgd tg esoigd` tora. Pbo @oagiretli igaals-slgdor feudibo` bor ieapelmd gd@oioahor 5= tb . Yused bes wgrjo` tgo`uieto igdsuaors ehgut odormy occl-ilodiy ed` fgworldm utlflty hlffs, huttboro ls agro sbo wedts tg `g ld esoigd` tora. Yused bes `ovofgpo` emgg` deao gutsl`o Efeheae `urldm borclrst tora. Ybo ls prosl`odt gc tbo Ygutb-oestord Essgiletlgd gc Xomufetgry_tlflty Igaalsslgdors, ed` sbo wesroiodtfy ofoito` soigd` vlio prosl`odtgc tbo Detlgdef Essgiletlgd gc Xomufe-tgry _tlflty Igaalsslgdors. Yused ls ld

    fldo tg ho prosl`odt ld 8>58. Ld aygpldlgd, Yused ^erjor bes `gdo ed gut-sted`ldm kgh cgr tbo pogpfo gc Efeheae`urldm bor clrst tora gd tbo ^YI ed``osorvos e soigd`. Ybo ls e mgg` iga-alsslgdor ed` ed ovod hottor porsgd.Ygurio; Essgileto` ^ross

    LS.FOMLYFEPLSOBE^^ODLDMY

    P BO 8>5> X OM_FEX Y OYYLGD ] LFF H O EX G_MB G DO

    Kgyio Hlmhoo, Efeheae“s FomlsfetlvoClsief Gcclio `lroitgr, bes werdo` few-aejors tbet tbo steto“s Modoref Cud`cgr clsief 8>55 iguf` ho `gwd 95%. Pbo`lroitgr pro`lito` spod`ldm hy tbosteto“s O`uietlgd Prust Cud`, ldifu`ldm

  • 8/9/2019 The Jere Beasley Report, Jan. 2010

    6/40

  • 8/9/2019 The Jere Beasley Report, Jan. 2010

    7/40

    evoremo oxpod`lturo ag`of hoetsldcfetlgd hy $5>.?8 hlfflgd wblfotbo iurrodt rovoduo ag`of hoetsldcfetlgd hy $59.88 hlfflgd, e fgssgc $8.= hlfflgd. Ld kust tbo provl- gus cgur yoers, o`uietlgd wguf`bevo roiolvo` $8.0 hlfflgd foss.Pbet ls clvo tlaos tbo eagudt

    spodt gd tbo roe`ldm ed` aetb

    ed` silodio ldltletlvos, ed` agrotbed tbo co`oref stlaufus stehlflty`gffers. Ovod wgrso, ud`or tbooxpod`lturo prgpgsef, tboro ls tbo

    pgsslhlf l ty co `ore f s t laufus`gffers wguf` dgt ho evelfehfo tgbofp `lstrosso` sibggfs, hoieusotbo cud`ldm ieps wguf` roqulrotbo `gffers tg ho sot esl`o ed` tbo

    co`oref `g ffers wguf` ho fgst ,igstldm tbo O`uietlgd Prust Cud`ed e``ltlgdef $5 hlfflgd.

    \os, es Pbo Dows“ o`ltgrlef sel`,‖Pboro“s dg oxiuso cgr dgt cld`ldme hottor wey, pertliuferfy wbodtbo hottor wey efroe`y oxlsts.‑ Ehottor wey `gos oxlst, hut lt ls ior- teldfy dgt tbo evoremo oxpod`l- turo ag`of. ]o eff jdgw tbo hottorwey. Hut tbo hottor wey ls tborge` foss trevofo` ed` tbo agro`lccliuft. Pbus, o`ltgrlef hger`sauso ld tbo ehstreit ehgutibedmos ld prgioss, dgt suhstedio,

    ed` od`grso slapflstli prgpgsefs,dgt sgfutlgds. _dtlf tbo hottor weyls eiblovo`, tbo helfldm wlro, muaed` mfuo, petibwgrj, coest-ed`-

    cealdo epprgeib `gos tbo foestbera ed` prgvl`os cgr sgao roef

    prgmross.

    Ygurio; @r. Moref` Kgbdsgd, Pbo Hlraldmbea Dows @oioahor 8>, 8>><

    S.IG_XP ]EPIB

    I G_XP ] GD “ P @ LYP_XH $28.3 A LFFLGD E]EX@ L D Y_S X GFFGSOX

    Pbo _.Y. Yuproao Igurt bes foct ldpfeio ed $28.3 alfflgd ewer` tg e

    wgaed wbg wes perefyzo` ector borCgr` Oxpfgror rgffo` gvor. Pbo Kustliosrokoito` Cgr` Agtgr Ig.“s ibeffodmo tg

    tbo pudltlvo pgrtlgd gc tbo `eaemosewer`, wblib wes $?? alfflgd. Cgr`ermuo` tbet lt sbguf` dgt ho pudlsbo`hoieuso lts `oslmd gc tbo voblifo aotco`oref secoty sted`er`s. E Ieflcgrdlesteto eppoefs igurt oerflor rokoito`Cgr`“s igdtodtlgd ed` upbof` tboewer` tg As. Hodotte Huoff-]lfsgd.

    As. Huoff-]lfsgd wes `rlvldm gd ed

    ldtorsteto doer Yed @lomg ld Keduery8>>8 wbod sbo sworvo` tg evgl` eaotef ghkoit ed` fgst igdtrgf gc bor5? fewtbet mlvos mud aeduceiturors laaudltycrga fewsults hy sbggtldm vlitlas. Pbo

    Kustlios rocuso` tg boer ed eppoef crga

    Boitgr E`eaos Kr. tg rovlvo bls fewsultemeldst tbo Horotte _.Y.E. Igrp. gvor tboeiil`odtef sbggtldm `oetb gc bls59-yoer-gf` sgd. Pbo Lffldgls YuproaoIgurt tbrow gut tbo fewsult, iltldm tboco`oref 8>>? ^rgtoitlgd gc Fewcuf Iga-aorio ld Eras Eit.

    E`eaos“ sgd , Kgsb, wes sbgt ed`jlffo` hy e 59-yoer-gf` hgy, wbg cgud`

    bls cetbor“s Horotte ed` roagvo` tboaemezldo igdteldldm tbo eaaudltlgd.Bo pgldto` tbo mud et Kgsb ed` puffo`tbo trlmmor, dgt jdgwldm tbet e huffotroaeldo` ld tbo ibeahor. E`eaos suo`Horotte, effomldm tbet tbo mud `l` dgtbevo tbo prgpor werdldms gr e secotyaoibedlsa tbet stgps tbo mud crgaholdm clro` wltbgut tbo aemezldo ldpfeio.Ygurio; Essgileto` ^ross

    ^ _HFLI K _YPLIO K GLDY L A^GXPEDP FE]Y_LP

    ^uhfli Kustlio bes kgldo` e irltlieffylapgrtedt Dow \grj ieso tbet iguf`bevo e `reaetli lapeit gd igdsuaorsecoty. Pbo lssuo ld tbo ieso ( ]effeio v.\grj Ldtordetlgdef ) ls wbotbor eprg`uit aeduceituror gr soffor bes e`uty tg werd ehgut eff gc tbo `edmors gclts prg`uit, ldifu`ldm tbo `edmors gcigapgdodt perts tbet lt jdgws wlff holdsteffo` gd lts prg`uit hy gtbors. Pbo

    @ocod`edt ifelas lt bes dg `uty tg werd ehgut `edmorgus igapgdodtperts tbet lt jdgws wlff ho ldsteffo` gdlts prg`uits. ^uhfli Kustlio ld ed ealilhrloc seys tbet suib e `uty `gos‐ed`aust‐oxlst.

    Pbo fewsult wes clfo` gd hobefc gc eaed wbg `lo` crga oxpgsuro tg eshos-tgs tbet wes ldsteffo` ld ed elr igd`l-tlgdldm udlt aeduceituro` hy \grjLdtordetlgdef. E $? alfflgd vor`lit wesroturdo` ld bls ieso gd tbo mrgud` tbet

    \grj sbguf` bevo cgrosood tbet lts elrigd`ltlgdldm udlts woro holdm uso`, gr wguf` ho uso`, wltb tbo uftre bezer`-gus, eshostgs-igdteldldm ldsufetlgd por-

    veslvofy uso` et tbo tlao. Gd eppoef, \grj ls igdtod`ldm tbet lt be` dg `utytg werd ehgut edy `edmorgus igapg-dodts ldsteffo` gd lts prg`uit hy tblr`pertlos, romer`foss gc wbotbor tbo usogc tbo bezer`gus igapgdodt wes cgro-sooehfo.

    www.KoroHoesfoyXopgrt.iga =

  • 8/9/2019 The Jere Beasley Report, Jan. 2010

    8/402 www.HoesfoyEffod.iga

    _d`or oxlstldm few ld agst stetos,aeduceiturors bevo e `uty tg werdehgut `edmorgus igapgdodts tbet ltjdgws iguf` ho ldsteffo` gd lts prg`-uits hy tblr` pertlos. Lc \grj bes lts wey,prg`uit aeduceiturors wguf` ho ehfotg evgl` flehlflty cgr celfldm tg werd gctbo cuff `edmors gc tbolr prg`uits‐tbo`edmors pgso` hy igapgdodts lt

    jdgws wlff ho ldsteffo` hy gtbors. Dgtgdfy wguf` suib e rufldm bevo e torrl-hfo occoit gd vlitlas“ rlmbts ld Dow

    \grj Yte to, hut lt iguf` pgtodtleffysproe` tg gtbor stetos tbet roigmdlzo e`uty tg werd ud`or suib ilriua-stedios.

    Pbo ealil hrloc, wblib wes clfo` gd@oioahor 8, 8>>,>>>

    E Aleal-@e`o kury ewer`o` soiurltymuer` Keijefyd ^. Ytreibed $5?>,>>> ld`eaemos roiodtfy ld e fewsult emeldst

    bor oapfgyor. Pbo kury cgud` tbet eAleal soiurlty clra, Beff LdvostlmetlgdYorvlio, wrgdmcuffy `odlo` wemos ed`clro` As. Ytreibed cgr sorvldm es e kurgrld e aur`or trlef ld Eprlf 8>>=. Pbo kuryls e cud`eaodtef pert gc wbet aejostbo _.Y. ku`lilef systoa wgrj. Dgoapfgyor sbguf` joop ed oapfgyoocrga sorvldm gd e kury. Yorvldm gd e

    kury ls ed lapgrtedt `uty gc iltlzod-sblp ed` gdo tbet eff gc us sbguf` tejosorlgusfy.

    Ars. Ytreibed, ?=, wes e fgdmtlao Beffsoiurlty suporvlsgr. Ld Eprlf 8>>=, sbo wes stetlgdo` et tbo @r. Aertld FutborJldm Kr. ^feze gcclio hulf`ldm wbod sbotgf` igapedy gwdor Ertbur Beff ehguttbo kury suaagds. Beff hoieao edmryed` tgf` bls oapfgyoo sbo sbguf` sjlpigurt cgr wgrj. As. Ytreibed sorvo`tbroo `eys gd tbo kury tbet igdvlito` eaed gc aur`or cgr ceteffy hoetldm ebgaofoss aed wltb e troo hredib.

    Pbo trlef ku`mo mevo As. Ytreibed efottor vguibldm cgr bor sorvlio, ed` efsge igpy gc tbo igudty few prgtoitldm iltl-zods wbg sorvo gd kurlos. Beff stlffrocuso` tg pey tbo oapfgyoo tbo $0>> ld

    wemos sbo sbguf` bevo oerdo` `urldmtbo tbroo `eys gc kury sorvlio. Bo fetoreiiuso` As. Ytreibed gc creu` ed`tbroetodo` tg ropgrt bor tg tbo Aleal-

    @e`o steto ettgrdoy“s gcclio. Pbo kurgrsld tbo ieso ewer`o` tbo oapfgyoo$9>,>>> cgr fgst wemos ed` oagtlgdef`lstross, ed` $58>,>>> ld pudltlvo`eaemos. Alibeof Colfor, e fewyor fgieto`ld Igref Mehfos, Cfe., roprosodto` tbo^feldtlcc ed` ̀ l` e mgg` kgh.Ygurio; Aleal Boref`

    SL.PBO DEPLGDEFYIODO

    M GSOXDAODP P G ^ E\ $9.0 H LFFLGD P G Y OPPFO L D@LED P X_YP FE]Y_LP

    Pbo _.Y. mgvordaodt wlff pey $9.0hlfflgd tg sottfo e fgdm-ruddldm fewsultemeldst tbo Ldtorlgr @opertaodt cgralsaedemldm tbo rovoduo ld Detlvo

    Eaorlied trust cud`s. Es pert gc tbo sot-tfoaodt, tbo mgvordaodt wlff pey $5.0

    hlfflgd `lroitfy tg aoahors gc Ld`ledtrlhos ed` ostehflsb e $8 hlfflgd cud` tghuy fed` crga Detlvo Eaorlieds. Pbosottfoaodt efsg iroetos e $3> alfflgdco`oref sibgfersblp tg laprgvo eiiosstg blmbor o`uietlgd cgr Ld`led ygutb._.Y. Ldtorlgr Yoirotery Jod Yefezer, ldeddgudildm tbo sottfoaodt, sel` ‖]oero boro tg rlmbt e pest wrgdm.‑ Pbo sot-tfoaodt aust stlff ho epprgvo` hy tbo_.Y. Igdmross ed` tbo igurt.

    _d`or tbo sottfoaodt, agst gc tbo

    9>>,>>> ld`lvl`uef Ld`leds wbg woropert gc tbo ifess eitlgd fewsult wguf`roiolvo et foest $5,?>> oeib. Pbo Ldto-rlgr @opertaodt wes suo` 59 yoers emgcgr alsbed`fldm tbo rovoduo ld Ld`ledtrust cud`s mgldm heij tg 522=. Pbocud` ldifu`os 5> alfflgd eiros gc fed`gwdo` hy ld`lvl`uef Ld`leds ed` 03alfflgd eiros hofgdmldm tg Ld`led trlhos.Ygurio; Xoutors

    SLL.PBO IGX^GXEPO]GXF@

    L P ^ E\Y P G H O E I GX^GXEPO A GDLPGX

    L bevo foerdo` tbet sgao cgfjs ero

    `gldm vory woff sorvldm es igrpgretoagdltgrs. L `guht tbet aedy gc gurroe`ors ovod jdgw wbet e ‖igrpgretoagdltgr‑ ls. L aust igdcoss tbet L `l`d“tudtlf kust e cow woojs emg. E igrpgretoagdltgr ls e porsgd eppgldto` hy tbo

    Kustl io @opertaodt tg gvorsoo ed`odcgrio verlgus `ocorro` ed` dgd-prgs-oiutlgd emrooaodts.

    E duahor gc porsgds bevo sorvo` esigrpgreto agdltgrs. E flst gc igrpgretoagdltgrs wes roiodtfy puhflsbo` gdtbo Bguso Ku`lilery Igaalttoo“s wohslto. Ldtorostldmfy, tbet flst ̀ l`d“t ldifu`otbo deaos gc cgur porsgds wbg bevohood eppgldto` sldio Aerib gc 8>>2. Lud`orsted` et foest twg e``ltlgdef agd-ltgrs wlff ho eppgldto` sggd. Pbo Mgv-ordaodt Eiigudtehlflty Gcclio roiodtfyrofoeso` e ropgrt gd igrpgreto agdl-tgrs. Pbo tltfo gc tbo ropgrt ls ‖Igrpg-reto Irlao; ^rgsoiutgrs E`boro` tgMul`edio ld Yofoitldm Agdltgrs cgr@ocorro` ^rgsoiutlgd ed` Dgd-^rgsoiu-tlgd Emrooaodts, hut @GK Iguf` Hottor

    Igaaudlieto Lts Xgfo ld XosgfvldmIgdcflits.‑

    Pbo MEG cgud` tbet tboro bevo hood0? agdltgrs eppgldto`. Pboro bes hoodsgao igdiord ehgut tbo agdltgrs“ igst,sigpo ed` eagudt gc wgrj igapfoto`.Pbo pey siefo cgr tbls wgrj ls prottymgg`, ovod hy igrpgreto sted`er`s.Ygao igapedlos pel` $2,>>> e agdtbcgr tbolr agdltgrs ed` gtbors pel` $8.5alfflgd por agdtb. Pbo MEG survoyo`olmbt igapedlos gd tbo igst gc tbolr

    agdltgrsblps. Pboso ropgrto` igsts woro; $92.= alfflgd: $58 alfflgd: $>,>>>.Pbet“s e mroet `oef gc agdoy. Pbo Creu`Yoitlgd et tbo @opertaodt gc Kustlio‖oxpoits e wgrj pfed,‑ wbod e agdltgrls eppgldto`. Eiigr`ldm tg e ropgrt ldIgrpgreto Irlao Xopgrtor tbo eagudtgc coos `lsifgso` aey gdfy ho tbo tlp gc

  • 8/9/2019 The Jere Beasley Report, Jan. 2010

    9/40 www.KoroHoesfoyXopgrt.iga <

    tbo liohorm wbod lt igaos tg tbo tgtefigsts gc agdltgrs.Ygurio; Igrpgreto Irlao Xopgrtor

    H ELFG_P FGEDY P G P BO B EXPCGX@ ED@ FLDIGFD D EPLGDEF

    E helfgut wetib`gm seys tbo pertlil-

    petlgd gc twg hlm ldsurors ld tbo $=>>hlfflgd cldedilef rosiuo igdtre`lito`tbo mgefs gc tbo mgvordaodt prgmrea.Pbo ldifuslgd gc Bertcgr` Cldedilef Yor-

    vlios Mrgup Ldi. ed` Fldigfd DetlgdefIgrp. ‖wes ldigdmrugus wltb tbo splrlted` ldtodt““ gc tbo helfgut prgmrea,eiigr`ldm tg tbo ropgrt hy YpoilefLdspoitgr Modoref Dolf Hergcsjy. Pbotexpeyor ldvostaodts ld tbo twg iga-pedlos woro suppgso` tg ho cgr‖hedjldm husldoss.‑ Ldstoe` tbo agdoy

    wodt tg suppgrt tbolr ldsuredio husl-dossos, dgt tbo saeff tbrlct ldstltutlgdstboy eiqulro` ld gr`or tg queflcy cgr tbohelfgut.

    Pbo ropgrt lffustretos tbet tboeagudt gc agdoy tboy roiolvo` crgatbo mgvordaodt‐$9.0 hlfflgd cgr Bert-cgr`, wblib ls heso` ld Bertcgr`, Igd-doitliut, ed` $ alfflgd cgr^blfe`ofpble-heso` Fldigfd‐wes heso`gd tbo essots gc tbolr perodt ldsuredioigapedlos ed` ‖`werco`““ tbo slzo gctbo tbrlcts tboy eiqulro`. Lt wes steto`

    curtbor ld tbo ropgrt tbet ‖troesury clttbo odgragus ldvostaodts ld tbosoldsuredio igapedlos, bumo prgvorhlefpoms, ldtg tbo saeff rgud` bgfos“ gc ofl-mlhlflty cgr tbo helfgut prgmrea.‑ Lt“s`otelfo` ld tbo ropgrt bgw slx igape-dlos uso` $25 hlfflgd ld texpeyoragdoy tboy roiolvo` ed` wbotbor tboyjopt lt sopereto crga gtbor igapedycud`s.

    Modoref Agtgrs ed` Ibrysfor, cgroxeapfo, uso` fermo pgrtlgds gc tbo

    agdoy tg igvor `elfy gporetldmoxpodsos fljo peyldm suppflors ed`aootldm peyrgff. Gdfy tlao wlff toff bgwldoccoitlvo tbo co`oref helfguts eitueffybevo hood. L suspoit tbet wlff tejo sgaotlao. L bevo tg hoflovo tbet gur detlgd“soigdgay wes sevo`.Ygurio; Ldsuredio Kgurdef

    L P E^^OEXY M GF@AED ^ FE\O@ A _IB FEXMOX X GFO L D ELM P XE@OY

    Pbo ]eff Ytroot Kgurdef bes ropgrto`tbet Mgf`aed Yeibs Mrgup Ldi. pfeyo`e hlmmor rgfo ld cuofldm tbo agrtmemohots tbet irlppfo` Eaorlied LdsuredioMrgup Ldi. tbed bes hood puhflify `ls-ifgso`. Ed edefysls hy tbo pepor gc

    ELM“s tre`os gd pggfs gc agrtmemo `ohtrovoefs tbet Mgf`aed wes e joy pfeyorld aedy gc tboa, ldifu`ldm tbgsoldvgfvldm gtbor hedjs. Es ygu wlffroieff, Mgf`aed wes gdo gc 53 hedjstbo _.Y. mgvordaodt rosiuo` fest yoerector ifgsldm gut fgsldm tre`os tbet ELMbe` ae`o wltb tbo cldedilef clras.

    Pbo hedj grlmldeto` gr hgumbt prg-toitlgd crga ELM gd rgumbfy $99 hlffgdgc tbo $2> hlfflgd gc _.Y. agrtmemoessots tbet ELM ldsuro` `urldm tbobgusldm hgga. Pbet wes ehgut twlio esauib es Ygiloto Modorefo ed` AorrlffFydib, tbo clras wltb tbo fermost oxpg-suro tg ELM ector Mgf`aed, eiigr`ldmtg ed edefysls gc retldms-clra ropgrtsed` ed ldtordef ELM `giuaodt, esropgrto` hy tbo Kgurdef . Mgf`aed

    wguf` eit es tbo al``foaed hotwood ELM ed` hedjs, tejldm hlfflgds ld rlsj gctbo agrtmemo-rofeto` ldvostaodts. Lt

    wes ropgrto` tbet Mg f`aed tbodldsuro` tbo rlsjs wltb e sldmfo tre`ldmpertdor, ELM.

    Pbo Kgurdef ropgrts tbet tre`os,agstfy hggjo` crga 8>>0 tg 8>>3,

    ylof`o` foss tbed $?> alfflgd ld prgcltscgr Mgf`aed. Hut tbo tre`os e``o` rlsjsgdtg ELM“s hggjs ed` fetor ieao tgbeudt tbo ldsuror ed` Mgf`aed. Pbotre`os efsg mevo Mgf`aed e udlquo

    wld`gw ldtg ELM“s oxpgsuro tg fgssosgd soiurltlos fldjo` tg agrtmemos.

    ]bod tbo co`oref mgvordaodt helfo`gut tbo ldsuror, Mgf`aed evgl`o` fgssosgd lts tre`os wltb ELM igvorldm e tgtef

    gc $88 hlfflgd ld essots. E mgvordaodt eu`lt ld Dgvoahor gdpert gc tbo ELM helfgut `osirlho` Mgf`-aed“s al``foaed rgfo. Pbo slzo gc tbomgvordaodt“s helfgut gc Mgf`aed ed`tbo gtbor ELM igudtor-pertlos bes hood

    vory udpgpufer . Lt sbguf` ho dgto`tbet Bodry ^eufsgd, tbo _.Y. Proesurysoirotery, wes e cgraor Mgf`aed iblocoxoiutlvo.Ygurio; ]eff Ytroot Kgurdef

    I GDMXOYY Y BG_F@ X OYPGXO P BO ] EFF H OP]OOD H EDJLDM ED@ L DY_XEDIO

    Cldedilef mledts iguf` ho hrgjod upud`or twg hlffs ldtrg`uio` ld tbo _.Y.Igdmross fest agdtb. Gdo gc tbo hlffsbes tbo heijldm gc Yodetgr KgbdAiIeld. Hgtb hlffs wguf` roldsteto tbo5s-ore Mfess-Ytoemeff fews tbet

    herro` fermo hedjs crga ecclfletldm wltbsoiurltlos clras ed` odmemldm ld tboldsuredio husldoss. Pbgso flalts worofermofy ropoefo` ld 5

  • 8/9/2019 The Jere Beasley Report, Jan. 2010

    10/405> www.HoesfoyEffod.iga

    Pbo ropoef gc Mfess-Ytoemeff besoxpgso` tbo _.Y. oigdgay tg efovof gc rlsj tbet ls slapfy udei- ioptehfo. Igdmross lmdgro` blstgryld 5

  • 8/9/2019 The Jere Beasley Report, Jan. 2010

    11/40 www.KoroHoesfoyXopgrt.iga 55

    `odt Gheae ed` Igdmross wlffpess tbo doiossery fomlsfetlgddoo`o` tg aejo suro tbet wo `gd“temeld ceff ldtg tbo seao clsief aoss.

    Ieapelmd Cldedio Xocgra

    Lt“s prghehfy tgg auib tg oxpoitcgr Igdmross tg pess edy aoedldm-cuf ieapelmd cldedio rocgra fomls-fetlgd tbls yoer. Eftbgumb lt ls he`fydoo`o`. Ypoilef ldtorosts wlff igd-tlduo tg bevo cer tgg auib pgwored` ldcfuodio udtlf suib tlao esaekgr ibedmos ero ae`o ld bgwpgfltlief ieapelmds ero cldedio`.

    Erhltretlgd Xocgra

    ^rgapto` hy tbo repo gc cgraorJHX oapfgyoo Kealo Folmb Kgdos,

    Igdmross wlff sggd pess e aoesuroheddldm `ocodso igdtreitgrs crgacgrildm oapfgyoos tg uso erhltre-tlgd tg rosgfvo ifelas gc `lsirlal-detlgd ed` soxuef esseuft. Bgusoed` Yodeto domgtletgrs emroo` tgldifu`o tbo dg-erhltretlgd prgvl-slgd ld e $393 hlfflgd `ocodsospod`ldm hlff tbet pesso` tboBguso hy e vgto gc 9

  • 8/9/2019 The Jere Beasley Report, Jan. 2010

    12/40

  • 8/9/2019 The Jere Beasley Report, Jan. 2010

    13/40

    Hoieuso gc bls oxpgsuro, Ar. Herehld wes `lemdgso` wltb aeflmdedt aosg-tboflgae ld 8>>3. Es wo bevo ropgrto`,lffdossos rofeto` tg eshostgs oxpgsuroero oxtroaofy flco-tbroetodldm `uo tgtbo sovoro fetodiy porlg` gc syaptgas.Ld aedy iesos, vlitlas gc eshostgsoxpgsuro udjdgwldmfy `ovofgp e`lsoeso hocgro coofldm edy slmds gc

    giiurrodio. @opod`ldm gd tbo `lsoeso,syaptgas aey tejo es fgdm es tod tg ?>

    yoers tg erlso. Es ygu aey dgw jdgw, Aosgtbofl-

    gae ls pertliuferfy beracuf es tboro lsdg iuro cgr tbo `lsoeso. Ector `lemdgsls,agst petlodts roiolvo peffletlvo iero grodtor ifldlief trlefs tg bofp igahet tbolrigd`ltlgd. Evoremo prgmdgsls cgr aosg-tboflgae ls hotwood cgur ed` 52agdtbs. Ld e``ltlgd tg pepor alff

    wgrjors, gtbor kghs tbet bevo be` e

    blstgry gc eshostgs oxpgsuro ldifu`otbgso ld tbo igdstruitlgd, sblpyer`,pgwor ed` iboalief pfedt, ofoitrliefed` eutgagtlvo ld`ustrlos. Lc ygu wguf`fljo agro ldcgraetlgd gr bevo edyquostlgds ehgut eshostgs oxpgsuro, yguied igdteit Aljo Ed`rows (Aljo.

    Ed`rowsNhoesfoyeffod.iga) gr HodFgijfer (Hod.FgijferNhoesfoyeffod.iga) ld gur gcclio et 2>>-290.

    @ EDMOXG_Y ECPOXAEXJOP ] BOOFY G D I EXY

    E igaagd pre itl io eagdm aedy ygudm pogpfo tg`ey ls tg puribeso dowrlas gr ‖wboofs‑ cgr tbolr voblifos.Pboso wboofs bevo spewdo` e iufturefrovgfutlgd, gc sgrts. Ld ceit, tboy bevoovod hoigao tbo suhkoit gc rep sgdms.Pbo fermor rlas gr wboofs holdm pfeio`gd sgao voblifos ero rocorro` tg es‖`uhs,‑ ‖hfe`os,‑ ‖spoo`s,‑ ‖splddors,‑ ed`‖twodtlos,‑ eagdm gtbor deaos. Aedygc tbo rlas tbet ero holdm ldsteffo` gdeutgaghlfos ero ectoraerjot prg`uits,aoedldm tbet tboy woro dgt aeducei-turo` hy tbo eutgaghlfo aeduceiturorgr woro dgt aeduceituro` spoilclieffycgr tbet voblifo hy edgtbor igapedycgr tbo voblifo aeduceituror.

    Pbo rlas ero typlieffy ae`o gc efual-dua, oltbor cgrmo` gr iest. Pbo efual-dua ls gctod ae`o es ed effgy, hfod`o`

    wltb gtbor aetorlefs fljo aemdoslua gr

    gtbor dgd-corrgus aotefs ld gr`or tgstrodmtbod tbo efualdua. Pbo ldtomrltygc tbo efualdua gr efualdua iga-pgud`s uso` ed` tbo aeduceiturldmprgioss oapfgyo` hy tbo aeduceituroriguf` aoed tbo `lccorodio hotwood flcoed` `oetb. Pboro bevo hood aedyropgrto` ldil`odts gc tbo ectoraerjot

    wboofs igffepsldm gr hroejldm. Hoieuso

    gc tbo hgga ld tbo aerjot, lt lsoxpoito` tbet aedy agro eiil`odts

    wlff giiur hoieuso gc ceufty ed` `ocoi-tlvo rlas. Pbo aotbg` uso` tg aejo tbotlro ed` tbo queflty gc tbo aeduceitur-ldm prgioss ied mroetfy eccoit tbo igstgc tbo rlas ed` tbolr secoty rlsjs.

    ]b l fo ags t eu tgaghl fos e rooqulppo` et tbo ceitgry wltb 59‑ tg 5?‑tlros ed` rlas, ectoraerjot rlas ied ho8>‑ gr agro. Ld agst ldstedios tbo

    wboofs tbe t igao gd e voblifo ero

    wboofs tbet ero `oslmdo` cgr tbet voblifo. Pbo ectoraerjot wboofs, gd tbogtbor bed`, ero dgt `oslmdo` cgr tbo

    voblifo. Pbo fermor wboofs eccoit stehlf-lty ed` bed`fldm gc tbo voblifo. Efsg,`opod`ldm gd tbo ldtomrlty gc tbo rlas,tbo wolmbt ed` stross eppflo` crgadgraef gporetlgd gc e voblifo iedieuso tbo wboofs tg celf ld e verloty gcaeddors.

    Slrtueffy ovory voblifo aeduceituro`tg`ey bes igaputor ed` ofoitrgdlisystoas tbet ero `oslmdo` tg e`kust bed-`fldm ed` suspodslgd, heso` upgdovodts tbet giiur wltb tbo wboofs tbetigao sted`er` gd tbo voblifo. ]bodfermor wboofs ero e``o` tg e voblifo,tbo igaputor systoa ieddgt ldtorprottbo `ete igrroitfy, aoedldm tbet tbohrejldm eitlgd ed` stehlflty gc tbo

    voblifo iguf` ho lapelro`. Pbo fermor wboofs ero efsg sbgwd tg ldiroeso woered` toer gd suspodslgd. Eff gc tbosoceitgrs, crga tbo ldtomrlty gc tbo aoteftg tbo ldtorceio gc tbo tlro systoa wltb

    tbo voblifo“s ofoitrgdli stehlflty systoa,ied mroetfy ldiroeso tbo rlsj gc sorlgushg`lfy bera gr ldkury.

    E qulij Mggmfo ® soerib rovoefs tbettboro ero fltoreffy bud`ro`s gc gptlgdscgr ectoraerjot rlas ed` wboofs. Ygaogc tbo aeduceiturors gc tboso ectoraer-jot rlas ero crga igudtrlos fljo Iblde,

    wboro lt ls udfljofy tbet tbo aeducei-turldm prgiossos ero agdltgro` es

    ifgsofy es tboy ero, gr sbguf` ho, ld tbo_dlto` Ytetos.

    Cgr tbgso wbg wlsb tg e`` e sot gc‖hfe`os‑ gr ‖`uhs‑ tg tbolr voblifo, lt lsroigaaod`o` tbet tboy sooj gut e rop-utehfo tlro sbgp. Ag`lclietlgds aeybevo tg ho ae`o tg tbo suspodslgd ed`hrejldm systoa tg aldlalzo tbo rlsjsessgileto` wltb tbo e``ltlgd gc tbo

    fermor rlas. Cgrmo` efualdua aey efsggccor hottor ldtomrlty. Gur clra wlffrovlow iesos ldvgfvldm wboof gr rlacelfuros tbet rosuft ld sorlgus ldkury gr`oetb. Lc ygu doo` e``ltlgdef ldcgrae-tlgd gd tbls suhkoit, igdteit HodFgijfer gr Igfo ^grtls ld gur clra et2>>-290 gr hy oaelf et Hod.FgijferNhoesfoyeffod.iga gr Igfo.^grtlsNhoesfoyeffod.iga.Ygurios; ̂ et Er`ls, e fewyor crga Aoapbls, Podd.:bttp;//www.ldsl`ofldo.iga/coeturos/tbo-`edmor-gc-`uhs.btaf: bttp;//www.rlpgccropgrt.iga/Ier-^erts-

    Eiiossgrlos/]boofaex/wboofaex-`edmor-udseco-prg`ui-c0e0a.bta

    C O@OXEF Y P_@\ Y E\Y C E_FP\ I BLDOYO @ X\]EFF I E_YOY I GXXGYLGD

    Pbo Igdsuaor ^rg`uit Yecoty Iga-alsslgd bes cgud` e fldj hotwood tbolapgrto` aetorlef Ibldoso `ryweff ed`tbo igrrgslgd prghfoa ld bgaos tbetbevo lt. Hut tbo emodiy efsg sel` tboy`gd“t hoflovo tbo prghfoas ero es wl`o-

    sproe` es oerfy ostlaetos pro`lito`. Pboigdifuslgd cgffgwo` tostldm et ?5bgaos ld Cfgrl`e, Efeheae, Fgulslede,Alsslsslppl ed` Slrmldle tbet cgud` ‖estrgdm essgiletlgd hotwood tboprghfoa `ryweff, tbo by`rgmod sufcl`ofovofs ld bgaos wltb tbet `ryweff ed`igrrgslgd ld tbgso bgaos.““

    Gvor tbo pest yoer, bgaogwdorsbevo hood igapfeldldm tg co`oref ed`steto mgvordaodt emodilos tbet tbolrbgaos saoff gc sufcur gr rgttod omms,

    tbo igppor ld tbolr elr-igd`ltlgdldmudlts ed` ofoitrlief wlros ld tbolrbgaos ero igrrg`ldm ed` tbet gtboraotefs ero turdldm hfeij. Pboy bevo efsgropgrto` prghfoas hroetbldm, boe`-eibos ed` dgsohfoo`s. Hut udtlf tblsropgrt, dg emodiy be` gcclileffy fldjo`igrrgslgd prghfoas wltb `ryweff. PboI^YI ls stlff ldvostlmetldm tbo fldjhotwood weffhger` ed` boeftb igd-iords. Pbo ropgrt sel` iboaliefs cgud`

    www.KoroHoesfoyXopgrt.iga 59

  • 8/9/2019 The Jere Beasley Report, Jan. 2010

    14/40

    ld tbo bgaos tosto` woro et fovofsfgwor tbed wbet almbt ho oxpoito` tgieuso lrrltetlgd, hut tbo igahldetlgd gctbgso igapgud`s wltb gtbor suh-stedios iguf` foe` tg tbo syaptgascealflos ero oxporlodildm.

    Pg `eto, tbo I^YI bes roiolvo` 8,>>‐ero crga Cfgrl`e rosl`odts.

    ]blfo tbo prghfoa ls wl`osproe`, ]gfcsgd sel` provlgus ostlaetos tbet esaedy es 5>>,>>> bgaos detlgdwl`oaey ho eccoito` ero fljofy ldigrroit.Igapfeldts ropgrto` tg steto ed`co`oref emodilos `gd“t cgrosbe`gw tbetfermo gc e duahor.

    Yg cer tbo I^YI bes spodt ehgut $9.?alfflgd gd lts ldvostlmetlgd, wblib lstbo fermost ld tbo blstgry gc tbo emodiy.Pbo doxt pbeso gc lts wgrj wlff `oef

    wltb cld`ldm weys tg l`odtlcy prghfoa`ryweff ed` igao up wltb weys tgtroet bgaos. Aedy bgaogwdors eropursuldm fewsults emeldst cgrolmd aedu-ceiturors tbet aey woff tejo yoers tgrosgfvo. \gu sbguf`d“t ho surprlso` tgfoerd tbet tbo cgrolmd igapedlos eroaejldm lt `lccliuft cgr tbo vlitlas. Gdfygdo igapedy, Jdeuc ^festorhger` Pled-

    kled, bes emroo` tg ho sorvo` wltb eco`oref ifess-eitlgd fewsult ed` dgtcgrio ^feldtlccs tg mg tbrgumb ldtorde-tlgdef fomef ibeddofs. Ovodtueffy tboco`oref mgvordaodt aey bevo tg motldvgfvo`. Hut L ea dgt suro wbet wlffho evelfehfo tg bgaogwdors crga tbetsgurio. Pbo LXY iguf` `oil`o tg effgwbgaogwdors tg `oifero e iesuefty fgssgd roturds. Ygao stetos, ldifu`ldm Fgul-slede, ero usldm co`oref Igaaudlty@ovofgpaodt Hfgij Mredt agdoy tg

    bofp bgaogwdors. Ld edy ovodt tboro lse agst sorlgus prghfoa tbet aust ho`oeft wltb.Ygurio; Pbo Aleal Boref`

    D O] G XFOEDY Y ELDPY I GEIB FOE@Y I BLDOYO @ X\]EFF FE]Y_LP

    Dow Grfoeds Yeldts boe` igeib Yoed^eytgd ls gdo gc ehgut 8,5>> ^feldtlccs

    deao` ld e ifess-eitlgd fewsult emeldste Ibldoso aeduceituror gc `ryweff tbetbes effomo`fy `eaemo` bgaos ed` slij-odo` rosl`odts. Igeib ^eytgd ls tbofoe` ^feldtlcc cgr tbo sult clfo` festagdtb emeldst Jdeuc ^festorhger`Peldkld Ig. Pbo igeib agvo` bls cealfygut gc tbolr suhurhed Dow Grfoedsbguso ed` ls suldm tbo Ibldoso aejor

    gc `ryweff uso` ld bls bgao. Pbo ^feld-tlccs ld tbo dowfy-clfo` sult ldifu`o rosl-`odts gc Efeheae, Cfgrl`e, Fgulslede ed`Alsslsslppl. @gzods gc bgaohulf`ors,roag`ofors, hulf`ldm suppflors ed``ryweff `lstrlhutgrs efsg ero deao` es@ocod`edts ld tbo sult.Ygurio; Essgileto` ^ross

    R.AEYY PGXPY_^@EPO

    M FERG B EY ^ EL@ $5 H LFFLGD L D P BO Y OPPFOAODP G C ^ ERLF Y _LPY

    Lt wes ropgrto` roiodtfy ld Hfgga- horm Dows tbet MfexgYaltbJfldo ^fi(MYJ) bes pel` efagst $5 hlfflgd tgrosgfvo fewsults gvor ^exlf sldio ltldtrg`uio` tbo edtl`oprossedt ld 5alfflgd tg sottfo ^exlf e``litlgd ed`hlrtb-`ocoit iesos ed` $0>> alfflgd tgrosgfvo edtltrust, creu` ed` `oslmdifelas.

    Credjfy, L sorlgusfy `guht tbet tbotgtef peygut hy MYJ ls roeffy jdgwd ettbls kudituro. Pbo Fgd`gd-heso`igapedy besd“t `lsifgso` tbo sottfo-

    aodt tgtef ld igapedy clfldms. Lt besae`o puhfli sgao eiigr`s. Pbo `rumaeduceituror“s prgvlslgd cgr fomef ed`gtbor dgd-tex `lsputos es gc tbo od` gc8>>2 wes 5.< hlfflgd pgud`s ($9.><hlfflgd), eiigr`ldm tg lts fetost edduefropgrt. Hut tbet tgtef ldifu`o` eff fomefaettors, dgt kust ^exlf fltlmetlgd.

    ^exlf bes hood gd tbo aerjot ld tbo_dlto` Ytetos sldio 5> ifelas tbet ^exlf ieuso`hlrtb `ocoits. Pbo ^exlf fltlmetlgd be`tbroo aekgr porsgdef ldkury fltlmetlgdsgvor gdo `rum‐tbo sulil`o, tbo hlrtb`ocoit ed` tbo wltb`rewef iesos. Yldioet foest 8>>9, MfexgYaltbJfldo bes

    ceio` ifelas ld igurts ld tbls igudtrytbet sgao ^exlf usors woro suhkoito` tged ud`lsifgso`, blmbor rlsj cgr sulil`oed` hlrtb `ocoits.Ygurio; Hfggahorm

    ^ CL[OX Y OOJY P G I _XPELF ^ _HFLILP\

    Fest agdtb, wo ropgrto` gd twgroiodt bgragdo tborepy vor`lits tbet

    woro roturdo` hy ^blfe`ofpble kurlosemeldst ]yotb (e `lvlslgd gc ^clzor).Pbgso vor`lits tgtefo` ld oxioss gc$5>9 alfflgd ed` roiolvo` e fgt gc ettod-tlgd crga tbo pross ergud` tbo igudtry.Yldio tbod, tbo Dow \grj Plaos red edoxtodslvo ploio wltb ofoitrgdli fldjs tgaedy gc tbo `giuaodts tbet woro igd-sl`oro` hy tbo kurgrs ld rod`orldm tbolr`oilslgds. Pbo ertlifo ls odtltfo` ‖Aodg-peuso, es Hrgumbt tg \gu hy Hlm^berae‑ ed` ied ho cgud` et bttp;//

    www.brt-fomef.iga/.Pbo Plaos ropgrts tbet ‖tbo `giu-

    aodts gccor e sdepsbgt gc ]yotb“soccgrts. Pejod tgmotbor, tboy `oplit eigapedy tbet gvor sovoref `oie`osspodt tods gc alfflgds gc `gffers gdldcfuodtlef pbyslileds, prgcosslgdefao`lief sgilotlos, silodtlcli puhflie-tlgds, igursos ed` iofohrlty e`s, ldud-`etldm `gitgrs ed` petlodts wltb e soegc pgsltlvo provodtlvo boeftb aossemostbet ^feldtlccs“ fewyors sey `ocfoito`usors“ ettodtlgd crga iedior igdiords.‑@r. Korgao F. Evgrd, e prgcossgr gc ao`l-

    ildo et Berver` Ao`lief Yibggf, seystbo iesos `oagdstreto tbo lapgrtediogc fltlmetlgd ld `otelfldm oxeitfy bgw`rum aejors gporeto tbolr husldossoses tboy ylof` `giuaodts tbet prgvl`o erero mflapso ldsl`o tbo clfo iehldots ed`ber` `rlvos gc e aekgr `rum igapedy.

    Ld rospgdso tg tbo Dow \grj Plaosertlifo, ^clzor lssuo` e dows rofoesoecclraldm igdcl`odio ld lts bgragdotborepy `rums. Lrgdlieffy, ^clzor tbod

    50 www.HoesfoyEffod.iga

  • 8/9/2019 The Jere Beasley Report, Jan. 2010

    15/40

    clfo` e agtlgd wltb tbo ^blfe`ofpbleigurt soojldm tg iurtelf puhflilty sur-rgud`ldm tboso iesos. Es wo mg tg pross,tbo igurt bes dgt yot rufo` gd tbetagtlgd.Ygurio; Dow \grj Plaos

    G XPBG^O@LI Y _XMOGD B EY O PBLIEF @ _P\

    P G ] EXD E ^ EPLODP G C ^ GPODPLEF Y BG_F@OX ^ ELD ^ _A^ L DK_X\

    ]o bevo wrlttod ld provlgus lssuosehgut tbo wl`osproe` prghfoa rofetldmtg peld puaps. @r. Kgsopb E. Ierroso lstbo `lroitgr gc tbo prgmrea gd otblised` ifldlief preitlio et Kgbd BgpjldsHoraed Ldstltuto gc Hlg-Otblis. @r.Ierroso, wbg ls ed oxport ld tbo clof` gcHlg-Otblis, bes roiodtfy rovlowo`ao`lief fltoreturo, oxport ropgrts ed``opgsltlgds crga tbo sbguf`or peldpuap fltlmetlgd. Bo wes esjo` tg cgraed gpldlgd ehgut ed grtbgpo`li sur-mogd“s otblief rospgdslhlflty tg e petlodtector porcgraldm ertbrgsigpli sbguf`orsurmory wltb tbo uso gc e peld puap`ovlio tbet ldcusos ao`lietlgd igdtldu-gusfy vle e ietbotor `lroitfy ldtg tbosbguf`or kgldt. Heso` upgd bls o`uie-tlgd, treldldm ed` oxportlso ed` tborovlow gc eff gc tbo `giuaodts prg-

    vl`o` tg bla, @r. Ierroso hoflovos tbettbo surmogd sbguf` ldcgra eff gc bls

    petlodts wbg bevo be` tbls surmory ed`suhsoquodt uso gc tbo peld puap gctbo cgffgwldm;• Pbo pgtodtlef rlsj ed` e`vorso gut-

    igaos essgileto` wltb tbo uso gc epeld puap ietbotor `ovlio tbetldcusos peld ao`lietlgd `lroitfy ldtgtbo kgldt speio:

    • Cgr petlodts wbg ld ceit `ovofgpibgd`rgfysls, ldcgra tbo petlodts

    wbet ls modoreffy jdgwd ehgut tbls

    pgst-gporetlvo igapflietlgd:• Pbo fljofy essgiletlgd gc tbolr iurrodt

    igd`ltlgd (ibgd`rgfysls) tg tbo peldpuap ietbotor `ovlio:

    • ]bet stops petlodts almbt tejo tg mote prgpor `lemdgsls ed` prgpor aed-emoaodt gc tbolr igd`ltlgd: ed`

    • Pbolr rlmbt tg pursuo fltlmetlgdrofeto` tg tbolr igd`ltlgd.

    ]o hoflovo tboro ero aedy petlodtsld tbls igudtry succorldm crga ibgd-`rgfysls es e rosuft gc ldcuslgd gc ededostbotli ldtg tbolr kgldt speio wltbtbo uso gc e peld puap wbg bevo dgl`oe tboy bevo succoro` ed ldkury ld tblsaeddor. Grtbgpo`li surmogds wbgbevo porcgrao` tbls typo gc surmorybevo ed otblief rospgdslhlflty tg ldcgra

    tbgso petlodts gc tbo ehgvo rlsj ed`rlmbts. ]o bgpo tbet tboy wlff `g sg.Ygurio; @r. Kgsopbe E. Ierroso

    FE]Y_LPY C LFO@ G SOX H OD[ODO O R^GY_XO

    Oerflor tbls yoer, e Poxes igupfo,Iberfos ed` Hosslo Aeo Ytowert, suo`H^ ed` sovoref gtbor igapedlos ectortbo bushed` ropgrto`fy igdtreito` epgtodtleffy cetef cgra gc iedior effom-o`fy `uo tg hodzodo oxpgsuro. Ar.Ytowert wes `lemdgso` wltb ibrgdlifyapbgtli foujoale, e typo gc iediorldvgfvldm tbo wblto hfgg` ioffs wblibls modoreffy igdsl`oro` ldiurehfo. Pbofewsult clfo` ld Mefvostgd Igudty @ls-trlit Igurt, effomos tbet 9> yoers gc

    wgrjldm ergud` hodzodo mevo IberfosYtowert ibrgdli fyapbgiytli foujoale.Ld e``ltlgd tg H^, Ibovrgd, Igdgig^blf-flps, Yboff, Poxeig, ed` Aeretbgd erodeao` es @ocod`edts ld tbo fewsult. Lt“seffomo` ld tbo fewsult tbet tbo @ocod-

    `edts jdow ehgut tbo `edmors essgil-eto` wltb oxpgsuro tg hodzodo ed`celfo` tg werd bla tbet bo wes wgrjldmld ifgso prgxlalty tg tbo bezer`gus sgf-

    vodts ed` iboaliefs wltbgut edy pro-ieutlgds tg ro`uio tbo rlsj gc oxpgsuro.

    Efsg, ld Eumust gc tbls yoer, edgtborfewsult wes clfo` hy e rotlro` relfrge`

    wgrjor , Xl iber ` Izupryds jl , wbg`ovofgpo` e `oe`fy cgra gc iediorector 9> yoers gc effomo` oxpgsuro tgHodzodo ed` gtbor iedior-ieusldm

    iboaliefs. Pbo fewsult, clfo` ld Koccor-sgd Igudty (Poxes) @lstrlit Igurt,eiiusos Jedses Ilty Ygutbord XelfweyIg. gc domflmodtfy oxpgsldm Izupryd-sjl tg tgxli aetorlefs `urldm bls tlaoes ed odmldoor, igd`uitgr, ed` hrejo-aed wltb tbo igapedy crga 5>

  • 8/9/2019 The Jere Beasley Report, Jan. 2010

    16/40

    sovoro doij ausifo spesas. Hut doltborprg`uit bes hood epprgvo` cgr iblf-`rod ud`or 58 yoers gc emo cgr edypurpgso. Dovortbofoss, sgao petlodts,ldifu`ldm iblf`rod, ero roiolvldm tbo`rums cgr gcc-fehof usos, suib es igahet-ldm flah spestlilty ld iorohref pefsypetlodts, almreldos gr oxiosslvo seflve-tlgd. Ld Eumust, ector ovefuetldm ropgrts

    gc duaorgus e`vorso roeitlgds crgahgtb epprgvo` ed` udepprgvo` usos gcAyghfgi ed` Hgtgx, tbo C@Eeddgudio` tbet hgtb prg`uits wguf`ho roqulro` tg ierry e hfeij hgx

    werdldm.Pbo werdldm blmbflmbts ‖tbo pgsslhlf-

    lty gc oxporlodildm ZeQ pgtodtleffyflco-tbroetodldm `lstedt sproe` gctgxld‐crga tbo ldkoitlgd slto ectorfgief ldkoitlgd.‑ Ghvlgusfy, tbo provlgusfehof wes lde`oqueto. Hy tbo tlao tbo

    C@E roqulro` tbo igapedy tg up`etotbo Hgtgx fehof, tbo emodiy be` qulto ehlt gc ldcgraetlgd ehgut tbo pgsslhfosproe` gc tbo tgxld crga ldkoitlgd sltos.Pboro ero e duahor gc Hgtgx-rofeto`fewsults tbet bevo hood clfo` ld eduahor gc igurts ergud` tbo igudtry.

    Hoieuso gc tbo `rum“s pgpuferlty ed` wl`o-sproe` uso, es woff es tbo `ofeytbet ied giiur hotwood ed ldkoitlgded` tbo gdsot gc syaptgas, tboro wlfffljofy ho agro iesos clfo`. Pbo gdsot gcsyaptgas cgffgwldm Hgtgx ldkoitlgdsied tejo edywboro crga e cow bgurs tgsovoref `eys. Gctod porsgds wlff bevo emodoreflzo` woejdoss, gr cfu-fljo syap-tgas. Ld agro sovoro iesos, tboy bevotrguhfo hroetbldm ed` sweffgwldm ed`aey bevo tg ho put gd e aoibedlief

    vodtlfetgr ed` bevo e coo`ldm tuho putld. Ed edtl-tgxld ied igahet tbo hgtu-flsa, hut lt ls gdfy occoitlvo `urldm tboclrst 02 bgurs.Ygurio; Fewyors _YE Gdfldo

    ^ OXAER ED@ @ GYPLDOR FLPLMEPLGD B OEPY _ ̂

    ^oraex (^ormgfl`o Aosyfeto) ed`@gstldox (Iehormgfldo) woro ao`lie-tlgds uso` tg troet aeldfy petlodts wltb^erjldsgd“s @lsoeso ed` Xostfoss FomYyd`rgao. _dcgrtudetofy, fljo aedygtbor roiodt ao`lietlgds, tboso `rumsed` tbolr modorli oqulvefodts woro

    wltb`rewd crga tbo aerjot cgr ieusldm`eaemo tg petlodts“ boert vefvos. Ypoilc-lieffy, stu`los bevo sbgwd tbet ^oraexed` @gstldox eccoit tbo altref, egrtli,ed` trliuspl` boert vefvos hy ieusldm

    veryldm `omroos gc boert vefvo romurml-tetlgd (tbo heijwer` cfgw gc hfgg`eirgss tbo boert vefvos), gtborwlsojdgwd es vefvufer boert `lsoeso. Pbls

    giiurrodio ieusos tbo boert tg wgrjber`or tg puap hfgg` tbrgumb tboboert vefvos, wblib rosufts ld usorshoigaldm sbgrt gc hroetb ed` agrooeslfy cetlmuo` wbod pertlilpetldm ldpbyslief eitlvlty. Pbls `eaemo tg tboboert vefvos ied efsg foe` tg igdmostlvoboert celfuro, boert vefvo ropfeioaodt,gr `oetb.

    Ed uftresgud` gc tbo ibost, ieffo`ed oibgier`lgmrea, ls tbo host wey tg`otoraldo lc boert vefvo `eaemo gr

    romurmltetlgd oxlsts. _dfoss e petlodtoxblhlts slmds ed` syaptgas gc vefvu-fer boert `lsoeso gr bes be` provlgusboert vefvo lssuos, oibgier`lgmreasero rerofy gr`oro` hy troetldm pbysl-ileds. @uo tg tbo rofetlvo sierilty gcoibgier`lgmreas holdm uso`, tboroero aedy petlodts tbet bevo uso`^oraex gr @gstldox, hut ero udewerogc tbo `eaemo tbet tbolr boert vefvosaey bevo.

    Cgrtudetofy, cgr aedy gc gur ^oraexed` @gstldox iflodts, tboy woro ehfo tgbevo oibgier`lgmreas porcgrao` l`od-tlcyldm veryldm `omroos gc `eaemo tgtbolr boert vefvo, wblib rosufto` ldlaao`leto troetaodt. Lt bes efsg fo` tgsovoref fewsults holdm clfo` ergud` tboigudtry ldvgfvldm tbo `eaemo tbettboso `rums bevo ieuso`. Iurrodtfy, tboclrst ^oraex ieso ld tbo igudtry ls sotcgr trlef ld Aleal ld Aerib, 8>5>. Pbosoigd` ^oraex ieso ld tbo igudtry lssot cgr trlef ld Dgvoahor, 8>5>. Prlef`etos cgr e bed`cuf gc gtbor ^oraex ed`

    @gstldox iesos ero iurrodtfy pod`ldm. ]o igdtlduo tg metbor ovl`odio romer`-ldm tbo `edmors gc tboso `rums. ]ooxpoit tboso trlefs wlff bgf` tboso iga-pedlos rospgdslhfo cgr tbo ldkurlos tboybevo ieuso` tboso iflodts.

    Lc ygu doo` e``ltlgdef ldcgraetlgd gdtbls suhkoit, igdteit Deved ]er` ld gurclra et 2>>-290 gr hy oaelf etDeved.]er`Nhoesfoyeffod.iga.

    RL.H_YLDOYYFLPLMEPLGD

    C GX@ G X@OXO@ P G ^ E\ A ED $??.3 A LFFLGD L D ^ EPODP @ LY^_PO

    Keigh Jrlppofz bes wemò ed 55-yoerhettfo ld tbo igurts emeldst Cgr` AgtgrIg. gvor e flmbtldm systoa bo petodto`ld 5

  • 8/9/2019 The Jere Beasley Report, Jan. 2010

    17/40

    cgr Ietorplffer. Bo fetor gpodo` eaeibldldm husldoss tbet suppflos iga-pgdodts tg Ietorplffer ed` gtbor boevy-oqulpaodt aeduceiturors. Ld 5>. Pbo ceraors igdtod`o` tbet

    tboy fgst tbo ldigao wbod tbo rofoesoieuso` prlios tg iresb ed` `reldo` vefuo crga tbo 8>>3 irgp tboy bgpo`tg soff gvorsoes.Ygurio; Essgileto` ^ross

    RLL.ED _^@EPO GDYOI_XLPLOYFLPLMEPLGD

    A GXMED Y PEDFO\ ] LFF ^ E\ H EIJ $08A LFFLGD L D A GDPEDE

    E so tt foaodt be s hood roeibo `hotwood tbo Yteto gc Agdtede ed`Agrmed Ytedfoy & Ig., Ldi. romer`ldmeffometlgds tbet tbo igapedy alsfo`ldvostgrs. Ld tbo sottfoaodt, AgrmedYtedfoy bes emroo` tg prgvl`o flqul`ltytg Agdtede ldvostgrs wbg ldvosto` ldeuitlgd-reto soiurltlos hocgro tboaerjot cgr tbgso soiurltlos wes crgzodld Cohruery 8>>2. Pbo sottfoaodtldifu`os rosilsslgd tg Agdtede vlitlastgtefldm agro tbed $09 alfflgd ed` e$58>,>>> cldo tg ho `opgslto` ld tbosteto“s modoref cud`. Agdtede Igaals-slgdor gc Yoiurltlos ed` Ldsuredio,Agdlie Fld`ood eddgudio` tbo sottfo-aodt gd @oioahor 53 tb .

    Eiigr`ldm tg igapfeldts roiolvo`crga ldvostgrs tbrgumbgut tbo igudtry,Agrmed Ytedfoy alsroprosodto` eui-tlgd-reto soiurltlos (EXY) hy toffldm ius-tgaors tboy woro seco, blmbfy flqul`ldvostaodts igaperehfo tg agdoyaerjots. E auftl-steto ldvostlmetlgd wesigd`uito` rospgd`ldm tg effometlgdsromer`ldm tbo flqul`lty gc euitlgd-retosoiurltlos tbet Agrmed Ytedfoy ud`or-

    wrgto, aerjoto` ed` sgf` . Ldvostgrscurtbor effomo` Agrmed Ytedfoy jdowtbet ld 8>>= ed` 8>>2 tbo EXY aerjot

    wes `otorlgretldm ed` homed puribes-ldm e``ltlgdef ldvodtgry tg provodtcelfo` euitlgds.

    Es ygu aey jdgw, euitlgd-reto soiurl-tlos ero procorro` sberos gr `oht ldstru-aodts suib es igrpgreto gr audlilpef

    hgd`s. Pboy bevo e fgdm-tora aeturltyed` ero sgf` et agdtbfy gr woojfy eui-tlgds. _dtlf roiodtfy tbo EXYs worotroeto` hy aedy ldvostgrs es iesbldvostaodts. Hut wbod tbo euitlgd-retosoiurlty aerjot igffepso`, euitlgdsieao tg e beft, foevldm ldvostgrs wltbldvostaodts tbet iguf` dgt oeslfy hoigdvorto` tg iesb. Pbo sottfoaodtemrooaodt cldeflzos tbo eitlgds tejod

    emeldst Agrmed Ytedfoy es e rosuft gctbo ldvostlmetlgd.Ygurio; Ldsuredio Kgurdef

    RLLL.LDY_XEDIO ED@CLDEDIO _^@EPO

    EFFYPEPO ED@ EFCE @ XG^ ] LD@ I GSOXEMO L D I GEYPEF EFEHEAE

    Lt wes ropgrto` fest agdtb tbet Eff-steto Igrp. ed` Efce Autuef mrgup wlffiuaufetlvofy `rgp wld` igvoremo gd50,>>> bgaogwdor pgflilos ld Aghlfoed` Hef`wld igudtlos gvor tbo doxt 52agdtbs. Pbo iuts wlff eccoit es aedy es=% gc eff bgaogwdors ld tbo twg igud-tlos. Pbo agvos ero edgtbor hfgw tg Efe-heae“s igestef ldsuredio aerjot. YldioBurrliedo Lved, wblib blt ld 8>>0, Eff-steto, Efce ed` Yteto Cera Clro ed` Iesu-efty bevo oltbor `rgppo` gr pfeddo` tg`rgp wld` igvoremo, gr eff igvoremo, gddoerfy 05,>>> pgflilos.

    Effsteto wlff ossodtleffy stgp ldsurldmemeldst wld` `eaemo ld Aghlfo ed`Hef`wld igudtlos lc lt `rgps igvoremogd >> oxlstldm pgflilos. Yldio Burrl-iedo Lved, Effsteto bes eddgudio` cgur

    wevos gc iuts, tgtefldm 9>,>>> bgao-

    gwdors. Yteto gcclilefs sel` Effsteto wlffbevo cowor tbed ?>> wld` pgfliybgf`-ors ld tbo twg igudtlos. Efce, Efeheae“sDg. 8 prgporty ldsuror, wlff roteld sgaogc lts wld` pgfliybgf`ors ld Aghlfo ed`Hef`wld igudtlos. Lt wes ropgrto` tbet

    Efce wlff stlff igvor agro tbed $= hlfflgdld eff jld`s gc prgporty.

    Iuts tg Efeheae pgfliybgf`ors wlffepperodtfy tejo occoit es pgflilos igaoup cgr rodowef. Lt“s ostlaeto` tbls wlfftejo e yoer tg iyifo tbrgumb. Hy rufo,

    pgfliybgf`ors wbg ero fgsldm igvoremoaust ho dgtlclo` 58> `eys hocgrorodowef `etos. Iustgaors holdm`rgppo` woro sel` tg bevo hoodibgsod heso` gd fgietlgd, typo gc igd-struitlgd, eagudt gc igvoremo ed`gtbor ceitgrs.

    Yteto Cera, heso` ld Hfggaldmtgd,Lff., ls tbo gdfy tre`ltlgdef steto-romu-feto` ldsuror tbet bes hood eiioptldmdow husldoss ld Aghlfo ed` Hef`wld

    www.KoroHoesfoyXopgrt.iga 5=

  • 8/9/2019 The Jere Beasley Report, Jan. 2010

    18/40

    igudtlos ld roiodt agdtbs. Bgwovor,tbo steto“s fermost prgporty ldsurorflalts bgw aedy dow iustgaors lt

    wlff tejo. @lspfeio` pgfliybgf`ors aeybevo tg fggj tg surpfus fldos ldsurors,

    wblib ero flmbtfy romufeto`, gr tg tbo Efeheae Ldsuredio _d`orwrltldm Essg-iletlgd, tbo ldsuror gc fest rosgrtjdgwd es tbo ‖Hoeib ̂ ggf.‑ Hgtb tbgso

    gptlgds ero typlieffy agro oxpodslvotbed tre`ltlgdef aerjots. Pboro beshood e slmdlcliedt ldiroeso ld Hoeib^ggf pgfliybgf`ors. Pbo pggf e``o`efagst 2,>>> dow rosl`odtlef pgfliy-bgf`ors ld tbo 52 agdtbs od`o` ldGitghor, agro tbed `guhfldm ld slzo tg50,0>3 pgflilos.Ygurio; EF.iga

    P OREY K _X\ E ]EX@Y $=> A LFFLGD P G L DK_XO@ ] GXJOX

    Ygao ldsuredio igapedlos troettbolr pgfliybgf`ors auib wgrso tbedsoigd`-ifess iltlzods. E ieso ld Poxes lsed oxeapfo gc bgw sgao igapedlosgporeto. E aeldtodedio suporvlsgr wbgcoff wltb e ibeld sew wblfo trlaaldmtroos et e Yed Edtgdlg epertaodtigapfox slx yoers emg bes hoodewer`o` $=> alfflgd ld bls fewsultemeldst tbo igapfox“s ldsuredioigapedy. E Poxes kury cgud` tbet

    Iberfos Peto succoro` aodtef edmulsb wbod @lsigvor ^rgporty & IesueftyLdsuredio Igapedy `ofeyo` peyldmbla cgr bls robehlfltetlvo kgh treldldm.Pbo kury efsg cgud` tbet tbo Igddoitl-iut-heso` igapedy, efgdm wltb KL Ypo-ilefty Yorvlios, wblib e`aldlstoro`ifelas cgr @lsigvor, jdgwldmfy odmemo`ld ed udcelr ed` `oioptlvo eit.

    Gd slx sopereto giieslgds, tbo Poxes@opertaodt gc Ldsuredio“s wgrjors“igapodsetlgd `lvlslgd sl`o` wltb Peto,

    wbg succoro` sovoro doij ed̀ sbguf`orldkurlos tbet ae`o aeduef fehgr lapgs-slhfo. Pbo emodiy rufo` tbet bo be` erlmbt ud`or tbo few tg bevo tbo ldsur-edio igapedy pey cgr bla tg horotreldo` es e roef osteto emodt, e ieroorbo wedto` tg pursuo. Gc tbo vor`lit,$9> alfflgd wes cgr pudltlvo `eaemos.Ldsuredio igapedlos gd eff tgg aedygiieslgds troet tbolr pgfliybgf`orshe`fy. Pboy aust ho ae`o tg ho celr ld

    tbolr `oefldms wltb porsgds wbg bevo vefl` ifelas. Pbgaes Xbg`os, e fewyorcrga Yed Edtgdlg, roprosodto` Ar. Petoed` `l` e vory mgg` kgh.Ygurio; aysededtgdlg.iga

    @ XG]DLDM FE]Y_LPY C LDEFF\ Y OPPFO@

    Ld e fodmtby fomef hettfo, tbo cealfy gce Dow \grj kezz ausliled wbg`rgwdo` tryldm tg sevo e rehhl“s wlco ld`edmorgus rlptl`os gcc Aleal Hoeib

    wlff roiolvo $? alfflgd ld `eaemos. Pbo`oie`o-gf` ieso relso` sorlgus flehlfltylssuos cgr soesl`o igaaudltlos tbet`gd“t prgvl`o flcomuer`s et puhflihoeibos. Fest agdtb _.Y. @lstrlit Ku`mo

    Efed Mgf` gr`oro` @ofewero-heso`Agdtlioffg Ldsuredio Ig. tg pey`eaemos tg tbo wlco gc [eibery Hroeux.Pbo ldsuredio ierrlor be` rocuso` tgpey, ovod tbgumb tbo cealfy“s fewyored` tbo Ilty gc Aleal Hoeib be` domg-tleto` e sottfoaodt.

    Ku`mo Mgf` efsg gr`oro` tbo ldsur-edio igapedy tg pey $=?>,>>> ld`eaemos tg tbo bushed` gc Oumodlo^gfoyocc, e Dow \grj sibggf soirotery.Ybo wes tbo porsgd Hroeux trlo` tgsevo `urldm e al`wldtor veietlgd ld5?, tbo steto Yuproao Igurt cgud`tbet iltlos, fljo prlveto fed`gwdors,bevo e rospgdslhlflty tg werd hoeibmg-ors gc `edmorgus igd`ltlgds tbet erojdgwd gr sbguf` ho jdgwd.

    Yggd ector tbo `rgwdldms, tbo iltyoroito` e flcomuer` sted` et tbet hoeib.Pbo fewyor cgr tbo Hroeux cealfy igd-tod`o` tbet tbo ilty sbguf` bevo pgsto`slmds tbet tbls wes dgt e prgtoito`hoeib. Ector tbo Yuproao Igurt“s rufldm,Agdtlioffg, tbo ilty“s ldsuror, rocuso` tg`ocod` Aleal Hoeib. Yg ilty gcclilefs`oil`o` tg domgtleto e sottfoaodt wltbHroeux“s osteto ed` tbo osteto gc^gfoyocc.

    Ector tbo 8>>= sottfoaodts, tbo iltyed` tbo cealflos od`o` up gd gdo sl`ogc tbo fomef clmbt ed` tbo ilty“s ldsuror,Agdtlioffg, gd tbo gtbor. Pbo ilty

    wedto` tg `g tbo rlmbt tbldm ed` sottfo wltb tbo vlitlas, hut lt efsg hoieao e vli tla wbod Agdtlioffg ehed`gdo`tboa hy `odyldm hgtb igvoremo ed``ocodso. Ku`mo Mgf` gr`oro` Agdtlioffg

    tg pey dgt gdfy tbo `eaemos tg tboHroeux ed` ^gfoyocc cealflos, hut efsg tgrolahurso tbo ilty cgr lts $8>>,>>> ghfl-metlgd ud`or tbo sottfoaodts. Pbo ku`moefsg gr`oro` tbo ldsuror tg pey ldtorostgd tbo `eaemos es woff es ettgrdoys“coos ed` igsts cgr tbo `oie`o-fgdm ieso.Agdtlioffg iguf` stlff eppoef Ku`moMgf`“s rufldm.

    Aleal Hoeib Ilty fewyor Kgso Yaltbed` Bgwer` ^gaoredtz roprosodto`

    52 www.HoesfoyEffod.iga

  • 8/9/2019 The Jere Beasley Report, Jan. 2010

    19/40

  • 8/9/2019 The Jere Beasley Report, Jan. 2010

    20/40

    emeldst bor cgr relsldm igdiords ehgut`lsirlaldetlgd. Pbo kury roigaaod`o`tbet @r. Jrlstlde Morsztod ho ewer`o`$5.? alfflgd ld heij pey crga tbo _dl-

    vorslty gc ^lttshurmb Iedior Ldstltuto, wblib wgrjs ld ted`oa wl tb tbo_^AI Iedior Iodtors, es woff es$28=,8>2, effomldm tbet sbo be`hood `lsirlaldeto` emeldst hoieuso gcbor mod`or ed` rotefleto` emeldst cgraejldm tbo grlmldef igapfeldt tg bgspl-tef gcclilefs. Pbo kury cgud` dg ovl`odiogc sox `lsirlaldetlgd, hut lt `l` cld`tbet sbo wes rotefleto` emeldst wbodtbo _dlvorslty gc ^lttshurmb Iedior

    Ldstltuto celfo` tg blro bor es ao`lief`lroitgr et hgtb _^AI Yt. Aermerot ed`et lts ceilflty ld Detrgde Bolmbts.

    Ld e``ltlgd tg heij ed` crgdt pey, tbo vor`lit ldifu`os $8>>,>>> ld igapod-setgry `eaemos, es woff es $9>>,>>> ldpudltlvo `eaemos. Pbo kury cgud` tbetpudltlvo `eaemos sbguf` ho $?>>,>>>,hut ud`or few, tbo iep ls $9>>,>>>. Pboewer` gc pudltlvo `eaemos, wblib lsdgt typlief ld tboso iesos, seys tbet_^AI Iedior Iodtors vlgfeto` tbo fewld e aeflilgus wey.

    @r. Morsztod, 03, wes oapfgyo` es ere`letlgd gdigfgmlst wltb _^AI crga5=. Ector foevldm bor pgsltlgdes ao`lief `lroitgr cgr re`letlgd gdigf-gmy et Aemoo-]gaods Bgspltef ld Coh-ruery 8>>0, @r. Morsztod slmdo` etwg-yoer igdtreit ld wblib sbo trevofo`tg verlgus _^AI iedior iodtors ed`prgvl`o` igvoremo. Eiigr`ldm tg eigurt clfldm, _^AI sel` @r. Morsztoddomgtleto` bor sibo`ufo sg tbet sbo

    wguf` gdfy wgrj 52> tg 8>> `eys oeib

    yoer, tbgumb sbo wguf` ho igdsl`oro` ecuff-tlao oapfgyoo.

    Ld 8>>3, @r. Morsztod wes mlvod edow, gdo-yoer igdtreit et tbo _dlvor-slty gc ^lttshurmb Iedior Ldstltuto. Ld

    Keduery 8>>=, tbo Ldstltuto ibgso dgttg rodow. Es pert gc tbet igdtreit, @r.Morsztod sel`, sbo be` ed 52-agdtbdgd-igapoto ifeuso ed` wes foct

    wltbgut wgrj udtlf Keduery 8>>>9 Xbg`o Lsfed` dlmbt-ifuh clro sbguf` roiolvo ed evoremomrgss ewer` gc $8>8,>>> es tbolr sberosgc e $5=3 alfflgd sottfoaodt. E ropgrtrofetldm tg tbo sottfoaodt bes hood suh-altto` ld co`oref igurt. Pbo ropgrtrovlows `oetb ed` porsgdef ldkuryifelas crga tbo `gzods gc iblf`rodeccoito` hy tbo 8>>9 clro et Pbo Ytetlgddlmbtifuh ld ]ost ]erwlij, wblibjlffo` 5>> pogpfo ed` ldkuro` agrotbed 8>> gtbors. Pbo ropgrt wes pro-pero` hy ]lfflea ^ggro, e ^rgvl`odiofewyor eppgldto` tg igd`uit tborovlow, ed` tbo ropgrt“s roigaaod`e-

    tlgds aust bevo igurt epprgvef.Agro tbed 9>> survlvgrs ed` vlitlas“

    rofetlvos suo` ector tbo clro, wblibhomed wbod pyrgtoibdlis uso` es estemo prgp hy tbo 5s rgij hed`Mroet ]blto sot ehfezo iboep sgud`-prggcldm cgea gd tbo weffs ed` iolfldm.Pbo fewsults rosgfvo` ld ploioaoefcesblgd ld 8>>= ed` fest yoer, wltbsovoref `gzod @ocod`edts ldifu`ldmcgea aeduceiturors, hrowor EdbousorHusib, Ifoer Ibeddof Hrge`iestldm, tbo

    tgwd gc ]ost ]erwlij ed` tbo stetoltsofc oeib emrooldm tg sottfo. Pbgumbtbo fest @ocod`edt sottfo` agro tbed e

    yoer emg, lt“s dgt ifoer wbod tbo agdoy wlff ho ̀ lstrlhuto`.

    Cgrty-gdo iblf`rod ud`or 52, ldifu`ldme slx-yoer-gf` wbg wes ld utorg et tbotlao gc tbo clro, wlff roiolvo sberosredmldm crga $5=5,32? .00 tg$805,395.93, lc tbo igurt epprgvos tbosottfoaodt. Pbo evoremo mrgss ewer` cgr

    iblf`rod ld tbet ietomgry wguf` ho$8>8,>>>. Pbo emo gc tbo iblf` et tbo tlaogc tbo clro eiigudts cgr tbo wl`o redmo.

    Eiigr`ldm tg tbo ropgrt, vlitlas“ iblf-`rod wbg woro aldgrs et tbo tlao gctbo clro hut ero dgw e`ufts wguf`roiolvo ed evoremo mrgss ewer` gc$5??,=>>. Pbo sottfoaodt agdoy wlffho effgieto` eiigr`ldm tg e pgldt

    systoa tbet ewer`s tbo fermost sberos tgtbo pogpfo agst sorlgusfy ldkuro`, wltbsgao he`fy-hurdo` survlvgrs oxpoito`tg roiolvo auftl-alfflgd `gffer ewer`s.Iblf`rod wbg fgst gdo gr agro perodtsero mlvod e heso gc 8> pgldts, pfus gdopgldt cgr oeib yoer tboy woro ud`ortbo emo gc 52 et tbo tlao gc tbo clro.Iblf`rod wbgso perodts woro ldkuro`hut survlvo` ero efsg odtltfo` tg agdoyud`or e sopereto cgraufe tbet ewer`spgldts heso` gd tgtef ao`lief igsts.

    Ygurio; Ldsuredio Kgurdef

    I G_XP X _FLDM I FOEXY ] E\ C GX H GDCLXO FE]Y_LPY

    Pbo fest roaeldldm fewsults crga tbocetef 5

  • 8/9/2019 The Jere Beasley Report, Jan. 2010

    21/40 www.KoroHoesfoyXopgrt.iga 85

    lmdlto` tbo dlmbt hocgro E&A“s edduefcggtheff meao wltb lts eribrlvef, tbo_dlvorslty gc Poxes.

    Auib gc tbo `ofey wes gvor Poxes E&A“s ifela tbet lt ls laaudo crgafewsults hoieuso lt ls e steto odtlty. Pbo

    vlitlas `rgppo` E&A crga tbo fewsulttg spoo` aettors, hut twg pogpfo clfo`sult tg hrldm tbo sibggf heij ldtg tbo

    ieso. Pbolr ifelas be` hood hocgro tboYuproao Igurt sldio 8>>=. Fewsultscrga sovod cealflos ero dgw pod`ldm.Pbo fewsults, cgur crga cealflos gc tbo`oe` ed` tbroo crga cealflos gc ldkuro`survlvgrs, woro igdsgfl`eto` ldtg gdoieso ld e steto igurt.Ygurio; Eaorlied-Ytetosaed

    $?0 A LFFLGD E ]EX@O@ L D M XG_^ B GAO X E^O

    Ed Efhuquorquo kury roturdo` e$?0.? alfflgd `eaemo ewer` roiodtfyemeldst e boeftb sorvlios igapedyerlsldm gut gc tbo 8>>0 repo gc e prg-cgud`fy roter`o` aed. Pbo ewer`ldifu`o` agro tbed $0< alfflgd ldpudltlvo `eaemos. Pbo kurgrs woro voryupsot tbet tboso igrpgretlgds wguf`dgt eiiopt rospgdslhlflty cgr tbolreitlgds. Pbo vor`lit wes emeldstXosIero Dow Aoxlig ed` lts perodtXosIero Ldi., tbo Fgulsvlffo-heso` ldtor-

    detlgdef boeftb sorvlios igapedy.Pbo vlitla, wbg ieddgt spoej gr

    porcgra `elfy cuditlgds gd bls gwd, wes repo` wblfo flvldm ld IgffomoBguso, e mrgup bgao gporeto` hy gdogc XosIero“s Dow Aoxlig suhsl`lerlos.Pbo fewsult wes hrgumbt gd tbo vli-tla“s hobefc hy bls slstor. Kurgrs boer`tbroo woojs gc tostlagdy ehgut wbetbeppodo` tg tbo vlitla, tbo ectoraetb,ed` tbo rofetlgdsblp hotwood tboboeftb iero igapedy“s Dow Aoxlig

    gporetlgds ed` Jodtuijy boe`quertors.Pbo vor`lit igdslsto` gc $0.

  • 8/9/2019 The Jere Beasley Report, Jan. 2010

    22/4088 www.HoesfoyEffod.iga

    sots eppoers tg bevo rlsod. E toea crgatbo Iodtor cgr Ldkury Xosoerib ed`^gfliy et Detlgdwl`o Iblf`rod“s Bgspl-tef ld Gblg rovlowo` `ete crga 5>>oaormodiy rggas ed` ostlaeto` tbetehgut 50,=>> curdlturo-rofeto` ldkurlosgiiurro` oeib yoer hotwood 5>=‐efagst befc `uo tg tofovlslgdsots, tbo agst igaagd ertlifo ldvgfvo`

    ld tbo eiil`odts‐ed` rosufto` ld ehgut9>> `oetbs.

    Pbo rosoerib, puhflsbo` ld Gitghorld tbo kgurdef Ifldlief ^o`letrlis ,sbgwo` tbet tbo duahor ed` reto gcldkurlos tg ygudmstors crga ceffldm curdl-turo ldiroeso` slmdlcliedtfy gvor tboporlg`. Pbo reto modoreffy rgso crga52.2 por 5>>,>>> pogpfo ld 5>=, poejldm et 8?.= ld 8>>0. Eslalfer ropgrt crga tbo _.Y. Igdsuaor^rg`uit Yecoty Igaalsslgd fest yoer

    ostlaeto` 08,=>> ldkurlos ed` 52>`oetbs essgileto` wltb eppfledio, curdl-turo ed` tofovlslgd ldstehlflty ed` tlp-gvors crga 8>>> tg 8>>3: 2= gc tbo`oetbs ldvgfvo` tofovlslgds. Pboduahor rgso crga sovod ld 8>>> tg 89ld 8>>3.

    ^erodts sbguf` edibgr boevy tofovl-slgds tg tbo weff. Edibgrldm `ovliossbguf` ho sgf` efgdm wltb tbo sots. Pboseao ls truo wltb gtbor ploios gc curdl-turo tbet pgso e tlp-gvor rlsj. Pbo stu`yld`lietos tboro ls dg tgteffy seco wey tgput e fermo ploio gc curdlturo tbet ls etlp-gvor rlsj ld e bgao wboro iblf`rodflvo ed` pfey. ^erodts sbguf` efsg dovorput e roagto igdtrgf, tgy gr gtborodtlildm ghkoit gd e tofovlslgd sot,`rossor gr sbofc tbet e iblf` almbt try tgroeib.Ygurio; Essgileto` ^ross

    P BOXO EXO Y OSOXEF I G@OY P BEP E^^F\ P G ^ XOALYOY FLEHLFLP\ FLPLMEPLGD

    Gur clra bed`fos iesos tbet ldvgfvoldkurlos ed` `oetbs ld tbo ietomgry gcproalsos flehlflty fltlmetlgd. Uulto gctode ig`o tbet wes ld occoit et tbo tlao gctbo ldil`odt mlvldm rlso tg e fewsult wlffho vory lapgrtedt tg tbo gutigao gctbo ieso. Pbo eppfliehfo ig`o iguf`bevo hood tbo gdo ld occoit et tbo tlaoe struituro wes epprgvo` ldltleffy gr ettbo tlao gc edy ag`lclietlgds. @oslmd

    roqulroaodts ero vory lapgrtedt ldsuib iesos. Pbo cgffgwldm ero sgao gctbo ig`os tbet fewyors aust ho cealfler

    wltb lc tboy bed`fo proalsos flehlflty flt-lmetlgd;

    • Hulf`ldm ig`os ‐Pboso ied ho oltborLdtordetlgdef gr Hulf`ldm GcclilefsIg`o E`aldlstretlgd (HGIE) ig`os

    tbet sot roqulroaodts gd ltoas suibes bed`relfs, troe`s, rlsors ed` gtborigdstruitlgd `otelfs tg bofp odml-doors `otoraldo lc tbo struituro grfgietlgd wes igdstruito` ld eiigr-`edio wltb eppfliehfo ig`os.

    • Ea or lie d @l sehl fl ty Ei t (E @E)Xofeto` Ig`os ‐Ig`os suib es Eaor-lied Detlgdef Yted`er`s Ldstltuto(EDYL) tbet sots roqulroaodts cgr

    wefjldm surceio fovofdoss ld puhflied` igaaorilef speios.

    • Detlgdef Clro ^rgtoitlgd Essgiletlgd(DC^E) ‐Ig`os suib es tbo FlcoYecoty Ig`o (DC^E 5>5) wblib `ls-iussos `oslmds cgr oxlts ed` `lsiberm-ldm gc pogpfo crga speios.

    • Eaorlied Ygiloty cgr Postldm ed`Aetorlefs (EYPA) ‐Yted`er`s cgr tbopreitlio gc seco wefjldm surceiossuib es wot surceios, tlfo, wgg` ed`gtbor surceio aetorlefs.

    • Giiupetlgdef Yecoty ed` Boeftb E`aldlstretlgd (GYBE) ‐Fews tbet`lsiuss wefjldm surceio roqulroaodtsed` bezer`s.

    $0.= A LFFLGD Y OPPFOAODP L D I GDSODPLGD I ODPOX I GFFE^YO

    Pbo eutbgrlty tbet gporetos tbo @evl`F. Fewrodio Igdvodtlgd Iodtor ld ̂ ltts-hurm wlff roiolvo $0.=2 alfflgd crgaclras tg sottfo ifelas gvor e cfggr igf-fepso. Ld Cohruery 8>>=, e igdiroto sfehiresbo` tg e wefjwey ehgut 9> coothofgw wbod e treitgr-trelfor `rgvotbrgumb e fge`ldm eroe. Cgrtudetofy, dggdo wes ldkuro`, hut tboro wes troaod-`gus prgporty `eaemo. Pbo ilty-igudtyYpgrts & Oxblhltlgd Eutbgrlty epprgvo`tbo sottfoaodt gd @oioahor 52 tb . Ltclfo` e dgtlio gc ldtodt tg suo festsuaaor.

    Pbo clras sottfldm tbo ifelas ldifu`ostoof cehrlietgr E@C Mrgup, Xeceof

    Sldgfy Eribltoits ed` igdtreitgr @lijIgrp. Pbo eutbgrlty“s ldsuror, Pbo Prevof-ors Ld`oadlty Ig., wlff roiolvo $5.58?alfflgd crga igdtreitgrs. Pbo sottfo-aodt roprosodts ehgut % gc tbo fgssettrlhuto` tg tbo igffepso.Ygurio; Ldsuredio Kgurdef

    RSL.]GXJ^FEIOBE[EX@Y

    P OREY K _X\ E ]EX@Y H^ ] GXJOXY $5>>A LFFLGD L D FE]Y_LP

    E co`oref kury bes ewer`o` agro tbed$5>> alfflgd tg tod wgrjors wbg woroldkuro` ld 8>>= wbod e tgxli suhstedio

    wes rofoeso` et H^ ^FI“s Poxes Iltypfedt. Pbo kurgrs ewer`o` oeib igdtreit

    wg rjo r $5> alfflgd ld pudltlvo`eaemos. Dldo gc tbo wgrjors woroefsg ewer`o` hotwood $?,>>> ed`$5>,>>> cgr peld ed` succorldm ed`ao`lief oxpodsos, wblfo tbo todtb mgtagro tbed $80>,>>>.

    Es wo bevo ropgrto` provlgusfy, tborocldory, fgieto` ehgut 9> alfos sgutb-oest gc Bgustgd, wes tbo slto gc e 8>>?

    oxpfgslgd tbet jlffo` 5? pogpfo ed`ldkuro` 5=>. Lt wes tbo wgrst _.Y. ld`us-trlef eiil`odt sldio 5>? hfest, cgud` H^ cgstoro` he` aed-emoaodt et tbo pfedt ed` tbet igst-iut-tldm agvos hy H^ woro ceitgrs ld tbooxpfgslgd. Pbo kury“s ewer` efsg igaosector tbo Giiupetlgdef Yecoty ed`

    Boeftb E`aldlstretlgd ld Gitghorlapgso` e roigr` $2= alfflgd cldoemeldst H^ cgr celfldm tg igrroit secotybezer`s cgffgwldm tbo 8>>? hfest.

    Pbo wgrjors“ fewsult effomo` tbet ld Eprlf 8>>=, agro tbed 5>> igdtreitoapfgyoos et tbo pfedt woro sodt tgbgspltefs ector ifelaldm tboy worooxpgso` tg e tgxli suhstedio rofoeso`et tbo rocldory. Pbo wgrjors sel` tbolrldkurlos ldifu`o` `lzzldoss ed` sgro

  • 8/9/2019 The Jere Beasley Report, Jan. 2010

    23/40 www.KoroHoesfoyXopgrt.iga 89

    tbrgets, wltb gdo oapfgyoo pessldm gut,ector ldbefldm tbo suhstedio. Pbo

    wgrjors `l` dgt bevo edy fgdm-tora`eaemo tg tbolr fudms. @urldm tbo trlef,H^ ifelao` dg tgxli suhstedio wesrofoeso` et tbo rocldory gd tbo `eto ldquostlgd.

    Gdo gc tbo wgrjor“s mes aesjs westosto`. Pbo tost rovoefo` lt be` hood

    oxpgso` tg ierhgd `lsufcl`o, e tgxliigfgrfoss flqul`. H^ be` e he` secotyroigr`. Pbo igapedy bes e fgdm blstgrygc foejs ed` rofoesos. Pgdy Huzhoo, eBgustgd fewyor, roprosodto` tbo tod

    wgrjors ed` `l` e vory mgg` kgh.Ygurio; Ldsuredio Kgurdef

    RSLL.PXEDY^GXPEPLGD

    $=.5 A LFFLGD S OX@LIP X OP_XDO@ L D I GAELX I EYO

    E _.Y. @lstrlit Igurt kury ld Jodtuijybes roturdo` e $=.5 alfflgd vor`lit cgrtbo cealfy gc Hryed Joltb ]gg`wer`, eIgaelr Cflmbt ?5>3. ]gg`wer` wes 9< wbodbo `lo` ld tbo iresb. Bls wl`gw wes

    tbo gdfy cealfy aoahor gc tbo 0= pes-sodmors jlffo` ld tbo iresb wbg `l` dgtsottfo wltb tbo elrfldo igapedy.

    Pbo sult ieao ector tbo JodtuijyYuproao Igurt rufo` ld Gitghor tbet espguso aey suo cgr fgss gc pbyslief ed`oagtlgdef igapedlgdsblp, ieffo` fgssgc igdsgrtlua, ector tbo spguso“s `oetb.^rovlgusfy ud`or Jodtuijy few, espguso iguf` suo cgr fgss gc igdsgr-tlua lc bls gr bor spguso wes ldiepeil-teto`, hut dgt lc bo gr sbo `lo`. Pbo

    vlitla“s wl`gw wedto` tg mg tg trlefemeldst Igaelr hoieuso sbo wedto` tboelrfldo tg puhflify tejo tbo hfeao cgrtbo iresb.Ygurio; Jodtuijy Boref` Foe`or

    K _X\ E ]EX@Y $2< A LFFLGD EMELDYP @ X_DJOD @ XLSOX

    E kury ld Alssgurl bes ewer`o` $2<alfflgd ld `eaemos tg tbo cealfy gc e

    aed jlffo` ld e 8>>2 iresb wltb e`rudjod `rlvor, ed` tg tbo aed“sclediìo ed` `eumbtor. Pbo kury ifoerfysodt e aossemo gd `rldjldm ed` `rlvldm.Heso` gd ropgrts tbo kury wes voryudbeppy wltb `rudjod `rlvldm.

    Prgy [orde, wbg wes 8> yoers gf` ettbo tlao gc tbo iresb, wes efroe`y`rlvldm gd e ber`sblp fliodso ector e

    provlgus @]L. [orde“s hfgg`-efigbgffovof wes >.8>%‐woff gvor twlio tbofomef flalt tg ̀ rlvo. @oddls Xlomof Kr., 82,

    wes jlffo` ld tbo iresb ed` bls clediìo,Ibrlstldo Bg`mo, wes sorlgusfy burt.Pbo igupfo wes roturdldm crga e sbgp-pldm aeff wboro tboy be` romlstoro` cgrmlcts cgr tbolr upigaldm wo``ldm.

    Clvo agdtbs hocgro tbo iresb, [ordebe` hood errosto` ed` bls fliodso sus-pod`o` cgr bls ldvgfvoaodt ld edgtbor@]L-rofeto` wroij. [orde bes hood sod-

    todio` tg e tgtef gc tod yoers ld prlsgdgd @]L-rofeto` igdvlitlgds ldvgfvldmhgtb iresbos. Aerj Hrgdsgd, e fewyorcrga Yt. Fguls, roprosodto` tbo ^feldtlccsed` `l` e vory mgg` kgh.Ygurio; Yt. Fguls ^gst @lspetib

    Y EDPE X GYE ] LDOX\ P G ^ E\ $9 A LFFLGD P G P OOD L DK_XO@ L D @_L

    E Yedte Xgse wldory bes emroo` tgpey $9 alfflgd tg sottfo e fewsult

    hrgumbt hy e aed wbg wes porae-dodtfy `lsehfo` ld ed efigbgf-rofeto`ier iresb ld 8>>3. ^ere`lso Xl`mo

    ]ldory wes suo` hy Kgsbue Epg`eie,tbo pessodmor ld e ier `rlvod hy e5>,>>> ed`Hre`foy wlff pey ehgut $5>?,>>>. Pboagdoy crga tbo sottfoaodt wlff igvortbo igst gc flco-tlao iero cgr Epg`eie,ed` huy bla e bguso wltb `lsehlfltyeiigaag`etlgds. Pbo sorvlio gc

    efigbgf tg aldgrs et wo``ldm-rofeto`cuditlgds ls ed lapgrtedt lssuo.

    Pbo sult ergso crga tbo ovodts gc Kufy50, 8>>3, wbod Epg`eie ed` Hre`foyettod`o` e wo``ldm et tbo wldory.Hre`foy sel` bo wes sorvo` slx tg olmbthoors hy tbo wldory `osplto toffldm edoapfgyoo bo foct bls l`odtlclietlgd ldbls ier. ]bod tbo roioptlgd od`o`,

    Hre`foy ed` Epg`eie mgt e rl`o tg Hre`-foy“s perodts“ bgao. Gdio tboro, tbotwg `rgvo gcc tgmotbor ld e Yuheruso`ed, stgppldm et e =-Ofovod, wboroHre`foy wes sel` tg bevo hgumbt twghgttfos gc Aljo“s Ber` Foagde`o.

    Pbo iresb giiurro` oerfy tbo doxtagrdldm, e cow hfgijs crga Hre`foy“sbguso. Eiigr`ldm tg pgflio, tbo ier wesspoo`ldm wbod lt iresbo` ldtg troosed` e ro`wgg` codio. Hgtb aod be` tgho iut crga tbo wroijemo. Posts tejod

    et e bgspltef rovoefo` Hre`foy be` ehfgg`-efigbgf fovof gc .50%, efagsttwlio tbo fomef flalt. Bo wes igdvlito`gc `rlvldm ud`or tbo ldcfuodio ed`ieusldm hg`lfy ldkury ed` sodtodio` tgdldo agdtbs ld kelf ed` tbroo yoers“cgraef prghetlgd.

    Epg`eie, dgw 89, succoro` hreld ed`grtbgpo`li ldkurlos. Bls agtbor ed`mred`cetbor woro deao` hy tbo igurtes igdsorvetgrs gc bls osteto hoieuso gcbls `lsehlfltlos. Pbo sult wes grlmldeffyclfo` emeldst Hre`foy ed` bls perodts cgr`eaemos rofeto` tg tbo iresb. ^ere`lsoXl`mo ed` tbo =-Ofovod woro e``o`fetor es @ocod`edts. Ed eddulty ylof`ldmagdtbfy peyaodts wes puribeso` cgr

    Epg`eie. Gvor tbo igurso gc bls flco-tlao, lt ls oxpoito` tg pey gut $0.<alfflgd.

    Clroaed“s Cud` Ldsuredio Igapedyed` Altsul Yualtgag Ldsuredio Mrgup

    wlff pey tbo kury ewer` cgr tbo wldory.Pbo Hre`foys woro igvoro` cgr$5>>,>>> hy ed eutgaghlfo ldsuredio

    pgfliy ed` tbo =-Ofovod gwdors woroigvoro` ud`or e igrpgreto ld`oadltypgfliy. Ieflcgrdle few stetos tbet hers,

    wldorlos ed` gtbor fliodso` efigbgfpurvoygrs ero dgt rospgdslhfo cgr wbetldtgxlieto` petrgds `g gdio tboy wefjgut tbo ̀ ggr. Hut Epg`eie“s fewsult wesheso` gd tbo oxioptlgd tg tbls rufo,

    wblib ls e prgblhlt lgd gd sorvldmefigbgf tg ghvlgusfy ldtgxlieto`aldgrs. ^etrlij Oaory, e Yedte Xgse,

  • 8/9/2019 The Jere Beasley Report, Jan. 2010

    24/4080 www.HoesfoyEffod.iga

    Ieflc., fewyor, roprosodto` tbo ^feldtlccsed` `l` e vory mgg` kgh.Ygurio; Pbo ^ross @oagiret

    A ED ^ EXEF\[O@ L D A GPGX S OBLIFO EIIL@ODP E ]EX@O@ $00.< A LFFLGD

    E kury ld Foo Igudty, Cfe., ewer`o`

    $00.< alfflgd roiodtfy tg Moref` Efgle, wbg wes perefyzo` ld e 8>>3 agtgr voblifo eiil`odt. Pbo vor`lit ls gdo gctbo fermost ld tbo igudty“s blstgry. Ar.

    Efgle wes rl`ldm gd bls agtgriyifo ld8>>3 wbod bo wes struij hy e ier.Ygurio; Ct. Ayors Dows-^ross

    I EX I XEYB S LIPLA E ]EX@O@ $0 ALFFLGD L D Y _LP

    E ku ry ld Ke ij sgd Igud ty , Cfe. ,

    roiodtfy ewer`o` e ier iresb vlitlaagro tbed $0 alfflgd. Ars. Kuflo Joyos

    wes ldvgfvò ld e sldmfo-ier eiil`odt ld@oioahor gc 8>>3. Ybo wes rud gcc tborge` hy edgtbor `rlvor ed` bor voblifogvor igrroito` ed` cflppo` upsl`o`gwd. Ars. Joyos wes elr-flcto` tgCfgwors Bgspltef ld @gtbed, Efe., succor-ldm crga e hrulso` spldef igr` ed` ebedmaed“s creituro. Ector spod`ldmtlao et Cfgwors, sbo wes sodt tg e robe-hlfltetlgd ceilflty. Cgffgwldm bor stey

    tboro sbo wes sodt tg edgtbor bgspltefld Efeheae cgr surmory.Ars. Joyos dgw bes `lccliufty igd-

    trgffldm bor eras ed` foms. Ybo ls efsgudehfo tg wefj wltbgut e wboofibelrgr esslstedio crga sgaogdo ofso. Pbo`rlvor gc tbo gtbor voblifo wes dovorcgud`, ed` hoieuso gc tbet Ars. Joyos“sbguf` bevo hood igvoro` ud`or tboudldsuro` agtgrlsts igvoremo gc borldsuredio pgfliy. Bor ldsuredioierrlor wes Eaorlied LdtordetlgdefLdsuredio. E roprosodtetlvo gc Eaorl-ied Ldtordetlgdef tgf` Ars. Joyos rlmbtector tbo eiil`odt tbet tboy wguf`prgvl`o igvoremo.

    Ector e wooj-fgdm trlef, tbo kury rufo`cgr Ars. Joyos ed` bor bushed`. Gut gctbo agro tbed $0 alfflgd ewer`, $9.0alfflgd wes cgr pest oigdgali fgssosed` pest ed` cuturo ao`lief hlffs. Pboroaeld`or wes cgr pbyslief peld, succor-ldm ed` `lsclmuroaodt. _dtlf tbo eiil-`odt, Ars. Joyos wes tbo ieromlvor cgr

    bor bushed` wbg fgst bls fom ector e iereiil`odt heij ld 5>,>>> voblifos woro`rlvod hy sgaogdo usldm e ioff pbgdold 8>>2, tbet 3,>>> pogpfo `lo` ld `ls-treito`-`rlvldm-rofeto` voblifo iresbos,ed` tbet ?>>,>>> woro ldkuro`. FestYoptoahor, @r. @osplde Ytevrldgs, erosoeribor et _EH, ed` Xuss Cldo, ̂ b.@.,`lroitgr gc tbo _EH _dlvorslty Preds-pgrtetlgd Iodtor, grmedlzo` tbo suaalted` `l` e mroet kgh. Efeheae wes tboclrst steto tg rospgd` tg tbo Yoirotery“sibeffodmo tg homld e detlgdef `oheto gdtbo preitlio gc `rlvldm wblfo `lstreito`hy tbo uhlqultgus toibdgfgmy gc tg`ey.

    @lstreito` `rlvldm ls gctod oqueto` wltb `rudj `rlvldm. Lt wlff tejo e igdsls-todt igahldetlgd gc o`uietlgd, occoi-tlvo odcgrioaodt, e igaaltto`

    ku`lilery ed` igffoitlvo occgrts hy fgief,steto, ed` detlgdef e`vgietos tg put e`odt ld tbo prghfoa. Pbo ̀ edmor ls agst

    eiuto eagdm ygudm `rlvors wbg bevomrgwd up surrgud`o` hy bed`-bof`ofoitrgdli toibdgfgmy. Pbo ^owXosoerib Iodtor seys tbet =>% gc 53ed` 5= yoer gf`s e`alt tboy“vo hood lde ier wblfo tbo `rlvor wes toxtldm.

    Agst toods bevo hood toxtldm grusldm bed`-bof` ofoitrgdlis sldio tboy

    woro dldo gr tod yoers gf`. Pboy ero

    dgw mottldm hobld` tbo wboof gc e ier.Yoirotery FeBgg` gutfldo` stops tbetbo bgpos wlff hoigao pert gc tbodetlgd“s igffoitlvo `rlvldm rgutldo;^erodts doo` tg sot ifoer mrgud` rufoscgr toodemo `rlvors, ed` tbod odcgriotboa. Poods doo` tg oxort poor pros-suro ed` toff crlod`s tboy wgd“t rl`o

    wltb tboa lc tboy toxt. Oapfgyors doo`tg fot oapfgyoos trevof tg `ostldetlgds

    wltbgut ldtorruptlgd. Ed` eff gc us doo`tg uso sgao igaagd sodso ovory tlao

    wo mot hobld` tbo wboof gc e voblifo. E mrgwldm duahor gc stetos bevo fom-lsfetlgd pod`ldm heddldm `lstreito``rlvldm ld gdo cgra gr edgtbor. Pboldsuredio ed` tofoigaaudlietlgdsld`ustrlos ero odmemo` ld e soerib cgrsgfutlgds. Pbo Efeheae suaalt l`odtl-clo` e duahor gc prgalsldm evoduos tgaldlalzo tbo rlsjs gc `lstreito` `rlvldm,sgao gc wblib ero efroe`y ld tbo pfed-dldm stemos ld Efeheae. Pbo steto besesslmdo` rospgdslhlflty cgr e``rossldmtbo lssuo gc `lstreito` `rlvldm tg tbo

    Efeheae @opertaodt gc Oigdgali ed`Igaaudlty Eccelrs ed` tbo Yteto YecotyIggr`ldetldm Igaalttoo wblib bes`ovofgpo` ed Efeheae YtretomliBlmbwey Yecoty ^fed. @r. Cldo be` tblstg sey;

    Hoieuso gc tbo suaa lt, aedyagro pogpfo ld tbo prlveto soitgred` ld mgvordaodt bevo hoigaohottor ldcgrao` ehgut tbo `ls- treito` `rlvldm prghfoa. Gur mgefdgw ls tg igdtlduo tg ldiroesoewerodoss eagdm pgfliy ed``oilslgd aejors es woff es tbo

    modoref puhfli. ]o ldtod` tg jooptbo edtl-`lstreito` `rlvldm iea-

    pelmd mgldm tbrgumbgut tbo odtlroromufer 8>5> sosslgd gc tbo

    Efeheae Fomlsfeturo, gr udtlf ededtl-`lstreito` `rlvldm hlff ls

    slmdo` ldtg few hy tbo Mgvordgr,wblibovor giiurs clrst.

  • 8/9/2019 The Jere Beasley Report, Jan. 2010

    25/40 www.KoroHoesfoyXopgrt.iga 8?

    Pbo _EH-_PI wlff prgvl`o oeibaoahor gc tbo Efeheae Fomlsfeturo

    wltb ld`lvl`uef @S@ igplos gc tboprosodtetlgds ae`o et tbo suaalt.Pboy efsg ldtod` tg sot up e @ls-treito` @rlvldm Pboetor doer tboiepltgf ld Agdtmgaory, wboro fomlsfe-tgrs, tbolr steccs, ofoito`, eppgldto`ed` romufer ilvlf sorvlio oapfgyoos, es

    wo ff es ao aho rs gc tb o mo do re fpuhfli, ied vlslt ed` vlow @S@ igplosgc eff prosodtetlgds ed` pedof `lsius-slgds ae`o `urldm tbo suaalt. Gtboredtl-`lstreito` `rlvldm ldcgraetlgd

    wl ff ho eve lfe hf o ed` `l st rl hu to `tbrgumb tbo tboetor.

    J ODP_IJ\ H EDY Y PEPO ] GXJOXY C XGA P ORPLDM ] BLFO @ XLSLDM

    Jodtuijy Mgv. Ytovo Hosboer besheddo` steto oapfgyoos ld bls stetocrga sod`ldm toxt aossemos wblfo`rlvldm mgvordaodt-gwdo` voblifos.Mgv. Hosboer lssuo` ed oxoiutlvo gr`ortbet seys bo tggj tbo stop ld ed occgrttg ro`uio tbo duahor gc treccli eiil-`odts ieuso` hy `rlvor `lstreitlgd. Bosel` tbo steto ed` lts 90,>>> oapfgyoosdoo` tg sot ed oxeapfo cgr gtbor`rlvors.

    Pbo Mgvordgr“s gr`or `ocldos toxtldmes edy cgra gc ofoitrgdli `ete igaau-

    dlietlgd, ldifu`ldm roe`ldm gr odtorldm`ete ldtg bed`bof` gr gtbor ofoitrgdli`ovlios. Pbo gr`or seys tbet ldifu`osYAY toxtldm, o-aelfldm, ldstedt aossem-ldm, ed` ghteldldm devlmetlgdef ldcgrae-tlgd. Oapfgyoos ldvgfvo` ld puhflisecoty ero oxoapto` crga tbo hed. Mgv-ordgr Hosboer ls ieffldm tbo hed bls‖Oyos gd tbo Xge`““ occgrt.Ygurio; Ldsuredio Kgurdef

    RSLLL.BOEFPBIEXOLYY_OY

    C@E Y PLFF B EYD “ P L A^XGSO@ Y ECOP\ ECPOX S LGRR Y IED@EF

    Agro tbed tbroo yoers bevo pesso`ed` tbo Cgg` ed` @rum E`aldlstretlgdstlff besd“t rostruituro` lts stecc tg

    hottor agdltgr `rum secoty es roiga-aod`o` hy oxports ector tbo Slgxxsied`ef. Igdmrosslgdef ldvostlmetgrs seytbo C@E bes yot tg cgffgw tbrgumb gdibedmos summosto` ld 8>>3 tg bofp tboemodiy `otoit prghfoas wltb `rumstejod hy alfflgds gc Eaorlieds. Pbgsoroigaaod`etlgds ieao ector tbo `ed-morgus oplsg`o ldvgfvldm Slgxx. Es eff

    Eaor l ie dgw jdgws, tbo C@Eepprgvo` Slgxx ld 5>3,

    tbo MEG ae`o sgao spoilcli roiga-aod`etlgds tg tbo C@E.

    Pbo MEG ropgrt roqulros tbo C@E tgsot e tlaotehfo cgr tredscorrldm dowrospgdslhlfltlos tg tbo survolffediogcclio. @osplto e cgraef aoag hotwoodtbo gcclios `oslmdo` tg put tboa gdoquef cggtldm, tbo dow `rum gcclio stlffrotelds doerfy eff tbo pgwor gvor romufe-

    tgry `oilslgds, eiigr`ldm tg tbo ropgrt.Ld lts rospgdso tg tbo ropgrt, tbo C@Eseys aekgr `oilslgds ehgut `rum secotyero `ofometo` tg tbo dow `rums `lvlslgdhoieuso tbet ls ‖wboro stecc wltb tbohrge`ost oxportlso ed` oxporlodio‑ gdprg`uit secoty lssuos rosl`o.

    Pbo C@E ifelas tbet lt ldtod`s tg mlvotbo survolffedio gcclio agro rospgdsl-hlfltlos, hut gdfy ector lts doerfy 8>>oapfgyoos meld tbo oxporlodio ed`rosgurios doo`o` tg tejo gd tbgso

    tesjs. Pbo Gcclio gc Dow @rums besagro tbed > oapfgyoos. Eiigr`ldmtg tbo MEG, tbo duahor gc survolffediosteccors wguf` bevo tg `guhfo ldigaldm yoers tg eiigaag`eto tboe``ltlgdef wgrj holdm esslmdo` tg tboudlt.Ygurio; Essgileto` ^ross

    RLR.ODSLXGDAODPEF

    IGDIOXDY

    C O] ] EPOX Y \YPOAY EXO ^ _DLYBO@ C GX S LGFEPLDM Y ECO @ XLDJLDM ] EPOX E IP

    Agro tbed 8>% gc tbo detlgd“s wetortroetaodt systoas bevo vlgfeto` joyprgvlslgds gc tbo Yeco @rldjldm ]etor

    Eit gvor tbo fest clvo yoers, eiigr`ldmtg e Dow \grj Plaos edefysls gc co`oref`ete. Pbo Yeco @rldjldm ]etor Eit

    roqulros igaaudltlos tg `oflvor secotep wetor tg fgief rosl`odts. Hut sldio8>>0, tbo wetor prgvl`o` tg agro tbed0< alfflgd pogpfo bes igdteldo` lffomefigdiodtretlgds gc iboaliefs fljoersodli, gr re`lgeitlvo suhstedios fljouredlua, es woff es `edmorgus heitorlegctod cgud` ld sowemo.

    Xomufetgrs ero ldcgrao` gc tboso vlg-fetlgds es tboy ero `lsigvoro`. Hut romu-fetgry roigr`s sbgw tbet cowor tbed 3%

  • 8/9/2019 The Jere Beasley Report, Jan. 2010

    26/4083 www.HoesfoyEffod.iga

    gc tbo wetor systoas tbet hrgjo tbo few woro ovor cldo` gr pudlsbo` hy steto grco`oref gcclilefs, ldifu`ldm tbgso et tboOdvlrgdaodtef ^rgtoitlgd Emodiy,

    wblib bes uftlaeto rospgdslhlf lty cgrodcgrildm sted`er`s.

    Ytu`los ld`lieto tbet `rldjldm wetorigdtealdedts ero fldjo` tg alfflgds gcldstedios gc lffdoss ld tbo _dlto` Ytetos

    oeib yoer. ]bet“s agro, wetor pgffutlgdbes hoigao e mrgwldm igdiord cgr few-aejors hoieuso mgvordaodt gvorslmbtgc pgffutors bes wedo`. Ld sgaoldstedios, `rldjldm wetor vlgfetlgds

    woro gdo-tlao ovodts, ed` prghehfypgso` flttfo rlsj. Hut cgr bud`ro`s gcgtbor systoas, lffomef igdtealdetlgdporslsto` cgr yoers, roigr`s sbgw. Ededefysls gc O^E `ete hy tbo Dow \grjPlaos sbgws tbet Yeco @rldjldm ]etor

    Eit vlgfetlgds bevo giiurro` ld ovory

    steto. Hut, efagst dgdo gc tbgso systoas woro ovor pudlsbo`. Pbo prghfoa,eiigr`ldm tg iurrodt ed` cgraor mgv-ordaodt gcclilefs, ls tbet odcgrildm tboYeco @rldjldm ]etor Eit bes dgt hood eco`oref prlgrlty gvor tbo pest olmbt

    yoers.Xoiodtfy, tbo Yodeto Odvlrgdaodt

    ed` ^uhfli ]grjs igaalttoo quos-tlgdo` e blmb-redjldm O^E gcclilefehgut tbo emodiy“s odcgrioaodt gc`rldjldm-wetor secoty fews. Pbo O^E lsoxpoito` tg eddgudio e dow pgfliy cgrbgw lt pgflios tbo detlgd“s ?0,=>>

    wetor systoas. Ld ceit, O^E e`aldlstre-tgr Flse ^. Keijsgd bes efroe`yeddgudio` tbet sbo pfeds tg ldstltuto e

    wl`o-redmldm gvorbeuf gc tbo emodiy“sIfoed ]etor Eit odcgrioaodt prgmrea.Bgpocuffy, tbo dow e`aldlstretgr“srocgras wlff ̀ restlieffy ibedmo tbo weytbo O^E ldvostlmetos ed` prgsoiutos`rldjldm wetor vlgfetlgds ld gurigudtry. ]ltbgut quostlgd, tbo feste`aldlstretlgd prgvl`o` e porcoit

    oxeapfo gc wbet beppods wbod pgfltl-ief foe`orsblp celfs tg prgtoit gurboeftb ed` tbo odvlrgdaodt.Ygurio; Dow \grj Plaos

    E F GGJ EP P BO PSE I GEF EYB Y ̂LFF‐ G DO \ OEX FEPOX

    @oioahor 88, 8>>< aerjo` tbo gdo- yoer eddlvorsery gc tbo fermost ld`us-

    trlef eiil`odt ld _.Y. blstgry. Es wo bevoropgrto`, tbo Poddossoo Seffoy Eutbgr-lty splffo` gvor 5 hlfflgd meffgds gc igefigahustlgd westo gdtg gvor 9>> eirosgc fed` ed` ldtg tbo Oagry, Ifldib ed`Poddossoo Xlvors. Pbls `lsestor hrgumbttg tbo cgrocrgdt tbo doo` cgr strlitorgvorslmbt gd bgw tbo igef-clro` pgworld`ustry bed`fos lts westo. Ovl`odio

    bes igdtlduo` tg agudt sldio tbo splffld cevgr gc romufetldm igef esb westoed` igef igahustlgd westowetor.

    Ld ceff gc 8>>>=. @urldm tbet yoertbo _.Y. pgwor ld`ustry ropgrto`rofoesos gc gvor 8 alfflgd pgud`s gctgxli pgffutedts ldtg gur detlgd“s wetor-

    weys. Pboso duahors ero estgud`ldmed` lffustreto tbo strgdm doo` cgr romu-fetlgds gc igef igahustlgd westo ed`

    westowetor `lsibermos.

    Pbo ieff tg bgf` PSE eiigudtehfo cgrlts pgffutlgd igdtlduos tg mrgw. OL^lssuo` e soigd` ropgrt ld @oioahorodtltfo`, ‖Gutsl`o tbo Few; Xostgrldm

    Eiigudtehlflty tg tbo Poddossoo Seffoy Eutbgrlty.‑ Pbo ropgrt ieffs gd tboGheae e`aldlstretlgd tg prgsoiutoPSE cgr lts odvlrgdaodtef vlgfetlgds. Lde``ltlgd tg tbo ieffs crga odvlrgdaod-

    tef grmedlzetlgds, Igdmross bof`edgtbor boerldm ld Dgvoahor tg foerdagro ehgut PSE“s ifoedup eitlvltlos,O^E“s romufetgry pfeds, ed` tbo `lspgsefgc igef esb ld ^orry Igudty, Efe. @urldmbls tostlagdy hocgro tbo Bguso Preds-pgrtetlgd ed` Ldcrestruituro Yuh-Iga-alttoo gd ]etor Xosgurios ed`Odvlrgdaodt, Eitldm O^E Xomlgd LS

    E`a ld ls t re tgr Ytedfoy Aolhurmeijdgwfo`mo` tbet ‖tbo fgdmor ZtboesbQ slts tboro tbo agro gppgrtudlty

    ygu bevo cgr sgaotbldm tg beppod.‑ Ldceit, bo ilto` roiodt seapfos tejod ldtbo Ifldib Xlvor tbet sbgwo` ofoveto`ersodli fovofs.

    @urldm tbo seao boerldm, PgaJlfmgro, wbg ls IOG gc PSE, ropgrto`tbet ehgut twg-tblr`s gc tbo esb tbetsplffo` bes hood roagvo` crga tboOagry Xlvor ed` tbet PSE ls gd sibo`-ufo tg igapfoto tbo rlvor ifoed-up hysprldm gc 8>5> wltb tbo roaeldldmifoedup prgkoito` tg fest udtlf 8>59, ecuff clvo yoers crga tbo `eto gc tbo splff.

    Pbo Jldmstgd igaaudlty wlff igd-tlduo tg ho eccoito` hy tbo ectoraetb gctbo splff. Pbo ifess fltlmetlgd, ld wblibgur clra ls ldvgfvo`, soojs tg bgf` PSEtg lts prgalso gc ifoedldm up tbo Jldms-tgd igaaudlty igapfotofy ed` aejldmtbgso eccoito` wbgfo emeld. Lc ygu doo`e``ltlgdef ldcgraetlgd gd tbls fltlmetlgd,igdteit Xbgd Kgdos gr @evl` Hyrdo ldgur clra et 2>>-290 gr hy oaelf etXbgd.KgdosNhoesfoyeffod.iga gr@evl`.HyrdoNhoesfoyeffod.iga.Ygurios; Jdgxvlffo Dows Yodtldof, IbettedggmePlaos Croo ^ross, Odvlrgdaodtef Ldtomrlty ^rgkoit

    _ ̂ @EPO G D ̂ CI I GDPEALDEPLGD G D D GXPB EFEHEAE C EXAY

    Gur clra igdtlduos tg ldvostlmetoifelas gd hobefc gc Efeheae ceraorsed` gtbor prgporty gwdors eccoito` hyigdtealdeto` sowemo sfu`mo ld cortlf-

  • 8/9/2019 The Jere Beasley Report, Jan. 2010

    27/40 www.KoroHoesfoyXopgrt.iga 8=

    lzor ld Credjfld, Fewrodio, ed` Agrmedigudtlos. Es wo bevo ropgrto`, sowemosfu`mo uso` es cortlflzor wes sproe`gvor epprgxlaetofy ?>>> eiros gc cera-fed` ed` igdteldo` ofoveto` fovofs gcporcfugrgiboaliefs (^CIs)‐spoilcl-ieffy porcfugrggitedgli eil` (^CGE)ed` porcfugrggityf sufcgdeto (^CGY).Pbo igdtealdetlgd stoas crga ld`us-

    trlef gporetlgds ld tbo @oietur eroe, per-tliuferfy 9A, @ydogd, @eljod ed` PgreyCfurgclhors. Oeib gc tboso igapedlosropgrto`fy `lsibermo` westo ed` wetorldtg tbo @oietur _tlfltlos westowetortroetaodt pfedt. @oietur _tlfltlos igd-treito` wltb Yydemrg tg sproe` tbosfu`mo gd eroe ceras.

    Pbo igdtealdetlgd sperjo` e auftl-emodiy ldvostlmetlgd tg `otoraldo tbooxtodt gc ^CI igdtealdetlgd, ldifu`ldmpgtodtlef rgutos gc oxpgsuro ed` edy

    pgtodtlef boeftb occoits tg eroe rosl-`odts. Gd @oioahor 5, 8>>>> pph gr alirg-mreas/jlfgmrea) ed` ^CGY (3,>>> pphgr alirgmreas/jlfgmrea). Pboy cgud`^CIs ld 8?/83 sglf seapfos ld tbo@oietur eroe redmldm crga .5=-95= pphcgr ^CGE ed` 0.?-0>2 pph cgr ^CGY.Pbo seapfos efsg rovoefo` ofoveto`fovofs gc gtbor ^CIs, hut