April 16, 1999

Mattel Inc after reporting loss in first quarter, says it will dismiss more than 3,000 employees, or about 10 percent of its work force; company says it will start Internet business and might sell stake in it to public through stock offering later this year; plans to shut some factories and offices; reports loss of $17.9 million for quarter in contrast to net profit of $12.7 million a year earlier; revenue fell 2 percent, to $692.1 million from $705.2 million; Hasbro Inc reports 77 percent gain in net income and 38 percent rise in revenue; reports earnings of $13.8 million, up from $7.8 million; revenue reached $668.4 million; graph (M)

Jacqueline Frezza is shot and killed on Morningside Heights street when she tries to keep man on bicycle from stealing her purse; map (M)

Federal District Judge Joe Kendall orders pilots' union at American Airlines to pay carrier nearly $46 million for defying his order to return to work in February after hundreds of pilots called in sick in dispute that forced airline to cancel thousands of flights; assessment is greater than net assets of union; Allied Pilots Assn, union that represents American's 9,200 pilots, can appeal decision; Richard T Lavoy, its president, who is also held personally liable in case, does not say what union will do; Kendall feels it was duty to make decision but regrets that many decent pilots will be hurt (M)

Baltimore Orioles beat New York Yankees, 9-7; photo (M)

Edward F Stancik, Special Comr of Investigation for New York City's schools, announces resolution of case in which prominent Hasidic Rabbi, Hertz Frankel, and Brooklyn public school district conspired to place dozens of Hasidic housewives in no-show jobs on district payroll as part of plot to siphon more than $6 million to private Jewish girls' school and its affiliates; women got health insurance benefits for their families--some with as many as 10 children--but often handed their paychecks over to Rabbi Frankel; he gave most of money to school, Beth Rachel, in Williamsburg, which bills itself as largest Jewish girls' school in world; Frankel pleads guilty in Federal District Court, Brooklyn, to one count of conspiracy in scheme, which lasted from mid-1970's until 1994, two years after investigators were given first hints of its existence; Judge Eugene H Nickerson sentences Frankel to three years' probation and orders him to pay $1 million in restitution; case reviewed; Herzel photo (M)