February 2, 2000

Some of nation's top law firms have raised pay for associates by as much as 50 percent in last two weeks in demonstration of lure of power of Internet; move is most recent part of chain reaction that began last month in Silicon Valley, where firms have lost dozens of lawyers to dot-com start-ups, and is spreading to New York firms; lawyers are waiting to see whether other New York firms follow lead of Davis Polk & Wardwell, which has told its associates that it will match new Silicon Valley salaries; pay increases will allow first-year associates to earn as much as $160,000 a year; graph (M)

Four blacks and eight whites are impaneled as jury that will hear case against four white New York City police officers accused of murdering Amadou Diallo in Bronx; defense lawyers, in case fraught from beginning with racial tensions, repeatedly question blacks in jury pool about their attitudes on race; trial was moved to Albany County, which is largely white, after defense lawyers requested change of venue; opening arguments will begin on Feb 2; photo (M)

Consulting firm Bain & Co has established Bridge Group, a general-purpose strategic consulting firm that will help nonprofit companies for a fee; its aim is to complement piecemeal, pro bono approach that Bain and others have long taken toward helping nonprofits solve management and logistical problems; group will offer consistent, sustained advice that has helped big business wring more profit out of each invested dollar; it will also enhance quality of help provided by plethora of nonprofit consultants; origins of Bridge Group discussed; graph; photos (M)

William Grimes comments on fabulous crepinettes served at Palladin restaurant in Manhattan; photo (M)

Mike Freeman Sports of The Times column discusses arrest of Baltimore Ravens football player Ray Lewis for murder in Atlanta, Ga (M)

Amanda Hesser describes how to make great hot chocolate, sweet and bitter, frothy and hot; recipes; photos (L)

House votes, 341 to 70, to expand military ties between Taiwan and US, move that China and Clinton administration warn could aggravate regional tensions and jeopardize landmark trade agreement; critics say bill will upset Washington's 'one China' policy, which treats Taiwan as part of China and recognizes Beijing as China's capital, but also allows US to provide Taiwan with defensive weaponry; senior Republicans, led by Rep Tom Delay, choose security measure as first major bill for floor consideration this year precisely because it will challenge China (M)

Marian Burros comments on handful of specialty markets in Manhattan that are still doing business they way the old way, specialists in a generalist's world; describes scene at Di Palo Fine Foods on Grand Street, Faicco's Pork Store on Bleecker Street, Poseidon Bakery on Ninth Avenue, Russ & Daughters on East Houston Street, and William Poll, on Lexington and 75th Street; photos (L)

Aetna, nation's biggest health insurer, says it is restating earnings for seven quarters of 1998 and 1999 at request of Securities and Exchange Commission; commission does not object to accounting arrangements that softened impact on earnings after Aetna bought Prudential Healthcare last summer; analysts say announcement lifts one of several clouds that had depressed Aetna stock, which has declined almost 40 percent in last 12 months; SEC asked company to change its accounting for 1997 sale of its mental health managed care unit to Magellan Health Services; change will reduce after-tax earnings this year by $39 million, about 4 percent of projected earnings per share (M)

Sen John McCain wins Republican presidential primary in New Hampshire, receiving 49 percent of vote to 31 percent for Gov George W Bush with 97 percent of vote counted; Steve Forbes receives 13 percent of vote, Alan Keyes 6 percent and Gary L Bauer 1 percent; surveys find that most crucial factor among McCain's backers is that they view him as candidate of unshakable character who is willing to stand up for his convictions; results leave McCain with 40,000-vote edge over Bush in nation's first primary that drew over 225,000 voters; outcome stuns Bush and his advisers; graph; photo (M)

Seeking to protect the slim majority that they hold in the State Senate, Republican leaders have been steering their house in a moderate direction on several issues, from health care and abortion rights to lobbying reform. The maneuvering has surprised and angered many conservatives within the party and has placed Senate leaders in direct conflict with Gov. George E. Pataki. Article, Page B5

Master of disguise leads police on deadly chase. Visually stylish genre jumble.