New York Knickerbocks defeat New Jersey Nets 95-71; photo (M)

Knicks at Home Beating the Nets Across the River

Critical Path, once highflying provider of corporate e-mail systems, suspends company president David Thatcher and William Rinehart, a vice president, two weeks after issuing dreary quarterly earnings; company's board has discovered transactions that put into question financial results; Nasdaq halts trading in company's stock, and company begins internal investigation into its financial practices (M)

Critical Path Suspends 2 Executives and Starts Financial Inquiry

Four days before Israelis vote, Bill Clinton appeared on television and indirectly endorsed the underdog, Prime Minister Ehud Barak, by praising his peacemaking. Page A3.

A Different Campaign Trail

 U.S. Unemployment Rate Jumped to 4.2% in January  Responding to a slowing of the economy, the unemployment rate jumped in January to 4.2 percent -- the highest level in 15 months -- as the number of jobs in manufacturing continued to shrink, the Labor Department reported.    But the vast service sector, bucking the ebbing tide in American industry, produced enough new jobs to clearly suggest that the overall economy has not tipped into recession. And consumer confidence, which fell sharply in December and early January, appeared to stabilize by the end of the month, according to the latest survey by the University of Michigan's Consumer Research Center. [Page A1.]

BUSINESS DIGEST

 Decline in Illegal Migration  Fewer Mexicans seem to be trying to sneak into the United States as patrols grow stronger and other dangers more intense.   PAGE A5    Bush and Democrats Meet  President Bush met separately with Senate Democrats and Republican members of Congress to outline his hopes for this year, including deep tax cuts.   PAGE A10

INSIDE

Big American investment banks dispatch their best advisers, syndicators and underwriters to London, as European merger activity surges there; Amy Butte, analyst for Bear, Stearns, forecasts that European capital markets would grow 20 percent this year, twice what she expects in United States; much of growth will come as European companies sell stock, issue bonds and take out loans to finance takeovers they believe they need to compete in increasingly borderless world; photo; graphs (M)

American Bankers Invade Europe

Ira Berkow Sports of The Times column discusses XFL Football, bone-crushing, no-holds-barred game that evolved from idea by Vince McMahon of World Wrestling Federation fame; photo (M)

Sports of The Times; Ready or Not, Fans Get Hit With XFL

Clyde Haberman NYC column comments on information that has come to light about sign stealing during 1951 pennant race, which was capped by New York Giants Bobby Thomson's fabled home run off Brooklyn Dodgers pitcher Ralph Branca to win 3d game of playoff series and capture pennant (M)

A Debunker? Just Call Me A Schlemiel

Major conflict looms in New York City Council as at least 22 of 50 members are sponsoring bill to overturn term limits policy; bill seeks to bypass desires of city's voters, who have twice supported measures establishing two-term limits on all elected officers, from mayor to Council members; 20 co-sponsors of bill face term limits by end of year; several say they will not seek re-election even if bill is enacted, but others want to return to position that has paid salaries and formed identities over years; they say term limits eliminate Council's institutional knowledge, damage delicate legislative process and thwart efforts of minority members to rise to positions of power; say they have legal power to pass local law to turn back referendums (M)

Civil War Brews in City Council Over Bill to Overturn Term Limits

Diane Von Furstenberg and Barry Diller married yesterday at City Hall.  Article, Page B2.

A Relationship Sealed

New Jersey Atty Gen John J Farmer Jr will pay nearly $13 million to settle lawsuit arising from state's most explosive racial profiling incident, in which several young minority men were shot and wounded by state troopers during 1998 traffic stop; throws out criminal charges against 128 other defendants who claim their arrests were racially tainted; settlement ends civil rights lawsuit by four black and Hispanic; April 1998 incident on New Jersey Turnpike recalled; case turned state police practice of singling out minorities for traffic stops and searches into perhaps nation's premier civil rights issue, and revealed for first time how pervasive practice was nationwide; photo (M)

NEW JERSEY AGREES TO PAY $13 MILLION IN PROFILING SUIT

Sharp drop in technology shares pulls stock markets lower, as Nasdaq loses 122.29, or 4.4 percent, to close at 2,660.50; Dow Jones industrials drop 1.1 percent, or 119.53, to 10,864.10; 1.8 percent loss in Standard & Poor's 500-stock average leaves it at 1,349.47, down 24 points; soft bond prices cause yield on 10-year Treasury note to rise to 5.14 percent, as it loses 17/32 to 104 17/32; 30-year Treasury bond falls 23/32 to 110 24/32 and yields 5.51 percent; graph; list of key rates (M)

Technology Dampens Stocks as Job News Sends Mixed Signals

Stanford men's basketball team has perfect season so far and university has become top recruiting school in recent years; photo (M)

Acing the College Boards

Quinnipiac University poll shows progress in efforts to mend New York City Police Department's relationship with minorities; majority of blacks and Hispanics still say they disapprove of how police do their job, but number that approve has grown since last survey; change may be attributed partly to Commissioner Bernard Kerik, who has visited churches and community meetings in minority neighborhoods, as well as to long time lapse since last high-profile allegation of police brutality; graph compares responses of minorities and whites in Jan 2001 and April 2000 (M)

Poll Reveals Higher Marks For the Police

Vice Pres Dick Cheney assembles powerful parallel White House staff, including mini-National Security Council and domestic policy team, to support his formidable role in shaping Bush agenda and brokering it on Capitol Hill; has hired seasoned former Pentagon officials and diplomats, raided Congress to pluck some of most respected legislative aides, tapped veteran lobbyist and government lawyer David Addington to be counsel and picked House Speaker J Dennis Hastert's son to be staff assistant; about 15 regional and military chiefs will advise him on foreign and national security affairs; staff is closely integrated with Pres Bush's White House team and numbers about 50 people; described (M)

CHENEY ASSEMBLES FORMIDABLE TEAM

CBS reality series, Survivor: The Australian Outback, scores huge ratings success on February 1, bringing in almost 30 million viewers and particularly strong ratings among young people; performance defies predictions that reality-show genre may soon play itself out; reinforces expectation of network executives that genre will become more dominant part of prime time programming in near future; broad implications of ratings success for network television discussed; ratings successes of other shows with similar formats noted; photo (M)

Successes of Reality TV Put Networks in 'Survivor' Mode

New York Yacht Club celebrates 100th anniversary of building where it is housed with series of lectures and black-tie dinner dance; founding of club and its history and members discussed; photo (M)

Landlocked Berth for Boat Lovers; New York Yacht Club Spruces Up Its Grand Home And Finds It Can Thrive Without America's Cup

New York Yankees shortstop Derek Jeter awaits final touches on his $189 million contract, which mostly likely would ensure that he would play his entire career in New York; photo (M)

For Jeter, the Magic Number May Be $189 Million

Thousands of videotapes secretly recorded and left behind by Peru's exiled spy chief Vladimiro Montesinos have become national obsession, shaking elite to its core, stunning mesmerized public and feeding deep popular suspicion and cynicism; document most closely guarded secrets of Pres Albert K Fujimori's rule, namely, corruption and sexual hijinks of country's most powerful people that were used to blackmail and control virtually entire political establishment; testify to corruption and dissolution reaching into highest levels of Army, Legislature, Supreme Court, business community and news media; leave virtually no quarter of power unsigned; show Montesinos and aides bribing and giving directions to wide array of officials; have already damaged campaigns of several leading candidates in April election to succeed Fujimori; promise to define political landscape for at least months to come and perhaps permanently transform how politics is conducted in country, which is important regional ally of US; photos (M)

Tapes Spy Chief Left Behind Scandalize Peru

Family loyalty and distrust of child welfare system played role in keeping Linda Harley's abuse of her two sons Clarence and Ernest hidden from authorities; Ethel Sexton, boys' great aunt, announces she is suing New York City Administration for Children's Services for gross negligence, holding that signs were evident that boys should not have been returned to their mother from foster care, but agency says family should have called when they first suspected abuse; photo (M)

Loyalty and Distrust of System Helped Keep Abuse Hidden

A grieving family hopes to replace a lost child. A genetics-obsessed sect dreams of achieving immortality. Is this how human cloning begins? A report by Margaret Talbot in The Times Magazine.  

A DESIRE TO DUPLICATE

Residents of Buchanan, NY, home of Indian Point nuclear power plant, are steadfast in their defense of plant, which started up in January following accident that precipitated temporary shutdown; say it has provided tax benefits and jobs, helping to preserve socioeconomic standard and diversity; Sen Charles Schumer and County Exec Andrew Spano cease their push for shutdown, saying NRC representatives have persuaded them of plant's safety; photo (M)

A Village Still Stands By Its Nuclear Plant

Labor Department reports unemployment rate rose in January to 4.2 percent, responding to slowing of economy; reports huge service sector nevertheless bucked ebbing tide in American industry to produce enough jobs, clearly suggesting that economy has not tipped into recession; graphs; photo (M)

Unemployment Grew to 4.2% During January

Xerox begins discussions with several leveraged-buyout firms about selling certain assets or, perhaps, entire company; company is $16.4 billion in debt; it has $1.4 billion in cash on hand, but it has exhausted $7 billion line of credit; analysts doubt any buyer would be willing to take on Xerox's debt (M)

Xerox Weighs Possible Sale Of Some Units

Former Pres Bill Clinton and wife Sen Hillary Rodham Clinton will will pay for $86,000 in gifts received in 2000, and Clinton's presidential foundation will share cost of new office space in Manhattan; issue statement following days of widespread criticism and as Clinton steps up defense of pardon of fugitive financier Marc Rich; Rich's wife Denise is among 27 gift-givers to be repaid; Clinton's issue joint statement that move is effort to remove any suggestion of impropriety; list of donors and gifts (M)

Clintons Agree To Reimburse 27 Gift Givers

Tre'shaun Albert Mann is an American professional basketball player for the Charlotte Hornets of the National Basketball Association (NBA). He played college basketball for the Florida Gators.

Tre Mann, American basketball player

Tre_Mann

Rhys Williams is an English professional footballer who plays as a defender for Premier League club Liverpool.

February 3, 2001

Headlines from February 3, 2001

Knicks at Home Beating the Nets Across the River

Critical Path Suspends 2 Executives and Starts Financial Inquiry

A Different Campaign Trail

BUSINESS DIGEST

INSIDE

Billboard 200

1

Hotshot

Save The Last Dance

Now 5

Human Clay

Notable Births

Historical Context for February 3, 2001