Pilots at Germany's Lufthansa Airlines announce plans to strike 12 hours on May 4 and block flights every Friday for next four weeks if they cannot reach agreement for wage increases; graph (S)

World Business Briefing | Europe: Germany: Air Strike Planned

Milton McFarlane, second-grade teacher at PS 78 in Baychester section of Bronx, NY, is arraigned on charges arising from accusations of sexual advances toward children; similar allegations were made against him three years ago, but school officials did not inform police at that time; at his arrest, McFarlane told police he is infected with HIV virus and officials will seek approval for blood test; photo (M)

More Sexual Allegations Emerge Against Teacher in Bronx

Deutsche Bank says first-quarter net income rose 7 percent, to $920 million (US) (S)

World Business Briefing | Europe: Germany: Profit Up At Bank

Britain's Scottish Power PLC outlines restructuring program that focuses on expansion in US, as it reports fourth-quarter profit decline of 15 percent, to $892 million (S)

World Business Briefing | Europe: Britain: Utility's Profits Fall

Budget submitted by Mayor Rudolph Giuliani of New York has potent impact on Democratic mayoral primary camaign; it is factor in issues candidates are addressing and confines them in discussions of spending; it is seen as attempt by Giuliani to influence contest and handcuff his successor (M)

Political Memo; Potent Tool To Tip Race For Mayor: New Budget

Floyd Norris comment on Financial Accounting Standards Board's plan to reform accounting for mergers; says if approved, no merger annoucned after June 30 will be able to use pooling of interests accounting, meaning companies will no longer be able to keep costs of acquisitions from showing up on their balance sheets; holds changes also include adjustments for way other merger accounting technique, purchase accounting, is applied; says board has come up with method that will be costly for companies to apply and less useful for investors than would obvious alternative; graph (M)

A New Accounting Rule May Set Up Some Big Baths

Allan Kozinn preview of music, dance and other programs at Makor, eclectic Jewish cultural center in Manhattan; photos (M)

Many-Colored Coat of Arts

Rebellious mothers in Scarsdale declared a victory yesterday in their insurgency against state standardized tests, having carried out the first of several planned test boycotts with the precision and organization of a military exercise.   

Scarsdale Parents Call Test Boycott a Success

Detroit's share of US truck sales continues to decline as Japanese and other foreign companies promote new models; photos; graphs; demographic charts (M)

Trucks, Detroit's Meat and Potatoes, Acquire a Foreign Flavor

Paris court voids $7 billion friendly bid by Schneider Electric SA to acquire family-controlled rival, Legrand SA, major blow against European practice of structuring companies with multiple tiers of stock; court says it struck down deal because arrangement valued ordinary Legrand shares, which have voting rights, far more generously than Legrand preferred shares, which have privileged dividend but not voting rights (M)

Multitiered Stock Plans Dealt Blow In France

Philippine exports fell 0.5 percent in first quarter, to $8.5 billion; economists say export slowdown is sure to hurt country's economic growth; government has set growth target of 3.8 percent (S)

World Business Briefing | Asia: Philippines: Exports Fall

 British Banks to Merge In Deal Worth $26 Billion  The Bank of Scotland and the Halifax Group have agreed to merge. The deal, worth about $26 billion, is expected to be announced today.    The combined entity would become the fifth-largest bank in Britain and control roughly one-fifth of the mortgage market there and one-third of Scottish banking and have 25 million customers, analysts said. [Page C2.]

BUSINESS DIGEST

Hyundai Motor Co says first-quarter income rose 28 percent, to $213 million; sold 211,000 vehicles overseas in quarter, up 10.7 percent, while number of vehicles sold in South Korea declined 6.7 percent, to 162,00) (S)

Hyundai Attributes Income Rise To Demand for Its Big Vehicles

Julie Salamon Critic's Notebook on HBO documentary series America Undercover, which tackles unsettling issues such as mental illness and child molestation; photos (M)

Safe on the Outside (Or So You Think)

Justice David Tysoe of Supreme Court of British Columiba upholds victory by US-based Metalclad Corp that claimed government of Mexico violated investor-protection rules in North American Free Trade Agreement; overturns important parts of international arbitration panel's decision concerning standards of transparency, or rights of investors to have their investments governed by clear and consistent regulations and rules; keeps in place arbitration panel's decision that actions taken by Mexico to prevent Metalclad from opening hazarous-waste processing plant in San Luis Potosi in 1995 amounted to expropriation of company's investment; panel ordered Mexico to pay Metalclad $16.7 million in compensation (M)

Judge Issues Split Decision in Nafta Rules Case

Photo of scene from new play Madame Melville

An Unexpected Education

FBI arrests two Lucent Technologies employees, Hai Lin and Kai Xu, and Yong-Qing Cheng, manager at Village Networks, another New Jersey technology company, on charges they conspired to steal Lucent trade secrets and pass them on to Datang Telecom Technology Co, which is controlled by Chinese government; prosecutors say men formed venture called ComTriad Technologies that planned to sell technology developed by Lucent that allows companies to handle traffic on advanced telecommunications networks; says ComTriad received $1.2 million in financing from Datang Telecom in exchange for 51 percent stake in company (M)

F.B.I. Says 3 Stole Secrets From Lucent

New York Knickerbockers Latrell Sprewell is angry about loss to Toronto Raptors, but says he is confident going into deciding game of series; photo (M)

Sprewell Turns His Anger Into a Flash of Inspiration

Air Canada to take stake in owner of Roots Air and convert struggling six-week-old airline into low-fare carrier; reports first-quarter loss of $109 million (US) (S)

World Business Briefing | Americas: Canada: Airline Stake

New York City's United Federation of Teachers signals that it may accept version of incentive pay that awards all teachers and other staff members at a school merit pay if students show overall improvement; Mayor Rudolph Giuliani wants union to accept individualized merit pay which, he says, would reward teachers for exceptional performance and encourage others to improve; union's move could end negotiating stalemate of last several months and serve as basis of contract; could become model for country as well (M)

Union Signals Softer Stance On Merit Pay

George Vecsey Sports of The Times column comments on Rick Pitino, whose horse A P Valentine will run in Kentucky Derby; Pitino used to coach University of Kentucky's basketball team and some Kentucky officials are angry that he is now coaching at rival University of Louisville; photo (M)

Sports of The Times; Pitino Says Racing Is For Laughs

Many banks are promoting their safe and steady returns to try to persuade customers to keep more money with them, now that stock profits have turned to losses for many investors; some banks are offering free checking or higher rates on money market accounts; others are pushing more convenient hours or better service; graph; photos (M)

Banks to the Rescue; Many Think the Time Is Ripe To Lure Savers

Thirteen institutions will gain control of endowments totaling $1.7 billion from foundations built on vast Reader's Digest fortune; agreement to be announced by Atty Gen Eliot L Spitzer will dissolve structure investigated by his office, which brought institutions $900 million over past two decades but deprived them of chance to earn millions more under procedures that benefited Reader's Digest; endowment gifts are heavily invested in Reader's Digest stock; at issue are restrictions that impeded selling of Digest stock, even as shares plummeted in 1990's; arrangement buttressed Reader's Digest at turbulent time; state charities law forbids fiduciaries like directors and officers of foundations from using donor's gift for purposes unrelated to charity; charts (M)

13 Institutions Obtain Control Of Vast Bequest

Toronto Maple Leafs defeat New Jersey Devils in Game 4 of Eastern Conference playoff, 3-1; series is tied at 2 games each; fighting mars game; Toronto's Tie Domi, who hits Scott Niedermayer of Devils with elbow just before game ends, receves match penalty and immediate suspension; Niedermayer is injured; photo (M)

Devils Return Home Bloodied and Battered

Article in series, The Census, examines Selinsgrove, Pa, one of towns across nation where demographics have remained same over last decade, even as rest of country undergoes substantial changes; Selinsgrove's population of 5,383 is one person less than it was 10 years ago; it remains 93 percent white; census indicates it has 72 more Hispanics than it did in 1990, for total of 157; it has 119 more black people, for total of 147; and 24 more Asians, for total of 54; most members of minorities are students of small university or residents in subsidized housing complex; history professor in town sees nascent diversity occurring within borough, however slowly; photos; map; chart (L)

THE CENSUS/Pennsylvania; As Diversity Sweeps Nation, A Placid Town Is Unchanged

Bonny Lee Bakley was the second wife of actor Robert Blake, who was her tenth husband. Bakley was fatally shot while sitting in Blake's parked car near a restaurant in Studio City in May 2001.

May 4, 2001

Headlines from May 4, 2001

World Business Briefing | Europe: Germany: Air Strike Planned

More Sexual Allegations Emerge Against Teacher in Bronx

World Business Briefing | Europe: Germany: Profit Up At Bank

World Business Briefing | Europe: Britain: Utility's Profits Fall

Political Memo; Potent Tool To Tip Race For Mayor: New Budget

Billboard 200

Now 6

Until The End Of Time

Hotshot

Steers & Stripes

Your Woman

Notable Deaths

Historical Context for May 4, 2001