May 18, 2001

Pleasant Rowland, founder of American Doll company, has vision for Aurora, NY, town which home of Wells College but is succumbing to declining economy; Rowland has purchased several properties, and she and Wells propose to form foundation intended to bolster economic activity in Aurora; foundation would receive infusion of cash and own properties, incurring all losses and paying taxes on them; residents were skeptical of motive for benevolence, but she allayed fears at town meeting where she explained that she wanted to repay town where seeds for her doll business, which she eventually sold for $700 million, had been planted and said that she would take nothing in return; map; photos (M)

REGULATIONS FAULTED At the heart of the plan is the notion that excessive regulation has produced a crisis. PAGE A15 THE CALIFORNIA VIEW Officials in the state hit worst by the power crunch criticized the Bush plan. PAGE A16

Telewest Communications PLC agrees to test faster Internet access to Sony Corp's PlayStation 2 game through its cable lines; participants in trial will test pay-per-play format that will allow them to play against each other over Internet (S)

Article in series Watching Movies With profiles Michael Bay; 37-year-old director, who started career making music videos, recalls great impression made by West Side Story; interview; his own reputation comes from blockbuster movies like Armageddon and latest movie Pearl Harbor; photos (M)

Defense Sec Donald H Rumsfeld will tell Congress that armed forces need infusion of money to meet foreign threats, just as he did 25 years ago when he served in same post during Ford administration; Rumsfeld will make case for adding billions of dollars to current defense budget and increasing Pres Bush's proposed $324 billion Pentagon budget; his goal is to transform military into more agile, lethal and stealthy force, and to build costly and unproven missile shield; says Americans may feel safer today than in decades, but there is danger in complacency; critics contend Rumsfeld and Bush's other top advisers are exaggerating military challenges facing US and that he is arguing for missile shield at time when, at least numerically, missile threat has lessened; Rumsfeld cites China and North Korea as potential threats to US; he acknowledges he has tough selling job ahead; photos (M)