January 19, 2002

Enron Chief Went Online To Urge Stock Purchase More than a month after an Enron vice president warned that the company might be an ''elaborate accounting hoax,'' chairman Kenneth L. Lay used an online chat to urge employees to buy Enron shares, a transcript of the session shows. Mr. Lay, who apparently disposed of some Enron stock himself within days of receiving the warning, assured employees in the chat session that executives were convinced that Enron's finances were legal and appropriate. But he did not mention the issues raised by the company vice president, who warned of serious accounting problems. [Page A1.]

Arthur Levitt Jr, former chairman of Securities and Exchange Commission, recalls warnings and threats he received from dozen senators when he tried to impose tough conflict-of-interest rules on accounting industry two years ago; says barrage of high-powered lobbying reflects political influence of industry, which ultimately succeeded in weakening his proposals to reduce potential conflicts of interests at accounting firms; battle waged against Levitt, which he calls most intensive and venal in his 8 years as SEC chief, shows how difficult it may be for more stringent proposals to be adopted, even in wake of revelations of document destruction at Arthur Andersen, auditors for Enron Corp, and losses of more than $60 billion by Enron shareholders; photo; graphs showing political contributions of accounting firms (M)

Many families in Herculaneum, Mo, where one-fourth of children under 6 have lead poisoning, say relocating them while cleanup is under way is not enough; they want Doe Run Co, owner of smelter, to buy them out of their homes; relocation offered to families renews decades-old questions over dangers of lead, which is believed to hamper intelligence and contribute to kidney failure; people in Herculaneum believe it is also responsible for clusters of brain cancer and multiple sclerosis around town; Doe Run, subsidiary of Renco Group Inc, spent $15 million in last year to clean up Herculaneum, where its smelter produces 160,000 tons of lead a year; it has reduced emissions from stack to projected 34 tons this year from 81 tons last year, and 800 tons generation ago; company has purchased 60 local homes in last decade, and 24 more families want to be bought out; company has been working with regulators for years to ease problem of contamination; no one know why issue has heated up so over course of last six months; photos; map (M)

Analysis of demise of Talk magazine; co-founder Tina Brown comments, interview; others in magazine industry question if venture, backed by Disney's Miramax Films and Hearst Magazines, was doomed from start; photo (M)

Enron chairman Kenneth L Lay urged employees to buy Enron shares more than month after being warned by Enron vice president Sherron S Watkins that company might be 'elaborate accounting hoax'; Lay himself apparently disposed of some Enron stock within days of receiving Watkins' warning, but in online chat session with employees he assured them that company's finances were legal and appropriate, and did not mention that he had asked Enron's outside law firm, Vinson & Elkins, to review Watkins' claims; ultimately, Enron restated nearly $600 million in profits over four years, largely because of issues raised in Watkins' letter to Lay; earnings restatement, and other negative financial disclosures, put company on path to filing for bankruptcy protection in Dec; photo; excerpts from Lay's online question and answer session with employees (M)