January 23, 2002

Pres Bush, in abrupt shift, assails bankrupt Enron Corp, company which contributed heavily to his political campaigns; expresses 'outrage' that company misled its employees and investors, including mother-in-law he said lost $8,000 when stock collapsed; calls for first time for government action to force greater corporate disclosure of financial information; strongly defends manner in which cabinet members handled calls for help from Enron's top executives; shift in tone comes as scope of Enron investigation widens; company reports discovery of more shredded documents at headquarters in Houston; suggests employees are still destroying potential evidence despite orders to contrary; shredded remains are turned over to Justice Dept; FBI seals part of headquarters building; House Energy and Commerce committee will subpoena David B Duncan, recently dismissed partner of Arthur Andersen--main accounting firm for Enron and auditor of questionable financial arrangements; investigators say Duncan may invoke Fifth Amendment; three other Andersen partners, including chief executive, will appear before committee (M)

Samsung SDI posts 29 percent increase in profit for fourth quarter; earned 141 billion won ($105 million) in period; graph (S)

Kmart Corp files for bankruptcy protection, largest such filing ever made by retailer; says all 2,114 of its currently operating stores will remain open; analysts say several hundred stores will be closed after corporate review is completed by end of April; Kmart will also extricate itself from leases on 350 stores that it has already closed or leased to other companies; lists $16.29 billion in assets, $10.35 billion in debt and cash position of $366 million at end of quarter ended Oct 31; retailer's stock falls 60 percent, closing at 70 cents; chief executive Charles C Conaway comments; photo (M)

Proposal to construct guest bedrooms at New York City's venerable Century Association causes debate among members; managers says room-rental plan would provide much-needed source of income, but many members fear it would violate tranquility and comfort of club; photo (M)

Morgan Stanley Dean Witter & Co and other investors acquire trust management unit of South Korea's Kookmin Bank for 44.4 billion won ($33 million) (S)

New Jersey Nets defeat San Antonio Spurs, 92-86; photo (M)

American and Asian officials say Osama bin Laden has worked for past two years to establish beachhead in Indonesia, world's most-populous Muslim nation; say members of Al Qaeda have slipped in and out of archipelago, bringing millions of dollars in cash for radical Islamic organizations, recruiting members and providing military training; operations of some Al Qaeda cells described; deportation by Indonesian government of Pakistani, Hafiz Mohammed Sasa Iqbal, linked by intelligence officials to recent attempt by so-called shoe bomber to blow up American airliner in flight discussed; crackdown on Al Qaeda by government of Singapore with arrests of 13 men noted; US officials say Indonesia is one of fertile havens for international terrorists because of weak central government, rampant corruption, porous borders and 220 million people, most Muslims, stretched over vast archipelago of islands; while neither American enemy nor friend, Indonesia has been less cooperative with Bush administration's anti-terror campaign than other countries in Asia as leadership is wary of arousing anti-American sentiment; map; photos (M)

A suspect handed over to Americans last week by Bosnia and Herzegovina has been identified as a lieutenant in Al Qaeda who was ordered to attack American targets in the Balkans after Sept. 11, law enforcement and military officials said. Article, Page A8.

Port Authority of New York and New Jersey puts finishing touches on ambitious blueprint for rebuilding crumbled transit network beneath Lower Manhattan, proposing to unite tangle of unlinked train lines with huge underground pedestrian concourse and moving sidewalks; plan, which could cost $2- to $3 billion, represents culmination of months of thinking by transportation experts; would take four or five years to build, and would represent compromise between rebuilding system as it was and completely redrawing downtown transit map; Port Authority vice chairman Charles A Gargano comments; map (M)

Jon PaÄ

Comment on good food that can be had at many of New York City's music clubs; examples cited; photos (L)

Eurostat reports annual inflation in 12-member euro zone remained at 2.1 percent in December; inflation in 15 countries of European Union rose to 2 percent from 1.8 percent in November; initial estimates indicate euro zone had trade surplus in November of 5.5 billion euros ($4.86 billion), down from 9.6 billion euros in October (S)