William C Rhoden Sports of The Times column on Pittsburgh Steelers quarterback Kordell Stewart, who is now admitting pain of being cut from starting lineup and demoted to receiver in earlier years; photos (M)

KORDELL STEWART -- Bruised/Sports of The Times; For Stewart, a Cut That Wounds Deeply

Bush administration orders federal agencies to review over $60 million a year in contracts with Arthur Andersen and Enron Corp in light of charges involving companies; move is latest by administration to distance itself from scandal; Budget Dir Mitchell E Daniels Jr says he ordered review; denies it is linked to any administration political vulnerability; Andersen partner Ira Goldstein comments, interview; Andersen says employees outside of its Houston office destroyed Enron-related documents; chronology of events; photo (M)

U.S. TO RECONSIDER AGENCY CONTRACTS IN ENRON SCANDAL

Jennifer Capriati defeats Martina Hingis to win Australian Open tennis tournament; photos (M)

Capriati Rallies to Retain Her Title

Lower Manhattan Development Corp will appoint advisory groups to formulate plan for memorial to victims of Sept 11 terrorist attacks, but group specifically charged with overseeing memorial will not be designated for several months; concern of victims' families is impact of commercial development on memorial (M)

Many Voices, but Little Dialogue On Memorial for Trade Center Site

American Airlines and British Airways abandon effort to merge their operations across Atlantic, rejecting demand by US Transportation Department that they transfer some of their landing and takeoff rights at Heathrow Airport to competitors; result will be that British Airways will continue to dominate Heathrow but will not be able to coordinate pricing and scheduling with American, as competing airlines now do; airline executives executives and analysts says both American and British Airways must now re-evaluate their relationship and perhaps seek new partners, which could upset relations between other carriers (M)

British Airways And American Cancel Alliance

Marriott Financial Center hotel, slightly damaged in World Trade Center terrorist attacks and first hotel to reopen in Lower Manhattan's restricted zone, offers closeup view of devastation; growing demand for rooms with that view is just one of many awkward realities of trying to operate in zone; John Magnifico, hotel's manager, comments; photos (M)

Accommodations, Next Door to Devastation

Pres Bush, in his harshest comments yet on Palestinian leader Yasir Arafat, suggests he enhances terror with boatload of smuggled arms intended for use against Israel; meets with top aides to weigh steps to isolate and punish Arafat; White House official later says Bush does not accuse Arafat of personal role in smuggling; holds his Palestinian Authority ordered arms; says he must crack down on terrorism (M)

PRESIDENT ASSAILS PALESTINIAN CHIEF ON ARMS SHIPMENT

Members of Al Qaeda 'sleeper cell' arrested in Singapore described well-organized network of Islamic militants stretching across Southeast Asia and perhaps into Australia; early glimpses uncovered by authorities in Malaysia, Indonesia, Philippines and Singapore suggest network rivals in reach and sophistication one formed by Osama bin Laden's lieutenants in Europe; investigators continue to probe links between Singapore group and militants in Malaysia who allegedly served as Al Qaeda's regional organizers; Singapore officials and Western executives are surprised at Al Qaeda's ability to plant operatives, including at least 8 trained in Afghanistan, in tightly contolled Singapore, where they lived outwardly normal lives; cell was uncovered after it began implementing orders brought by Indonesian Fathur Rahman al-Ghozi to blow up embassies of United States, Israel, Australia and Britain (M)

'Sleeper Cells' in Singapore Show Al Qaeda's Long Reach

Disclosure that Brooklyn (NY) Bishop Thomas V Daily helped hide scandal involving Boston priest who molested boys emerges with release of court documents from civil lawsuits against John Geoghan, who has been defrocked and accused by more than 130 people of molesting them as children; Daily, who held variety of high positions in Boston archdiocese in 1970's, declines to discuss his role in ever-widening church scandal (M)

Brooklyn Bishop Silent on Handling of Sex Scandal

St Louis Rams quarterback Kurt Warner comments on preparing for playoff game against Philadelphia Eagles with bruised ribs; photos (M)

PRO FOOTBALL: KURT WARNER -- Battered; Warner's Game Face Shows Strain

Leadership qualities of young quarterback Tom Brady discussed as he is set to lead New England Patriots into American Football Conference championship game against Pittsburgh Steelers; photos (M)

PRO FOOTBALL: TOM BRADY -- Buoyant; Patriots' Brady May Be Young, But He's the Boss

House Democrats want Army Sec Thomas E White to testify before Congress about his role in creating and running Enron Energy Services and his contacts with Enron executives in 2001; former employees have said that Enron unit used aggressive accounting to overstate its earnings by hundreds of millions of dollars during White's tenure, but that they did not whether White or Lou L Pai, unit's chairman at time, were aware of them; chart shows White's contacts with Enron employees and his stock sales after leaving Enron on May 31, 2001; photo (M)

Army Secretary Should Testify Before Congress, Democrat Says

 School Vote Put Off  State lawmakers say they will delay community school board elections in New York while they decide whether broad changes are needed.   PAGE B1    Campaign Finance Strategy  Republican opponents of overhauling campaign finance laws said they would seek to create doubts about a bill before the House.   PAGE A12

INSIDE

Enron's colossal collapse prompts growing number of corporations to take hard look at financial and accounting practices and relationships with auditors and others that might create similar problems for them; many are adopting policies against buying consulting services from auditors and looking anew at their own boards; executives and boards are also thinking about risks and how well they know what lurks on and off their balance sheets (M)

Trying Not to Be the Next Enron, Companies Scrutinize Practices

New York state legislative leaders will postpone New York City's community school board elections for one year as they decide whether to change manner in which city school system is governed; Mayor Michael Bloomberg is pushing to abolish school boards and Board of Education; Board officials want to postpone elections in hope of stemming costs; Assemblyman Steven Sanders, chairman of education committee, confirms that legislature is on threshold of making significant changes (M)

Vote Delayed For Boards Of Schools

Profile of Tony Morante, Yankee Stadium tour guide; he is so much part of New York Yankee family that he has 2000 World Series ring; photos (M)

He Plays Boswell In Storied Stadium; Yankees' Tour Guide Knows All And Worries About New Park

Martha Stewart appears ready to honor her commitment with Kmart despite its filing for bankrutcy protection; her deal with Kmart is especially sweet, providing special staff and advertising support and guaranteeing her company, Martha Stewart Living Omnimedia, minimum double-digit annual increase in revenue no matter how her products sell; Stewart and Kmart have both profited nicely from their relationship, but that could change if restructuring forces Kmart to amend some terms of its contract; graph; photo (M)

Blue Lights or Not, Martha Stewart Remains Calm

Clyde Haberman NYC column bemoans demise of men wearing proper hats (M)

No Respect For a Man In a Hat

Prof K Anthony Appiah, one of stars of Harvard's Afro-American studies department, resigns to join Princeton University faculty; move poses threat to Harvard president Lawrence H Summers's efforts to hold together nationally known department; Appiah say he tires of commuting from New York City and does not share Cornel West's complaints about Summers; photo (M)

A Harvard Star In Black Studies Joins Princeton

Judge Charles Grabau sentences Thomas Junta, who beat Michael Costin to death after argument at their sons' practice hockey game, to 6 to 10 years in prison, double Massachusetts' guidelines for involuntary manslaughter; cites 'aggravating factors' in killing, including fact both boys witnessed it; Junta appeals; photos (M)

Father in Killing at Hockey Rink Is Given Sentence of 6 to 10 Years

J Clifford Baxter, who resigned last May as Enron Corp vice chairman after voicing concerns about company's financial practices, is found shot to death in his car in Houston suburb, in apparent suicide; had been subpoenaed to testify before Congress and was one of many Enron executives sued by shareholders; photos (M)

Critic Who Quit Top Enron Post Is Found Dead

More than two dozen people in a Tel Aviv pedestrian mall were wounded in a suicide bombing in which the Palestinian assailant was the only fatality. By nightfall Israel had begun airstrikes in the West Bank and Gaza Strip, the army said.    This was the first suicide bombing in Israel since Dec. 2, two weeks before Yasir Arafat called for a halt to all attacks. The ensuing limited cease-fire has been shredded this month.     Article, Page A6.

2 Dozen Israelis Hurt In a Suicide Bombing

David M Walker, comptroller general of US, says General Accounting Office is prepared to file lawsuit against Bush administration to turn over names of industry executives who advised Vice Pres Dick Cheney on national energy policy during spring of 2001 if administration does not provide information within a week; Cheney met with Kenneth L Lay, former Enron chairman, during that time, and Enron executives met with Cheney's staff four times; some Republicans think Cheney's refusal to divulge names of executives he met with is contributing to public's perception that administration is not telling all it knows about Enron; Cheney photo (M)

White House Could Be Sued On List Access

 Bush Orders Review Of Contracts in Enron Case  The White House ordered federal agencies to consider dropping contracts worth more than $60 million a year with Enron and Arthur Andersen, saying the accusations swirling around the companies raised doubts about whether they should be receiving taxpayer money.    The order continued a pattern by the Bush administration of trying to distance itself from a corporate meltdown whose aftershocks have been felt in both the political and business worlds. [Page A1.]

BUSINESS DIGEST

 THREAT OF SUIT -- The head of the General Accounting Office sent a strong signal that he was prepared to go to court to force the White House to turn over the names of industry executives who advised Vice President Dick Cheney on national energy policy.   PAGE C1    CORPORATE REVIEWS -- Enron's collapse has prompted other companies to take a hard look at practices and relationships that might create similar problems, executives and consultants say.   PAGE C1

ENRON'S MANY STRANDS

Darya Igorevna Astakhova is a Russian tennis player.

January 26, 2002

Headlines from January 26, 2002

KORDELL STEWART -- Bruised/Sports of The Times; For Stewart, a Cut That Wounds Deeply

U.S. TO RECONSIDER AGENCY CONTRACTS IN ENRON SCANDAL

Capriati Rallies to Retain Her Title

Many Voices, but Little Dialogue On Memorial for Trade Center Site

British Airways And American Cancel Alliance

Billboard 200

Weathered

[Hybrid Theory]

Word Of Mouf

Silver Side Up

Stillmatic

Notable Births

Historical Context for January 26, 2002