August 17, 2002

Observers see prickly relationship between Viacom chief executive Sumner M Redstone, who built formidable collection of media assets, and Mel Karmazin, chief operating officer viewed as disciplined manager of those businesses, thawing; number of investors say privately that they hope Karmazin will remain with company after his contract expires next May; photo (M)

Treasury to Ban Technique Used to Reduce Tax Bill The Treasury Department banned a technique that thousands of the wealthiest Americans have used to escape billions of dollars in gift and estate taxes. The technique involves buying expensive life insurance that will be passed on to heirs, but declaring a far lower price on gift-tax returns. The department said the technique was not valid and never had been, leading experts on taxes and insurance to predict that people who have bought these policies will be drawn into years of litigation with the government and with their advisers. [Page A1.] 4-Week Run for Dow and S.& P. 500 Stocks were mixed but the Dow Jones industrial average and the Standard & Poor's 500-stock index still managed to finish higher for the fourth consecutive week. At the close, the Dow fell 40.08 points, or 0.5 percent, to 8,778.06, while the S.& P. 500 index fell 1.48 points, or 0.2 percent, to 928.77. The Nasdaq rose 16 points, or 1.2 percent, to 1,361.01. [C4.]

Major league baseball players' union sets strike date of Aug 30; leaders feel that owners will put in place new economic system after World Series that will significantly depress salaries and that players have to strike before season runs out in order to maximize its leverage; Pres Bush warns both sides against work stoppage; negotiators for players and owners will continue meeting; chart on strikes and lockouts in major leagues; photo (M)

William C Rhoden Sports of The Times column argues that calling baseball players greedy, using recent layoffs and current economy as reasons not to strike and threatening to boycott baseball in event of strike are inappropriate and irrelevant reactions; photo (M)

Spencer Lee King, 17, says he beat 14-year-old Nonie Drummond to death in her home in Fabius, NY, then set house on fire; says two had engaged in 9-month-long Internet and telephone romance before meeting for first time at her grandfather's isolated farmhouse; says he 'snapped' when he discovered she was younger than she had claimed; girl's grandfather and mother try to comprehend how such a shy, obedient child managed to court danger right under their noses; her death is reminder that same technology that comforts people can also connect them to danger; photos;map (M)