November 9, 2002

Port Authority of New York and New Jersey analysis of its 78-minute tape of firefighter communications from Sept 11 contradicts finding in New York City's study of emergency response that breakdown in fire communications at World Trade Center was largely caused by failure of repeater, electronic device in complex designed to boost radio transmissions in high rise buildings; holds tape, which recorded transmissions as they passed through repeater, shows repeater worked; tape records firefighters in south tower speaking over their radios until building collapsed; practically no communications are recorded from north tower, even though same repeater served both towers; analysis raises possibility that different factors might have accounted for communications breakdown that is thought by many firefighters to have contributed to department's staggering losses; Fire Department says it still believes machinery failed in some way; map (M)

McDonald's Corp says that its fourth-quarter earnings will fall short of earlier expectations, that it will close 175 underperforming restaurants in 10 countries, cutting 400 to 600 jobs worldwide), and that it will completely shut operations in 3 other countries; company, although ailing, is still leader in domestic fast-food hamburger market, with 43.1 percent share (M)

New York City school system shuts off drinking fountains and posts warning signs on sinks at about one in five of its public elementary schools after finding that level of lead in water slightly exceeds federal standards; lead is found in water at 222 of city's 990 elementary schools (M)

Rep Nancy Pelosi says she has votes to be elected new House Democratic leader; would be first woman to head a party in Congress; holds news conference after Rep Martin Frost drops out of race and endorses her; Rep Harold E Ford Jr says he will seek post; Sen Thomas A Daschle says he will seek to remain Senate Democratic leader; photo (M)

Justice Department moves on several fronts against tax evasion and promotion of tax evasion schemes; most significant development is eight-year prison sentence imposed on Max C Tanner, former IRS lawyer who evaded $2 million in taxes on profits from stock swindle; department has also sought injunctions against tax evasion or moved closer to seeking them in five states, most significant being filed in Tampa, Fla, against Carel A (Chad) Prater an associate and his many businesses; such activity on department's part had become so rare in recent years that promoters boasted about not paying taxes and won clients with claims that government's not coming after them proved that taxes were voluntary (M)