Deutsche Post World Net, the German postal service, has been told to repay $913 million to the German government for abusing state subsidies but says it will fight that order. The repayment directive comes after a ruling by the European Commission earlier this year that the service breached European Union subsidy rules by using that money to undercut rivals in the package delivery market from 1994 to 1998. Deutsche Post said it would appeal the payment demand because the interest calculation was incorrect.   Victor Homola (NYT)    

World Business Briefing | Europe: Germany: Bill To Postal Service

Florence Fabricant comments on Thanksgiving Day meal using prepared dishes from catering shops and restaurants, that can be made to look and taste homemade; photo (M)

Almost Homemade: A Cheat's Feast

Officials round up 127 workers at La Guardia and Kennedy International Airports who either lied about criminal pasts or used fake identification to gain security clearance; 83 are arrested; apprehended workers are baggage handlers, luggage screeners, security guards and aircraft mechanics; crackdown is biggest so far in series of checks at major American airports; photo (M)

127 at Airports Face Charges Of Hiding Past

Bruce Weber reviews play Signals of Distress, adapted by Joshua Carlebach from novel by Jim Crace and performed by theater group Flying Machine; photo (M)

Ingenuity Brings a Novel To the Stage

Chris Harn, Derrick Davis and Glen DaSilva, accused of manipulating computerized wagers on Breeders' Cup pick six winners, are expected to plead guilty to conspiracy to commit fraud and money laundering; photo (M)

Guilty Plea Expected in Betting Fraud

Amanda Hesser comments on turkducken, Southern speciality that consists of boned chicken, boned duck and boned turkey, stuffed one inside the other like Russian dolls, and then roasted; photo (M)

Turkey Finds Its Inner Duck (and Chicken)

Article on humiliation, more than sex or violence, as unifying principle behind successul reality shows like The Bachelor or Survivor; reports there is more ahead, from ABC's The Will, in which contestants compete for inheritance, to Exhaustion, Fox game show based on sleep deprivation; HBO hopes to top rivals with Cathouse, featuring hidden cameras in Nevada brothel; viewers have shown insatiable appetite for queasy thrill that comes from watching ordinary people suffer searing public humiliation in exchange for 15 minutes of dubious fame, or shame; The Bachelor finale, when Aaron chooses between golden-haired Brooke and 'brainy' brunette Helene, is expected to have highest ratings of year; photo; distaff version, The Bachelorette, is planned next year, though without same kick; shows with more benign pranks, such as Candid Camera revival or TNN's Oblivious, have dismal ratings, suggesting that viewers perfer humiliation served raw (M)

TV Memo; Forget the Sex and Violence; Shame Is the Ratings Leader

Harlem (NYC) fire forces evacuation of around 270 people from seven-story apartment building; photos (M)

Fire in Harlem Forces Nearly 270 to Evacuate Apartment Buildings

Columbia University undergraduate students Bryan Laulicht and Sasha Bakhru are arrested for cheating on graduate school entrance exams with help of computers, wireless microphones and digital cameras; photos (M)

Columbia Students Charged in High-Tech Cheating

 Vivendi Universal Faces Formal S.E.C. Investigation  Vivendi Universal said that an informal inquiry by the Securities and Exchange Commission had become a formal investigation. Vivendi declined to provide details but said that it would cooperate with the S.E.C. inquiry as well as one by the United States attorney for the Southern District of New York.    The investigations in the United States come atop similar inquiries in France, where officials are looking into the timeliness and accuracy with which Vivendi's former chief executive disclosed information to investors. The American investigations are also thought to be focusing on financial disclosures. [Page C6.]

BUSINESS DIGEST

Matthew Purdy Our Towns column discusses decision by many Millburn (NJ) residents to champion secession from Essex County in response to exorbitant property tax burdens on wealthiest homeowners (M)

Our Towns; Overtaxed? Consider Secession

John B Taylor is found guilty on all twenty counts of murder in execution-style slayings at Wendy's restaurant in Queens, New York City, in May 2000; jury convicts him of killing two bound and gagged workers, then commanding mentally-retarded accomplice to kill five others in basement; five of victims died, two survived; jury will now consider death penalty (M)

A Verdict of Guilty Is Uttered 20 Times In Wendy's Killings

New York Yankees pitcher David Wells testifies that Rocco Graziosa, accused of assaulting Wells in Manhattan (NYC) diner, offended him and memory of his deceased mother; photo (M)

Yanks' Wells Testifies That He Was Attacked

A United States Commerce Department official said in Moscow that the United States had agreed to increase imports of Russian slab steel about 10 percent, a move that Russian officials said would partly compensate Russian producers for losses incurred under new tariffs adopted in March. The assistant secretary of commerce, Faryar Shirzad, said the move was part of an effort to broaden the trade relations of Russia and the United States. Trade ties remain limited, with $7.3 billion in business between the countries in 2001, according to the State Statistics Agency of Russia.   Sabrina Tavernise (NYT)    

World Business Briefing | Europe: Russia: More Steel To America

Sen Robert C Byrd of West Virginia, turning 85, brings his famous oratory to bear as, virtually alone in Congress, he raises larger question of why new Homeland Security Department is suddenly so necessary and what largest, hastiest reorganization of federal bureaucracy in half century will do besides allow politicians to claim instant credit for fighting terrorism; he refers to 'monstrosity' of 484-page bill, observing that 'Osama bin Laden is alive and plotting more attacks while we play bureaucratic shuffleboard; Byrd's speeches to mostly empty chamber are broadcast over C-Span, winning him thousands of supportive letters from both ends of political spectrum; Byrd says new department will not add 'one whit' of security, and calls for creating department more slowly, with Congress overseeing process; interview; photos (M)

Byrd, at 85, Fills the Forum With Romans and Wrath

Selena Roberts Sports of The Times column contends that NFL is irresponsible in allowing players to continue through games after injuries clearly hinder their performance, as might have been case with Philadelphia Eagles and quarterback Donovan McNabb; photo (M)

Sports of The Times; Throw In The Towel? Not in N.F.L.

Swiss International Air Lines, the successor to Swissair, said today that it would lay off 300 workers, ground eight planes and cut some routes, moves that come at a time of tough competition and grim global economic prospects.    The airline, known as Swiss, said the moves were part of a larger effort to break even next year. Other steps include bolstering its technological services, where it plans to add 200 jobs, and upgrading its business-class section.  

Swiss Airline Plans Cutbacks To Trim Costs

An expansion strategy based on acquisitions, new stores and new offerings like sleek handbags and children's clothing bearing its signature plaid pattern seem to be working for the Burberry Group. The company reported results for the first half of its fiscal year today that exceeded market expectations.    So far at least, Burberry has managed to keep sales and profits growing in a year when many rival fashion companies are suffering from economic sluggishness and from tourists' staying home because of the threat of terror attacks.  

Acquisitions and New Clothing Give a Lift to Burberry's Profits

The Nissan Motor Company said profits grew 25 percent in the April-to-September period, thanks to cost-cutting and strong sales of its popular small cars in Japan and overseas. Global sales grew 7.5 percent in the period, while operating profits, which omit one-time events, jumped 85 percent. For the full year ending in March, Nissan expects a record profit of 490 billion yen ($4.1 billion). The numbers were in line with forecasts from last month.   Ken Belson (NYT)  

World Business Briefing | Asia: Japan: Profits Grow At Nissan

Charter Communications, cable company controlled by Microsoft co-founder Paul G Allen, announces it will restate its financial results for 2000 and 2001 to record additional $1.4 billion in franchise costs and $1.2 billion in deferred income tax liabilities related to acquisition of 18 companies; also says it is participating in informal Securities and Exchange Commission inquiry into how it accounts for its customers; company's accounting is already subject of similar Justice Department investigation involving grand jury; Allen has invested about $7 billion in company, giving him control of more than half of Charter's shares and 90 percent voting control; reports loss of $239.5 million compared with loss of $326.6 million year earlier; Allen's investment is worth about $500 million; chart; photo (M)

Large Cable Operator to Restate Its Results for 2000 and 2001

 A New Face in Israel  Israel's opposition Labor Party chose as its leader a former general who calls for opening peace talks with the Palestinians.   PAGE A3    Health-Care Crisis Cited  The National Academy of Sciences urged the Bush administration to test solutions to what it said was a crisis in health care.   PAGE A20

INSIDE

Senate votes 90-9 to create Homeland Security Department that will reorganize broad elements of federal government around focused response to terrorism; biggest transformation of federal bureaucracy since 1947 is approved despite misgivings of many Democrats and only after urgent phone calls from Pres Bush and last-minute promises by Republican leaders to eliminate several special-interest business provisions; work force of nearly 170,000 people around world will be led by new cabinet secretary, almost certainly Tom Ridge; FBI and CIA, key antiterrorism agencies, are not part of new department, which will have own intelligence division; many workers will not have Civil Service protection, issue that held up approval for months; Democratic effort to remove pro-business provisions falls short, 52-47, after extensive arm-twisting and Republican promises to alter most objectionable: setting up domestic security research center at Texas A&M, allowing business that leave US to avoid taxes to get contracts with new department and giving legal protection to companies that make vaccine ingredients; Sen Joseph Lieberman, key architect of department, is 'thrilled' at approval; Sen Phil Gramm acknowledges that Democrats wrote 95 percent of bill; photo (M)

SENATE VOTES, 90-9, TO SET UP A HOMELAND SECURITY DEPT. GEARED TO FIGHT TERRORISM

The European Commission proposed a new draft law on investment services today that drew immediate protests from the banking industry.    The commission said the draft law was meant to protect investors and to help create a single European marketplace for securities trading among financial firms. But the banks say an 11th-hour change to the draft, prompted by lobbying from some of Europe's stock exchanges, will undermine it.  

Change in European Proposal on Stock Trades Draws Fire

Pres Bush and members of Congress are considering ending 'double taxation' on dividends; under current law, company pays corporate income taxes on its profits, and receives no deduction for dividends it pays to shareholders; shareholders then pay taxes at ordinary income-tax rates on dividends they receive; companies have sometimes talked about ending this taxation of dividends, but there has been little lobbying on it; tend to prefer specific proposals that would benefit them, rather than generalized idea that would help their shareholders, and everyone else's; Pres Bush backs reform (Market Place column) (M)

Market Place; Talk in Capital Of Easing Taxes On Dividends

Ernst Welteke, a member of the European Central Bank Council, became the latest policy maker to suggest that the bank was more concerned about growth than inflation and might lower interest rates as early as next month. ''The present annual inflation rate is very close to the mark for stability'' and will probably fall in the first half of next year, Mr. Welteke, the head of the Bundesbank in Germany, said in a speech in Stockholm. The region's economy will grow at the slowest pace in nine years in 2002, the commission said. Other European Central Bank officials said last week that they expected inflation to slow next year, a sign that they may support a reduction in borrowing costs at the next meeting.  

World Business Briefing | Europe: New Hint On Interest Rates

Madisyn Shipman is an American actress, singer and model. She is known for playing Kenzie Bell in the Nickelodeon sitcom Game Shakers.

November 20, 2002

Headlines from November 20, 2002

World Business Briefing | Europe: Germany: Bill To Postal Service

Almost Homemade: A Cheat's Feast

127 at Airports Face Charges Of Hiding Past

Ingenuity Brings a Novel To the Stage

Guilty Plea Expected in Betting Fraud

Billboard 200

8 Mile

Justified

The Best Of 1990-2000 & B-Sides

Stripped

Shaman

Notable Births

Notable Deaths

Historical Context for November 20, 2002