December 12, 2002

Enron Records Contradict Denials of Speculating Even as Enron's top executives were insisting that the company did not engage in speculative trading, Enron was reaping the bulk of its profits during the California energy crisis betting on the direction of gas and electricity prices, according to company records and interviews with former Enron traders and executives. Enron made the profitable bets -- including one that resulted in a $485 million gain on one day in December 2000 -- at a time when investigators say it was conspiring with other companies to manipulate prices. [Page A1.]

Nissho Iwai and Nichimen, two of Japan's largest and most troubled general trading companies, plan to merge in April 2003, in attempt to survive in shrinking industry suffering from transfer of much Japanese production to foreign countries; will seek 200 billion yen ($1.6 billion) in added equity (M)

Trying to quell an uproar over comments he made last week that were criticized as racially divisive, Senator Trent Lott apologized at length today in a radio interview, saying his words were ''terrible.'' Taking questions for the first time since a furor erupted over his observation last week that the nation would have been better served had Strom Thurmond been elected president in 1948, Mr. Lott said his words at Senator Thurmond's 100th birthday celebration were ''poorly chosen and insensitive.''

Seneca Indian Nation plans to open first of three casinos in Niagara Falls (NY) in former convention center by first of 2003; New York State, which would receive millions of dollars annually from slot machine profits, is also hoping new casino revitalizes ailing city once supported by industrial factories that are not shut down; area Congressman John J LaFalce questions legality of Seneca's land acquisition from government and many in Niagara Falls and surrounding areas consider casino's presence unfair to nearby casinos and other gambling operations, which cannot compete with casino's plan to serve free drinks to gamblers; casino has already brought 7,000 job applicants, and could be successful way to compete with glitzier Canadian side attractions; photos (M)

Stephan Fitch and his company Thinking Pictures develop dynamic, digital, interactive movie posters to be placed in theater lobbies; in addition to advertising movie, central control of system offers unique advertising opportunity and ability to discern whether marketing messages are being received; reactions from moviegoers are mixed; photos (M)