January 15, 2004

David Pogue State of the Art column on iLife '04, Apple's software suite that allows users to take prerecorded bits of music and sequence and layer them to create unique digital recordings; photos; drawing (M)

Donatella Alinovi, wife of Parmalat's former chief financial officer Fausto Tonna, is arrested for suspected money laundering; is supected of withdrawing about 1 million euros last week from account linked to Parmalat unit after her husband was arrested; photo (M)

Securities and Exchange Commission proposes rules that will force most of nation's mutual funds to replace their board chairmen with outsiders independent of firms that manage funds; proposal will affect not just mutual fund companies that have figured in recent probes but giant firms like Fidelity Investments, Vanguard Group and T Rowe Price Associates, which have been left unscathed by industry's scandals; several mutual fund .ompanies involved in investigations have independent chairmen and boards for their funds; commission also proposes rules that would require funds to provide investors with greater disclosure of their relationships and potential conflicts of interest with brokers who recommend their funds; Cynthia A Glassman and Paul S Atkins, Republican members of SEC, say they will vote against proposal; two Democratic commissioners and chairman William H Donaldson support measure; photo (M)

Deal Expands Gap Between Leaders

New York City receives 5,142 complaints about lack of heat on it 311 hot line, new record; housing authority also receives complaints about lack of heat in city's public housing; photos (M)

Broadway's winter theater season is feeling effects of bitterly cold weather and continued doubts about economy and tourism; Taboo, brought to Broadway by Rosie O'Donnell, announces it will close on February 8 because of disappointing ticket sales; ticket sales for other big-budget musicals, including Gypsy, 42nd Street, Thoroughly Modern Millie and Never Gonna Dance, show significant drops in weekly sales; photos (M)

Dutch financial reuglators open investigation into Parmalat's financial dealings in Netherlands; Parmalat used group of shell companies in Netherlands to raise at least 5.2 billion euros ($6.64 billion) from bond investors around world; shell companies were set up under special Dutch tax laws that help businesses and wealthy individuals from other countries avoid paying taxes on royalty income; Parmalat has at least five subsidiaries in Netherlands that exist almost entirely on paper; photo (M)

Sotheby's announces collection of more than 40 Impressionist and modern paintings from Whitney family collection, now owned by John Hay Whitney and his wife, Betsey Cushing Roosevelt Whitney, will be auctioned in New York on May 5; estimates sale could bring $140 million to $190 million; experts say Boy With Pipe, from Picasso's Rose Period, could break world record; photo (M)

New suburban development in Ypenburg, Netherlands, is attracting international attention for its inventive blend of contemporary design, dense and urban in spirit, and open community spaces and parkland often found in suburbs; first tenants have moved in , but some sections are still under construction; even in its unfinished state, it suggests something rare, even in Netherlands: suburb with architectural flair; photos (M)

The Maverick Be

Panel appointed by Gov George E Pataki recommends that New York State eventually take over entire cost of Medicaid, which is now shared with with counties, and that it immediately start paying counties' share of long-term health care, like nursing homes and home care; outlines raft of proposals to reduce overall Medicaid costs by $4.2 billion over five years and to relieve share local governments pay by $2 billion in part by taking over their long-term care costs; warns that cost of Medicaid program could rise to $44 billion in coming fiscal year if left unchecked (M)

Harvey Araton Sports of The Times column discusses New York Knicks' hiring of Lenny Wilkens as head coach; contends that Wilkens, former point guard, is perfect fit for Knicks new franchise guard Stephon Marbury; photos (M)