March 6, 2004

Martha Stewart and Broker Are Convicted of Lying Martha Stewart was found guilty of lying about the reasons she sold shares of a biotechnology company more than two years ago. Her co-defendant, Peter E. Bacanovic, her stockbroker, was also convicted. [Page A1.]

Martha Stewart is found guilty by Manhattan jury of lying about reasons she sold 3,928 shares of ImClone Systems over two years ago; Peter E Bacanovic, her former Merrill Lynch stockbroker, is also convicted; Judge Miriam Goldman Cedarbaum sets sentencing hearing for June 17; Stewart says she plans to appeal; outcome raises questions about strategy of defense team; Stewart's lawyer Robert G Morvillo called only one witness and questioned him for just 20 minutes; photos (M)

Murray Chass On Baseball column discusses US subpoena of baseball's steroid tests from last year, which were reduced in number from hundreds to few and then to 15 thanks to work of Major League Baseball players union (M)

New York's Congressional delegation has a hard time its legislation passed in Republican Congress led by conservate wing of party; Democrats are particularly frustrated, but state's mostly moderate Republicans have similar problems; Sens Charles E Schumer and Hillary Rodham Clinton manage to become significant congressional players, partly because they have forged alliances with Republicans and partly because Senate is more cordial than House in its workaday ways (M)

While the economy has been expanding at a healthy pace for six months by most measures, employers remain stubbornly reluctant to add jobs. News analysis, Page C1.

Latest jobs data escalate political war over economy, with Democrats charging slow job growth underscores Pres Bush's economic policy failures and Republicans holding Democratic president would make problem worse; leading Democrats, including Sens Tom Daschle and John Kerry, ridicule Bush administration for falling far short of pledge to restore healthy job market; photo (M)

Job creation all but stalled in February, surprising Wall Street forecasters and giving Democrats economic ammunition to use against Pres Bush as he begins his re-election campaign; Labor Dept reports that economy added just 21,000 jobs, down sharply from Jan's increase and far below gains that were common in 1980's and 1990's; unemployment rate held steady at 5.6 percent, mostly because many people have stopped looking for work since late last year, removing them from government's official count of jobless; economists say that at no other point since World War II has economy grown for such long period without adding jobs at healthy pace; graphs (M)

Students at Southampton College and other schools on East End of Long Island find off-season housing bargains for as low as $300 monthly for room and use of facilities in luxurious homes that rent for $50,000 to $70,000 for summer season; year-round residents of Southampton complain of trash, noise and weekend crowds, and some say town's rental code is being violated; landlords concede that college crowds cause more damage than their summer people, but are happy for any income on properties during winter; photo (M)

Shiite leaders refuse to sign Iraq's temporary constitution unless changes are made that will strengthen Shiite power, throwing political process into disarray and posing major embarrassment for US officials; five Shiite leaders say they decided to back out of agreement after meeting with Grand Ayatollah Ali al-Sistani; say they want to strike from temporary constitution provision that would allow relatively small minority of country's voters to block passage of permanent constitution; disputed provision was inserted to help gain support of Kurds, who are trying to maintain large measure of autonomy they gained over last 13 years; photos (M)

New York Yankees first baseman Jason Giambi hits grand slam in spring training game, prompting more light-hearted questions from media than those concerning recent allegations that Giambi has used steroids; photo (M)

Spring Training, This Time at Third Alex Rodriguez played for the Yankees for the first time, in Tampa, Fla. The Yankees beat the Phillies, 7-5. SPORTSSATURDAY, PAGE D1 Gas Prices Are Soaring The price for a gallon of regular unleaded gasoline has reached a near-record national average of $1.71. Some experts say it might near $3 in some areas. PAGE A7

Diana Lam, deputy chancellor of New York City public schools, is accused of taking aggressive steps to have her husband, Peter Plattes, hired as regional instructional specialist at $102,000 yearly without required conflict of interest clearance; Chancellor Joel I Klein deemed hiring inappropriate; Plattes never received pay, possibly because of clerical error, but was then listed as volunteer; Plattes was hired weeks later as teacher in high school in Bronx (M)