April 2, 2004

Floyd Norris comment on how stock options allowed executives of traded companies to get rich while companies borrowed; says options wealth for bosses of traded companies provied excuse for former New York Stock Exchange head to collect extra bonuses at exchange, to compensate him for not receiving option, receive pension benefits on those bonuses, which provided him with bulk of $139.5 million payout that led to his ouster; holds many companies that were concerned about reporting options as dilution on balance sheets borrowed money to repurchase shares; graph (M)

New York State Court of Appeals rules that mother whose unborn child dies because of doctor's negligence can now sue for emotional distress she suffers; decision reverses 20-year-old precedent that mother and fetus are separate entities; could affect national debate on abortion and rights of unborn; obstetricians and gynecologists fear decison opens door to increased litigation (M)

Grand Finale After 10 months, grand piano No. K0862 leaves the Steinway & Sons factory for its journey toward artistic fulfillment. PAGE B1 Accord on Pension Bill House and Senate negotiators agreed on a bill that would save companies $80 billion in pension contributions over two years. Airlines and steel companies would get an additional break. PAGE C1

Dow Jones announces it is dropping AT&T, Eastman Kodak and International Paper from its list of 30 industrial stocks, and adding Pfizer, American International Group and Verizon Communications; last time Dow was changed was on Nov 1, 1999; graph (M)

South Korean exports rose more than third for second month in March, reaching record as consumer spending picked up in its Chinese, Japanese and American markets; shipments rose 40 percent from year earlier to $21.5 billion after climbing 45 percent in February; exports to China rose 54 percent in first 20 days of March; sales to US increased 41 percent, and shipments to Japan rose 52 percent (S)