Businesses remain in Big Apple despite setbacks
NEW YORK (AP) — The World Trade Center bombing
could easily have become another reason for companies
to beat up on New York ns a hostile place to do business,
the explanation many big employers have given for mov
ing out.
But business and political leaders say the remarkably
swift response by the world's financial capital to help
business victims of the disaster couldn't have been
matched by any other city.
Instead of souring more companies on New York, the
trade center episode illustrated why the city has man
aged to retain its allure to businesses.
"This should be seen as a victory for New York City."
said Stephen Spinola. head of the Real Estate Board of
New York. "We're not going to give up the tremendous
advantages of New York City and the World Trade Cen
ter to go to the suburbs."
Still, the size and speed of New York's move to help
companies affected by the trade center shutdown also
reflected the city's nervousness about losing business
es. along with their thousands of jobs and millions in tax
revenue.
New York is in its worst economic: slump since the
197()s and has gone to extraordinary lengths in recent
years to persuade businesses to stay.
Its still th« king of cities with corporals headquarters,
though its realm is smaller l.ast year New York was
home to 39 of the Fortune 500 corporate headquarters,
compared with 50 five years earlier and 137 25 years ear
lier
Exxon, Mobil and |.C. Penney are among the biggest
names that have left New York in recent years Compa
nies have complained about the public schools and high
rent, high taxes and high crime.
I-nst year, New York's five commodity exchanges,
which deal in basics ranging from crude oil to cotton,
announced they would stay in the city after they got
about $150 million in lax breaks and grants. After the
trade center bombing, the exchanges won spot ini exemp
tions to return to their trading floors, while other tenants
remained shut out.
In October, Morgan Stanley Croup Inc., one of Wall
Street's biggest investment firms, received $39.ft million
in tax breaks after it had looked over the suburb of Stam
ford. Conn., ns a possible new home.
Two months earlier, Prudential Securities Ini
received $37.8 million in tax incentives and S4H 4 mil
lion in energy savings
Fortune magazine, noting that the city has become
‘We’re not going to give up the
tremendous advantages of New
York City and the World Tirado
Center to go to the suburbs
Stephen Spmola.
head of the Rent Estate Board ot New York
mortt affordable for businesses, ranked it No r> on its
list of the HI best cities for business New York
hadn't made the list for the previous two years
What happened here Friday can happen any pirn e
and has happened, said Freston Kolxirt Tisc h. president
and i h i hie! executive of the Loews Corp . a conglom
erate with interests in hotels, tobacco and insurance
"They did a fanlastu job and kept losses to a minimum
Tim h said sentiment was upbeat at a business break
fast he attended Monday, along with about Hilt) politi
cians and business and < ommunity leaders
"Fvervone had the same lending 1 did Wfial we did in
New \ ork very few people c an replicate ' 1'isc.h said
Russians swindled, want refund
M rb 1 hiOHUKu, Kussin
(API — An estimated 450.000
people in this city of 5 million
had their first brush with capi
talism in the form of a gigantic
scheme to liberate them of their
savings.
Now they want their money
back, and their street protests
have taken on an increasingly
anti-government tinge. Officials
have promised some compensa
tion, but worry the swindle
could set back Russia's privati
zation drive.
Police have charged three
firms with fraud and are investi
gating at least nine others. Two
suspects have been arrested.
Taking advantage of wide
spread confusion about Russia's
privatization program, as well as
of citizens' lack of business
experience, the firms promised
to tuke any sum of money and
increase it 250 percent in 00
days.
They said the money and
vouchers were being invested in
various stock and currency
exchanges. Russia had issued
the property vouchers to most
citizens last year as part of its
program to sell off state proper
«y
Business was done in run
down. one-room offices guarded
by men wearing police uni
forms. Applicants attracted by a
blitz of television, radio and
print advertising stood in long
lines to trade their money or pri
vatization vouchers for stamped
contracts.
Initially, some investors did
get big returns and reinvested
meir proms, i ne now oi money
arid vouchers allowed the com
panies to make payoffs, which
in turn attracted new investors
to the companies.
Then abruptly, the companies
vanished.
The victims of the scam held
several demonstrations in Feb
ruary. At a protest immediately
after the crime was revealed,
some tried to break into city
hall.
Nadezhda Ivanova, a 39-year
old factory worker, said in an
interview last month that she
had invested about two months’
salary in one company last fall.
"Hut when we came in Janu
ary to collect the interest, every
thing was locked and bolted,
and the company had disap
peared."
Communist activists have
sought to harness the anger of
the victims. At a Feb. 2fi rally,
one demonstrator held up a sign
that attacked reformist Mayor
Anatoly Sobchak for allowing
the "robbery of the people."
Police spokesman Farid
Safeyev estimated the number of
victims at 450.000 but added:
"It's very hard to judge, because
every day a few thousand more
people turn to us."
The companies were regis
tered but apparently did not
have licenses to deal in vouch
ers and so were not regulated by
government agencies that regu
late voucher companies.
According to Vladimir
Barashnikov, an official of the
mayor's privatization commit
tee, the Amaris company disap
This situation can
certainly be used
by the opponents
of the market
economy and
opponents of
economic reform,
by orthodox
Communists
Sergei Belyayev,
chairman of St Petersburg 's
privatization committee
peered with about Si :t million
in rubles ami 200.000 vouchers,
which have a fact; value of about
$17 but whose actual value is
uncertain. In February, their
street value was around $8.50.
A company called Revanche
took 200,000 vouchers and
$$00,000 in rubles; Business
Navigator took 50.000 vouchers
and an unknown amount of
money.
"This situation con certainly
be used by the opponents of the
market economy and opponents
of economic reform, by orthodox
Communists," said Sergei
Belyayev, chairman of the city's
privatization committee.
"The main thing is that peo
ple don't respond to this provo
cation," Belyayev said. "It's a
strong blow against privatiza
tion, and at the outset we even
thought it was a planned
action."
Schwarzenegger goes ballistic with ad
CAFF. CANAVERAL. Fla (AF) — Talk about top
billing
Arnold Schwarzenegger's name and the title of
his soon-to-be-released movie "I-ast Action Hero”
will be emblazoned on a rocket bound for space
this spring.
Columbia Pictures is paying $500,000 for the far
flung advertisement, which no on«* will see once
the rocket lifts ofl.
"Our judgment was that would be worth it."
snid Mark Gill, senior vice president of publicity
for Columbia Pictures. "You see 10 billboards on
your way to work every day, I'm sure. That's not
unusual. What's unusual is something that breaks
through all that clutter, and this certainly does
that.”
Somali women battle
to rebuild country
MOGADISHU, Somalia (Al’) Widowed In i nil war. strug
gling to i are for their children amid famine, Somali women are
demanding a voice in rebuilding a i ountry ruined by the (tallies
of men
Women's delegations organized by the United Nations plan
to take part in an aid i onferoni.e and pear e tidks ibis month in
Addis Ababa. Ktluopia
A UN aid par kugo proposal lists women’s issues, but sc far
earmarks only $500,000 in funding for women's groups
"We've opened our eyes now. we want to l>e dor isionmakers
and throw some of those men out of their positions said l al
hada Afnillahi Noor, whose lat u is draw u and sad. older than
her \2 years
She lost her husband to civil war, her eldest son was killed by
bandits and she still has eight young < hildren to fr*erl in Hordern,
one of the r ities worst hit bs famine
Mrs Noor lias rented a trur k and solrf food in a town outside
Hardera, joining many of her < ountry women in r ointnerr e
Like mushrooms, rii.kety corrugated stalls have sprouted
along streets in Mogadishu and other cities and many are run by
women who sell food, clothing, cigarettes and other items
Mrs Noor was among 40 representatives from across Somalia
who wrapped up a conference Tuesday that drew up lists of
women's needs
Across the f t.N compound on Tuesday, representatives of the
nation's 15 major factions held a cease fire meeting, all of them
men.
The women’s i onference agreed In set up u coordinating coin
mittee between women’s groups. which run feeding centers,
orphanages and other services It called lor job training centers.
Ioeai 1 health care workers and more schools
Women should receive loans and grants to start their own
small businesses such as handcrafts, catering and tailoring,
women at the conference ugreed
"We need small credit schemes of $50. $100 or up to $500 to
got these businesses started, said /.ahura Mohamed Noor. n
founder of a Somali women's group that runs feeding centers
and schools The Mrs Noors are not related.
While there are no hard figures on how many widows are c ar
ing for their families, ’’a lot of households are headed by
women," said llawaa El Tayeb. a Sudanese who coordinates
women's programs for the U N in Somalia.
A U N. draft proposal for Somali relief and reconstruction this
year calls for $253 million in aid. though so far only $500,000
for women's workshops, training and assessment of needs.
"I don't think it's enough, hut it's a start," Ms Tayeb said "It's
the first document that includes women."
"As the innocent victims of a conflict waged among men.
the women of Somalia are saddled with unique added effects of
war and famine that require separate and urgent attention,"
the U N. draft says.
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