terroristsdestroyworldtradecenter, … · 2018-08-27 · black p1jw255001-4-a00100-1---sb black...

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Government agencies have longwarned about lax U.S. airport securityscreening, something that frequent flierssee on a regular basis. Yesterday, that cru-cial system failed in the most tragic andspectacular way.

Commandeering four airplanes yester-day and using them as giant jet fuelbombs, suicidal hijackers apparentlymade it through airport security screeningin Boston, Newark, N.J., and Washington,armed but not detected. Investigators will

undoubtedly look at whether the attackersmight have had fellow terrorists workingat particular metal detectors and X-raymachines, or planted weapons aboard theplanes through catering or other servicetrucks, but authorities have long raisedalarms about security, with little actiontaken to tighten airport procedures.

Just last year, in an almost propheticwarning, the General Accounting Officesaid airport security hadn’t improved, andin many cases had worsened. Even thoughairport security screening stops an aver-age 2,000 weapons a year, “the security ofthe air transport system remains at risk,”the GAO said.

“People are very creative,” says ViolaHackett, a security guard at Houston’sGeorge Bush Intercontinental Airport,who said she wasn’t surprised that theattackers could bypass airport security.“There are all sorts of things they’re try-ing to hide.”

One passenger aboard a doomed jetcalled her husband from the air, federalofficials said, and said two hijackers werearmed with box-cutting knives, which of-ten have retractable blades.

The Federal Aviation Administrationwas already moving to tighten screeningstandards; in fact, new rules were sup-posed to be issued next week.

The metal detectors and X-ray ma-

chines so familiar at airport concoursesare basically the only line of protection forU.S. airliners. With more than 10,000 com-mercial flights a day, airliners don’t carrysecurity personnel, and airline crews arearmed with little more than plastic hand-cuffs to corral unruly customers and an axfor pilots to escape in the event of a crash.

Pilots and airline officials believe it islikely the hijackers disabled or killed bothpilots in each of the three planes thatstruck the twin towers of the World TradeCenter and the Pentagon, and then flewthe planes themselves into the structures.A fourth airline crashed near Pittsburgh.The two American Airlines flights and thetwo United Airlines flights involved wereall large Boeing Co. two-pilot jets heavilyloaded with fuel for transcontinentalflights.

Pilots are able to lock their cockpitdoor, but the lightweight door, built withbreakaway panels so pilots can escape a

Please Turn to Page A10, Column 1

New Measures Are LikelyTo Add InconvenienceAnd Costs for Passengers

By David S. CloudAnd Neil King

Staff Reporters of The Wall Street Journal

By successfully attacking the most promi-nentsymbolsofAmericanpower—WallStreetand the Pentagon—terrorists have wiped outany remaining illusions that America is safefrom mass organized violence.

That realization alone will alter the waythe U.S. approaches its role in the world, aswell as thewayAmericans travel and do busi-ness at home and abroad.

The death toll from the hijacked jets’ at-tacks that destroyed the World Trade Centerin lower Manhattan, and damaged the Penta-gon, was impossible to gauge immediately.But it could eclipse the loss of life the countrysuffered in the Japanese attack on Pearl Har-bor, when more than 2,300 perished.

It wasn’t immediately clear who was re-sponsible for the attack, though official atten-tion focused on Middle East terrorist OsamabinLadenandhis organization.OneU.S. offi-cial said intelligence agencies already hadgathered“stronginformation” linkingMr.binLaden to the attacks. If the bin Laden organi-zation isn’t directly responsible, U.S. officialssuspect, it could have sprung from a networkof Islamic terror groups he supports and fi-nances.

Thegravityof thechallenge to thecountrywassummarizedbySen.JohnMcCain,aViet-namWar veteran, who said: “These were notjustcrimesagainst theUnitedStates, theyareacts of war.”

Yetawaragainst terrorismisunlikeacon-ventionalwar,andinsomeways is farscarier.As a traumatized nation saw in gruesome de-tailonitstelevisionsets, terroristsattackcivil-ians, not soldiers. And while the wars of thepast century involved nation-states that couldultimately be defeated, a war against terror-ism involves a less distinct enemy, whose de-feat will be hard to ensure.

PresidentBushnearlypromisedarmedre-sponse in his response to the tragedy. “Amer-ica has stood down enemies before, and wewill do so this time,” hesaid innationally tele-vised address from the Oval Office. In apointed warning to terrorists as well as to na-tions such as Afghanistan, which hosts Mr.bin Laden, the president declared: “We willmake no distinction between the terroristswho committed these acts and those who har-bored them.”

Leaders of the House of Representativesand the Senate–shuttered yesterday amid thethreat–plantoreconvenetodayinaspecialses-sion to consider a bipartisan resolution con-demning the terrorist attacks.

The sheer sophistication of the terroristswas remarkable. The FBI is operating on theassumption that there were multiple hijack-ers on eachof the flights that struckNewYork


7i i i

Business and Finance

i i i

World-Wide

A Wall Street Journal News Roundup

They were like scenes from a catastro-phe movie. Or a Tom Clancy novel. Or aCNN broadcast from a distant foreign na-tion.

But they were real yesterday. And theywere very much in the U.S.

James Cutler, a 31-year-old insurancebroker, was in the Akbar restaurant on theground floor of the World Trade Centerwhen he heard “boom, boom, boom,” herecalls. In seconds, the kitchen doors blewopen, smoke and ash poured into the res-taurant and the ceiling collapsed. Mr. Cut-ler didn’t know what had happened yet,but he found himself standing among bod-ies strewn across the floor. “It was may-hem,” he says.

Around the same time, Nestor Zwyhun,the 38-year-old chief technology officer ofTradecard, an international trading firm,had just stepped off the New Jersey com-muter ferry and was walking toward theWorld Trade Center when he heard asound “like a jet engine at full throttle,”he says, then a huge explosion. Smokebillowed in the sky and sheets of glasswere falling everywhere. “I stood there fortwo seconds, then ran,” Mr. Zwyhun said.

More than 100 floors above him at theTrade Center offices of Cantor Fitzgerald,someone put a call from the company’sLos Angeles office on the speaker phone.What was happening there? The Los Ange-les people heard someone say, “I think aplane just hit us.” For more than five min-utes, the Los Angeles people listened inhorror as the sounds of chaos camethrough the speaker phone, people scream-ing, “Somebody’s got to help us. … Wecan’t get out. … The place is filling withsmoke.” Then the phone went dead.

Three hundred miles to the south, inWashington, D.C., a jet swooped in fromthe west and burrowed into the side of thePentagon building, exploding in a tower offlame and smoke. Mark Thaggard, an of-fice manager in the building, was therewhen the plane hit. People started runningthis way and that, trying to get out. “Itwas chaotic,” Mr. Thaggard says. “It wasunbelievable. We could not believe thiswas happening.”

The nation stood in shock and horroryesterday after three apparently hijackedjetliners, in less than an hour’s time,made kamikaze-like crashes into both tow-ers of the World Trade Center and thePentagon, killing hundreds, maybe thou-


Boston

New YorkCity

Mass.

Vt.

Conn.

N.J.

N.H.

Virginia

Pennsylvania

New York

WashingtonD.C.

Newark

BOSTON: American Airlines Flight 11, a Boeing 767, leaves Boston at 7:59 a.m. EDT for Los Angeles. This flight, with 92 people aboard, including 11 crew, becomes the first plane to hit the World Trade Center.

NEWARK: United Flight 93, a Boeing 757 aircraft, leaves Newark at8:01 a.m., headed for San Francisco with 45 people, including seven crew. This flight crashes at about 10 a.m. southeast of Pittsburgh.

WASHINGTON: American Flight 77, a Boeing 757, departs Dulles Airport at 8:10 a.m., bound for Los Angeles with 64 people aboard, including six crew. This plane crashes into the Pentagon in Arlington, Va., just south of Washington, D.C.

NEW YORK: At about 8:50 a.m., Flight 11 from Boston hits the North Tower of the World Trade Center At about 9:03 a.m., a second plane hits the South Tower of the trade center. Both towers later collapse.

NOTICE TO READERSBecause delivery of The Wall Street

Journal may be delayed for many read-ers due to repercussions from yester-day’s terrorism attacks, the entire on-line edition of the Journal can be ac-cessed free of charge, at WSJ.com. U.S.financial markets were closed on Tues-day and there are no U.S. stock listingsin the paper today. Abbreviated statisti-cal coverage begins on page B3.

An hour of terror changed every-thing.

Far from the World Trade Center orthe Pentagon, Florida shut down itsstate universities yesterday. San Fran-cisco closed its schools, as well as theTransAmerica building and pedestrianaccess to the Golden Gate Bridge. Majorleague baseball games were canceled.

The popular, needlelike Stratosphere

tower on the north end of the Las Vegasstrip was closed; so was the Paris casi-no’s mock Eiffel Tower. University ofVirginia psychologist Dewey Cornell can-celed his lecture on student threats andviolence inside the schools—so his audi-ence of principals could go back to theirschools to deal with the violence outside.

“You just thought America was the saf-est country,” said Jesse Strauss, a 13-year-old eighth-grader at Pelham MiddleSchool, a Manhattan suburb. His motheradded, “Our world as we know it isn’t go-ing to return to normal for a long time.”

Yesterday’s terrorism darkened,marked and forever altered the wayAmericans live their lives.

“We are going to have to learn what aPlease Turn to Page A6, Column 4

7 7

What’s News—

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Streets of ManhattanResemble War ZoneAmid Clouds of Ash

Hour of HorrorForever AltersAmerican Lives

A Day of Terror

7 77 7

The Eye of the Storm:One Journey ThroughDesperation and Chaos

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A Nightmare of Falling Bodies,Acrid Smoke and Heroism;‘It’s Coming Down! Run!’

Nation StandsInDisbeliefAndHorror

TERRORISTS DESTROY WORLD TRADE CENTER,HIT PENTAGON IN RAID WITH HIJACKED JETS

By Wall Street Journal staff reportersScott McCartney in Seattle, J. LynnLunsford in Los Angeles and DavidArmstrong in Boston.

Attacks Will Force PeopleTo Make AdjustmentsInWays Large and Small

By Wall Street Journal staff reportersJune Kronholz in Washington,Christina Binkley in Los Angeles andClare Ansberry in Pittsburgh.

ALLMAJORU.S. FINANCIALmar-kets closed yesterday and remain

closed today in the wake of the terroristattack on the World Trade Center. Thenear-panic reaction in the global mar-kets that remained open suggested thatsubstantial damage was done to thepsyche of a world financial system al-ready on edge from prospects of an in-ternational recession. In Tokyo, the Ni-kkei stock index fell below 10000 earlyWednesday for the first timesince1984.

(Article on Page B1)i i i

The World Trade Center housedmany Wall Street and banking firms,law offices, technology companies,trading firms and other businesses.Many escaped before the destructionof the buildings yesterday, but the tollof dead and injured is unclear.


The attacks threaten to push a frag-ile global economy into widespread re-cession, smashing consumer confi-denceanddisrupting basic commercialfunctions such as air travel.

(Article on Page A1)i i i

The dollar tumbled in global marketsfollowing theattacks. In lateLondon trad-ing, the euro stood at 91.44 U.S. cents, upfrom 89.95 cents late Monday in NewYork. The dollar tumbled to 119.16 yenfrom 120.93 yen and the British poundrose to $1.4751 from $1.4579.


Energy prices soared on fears the at-tacks might have originated in the Mid-dle East and any retaliatory actioncould disrupt supplies. U.S. companieswent on heightened alert to safeguardthe nation’s energy supplies.

(Articles on Page A2)i i i

Telecom systems were strained asthe terrorist attacks on New York andWashington knocked out telephone andwireless service across the Northeast.


The Internet proved the most reli-able way to communicate following theattacks, as the phone system saggedfrom severed lines and an extraordi-nary volume of calls. Corporate execu-tives used e-mail to find employeesacross town or across the country.


Insurers are facing what is certainlythe largest man-made and possibly thelargest-everdisaster theyhavedealtwithin yesterday’s destruction, with the pricetag estimated at over $10 billion.


Xerox reached an equipment-financ-ing agreement with GE Capital that willlet Xerox erase about $5 billion of debt.


TreasurySecretaryPaulO’Neill leftChinayesterdaypersuaded thatauthor-ities in Beijing already are planning toadopt a significantly more flexible cur-rency system—at their own pace.


After months of reviewing the Clin-ton-era money-laundering crackdown,President Bush’s Treasury Depart-ment has completed a set of revisionsthat would slightly ease rules in onearea and tighten them in another.

(Article on Page A16)

s 2001 Dow Jones & Company, Inc. All Rights Reserved.

Markets—Stocks: Market closed.Bonds: Market closed.Commodities: Dow Jones-AIG futures

index 101.329, up 0.168.Dollar: 119.16 yen, off 1.77; 1.0936 eu-

ros, off 0.0181; 2.1389 marks, off 0.0355.

The World has become a different placein the wake of yesterday’s terrorist at-tacks as a new kind of war has beendeclared on the world’s democracies. Re-view & Outlook on page A18.Elsewhere:§ Just as Japan on Dec. 7, 1941, de-stroyed America’s historic belief in itsocean-guarded invulnerability, now Sept.11, 2001, joins that date to live in in-famy—for obliterating Americans’ sensethat terrorism was something that hap-pened somewhere else, A20.§ Although the perpetrators of the terror-ist attacks have yet to be identified, Is-lamic-Americans in many U.S. citieshave already begun grappling with anangry backlash. Islamic groups in thiscountry condemned the attacks, A15.§ Health workers mobilized an unprece-

dented nationwide effort to treat thethousands of injured taken to hospitals,identify the dead and supply tens of thou-sands of units of blood, A6.§ An anxious waiting took hold in manysuburban towns that dot the train linesthat carry tens of thousands of commut-ers into lower Manhattan each day, andword of who was still missing filled neigh-borhoods, A2.§ Their Internet sites swamped, manyAmerican newspapers turned to an old-fashioned device—the special edi-tion—to disseminate news quickly on theterrorist attacks, A3.§ The closure of the New York exchangesshut down the Chicago futures markets,creating a situation in the Farm Belt notseen since the Chernobyl nuclear plantexplosion in April 1986: Nobody knewthe price of a bushel of U.S. grain, B3.

By John BusseyStaff Reporter of The Wall Street Journal

NEW YORK—If there’s only one sightI’ll remember from the destruction of theWorld Trade Center, it is the flight of des-peration—a headlong leap from the top-most floors by those who chose a differentdeath than the choking smoke and flame.Some fell swinging their arms and legs,looking down as the street came up atthem. Others fell on their backs, peeringupward toward the flames and sky. Theydropped like deadweight, several seconds,hopeless and unhelpable.

And always the same end. Somecrashed into the plastic awning over theentrance to the North Tower. Others hit aretaining wall. Still others landed on lamp-posts and shrubbery. After the 80-floordrop, the impact left small puffs of pinkand red vapor drifting at ground level.Firefighters arriving on the scene ran forcover.

In the movie “Armageddon,” the aster-oids pierced New York buildings sendingshrapnel out the other side. That, remark-ably, is exactly what it looked like from thestreet, when the first plane hit the northtower of the World Trade center.

The first warning was the sound of jetengines, flying low over the island of Man-hattan. A second or two later, whatseemed like a sonic boom.

From the sidewalk, behind the buildingthat houses The Wall Street Journal’s of-fices just across the street from the WorldTrade towers, I didn’t see the first planedive into its target. But I saw the result:an arc of debris, aflame against the blue


By Greg Ip and John D. McKinnonStaff Reporters of The Wall Street Journal

WASHINGTON—Yesterday’s terroristbombings threaten to push an already frag-ile global economy into widespread reces-sion, smashing consumer confidence anddisrupting basic commercial functionssuch as air travel and financial markets.

“A full-blown global recession is highlylikely,” Sung Won Sohn, chief economist atWells Fargo & Co., predicted in a reportyesterday afternoon.

Economic policy makers did their bestto ensure calm. Shortly after noon, theFederal Reserve issued an emergencystatement stating that the central bank'ssystem was “open and operating” and thatofficials were “to meet liquidity needs” ofthe global financial system, echoing a simi-lar declaration issued during the 1987stock-market crash.

Treasury Secretary Paul O’Neill issued astatement from Tokyo, saying: “In the faceof today’s tragedy, the financial system func-tioned extraordinarily well, and I have everyconfidence that it will continue to do so in thedays ahead.” No major problems were re-ported in the banking system, thoughbranches did close in New York. The stock,bond, and commodity markets all closed andwill remain closed today.

‘Everything Possible’“I’m sure that central bankers every-

where will do everything possible to main-tain calmand seek to ensure theworld econ-omy functions smoothly in the face of thishorrendousdeed,”FederalReserveBank ofNew York President William McDonoughtold Dow Jones Newswires by telephonefrom Basel, Switzerland, where he was at-tending meetings at the Bank of Interna-tional Settlements. Fed Chairman AlanGreenspan was on his way back to the U.S.from those meetings, but his airplane re-turned to Switzerland after the attacks.

Economists groped in vain for histori-cal precedents to help evaluate the poten-tial impact of such a shocking, tragic

event on the economy. “I don’t knowwhere to look for analogies,” said AlanBlinder, economics professor at PrincetonUniversity. “Confidence-shaking eventsusually have transitory negative effects onconsumer spending. But we’ve never seenanything like this that I can think of.”

The most recent comparable event wasthe 1990 Gulf War, involving a spike in oilprices and dispatch of U.S. troops to theMiddle East, which depressed confidenceand played a decisive role in bringingabout the 1990-91 recession.

But many economists said this event islikely to be more severe because of themuch greater loss of life on U.S. soil. In1990, travel was depressed by fears of aterrorist attack. This time, the entire air-travel system has been shut down by ac-tual attacks. “One might expect [confi-dence]) … will plunge much like they didwhen the Gulf crisis began in August of1990. The weakness might be more severebecause this impacts Americans more di-rectly, it’s on our soil,” said Ray Stone,economist at Stone & McCarthy ResearchAssociates.

In addition, he said, “the economylooks more fragile going into this episodethan it did back in 1990.” Business invest-ment and exports are falling, unemploy-ment has risen sharply and stock pricesare sinking. The impact of the tragedy onconfidence could severely undermine con-sumer spending, which had been the econ-omy’s remaining bulwark.

Consumers, Mr. Stone added, willlikely “spend less on big-ticket items suchas autos, as well as things directly af-fected. Air traffic likely will be lower, peo-ple less willing to visit Washington or NewYork City or other large cities, less likelyto visit sporting events where they’re wor-ried about a terrorist attack.”

But others played down any long-termconsequences. “There’s always specula-tion that these disasters have extreme eco-nomic consequences, but they rarely do,”


Attacks Raise Fears of a Recession

U.S. Airport Security ScreeningLong Seen as Dangerously Lax

Death Toll, Source of Devastating Attacks Remain Unclear;U.S. Vows Retaliation as Attention Focuses on bin Laden

BUSH PROMISED action against ter-rorist attacks in the Eastern U.S.

The death toll from the hijacked-jet at-tacks that destroyed the World Trade Cen-ter’s towers in New York and damaged thePentagon outside Washington was impos-sible to gauge immediately. But the presi-dent said “thousands of lives were sud-denly ended.” A fourth hijacked planecrashed near Pittsburgh. Another com-mercial jet went down in western Pennsyl-vania. It wasn’t immediately clear whowas responsible for the attacks, but thepresident told the nation the U.S. “wouldmake no distinction” between terroristsand “those who harbored them.” He virtu-ally promised armed response earlier yes-terday. “Make no mistake: The UnitedStates will hunt down and punish those re-sponsible for these cowardly acts,” hesaid. (Articles on pages A1 and A15)

Sen. McCain, a Vietnam War vet-eran, expressed the incidents’ gravity:“These were not just crimes against theUnited States, they are acts of war.”

i i iHEALTH TEAMS launched efforts to

treat thousands of injured victims.Health workers mobilized a nationwide

effort to treat the thousands of injuredtaken tohospitals, identify thedeadandsup-ply tens of thousands of units of blood in thewake of the terrorist attacks. More than2,000 people were reported injured in NewYork City, and hospitals expected to seemore. Blood-center officials said immedi-ate needs would be met by available sup-plies, but they worried that they would runshort in coming days as they face the needto replenish supplies. (Article on Page A6)

The Health and Human Serviceschief activated all of the nation’s 80 spe-cial disaster teams. It was the first gen-eral mobilization of the teams.

i i iThe FAA shut the national air-traffic

system, leaving air travelers stranded, fol-lowing the crashes of the fourhijacked com-mercial jets in New York, Washington andPennsylvania. While the FAA said it mightlift its ban on flying as early as noon today,the impact of the suspected hijackers ap-pears permanent. (Article on Page A3)

i i iWorld leaders reacted with revulsion to

the attacks in the U.S. and demanded waron international terrorism, but in the Mid-dle East some people supported the actions.The U.N.’s Annan said the “deliberate actsof terrorism” traumatized the world, but hecalled for reasoned judgment.

i i iNew York called off its primary elec-

tion after the attack on the World TradeCenter. Mayor Giuliani said he called offthe election after consulting with the gov-ernor of New York, and they will decidelater when it will be rescheduled. Themayor said all available police and firepersonnel had been deployed to LowerManhattan to aid in rescue operations.

i i iCongressional Republicans are craft-

ing standby spending cuts meant to show-case support for Social Security whilethey push for new tax cuts to spur the econ-omy. The GOP lawmakers appear unwill-ing to wait for clear guidance from Bush.

i i iAfghanistan’s ruling Taliban launched

a fresh offensive as the chief of the rivalforces against it said their military chiefMasood had been seriously wounded in anassassination attempt. Amid rumors Ma-soodhadbeenkilled inSunday’sattack, offi-cials said doctors were recommending Ma-sood be taken to Europe for treatment.

i i iIsraeli tanks encircled the Palestinian-

ruled city of Jenin in a West Bank operationthat Israel’s army said was intended to pre-vent suicide bombers from reaching Israel.That prompted fighting in which two Pales-tinians died. Truce talks fell through amidarguments over a venue and Palestiniancondemnation of the tank operation.

i i iPowell arrived back in Washington

from Peru after cutting short a SouthAmerican trip because of the attacks inNew York and Washington. The secretaryof state had attended a meeting of theOrganization of American States. Foreignministers began the meeting with a mo-ment of silence for the American victims.

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Energy companies that control the na-tion’s electricity and natural-gas suppliesas well as big oil companies went onheightened alert to safeguard the systemfrom possible attack.

Across the country, utility emergencycontrol centers came to life and extra secu-rity patrols were initiated. But with thou-sands of miles of pipelines and transmis-

sion lines, it was largely a symbolic effort.With energy markets suspended and trad-ing floors closed in New York and Hous-ton, the biggest impact was financial.

In California, grid officials were prepar-ing to order plants to operate today accord-ing to work schedules submitted for yester-day’s market day.Enron Corp., Dynegy Inc. and Reliant

Energy Inc. largely shut down their head-quarters offices in Houston, except for es-sential personnel. However, they said theywere maintaining normal deliveries ofelectricity and gas to customers. “We havea skeleton crew on the trading floor but Idon’t think anyone is focused on tradingtoday,” a Reliant spokesman said.

Nuclear ReactorsThe Nuclear Regulatory Commission

ordered the nation’s 104 nuclear reactorsto implement heightened security plans al-though many utilities that own generatingplants already had done so. Exelon Corp.put its 17 reactors at 10 plant sites on alertvoluntarily—and largely vacated its 60-plus story headquarters office tower indowntown Chicago. “We sent everybodyhome we could,” said Don Kirchoffner,head of communications for the firm thatowns the old Commonwealth Edison andPhiladelphia Electric utilities. “At ourplants, we’ve doubled the security.”

Nuclear power plant containment build-ings, where radioreactive materials arehoused, are “hardened” against war-timeor terrorist attack. They are designed towithstand accidental air crashes and hurri-canes, as well, and have concrete walls upto four feet thick that lie outside heavysteel liners, often an inch thick.

Nevertheless, critics always havefeared that terrorists might be able to getinside the plants and cause mayhem. Edi-son International said it has asked theCalifornia Highway Patrol to monitor traf-fic along Interstate 5, which lies a shortdistance from its San Onofre nuclear plantsouth of Los Angeles that’s operated by itsSouthern California Edison unit.

Levels of ManagementLike companies everywhere, Tulsa-

basedWilliams Cos. started the day by locat-ing its top three levels of management.Then the energy company traced employeetravel to determine whether any employeesmight have been in lower Manhattan or atthe Pentagon at the time of the terroristattacks. “We still don’t know for sure,” Will-iams spokesman Jim Gipson said.

In the wake of the attacks, oil compa-nies said they heightened security mea-sures at refineries but no company re-ported a curtailment in the production ofgasoline or other refined products.BP PLC, Shell Oil Co., Chevron Corp.,

Valero Energy Corp. and Phillips Petro-leum Co. all said that their facilities wereoperating normally.

A spokesman for Valero, San Antonio,said the company instructed refinery man-agers in a morning conference call to re-strict the flow of “outsiders” into its plants.

PhillipsPetroleum,Bartlesville,Okla., in-stituted a travel ban for overseas U.S. work-ers. “We have just said, ‘stay where you arefor now,’” a Phillips spokeswoman said.Kinder Morgan Inc., Houston, shut

down a petroleum-products storage facil-ity in New York Harbor that feeds North-east refineries and gas stations. The 6.6million-barrel facility stores and transfersgasoline, jet fuel and diesel.

Many of the people who work in down-town Manhattan live in New Jersey, lo-cated just across the Hudson River. Yester-day, an anxious waiting had taken hold inmany of the towns that dot the train linesusually carrying tens of thousands of com-muters a day.

Word of who was still missing filledneighborhoods in Maplewood, about 35minutes west of New York, as residentsgathered in small groups along the town’stree-lined streets.

Among those waiting were the teachersof the South Mountain YMCA, a day-carecenter located right along the tracks.

About 250 babies and children weredropped off at the center Tuesday morn-ing. More than half of the children haveone or both parents who work in the city.

Parents started calling almost as soonas the first plane collided with the WorldTrade Center. After local schools nearbystarted closing, teachers began the task oftrying to contact parents to pick up theirchildren—and determining which childrenhad parents who were unaccounted for.

As of 12:30, director Marie Papageorgiscouldn’t reach the parents of about 50 chil-dren. She separated the files of parentswho worked in the city. By 4 p.m., thenumber of children with missing parentshad dropped to about 10. But in her hand,she held three files of children whose par-ents she knew worked at the World TradeCenter.

Sylvia Achee and her son Nico areamong the lucky ones. Her husband,David, works at 4 World Trade Center. Hecalled her right after the first blast, butshe lost contact with him after the secondblast and the collapse of the towers.

“I turned on the news,” Ms. Acheesaid, and when she saw the collapse, “myheart fell.” Another wave of calls pouredinto her house from people asking whetherhe had called again, and she almost sankin relief when he did, about an hour later.Mr. Achee had tried to help some of theinjured and took a ferry across the riverwith a badly burned fire fighter. Ms.Achee said her husband was bruised, butotherwise all right. He was still not homeas of 5 p.m.

It was only two months ago that Ms.Achee removed her son from the day-carecenter at the World Trade Center because,she feared lax security and that he couldbe a target. She also repeatedly asked herhusband, a locksmith, to stop workingthere. “We have talked about this a lot.”

Ms. Papageoris said that her staff willwait for parents—or guardians — as longas it takes. Other parents have volun-teered to take care of any children whoseparents are unaccounted for. “We are justwaiting it out and hoping that somehow,everyone shows up,” Ms. Papageoris said.Teachers took heart in the funny sto-ries—one man who was late to work at theTrade Center because his three-year-olddaughter had been especially difficult. Hewatched the explosion from a ferry in-stead of being at his desk.

The task of finding parents was madeconsiderably easier by an e-mail list thecenter has compiled over the last year.Many parents wrote back from Internetcafes in the city after they had evacuatedor from their own computers, because thephone lines weren’t working.

Virginia Brown, who has two sons atthe center, already went to try to donateblood, though she found a five-hour wait.She said that many families have movedto communities such as Maplewood andSouth Orange in recent years because ofescalating real-estate prices in Manhat-tan. But, she said, a tragedy like thisshows how closely the suburbs and cityare linked.

Selma Zupnik sat waiting at the Maple-wood train station last night for her daugh-ter, Susan, who had escaped from the 64thfloor of the second tower. “The last mes-sage I got was to bring clothes,” Ms. Zup-nik said. She said her daughter, an analystfor the Port Authority, is scared andchilled from the showers she had to walkthrough when she arrived from the ferryin Hoboken. Fire officials had all the vic-tims shower because they feared theywere covered with asbestos.

Ms. Zupnik has been communicatingwith her daughter, who is deaf, through a

wireless paging device. “I cannot wait tosee her. I am thankful she is safe. But I amso sad about all the people who werekilled.”

Vik DeLuca, Maplewood’s mayor, saidthat at least a few victims had been takento area hospitals after they stumbled off ofcommuter trains. He feared that Maple-wood and New Jersey communities wouldbe hit hard. “There are between 2,500 and3,000 people who go to New York every dayfrom Maplewood, and many of them workdowntown,” Mr. DeLuca said. “This is go-ing to be a very long night.”

In the nearby community of Millburn,N.J., where many residents work in thefinancial-services industry in lower Man-hattan, neighbors who on other dayswould casually wave to each other weremilling about the streets in groups. Oneman, arriving home from Manhattan bymidafternoon, was greeted by his wife inthe driveway. The two wiped tears away asthey hugged for several minutes and disap-peared into their house.

Ellen Kirkwood, whose husband, Eu-gene, works across the street from OneWorld Trade Center, was attending thefirst Parent-Teacher Organization meet-ing of the year at Wyoming ElementarySchool in Millburn yesterday morningwhen the principal made an announce-ment.

“She said there was some kind of inci-dent in New York,” said Mrs. Kirkwood,whose son was in kindergarten class. “Iwasn’t really paying much attention, butthen she said something about the WorldTrade Center, and I got up and left,” alongwith several other people. She tried to callher husband from the school and couldn’tget through, so she picked up her one-year-old and three-year-old from the baby sitterand headed home.

Her husband, meanwhile, was at thetrading desk at Smith Barney Asset Man-agement on the 43rd floor of 7 World TradeCenter when the first plane hit. “The build-ing shook for a long time, and we lookedout the window and saw debris fallingdown and fire all over the place.” Mr. Kirk-wood said some people in the office startedcrying, and then someone on the desk toldeveryone to get out.

Outside, Mr. Kirkwood started headingtoward the ferry. “I stopped to talk to some-one I recognized and looked up saw aplane bank and go right into the othertower,” Mr. Kirkwood said. At that pointhe knew it was intentional, and said to theother person, “Let’s get out of here.”

On the ferry to New Jersey, Mr. Kirk-wood said everyone stared back towardManhattan “in shock.” He managed to getthrough on his cellphone to his home andleft a message that he was OK.

Back in Millburn, Mrs. Kirkwood ar-rived at home with her two children fromthe P-TO meeting and heard the messagefrom her husband. “I was pretty together,but I was still very relieved.” Mr. Kirk-wood arrived home a little later, and bylate afternoon news reports said that hisbuilding also had collapsed.

For many children, the news quicklyturned from disbelief to anxiety over whatmight have happened to their parents whowork in New York City. As word spread,schools called special assemblies and triedto help students contact their families bytelephone and by e-mail. At Pelham Mid-dle School in Pelham, N.Y., a small suburbjust outside New York City with a heavypopulation of Wall Street traders, invest-ment bankers and brokers who work in ornear the World Trade Center, some chil-dren were crying after failing repeatedlyto contact their parents’ cell phones oroffices.

One student at Pelham High Schoolwas called to the office in the earlymorning and went home after beingtold that his father, a bond trader,worked on the floor that the first planehit. By late afternoon, there was still noword of his fate.

“At first I assumed it was an accident.Once we had heard that the Pentagon hadbeen hit, and a second plane crashed in,everybody knew it was a terrorist attack,”said Jesse Strauss, a 13-year-old eighth-grader at the school. “Throughout the day,everybody wanted to get out of school assoon as possible and get home and see iftheir parents were all right.

“I’m still in the shock that somebodywould do something like this and that thiscould really happen,” Jesse said. “You just


Some Suspect the TerrorismHas Origins in Mideast,Fear Supply Disruption

A DAY OF TERROR

Grammy CeremonyIs Canceled After Attack

By Alexei BarrionuevoStaff Reporter of The Wall Street Journal

Energy prices soared on fears the ter-rorist attacks might have originated in theMiddle East and that potential U.S. retalia-tory action could disrupt oil supplies.

The price of the U.S. benchmark WestTexas Intermediate yesterday rose to ashigh as $31 a barrel for both October andNovember delivery following the attacks,up from $27.63 for the October price Mon-day. The attacks shuttered commoditytrading at least through today at the NewYork Mercantile Exchange, which oper-ates in a World Financial Center buildingnext door to the World Trade Center.

Gasoline pump prices also began shoot-ing up in locations nationwide in the wakeof the attacks. By lunchtime, workers re-ported seeing stations posting prices of$2.09 a gallon in Lansing, Mich. Consum-ers in Tulsa, Okla., also reported pricesthat had spiked by more than 20 cents agallon at several stations.

Across the country, people lined up atgasoline stations to top off their tanks,apparently concerned about gasoline sup-

plies. Exxon Mobil Corp., one of the coun-try’s largest gasoline retailers, advisedagainst it. The company said it had “am-ple supplies” of gasoline and urged con-sumers to “maintain normal buying habitsto avoid artificial run-outs.” In a state-ment, BP PLC said “for today, we are hold-ing the line on prices.”

Trucks lined up several deep at ValeroEnergy Corp.’s Benicia, Calif., gasolinepick-up terminal. Valero was the only refin-ing company in the San Francisco BayArea that kept open its terminal, saidGreg Kaneb, a Valero vice president.Other companies apparently closed theirsfor security reasons, later reopening themafter lunch. As a result, wholesale pricesfor several refiners shot up as much as 20cents a gallon, Mr. Kaneb said.

“There’s going to be a public reactionthat’s going to create some uncertainty,”said Jeff Pillon, energy analyst at theMichigan Public Service Commission.“We’ve seen a lot of volatility. For thingsto jump around would not be surprising.”

Should oil prices continue to climb,members of the Organization of PetroleumExporting Countries appeared ready tostep in and boost production. Ali Rod-riguez, OPEC’s secretary general, said theorganization is prepared to take whatevermeasures are necessary to stop pricesfrom spiking. Speaking by radio in Cara-cas, Venezuela, Mr. Rodriguez said stabil-ity in oil markets is the group’s top prior-ity, and that he fully expects prices to leveloff.

Several key OPEC producers, includingSaudi Arabia, Iran and Kuwait, could turnup the taps. The organization has cut 3.5million barrels a day from their produc-tion this year and has some excess supply.“OPEC is in a great position,” said AdamE. Sieminski, global energy strategist atDeutsche Banc Alex. Brown.

Meanwhile, a surge in panic buying thenext few days could send prices to $35 abarrel, said Michael C. Lynch, chief en-ergy economist for DRI-WEFA Inc. “Theindustry is going to expect some kind ofretaliation” from the U.S., Mr. Lynch said.

After the 1993 bombing of the WorldTrade Center, which led to the close of theNYMEX for less than a day, oil prices roseto a then-four-month high of $21 a barrel.

A greater concern is a repeat of thepanic buying that followed the 1979 Ira-nian revolution. Fears the revolutionwould spread to other Middle East nationsled the oil industry to stockpile greater-than-normal inventories for nearly a yearand a half. Prices didn’t drop until indus-try storage tanks were full, Mr. Lynchsaid.

The closing of the NYMEX presentsmore immediate problems for the crude-oil and natural-gas markets. Analysts ex-pect markets in London, Singapore and


Attacks in U.S. Spur Rise in Energy Prices

By Wall Street Journal staff reportersRebecca Blumenstein, Tim Layer andRobert McGough.

By Sue ShellenbargerStaff Reporter of The Wall Street Journal

Child-care centers at both the WorldTrade Center and the Pentagon were evac-uated after the terrorist attacks, withoutany reports of children being injured, ac-cording to the companies that operate thecenters.

But the tragedy dealt a serious blow towork-site child care, raising anew ques-tions about whether society is safe enoughto situate groups of children in visible,high-traffic locations—exactly the kind ofplaces working parents have sought, notonly for convenience, but, ironically, forsafety’s sake as well.

A spokeswoman for Knowledge Learn-ing, San Rafael, Calif., operator of a child-care facility on a lower floor of the WorldTrade Center, said the center was evacu-ated immediately after the plane crashedand about 90 minutes before the towerscollapsed, the spokeswoman said. Thecompany had no reports of any injuries.

A 167-child center at the Pentagon wassafely evacuated, said a spokeswoman forAramark, the Golden, Colo., operator ofthe center. The center, a one-story Chil-dren’s World Learning Center facility lo-cated across a parking lot a short distancefrom the Pentagon, was evacuated as soonas warning sirens sounded, the spokes-woman said. Children were taken immedi-ately to an undisclosed “backup location”designated for such emergencies. Enroll-ees are the children of Pentagon employ-ees.

Aramark also closed a dozen other cen-ters on government property and sug-gested parents pick up children early atother centers considered potentially vul-nerable.

Several child-care companies said theyclosedchild-care centersyesterdaynearpo-tential terrorist targets, regardless ofwhether the building or employer shutdown.

More than a dozen children were killedin the 1995 bombing of the Oklahoma Cityfederal building, which also contained achild-care center. While the customarynear-ground location of child-care facili-ties made children leading victims in the1995 truck bombing, it saved them in yes-terday’s air attack.

However, the scope of yesterday’s at-tack sparked a more profound sense ofhelplessness among parents. “I wouldthink twice” before leaving a child in agovernment or other prominent publicbuilding, says Diana Chrissis, an Arling-ton Heights, Ill., software executive andmother of two, echoing other parents.

Many child-care centers made big in-vestments in improved security since theOklahoma City bombing, adding bullet-proof glass, reinforced concrete and “lock-down walls” that prevent shattered glassfrom flying. They have also improved en-tryway security, added in-classroom videocameras, and stepped-up employee back-ground checks. However, they have fewdefenses against terrorism.

Ironically, centers sponsored by the fed-eral government, which operates dozens ofcenters nationwide with thousands of chil-dren enrolled, have generally set an indus-trywide example in recent years for goodquality, staffing and security—in everyway except safety from terrorism.

Childhood experts noted that householdor automobile accidents pose a greater riskto children. “The question this raises is,‘Are any workplaces secure?’ ” says RogerBrown, co-founder and CEO of Bright Hori-zonsFamily Solutions, a Watertown, Mass.,operatorof 366centers.Many child-carecen-tersbecamemeetingplaces for anxiouspar-ents yesterday, he notes, providing supportand a sense of community.

For many parents, however, the at-tacks sparked the most instinctual offears. Pam Millar, a Severn, Md., engi-neer, was sitting at her desk at NASAwhen she heard the news. The firstthought that sprang to mind was of hertwo-year-old daughter, who was playing ata government-sponsored child-care centernearby. “Oh, my daughter is here,” shethought, and picked up the phone to dialthe center, one time, two times, then athird. “What’s going on? What are yourpolicies? Can I pick her up at any time?”she asked staff members, who reassuredher repeatedly that everyone was fine. Sheand her husband picked the child up early,after their offices closed for the day.

Child-Care CentersWere EvacuatedQuickly and Safely

Energy FirmsAct to ProtectTheir Systems

By Wall Street Journal staff reportersRebecca Smith, John Emshwiller andAlexei Barrionuevo.

LOS ANGELES—The National Acad-emy of Recording Arts and Sciences saidthat the second annual Latin GrammyAwards, scheduled to be held today in LosAngeles, have been “postponed until fur-ther notice” due to the catastrophic eventsin New York, Washington, D.C. and out-side Pittsburgh.

The academy said it will hold a newsconference later today.

Musical luminaries such as Ricky Mar-tin and Carlos Santana were scheduled toperform at the ceremonies, which were tobe telecast on CBS television from the Fo-rum auditorium. The awards were re-cently relocated to Los Angeles from Mi-ami because organizers feared disruptionsby anti-Castro protesters.

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Airlines Are DivertedTo Canada; TravelersLook for Rental Cars


The crash of two hijacked commercialjets into New York’s World Trade Centerprompted the Federal Aviation Administra-tion to take the unprecedented step of shut-ting down the national air-traffic system,leaving tens of thousands of travelersstranded at airports across the country.

While the FAA by late afternoon said itmight lift its ban on flying as early asnoon EDT today, throughout the nation therealization mounted that the impact of thesuspected hijackers was permanent. “Thisfundamentally changes air travel in thisnation forever,” said Jack Evans, spokes-man for Alaska Airlines.

The order had the initial purpose ofclearing the skies so that federal officialscould determine whether hijackers—theapparent agents of the World Trade Cen-ter crashes and of a third jet that plowedinto the Pentagon in Washington—hadcommandeered any other flights. As itturned out, a fourth commercial jetcrashed in rural Pennsylvania.

By early afternoon, federal officials

identified and made contact with the 40 orso flights remaining aloft over the U.S.

Although the FAA had never before or-dered all flights grounded, it said that thisprocedure “certainly is a scenario” in itscrisis drills. As for how security would beheightened before its order was lifted, anFAA spokeswoman said, “We’re workingto determine security procedures thatwould be [put] in place before resumingflying,” she said.

Transportation Secretary Norman Min-eta warned air travelers to expect higherlevels of surveillance at the nation’s air-ports and train stations today, includingmore stringent searches and security offic-ers. Airport curbside luggage check-in willno longer be allowed.

About 35,000 flights a day take off andland at U.S. airports, a number that in-cludes domestic flights to and from foreigncountries and private planes. It doesn’t in-clude the many general aviation flights thatoperate by visual flight rules. As a result ofwhat the FAA calls the “ground stop,” anestimated 8,300 U.S. jets and commuterplanes are now parked at airports large andsmall in the U.S. and abroad.

In addition, Canada’s Transport Minis-try grounded all commercial air move-ments in that country, and many foreigncarriers diverted or canceled theirU.S.-bound flights. Israel closed its air-space to foreign carriers.

After the attacks, more than 120 flightswithin U.S. air space were diverted to air-

ports in Canada. Reports from Halifaxsaid that hotels and motels in and aroundthat city quickly filled to capacity, andmany stranded passengers were shuttledto gymnasiums and sports complexes inthe area for the night. Many other peoplerented vehicles and headed out of Halifaxin search of accommodations.

In many U.S. cities, stranded air travel-ers took to the roads, securing every vehi-cle available at rental-car agencies.Amtrak temporarily halted its passengerrail service. Marriott said its hotels in theNew York were sold out. But spokeswomanMari Snyder said five of the properties areopening up their public rooms for over-night accommodations.

In contrast to the usual grousing andtemper tantrums that accompany delayedand diverted flights, travelers displayednumbness and sorrow at the realizationthat their nation had undergone attack.

During the first moments of the shut-down, a tense atmosphere prevailed in theskies and traffic-control centers of theU.S. Uncertain which planes might be un-der the control of terrorists, military jetstook to the air to try to prevent any furthersuicide crashes, as officials suspect theWorld Trade Center and Pentagon disas-ters to have been.

A Thai Airways International flightbound for Los Angeles but rerouted to SanFrancisco was escorted by U.S. militaryfighter jets. In the hour before that, 15other flights from Asia, bound for Hous-

ton, Chicago and West Coast airports,were diverted to Honolulu. “We don’t wantaircraft flying over the U.S.,” said TrygMcCoy, San Francisco airport duty man-ager.

The three jets that crashed into theWorld Trade Center and Pentagon be-longed to UAL Corp.’s United Airlines andAMR Corp.’s American Airlines. The jetthat crashed in Pennsylvania was a Unitedplane. In total, just under 300 passengersand crew members are believed to havedied on the four planes.

For several hours, no carrier in thecountry was certain that all of its planeswere safe and under the control of its ownpilots. As the morning progressed, airlineafter airline issued statements, such as aNorthwest Airlines press release sayingthat “all domestic and international North-west Airlines flights have been accountedfor and are safe.”

News of the terrorist acts stunned trav-elers across the nation. Nelson and Marjo-rie Wentworth, of Kennebunk, Maine, hadjust landed in Detroit on their way with atour group to Asia when the pilot made anannouncement over the loudspeaker:“This is a bad day for America,” they re-called him saying. “The United States isunder terrorist attack.”

Atlanta’s Hartsfield International Air-port, one of the busiest in the world, wasringed by police vehicles. Thousands ofstranded passengers thronged the con-courses. Service to the airport by themetro Atlanta rail and bus system wasshut down as a precaution.

Virtually every car had been rented bymidday. Employees at Hertz, the onlyagency that still had some autos available,yelled out names of people with reserva-tions in the hopes they could give the carsto the dozens of people standing by. RobertJ. Lanier, an executive from Fort Lauder-dale, Fla., offered rides to south Florida inhis rented minivan. “I’ve got room foreight,” he said. Elizabeth Wojtusiak wasconsidering piling in with Mr. Lanier. “It’sa little unnerving to fly,” she said. “I’drather drive.”

The scene was much the same at otherairports. At Detroit’s Metro Airport, policecanine units were sweeping the terminals.Trash cans were being picked up and puton trucks as a security measure. Hun-dreds of people were standing around aNorthwest baggage claim area, passen-gers on flights that had been diverted toDetroit and flights that never left theground. When the flights arrived, luggagewas pulled off and piled on the tarmac.Airline workers with megaphones shoutedthe names of people to come and claimtheir luggage.

At Dallas/Fort Worth airport, homebase for American Airlines, officialsworked quickly to ground planes andcrank up security measures after thecrash. Officials reported that the numberof public-safety officers at the airport wasnearly doubled from the usual 60 to 65shortly after the crisis began, not includ-ing special security task forces called toduty, such as canine patrols.

Authorities shut down Los Angeles In-ternational Airport, evacuating all of theterminals and blocking entrance to the air-port. In the morning, the main AmericanAirlines terminal was empty and quiet,with ticket counters abandoned and moni-tors showing lines of canceled flights. Theairlines were directing relatives of possi-ble victims on the Los Angeles-boundflights to toll-free phone numbers that toldthem where to gather. The few familymembers who appeared at the airportwere ushered into a private area by police.

Officials at San Francisco InternationalAirport were still trying to evacuate air-port terminals at noon PDT.

In the international terminal, a youngFrench couple in their 20s was trying toreturn to Paris, haggling with Air Franceagent Oliver Bauer, who explained inFrench: “No flight arrives or departs untilthe U.S. government decides.” He handedthem a sheet of local hotels with phone num-bers.

In the domestic terminal, United Airlinespersonnel set up a holding room in a red-car-pet lounge for friends and relatives of Flight93—the flight bound for San Francisco thatcrashed near Pittsburgh. A man waited forthem there with a black jacket emblazonedATF chaplain in yellow letters.

By Scott ThurmStaff Reporter of The Wall Street Journal

When Robert Williamson heard of theapparent terrorist attacks, he feared fortwo friends in New York. The 38-year-oldaccount executive for a Norfolk, Va., news-paper tried three or four phone numbersfor each friend, but he heard only busysignals, recordings and dead air.

Then he tried e-mailing his friends, aswell as a wider circle of friends who mighthave heard from the two women. Within afew hours, both women e-mailed that theywere unharmed. “The sense of relief wasoverwhelming,” said Mr. Williamson, look-ing at pictures of the two women thatadorn his cubicle.

As Mr. Williamson and others learned,the Internet proved the most reliable way tocommunicate, as the phone system saggedfromsevered linesandanextraordinaryvol-ume of calls. Corporate executives usede-mail to find employees across town oracross thecountry. Outside the World TradeCenter, strangers whose cellphones didn’twork lent each other Blackberry pagers tosend messages to loved ones.

The Internet “turns out to be more reli-able than the phone system,” said CharlesKline, a Silicon Valley consultant. As agraduate student at the University of Cali-fornia, Los Angeles, in 1969, Mr. Klinehelped design the network that becamethe Internet and participated in some ofthe first transmissions.

The Internet’s resilience is a legacy ofdesign decisions Mr. Kline and his col-leagues made in the late 1960s, on whatwas then called Arpanet, after the DefenseDepartment’s Advanced Research ProjectAgency, which funded the effort to linkuniversities and think tanks.

To complete a phone call, a physicalcircuit, a series of copper wires, must beopened—and kept open—between the twophones. The Internet, by contrast, worksby breaking up e-mails, Web sites andother computer traffic into pieces calledpackets, which are sent out on the networkindependently. The packets can travel avariety of routes and then are reassem-bled at their destination. E-mails are par-ticularly resilient, because e-mail pro-grams repeatedly try to contact the desti-nation computer until they succeed, Mr.Kline said.

Packet-switching can make the Inter-net unreliable for phone calls, becausesounds have to arrive in a precise orderand without delay. But yesterday, the Inter-net was a “godsend” for Michelle Peluso,chief executive of online travel agencySite59 Inc., whose offices are about threeblocks from the World Trade Center.

Ms. Peluso was on her way out of herGreenwich Village apartment when sheheard about the attacks, so she retreated.She found one employee at work on a cell-phone and ordered the office evacuated,then she set out to contact her 65 employ-

ees via the Internet. Within 90 minutes,she had found all but two employeesthrough e-mail or instant-messaging pro-grams. With her cellphone useless and herordinary phone operating intermittently,Ms. Peluso also found employees travelingin Louisiana and Kentucky via the Web.

Internet operators said they saw asurge in traffic as computer users flockedto news sites for updates and turned toe-mail and instant-messaging services toreplace telephones. An AT&T Corp. spokes-woman said traffic on its Internet back-bone doubled. A Yahoo Inc. spokeswomanalso said use of its instant-messaging ser-vice surged.

Some news Web sites were almost im-possible to reach for several hours be-cause of heavy traffic, according to Key-note Systems, which monitors Web perfor-mance. Search engine Google at one pointdirected news seekers to get off the com-puter and turn on radio or television. Com-puter users who wanted to donate bloodfound the Red Cross site difficult to reach.But a Keynote spokeswoman said the com-pany didn’t see “any significant prob-lems” on the Internet backbone.

For just getting in touch, however, noth-ing could match the Internet for much ofthe day. Allan Hickok, an analyst withU.S. Bancorp Piper Jaffray in Minneapo-lis, spent much of the morning sendingtwo-word e-mails to friends and colleaguesin New York via his pager: “You ok?” Com-pared to the constant busy signals heheard on the phone, Mr. Hickok saide-mail was effective and his pager “phe-nomenally effective.”

Rusty Rueff, an executive at ElectronicArts Inc., Redwood City, Calif., was stuckin a United Airlines plane on the tarmac ofthe Indianapolis airport after his 8 a.m.flight bound for San Francisco from NewYork was diverted there. Cellphone servicewas spotty, but Mr. Rueff used his Black-berry to get in touch with his wife andcolleagues.

David Smith, chief executive of Media-smith Inc., a San Francisco online adver-tising agency, used instant messaging tofind the five employees of Mediasmith’smidtown New York office before they wereevacuated. “I feel better knowing whattheir situation is,” he said.

Michael Demetriou, a 26-year-old Chica-goan who recently relocated from Manhat-tan, found 25 friends in New York viae-mail and instant messaging. At onepoint, He had 14 simultaneous instant-mes-saging screens on his computer.

Mr. Demetriou was especially con-cerned about a friend who works acrossfrom the World Trade Center. Sending thatfriend an instant message, he was re-lieved to receive a message in return thatread, “I’m alive and OK.”—Mylene Mangalindan, Dennis Berman,

Shirley Leung, Deborah Solomon andKhanh Tran contributed to this article.

Net Proves More Reliable Than PhonesIn Effort to Contact Friends, Loved Ones

A DAY OF TERROR

By Yochi J. DreazenStaff Reporter of The Wall Street Journal

The terrorist attacks on New York andWashington strained the nation’s telecom-munications systems, knocking out tele-phone and wireless service across theNortheast for hours and making it almostimpossible for millions of Americans tocheck in with loved ones in the two cities.

As news stations went live with imagesof the catastrophic attacks, traffic on thenation’s telephone and wireless networksskyrocketed as anxious Americans beganplacing calls to friends and family mem-bers in New York and Washington. None ofthe networks broke under the strain, butthe resulting congestion made it nearly im-possible for many calls to go through.“There isn’t really a lot we can do,” saidVe-rizon Communications Inc. spokesmanEric Rabe. “We have just incredible vol-umes of traffic.”

AT&T Corp., for example, said its long-distance network carried an average offour million calls every five minutes afterthe attacks, double the normal call volume,with traffic heaviest in NewYork and Wash-ington, according to company spokesmanDave Johnson. “The system is just over-loaded,” he said.

The nation’s cellular networks were thehardest hit, with wireless users in cities

throughout the country reporting an inabil-ity to make or receive calls. In New York,survivors of the attack stood in long linesnear banks of pay phones across the city asthey tried to relay that they were safe.Jared Forman, a 26-year-old paralegal whowas standing in a line in Brooklyn, said hetried to call his mother from his cellphoneat least a dozen times, but gave up afterhearing only busy signals.

Because of widespread cellphone prob-lems and heavy volume, Verizon, NewYork, said it was making calls from its 4,000Manhattan payphones free for the dura-tion of the emergency. The company saidthe payphones would be able to receive in-coming calls indefinitely. Normally, Veri-zon payphones, like those of other majorcarriers, don’t accept such calls.

Aside from the unprecedented levels ofcongestion, the nation’s telecommunica-tions infrastructure was also battered bythe destruction of large amounts of tele-phone and wireless network equipment. InNew York, tens of thousands of businesscustomers of Verizon; Sprint Corp., Kan-sas City, Mo.; and AT&T, New York, lost lo-cal phone service because the attacks de-stroyed network switching equipment thecompanies maintained in the World TradeCenter.

Sprint, for example, said about 75,000

calls were blocked on its network within anhour after the initial explosion, while Veri-zon said equipment serving about 40,000lines was destroyed when the second build-ing collapsed. The attacks also destroyedseveral large cellular-phone towers on theroofs of the buildings, knocking out mobile-phone access throughout the city for muchof the day.

It is unclear how soon full service willbe restored, though all three companiessaid they were routing calls through othercities and locations. The companies alsosaid they hoped to replace the equipmentas soon as possible. AT&T, for instance,said that a fleet of specially equipped18-wheel trucks that it typically sends tothe sites of natural disasters was en routeto New York yesterday. The trucks cantemporarily replace nearly any piece oftelecommunications equipment and han-dle both voice and data traffic.

Dale Hatfield, former chief engineer forthe Federal Communications Commission,said the difficulties callers across the coun-try encountered was the inevitable resultof a sudden spike in usage.

“It’s statistically impossible to provideenough lines to connect everyone, so thenetworks are built around the fact that thewhole country doesn’t simultaneously callWashington or New York,” he said.

Mr. Hatfield said advanced routing andswitching equipment had prevented amuch greater telecommunications break-down. The equipment allowed phone com-panies to preserve capacity for emergencycommunication by blocking inbound callsto New York and Washingtonand giving pri-ority to outbound calls by medical, govern-mental and security personnel in the twocities. He said the equipment also allowedthe companies to route traffic through in-tact networks and equipment in other ar-eas.

Telecommunications difficulties alsospread overseas. Callers throughout Eu-rope reported difficulty reaching numbersin the U.S. following the incidents, as Euro-pean domestic networks and possibly alsotrans-Atlantic lines buckled under thestrain. A spokesman for British Telecom-munications PLC said its customers wereattempting to make 10 times as many callsas usual, or about 250,000 every 15 minutes.A France Telecom spokesman, meanwhile,said French customers had attempted toplace 500,000 calls to the U.S. in a singlehour yesterday, compared with 20,000 onan average Tuesday. “You multiply thatnumber by the number of countries in Eu-rope and you see what happens,” he said.

—Elliot Spagat, Kevin Delaney,Ann Davis and Rebecca Blumenstein

contributed to this article.

Panicked Phone Traffic Jams Lines in Northeast

By Rick BrooksStaff Reporter of The Wall Street Journal

The shutdown of the U.S. air-traffic sys-tem paralyzed millions of packages, high-priority mail and other cargo movingthrough U.S. skies. Even if the shutdownends quickly, it could take days to clear thelogjam in the nation’s high-speed freightnetwork.

FedEx Corp., United Parcel ServiceInc. and other air-freight carriers wereforced to idle planes after the attacks oc-curred, stranding enormous loads ofcargo. FedEx, Memphis, Tenn., transportsabout 3.2 million units of its daily volumeof 4.7 million packages by air. It also trans-ports roughly three million pieces of Prior-ity Mail and Express Mail a day for theU.S. Postal Service. Atlanta-based UPSflies about two million of its average dailyload of 13.2 million parcels.

Yesterday’s attacks threw deliveriesacross the country into disarray, with Fe-dEx, UPS and Airborne Inc., Seattle, sus-pending their time-specific guarantees onshipments.

“We’re going to do our best,” a FedExspokesman said, adding that delivery ofmost air shipments will be delayed by 24 to48 hours. UPS, which stopped making de-liveries in New York City and parts ofWashington, D.C., shortly after the at-tacks, said it “cannot assure scheduled de-livery times … until further notice.”

The shutdown could wrench the supplychains of many U.S. companies. Parcelcarriers carry about 10% of the nation’seconomic output at any given time, andcompanies rely heavily on them, particu-

larly for the most advanced just-in-timemanufacturing systems. “The effect couldripple for weeks,” said Edward Morlok, atransportation and systems-engineeringprofessor at the University of Pennsylva-nia in Philadelphia.

The grounding of all air traffic sent theair-cargo companies, which fly most goodsin the middle of the night, scrambling toshift shipments onto slower-moving trucksbefore nightfall.

Trucking company M.S. Carriers Inc.said it agreed to haul some shipments forair-freight companies. Mike Starnes, chiefexecutive of M.S. Carriers, a subsidiary ofSwift Transportation Co., Phoenix, saidthe company is maintaining normal opera-tions in most of the country but that anyshipments in the New York area are beingheld in various locations away from thecity. Some of the company’s drivers weretemporarily stranded in the New Yorkarea, but none were in Manhattan at thetime of the blasts, he said.

FedEx planes flying yesterday morningwere carrying overnight and second-dayfreight, a spokesman said, and many re-turned to the company’s primary hub inMemphis. The two dozen UPS planes inthe air when the attacks occurred landed“at the nearest airport,” a companyspokesman said.

It could be a struggle to return package-delivery operations to normal even if theshutdown ends quickly. UPS suffered formonths following a15-daynationwideTeam-sters strike in 1997, and thewidespreadclos-ings of businesses across the country couldresult in a flood of shipments as those com-panies return to work.

Air-Cargo Systems Face LogjamFollowing Halt of Airline Traffic

Thousands Stranded as FAAGrounds Flights

By Jonathan EigStaff Reporter of The Wall Street Journal

Their Internet sites swamped by traf-fic, many American newspapers turnedto an old-fashioned device—the specialedition—to disseminate news quickly onthe terrorist attacks.

The New York Post was one of thefirst major newspapers to hit thestreets yesterday afternoon, printing75,000 copies and selling them through-out the five boroughs of New York. Thepaper carried a large photo of the sec-ond plane striking the World Trade Cen-ter and a single-word headline: “Ter-ror.”

“This is a terrible, terrible day,”said Ken Chandler, the Post’s publisher.But, he added, “People are going to behungry for information.” He estimatedthat the Post, which has a daily circula-tion of 500,000, might sell twice thatnumber of papers today.

The New York Daily News, mean-while, was unable to circulate its regu-lar afternoon edition, known as the Ex-press. With all roads in and out of Man-hattan closed yesterday, the newspaperhad no way to deliver its product fromits printing presses in New Jersey.

The Washington Post printed a spe-cial edition yesterday afternoon, butthe New York Times and USA Today didnot.

The Chicago Tribune actuallyprinted two special editions, one earlyin the afternoon and another in theevening. The newspaper printed about

600,000 copies of the late edition andtook the extraordinary step of deliver-ing it to the homes of most of its sub-scribers. Most of the papers were ex-pected to reach subscribers beforedark.

“I’ve been here 18 years and we’venever done anything like this in thattime,” said Jeff Beirig, media relationsmanager for the newspaper, which isowned by Tribune Co.

The Los Angeles Times, also ownedby Tribune Co., printed 25,000 copies ofa special edition, under a headline read-ing “Terrorism Hits the U.S.” And inLong Island, N.Y, Newsday, another Tri-bune paper, printed about 30,000 copiesfor sale yesterday afternoon. AnthonyMarro, the paper’s editor, said the Inter-net wasn’t enough. “We’ve had realproblems there,” he said. “Everythingwas crashing.”

Both the San Francisco Chronicleand the San Jose Mercury Newsplanned to put out extra afternoon edi-tions covering the attacks. A Chroniclespokesman said its extra edition, head-lined “U.S. Under Attack,” hit news-stands around 1 p.m. PST; since manyworkers elected to stay at home, thepaper planned to make greater effortsto reach the San Francisco suburbs aswell. The San Jose Mercury News soldits eight-page special edition in down-town San Jose and San Francisco. Thelast time the Chronicle published an ex-tra afternoon edition was after the 1989earthquake.

U.S. Newspapers Resort to Special EditionsAs Traffic Overwhelms Their Web Sites

This announcement appears as a matter of record only.

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* * * * THE WALL STREET JOURNAL WEDNESDAY, SEPTEMBER 12, 2001 A3

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Attack Brings Closings Across the Nation and OverseasA Wall Street Journal News Roundup

U.S. reaction to the mass terrorist at-tacks went far beyond the target loca-tions. Across the nation, companies shutoffices, stores and factories, sent workershome and tightened security. Local offi-cials in major cities put police on alert, asfederal and state government officesclosed. Schools in some cities closed, andmajor- league baseball canceled allgames for the first time since the 1945death of President Franklin D. Roosevelt.Walt Disney Co. closed its theme parks inOrlando, Fla., and Anaheim, Calif.

Even overseas, business in London’sfinancial district ground to a standstillyesterday afternoon, as traders and sales-men, stymied by clogged up telephonelines, resorted to watching stunning foot-age on television of the terrorist attacksand the damage they wreaked. Althoughmost European markets officially re-mained open, most found it difficult to domuch business. Several companies shutdown early, and staff at others wereglued to television screens for news up-dates. One German fund managershrugged off calls, saying it was “wrongto be talking about stocks when thou-sands of Americans are dying.”

In Japan, where the economy is al-ready stumbling, financial markets andbusiness leaders worried about the falloutfrom the attacks.

In New York, companies with officesin the World Trade Center towers scram-bled to account for employees amid thedevastation. Because of the centrality ofthe city— and the now-destroyed WorldTrade Center itself—to the global finan-cial industry, the attacks will have broadimpact on banks, brokerage firms andother businesses around the world. Japa-nese banks have extended billions of dol-lars in loans to U.S. borrowers; U.S. inves-

tors have emerged as the dominant buy-ers of Japanese stocks at a time whenJapan’s stock market is at 17-year lowsand Japanese corporations and bankshave been selling huge amounts of sharesto book profits and shore up their bottomlines.

Akamai Technologies Inc., Cam-bridge, Mass., confirmed that Daniel C.Lewin, 31, co-founder and chief technol-ogy officer, was on board one of theplanes that crashed in New York. OracleCorp. said it had one employee on one ofthe hijacked planes and at least six otheremployees who were believed to be at theWorld Trade Center were still unac-counted for. Chairman Larry Ellison saidhe was spending the day talking with em-ployees and families of those employees.The company also will go ahead with itsplanned release of financial results tomor-row, Mr. Ellison said.

“We cannot let terrorists close downthe U.S.; we cannot shut down,” said Mr.Ellison, who saw the first news while hewas online early this morning. He said allOracle offices will remain open, thoughhe has told employees they may go homeif they need to. “We will do everything wecan to keep going.”

In the U.S., the sudden shattering ofthe country’s usual sense of securitybrought much normal commerce to ahalt, from coffee shops to the head officesof global titans.

“We don’t fully know yet what we’redealing with. For everyone, this is a trau-matic experience. This is the first time ina long time anything as devastating asthis has occurred on American soil, espe-cially aimed at civilians,” said OrinSmith, chief executive officer of Star-bucks Corp., Seattle. Starbucks closed allof its stores across the country early yes-terday afternoon, Mr. Smith said. Earlier

in the day, the company closed its fourstores near the World Trade Center follow-ing the crashes. None of its employeeswere hurt in the New York disaster.

Evacuations occurred all over the coun-try, even in areas far removed from Man-hattan.

Gillette Corp., citing “heightened con-cerns” among employees, used public-ad-dress systems to evacuate about 1,000 em-ployees at its two main Boston offices. Somany local businesses closed that theMassachussetts Turnpike, a major east-west artery, was “an absolute parkinglot” by noon, Gillette spokesman EricKraus said.

In Detroit, Ford Motor Co. and Daim-lerChrysler AG’s Chrysler group shutdown their head offices and canceled pro-duction yesterday afternoon at NorthAmerican plants. General Motors Corp.allowed employees at its imposing down-town Detroit tower complex go home, asDetroit police stepped up security. Manysenior auto-industry executives were outof the country at the time of the attacks,attending the Frankfurt Motor Show.

In Miami, government officials acti-vated the county’s emergency-operationscenter, and ordered most county build-ings, including the main courthouse andcounty hall, located downtown, to be evac-uated. Many other office workers down-

town, including those inside the Miamiskyline’s signature tower, the 47-storyBank of America building, were also senthome.

In Chicago, Sears, Roebuck & Co.asked employees yesterday not to travelanywhere on business for the next 24hours. Though the halted air traffic ru-ined most travel plans, the retailer said itwanted to make sure its staff stayed put.“This is like talking about a bad movie,”spokeswoman Jan Drummond said.

Retailer Gap Inc.—regarded aroundthe world as an American icon—closed all3,800 of its Gap, Banana Republic and OldNavy stores in the U.S. as a precaution, acompany spokeswoman said. They planto reopen the stores tomorrow. Gap, thenation’s top apparel retailer, also shut itsproduct-development offices in New Yorkand its San Francisco headquarters. Pro-fessional sports faced a significant secu-rity issue: whether to stage games in thecountry’s large stadiums. “At what pointdo you decide it’s safe to gather again?”said an executive with one pro league.Like other landmarks, Yankee Stadium inthe Bronx was evacuated yesterday. MajorLeague Baseball canceled its full scheduleof 15 games yesterday “in the interest ofsecurity and out of a sense of deep mourn-ing for the national tragedy that has oc-curred,” MLB Commissioner Bud Seligsaid in a statement. No decision was madeon when play would resume.

A DAY OF TERROR

sky, coughed from the building southward,landing blocks away.

By the time I’d gotten to the ninth floorof the Journal’s building and taken a posi-tion at a window in the northeast corner,diagonally across an intersection from theWorld Trade Center, the conflagration waswell underway. Great clouds of smokepushed skyward. Intense flames were con-suming higher floors above the crash site.Debris was falling onto the streets—hugechunks of metal clanged as they hit theearth. Office papers littered the ground.Cars in a nearby parking lot—a full twocity blocks from the explosion—wereaflame.

I called our partner, CNBC, the businessnews television service, and began report-ing the scene from inside our offices, be-neath the burning structure. Then sud-denly—as suddenly as the first explosion—Isaw the second tower erupt in flame, send-ing more debris crashing southward. Thistime, the televisioncameras, located inmid-town Manhattan and pointed south, caughtthe image of a commercial jet veering intothe second tower.

Evacuations were emptying buildingson both sides of the street, and fire trucks,

Emergency Medical Services vehiclesand police cars were crowding the area infront of the World Trade Center. Traffic washalted many blocks north and south.

Then, as the fires worsened, and thesmoke got blacker and thicker, the first ofthe office workers began to jump. One at atime, a few seconds apart.

Unknown to the dozens of firefighterson the street, and those of us still in officesin the neighborhood, the South Tower wasweakening structurally. Off the phone,and collecting my thoughts for the nextreport, I heard metalic crashes and lookedup out of the office window to see whatseemed like perfectly synchronized explo-sions coming from each floor, spewingglass and metal outward. One after theother, from top to bottom, with a fractionof a second between, the floors blew topieces. It was the building apparently col-lapsing in on itself, pancaking to theearth.

This was too close. Uncertain whetherthe building would now fall on ours, I doveunder a desk. The windows were pelted bydebris, apparently breaking—I’d neverknow for sure. The room filled with ash,concrete dust, smoke, the detritus of SouthTower. It was choking, and as more debrisrained down onto and into the building,the light of the day disappeared. I crawledon the floor and braced myself under adesk deeper in the office. But the air wasas bad.

With my shirt now over my mouth inthe blackout of the smoke, unable to domore than squint because of the stingingash, and thinking that this is what it must

be like on the upper floors of the Towers, Irealized I had to move. I stood up fromunder the desk and began feeling the walland desks, trying to orient myself in thenow pitch-black cubicled world of our mod-ern office. Disoriented, I twice passed bythe entryway to this particular corner ofthe ninth floor. And then I was through, byaccident, into a larger space with moreair.

The smoke had spread over the entirefloor, which had been evacuated minutesbefore. In the emergency stairwell, stillthinking that it was a matter of time be-fore our building was crushed, I breathedin my first clear air. At ground level,though, it was a different story.

Outside on the sidewalk, the scenelooked like Pompeii after the eruption ofMount Vesuvius. Inches of ash on theground. Smoke and dust clouding the air.My throat stung as I worked my way pastambulances and EMS workers who hadbeen outside when the tower collapsed.

The emergency workers were trying tofind colleagues. In the silence, as the ashfell like snow, radios crackled: “Steve,Steve, where are you?”

One fireman bashed through a door ofa nearby diner, and a handful of us tookrefuge from the outside air. We opened therestaurant’s cooler, distributed water bot-tles, and took some outside to give to theambulances. I asked what had happenedto the people evacuated from the Journal’sbuilding, my colleagues. Did they getaway? No one knew.

I stepped into one ambulance with wa-ter and asked for a surgical face mask. Iwas handed several, and later passed

them to coughing, spitting emergencyworkers in the street. The mask would bemy life saver.

Because as I walked down the street,getting my bearings, and moving closerto Liberty Street, which opened out ontothe Trade Center compound, the secondtower was weakening. I heard a pressingmetallic roar, like the Chicago El rum-bling overhead. And then the firemannext to me shouted: “It’s coming down!Run!”

Run where? I had no idea, so I did thebest thing at the moment: I ran after thefireman.

Four of his colleagues joined us, plus an-other civilian or two on the street. Wesprinted behind the wall of a nearby apart-ment building as the North Tower collapsedtwoblocksaway. “Stayaway fromglasswin-dows” he shouted as we ran, but what hesaid next was drowned out by the roar pass-ing right through us. We flattened ourselvesagainst a metal doorway, this small group,trying tobe one with thebuilding, as chunks

of concrete and metal fell from the sky be-hind us and roared up the street and into thebuilding’s courtyard all around us. Debrisfell against the shirt on my left shoulder—Icouldn’t push it any harder against thebuilding.

After two minutes, we all went down,in a collective crouch, and tried to breath.The building had stopped falling. The roarhad subsided. But the smoke and ashseemed as dense as tar, far worse than inthe building when the first tower fell. Weall were wearing the tight-fitting surgicalmasks which, with shirts pulled up overour faces, made the difference.

Hyperventilating from the sprint andthe fear, the group concentrated on notpanicking. Our leader, the fireman whowarned of the glass, yelled out in the dark:“Is anybody hurt? Try to breath throughyour nose!”

In the blackness, he tried his radio:“Mike! Mike! Where are you?” No answer.Again, and no answer. My hand was on histrembling back, the better to brace my-self, and I thought about asking him howlong these blackouts and ash clouds couldlast. Then I realized the full ridiculous-ness of the question. How would he know?How often does a 110-story building col-lapse to the ground. I honestly wonderedwhether I’d survive long enough for the airto clear.

Mike finally answered the radio andwas wearing a respirator. He also had aflashlight. And so eventually he found us.Blinded by the ash in our eyes, we stoodup as a line, each put a hand on the shoul-der of the guy in front, and let Mike leadus out of the darkness into the lobby of abuilding 20 steps away.

We poured water into our eyes, andshook ash from our clothing and hair. Ilooked for Mike to thank him, but he hadalready left to help an injured EMS workeron the street.

A young man in the lobby, apparentlymissed in the evacuation, held his daugh-ter, a little blond-haired girl perhaps twoyears old. She was crying.

An older man who had also sought shel-ter was raving uncontrollably nearby. Wecalmed the older man, and the girlstopped crying.

Continued From Page A1

O’Neill Praises Financial Systems’ Resilience

The Eye of the Storm: an Account of Utter Destruction

Dow Jones Newswires

WASHINGTON—U.S. Treasury Secre-tary Paul O’Neill said U.S. financial sys-tems reacted “extraordinarily well” afterterrorists attacked the U.S.

“Our nation’s financial markets arestrong and resilient. In the face of today’stragedy, the financial systemfunctionedex-traordinarily well, and I have every confi-dence that it will continue to do so in thedays ahead,” Mr. O’Neill said from Japan,wherehe had been participating in bilateralmeetings with the Japanese government.The Treasury said he will remain there un-til further notice. U.S. financial markets in-cluding the New York Stock Exchange shutdown and will stay closed today.

U.S. financial regulators issued a rarejoint statement to address the day’s events,as they did during the 1987 stock-marketcrash and most recently when hedge fundLong-Term Capital Management precipi-tated a global financial crisis.

“The United States Treasury, the Fed-eral Reserve Board, the Securities and Ex-

changeCommissionand the CommodityFu-turesTrading Commissionsupport thedeci-sions of the nation’s futures and securitiesmarkets to remain closed [on Wednesday]in light of today’s tragic and extraordinaryevents. We have every confidence that trad-ingwill resumeassoon as it is bothappropri-ate and practical,” said the four groups,which make up the President’s WorkingGroup on Financial Markets. The New YorkStock Exchange, the Nasdaq Stock Marketand the American Stock Exchange all willbe closed today in the wake of the disaster.

In a statement, the Fed announced:“The Federal Reserve System is open andoperating. The discount window is avail-able to meet liquidity needs.”

The mutual-fund industry’s trade group,the Investment Company Institute, put outa statement mourning the loss of life, andadded: “Mutual funds will be ready to re-sume business as soon as the U.S. financialmarkets reopen. … Investor transactionswill be handled in an orderly fashion andcomputedatthenextavailablemarketprice.”

On the sidewalk, inches of ash layered on the ground. Smoke and

dust clouded the air. My throat stung as I worked my way past ambu-

lances and EMS workers who had been caught outside when the tower

collapsed. Emergency workers tried to find colleagues. In the silence, as

the ash fell like snow, radios crackled: “Steve, Steve, where are you?”

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John D. Rockefeller, Sr.

HE WOULD HAVEUSED BOTH.

IN THE HIGH COURT OF THE REPUBLIC OF SINGAPORE

Originating Summons )

Number 601322 of 2001 )

IN THE MATTER OF SECTION 210 OF THE

COMPANIES ACT (CAP. 50) OF SINGAPORE

And

IN THE MATTER OF OMNI INDUSTRIES LIMITED

(RC NO. 199504780K)

......... Applicant

NOTICE IS HEREBY GIVEN that an application by Originating Summons has

been made by the Applicant to the High Court of the Republic of Singapore

on 11th September, 2001 for approval under Section 210 of the Companies

Act, Chapter 50 of the Scheme of Arrangement dated 17th August, 2001 (the

“Scheme”) between (i) the Applicant, (ii) the holders (the “Shareholders”) of its

ordinary shares of S$0.10 each and (iii) Celestica Inc.

NOTICE IS FURTHER GIVEN that the said application is directed to be heard

before the High Court, located at St. Andrew’s Road, Singapore 178957, on

19th September, 2001 at 10.00 a.m.

Any creditor of the Applicant or Shareholder desiring to oppose the making of

an Order for the approval of the Scheme should appear at the time of the

hearing in person or by counsel for that purpose and a copy of the Originating

Summons and the Scheme will be furnished to any such person requiring the

same by the undermentioned solicitors on payment of the regulated charge

for the same.

Dated this 11th September, 2001.

ALLEN & GLEDHILL

36, Robinson Road, #18-01,

City House, Singapore 068877.

Solicitors for Omni Industries Limited

PARDON US

WHILE WE TAKE A BOW.

©2001 Dow Jones & Company,Inc.All rights reserved. 2VT003C

Thanks to Yahoo! Internet Life for naming usBest Executive Career Site on the Internet.

A4 THE WALL STREET JOURNAL WEDNESDAY, SEPTEMBER 12, 2001 * * * *

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THE WALL STREET JOURNAL WEDNESDAY, SEPTEMBER 12, 2001 A5


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STONEY CREEK TOWNSHIP, Pa .—The Federal Aviation Administrationwouldn’t say late yesterday whether theUnited Airlines Boeing 757 that crashed herewas part of the same suspected terrorist plotthat flew two commercial jets into the WorldTrade Center and another into the Pentagon.

But the Federal Bureau of Investigation,with 20 agents at the site, said that it wastreating the crash as a crime scene. The

crash killed all 45 people on board. Earlyreports indicate that there were no groundfatalities.

United Flight 93, scheduled to fly fromNewark, N.J., to San Francisco, crashed in aremote strip-mine field about 80 miles south-east of Pittsburgh. Rep. James Moran (D.,Va.) speculated that the jet was under thecontrol of hijackers, and that an intendedtarget could have been Camp David, the presi-dential retreat in the mountains of southernMaryland.

The 757 was spotted around 10 a.m. flyingoff course above the John Murtha Johnstown-Cambria County airport, about 20 miles southof the crash site.

“He was at 6,000 feet descending toward

our airport,” said Joe McKelvey, the airportdirector. “We didn’t hear anything at all. Wejust got a call from the Cleveland air-trafficcontrol center above our air space saying itwas just north of us and heading our way. Wewere very concerned at the time.”

Mr. McKelvey said that the Cleveland airtraffic control center had said that it had lostradio contact with the 757 but was still track-ing the plane. As a precaution, the air trafficcontrol tower in nearby Pittsburgh, a majorhub for commercial airlines, was evacuated.

The 757 apparently didn’t attempt to com-municate with the Johnstown airport offi-cials. The plane passed over the airport, con-tinued to descend and then clipped a clump oftrees, crossed a road and finally broke up onthe strip-mine field, owned by PBS Coal.There was only one small shed-sized buildingnear the crash site and that was unoccupied.Observers said that the crash sounded likedynamite exploding, and the site was thenengulfed in a fireball.

Mark Stahl, a photographer for Stahl OilCo., was one of the first to arrive on the sceneand snapped pictures of the downed plane.He showed color photos of wreckage sur-rounded by a crater and flames. The FBIseized a 911 tape from an apparent call aboutthe crash, said FBI agent-in-charge Well Mor-rison. About 100 Pennsylvania State trooperssecured the crash site.

Attacks Raise Fears of a Recession

lot of other countries have gonethrough: to manage fear at a culturaland national level,” said Charles Figley,a professor of trauma psychology at Flor-ida State University. “We’re getting alesson in the way fear works.”

In a country long proud and evenboastful of its openness—a countrywhere an ordinary citizen can strollthrough the U.S. Capitolunescorted—the terrorist attacks arelikely to force Americans to watch theirsteps and look over their shoulders. Wealready do a lot of that. Metal detectorsnow mark the front door of many govern-ment buildings, and security guards area fixture in the lobby of most large officebuildings.

‘It’s a Test of Us’But tightening still further carries its

own danger of allowing terrorists tochange a fundamental of American life.“It’s a test of us,” said Fred Dutton, aformer aide to John and Robert Kennedywho now represents the government ofSaudi Arabia in Washington. “Are wegoing to become insecure, and feel theneed to have a less open, government-controlled society?”

“The worst thing we could do is say,‘This is the way things are going to befrom now on,’ ’’ said Robert Butter-worth, a Los Angeles psychologist whoheads a disaster response network.Avoiding crowds, popular events andhigh profile venues like Disneyland orSea World—which also closed yester-day—is a logical response, but we also“have to figure out constructive thingsto do,” he insists.

Retaliation is another logical re-sponse. Indeed, President Bush prom-ised as much. In an example of the coun-try’s mood, a scrawled sign outside ablood bank in New York ordered, “Mr.Bush, Bomb the bastards now.”

But retaliation carries the risk of set-ting off a tightening spiral of violenceand counterviolence not unlike the Mid-dle East or Northern Ireland. Unlikecountries that have had to learn to livewith violence, “We are new at this,” saidFlorida’s Dr. Figley, who heads a projectthat has trained trauma teams in Yugo-slavia. “My fear is we will overreachand make things worse rather than bet-ter by retribution, revenge, racism andmarginalizing ethnic groups.”

Double Security at ServicesThat fear is especially true for Jews

and Arabs. In Brookline, Mass., Congre-gation Kehillath Israel, like many otherJewish congregations, plans to doublethe security detail at next week’s ser-vices for Rosh Hashanah, the JewishNew Year, and the Yom Kippur holy day10 days later. Police cars will be sta-tioned outside, and uniformed and plain-clothes police inside.

“I think I now understand what it islike to live in Jerusalem,” said the con-gregation’s rabbi, William Hamilton.

Meanwhile, the city of Dearborn,Mich., moved to ensure there isn’t abacklash against the city’s large Arab-American population by setting up anemergency operations center and put-ting 22 extra police officers on patrol.

Fear of terrorism is likely to leadAmericans to tolerate more governmentsurveillance — such as overhead videocameras at sporting events —than theyhave to date. “It’s very likely in thewake of today’s events that we’re goingto see a greater acceptance on the pub-lic’s part — and on the court’s part — toapprove certain kinds of police tactics,”said William Stuntz, a Harvard LawSchool professor.

“Today represents a real change inthe world,” he added. “It’s not possibleever to think of these issues the sameway.”

In Redding, Calif., the chief of police,Robert P. Blankenship, agreed. “We’renot going to be as comfortable and assecure as we once were. Looking at theTV, it’s obvious now that we’re vulnera-ble,” he said.

Stepping up security isn’t always pos-sible, though. Fairfax, Va., alreadyposts police officers in its secondaryschools; unarmed security officers pa-trol the district; school doors are locked,teachers and staff wear identity badges.The effectiveness of metal detectors andsurveillance cameras isn’t proved, andanyway, they “create in kids the sense ofa jail,” said Daniel Domenech, the super-intendent.

Violence From the OutsideInner-city schools have spent heavily

on security technology in the past de-cade; the Houston school district evenhas its own SWAT squad. School securityhas long looked inward for a threat—tostudents carrying weapons or pickingfights. But rising violence from the out-side—from disgruntled parents orformer employees—is drawing in-creased attention.

In the wake of the events yesterday,much of the U.S. was closed down—thefederal government, schools, airports,the Hoover Dam near Las Vegas and the47-story Bank of America building indowntown Miami. Also shuttered werethe International Monetary Fund andthe World Bank; their fall meetings,scheduled for later this month and aplanned target of antiglobalization pro-tests, may be canceled, a bank officialsaid. Other institutions and facilitiesalso will reopen amid greater security,resulting in increased frustration and de-lays.

How to explain the day’s inexplicableevents to their children will be a hugedilemma for parents. “You’re not goingto be able to keep this one under wraps,”said Dr. Butterworth, the trauma psy-

chologist. But he warned against usingthe tragedy as a teachable moment—acommon response in the schools to hugenational developments—and overwhelm-ing children.

A further fear is the possibility ofcopycat incidents that often follow actsof highly publicized violence. Some peo-ple “deal with their fears by makingother people afraid,” said University of

Virginia’s Dr. Cornell. Indeed, a NewYork school was evacuated shortly afterthe planes hit the World Trade Centertower because of a bomb threat. And inLas Vegas, 30,000 people at the Interna-tional Banking Expo were turned awayfrom the city’s convention center after abomb threat called in from a pay phoneon the center’s premises.

Maxine Boarts, 71, a real-estateagent from Pittsburgh on a weeklongvacation in Las Vegas wasn’t planningto leave until Friday, but is worriedabout getting a flight home—“if we’renot afraid to” get on a plane then. Watch-ing TV from a bar on Bally’s casinofloor, she said she and five companionsconsidered renting a car to drive homeshould they need to, but couldn’t find acar to rent. It would be a multiday cartrip, “but we’d be alive when we getthere.”

Ms. Boarts wondered if the eventswill disrupt her grandson’s weddingplans next June, but is more concernedabout the effect this will have on thenation’s psychology. “We’ll look at peo-ple so differently now,” she said. “We’rean open people. We’re the kind thatwould talk to anyone. Now, it’ll take asecond thought.”

A few things didn’t change yesterday.Gambling at nearly all Las Vegas casi-nos continued at near normal volumes,although many gamblers watched CNNas closely as their cards. Merrill Lynch& Co. pressed ahead with a media andentertainment conference for about 500investors at the Ritz-Carlton Hotel inPasadena, Calif., after heated argumentin the lobby between those Merrill offi-cials who wanted to cancel it and JessicaReif Cohen, a Merrill first vice presi-dent, who didn’t.

And Americans, as they have in pastmoments of shared national tragedy,rolled up their collective sleeves. Somany volunteers showed up at a Rock-ville Centre, N.Y., blood bank that over-whelmed staffers began handing outnumbers, then turning away donors withanything but O-negative blood, which isaccepted by any recipient. Nonetheless,dozens of would-be donors sat in a line offolding chairs that snaked around thebuilding, waiting their turn.


A DAY OF TERROR

By Jeanne CummingsAnd Jim VandeHei


WASHINGTON—President Bush ex-pressed the nation’s horror at the wave ofterrorists attacks in New York and Wash-ington, but said those who committed theattacks did not “frighten our nation intochaos and retreat.”

“Today our nation saw evil. The veryworst of human nature,” Mr. Bush said.And, when assessing blame for the acts,“we will make no distinction between theterrorists who committed these acts andthose who harbor them.”

The president’s comments came at theend of an exhausting and frightening dayfor his administration and the nation. Af-ter the wave of morning attacks, Mr. Bushactivated an emergency response planthat relocated most government leadersinto “secure” locations and sent the presi-dent on an unusual airplane ride acrossthe country as he returned from a trip toFlorida to promote his education program.

“Today, our fellow citizens, our way oflife, our very freedom, came under attackin a series of deliberate and deadly terror-ist acts,” the president said in a televisedaddress from the White House. The vic-tims were “moms and dads, friends andneighbors, thousands of lives were sud-denly ended by evil, despicable acts ofterror.”

The horrific attacks, he said, “canshake the foundations of our biggest build-

ings, but they cannot touch the foundationof America.”

While Vice President Dick Cheney re-mained at the White House overseeingmanagement of the crisis, Mr. Bush hadspent much of the day on Air Force One,with an open line to Mr. Cheney and aheavy military escort on his wing. Helanded twice, in Louisiana and Nebraska,at secure military bases so he could con-duct private sessions with his national se-curity team and issue a few words of reas-surance to the American public.

Mr. Bush was kept outside of Washing-ton to ensure his safety. But it was clearthe image of an absent president botheredhim. “He understands that at a time likethis, caution must be taken,” White Housespokesman Ari Fleischer said.

During his final flight returning to theWhite House, President Bush dictated toCommunications Director Karen Hughesan outline for the speech. One of his topobjectives was to demonstrate that his ad-ministration isn’t paralyzed by the attacksthat destroyed the World Trade Center,damaged the Pentagon and crashed an air-liner in western Pennsylvania. The federalgovernment “will be open for business to-morrow,” Mr. Bush said, seeking to bringsome measure of reassurance to citizenswhose sense of security was shattered.

“America has stood down enemies be-fore, and we will do so this time,” he said.“None of us will ever forget this day, yetwe go forward to defend freedom and allthat is good and just in our world.”

said Edward Leamer, a professor of eco-nomics and statistics at University of Cali-fornia at Los Angeles and director of theUCLA Anderson Business Forecast. Disas-ters such as the Northridge, Calif., earth-quake in 1994 “hardly show up in the eco-nomic data. I would expect this to be oneof those events.”

Oil Prices Could ReboundAnother negative could be a rebound in

oil prices as political tensions rise again inthe Mideast. Brent crude-oil futuressurged $3.60 to $31.05 a barrel after theattacks, before closing at $29 a barrel inEurope. But the secretary-general of theOrganization of Petroleum Exporting Coun-tries said the group is prepared to takenecessary measures to stop world oilprices from spiking.

Business investment, already contract-ing, could get hurt further. “With these fourhijackings of commercial East-to-WestCoast flights, how can anyone get on a planeto conduct and close business?” said DavidReaderman, an analyst at investment bankThomas Weisel Partners in San Francisco.“A lot of phone and video-conferencing withclients. Increase spending on security of allkinds: hardware, software, etc. [It’s] trulystunning—we’ve all flown on these flights,been in the World Trade Center with clients.[It’s] difficult to comprehend the scale andscope of loss of life.”

The initial impact on the economy maybe more akin to a hurricane or earth-quake: Economic activity in affected sec-tors and regions will slow sharply, butthere might be some offsetting increasesin spending to repair the damage.

Carolyn Gorman, vice president inWashington for the Insurance InformationInstitute, a trade group, said the attacksamount to the most-costly man-made ca-tastrophe ever in the U.S. The other majorones have been the Los Angeles riots, $775million in insured loss; the 1993 WorldTrade Center bombing, $510 million; andthe Oklahoma City bombing, $125 million.

The longer-term impact will dependpartly on how economic policy makers re-spond. The blow almost certainly guaran-tees that the Fed—and central banksaround the world—will cut interest rateseven more than had been expected in or-der to maintain the smooth working of theworld financial system.

Recession, or WarThe tragedy will also lead to more fiscal-

policy support for the economy, ending thebitter partisan bickering that was steeringpoliticians toward embracinggrowth-damp-ing budget surpluses. President Bush hasargued for easing tight fiscal limits in thecase of recession or war. The first was al-ready perilously close before yesterday’sevents. The second, in some form, is here.Defense spending in particular—which hadbeen considered a likely victim of the obses-sion with fiscal austerity—will likely getbroad, bipartisan support.

“This is when we need leadership,”said Mr. Sohn of Wells Fargo. “How wellthe White House, Congress and the Fed-eral Reserve manage this crisis will deter-mine how short or long the damage isgoing to be.”

—Rebecca Buckman and Sheila Mutocontributed to this article.


Broadcast, Cable Networks Call a Truce,Agreeing to Cooperate to Get Story Out

Bush Says ‘Our Nation Saw Evil’But Isn’t Frightened Into Chaos

By Sarah LueckStaff Reporter of The Wall Street Journal

WASHINGTON—Health workers mobi-lized an unprecedented nationwide effortto treat the thousands of injured taken tohospitals, identify the dead and supplytens of thousands of units of blood in thewake of the terrorist attacks.

More than 2,000 people were reportedinjured in New York City, and hospitalsexpected to see more. Blood center offi-cials said immediate needs would be metby available supplies, but they worriedthat they would run short in the comingdays as they face the need to replenishsupplies.

Health and Human Services SecretaryTommy Thompson activated all of the na-tion’s 80 special disaster teams. It was thefirst-ever general mobilization of theteams, which are set up to help duringnatural disasters, plane crashes and bomb-ings. The teams, made up of 7,000 private-sector medical personnel, were preparingfor deployment to New York and Washing-ton as needed. Other teams, includingburn and surgery units, as well as forensicdoctors and dentists charged with findingand identifying the dead, were told to beready.

Mortuary Teams SentBy late afternoon, 300 medical and mor-

tuary personnel were sent to the New Yorkand Washington areas from locations suchas Atlanta, Lyons, N.J., and Worcester,Mass. Four teams of doctors and paramed-ics were sent to the Stewart NationalGuard Base in Newburgh, N.Y., and threewent to the Anacostia Receiving Center inWashington. Seven mortuary teams werealso sent—four to New York and three toWashington—to identify victims and pre-pare them for burial.

“Today’s extraordinary emergenciescall for extraordinary response,” Mr.Thompson said.

“A single area can’t handle a disasterof this magnitude—nobody can,” said Will-iam Cordell, an emergency-room physi-cian from Methodist Hospital in Indianapo-lis. Two doctors and four paramedics fromhis hospital were among those pulled offduty to go to the East Coast. “Everyone isjust going into disaster mode,” he said.“We’ve been aware of this possibility, andplans have been made.”

HHS was working with hospitals in theNew York and Washington areas to tracktheir capacity and provide more beds ifnecessary. Veterans hospitals planned tomake as much space available as theycould.

Downtown New York hospitals wereflooded with hundreds of people injured inthe attack on the World Trade Center. “Allof our hospitals are in emergency mode,”but people were staying surprisingly calm,said Brian Conway, a spokesman for theGreater New York Hospital Association.

The New York University downtownhospital, less than five minutes from theblast, treated some 300 patients shortlyafter it occurred. Some had broken bonesand lacerations; others required major sur-gery, said a spokeswoman. At NYU Medi-cal Center’s main campus, the emergencyroom had seen about 100 patients by mid-afternoon—not the massive influx staffhad been expecting. “I have this horriblefeeling that we don’t have as manywounded. It is a little eerie,” said LynnO’Dell, a spokeswoman.

The Virginia Hospital Center in Arling-ton, Va., the official treatment location des-ignated for the Pentagon casualties, re-ported seeing 37 injured people by lastnight. Eight people were in the intensivecare unit and two were in surgery, aspokeswoman said. The hospital dis-charged 18 people and had seen no fatali-ties, she said.

Transportation ProblemsJerry Squires, vice president and chief

scientific officer of the American RedCross, said the group, which suppliesabout half of the nation’s blood, hadenough on hand to respond to the emergen-cies. But he noted that problems developedin transporting the blood through theclogged cities and closed bridges and tun-nels. Blood was coming to New York andWashington from centers in places such asBoston and Charlotte, N.C. “We haveblood in boxes on trucks … they are readyto get to the doorstep,” he said. The RedCross was working with the military toorganize transport, he said.

Meanwhile, blood centers in Washing-ton and New York were overwhelmed withvisits and calls from people wanting todonate blood to those injured in the at-tacks. The American Red Cross antici-pated providing 60,000 to 80,000 units ofblood to New York and Washington. At theNew York Blood Center, the wait to giveblood yesterday afternoon was about fivehours, and people with rare O-negativeblood types and regular donors weremoved to the front of the line.

Even during the crisis, New Yorkers’trademark pushiness shined through. AtNew York Methodist Hospital in Brooklyn,which has been placed in “disaster mode,”the entrance was crowded with potentialdonors. When guards asked potential do-nors to come back in the morning, peopleweren’t easily turned away.

The National Institutes of Healthopened its Bethesda, Md., campus to ac-cept blood donations, but asked people tocall first.

“Over the next week or two we are verydesperately going to need people to do-nate,” Dr. Squires said.

—Jill Carroll, Kelly Greene,Queena Sook Kim, Lucette Lagnado

and Laura Landrocontributed to this article.

Health WorkersLaunch EffortTo Treat Injured By Joe Flint

And Sally BeattyStaff Reporters of The Wall Street Journal

The broadcast and cable networks de-cided to put aside their relentless competi-tion as they entered an unprecedentedagreement to make all their footage avail-able to one another in the wake of yester-day’s terrorist attacks.

All of the major networks—ViacomInc.’s CBS; General Electric’s NBC, CNBCand MSNBC (a joint venture with Mi-crosoft Corp.); Walt Disney Co.’s ABC;AOL Time Warner Inc.’s CNN; and NewsCorp.’s Fox and Fox News—went into blan-ket coverage mode soon after the firstplane struck the World Trade Centershortly before 9 a.m. EDT and carried livethe second plane crashing into the southtower. The decision to seek a treaty oncompetition was pitched by Don Hewitt,executive producer of CBS’s “60 Minutes,”to CBS News President Andrew Heyward,who then called his rivals. All agreed.

“Let’s get people whatever informationwe can,” Mr. Heyward said of the decision.

“National interest must be served in astory of this magnitude. Standard competi-tive issues fall by the wayside and the needto inform thoroughly takes priority,” saidErik Sorenson, president of MSNBC. Thatgoes for cost as well, as all of the networksare spending millions and millions of dol-lars to cover the event, as well as losing mil-lions of dollars by dropping all commercialsyesterday.

All of the networks scrambled to coverthe story, while coping with extraordinarylogistical challenges. In CBS’s crazed con-trol rooms, producers scrambled to get in-

terviews for anchor Dan Rather whilekeeping tabs on what was going on at thescene. At one point, Mr. Rather had to putSen. John McCain (R., Ariz.) on hold toswitch to a news conference being held byNew York Mayor Rudolph Giuliani.

A CBS correspondent, Carol Marin,barely dodged a fireball as she tried tomake her way to the World Trade Centerfor the network, and another, Eric Sha-piro, was directing coverage of the eventwhile waiting to hear if his daughter, whogoes to school near the World Trade Cen-ter, was safe, which she was.

At MSNBC, the news channel’s stafferswere grabbing their own cameras at hometo shoot footage. NBC has robotic station-ary cameras mounted around the NewYork area, which also were in use. Thesehave helped take the place of helicopters,which normally would be used in an emer-gency but have been grounded by the Fed-eral Aviation Administration.

Walter Isaacson, chairman and chief ex-ecutiveof theCNNNewsGroup, said thenet-work has deployed all eight of its satellitevideo phones, which provide jerky imagesbut allow camera crews to uplink imageswithout cumbersome satellite trucks. Thenetwork also is busy collecting amateurvideo, including close-ups of both planescrashing into the two towers, that it plannedto air on CNN last night. Mr. Isaacson saidCNN began simulcasting on TBS, TNT andCNNfn at about 10 a.m., something the net-work has never done before.

Barbara Olson, who died on one of thehijacked planes, was a contributor toCNN, Mr. Isaacson said. Active in the Re-publican Party, she was the wife of U.S.

Solicitor General Theodore Olson, who ar-gued President Bush’s case before the Su-preme Court during the presidential-elec-tion dispute.

Besides pre-empting all of their ownprogramming and commercials, the net-works took the unusual step of using sisterentertainment cable networks to carry cov-erage. Music channels MTV and VH1 bothdropped regular programming to carrythe feed from sister network CBS. ABCused ESPN as its cable news channel,while Fox dumped programming from itsFX entertainment channel to carry FoxNews Channel fare.

News Corp.’s WWOR New York wasknocked off the air because its antennawas on the World Trade Center and hencehas no coverage.

All of the networks are sticking witharound-the-clock coverage for the time be-ing. “We’re not sure yet when it will end,”said Bill Wheatley, executive vice presi-dent of NBC News.

Interestingly, while the networks allrolled out their star anchors, ABC, CBSand NBC stations in New York often reliedmore on local coverage than their own net-work’s national feed.

Future programming also will be af-fected by the attacks. This Sunday’s broad-cast of the prime-time Emmy awards onCBS has been delayed for at least a week,and there was talk in Hollywood of postpon-ing the traditional start of the new TVseason, which is this Monday. MajorLeague Baseball canceled yesterday’sgames and the National Football Leaguewas undecided about whether it wouldplay games this Sunday.

Some of the networks are wary aboutsome of their new shows. Fox has a CIAdrama called “24,” in which an agent triesto stop the assassination of a presidentialcandidate and in the first episode a terroristblows up a passenger jet. The network haspulled some of the promotions that featuredthe explosion, a spokesman said.

Chicago to cover for the NYMEX. But mostof the focus in the U.S. will shift to thephysical markets, such as West Texas In-termediate, which tracks closely withNYMEX crude futures contracts. Onlineexchanges such as Enron Corp.’s EnronOn-line and Dynegy Inc.’s Dynegydirect,where traders can trade away from theNYMEX floor, will also be tested, said anexecutive at a Houston energy company.Yesterday, however, Enron’s service wasdown because the company’s Houstonbuilding was evacuated.

—Bhushan Bahree in Parisand Thaddeus Herrick



Crude-Oil Prices SoarAmid Fear SuppliesCould Be Disrupted

Hour of Horror Forever Alters American Lives

‘It’s a test of us,’ said Fred Dutton, a former aideto John and Robert Kennedy. ‘Are we going tobecome insecure, and feel the need to have a lessopen, government-controlled society?’

Tuesday, Sept. 11, 2001: a Timelinel 7:58 a.m. United Flight 175, a Boeing

767, leaves Boston for Los Angeles.

l 7:59 a.m. American Flight 11, a Boeing767, leaves Boston for Los Angeles.

l 8:01 a.m. United Flight 93, a Boeing757, leaves Newark for San Francisco

l 8:10 a.m. American Flight 77, aBoeing 757, leaves Washington’sDulles for Los Angeles

l About 8:50 a.m. Plane hits WorldTrade Center, North Tower. ApparentlyAmerican Airlines 11.

l About 9:03 a.m. Plane hits WorldTrade Center, South Tower. ApparentlyUnited 175. (above)

l 9:38 a.m. American 77 crashes intothe Pentagon.

l About 9:45 a.m. White House evacu-ated. FAA suspends all air flights inU.S.

l About 9:50 a.m. First World TradeCenter collapses.

l 9:58 a.m. Man on United 93 calls onmobile phone from bathroom: “We arebeing hijacked.”

l About 10 a.m. United 93 crashes 80miles southeast of Pittsburgh.

l About 10:30 a.m. Second World TradeCenter collapses.

Sources: Associated Press; CNN; airline statements

AP

phot

os

United Flight 93’s Pennsylvania Crash SiteIs Being Treated as Crime Scene by FBI

By Wall Street Journal staff reportersTimothy Aeppel, Patricia Davis andRobert Guy Mathews.

THE WALL STREET JOURNAL

REPRINTINFORMATION:www.djreprints.com

BARRON’SREPRINTINFORMATION:www.djreprints.com

© 2001 Dow Jones & Company, Inc. All Rights Reserved. 1RS004




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crash, offers little protection. And oncehijacked, pilots are trained to cooperatewith hijackers.

One pilot for a major airline, whodeclined to be identified, said that typi-cal pilot training for hijackings focusesonly on dealing with perpetrators de-manding to be taken to a particular desti-nation. “We’re not trained to deal withthis type of terroristic activity,” the pilotsaid. “We’re trained to deal with peoplewho are deranged or want to go some-where … not suicide bombers.”

Pilots can alert air-traffic controllersby radio or by secretly entering a spe-cial code in the plane’s transponder,which broadcasts information from theplane. But there is little else that can bedone. No system exists for interceptinga plane in the air.

“Crews would never allow aircraft torun into buildings, they would steeraway and divert immediately even witha gun pointed to their head,” said Capt.Denis Waldron, a Delta Air Lines pilot.Even untrained pilots could steer an air-borne jetliner into a target, he added.

Investigators may only be able to de-termine what happened aboard theplanes if they can recover cockpit voicerecorders in the “black box” aboardeach plane.

Regardless of who ends up responsi-ble for the attacks, the nation’s commer-cial air-traffic system is bound to bedramatically altered—with the imposi-tion of some time-consuming, intrusiveand costly stepped-up security measuresas the first step.

“Civil aviation as we know it willchange as a result of what happenedtoday. The job of making airports secureis enormous, just enormous,” said Re-tired Adm. Cathal Flynn, the FAA’sformer associate administrator for avia-tion security. The biggest obstacle willbe deciding what to fix, he said, but thatwon’t happen until investigators can de-termine how the system failed.

The extra protection could include in-dividual searches of passengers andtheir belongings. There may be calls formandatory matching of all passengersand luggage before takeoff—an idea theindustry has objected to in the past be-cause it would add to delays. And thereis likely to be talk of major efforts toupgrade bomb- and weapons-detectionscanners at airports.

Logan authorities said last night thatthe airport would likely adopt toughersecurity measures in coming days, in-cluding reduced access points to air-fields, increased spot checks of luggageand passengers, an end to curbside lug-gage check-in, a ban on allowing non-passengers through security check-points, and stepped-up canine searchesfor explosives.

In fact, many of these tougher antiter-rorist ideas gained prominence andwere embraced by many in Congressand the White House during the GulfWar and, again, after the crash of TransWorld Airlines Flight 800. In addition tocarrying significant price tags, such pro-posals would fundamentally change thenature of air travel by restricting oreliminating existing conveniences suchas curbside baggage checks, or showingup at the gate barely 15 minutes or halfan hour before takeoff.

Despite decades of high-level U.S.government concern—and a string of rec-ommendations from blue-ribbon studygroups—the focus of attention hastended to be on issues other than poten-tial hijackings of jetliners. Industry offi-cials said not even the worst-case scenar-ios contemplated the destruction anddevastation that occurred yesterday.

Airport security is the joint responsi-bility of the FAA, airport operators andairlines.

Typically, airlines hire private secu-rity companies to run the X-ray ma-chines and metal detectors. The airlinewith the most flights on a particular con-course is responsible for managing thesecurity screening on that concourse. Inaddition, major airports are required tohave computer-controlled identificationbadges that enable employers and law-enforcement officials to immediatelylock out employees who have been fired.

The GAO, the investigative arm ofCongress, identified two importantcauses for security lapses at check-points: rapid turnover of screening per-sonnel and inadequate attention to hu-man factors. From May 1998 throughApril 1999, turnover more than doubledon average among screeners at 19 largeU.S. airports; five airports (Atlanta, Bos-ton, Chicago, Houston and St. Louis)had annual turnover of more than 200%.

Low wages, minimal benefits anddaily stress contribute to turnover, theGAO said.

“The fact that there has been no ma-jor security incident in the U.S. … innearly a decade could breed an attitudeof complacency in improving aviation se-curity,” Gerald Dillingham, associate di-rector of the GAO, told a congressionalsubcommittee in April 2000.

At one airport, the GAO said, wages

for airport screeners started at $6.25 anhour while fast-food-restaurant workersstarted at $7. Turnover among screeningpersonnel in Europe and Canada islower, the agency said, and screening isoften more stringent.

The FAA has moved to address GAO-identified shortcomings, the GAO said,but slowly. For instance, the FAA lastyear was still planning to establish per-formance standards that screening com-panies would have to meet to earn andretain certification, an action the GAOrecommended in 1987.

FAA spokeswoman Laura Brown saidTuesday that at the time of yesterday’sattacks, the agency was preparing to is-sue rules “in the next week” establish-ing a certification program for airportscreeners.

Congress has also been slow to fill inthe gaps in airport security. Legislationsigned by President Clinton last yearrequires all airport screeners and thosewith access to secure areas to undergo acriminal history record check. But thatprovision doesn’t actually take effect un-til later this year.

In 1999, the FAA became so con-cerned about lax security at the nation’smajor airports that it threatened toforce the airlines to post guards at everyairplane.

At the time, the FAA said that federalagents were able to sneak 46 timesthrough security doors at four major air-ports and then walk around on the tar-mac. They also boarded 51 planes un-challenged. In response, the FAA or-dered increased security at 70 of the larg-est airports and announced that it wouldrun exercises to test for holes in secu-rity.

In a letter to airport directors, Adm.Flynn, who at the time headed the FAA’ssecurity, wrote: “Allowing intruders topiggyback through access doors, notchallenging intruders on the ramp, andintruders being able to get aboard air-craft combine to make a significant vul-

nerability.” The breaches were detailedin a confidential report prepared by In-spector General Kenneth Mead of theU.S. Transportation Department.

Agents working for Mr. Mead foundthat it was possible to sneak throughgates for service vehicles or to walkthrough doors behind airline employeeswithout being challenged.

“Without displaying any identifica-tion, the agents roamed the air-opera-tions area, passing 229 employees, butwere challenged only 53 times,” Mr.Flynn wrote.

In the following months, FAA offi-cials said significant improvementswere made at all of the airports, but atthe same time, they stressed that vigi-lance on the part of every employee wasnecessary if security was to work.

Airport and airline officials have re-sisted taking the most extreme securitymeasures, saying that they would be in-credibly expensive, if not impossible atthe larger airports, where as many as250 airplanes can be on the ground at thesame time.

David Stempler, president of the AirTravelers Association, which representspassengers, said that the disaster re-flects both a lack of security at U.S.airports and wrong assumptions aboutlikely terrorist attacks.

Mr. Stempler said that most expertswhom he heard at security and risk-as-sessment meetings had assumed that ter-rorist attacks would come on interna-tional rather than domestic flights.Their reasoning was that, once terror-ists were inside the country, theywouldn’t bother to go to an airport butwould bring their weapons straight tothe target.

That being said, though, Mr. Stem-pler believes that security at airportsshould be upgraded and coordinated na-tionally rather than leaving it up to inter-national airports and airlines. Also, hesaid, X-ray machines that require hu-man scanning for guns or knives shouldbe replaced by computers that automati-cally detect weapons.

“The reality is, we had the facade ofsecurity and safety in this country,” hesaid. “We really didn’t have a full-blown, intense security system. Itwasn’t perceived that the risk was there.The public won’t accept heightened lev-els of security and all the inconveniencethat entails unless they’re convincedthere’s risk.”

Security at major airports has alwaysbeen a tough issue for the FAA and theairlines. On the one hand, the travelingpublic expects airports to be absolutelysafe, but passengers also expect to be

able to travel with ease.During the Gulf War, passengers got

a glimpse of how inconvenient air travelcould be when the government tempo-rarily suspended curbside baggagecheck-in and prohibited all but ticketedpassengers from passing beyond secu-rity checkpoints.

Security at Boston’s Logan Airporthas been a particular issue over theyears. In 1998, the FAA investigated acompany called Capital Building Secu-rity of Boston, which did airport clean-ing for the Massachusetts Port Author-ity, which runs Logan. The company wasaccused of giving employees securitybadges and access to secure areas with-out conducting background checks. Capi-tal Building didn’t return a phone callyesterday.

In July 1999, a teenager dressed as aHasidic Jew scaled an airport fence andwalked two miles across a restrictedramp area and stowed away on a BritishAirways flight to London. That fall, theBoston Globe reported that FAA specialagents found at least 136 security viola-tions at Logan from 1997 through 1999.As a result, the FAA reportedly finedmajor airlines and Massport $178,000.Agents found that screeners routinelyfailed to detect test items like pipebombs and guns, and agents were ableto gain access to planes parked over-night at gates and walked through se-cure doors without being questioned.

Last month, the FAA said it was seek-ing $99,000 in civil penalties againstAmerican Airlines for allegedly failingto apply appropriate security measureson six flights, including one originatingfrom Boston’s Logan Airport. The viola-tions were discovered on June 25, 2000when FAA special agents found thatAmerican improperly transported unac-companied bags on five flights, failed toperform passenger ID checks on twoflights and failed to ask appropriate se-curity questions regarding checked bagson two flights.

The FAA said American took immedi-ate corrective action at the airportswhere violations were found in order tobring the airline’s security measuresinto compliance.

James F. McNulty, an executive vicepresident at Burns International Ser-vices Corp., which provided preboardingsecurity for American Airlines at Loganairport in Boston through its Globe Avia-tion Services Corp. unit, said their staffmembers at Logan didn’t report any-thing out of the ordinary yesterdaymorning before the hijackings.

“We talked to them first thing thismorning. There was nothing unusual,”he said.

Mr. McNulty said his company hadno information about how the hijackersmight have smuggled weapons aboardthe plane, or even whether they actuallyhad any weapons. “Your guess is asgood as mine.” But he noted that therewere “hundreds of vendors” at the air-field with access to airplanes, includingpostal, delivery and food service person-nel. (Globe Aviation wasn’t in charge ofon-tarmac security).

“You penetrate four airplanes, thiswas pretty well-planned,” he said.

Mr. McNulty declined to providemore information on security precau-tions at Logan or on Globe’s operationsthere, saying his company and Ameri-can had been advised by the FBI to referall questions to FBI agents.

Burns International’s Globe AviationServices unit won the contract to pro-vide security services for American Air-lines at Logan last year. Both Globe andBurns are units of Sweden’s SecuritasAB. Burns is based in Chicago.

A woman answering the phone atGlobe’s head office said Ronald J.Harper, president and CEO, was “in ameeting” as were other executives. Shesaid the company had “no comment atthis time.”

Logan Airport authorities said Hunt-leigh USA Corp. provides gate and bag-gage security services for United Air-lines. United officials declined to iden-tify the security firm at Logan Airport.Officials at St. Louis-based Huntleighdidn’t return repeated phone calls.

At Logan yesterday, Massport secu-rity chief Joseph Lawless said theagency would assess security.

“I feel Logan is a safe airport,” hesaid. “We’ve taken a lot of measures inplace to maintain the security of the air-port.” Mr. Lawless added that he consid-ered Logan “as secure as any other air-port in this country.”

—Stephen Power in Washington,Nicole Harris in Atlanta

and Andy Pasztor in Los Angelescontributed to this article.


‘We’re not trained to deal with this type ofterroristic activity,’ a pilot said. ‘We’re trained todeal with people who are deranged or want to gosomewhere…not suicide bombers.’

U.S. Airport Security Fails in Tragic Way

thought America was the safest country.… I think people will be more cautious andwon’t assume nothing will happen becauseit can.”

His mother echoed his concern, “Ourworld as we know it isn’t going to be thatway for a long time,” Lorrie Strauss said.

“I was so scared, because I didn’t knowwhere my dad was,” said Elizabeth Gei-ger, at student at Ursuline Academy inNew Rochelle, N.Y.

Hunter Blakely, a sixth-grader at Pel-ham Middle School, said, “I was feelingpetrified. I thought my Mom was thereand that we were going into a war and thatwe could get bombed at night.”

People worried about neighbors andfriends who worked in the World TradeCenter. They greeted each other with re-lief and exclamations of, “Thank Godyou’re OK.”

In Rockville Centre, N.Y., a Long Island

suburb of New York City, the train stationwas unusually silent in the afternoon, be-cause commuters weren’t coming home be-cause of canceled trains. A hastily erectedmarquee-type sign at the station advised res-idents of the urgent need for blood.

Nearby, at a blood bank affiliated withLong Island Blood Services, so many do-nors had volunteered that officials wereaccepting only donors with O-negativeblood type, known as universal donorssince their blood is accepted by any recipi-ent. Donors with other types of blood weretold to return later, or go to nearby hospi-tals or a Marriott hotel that were conduct-ing blood drives over the next few days,said Susan Arnold, R.N., unit manager forLong Island Blood Services.

Ms. Arnold directed staffers and volun-teers, carrying ice into the building, whileanswering questions from a cancer survi-vor about whether she could donate blood.More than 100 donors had already given

blood, Ms. Arnold said. Dozens more tooknumbers and sat on folding chairs thatwrapped around the building, waitingtheir turn. In the street out front, volun-teers suggested to people without O-nega-tive blood could donate at a later time—toease possible future shortages, since do-nated blood has a shelf life of only amonth, and donors must wait 56 days be-fore donating again.

Local restaurants donated food anddrinks for the blood donors and blood-bankworkers.

The mood was mostly solemn and deter-mined, but signs of anger were also inevidence.

In nearby Oceanside, commuters whodid straggle home through the day weregreeted by neighbors with exclamations ofrelief at their safe return, and anxiousquestions about those who had yet to comehome.


NewYork City’s Commuter SuburbsWorry andWait

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A DAY OF TERROR

sands, of people and leaving countless oth-ers maimed and burned.

The streets of downtown Manhattanwere strewn with body parts, clothing,shoes and mangled flesh, including a sev-ered head with long, dark hair and a sev-ered arm resting along a highway about300 yards from the crash site. People flee-ing the attacks stampeded through down-town and streamed across the BrooklynBridge while looking over their shouldersat the astonishing sight of the World TradeCenter collapsing in a pile of smoke andash.

Andrew Lenney, 37 years old, a finan-cial analyst for the New York City Council,was walking to work a few blocks from thetrade center when, he said, “I saw theplane out of the corner of my eye. You’reaccustomed to a plane taking up a certainamount of space in the sky. This plane washuge. I just froze and watched the plane.

“It was coming down the Hudson. Itwas banking toward me. I saw the tops ofboth wings,” he said. “It was turning tomake sure it hit the intended target. Itplowed in about 20 stories down dead cen-ter into the north face of the building. Ithought it was a movie,” Mr. Lenney said.“I couldn’t believe it. It was such a perfectpyrotechnic display. It was symmetrical.”

Outside the Pentagon, hundreds ofworkers who felt the building shake onimpact poured outside amid spewingsmoke. Inside, lights had switched off andalarms were blaring. “We heard a loudblast, and I felt a gust of wind,” said acivilian Pentagon worker who asked not tobe identified. “I heard a loud explosion,and somebody said, ‘Run, let’s get out ofhere.’ And I ran.”

The president learned of the initial

plane crash in New York before joining aclass of schoolchildren in Sarasota, Fla. At9:04 a.m., Chief of Staff Andrew Card whis-pered word of the second attack into hisear as Mr. Bush was reading to the chil-dren. About a half hour later, he appearedon television to inform the nation that ter-rorists were behind the tragedy. He saidhe had ordered a full-scale investigation to“hunt down and to find those folks whocommitted this act.”

Shortly before 9 a.m., American Air-lines’ Flight 11 from Boston, hijacked bysuspects with knives, slammed into onetrade center tower. Eighteen minuteslater—as millions watched the first towerburn on live national television—a secondhijacked jet crashed into the other tower.By midmorning, the south tower had ex-ploded and collapsed, raining debris andsending choking dust and smoke acrosslower Manhattan. Within half an hour, thesecond tower caved in.

As that scene unfolded, a third hi-jacked jet crashed into the Pentagon. Theside of the building caved in, with second-ary explosions bursting in the aftermathand huge billows of smoke rising over thePotomac River, where they could be seenall the way to the White House.

A fourth plane, also hijacked, crashedabout 80 miles south of Pittsburgh. UnitedAirlines said it was a Boeing 757 en routefrom Newark, N.J., to San Francisco. Itcrashed in a remote field, killing all 45 onboard. Virginia Rep. James Moran, a Dem-ocrat, told reporters after a military brief-ing yesterday that the rogue plane couldhave been headed to the Camp David presi-dential retreat in the mountains of south-ern Maryland.

The FBI, with 20 agents at the site, saidthat it was treating the crash as a crime

scene. Early reports indicate that therewere no ground fatalities.

In Pennsylvania, Daniel Stevens,spokesman for the Westmoreland Countypublic-safety department, confirmed thatits 911-call center received a call from aman aboard United Flight 93 over Pitts-burgh at 9:58 a.m. The caller, claiming hewas locked in a bathroom, said “the planeis being hijacked,” and repeatedlystressed that his call was “not a hoax.” Mr.Stevens said he thinks the call was bonafide. On the same flight, a flight attendantfrom Fort Myers, Fla., called her husband

on a cellphone shortly before the planecrashed.

A federal official said a crew memberon one of the American flights called thecompany’s operations center and reportedthat several crew members had beenstabbed and relayed the seat number ofone of the attackers.

The crashes shattered a placid, clearmorning in New York and Washington. Byearly afternoon, fighter jets were patrol-ling Manhattan, and downtown New Yorkhospitals were turning away people offer-ing to give blood because of long lines.With cellphones not working, peopleswarmed pay phones and huddled aroundradios. And the trade center towers haddisappeared from the skyline.

Vincent Fiori was on the 71st floor ofthe first tower that was hit. “I’m sitting atmy computer and I heard a rumble andmy chair spun around,” he said. Most peo-ple weren’t sure what had happened. Onthe street, people gazed up at the gaping,smoking hole in the building, some hold-ing handkerchiefs over their mouths,more curious than frightened.

The mood changed quickly when thesecond plane hovered into view andswerved into the other tower. Mr. Zwyhun,the Tradecard executive, was on the upperdeck of a ferry, returning to New Jersey,when he saw the second crash and real-ized “this wasn’t an accident.”

Panic ensued, as stock traders, secre-taries, construction workers and storeclerks ran for cover. But there was bizarrecalm, too, as some businesspeople resched-uled meetings on cellphones. Policeshowed up in numbers, ordering everyoneto move uptown as fast as possible.

The top floors of the buildings wereengulfed in smoke, and people began leap-ing from windows, one at a time, hittingthe ground, shrubbery, and awnings. Onthe Brooklyn Bridge, dust-covered NewYorkers trooping homeward jammed thepedestrian walkway. A man in shorts anda T-shirt, running toward Manhattan witha radio to his ear, shouted “The Pentagonis burning, the Pentagon is burning!” anda young woman talking on her cellphoneshouted, “My mother works there. I don’tknow where she is. What is happening?What is happening?”

Pedestrians streaming off the Williams-burg Bridge were met by local workerswho had dismantled office water coolers,stacked mountains of plastic cups andhauled cases of water to the foot of thebridge. Tom Ryan, a burly ironworker whowas handing out cups of water, said, “Ourlives are never going to the the same. Nowwe’re going to go through the same thingsas other countries.”

Ferries, police boats and pleasure craftcruised up to the side of the promenadenear the towers to whisk people away—children and the injured first.

Paul and Lee Manton, who moved toNew York only a month ago from Austra-lia, were holding their two children, ages 3and 5, and frantically trying to find outwhere to go. The family lives near thetowers, and after the planes hit, Mr. Man-ton stared out his window at the flamingbuildings. “I said, ‘These are going to godown,’ and just as I said it the buildingstarted falling.” Fifteen minutes later, heand his wife rushed their children outsidein search of escape.

For more than 45 minutes after the sec-ond plane smashed into the second WorldTrade Center tower, the skyscrapers stillstood—burning but apparently solid. Work-ers in the nearby buildings flooded out,and the promenade along the HudsonRiver was where many of them went.When the tower started to cave, it beganwith a low rumble. Slowly, amid a darkcloud of smoke, the debris rained down.“My God, it’s falling,” someone shouted.Mesmerized, no one moved.

A firefighters union official said hefeared an estimated 200 firefighters haddied in rescue efforts at the trade cen-ter—where 50,000 people worked—and doz-ens of police officers were believed missing.

Father John Doherty, a Roman Catho-lic priest, was on the street not far fromthe Marriott Hotel adjacent to the WorldTrade Center. “I was buried and dug myway out,” he said, speaking on a stretcherin Battery Park City a few blocks south ofthe ruins. He paused to spit, and out camea wet, gray wad of ash. In the pitch dark ofthe smoke, he said, he made it to safetyonly by following a guard rail that runsalong the riverside. “It’s only the finger ofGod that saved me,” he said.

Timothy Snyder and two other employ-ees of Thermo Electron were in their 85thfloor office in the North Tower of the WorldTrade Center when the plane hit threefloors above them. They didn’t know itwas a plane; Mr. Snyder believed it was abomb.

“We were just working,” he says. “Allof a sudden, we heard this slammingsound that was so loud. The debris startedfalling outside the windows, and the doorto the office blew open. The buildingstarted swaying, and it was hard to say ifthe building would remain standing. I wasin my chair, and I just grabbed onto mydesk.

“After five or 10 seconds, the buildingstopped moving, and we knew we had toleave. We all grabbed our bags and headedout.” They walked down to the 78th floorwhere they were guided to another stair-well, crossing a lobby with a bank of eleva-tors. The marble walls of the lobby werebuckled.

As they walked down, the stairwellswere crowded but calm. “There was airyou could breathe,” he says. “We didn’tfeel we were being suffocated.” They wereguided through the mall under the WorldTrade Center. Just as they came out,

World Trade Center Two collapsed. “Beingin the cloud of smoke was like being in thisvery dense, unbreathable air that was soblack no sun was getting through.” He ranfor safety and made it.

“We feel, since the plane hit only threefloors above us, amazingly thankful we’reall alive. But there were emergency work-ers going up those steps while we weregoing down. They were trying to save oth-ers and they didn’t make it.”

In New York, officials set up a triagecenter in Jersey City, N.J., in front of theDatek Online Holdings building on theHudson River. At Chelsea Piers, a recre-ational complex along the Hudson River,emergency officials set up a makeshifttrauma center in a cavernous room thatappears to be used as a set for TV showsand films. “Trauma” was spray-painted inorange letters over one entryway, and in-side there were more than 50 beds—manyconverted from fold-out tables and lit withthe aid of television studio lights. Some 150surgeons, in town for a medical confer-ence, reported to the trauma center andwere prepared to take patients. Emer-gency workers prepared several dozen vol-unteers who were to be assigned one-on-one to accompany patients as they camein for treatment.

But as of 4:30 p.m. more than sevenhours after the first plane struck one ofthe World Trade Center towers, thereweren’t many patients—only a handful ofemergency personnel had come in fortreatment of minor injuries. One emer-gency official, communicating through abullhorn, told the waiting doctors, nursesand emergency medical technicians thatthe New York Fire Department at thescene wasn’t permitting rescue workers tohead into the rubble. “It’s still too hot,”the official said. And the city’s hospitalsstill had vacant beds.

Mike Athemas, a 46-year-old volunteerfireman, headed downtown once the bombwent off and didn’t leave until midafter-noon. “Everywhere you turned, there wassomeone taking bodies out of the rubble,”he said. Making matters worse, docu-ments that had been blown from the build-ing were catching fire and igniting vehi-cles outside the World Trade Center.“There were 20 cars and trucks—policecars and emergency vehicles—on fire,”said Mr. Athemas. One New York city fire-fighter sobbed aloud, “My company isdead. They’re all dead.”

After the first plane hit the WorldTrade Center, New York City firefighterCraig Gutkes was part of a ladder com-pany in Brooklyn that was called in toManhattan. When he was still on theBrooklyn side, his company saw the sec-ond plane roar over their heads, “Itsounded like a freight train,” he said.They watched that plane plow into TowerNo. 2. When he arrived on Liberty Street,“It was like a war zone when we got there.There were body parts all over the street.”

In midtown, in front of St. Bartholom-ew’s Church, an Episcopal church, assis-tant rector Andrea Maier stood in thestreet in white vestments, handing out aspecially printed prayer for peace to thedazed throngs walking uptown. Dozens ofpeople prayed inside the church. Specialservices for peace were being held everyhour to accommodate people walking in offthe street to pray. “We’ll just do this allnight if we have to,” said the church rec-tor, the Rev. William Tully.

Amir Chaudhary, a 24-year old taxidriver, watched the second tower collapsefrom across the Hudson River in JerseyCity. “In a blink of my eye the Twin Tow-ers were gone. There was no boom even.Didn’t hear anything. Guys were on theirknees crying, begging me to give them aride away. I feel like maybe it’s a baddream: If I wake up, I could get the TwinTowers back.”

Although the White House was not dam-aged, its people were not untouched by thetragedy. Barbara Olson, wife of U.S. Solici-tor General Theodore Olson, was on boardthe Los Angeles-bound airplane that tookoff from Dulles Airport and crashed intothe Pentagon. Ms. Olson, a frequent politi-cal commentator, used a cellphone to callher husband just moments before shedied. Late in the day, President Bush tooktime from his security briefing to call Mr.Olson and offer his condolences.

Before sending his aides home, Sen.John Warner of Virginia recalled to them,“I was in Washington when I heard aboutthe Japanese attack on Pearl Harbor. Thisis another Pearl Harbor, and now yourgeneration will have to meet the chal-lenge.”

By yesterday evening, military vehi-cles were patrolling the city, and policehad cordoned off a three-square area nearthe White House.

In Arlington, Va., abutting Washing-ton, fishermen plunking for catfish at amarina near the Pentagon said they couldfeel the heat from the explosion. TheWhite House, the Capitol, and the Trea-sury and State departments were evacu-ated shortly after the crash at the Penta-gon. “Get out! Get out!” police yelled asthey swept through federal buildings. Aslegislators streamed out of the Capitol, thememorial chimes across the street played“God Bless America.”

Continued From First Page

By early afternoon, fighter jets were patrollingManhattan.With cellphones not working, peopleswarmed pay phones and huddled around radios.And the towers had disappeared from the skyline.

Scenes of Explosions and Chaos Shock All of America

and Washington. They apparently werearmed with knives, and investigators believethat in at least two of the planes they “cor-ralled and put in the back” the regular pilots,leading to the assumption they were experi-enced in handling jets. The FBI has been por-ingoverairportsecurityvideosandflightman-ifests, and officials said they are findingstrong leads to the identities of the hijackersfrom the names found there.

Last night, a law enforcement official saidthe FBI was seeking warrants to search aformer residence of one of the hijackers inDaytona, Fla. The official added that airportvideo surveillance, as well as names on themanifests, suggested that the hijackers wereof Arab nationality. In some cases they werearmed with box cutters in addition to knives.One passenger, Barbara Olson, the wife of so-licitor general Theodore Olson, telephonedtheJusticeDepartment inanattempt toreachher husband during one of the harrowingflightsandsaidpassengerswerebeingheld inthe back of her plane before it smashed intothe Pentagon.

In a clear sign of the operation’s profes-sional nature, a government official said thehijackersknewhowtoshutofftheplanes’tran-sponders, which transmit airline flight num-ber, speed and altitude. The official said itwasn’t clear when the transponder in Ameri-can Airlines Flight 11 from Boston, the firstplane to strike the World Trade Center, wasturned off, but it happened before it hit its tar-get.

Meanwhile, average Americans far fromthe attack sites already are feeling the after-shocks. Many suddenly are worrying about amatter that had never previously occurred tothem: the safety of their cities from coordi-nated attack. Shortly after the World TradeCenterattack,PeggySmith,anofficeadminis-trator with the law firm of Conley Rose &Tayon, left her downtown Houston officeclutching computer-tapes and copies of ac-countdata forsafe-keeping.“This is theendofthe world as we know it,” she said. “TheUnited States will never be the same.”

Underscoring that sentiment, AmericanF-16 fighter jets were scrambled and two air-craftcarriersweredispatched,nottosomedis-tant foreign destination, but to protect theskies and seas around Washington and NewYork. For the first time ever, all airline flightswere grounded across the country. Financialmarkets were closed.

Theeventsoccurredwithoutanyapparentwarning, prompting immediate questions inWashington and elsewhere about a failure ofU.S.intelligence.Howdidsuchabroadandco-ordinated attack on multiple sites occur with-out U.S. intelligence officials getting wind ofit? How were so many commercial airplaneshijackedanddivertedhundredsofmilesoutoftheir flight paths toward the nation’s largestpopulation centers? “Today our governmentfailed the American people,” said Rep. CurtWeldon, a Pennsylvania Republican.

Yet there were some hints of trouble thatwere, in retrospect, under-appreciated. A se-nior U.S. intelligence official who left the gov-ernment earlier this year said that the jointFBI-CIAcounter-terrorismcenterhadbeenre-ceiving what it considered solid intelligenceduring the past two months pointing to possi-ble imminent attacks by Islamic extremists.The intelligence consisted of a noticeable up-tick in communications activity among Is-lamic extremist groups.

Someofficialsbelieved,though,thattheat-tacks were likely to occur overseas, as did re-cent attacks against American embassies inAfrica and against the USS Cole in Yemen“We’ve known for the last two months thatsomething was planned; just nobody knewwhere,” the former senior official said.

At the same time, there had been height-ened concern for several weeks about a possi-bleattack on amilitary target in theWashing-ton area, said a current U.S. official. For thatreason,checkpointsatFortMyerandFortBel-voir, both in the Washington area, have beenmorestrict.At theWhiteHouse, even thecarsof members of Congress have been checkedforexplosives,andtherewasapartialevacua-tion several weeks ago when a car suspectedofcarryingabombwasspottedoutside theex-ecutive mansion. “Who the hell would thinkthey would fly airplanes?” one official asked.

There are multiple reasons to suspect Is-lamicextremists, which explains the immedi-ate focus on Mr. bin Laden or liked-mindedcompatriots.Earlierthisyear, inaManhattancourtroom only a short walk away from theWorldTradeCenter, fourofhis followerswereconvicted on all charges in the 1998 bombingsof two U.S. embassies in Africa. At one point,sentencinghadbeenset for today, thoughthathad been postponed.

At the same time, Sheik Omar Abdul Rah-man, the spiritual leader of Al-Gama’a al-Is-lamiyya, Egypt’s largest militant group, sitsin a U.S. prison in Minnesota for his role inplanning an earlier but failed attempt at ter-rorism in New York. His followers have beenseething ever since he was convicted in 1995forhisroleinaplot tostageaseriesofterroristattacks in New York, and officials say he mayhavehelpedinspireabombinginaparkingga-rage of the same World Trade Center de-stroyed.“I’venever forgottenabout thatblindsheik and what a symbol he was to radical Is-lamists,”saidRobertBlitzer, theFBI’sformerdomestic terrorism chief. “This could be re-venge.”

Ties between Sheik Abdul Rahman’s fol-lowers and the bin Laden world appear tohave tightened. Just last month, the foreignminister of the Taliban, the Islamic organiza-tionthateffectivelyrunsAfghanistanandhar-bors Mr. bin Laden, suggested the U.S. couldtrade Sheik Abdul Rahman for several West-ern aid workers under arrest in Kabul.

The violence raging between Israel andPalestinians has given Islamic extremistsmore reason to be agitated at the U.S. Suchanti-Americanentitiesas IraqandtheHamasand Hezbollah extremist organizations haverallied to the side of the Palestinians, railingagainst both Israel and its American ally.

In any event, the attacks themselves weresointricatelyplannedandsovast inscopethatthey transcend any past terrorist action.Some experts speculated that the enormity ofthe plot could even point to the involvement ofa hostile government, such as Iraq or Iran.

Manyexperts,though,agreedthesimulta-neous nature of the attacks and other trade-marks pointed to the larger terror networkrun or somehow inspired by Mr. bin Laden.

The list of non-state actors even remotelycapable of pulling off such an attack is quitesmall. The only group generally known forstaging simultaneous, complex terrorist at-tacks is Al Qaeda, the loose organization ledby Mr. bin Laden. The U.S. has indicted himfor the two 1998embassybombings inEastAf-rica, and U.S. officials say that evidencepoints convincingly to his involvement in thebombing last year of the USS Cole in the Ye-meni port of Aden.

Other groups such as Hamas on the WestBank, or Hezbollah, in Lebanon, have stagedtruck bombings and suicide attacks in Israeland elsewhere across the region. But no onehas ever pulled off a series of attacks of thismagnitude. Nor, experts say, are either ofthose groups prone to targeting Americans,despite the fact that anger is now high towardthe U.S. across the Arab world.

James Steinberg, former deputy nationalsecurityadviserunderPresidentClinton,saidhe believed that an attack of this size waslikely the work of several groups within Mr.bin Laden’s greater orbit. Of those, he listedthe Algerian-based Armed Islamic Jihad andthe Al-Gama’a al-Islamiyya, Egypt’s largestmilitant group. Mr. bin Laden’s Al Qaeda hasbeenknownforseveralyearstobeinclosecon-tactwithoperatives fromawide rangeofmili-tant groups across North Africa and the Mid-dle East.

Other terrorism experts said the attacks,in their sheer audacity, bore many trade-marks of the bin Laden strategy. The Africanembassy bombings, one in Tanzania and theother in Kenya, occurred less than 10 minutesapart, while the attacks on the two WorldTrade Center towers happened within 18 min-utes. The fact that the World Trade Centerwas at the center of the plot also points to theactorsbehind the1993TradeCenterbombing,many of whom were later found to have hadclose ties to the bin Laden network, accordingto U.S. officials involved in the investigation.

Yet some experts also said the complexityoftheoperationmadeitunlikelythatAlQaedacouldhavepulleditoffwithouthelpfromotherterroristorganizationsmoreexperiencedathi-jackings and the technical problems of over-coming airport security. Al Qaeda has beenbuilding ties with groups like Islamic Jihad,the Iranian-backed Palestinian terroristgroup, which has threatened attacks againstU.S. interests recently in response to Israeliuse of U.S.-supplied fighters and helicopterson the West Bank.

One official noted that several of thecrashed jets were laden with fuel, whichwouldmake itmoredifficult forhijackerswhotook control of the jets to maneuver them un-less they were experienced or hadsome train-ing at controlling large airliners.

“If it turns out that bin Laden claims re-sponsibilityfor theseattacks,hecouldn’thavedoneitwithouthelpfromprofessionals, likeIs-lamic Jihad,” said Robert Baer, a former CIAofficer and Middle East specialist.

Certainly the attack would signal a fright-ening increase in Al Qaeda’s deadly skills. Itsprevious attacks have used truck bombs andother crude devices. Other attacks linked tothe group have been plagued by problems.More than a year before the bombing of theCole, another attempt to bomb a U.S. warshipfailed when a boat carrying explosives sank.A Los Angeles airport bombing was thwartedaltogether.

On a more ominous note, some former ter-rorism officials also speculated that the at-tacksmayreveal thatMr.binLadennowhasalarge and sophisticated domestic terror net-work operating within the U.S.

“It isnot toberuledout that therearetacti-cians,bomb-makersandplottersnowfullyac-tive in theU.S.,manyofwhomhavebeenherefor years,” said Daniel Benjamin, a formercounterterrorism official in the Clinton WhiteHouse.

The diffuse and overlapping organizationof today’s terror groups became particularlyclear after the aborted millennium plot in De-cember 1999, when U.S. border agents ar-rested an Algerian crossing into Washingtonstate with a trunk-load of explosives. Tenta-cles of that plot, which targeted the Los Ange-lesairportandothersites,extendedfromCan-adaandcitiesacrosstheU.S.toactorsinAlge-ria, Sudan, Egypt and Afghanistan.

In a bizarre twist, some experts suspectthat thebinLadenorganizationmayalsohavehad a hand in a suicide bomb attack againstAhmed Shah Massoud on Sunday in northernAfghanistan. Mr. Massoud leads the opposi-tionforce fightingAfghanistan'sTaliban lead-ers, who control about 90 percent of the coun-try. The Taliban have given refuge to Mr. binLaden since the mid-1990s. There are conflict-ing reports as to whether Mr. Massoud sur-vived the blast.

FormanyAmericans,amoretangibleandbitter image of anti-American sentimentabroadwill be the scenes of someabroad cele-brating the terrorist attacks on Americans. IntheWestBank, thousandsofPalestinianstooktothestreets toheraldtheattacksandexpresstheir happiness. And in Sierra Leone, Paki-stanimembersofaUnitedNationspeacekeep-ing forcewere laughing, smiling andslappinghands at the mission headquarters in Free-town.

If the attack was launched by a non-stateentity, choosing when and where to retaliatemay not be easy.

AfterthebombingoftwoU.S.embassiesinEast Africa in 1998, President Clinton orderedcruise-missile strikes on a site where Mr. binLaden and his top lieutenants were supposedto be meeting. As it turned out, the meetinghad ended and the strikes came too late.

“Thebig question for everyonenow ishowmuchintelligencedowehave?Dowehave thekind of intelligence that we need?” said re-tired Gen. Dennis Reimer, former Army chiefof staff and now head of the Oklahoma Na-tionalMemorial InstituteforthePreventionofTerrorism.

TheU.S. could movemore easily to punishany state that abetted Mr. bin Laden, espe-cially Afghanistan, which has refused re-peated demands to turn him over. A devastat-ing military strike on the Taliban’s headquar-ters could be one course.

Afghanistan’s Taliban leaders wereclearlyverynervousaboutthatpossibility,de-nying Mr. bin Laden’s involvement and call-ingforAmerican“courts”toseekjustice.Ase-ries of explosions last night in Kabul, the Af-ghancapital, apparentlywerepart of internalfighting between the Taliban and its internalfoes, and not part of any U.S. response to theterrorist attacks.

Continued From First Page

Attacks on Symbols of U.S. PowerAlter Nation’s View of World Role

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Although the perpetrators of yester-day’s terrorist attacks have yet to be iden-tified, Islamic-Americans in many citieshave already begun grappling with an an-gry backlash.

Salam School, an Islamic elementaryschool in Milwaukee, evacuated its 372 stu-dents after receiving two threateningphone calls. “They were obnoxious callssaying, ‘Why are you Arabs doing this,’ ”says principal Humaira Bokhari, who toldthe callers that she didn’t support the at-tacks and was as shocked as anyone else.

Meanwhile, Islamic schools in South-

ern California were evacuated, a FortWorth, Texas, mosque received a bombthreat and Talal Eid, religious leader ofthe Islamic Center of New England,Quincy, Mass., pulled his 15-year-olddaughter out of high school amid fearsthat she might be attacked for wearing ahead scarf. “We are not guilty of any-thing,” Mr. Eid said, adding that: “Wehappen to be citizens of America.”

Islamic groups in this country con-demned the attacks. “There is no reasonwhatsoever that can justify taking thelives of innocent people,” said Souhil Ghan-nouchi, president of the Muslim AmericanSociety, Alexandria, Va. Omar Ricci,spokesman for the Los Angeles branch ofthe Muslim Public Affairs Council, com-pared the attacks to Pearl Harbor. “Weunequivocally condemn this treacherousact,” Mr. Ricci said. He added that “in theback of every American Muslim’s mindright now is the camps that Japanese-Americans were thrown into after the[Pearl Harbor] bombing.”

As of last night, U.S. investigatorshadn’t said who they believe is responsiblefor the deadly wave of terrorist attacks.

Saudi dissident Osama bin Laden hasin recent weeks indicated that he plannedto punish the U.S. for its support of Israel,according to Arab intelligence officialsand Abdel Bari al Atwan, a London-basedPalestinian journalist who has inter-viewed Mr. bin Laden and forged closecontacts with his supporters. Arab intelli-gence officials and Mr. al Atwan both said,however, that they discounted the informa-tion as bluster.

Palestinian leader Yasser Arafat, visi-bly taken aback, told reporters, “We com-pletely condemn this terrible attack,” andadded, “We are completely shocked. Unbe-lievable.”

Islamic-Americans have dealt withsuch hostility in the past. In some cities,Arab-Americans were chased through thestreets by college students following the1979 seizure of the U.S. Embassy in Te-hran. Islamic mosques and schools in thiscountry were also hit with threats afterearly—and ultimately erroneous—reportsthat Islamic extremists were responsiblefor the 1995 Oklahoma City bombing.

Still, yesterday’s attacks could meanheightened scrutiny for groups like theHoly Land Foundation for Relief and De-velopment, of Richardson, Texas. Thegroup says it is a nonprofit organizationthat co-ordinates humanitarian aid to theMiddle East and has no ties to Islamicextremists. The foundation issued a state-ment condemning the attacks.

Less than a week ago, foundation sup-porters condemned what they called an“anti-Muslim witch hunt” after federalagents arrived at its offices and thenearby offices of InfoCom Corp., an Inter-net services business, with subpoenas fordocuments and records. A lawyer for Info-

Com, a closely held business that hostsabout 500 Web sites, including the founda-tion’s, said that federal agents didn’t dis-close what they were looking for, but cop-ied documents and computer hard drives.After the raid, the U.S. Commerce Depart-ment suspended InfoCom’s export privi-leges for allegedly sending computer tech-nology to Libya and Syria. Mark Enoch,InfoCom’s attorney, said the concerndoesn’t “have any ties at all to terroristactivities.”

Amid such incidents, “the Muslim com-munity in America is feeling prejudiceagainst it, and it’s not fair,” said RabbiJohn Rosove of Temple Israel of Holly-wood in Los Angeles. Mr. Rosove has beenpart of a Muslim-Jewish dialogue group inLos Angeles that has had its own tensions;it stopped meeting over the summer afterhostilities escalated in the Middle East,only to reconvene last week for the firsttime in months.

He stressed that “we should avoid tar-ring and feathering all Muslim-Ameri-cans.” Even if it turns out that an Islamicfundamentalist group is behind the terror-ist attacks—something far from clear atthis point—“we have to remember thatMuslim-Americans are American citizens,and they have civil rights,” he said.

Some Islamic-Americans aren’t takingany chances. A spokesman for the Councilon American Islamic Relations, a Washing-ton D.C., advocacy group, advised peoplewho wear Islamic attire to “stay indoorsfor the immediate future.”

Ingrid Mattson, a respected Muslim ac-ademician at Hartford Seminary, Hart-ford, Conn., says the horror of the attackshas already made her self-conscious aboutwearing her traditional scarf and fearfulabout what lies ahead for Islamic Ameri-cans. “My heart sinks,” she says. “Thiscan’t help but set us back.”

—Russell Goldcontributed to this article.

U.S. Forces Are Put on the Highest State of Alert

A DAY OF TERROR

Jet Fuel Fire Is Likely Cause of Buildings’ Collapse

Islamic-Americans Grapple With Quick Backlash

By Wall Street Journal staff reportersRobert Tomsho, Barbara Carton andJoe Periera in Boston; PatriciaCalahan in Chicago, and JamesDorsey in Amsterdam.

By Greg JaffeAnd Nicholas Kulish


WASHINGTON—The Pentagon putU.S. forces on highest alert as it scram-bled fighter jets and dispatched ships toprotect U.S. citizens at home and to pro-tect troops abroad.

Meanwhile, the question of how theU.S. military will respond to the attacks onthe World Trade Center and the Pentagonremained unanswered. In a speech fromthe Oval Office last night President Bushvowed that those responsible would be pun-ished. “We will make no distinction be-tween the terrorists who committed theseacts and those who harbored them,” hesaid.

In the hours after the attacks, the U.S.military sent two aircraft carriers and AirNational Guard fighter jets to New Yorkand Washington following the devastatingattacks against the World Trade Centerand the Pentagon.

The George Washington and John F.Kennedy aircraft carriers left from Nor-folk, Va., early yesterday afternoon to pro-vide security against any further attackson those two cities.

In addition to the two aircraft carriers,the Navy also rushed five destroyers and

cruisers to the New York and Washington,D.C., area, said Navy officials. As theships steamed up the coastline, F-16 AirForce fighter jets from the Washington AirNational Guard buzzed over the Baltimore-Washington region and around New YorkCity to protect against any further air at-tacks, an Air Force spokesman said.

U.S. forces abroad were also put on thehighest state of alert. The U.S.S. Enter-prise carrier battle group, which wasscheduled to return home, was ordered toremain in the Persian Gulf for an indefi-nite period. The Enterprise could launch afirst strike of both cruise missiles andfighter jets throughout the region, if or-dered, at virtually a moment’s notice.

As a protective measure, other ships inthe U.S. military’s central command,which encompasses the Middle East, wereput out to sea.

Even as Defense Secretary DonaldRumsfeld declared that the Pentagon wasopen for business, the other side of thebuilding was still ablaze. The acrid smellof smoke hung in the briefing room andbillows of smoke continued to rise fromthe large gash cut through one side of thebuilding by a crashing jetliner. Mr. Rums-feld said at the Pentagon briefing thatfighter jets would continue patrolling the

skies over U.S. cities “as long as it is ap-propriate.”

Mr. Rumsfeld declined to discusswhether U.S. intelligence sources had de-termined who launched the attacks. Healso said that the U.S. wasn’t responsiblefor explosions that were heard just northof the airport in Kabul, Afghanistan, aboutseven hours after terrorists apparently at-tacked the World Trade Center and thePentagon.

Since the 1998 African embassy attacksand the ensuing U.S. cruise-missile at-tacks against Afghan training camps runby Osama bin Laden, the U.S. has tried touse United Nations sanctions to pressureAfghanistan’s Taliban rulers to turn Mr.bin Laden over to a U.S. court. The resolu-tions banned the Afghan national airlinesfrom flying abroad, demanded that coun-tries close Taliban offices overseas, andsought to impose an embargo on all armssales to the Taliban.

But U.S. officials have also told Talibanleaders for at least two years that the U.S.would hold them directly responsible forany future attacks carried out by Mr. binLaden. The cruise-missile attacks targetedMr. bin Laden directly, but the U.S. hassince sought to drive home the point thatnext time, the U.S. could attack the Tali-ban’s own centers of power.

By Lee GomesStaff Reporter of The Wall Street Journal

The intense heat of a jet fuel fire,rather than structural damage from theimpact of the airplanes, is probably whatled to the collapse of the two World TradeCenter buildings.

“The mechanical hit takes out a goodchunk of the building, but it will stillstand,” said Larry Anderson, an expert infire damage at Exponent Failure AnalysisAssociates, a Menlo Park, Calif., consult-ing operation. But when you spray thou-sands of gallons of fuel around, and thenlight it all at once, that softens the build-ing and leads to its collapse.”

Structural engineers who watched tele-vision reports of yesterday’s catastrophenoted that the World Trade Center with-stood for at least an hour following theimpact of the first plane. During that time,though, a fire was raging out of control onmultiple floors of the building. Jet fuel isextremely combustible, and produces firesthat can easily exceed 2,000 degrees Fahr-enheit, more than 500 degrees hotter thanother kinds of more routine office fires.

Steel, though, begins to weaken at 800degrees Fahrenheit, and comes close to

melting at around 1,500 degrees. Whilesteel in modern high rises is routinelycoated with fire proofing materials, thosematerials can’t protect the steel from pro-longed, intense heat.

“Once the physical damage to the build-ing was done, if the fire wasn’t extin-guished in a very short period of time, thelikelihood of collapse was 100%,” saidCharles Warren, chairman of EngineeringSystems Inc., of Aurora, Ill.

Rather than tilting over and falling,the towers appeared to “implode” on top ofthemselves, in much the same carefullycontrolled manner as buildings that aredemolished.

That’s most likely because once thesteel at the points of impact could nolonger support the floors above them,those floors rushed straight downward,creating an unstoppable force that wentall the way to the ground, said TomO’Donnell, of O’Donnell Consulting Engi-neers Inc. in Bethel Park, Pa.

Engineers said the fact that the towersstood so long after the impact of the air-planes was testimony to the engineeringskills of the buildings’ initial designers.The impact of the airplanes certainly dam-

aged, or even destroyed, the pillarsaround the perimeter of the structures,which are a key part of the buildings’ over-all support system.

But there was enough “redundancy” inthe design, in the form of support pillars atthe core of the structure, to pick up theload and keep the building from toppling,say engineers.

“It was a perfectly well-designed build-ing,” said Jim Wiethorn, of Haag Engi-neering Co. in Houston.

While the fire was likely to be the prin-cipal cause of the collapse, whatever dam-age was caused by the crashes themselvescertainly weakened the buildings andmade them more vulnerable, say engi-neers.

The consensus among engineers yester-day was that there is no way a buildingcould be economically designed to with-stand the sort of devastation involved inyesterday’s attacks. The worse calamitythat skyscrapers are designed to endureare massive hurricanes.

Similarly, said engineers, even themost advanced fire codes can’t protect astructure from the explosive power of afully loaded airplane ramming into itsside.

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Tips for keeping your mind on the road.

SM

Are you keeping

your mind on the road?

DISTRACTED

* * THE WALL STREET JOURNAL WEDNESDAY, SEPTEMBER 12, 2001 A15


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212448609/12/2001

P1JW255010-4-A01600-1---XA

By Michael M. PhillipsAnd Peter Wonacott


BEIJING—Treasury Secretary PaulO’Neill came to China ready to urge hishosts to abandon their fixed-exchange-rate system before they fall victim to thekind of financial turmoil that rocked theirEast Asian neighbors in the late 1990s.

He left yesterday persuaded that Chi-nese authorities already are planning toadopt a significantly more flexible cur-rency system—at their own pace.

“I’m convinced they’ll take whateveractions are appropriate, and it’s not some-thing we can really help them with,” Mr.O'Neill said after two days of wide-rangingmeetings with top Chinese officials.

For Mr. O’Neill, on his first visit toChina as Treasury secretary, appropriatemeans allowing the yuan to move freelyagainst other currencies sooner ratherthan later. That would mean jettisoningthe current policy of confining the yuan,also known as the renminbi, to a narrowband around 8.28 to the dollar. The Bushadministration considers it safer for Chinato give up on fixed rates when its economyis booming, as it is now, rather than do soout of desperation, when investors are los-ing faith and the yuan is under pressure.Thanks to robust consumer spending athome, China’s economy has shown re-markable immunity to a global slowdownand gross domestic product, the totalvalue of a nation’s goods and services—isexpected to rise more than 7% this year.

“China is doing fabulously well,” Mr.O'Neill said.

Beijing has been firm in insisting thatany steps toward a free exchange rate willbe taken gradually, though Chinese ana-lysts say the government is keen to mapout a course for liberalization. With Mr.O'Neill at his side, Chinese Finance Minis-ter Xiang Huaicheng described the cur-rent, highly controlled rate as a floatingsystem. A freely traded yuan is a “long-term goal,” said one official with theChina Foreign Exchange Trade Center inShanghai, which runs China’s official cur-rency exchange. “But right now, the gov-ernment needs a steady currency.”

There are signs, though, that Chineseofficialdom is searching for ways to widenaccess to foreign money and to exploremore flexible interest rates, reforms thatwould test the ability of Chinese banks to

manage currency flows. In Chinese bank-ing circles and state-sponsored thinktanks, there are discussions about the tran-sition needed to make the jump to a moreliberal currency regime.

Such a move wouldn’t be easy, economi-cally or politically. Chinese officials con-tinue to see the stable yuan as a way toprotect their economy from the whims ofdomestic depositors and global marketforces, as well as a foundation of socialstability. The fixed currency also helps at-tract a flood of investment to China, whereforeigners are putting $40 billion a yearinto plants, offices and companies.

Some others in the region share thatskepticism. It isn’t clear whether the yuanwould rise or fall if it were cut loose of thedollar. There lingers a fear around EastAsia that if the yuan fell sharply, Chinesecompanies would grab market share fromother regional manufacturers. That coulddeepen the woes of such trade-mindedcountries as South Korea or Singapore,whose overseas sales already are sufferingamid the economic slowdown in the U.S.

“If they abandon their stable currencysystem, it might exacerbate the crisis ofthis region,” said Yong-Duk Kim, SouthKorea’s deputy finance minister for inter-national affairs.

During the Asian financial crisis of thelate 1990s, China’s dedication to a fixedrate was considered a critical element inpreventing further upheaval around the re-gion. At the time, the Clinton administra-tion applauded China’s stance, fearing adevaluation would spark another round ofdepreciations among the battered EastAsian currencies. A cheaper currencywould have made China’s exports less ex-pensive abroad, taking business awayfrom other Asian manufacturers.

The U.S. argument today is that Chinamight not be so lucky next time. Mr.O’Neill thinks nations court financial disas-ter by tying their currencies to the dollar,yen or euro. Starting in Thailand in 1997,country after country found itself spend-ing precious foreign-exchange reserves todefend its announced exchange rate, asnervous investors yanked their money out.Inevitably, authorities couldn’t beat backmarket pessimism and currencies fell,leaving reserves depleted, companiesshort of cash and banks in tatters.

That experience with forced devalua-tions in South Korea, Russia and else-

where led the U.S. and its allies to adviseemerging-market nations to avoid ex-change systems linked weakly to other cur-rencies. Instead, they suggested that devel-oping countries choose between a floating-rate system and an exchange rate sofirmly cemented to a major currency as toseem permanent. Mr. O’Neill is of theschool that holds that floating rates are themost durable.

In China, analysts argue the country’scrippled banking system still isn’t ready toface the risks that accompany a flexible cur-rency. So far, Beijing has shied away fromdramatic currency reforms, instead slightlywidening the trading band, cleaning upbank balance sheets and preparing for theforeign competition banks will face afterChina joins the World Trade Organization.

“For China, it should be WTO entry first,trade and investment liberalization second,and then comes the freely convertible cur-rency,” says Lu Deming, a professor of eco-nomics at Shanghai’s Fudan University.

By a Wall Street Journal Staff Reporter

TORONTO—Rogers Wireless Commu-nications Inc. shareholders voted to rejectthe proposed acquisition of the company’spublicly held shares by Rogers Communi-cations Inc.

Rogers Communications, a cable, me-dia and communications concern, in Juneoffered to acquire 16% of the shares ofRogers Wireless, a wireless communica-tions concern, held by the public. RogersCommunications had offered 1.1 of itsshares for each publicly held share of Rog-ers Wireless. Rogers Communications con-trols about 51% of Rogers Wireless, whilea partnership controlled by AT&T Wire-less Services Inc., of Redmond, Wash.,holds about 33%.

“The proposed transaction will not pro-ceed,” Rogers Wireless and Rogers Com-munications said. Rogers Wireless “willgo forward as a public company and willcontinue to operate the business to maxi-mize value for all of its shareholders,” Rog-ers Communications President and ChiefExecutive Edward S. Rogers said.

By James BandlerStaff Reporter of The Wall Street Journal

Xerox Corp., in a major move to sheddebtandraisecash, said it reachedaprelim-inary agreement under which the GE Capi-tal unit of General Electric Co. will becomethe primary provider of equipment financ-ing for Xerox customers in the U.S.

The arrangement, which Xerox saidwas subject to negotiation of definitiveagreements and other conditions, eventu-ally will let the copier titan erase about $5billion in debt from its books.

Under the deal, GE Capital also is pro-viding about $1 billion in cash financing toXerox, secured by portions of Xerox’s cur-rent lease receivables in the U.S.

After nearly running out of cash lastyear, Xerox is scrambling to rebuild its bal-ance sheets and raise cash by selling as-sets, laying off thousands of workers andshedding unprofitable lines of business.

Providing financing for its customershad once been an important business forXerox. But the deterioration of its balancesheets spurred rating agencies to cut thecompany’s debt rating to junk-grade lev-els, raising the cost of borrowing.

Last year, Xerox said it planned to findthird parties to take over its customer-fi-nancing operation. It has since announcedthe sale of its financing arm covering theNordic region of Europe.

Xerox Chief Executive Anne Mulcahysaid the GE Capital deal would “trans-form” Xerox’s balance sheet, improve li-quidity and ensure that Xerox customerscontinue to receive high levels of financ-ing services and support. “For Xerox, thesignificance of these landmark agree-

ments cannot be overstated,” she said.Xerox canceled a conference call with

analysts scheduled for 10 a.m. EDT yester-day because of the terrorist attacks in NewYork City, Washington, D.C., and Pennsyl-vania. The company has facilities-manage-ment employees in the World Trade Center,but there was no word on the fate of thosepeople as of yesterday afternoon. The com-pany also took the precautionary step ofclosing the Xerox Tower in Rochester, N.Y.,though it kept open its headquarters inStamford, Conn.

A spokesman said Xerox has total debtof about $16 billion. About 65% of thatamount is related to financing. The dealwith General Electric will affect financingin the U.S. only—about $5 billion in vendorfinancing, which will roll off Xerox’s bal-ance sheets as leases expire.

The company said it finished the sec-ond quarter with about $2.2 billion in cashon hand and had reduced its net debt levelby about $700 million.

Xerox will move nearly all its U.S. cus-tomer administration operations into anew joint venture with GE Capital VendorFinancial Services. GE Capital will own81% of the venture, while Xerox will ownthe remaining 19%. The new entity, to becalled Xerox Capital Services LLC, will bejointly managed by Xerox and GE Capital,and will be based in Rochester, N.Y. Thejoint venture will handle such operationsas order processing, credit approval, bill-ing and collections.

Xerox expects about 2,400 Xerox em-ployees in offices in Rochester, Chicago,Dallas and St. Petersburg, Fla., to betransferred to the venture on Jan. 2, 2002.

Treasury Proposes Rule ChangesTo Combat Money Laundering

Rogers Wireless HoldersReject Purchase of SharesBy the Parent Company

By a Wall Street Journal Staff Reporter

WASHINGTON—Contradicting a key as-pect of the administration’s policy on embry-onic stem-cell research, a National Academyof Sciences panel said new stem-cell lineswill be needed to ensure that the research isable to fulfill its promise.

The panel’s report said new lines, or self-perpetuating colonies of cells, will be neces-sary because many of the current cell lineslikely will develop genetic mutations overtime and could be contaminated by the ani-mal cells and serum used to help them grow.

The report is likely to stir additional criti-cism of President Bush’s stem-cell policy.That policy, announced Aug. 9, restricts fed-eral dollars to research conducted on stem-cell lines that were created by that date. Thepanel’s report also endorsed what is knownas “therapeutic” cloning, saying that itwould reduce the possibility that tissue trans-planted into patients would be rejected. TheHouse recently banned all types of cloning,including therapeutic cloning. PresidentBush also opposes it.

“We … believe that new embryonic stem-cell lines will need to be developed in thelong run to replace existing lines that be-come compromised by age, and to addressconcerns about culture with animal cells andserum that could result in health risks forhumans,” said Bert Vogelstein, professor ofoncology and pathology at Johns HopkinsSchool of Medicine in Baltimore. The reportwas written by the NAS’s National ResearchCouncil and Institute of Medicine. They pro-vide advice to Congress on scientific issues.

More Stem-Cell LinesNeed to Be Generated,Panel of Scientists Says

Xerox Sets Financing Pact With GE UnitIn Bid to Erase About $5 Billion of Debt

Beijing Plans Currency Reform—at Its Own Pace

By David S. CloudStaff Reporter of The Wall Street Journal

WASHINGTON—After months of re-viewing the Clinton-era money-launderingcrackdown, President Bush’s Treasury De-partment has completed a set of revisionsthat would slightly ease rules in one areaand tighten them in another.

Specifically, the proposed regulationsaim to reduce the number of currencytransactions that banks report to the gov-ernment. At the same time, the Treasurywants to extend the large cash-transactionreporting requirements that already applyto banks to securities dealers and casinos.

The main goal, said a senior adminis-tration official familiar with the plan, is toreduce the volume of paperwork that ap-pears to yield limited benefit while increas-ing the number of prosecutions.

The most controversial aspect of theplan is likely to be the draft regula-tions—to be issued by January—thatwould require securities dealers and casi-nos to report large cash transactions. Thesecurities industry has successfullyblocked previous efforts to bring it undermoney-laundering reporting rules.

The official said there would be a six-month comment period and that the admin-istration plans to consult closely with bro-kers before making the new regulationsfinal. “To the extent we can take a littlemore time to make sure they are reportingtransactions of value, then that’s good,”the official said.

The Bush administration delayed issu-ing the 50-page report, required annuallyby statute, for several months because theTreasury Department was conducting areview of federal money-laundering ef-forts under orders from Treasury Secre-

tary Paul O’Neill. The Bush administra-tion plans to focus more than the Clintonadministration did on prosecuting large op-erations, the official said.

“We’re going to concentrate on the ma-jor money-laundering centers and go afterthe corrupt lawyers, bankers and accoun-tants” that facilitate money laundering,the official said. The strategy calls for cre-ating two federal multiagency task forces,one in Chicago and one in San Francisco.Four such task forces already exist. Theofficial said the four had concentrated toomuch on gathering intelligence during theClinton years and not enough on bringingprosecutions.

In order to reduce what Bush officialssay is a flood of unnecessary data, theofficial said the Treasury will be pushingbanks to reduce the number of currencytransactions they report to law enforce-ment. Current law requires any cash trans-action of $10,000 or above to be reported toregulators, but there are exemptions forcertain regular types of transactions.Rather than changing the official regula-tions, the administration will push banksto use the exemptions more frequently.

Officials believe banks tend not to usethe exemptions in part because they relyon computer programs to generate the re-ports. More than 12 million such currency-transaction reports are filed every year,but the official said 30% to 40% are filedunnecessarily and don’t generate usefulinformation for authorities.

Mr. O’Neill also has criticized the lackof precise measurement of the effective-ness of money-laundering prosecutions.As part of the new strategy, the Treasurywill try to develop better statistical mea-sures of prosecutions.

Postal Service to RaiseCost of Mailing LetterBy 3 Cents Next Year

WASHINGTON (AP)—The cost of mail-ing a first-class letter will go up next year,jumping three cents to 37 cents.

Citing a looming $1.65 billion deficit, theU.S. Postal Service announced it will seekrate increases averaging about 9%, includingthe increase for personal letters.

Robert F. Rider, chairman of the agen-cy’s board of governors, said the decision bythe governing board was unanimous. Thecurrent 34-cent mail rate took effect in Janu-ary, along with increases in many otherclasses of mail. Another increase in somerates kicked in July 1. Nonetheless, risingcosts for fuel, labor and health care threatenmore red ink for the agency, officials said.The post office is in labor negotiations withunions representing about 700,000 workers.

Earlier, managers ordered a freeze onnew construction and cut back on overtimeand other costs, trimming the Postal Ser-vice’s deficit from $3 billion to an estimated$1.65 billion. A cut in headquarters manage-rial staff of 800 positions was announced lastweek with an additional 500 positions sched-uled to be cut in field offices. The increase infirst-class stamps will be accompanied byincreases in other types of mail as well:First-class, up 8.2%; Express Mail, 9.7%; Pri-ority Mail, 13.5%; periodicals, 10%; advertis-ing mail, 7.3%, and packages, 8.9%.

The U.S. Postal Service, although a partof the federal government, doesn’t receivetax money for its operations. It is required topay its own expenses from fees charged formoving the mail and to break even over time.Postmaster General Jack Potter said thatbecause of the continuing financial prob-lems, the construction freeze will remain inplace and more cuts are being sought.

3US2122

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212448809/12/2001

P1JW255012-2-A01800-1---XA

We Beat Hitler.We Can VanquishThis Foe, Too.

By Daniel HenningerI saw the airliner at the instant it hit

the north tower of the World Trade Center.A little later I saw the flames burst out ofthe south tower when the second airlinerhit it. I saw people fall from the top of theWorld Trade Center. I saw the south towerfall down. A little later, I saw the northtower fall down. I have, in the past severalhours, looked into lower Manhattan, andeach time, where the World Trade Centerstood, there is absolutely nothing.

I think that in the next few days I amgoing to wish that I had not seen any ofthis. There is no benefit in being able towatch two 108-story office buildings fall tothe ground after two airliners have beenforced to fly into them. It all seems verycompelling now, and when you are in thisbusiness and you are on the scene, it isyour job to provide an account. So this isjust such an account, because there issomething about us that demands that weprovide this detail for the record.

For some of us who commute into NewYork City from New Jersey there is thedelight each morning of traveling by ferryboat from Hoboken train terminal to lowerManhattan. The delight is in the fact thatfrom the ferry’s top deck one is able, eachmorning, to see the Statue of Liberty, thatgreat green statue. Morning after morn-ing, for many of us, it remains a freshsight and especially so yesterday morn-ing, against a sky of the purest blue and afaint fall breeze.

I had come into town about 15 minutesearlier than usual, because I was going tobuy a new cummerbund at Brooks Broth-ers for my tuxedo, to wear at my son’sweekend wedding in Madera, Calif.Brooks Brothers is just across the streetfrom the World Trade Center.

There is a small coffee shop, with verygood cinnamon-raisin croissants, acrossfrom American Express in the northerntower of the World Financial Center. DowJones is in the WFC’s southern tower, andthe whole complex sits in the shadow ofthe World Trade Center. In fact, you haveno idea, unless you had ever seen it, justhow extraordinarily beautiful this com-plex of buildings was on a dark, clearnight looked at from the Hoboken ferry inthe middle of the Hudson River; all thebuildings would be lit up, and the fat,domed World Financial Center’s build-ings, designed by Cesar Pelli, stood in per-fect proportion to the two magnificent,high silver towers. I cannot believe I willnot see it again.

As I walked toward the coffee shop, atabout 8:45, I glanced upward, and thendownward. Quicker than these words canconvey, my mind said: I think I just sawthe wing of an airliner below the top of theTrade Center. Then the loud sound. Ithought, my God, it hit it. But when Ilooked up, there was no plane. There wasa wide gash across the north face of thetower, very high up, and gray smoke wasbillowing out of the gash, and there was alarge fire inside the building. There werelittle, shining particles floating down fromthe building. I never saw the plane, or afuselage or a wing. The plane seemed tohave vaporized.

Way up there, the building just burned.

There was a lot of smoke, but for a time,despite the horrifying tragedy, it somehowseemed like a containable event. Thesmoke was billowing upward and aboutthree-fourths of the building looked fine. Itseemed that the people below the gashwould be able to descend. For awhile, thegathered crowd on the ground mainlywatched amazed as the Trade Centertower burned from this one awful, openwound. Then the back of the other towerblew out. Then hell was in Manhattan.

A guy came running toward us whosaid another plane had crashed into theother tower, and now the sky was fillingwith a massive wall of black smoke and

orange flames. Staring upward at the twomajestic buildings, one had helplessthoughts about a helpless situation. It wasso high up, there was no way to put wateron these flames; it was just going to keepburning. Maybe it would just burn out thetop of the building.

For awhile, aside from the flames andsmoke, it was oddly uneventful. Some-times windows would fall off the buildingand float down; sometimes a piece ofsmoking debris would arc downward.Then people started jumping off.

They were all so far away, but you al-ways knew when a person was coming offthe building because they all came downthe same way—spread-eagled, turning,falling fast, and disappearing behind theWoolworth Building. It was awful, andone’s head filled, irresistably, with awfulthoughts. Did they jump rather than beburned? Did the fire force them off thebuilding? Just an hour before, they wereprobably on the ground, like the rest of us.I was stooping down near a trimmed greenhedge near Stuyvesant High School, and Ikept hearing a cricket chirp in the hedge,and occasionally small birds would fly uptoward the blue.

Then the first building fell down. Youhave probably seen this over and over ontelevision. I heard on TV later that a lot ofpeople got out of the towers in an orderlyevacuation because someone told them thebuildings couldn’t fall down. I neverthought those towers would fall down. Butwhen it fell, it fell not merely with thun-der, but all the way down, as rubble. Itwas so quickly nothing.

Now we were all running away, hard,because the smoke, about 40 stories high,was racing outward, toward us and all oflower Manhattan. My editorial-page col-league Jason Riley told me later that hegot caught in the first collapse’s fallout.He couldn’t run faster than the smoke andcrawled under a van to avoid the debris.But he started choking and his eyes wereburning and the air had turned black. Hesaid he thought the van would move andkill him. He banged on the van’s window

and they let him in. Then they opened thedoor to let two other guys in, and the vanstarted filling with floating debris andsmoke. He got out and cops were tellingpeople to “make for the water.” Jasonheaded toward the Brooklyn Bridge, andmade it across.

I went north on the West Side Highway,with thousands of scared people. There issomething called the Children’s Play-ground along there, and I went in and satdown at a picnic table to watch the towersagain. The northern tower was still burn-ing from its original wound; in fact, forawhile the burning seemed to stop in thefirst tower, but started again after theother building fell down. I decided that ifthe other tower had collapsed, then thisone would too, and I was going to watch itfall.

I was going to bear witness. Let’s be alittle more precise about this statement. Iloved the World Trade Center towers. Ihave worked in their shadow for almost 25years. I came to see them the way I sawthe Statue of Liberty. At night, in the fall,as I noted earlier, when they and all therest of Manhattan’s buildings were alightagainst a dark sky, the World Trade Cen-ter’s towers were just joyous. Theyshouted out on behalf of everyone in thiscity, where everyone seems to take pridein working long, hard hours. No matterwhat, those long, hard silver towers werealways there. Way up there.

Of course it fell. It was the most awful,humbling, disgusting sight. All of a sud-den, it was just a 100-floor shaft of smoke.As it fell, as it was hitting the ground, thesmoke and crap flew upward, I guessalong the sides still standing, and thesmoke arced away from the building in aseries of neat, repulsively identicalplumes. I looked at the center of the build-ing and all I could see were a few scragglyblack twisted girders pointing upward.Then they fell and it was all gone.

We all had to start running again be-cause the smoke was so huge and terrify-ing, and it was moving very fast. It wascovering all of lower Manhattan. Along theway, a fellow told me that an airliner hadcrashed into the Pentagon.

It was impossible to think. It was per-fectly obvious that identifiable MiddleEast terrorists had done all this and theUnited States and its new president wouldbe obliged to respond on some very largescale. For all that, the depth of the evil andnihilism was numbing to behold, though intruth the beholding was over. The peoplein the airliners, the people coming off thetop floors of the buildings, the bodies atthe bottom beneath the rubble, all thesesouls evaporated in one clear morning inSeptember.

As I walked north along the West SideHighway, empty now but for a torrent ofpolice cars and fire engines from distantNew York suburbs, racing southward tohelp, I kept turning around and turningaround to look, and look again. I kept look-ing up at the sky, above the famous oldWoolworth Building, where the WorldTrade Center stood, its two side-by-sidetowers, so high against the sky. I alwayssaw the same thing, which was nothing.

Mr. Henninger is deputy editor of theeditorial page of the Journal.

By Mark HelprinAmerica, it is said, is slow to awaken,

and indeed it is, but once America stirs,its resolution can be matchless and its fe-rocity a stunning surprise.

The enemy we face today, though bar-baric and ingenious, is hardly comparableto the masters of the Third Reich, whosedoubts about our ability to persevere wechose to dissuade in a Berlin that we hadreduced to rubble. Nor is he comparableto the commanders of the Japanese Em-pire, whose doubts about our ability topersevere we chose to dissuade in a Tokyowe had reduced to rubble. Nor to the So-viet Empire that we faced down patientlyover half a century, nor to the great Brit-ish Empire from which we broke free in along and taxing struggle that affords abetter picture of our kith and kin than anythe world may have today of who we areand of what we are capable.

And today’s enemy, though he is notmorally developed enough to comprehendthe difference between civilians and com-batants, is neither faceless nor without aplace in which we can address him. If he

is Osama bin Laden, he lives in Afghani-stan, and his hosts, the Taliban, bearresponsibility for sheltering him; if he isSaddam Hussein, he lives in Baghdad; ifhe is Yasser Arafat, he lives in Gaza; andso on. Our problem is not his anonymitybut that we have refused the precisewarnings, delivered over more than a de-cade, of those who understood the natureof what was coming—and of what is yetto come, which will undoubtedly beworse.

i i iThe first salvos of any war are seldom

the most destructive. Consider that in thisrecent outrage the damage was done bythe combined explosive power of threecrashed civilian airliners. As the initialshock wears off it will be obvious that thiswas a demonstration shot intended to ex-tract political concessions and surrender,a call to fix our attention on the prospectof a nuclear detonation or a chemical orbiological attack, both of which would ex-ceed what happened yesterday by severalorders of magnitude.

It will get worse, but appeasement willmake it no better. That we have promisedretaliation for decades and then alwaysdrawn back, hoping that we could getthrough if we simply did not provoke theenemy, is appeasement, and it must bequite clear by now even to those who per-petually appease that appeasement simplydoes not work. Therefore, what must bedone? Above all, we must make no promiseof retaliation that is not honored; in this wehave erred too many times. It is a biparti-san failing and it should never be repeated.

i i iLet this spectacular act of terrorism

be the decisive repudiation of the mis-taken assumptions that conventional war-fare is a thing of the past, that there is asafe window in which we can cut forcestructure while investing in the revolu-tion in military affairs, that bases andinfrastructure abroad have become un-necessary, that the day of the infantry-man is dead, and, most importantly, thatslighting military expenditure and pre-paredness is anything but an invitation todeath and defeat.

Short of a major rebuilding, we cannotnow inflict upon Saddam Hussein orOsama bin Laden the great and instanta-neous shock with which they should beafflicted. That requires not surgical strikesby aircraft based in the United States, butexpeditionary forces with extravagant bas-ing and equipment. It requires not 10 air-craft carrier battle groups but, to do itright and when and where needed, 20. Itrequires not only all the infantry divisions,transport, and air wings that we have need-lessly given up in the last decade, butmany more. It requires special operationsforces not of 35,000, but of 100,000.

For the challenge is asymmetrical. Ter-rorist camps must be raided and de-stroyed, and their reconstitution continu-ally repressed. Intelligence gathering ofall types must be greatly augmented, forby its nature it can never be sufficient tothe task, so we must build it and spendupon it until it hurts. The nuclear weap-ons programs, depots, and infrastructureof what Madeleine Albright so delicatelyused to call “states of concern” must, in amost un-Albrightian phrase, be de-stroyed. As they are scattered around theglobe, it cannot be easy. Security andcivil defense at home and at Americanfacilities overseas must be strengthenedto the point where we are able to fightwith due diligence in this war that hasbeen brought to us now so vividly by analien civilization that seeks our destruc-tion.

i i iThe course of such a war will bring us

greater suffering than it has brought todate, and if we are to fight it as we mustwe will have less in material things. Butif, as we have so many times before, werise to the occasion, we will not enjoymerely the illusions of safety, victory, andhonor, but those things themselves. In ourhistory it is clear that never have theycome cheap and often they have comelate, but always, in the end, they come inflood, and always in the end, the decisionis ours.

Mr. Helprin, a novelist, is a contributingeditor of the Journal.

Terrorists may have thought theywere striking at the heart of selfishWestern capitalism in Manhattan’s fi-nancial district yesterday. But whatthey unleashed instead was a show ofdemocratic civility and resilience.

Amid the horror of airplane attacksand buildings collapsing, fighter jetspatrolling overhead as if at war and theawful uncertainty of what might hap-pen next, the news is the panic thatdidn’t happen. Instead New Yorkers re-vealed their courage and kept theircool. The supposedly ungovernablecity showed it could govern itself underthe most terrifying pressure.

Yes, the National Guard was calledin, but, as Mayor Rudy Giulianipointed out, to relieve police and fire-men not to keep public order. The pub-lic kept its own order. Within minutesof the first attack, the ambulances andrelief cars were streaming downtownunimpeded. The triage ranks quicklyformed near Battery Park and thou-sands of people lined up at stations allover the city to wait two or three hoursto donate blood.

“It’s a crisis. You must help.There’s nothing else to do,” 19-year-old donor Jessica McBlath told the As-sociated Press. Doctors, nurses, andcops streamed in from all over theNortheast to help. One Modell’s sport-ing goods store became a makeshiftrefugee center, with T-shirts passedout to help victims breathe through thedust from the World Trade Center col-lapse. A police lieutenant was seen im-ploring people to leave the second ofthe trade towers as fast as possible. Hesaved many, but apparently not him-self. Edward Cardinal Egan made itdown to St. Vincent’s, the hospital inthe heart of the trauma, to administerlast rites.

This public civility is all the more re-markable when you consider the ru-mors that were rampant yesterday.Walking through Manhattan, our owncell-phone network not working, weheard many frightening stories thatturned out not to be true: The AT&Tbuilding in Manhattan, the State De-partment and Capitol Hill had all been

car bombed; other hijacked planeswere still in the air heading who knewwhere?

Our information society is supposedto yield us instant and credible news.We pride ourselves on knowing every-thing right now. But here was a pre-modern scene, with rumors of war,crowds looking through windows at ap-pliance-store TVs, and nobody sureabout anything. Panic at such a mo-ment would have been easy, indeed in-evitable if you believe that prosperityhas made Americans soft and selfish.But while we saw many tears of worryand sadness, we saw no flights of fearor rage. Reuters reports that construc-tion workers at a site on Broadway fora new Toys ‘R Us store prompted awave of applause from the streetswhen they put up signs saying “Prayfor families & victims” and “God BlessAmerica.”

Something similar could be said, wethink, of our political leadership.Mayor Giuliani not only urged calm,he showed it. His press conference yes-terday was the essence of democraticgrace under pressure, focusing not onrevenge but on rescue. His message,like President Bush’s words, is that thebest answer to terrorism is to showthat democratic values endure even ina crisis.

For that reason, the most importantfact about Mr. Bush’s TV address lastnight wasn’t what he said but where hesaid it. It was symbolically importantfor Americans to see that their Presi-dent had returned to Washington to de-liver his talk from the reassuring back-drop of the Oval Office. Terrorists needto know Presidents can’t be frightenedout of the White House for long, if atall.

This is what makes yesterday’s an-ecdotes from New York and Washing-ton more than just individual acts ofcompassion or heroism. They are all ofthat. But above all these acts of civilityare validations of our own democraticcivilization, what we sometimes callWestern civilization. This is what theterrorists hope to steal from us, andyesterday Americans showed that theterrorists had failed.

the wall street journal.Peter R. Kann

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Awakening to a Nightmare

Civility Amid Chaos

A Terrorist Pearl Harbor

Our problem is notour enemy’s anonymitybut that we have refusedthe precise warnings, deliv-ered over more than a de-cade, of those who under-stood the nature of whatwas coming

By Mary O’GradyI arrived at work early yesterday—not

quite 8 a.m.—eager to write before theoffice started humming. The editorialpage of the Journal is on the ninth floor ofthe World Financial Center, and my win-dow looks out on the World Trade Center.Early morning is the perfect time to work,and the only other person in our officeswas the new editorial page editor, PaulGigot, whom I greeted by the water cooler.

A few minutes later, Paul passed myoffice on his way out, and we both com-mented favorably on the beautifulweather. Some minutes later, although Ihave no idea how long, the building shookas if from a sonic boom. My experience inthe 1994 Northridge earthquake made mesupersensitive to shaking buildings, and Iimmediately swung toward the window tosee a large piece of debris plummetingfrom the sky. There were thousands ofsheets of paper raining down from above.Looking up, my eyes met a gaping hole inthe top of the World Trade Center buildingon the left. Black smoke and flamespoured out the side and I thought aboutthe poor souls who had been there justseconds before. The sound I heard immedi-ately before the explosion made me thinkthat a plane had been involved, but therewas no fuselage to be seen.

I raced down to Paul’s office wonderingif he had returned, but he was gone. I wasalone. Sprinting back to my office andshaking, I grabbed my jacket and purseand took off for the elevators. Downstairs,building security urged me to remaincalm: Whatever it was had not hit ourbuilding. We were OK.

Just then the Journal’s foreign editor,John Bussey, came limping along in thelobby. He said he had just pulled a musclerunning in the street. “Walk with me,” hesaid as he headed for his office on theninth floor. Before I knew it, I was back inmy office, staring out the window at thefire above. Some of the fallen debris wason fire in an outdoor parking lot below mywindow. People were streaming out of theWorld Trade Center now, running just asthey do in all the horror movies featuringan urban Armageddon.

Despite the fact that the fire seemedcontained in the top of one tower, therewas no way to get back to work. Two othercolleagues had come in, and one kindlybrought me some water. We all kept look-ing out the window. I phoned my parentsto tell them I was OK. They had not heardthe news. My second call went to a brotherin New Hampshire who works for a smalllocal newspaper. My voice quivered andmy heart was racing, but I told him that Iwas fine. Not two minutes into that conver-sation, a second, much louder boom shookmy offices. I cursed loudly, shouted “I’mgetting outta here,” threw down the phoneand ran for the exit. Only two elevators

were working. “C’mon elevator.” I said aprayer, then another.

An elevator arrived. It was packed withpeople, who said, “Hurry up, hurry,” asthe door opened. One guy pounded on thedoor-close button; someone saw me shak-ing and put a hand on my shoulder. No onesaid anything but somehow we were qui-etly sharing our terror. When we hit thelobby, I ran for the escalator and out to-ward the river. Many people were runningnorth toward Stuyvestant High School. Iheaded south along the river, perhaps be-cause most of the crowd was headingnorth. By now the river esplanade wasteeming and there were many witnesseswho saw the second attack. “It was a pas-senger plane,” one man told me, “a 727.” Agood number of people leaned against therailing by the river and simply stared upat the burning towers. Wailing sirensfilled the air.

My heart was racing now and I walkedbriskly along the river, past the HolocaustMuseum, although one woman warned theexodus that that would be the worst placeto be. I traversed through crowds in Bat-tery Park, cut in and out of the crowds onWater Street, followed police orders togive a wide berth to Beekman Hospital.Along the way I saw men and women weep-ing and cursing. Many people simply hadtheir heads down. Shock, sadness and fearwere everywhere.

I wanted to get to Brooklyn but walkingover the bridge had risk. What if it becamea target? Several times along WaterStreet, I wondered if I should go back overto our offices; the worst had to be over.Something inside told me to take thebridge. I entered in the car lane, eventhough there was traffic going by, andsoon began running as fast as I could inmy high-heel sandals. Some of the walkerswere begging for rides. One group gotpicked up, and when the last guy, in a suitand tie, couldn't fit in the car, he laidspread-eagle on the hood and the car tookoff with him.

About halfway across the bridge, a loudcry went up from the crowd. It was, I wassure, a plane heading right for us. Butwhen I turned around, what I saw was theimplosion of one of the towers. Pedestri-ans on the bridge stopped in their tracks. Ikept walking but had to dodge many peo-ple who were simply frozen, mouths agapeas they watched the dust and smoke rise. Irushed past them, past a woman walkingalone with her head down, mumbling. All Iheard was “Dear Lord.” I asked her if shewas all right. She said yes, she was justpraying for those poor people. I wanted tocry too but I dared not start.

Now I felt in a race against time, surethat something else was yet to come. As Ireached the end of the bridge, soot andash began to fall from the sky. Everyonehad some item of clothing over their

mouths so they could breathe more easily.At least I had made it to Brooklyn.

Writing this hasn’t been easy. I’m stilltrembling as the news reports stream in,and we learn that it is more horrific thananyone could have imagined. I’ve nowheard that the window of my office wasblown in after I left. There’s glass anddust and ash, all over the space where I,and others, work. But it’s quiet here whereI write, though I know that peace is a longway off. A terrible evil has been unleashedagainst our country. To face what is aheadwe will need courage. Would that it allwere a nightmare, and I were about towake up on a gentle September morning.

Ms. O’Grady edits the Journal's Amer-icas column.

I Saw It All. Then I Saw Nothing.

Of course it fell. Itwas the most awful,humbling, disgusting sight.All of a sudden, it was justa 100-floor shaft of smoke.

The world is a different place afterthe massive terrorist attacks on theUnited States yesterday, much as itwas after the bombing of Pearl Harbornearly 60 years ago; a new kind of warhas been declared on the world’s democ-racies. Just as Munich led to World WarII, so attempts to buy peace in the Mid-dle East are surely behind this attack.

The scope of the terror assaultwould have been unimaginable beforeyesterday. Multiple suicide squads con-ducting multiple airline hijackings,taking control of planes and divingthem and their passengers into highprofile targets in New York and Wash-ington. The nation’s airports closeddown, movement in and out of Manhat-tan impossible. Uncounted number ofinnocent civilians killed, grief formany American families, anxiety foreven more and almost universal incon-venience.

For the dead we can only grieve,and repairing the physical damagewill take many years. But evenwithin sight of the World Trade Cen-ter, life went on, abeit fitfully, yester-day. The airlines will fly again, albeitnot quite as before, and new build-ings will be built. Modern industrialsociety, for all the talk of its vulnera-bilities, has a certain resilience. Re-turning to our normal way of life asquickly and as completely as possibleis one part of the answer to the mon-sters who plan and perpetrate suchghastly events.

President Bush rightly promises topursue and punish those responsible.The pursuit of those directly implicatedin the attacks is a high calling, as re-cent convictions of African embassybombers demonstrate. But we deludeourselves if we believe we are threat-ened by some band of mavericks, nomatter how well organized and fi-nanced. Acts of this magnitude canonly be done by, or at least with the con-nivance of, states. The key sentence inMr. Bush’s speech last night was there-fore his promise to “make no distinc-tion between the terrorists who commit-ted these acts and those who harborthem.’’

We are entitled to assume that thisis the work of the usual suspects—Sad-dam Hussein, the Taliban, the Iranianmullahs and other dictators who in-voke Muslim fundamentalism to jus-tify their fundamentally illegitimatepower. The first victims of this aretheir own populations, cemented intobackwardness and cut off from moder-nity. Another is the Muslim faith itself,richer and more humane than the repu-tation won by the fanatics who servethe cynical despots.

The immediate focus of the terror-ist drive is of course Israel. But as yes-terday's events again show, Israelserves as a proxy for much deepergrievances against the United Statesand the civilization it represents. Anundercurrent (or more) of resentmentat Western civilization runs through

the chanceries and bazaars of the Arabworld, as well as a fear of what democ-racy might mean for the power of localrulers.

We were glad to see that some Arableaders denounced the attacks yester-day. Egypt’s Hosni Mubarak called it“horrible and unimaginable.’’ EvenYasser Arafat sent his condolences.But these leaders need to understandthat their societies carefully nurtureand inculate resentments and hatredsagainst America and the non-Arabworld.

In its current issue, Commentarymagazine carries an article “How Sui-cide Bombers Are Made,” by the Ital-ian journalist Fiamma Nirenstein.Items: Al Ahram, the leading govern-ment-sponsored newspaper in Egypt,carries a series about how Jews use theblood of Gentiles in matzah. In Gazaand the West Bank, school texts praisea young man who becomes a shahid, amartyr for Palestine and Islam. A hitsong in Palestine and Egypt is entitled“I hate Israel.” These popular attitudesand these state policies, not some iso-lated madman, are the threat we sawcome to fruition yesterday. In Gaza,the crowds rejoiced.

The American approach to this,and even more so the European one,has been to be “even-handed” be-tween the terrorists and their victims,between our friends and our enemies.Faced with a new intifada, George W.Bush reneged on his promise to recog-nize Jerusalem as the capital of Israel.President Clinton begged YasserArafat to continue a photo-op “peaceprocess” and allowed our defense ca-pabilities to decline. George H.W.Bush stopped American tanks in thedesert, leaving Saddam to pursue hisevil designs in Baghdad. Little won-der that the fanatics conclude thatAmerica can be intimidated by a ter-rorist spectacle.

In this they have certainly miscalcu-lated, just as Tojo’s war planners mis-calculated in believing Pearl Harborwould leave America with no taste forwar. The upshot of this is likely to be aserious turn on a number of fronts. Intel-ligence, for example; how could the CIAand FBI have no advance indication ofso large an event? Homeland defense,for another; can anyone now continueto doubt that someday people like thosewho conducted yesterday's events willhave missiles that can threaten U.S. cit-ies at 30 minutes warnings?

What most needs to be recognized,though, is that the terrorism has a polit-ical purpose. It is intended to intimi-date America into standing aside hu-miliated while the Arab despots and fa-natics destroy Israel and therebyprove that freedom and democracy arenot after all the wave of the future. Wecan honor yesterday’s dead by rallyingour diplomatic, moral, financial and asnecessary military resources to insurethat that purpose is convincingly de-feated.

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Pepper . . . and Salt

THE WALL STREET JOURNAL

It’s not every day in Manhattan thatyou look up and are relieved to see U.S.fighter jets flying combat patrol over thecity.

The air patrol may have come too lateto do much good, but watching from ourroof on the Lower East Side, my neighborsand I agreed it was damn comforting toknow the skies were back under control. Iwas in bed, contemplating a column on thewaste and folly of the Microsoft prosecu-tion, when the first explosion rippled by. Iwrote it off to construction down the block,

where a building had just been clearedand a new one was expected to go up. Thesecond explosion came a bit later, followedby screams from the balcony of the build-ing behind me. I heard a woman’s voicesay, “A plane just crashed into the WorldTrade Center.”

Wow. When I turned on CNN, I wasdumbstruck to learn that two planes hadsmacked into the towers. They had video ofthe second one—a twin-engine passengerjet. Unbelievable.

I went to the roof where my neighborswere already gathered. One of them, astructural engineer, was explaining aboutrated steel, designed to allow a couple ofhours to evacuate in case of fire. We sawflames three or four stories tall licking outfrom the sides of the north tower. Longribbons of silver—my neighbor said it wasmelting aluminum—dangled from thesides. What might have been paper or sec-tions of wallboard wafted in the smoky

breeze around the towers.The day was brilliant, cloudless, the

kind that Manhattan looks especially ma-jestic in. I went back downstairs and wasworking the email when the first towercollapsed, but I knew instantly what washappening—the thump, the rumble, thegasps and shrieks from neighbors ontheir roofs and balconies and fire es-capes.

Back to the roof. Those who live in thiscity, and especially those who get aroundby foot, know the towers are indispensablepoints of reference. Now one was gone andthe second was going.

I pointed to a bulge in the verticalsteel cornice well below the flames andblackened hole where the plane hadsmashed through. We realized the broad-cast antenna would go first, playinghavoc with TV and radio traffic and cellphones. Would pancaking of the roof andtop floors take down the entire structure?During the trial over the bombing of eightyears ago, it came out that the towershad been designed to withstand a directhit by a 727.

When it came, it happened in slow mo-tion, beginning as we expected with theantenna. Then it was gone, engulfed insmoke and dust.

I went back downstairs and began field-ing phone calls. A friend reported that anacquaintance in the building next to thetrade center had gotten out safely and nowwas walking home sans purse and shoes.Another friend in Tribeca called to wonderif she should grab her kids and head up-town. She said she heard from a neighborthat he saw people jumping from the burn-ing towers before they fell.

Is it safe to stay in lower Manhattan?Who knew? I ducked out to the ATM and

loaded up with cash. So far, no mob. At thegrocery store, a few people are buyingbottled water, and I noticed as I movedthrough the checkout that a crowd wasstarting to build.

Now I’m back home, watching the presi-dent on TV, saying thanks to those in-volved in the rescue efforts and assuringus that the government and military lead-ership are functioning. Sirens are a contin-uous backdrop in the streets. There are

hundreds of people trudging en masse,like a World War Two exodus, because thesubways are out of action. Overheadcomes the roar of an F-16 streaking overmy neighborhood. The war—some kind ofwar—has begun.

New Yorkers have been expecting thisfor a while, though many of us were think-ing in terms of poison gas. All it takes ismoney and organization to commit de-struction on a cinematic scale. The worlddoesn’t seem short of people with a grandi-ose sense of their own grievances. An intel-ligence official once told me that most sui-cide bombers are unwilling emissaries.Family members are held hostage andthreatened with torture and death to givethese beloved sons added incentive to dotheir duty.

But we don’t stop living in cities orflying in airplanes or making politicalchoices in the world just because we feel

vulnerable. The urge to flatten some for-eigners is, of course, strong on a day likeyesterday. CNN briefly flashed video ofjubilant Palestinians celebrating amid thesqualor of their microstate, but evidentlythought better of running it more thanonce.

The best way to fight this war is toclean up the mess, go about our businessand get back to normal. In the long run, asHenry Kissinger said in one interview,this was an integrated attack and deservesan integrated response. That means a re-sponse in which policy aims carefullyworked out and carefully pursued.

Certainly airlines might want to re-think their traditionally passive strategyonce a hijacker is aboard. Nor is thereanything to gain by slackening our sup-port of other democratic countries fightingthis battle. Coordinated intelligence is themagic bullet against terrorist attacks be-fore they get started.

Let us also acknowledge that ven-geance may not be an attractive moralstand, but it can be good policy. Suicidalfanatics are not people on whom deter-rence works. But the folks behind themare rational and respond to incentives.

Dictators and terrorist chiefs are notthe willing victims of the wars they prose-cute. They like their lives, their power andtheir ambitions. The president’s vow to“hunt down and punish” culprits would bethe best defense against future outrages,if carried out. But this can’t mean stop-ping halfway up the terrorist chain of com-mand.

Living in cities is a hallmark of civi-lized man. Doing so safely, though, re-quires a way of dealing with uncivilizedman, even if he happens to be anothercountry’s head of state.

Business WorldBy Holman W. Jenkins Jr.

The following first-person account fromthe streets around the World Trade Center isfrom an e-mail from Journal editorial writerJason Riley:

I’m back at home now. Got as far asBroadway and Liberty this morning, butwasn’t allowed to cross Broadway. SouthTower was still burning. Watched it col-lapse from that vantage point. Seemed tofall in slow-motion. Then a huge, blackcloud of debris formed and began spread-ing toward us. Everyone turned and ran, in-cluding me.

I kept looking over my shoulder, and itwas clear I could not outrun the cloud, so Istarted looking for cover. I saw a van andslid underneath, hoping it would shield mefrom the debris. It didn’t. I was having diffi-culty breathing. Every time I inhaled, moresmoke and debris. My eyes were burningand it was completely dark.

Then I started to worry that the vanwould move, and I would get crushed. I alsostarted to think that inside the van mightbe safer than under it. So I slid back outfrom underneath and banged on the win-dow. Someone inside opened the door andlet me in. Two other guys from the streetalso jumped in the van behind me, nearlycrushing my leg. But in the few seconds thedoor was open, so much debris got insidethe van that it was nearly impossible tobreathe in there, too. We were afraid todrive, for fear of running over people. Plus,it was still dark (but getting lighter). Even-tually, no one could breathe at all in thereand we had to get out. I ran into a nearbybuilding and was ushered into the base-ment. But 30 seconds later, we were told toevacuate.

Back out on the street it was light again

and a policeman was telling everyone to“make for the water,” perhaps not realizingManhattan is an island. So I continuedeast, passing a Burger King, where Ithought I could get some water. It was stillvery difficult to breathe. A crowd of about50 people were inside, including a womanwho was holding a newborn and was hyster-ical. There’s a hospital nearby, but shedidn’t want to go there. She was afraid to gooutside.

I was in the Burger King for about 2 min-utes when I heard a loud rumble. Severalmoments later it was completely dark out-side again. Someone had a radio and saidthe second tower had collapsed. I waited forit to lighten up again (about 15 minutes),and then I started for the Brooklyn Bridge.People were streaming over it. We musthave looked like refugees. I walked home toPark Slope.

What I Saw on the First Day of the WarBy Daniel Pipes

It is likely that more Americans diedyesterday due to acts of violence than onany other single day in American history.

Two parties are responsible for this se-quence of atrocities. The moral blame fallsexclusively on the perpetrators, who as ofthis writing remain unknown.

The tactical blame falls on the U.S. gov-ernment, which has grievously failed in itstopmost duty, to protect American citizensfrom harm. Specialists on terrorism havebeen aware for years of this dereliction ofduty; now the whole world knows it. De-spite a steady beat of major, organizedterrorist incidents over 18 years (since thecar bombing of the U.S. Embassy in Beirutin 1983), Washington has not taken theissue seriously.

Here are some of its mistakes:§ Seeing terrorism as a crime. American

officials have consistently taken the viewthat terrorism is a form of criminal activ-ity. Consequently, they have made theirgoal the arrest and trial of perpetratorswho carry out violent acts. That’s fine asfar as it goes, but it does not go farenough. This legalistic mindset allows thefunders, planners, organizers and com-manders of terrorism to continue theirwork untouched, ready to carry out moreattacks. The better approach is to see ter-rorism as a form of warfare and to targetnot just those foot soldiers who actuallycarry out the violence but the organiza-tions and governments that stand behindthem.

§ Relying too much on electronic intelli-gence. It’s a lot easier to place an over-sized ear in the sky than to place agents inthe inner circle of a terrorist group, and sothe Central Intelligence Agency and otherinformation-gathering agencies have puton their headphones and listened. Clearly,this is not enough. The planning for theevents that took place yesterday requiresvast preparation involving many peopleover a long period of time. That the U.S.government did not have a clue points tonearly criminal ignorance. As critics likeReuel Marc Gerecht keep hammeringhome, American intelligence servicesmust learn foreign languages, become cul-turally knowledgeable and befriend theright people.

§ Not understanding the hate-Americamentality. Buildings like the World TradeCenter and the Pentagon loom very largeas symbols of America’s commercial andmilitary presence around the world. Thetrade center has already been attackedonce before, in a bombing in February1993. It should have been clear that these

buildings would be the priority targets,and the authorities should have providedthem with special protection.

§ Ignoring the terrorist infrastructure inthis country. Many indications point to thedevelopment of a large Islamist terror net-work within the United States, one visibleto anyone who cared to see it. Already inearly 1997, Steven Emerson told the Mid-dle East Quarterly that the threat of terror-ism “is greater now than before the WorldTrade Center bombing as the numbers ofthese groups and their members expand.In fact, I would say that the infrastructurenow exists to carry off 20 simultaneousWorld Trade Center-type bombings acrossthe United States.”

The information was out there but lawenforcement and politicians did not wantto see it. The time has come to crackdown, and hard, on those connected to thisterror infrastructure.

If any good is to come out of yester-day’s deaths and trauma, it will be theprompting of an urgent and dramaticchange of course in U.S. policy, one thatlooks at the threat to the United States asa military one, that relies on human intelli-gence, that comprehends the terrorist men-tality, and that closes down the domesticnetwork of terror.

An easy assumption pervaded the air-waves yesterday that the morning’s hor-rors will have the effect of waking Ameri-cans to the threat in their midst. I am lessoptimistic, remembering similar assump-tions eight years ago in the aftermath ofthe 1993 bombing of the World Trade Cen-ter. That turned out not to be the wake-upcall expected at the time. Perhaps becauseonly six people died then, perhaps becausethe bombing was not accompanied or fol-lowed by other incidents, that episode dis-appeared down the memory hole. We oweit to yesterday’s many victims not to goback to sleep again.

We also owe it to ourselves, for I sus-pect that yesterday’s events are just a fore-taste of what the future holds in store.Assuming that the attacks in New Yorkand in the Washington area were onlywhat they seemed to be, they killed andinjured only those who were in the build-ings under attack or in their immediatevicinity. Future attacks are likely to bebiological, spreading germs that poten-tially could threaten the whole country.When that day comes, this country willtruly know what devastation terrorism cancause. Now is the time to prepare for thatdanger and make sure it never happens.

Mr. Pipes is director of the Philadelphia-based Middle East Forum.

How Did They Get Past Security?By Brendan Miniter

Now we know, someone said yesterday,why they ask us all those silly questions atthe airport. But those silly questions didn’tstop the terrorists who hijacked four com-mercial planes and used them to destroythe World Trade Center’s twin towers andpart of the Pentagon.

So how could they have done this?One of the planes used in the attack

took off from Dulles International Airport,just outside Washington, en route to LosAngeles. It will be some time before inves-tigations reveal how, exactly, the terror-ists were able to execute their plan. ButI’ve seen the security measures atDulles—and they weren’t tight.

As it happens, I once worked for theduty-free shops at Dulles, one of the manyjobs I worked to put myself throughschool. The job entailed stocking shelves,selling items to international passengersand delivering those goods to passengersas they boarded their flights. So I had acard that let me bypass many of the secu-rity measures. A quick swipe would open adoor to a tunnel that went under the metaldetectors. Inside that tunnel we would of-ten load a van to carry our products to theouter terminals.

At the time it struck me how manyholes there are in airport security. Presum-ably background checks are performed oneveryone who is issued a security pass.But if a terrorist slips through and is is-sued a pass, he could easily smugglethrough whatever it takes to hijack aplane. Digitally enterprising terroristscould surely find a way to make a falsesecurity card or simply steal a valid onefrom an unsuspecting employee. What’s

worse, many employees would let othersfollow them through the door into the tun-nel—even though we were warned againstsuch “piggybacking” and made to watch avideo on security before being given clear-ance.

The tunnel wasn’t the only way a terror-ist could foil the airport’s security mea-sures. The metal detectors and X-ray ma-chines offer only a minimal review of pas-sengers. I would often carry a can of sodathrough the security checks, and the secu-rity officers would allow me to put it off tothe side with my keys as I walked throughthe metal detector. I often wondered if aterrorist could dummy up a can of sodaand put a bomb or pieces of a gun in it, tobe opened once on board.

Delivering packages to passengers asthey got on their plane revealed anotherflaw in the security system. With my secu-rity pass I would make my way into thejetway, line up my bags and await mycustomers. After listening to details of thehijacked planes, I wonder how the terror-ists smuggled weapons aboard. Did theyhave an accomplice who met them in thejetway?

I hate being hassled every time I fly.And after having worked at Dulles, itseemed clear that the security measureswere aimed at making people feel safeinstead of actually protecting them. Haveyour bags been in your possession? Hasanyone given you anything to carry on-board?

Is it even necessary to ask such ques-tions? It certainly isn’t sufficient.

Mr. Miniter is assistant editor of Opinion-Journal.com.

Taking Refuge Under, Then in, a Van

“Technically, Mr. Copely, youare only eligible for a lunch

break once you’ve been hired.”

The day was brilliant,cloudless, the kind thatManhattan looks espe-cially majestic in.

Mistakes Made the Catastrophe Possible



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Terrorism Hits HomeTerrorist acts became familiar to Americans over three decades —though never near so close or deadly as yesterday.

l 11997722:: Shattering the Olympics’ sym-bolic peace, a Palestinian group attacksIsraeli athletes at Munich’s Olympic vil-lage. 17 are killed.

l 11997799:: The U.S. Embassy in Tehran isstormed by a group of militant students.52 of the hostages were held for 444days, released January 21, 1981.

l 11998833:: A truck bomb kills 241 Marinesin their Beirut, Lebanon, barracks.

l 11998855:: An American tourist is killed andthrown overboard when Palestinian ter-rorists hijack an Italian cruise ship offEgypt.

l 11998888:: Pan Am Flight 103 explodesover Lockerbie, Scotland, killing 270.Libyan terrorists are blamed.

l 11999933:: At the World Trade Center, sixare killed and more than 1,000 wound-ed when a car bomb explodes in thegarage. Three Islamic terrorists wereconvicted of conspiracy in 1994; afterappeals, just five weeks ago each wassentenced to 100 years in prison.

l 11999944:: Authorities arrest a man who’dplanned to hijack an Air France plane inAlgeria and crash into a building inParis.

l 11999955:: An American citizen blows upthe federal building in Oklahoma City,killing 168 Americans.

l 11999966:: The bombing of the KhobarTowers barracks in Saudi Arabia kills 19U.S. airmen and injures 500.

l 11999977:: A Palestinian with a tourist visashoots seven tourists in New York City’sEmpire State Building.

l 11999977:: Authorities thwart three menarmed with suicide bombs and a noteindicating plans to attack New York Citysubways.

l 11999988:: Near-simultaneous bombings ofU.S. embassies in Kenya and Tanzaniakill 263 and injure 5,000. The U.S.charges Saudi Arabian terrorist leaderOsama bin Laden, Clinton orders mis-sile strikes against Afghan andSudanese targets.

l 11999999:: A man is apprehended inWashington state as he heads for a ter-rorist attack at Los AngelesInternational Airport.

l 22000000:: Terrorists drive motorboatsloaded with explosives into the USSCole in Yemen, killing 17 U.S. soldiers.

Sources: WSJ research; news reports

AP

phot

os

Starting in a Whisper,Response Is ExecutionOf Unthinkable Drill

The U.S. government began to shuddervisibly at 9:04 a.m. EDT as President Bushwas reading to schoolchildren in Sarasota,Fla.

White House Chief of Staff AndrewCard whispered in his ear the horrificnews of a second airline crash into theWorld Trade Center. The president, al-ready aware of the first attack, blanched;then he turned back to the book, and abouta half-hour later denounced “an apparentterrorist attack on our country.”

That was just the beginning of the mostterrifying assault on the U.S. since Pearl

Harbor. Before it was over, the WhiteHouse, the Capitol, the Pentagon, the Trea-sury and other Washington power centershad been mostly evacuated, sending thegovernment of the world’s richest andmost powerful democracy into hiding.When Mr. Bush flew out of Sarasota on AirForce One, he stopped in Louisiana, wherehe vowed to “hunt down” the terroristsresponsible—and flew off again to a safelocation that officials wouldn’t immedi-ately disclose.

The need for such precautions wasfrighteningly apparent to anyone with atelevision. Minutes after Mr. Bush’s firststatement, another airliner crashed intothe headquarters of the U.S. military. Ittore a gaping hole in the Pentagon, forcingevacuation of most offices. After a briefattempt to personally assist the casualties,Defense Secretary Donald Rumsfeld re-treated into the building’s highly secureNational Military Command Center. An-other plane crashed in western Pennsylva-nia at 10 a.m.

Credible ThreatsOne by one, leading government offi-

cials abandoned their offices and relied onthe wonders of 21st-century telecommuni-cations for the exercise of their duties.The White House complex itself was evacu-ated after security officials reported acredible threat; Vice President DickCheney was taken out of his office to anundisclosed “secure” location, while thepresident’s top economic adviser, Law-rence Lindsey, decamped to a downtownlaw firm to monitor events.

First Lady Laura Bush had been pre-paring to testify before a Senate commit-tee on education policy. Instead, she calledon American parents “to reassure theirchildren everywhere … that they’re safe,”before being whisked away and phoningher own husband and twin daughters.

“A policeman came in and said, ‘Get outof the building,’ ” said Sen. Robert Byrd ofWest Virginia, an 83-year-old Democratwho is the longest-serving member of Con-gress. The bipartisan congressional leader-ship huddled first at Capitol police head-

quarters, then departed by helicopter for asecure location of its own. Before sendinghis young aides home, GOP Sen. JohnWarner of Virginia recalled to them, “I wasin Washington when I heard about the Japa-neseattack on Pearl Harbor. This is anotherPearl Harbor, and now your generation willhave to meet the challenge.”

‘Open and Operating’The Federal Reserve issued an emer-

gency statement saying the central bankwas “open and operating” and ready “tomeet liquidity needs” of the U.S. economy.About 100 staffers remained at work insidea building that had been officially evacu-ated. But a plane carrying Fed ChairmanAlan Greenspan, who had been returningfrom a meeting in Switzerland, was di-verted to a secret location.

The same was true of Secretary ofState Colin Powell, who cut short a trip toSouth America to return to the U.S. Trea-sury Secretary Paul O’Neill had just ar-rived for economic talks in Tokyo when

news of the attack broke on television athis hotel. Treasury officials traveling withhim initially had trouble reaching theircolleagues back at headquarters, since it,too, had been evacuated. The hotel phonesin Tokyo were jammed; Mr. O’Neill’s secu-rity detail warned aides not to reveal theirlocation or schedules when making cellu-lar telephone calls.

Other top government officials van-ished, too. Supreme Court justices lefttheir building, which was placed withinthe security perimeter authorities estab-lished on Capitol Hill. A few blocks awayat the Energy Department, Secretary Spen-cer Abraham joined senior aides in abomb shelter before leaving the buildinglater in the day. Upon hearing the news,Transportation Secretary Norman Minetabroke off a meeting with a Belgian repre-sentative of the European Union; hemoved to the White House situation roomto monitor events.

It was a chilling real-world execution ofplans that top federal officials maintain in

the hope they will never become neces-sary. “Not only did we think about it, [but]at a national level, we practiced it,” saidJohn Podesta, who served as White Housechief of staff under President Clinton.

President’s Four PrioritiesFor security reasons, Mr. Podesta

wouldn’t discuss specifics. But he did saythat top officials at federal agencies, andsenior White House aides, would be ush-ered to situation rooms to keep their essen-tial duties moving. The president himselfwould focus on four priorities: ensuring nofurther attacks were taking place, ensur-ing his own safety, dispatching the neededpersonnel and money for “consequencemanagement,” and working with the intel-ligence community to find the terrorists.

By midafternoon, Mr. Bush’s communi-cations director Karen Hughes emergedfrom the White House situation room totell Americans that those preparationswere working.

“Every federal agency has implementedcontinuity-of-operations plans to make surethe government continues to function effec-tively,” she told reporters assembled at theFederal Bureau of Investigation. “Whilesome federal buildings have been evacu-ated for security reasons and to protect ourworkers, your federal government contin-ues to function effectively.”

By that point, the government felt confi-dent enough to disclose the president’swhereabouts. Mr. Bush had first beenflown, under escort from military jets, toBarksdale Air Force Base in Bossier City,La., a heavily fortified base with state-of-the-art communications equipment and so-phisticated strategic intelligence. After hismidday statement, Ms. Hughes said, Presi-dent Bush was taken to Offutt Air ForceBase in Omaha, home of the U.S. StrategicCommand.

Subsequently, the government soughtto restore some sense of normalcy to a daythat was so shockingly abnormal. “Makeno mistake about it, your armed forces areready,” said Gen. Henry Shelton, chair-man of the Joint Chiefs of Staff. From theWhite House briefing room, Health andHuman Services Secretary Tommy Thomp-son said the department had dispatchedemergency medical assistance to authori-ties in New York and Washington.

House and Senate leaders of both par-ties announced plans to reconvene todayto take up resolutions condemning the at-tacks; some conservatives began pressingfor some sort of war against those respon-sible. But on this occasion, members of allideological stripes, some of them in tears,joined in singing “God Bless America” onthe Capitol steps.

President Bush arrived back at theWhite House at 6:53 p.m. EDT and walkedinto the Oval Office. Slightly more than 90minutes later, he told the nation, “Today,our nation saw evil, the very worst in hu-man nature.”

A DAY OF TERROR

PRESIDENT BUSH suddenly faces acrisis that transcends nearly anynightmare he could have imag-

ined, and one that calls upon him tosummon leadership skills he’s nevertested.

Indeed, the very skills he now needsmost—the ability to unite a quarrelsomenation, the knack for transcending parti-san divides, the talent to pull America’sinternational allies behind him—are pre-cisely the skills that skeptics doubt hepossesses.

Other presidents whose skills weresimilarly doubted at a time of nationalduress—Abraham Lincoln, FranklinRoosevelt—rose to the demands of his-tory, showing depths of leadership andcharacter that detractors never imaginedthey held. Others—Lyndon Johnson, per-haps, or Herbert Hoover—were foundwanting.

In either case, there’s little doubt thatthe defining moment of Mr. Bush’s presi-dency occurred between dawn and lunch-time yesterday, as hijacked airliners flewinto the World Trade Center and the Pen-tagon, wreaking death and havoc. Now,there is no script for Mr. Bush, for Amer-ica has never before been the target ofconcerted attack from an unidentified foe.It isn’t even clear where to direct a re-sponse. As Israeli Prime Minister ArielSharon has long noted, the difficulty indealing with terrorism is finding the ad-dress to which you respond.

But there can be little doubt aboutthe steps Mr. Bush must take. His firsttask is to calm and reassure a nationthat, more than at any time since PearlHarbor, has lost its sense of securityand safety. In modern America, that is ajob that only a president can perform,and one that will require Mr. Bush toproject an aura of command that someAmericans think has eluded him in hisfirst eight months in office.

FOR ALL HIS FLAWS, Mr. Bush’spredecessor, Bill Clinton, was amaster at rising to such moments,

as he did after the Oklahoma City bomb-ing. Mr. Bush hasn’t yet shown he canmaster the megaphone of the presidency

quite so well. His calm, measured re-marks to the nation last night delivered asimple but stern message to America’sfoes, and marked an improvement over asomewhat shakier performance earlier inthe day.

But at a time like this, Americans’ de-mands aren’t onerous. They will settlefor a sense of steadiness and resolve atthe top. Toward that end, Mr. Bushwould be wise at this point to find waysto remind Americans that the brain trusthe assembled—Vice President DickCheney, Secretary of State Colin Powell,Defense Secretary Donald Rumsfeld—could well have been designed for a na-tional security crisis like this one. Allthree have been criticized in recentmonths, but they present a reassuringpicture at this moment.

Mr. Bush’s second task will be tobury, for now and the foreseeable fu-ture, the air of partisan jockeying thathas hung over Washington since lastfall’s contested election. Of course bothparties will pay lip service to puttingaside partisan divisions; that’s what poli-ticians do at a time like this.

But ramifications of yesterday’s ter-rorism will linger for months, if notyears. Americans will now debate howto respond, how to construct defenses,indeed, how to adjust life in America. Atsuch moments, other nations form na-tional unity governments. That isn’t theAmerican way. But if bipartisanship isto have real meaning, Mr. Bush willhave to make Democratic leaders part ofa unified national response. A good wayto start might be to summon his foe inlast year’s election, Al Gore, to theWhite House as a symbol that the coun-try unites at such moments.

THE THIRD, AND perhaps mostchallenging task for Mr. Bush willbe to marshal a united interna-

tional response. If the response to yester-day’s terror is seen strictly as America’smilitary retaliation it will be useful. Ifthe response is a united international at-tack on terrorists, on their sponsors, andon their apologists, it will have far moremeaning, and save far more lives in thelong run. Yet testiness in dealing withallies has been more the norm for Mr.Bush.

It is impossible to say now what mili-tary response is appropriate. Americanswon’t demand instant action, or be com-fortable with precipitous retaliationtaken without careful consideration.

Yet American credibility is at stake. Go-ing into this time of testing, Mr. Bush car-ries some seeming disadvantages. For one,he arrived in office with limited interna-tional experience. But he brings consider-able assets as well. His veryname—Bush—is reassuring to many Ameri-cans. His father successfully prosecuted aconventional war. Mr. Bush himself is well-liked and has shown that he takes the du-ties and responsibilities of his office som-berly and seriously. Most reassuring of all,history shows that American presidents,more often than not, rise to the moment.

By John FialkaAnd Jackie Calmes


WASHINGTON—America found itselfyesterday at war in peacetime. Horrific as itwas, though, warning signs have longpointed to a day like this coming.

No antimissile defense was going to stopit. Just as Japan on Dec. 7, 1941, destroyedAmerica’s longstanding belief in its ocean-guarded invulnerability, now Sept. 11, 2001,joins that date to live in infamy—for obliter-ating Americans’ sense that foreign terror-ism, even when aimed at U.S. interests, wassomething that mostly happened some-where else, to someone else.

As a shaken Rep. Curt Weldon (R., Pa.)said, “This is 21st century war.”

Especially in the past decade, a rash ofterrorist attacks aimed at U.S. interestshave proved the killing power of carefully-placed explosives and the increasing sophis-tication of global terrorist groups. For all theprecursors, the nation appeared wholly un-prepared for yesterday’s catastrophe—eventhough, by targeting the Pentagon just overthe Potomac River in northern Virginia, andthe World Trade Center anchoring Manhat-tan’s skyline, a stealth enemy struck at thevery symbols of America’s government andeconomy.

Past terrorist incidents were all “mereapples and oranges compared to this interms of magnitude, coordinationand … pain inflicted,” says Bruce Hoffman,an expert on terrorism for the Rand Corp.think tank. Moreover, says Mr. Hoffman,whose office is in sight of the Pentagon, thepattern of recent terrorist incidents mayhave steered U.S. defense efforts in thewrong direction.

Those attacks have led to a focus on thetruck bomb, the weapon used in the October1983 blast of the U.S. Marine barracks inBeirut that killed 241, the 1996 barracksbombing in Saudi Arabia that killed 19 andwounded 500, and the August 1998 blaststhat devastated U.S. embassies in Kenyaand Tanzania and killed hundreds.

Similarly, it was a car bomb that went offin the 1993 attack on the now-destroyedWorld Trade Center. While many expertspredicted that attack would be a wake-upcall for Americans, alerting them to the ter-rorist threat at home, in fact the event fadedin memory—perhaps because the casualtycount was far less than it could have been.More than 1,000 were wounded, but just sixpeople died.

In response to the threat of car and truckbombers over recent years, U.S. officialshave surrounded the White House, Capitol,Pentagon and other national institutionswith giant cement pots filled with flowers.Such impediments seemed almost superflu-

ous yesterday, as members of Congress andstaff passed them when they evacuated theCapitol complex, eyes to the sky for fear ofmore hijacked airliners crashing down.

After the collapse of the Soviet Union,some U.S. experts focused on containingweapons of mass destruction, to guardagainst chemical, biological and nuclearweapons falling into terrorists’ hands. Withthe attention either to relatively rudimen-tary truck-bombs or sophisticated weaponsof mass destruction, “We’ve been focusingon two ends of the spectrum,” Mr. Hoffmansays. Using airliners as bombs amounts to athreat that “sits right in the middle. It isspectacular, not exotic, but unfortunately isvery, very effective.”

Airline hijackings long have been a ter-rorist tactic, though most planes have beenlanded safely. The Libyan bomb that de-stroyed Pan Am Flight 103 in midair 12

years ago led to a step-up in already cumber-some airport-security measures. A portentof yesterday’s sort of disaster came sevenyears ago, when authorities apprehended aman who was going to hijack an Air Franceliner and blow it up over Paris.

The Boeing 757 that exploded at the Pen-tagon normally weighs 200,000 pounds, in-cluding about 170,000 pounds of jet fuel.“From now on,” says Gary Milhollin, anengineer and director of the WisconsinProject, which traces components of nuclearweapons, “I guess we have to consider airlin-ers to be in the category of dual-use weap-ons.”

What experts call dual-use weapons—or-dinary commercial products that can beturned into deadly weapons—have been ahallmark of recent terrorist activity. Timo-thy McVeigh, America’s own terrorist, filleda truck with fertilizer to blow up the AlfredP. Murrah Federal Building in OklahomaCity. A speedboat laden with explosivespulled alongside the U.S.S. Cole in Octoberin Aden, Yemen, crippling the ship and kill-ing some crewmen.

Since Iraq’s attack on Kuwait in August1990 led to the Persian Gulf War, U.S. intelli-gence agencies have worried that certaincommonly used chemicals and pharmaceuti-cal gear could be adapted for weaponry.

As for the destructive power of a crash-

ing airliner, much of the analysis to date hasfocused on accidental crashes. For example,such an accident explains why all 103 operat-ing U.S. nuclear plants are protected by ce-ment domes purposely designed to with-stand an airliner crash, says Bill Beecher, aspokesman for the U.S. Nuclear RegulatoryCommission.

Throughout the 1980s, a series of interna-tional airline hijackings prompted U.S. au-thorities to fortify airports and increase se-curity. In 1983, a bomb exploded outside theU.S. Senate chamber, leading to security pro-cedures that have made much of the Capitoloff-limits to tourists.

“What is truly dismaying about this isthat these attacks happened in several citiesat roughly the same time with no advancenotice, despite the fact that the Clinton andBush Administrations have spent an awfullot of money and an awful lot of man-hours

trying to follow terrorist groups,” saysJames Lindsay, a foreign-policy analyst atBrookings Institution, a think tank here.

“For some Americans, this will tell themthat the world outside is a dangerous place,full of people who don’t like the U.S., andthey will have a tendency to turn their backson it,” Mr. Lindsay says. “Others will betempted into a kind of jingoism, where westrike out blindly at an imagined enemy.”

It will be the President’s job to controlboth reactions, he says.

Analysts note that terrorists often try toprovoke an overreaction that can provemore crippling ultimately than the event it-self. For example, security restrictionscould be imposed on commercial airlinersthat become disruptive to travel. “Yet weneed airliners,” said Mr. Milhollin. “Oureconomy depends upon them.”

Despite budget woes, Congress is certainto consider providing billions of dollarsmore to beef up U.S. intelligence agencies.“It will be easy to say this is an intelligencefailure, but you could be talking about asmall nucleus of sophisticated people,” Mr.Hoffman says. “Terrorist groups have got-ten much more diffuse. There is no way youcould have an agent in every one of thosecells.”

By Wall Street Journal staff reportersJim VandeHei, Jeanne Cummings,David Rogers, Shailagh Murray andJohn Harwood.

Recent Incidents Led U.S. to Focus on Car Bombs

Without Notice,History Hits BushWith Severe Test

CAPITAL JOURNALB y G E R A L D F . S E I B

Government Officials Relocate, Keep Working

Asaweaponof choice, the fuel-laden commercialairlinersusedas suicidebombersyesterdayweren’t so‘exotic,’ says oneexpert on terrorismatRandCorp., ‘butunfortunately …very, veryeffective.’

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As it struggled with the loss of many ofits own employees, the insurance industryalso is facing what is certainly the largestman-made and possibly the largest-everdisaster it has faced, with the price tagestimated at more than $10 billion.

“We’re looking at a multibillion-dollarevent,” said Matthew Mosher, vice presi-

dent of property-casualty rating divisionat A.M. Best Co., an insurance ratingsfirm. “You have property damage, work-ers’ compensation coverage, substantialbusiness-interruption coverage and ulti-mately some business liability coverage.”Mr. Mosher said it was unclear just whichinsurance carriers could be liable for dam-age stemming from the terrorist attacksyesterday that destroyed New York’sWorld Trade Center and devastated part ofthe city’s financial district, but said “mostof the major reinsurers in the world aregoing to feel a substantial impact.” Rein-surance companies essentially provide in-surance to the primary sellers of cover-age, sharing risk on policies. Some ex-perts estimated that as many as 100 insur-ers ultimately will share the cost.

‘A Monumental Loss’Insurance executives said the total

damage could climb up to the $20 billionrange, with property damage alone com-ing in above $5 billion. “It’s going to be amonumental loss” industrywide, said Will-iam R. Berkley, chairman and chief execu-tive of W.R. Berkley Corp., property-casu-alty insurance company based in Green-wich, Conn., although he said his com-pany itself doesn’t expect claims of “anyconsequence.” He added, “This is going tochange how people think about high-limitproperty coverages.”

Robert Hartwig, chief economist at theInsurance Information Institute, a largetrade group, said the attacks likely wouldend up as the costliest man-made disasterin the U.S. for the insurance industry. TheLos Angeles riots of 1992 caused insuredlosses of $775 million, which Mr. Hartwigsaid equated to $1 billion in today’s dol-lars. Insurers paid $510 million for theWorld Trade Center bombing in 1993 and$125 million for the Oklahoma City bomb-ing. In Oklahoma City, the costs to insur-ers were lower because the industry hadlimited exposure on the federal officebuilding.

The largest natural disasters, in dollarterms, to hit the U.S. were Hurricane An-drew in 1992, which caused insured lossesof $15.5 billion, and the Northridge, Calif.,earthquake in 1994, with insured losses of$12.5 billion.

At the time of the 1993 bombing, theNew York Port Authority, which owns theWorld Trade Center, had $600 million inproperty coverage and $400 million in lia-bility insurance, Mr. Hartwig said, notingthat more than a dozen insurers partici-pated in that coverage at the first level ofcoverage and that those companies thenprotected themselves by buying variouslevels of reinsurance.

Mr. Hartwig said that the impact oninsurers of the new attack on the WorldTrade Center could be mitigated by exclu-sions in some policies for terrorist attacks.Some insurers added such exclusions totheir policies after the 1993 bombing. “It’snot clear if some or all of the insurers hadsuch exclusions,” he said.

Munich Re, the huge German rein-surer, said it has policies with direct insur-ers of the World Trade Center buildingand “could have considerable losses fromthese several events.” Rainer Kueppers, aspokesman, stressed that “the financialstrength of the group is not at all in ques-tion. We have been in this business formore than 100 years and have made provi-

Please Turn to Page B2, Column 3

In the wake of the destruction causedby the terrorist attack on lower Manhat-tan, the nerve center of U.S. finance, allmajor markets were closed yesterday andwill remain closed today, as officialsscramble to instill confidence in shakenglobal investors.

When U.S. markets will reopen andwhat will happen when trading resumes

is unclear, as officials sift through thephysical damage and human carnage.

There is a risk that U.S. stock markets,already shaky, could follow the jittery reac-tion in the global markets that did remainopen yesterday. In Europe, the Dow JonesStoxx 50 index of European blue chips

plunged 6.1% to its lowest level since Au-gust 1998. British stocks fell 5.7%, Frenchstocks 7.4% and German stocks 8.5%.

In a further sign of nervousness, onWednesday in Asia, the benchmark Ni-kkei index of major Tokyo stocks wasdown 5.9% at 9685.77 in midday trading,falling below the psychologically impor-tant 10000 mark for the first time since1984. The dollar fell sharply against boththe Japanese yen and the euro, while theprice of gold — considered a haven duringtimes of crisis — spiked up.

“Even if it’s physically possible” to re-open trading, “it may not be practical,”Harvey Pitt, chairman of the Securitiesand Exchange Commission, said in an in-terview yesterday afternoon. He said offi-cials needed to be sensitive to the tragedyhitting employees, and the state of trad-ing systems. The shutdown will affect allstock and futures markets, which shut yes-terday morning shortly after word of thebombing attacks spread.

The Bond Market Association told secu-rities firms that bond trading had beensuspended “indefinitely.”

The Federal Reserve promised to pro-vide sufficient cash to keep the financialsystem stable.

The last time the New York Stock Ex-change closed for an unscheduled daywas Richard Nixon’s funeral in 1994, andthe last time for two unscheduled dayswas for V-J at the end of World War II.Perhaps the last big shutdown because ofdirect damage to financial markets wasthe 1835 New York City fire.

Past history suggests the stock marketwill likely tumble when it finally opensagain for trading, but a rebound could fol-low. The Dow Jones Industrial Averagesank 2.9% the day after the Pearl Harborbombing, perhaps the most comparabletragedy in U.S. history, according to bro-kerage firm A.G. Edwards in St. Louis.The U.S. stock market was in a bear mar-ket and the economy struggling at thetime of Pearl Harbor, similar to its statebefore yesterday’s surprise attack. TheDow average was down a full 9.7% threemonths after the Pearl Harbor attack.

But the Dow average was off just 0.1%12 months after the attack, after signs ofan economic recovery emerged.

The market has generally shrugged offterrorist attacks such as the one againstthe federal office building in OklahomaCity or the first bombing of the Trade Cen-ter, though those attacks were less severe

than this one. “In terms of magnitude,this is so much greater, I don’t think it’scomparable,” said Steve Leuthold, head ofLeuthold Group, a money-managementand research firm in Minneapolis. Headded that the Kennedy assassination wasa reasonable comparison because peoplebelieved it was part of a broader attack onthe U.S. government.

The market was open at the time ofthe attack and quickly fell 4% before trad-ing was halted. But when the market re-opened several days later following thepresident’s funeral, it was clear to inves-tors that the government was secure, andthe market surged 4% that day.

Some analysts feared a prolonged shut-down of U.S. markets could only furthererode investor faith in workings of the fi-nancial markets. “Keeping the marketsclosed shows that terrorists brought youto bay, and it also creates more uncer-tainty,” said Gary Gensler, the top Trea-sury official overseeing financial marketsfor the Clinton administration. Open mar-kets would “allow for a lot of economicpressures to be relieved in an orderlyway,” he added.

But others speculated that an ex-tended period with no trading could allow

markets to reopen in a climate of calm,once the initial period of panic and rumorhad passed. “The longer it takes, the lessshock there’s going to be,” Mr. Leutholdsaid.

“I’m more concerned about the mental

state of the people exposed to this kind oftragedy up close,” Mr. Pitt said. “We needa period to calm down. It would be unwiseto force people back to work,” he added.

Today, firms, markets and exchangesPlease Turn to Page B2, Column 3


The devastation of the World TradeCenter wiped out a symbol of America butalso a very real center of U.S. businessand financial life.

Among the hundreds of tenants housedin the two 110-story buildings were many

brokerage firms and banks, law offices,technology companies, trading firms andother businesses, all occupying prized of-fice space within a five-minute walk ofWall Street itself.

More than 50,000 people regularlyworked in the Twin Towers and otherWorld Trade Center buildings, with tens ofthousands more—including many touristsvisiting a sky-high observation deck andshoppers crowding ground-level retail out-lets and banks—moving through the com-plex each day. Many people escaped be-fore the destruction of the landmark build-ings, but amid the chaos, the toll of deadand injured was unclear.

Many hours after the jetliners crashedinto the buildings, tenant companies werestruggling to obtain information on the sta-tus of their employees and to offer whatcomfort they could to family and relatives.

Numerous foreign banks favored theWorld Trade Center for their New Yorkoffices, including Germany’s DeutscheBank AG, which occupied four floors. Gov-ernment offices also were located through-out the complex; Secret Service agentstraveling with President Bush say about200 agents were stationed in the WorldTrade Center office.

Among domestic financial firms, Mor-gan Stanley, based in midtown Manhattan,was one of theWorld Trade Center’s largesttenants,withabout 20 floorsasa result of itsof acquisition of Dean Witter, which longhad its offices in the Twin Towers.

Yesterday morning, Morgan StanleyPresident Robert Scott was at a confer-ence in his firm’s offices, addressingabout 400 economists and investors at ameeting of National Association of Busi-ness Economists. Mr. Scott’s topic: the in-vestment opportunity stemming from thesavings of baby boomers in coming years.Suddenly, the chandeliers started shaking,and Mr. Scott stopped.

People started leaving the room, firstwalking and then running. Mr. Scott madeit out of the building safely, though Mor-gan Stanley yesterday couldn’t say howmany of its World Trade Center employeeswere unaccounted for.

“Our immediate focus and concern arefor the well-being and safety of MorganStanley employees,” said Phil Purcell,chairman and chief executive of the bro-kerage and investment-banking firm.“Some 3,500 people working for MorganStanley’s individual-investor businesseswere based in the World Trade Center com-plex, and we are working diligently withlocal authorities to determine the facts re-garding their safety.”

Because of the confusion and evacua-tion of the injured to hospitals, the safetyof some building occupants was hard todetermine. David Alger, head of Fred Al-ger Management Inc. which occupied the93rd floor of the North Tower, remainedunaccounted for last evening, a familymember said. His family had no informa-tion on any of the firm’s employees, thefamily member said.

Mr. Alger’s funds built some of the bestperformance records in the mutual-fundindustry during the past decade by invest-ing in fast-growing companies, and he wasone of the first mainstream money manag-ers to embrace Internet stocks. His firm isalso known as a training ground for younganalysts, several of whom hold top posi-tions in major firms, including Stilwell Fi-nancial Inc.’s Janus Capital Corp.

Cantor Fitzgerald, one of the country’sbiggest bond dealers responsible for trad-ing as much as a third of all U.S. govern-

ment bonds, had offices on some of thehighest floors—between the 101st and105th floors of the North Tower. “We aredoing everything we can to assess the situ-ation, focusing mainly on the state of ouremployees,” a spokeswoman said, declin-ing to elaborate.

Brent Glading, a salesman forMassMu-tual Financial Group’s Oppenheimer-Funds Inc., was on the 33rd floor of theSouth Tower yesterday morning when thefirst plane hit the North Tower. He headeddown the stairs, but then there was anannouncement over the building’s publicaddress system that said a plane had hitthe North Tower but that the South Towerwas secure. So he and others began head-ing back to their offices.

Mr. Glading, who had made it down tothe sixth floor, had climbed up to the 20thwhen the jetliner smashed into his build-ing. “I have to believe that anyone whowas in the process of evacuating may havestopped,” he said, adding the flow of peo-ple down the stairs thinned significantly.“It was too premature to make that kind ofannouncement,” said Mr. Glading, who es-caped uninjured.

When the plane hit, Mr. Glading was inthe stairwell and smelled smoke. “Thebuilding was shaking like hell, and Ithought I better get out of here,” he said.

Executives of money-management firmFiduciary Trust Inc., a unit of FranklinResources Inc., said many of the 500 em-ployees who worked in the complex hadgotten out, but officials didn’t have an ex-act count. “We’ve been incredibly lucky;people we knew were in there got out,”said Anne Tatlock, the firm’s chairmanand chief executive,

Fiduciary Trust, which occupied fivefloors that were located high in the SouthTower, caters to investors of substantialnet worth and used its elegant offices tohelp woo clients, who often paused to ad-mire the amazing views when they visited.

Ms. Tatlock was in Omaha, Neb., at aconference sponsored by Warren Buffettwhen she heard about the disaster. “Ithought, why would they joke, then I sawthe TV,” she said.

Network Plus Corp., Randolph, Mass.said all 21 employees working in offices onthe 81st floor of the North Tower were ableto evacuate. The telecommunications pro-vider said the office employs about 40 peo-ple, but many of those workers were out inthe field.

But a representative in the Hartford,Conn., office of investment-banking firmKeefe, Bruyette & Woods, which had of-fices on the 89th floor of the South Tower,said the company hadn’t accounted for allthe 150 bankers, traders and research ana-lysts who normally work in the building.

The firm had developed plans for emer-gencies after the World Trade Centerbombing in 1993. Yesterday, however, offi-cials outside of the Manhattan office hadonly very sketchy information and wereswamped fielding calls from worried fam-ily members. “I have no idea what we aregoing to do now,” a spokesman said. “Weare operating on a personal level today,obviously.”

A spokesman for MassMutual Finan-cial Group said all of the roughly 600 em-ployees in their offices in the South Towersurvived the attack. He said the firm, with$127 billion in assets, would be ready tooperate when markets reopen and that Op-penheimerFunds, which had its headquar-ters in the World Trade Center, would relo-cate its critical services.

Law firm Harris Beach & Wilcox LLPhad 113 people, including 50 attorneys,working on the 85th floor of the SouthTower. “The difficulty is that we can’t ob-tain information. We can’t reach the 212area code.” Timothy Gleason, a spokes-man for the company’s office in Roches-ter, N.Y., said during the day.

Gunther K. Buerman, a managing di-rector added: “Right now, for all of us,people are first, business is secondary.”

How the World’s Markets Reacted

*Asia’s markets closed before having a chance to reactto the news, but by midday, Japan’s Nikkei fell nearly 6%.Source: WSJ Market Data Group

EuropeCOUNTRY INDEX % CHANGE

Belgium Bel-20 Index –5.46Britain London FTSE 100-share –5.72France Paris CAC 40 –7.39Germany Frankfurt Xetra DAX –8.49Italy Milan MIBtel –7.42Netherlands Amsterdam AEX –6.95Spain IBEX 35 –4.56Sweden SX All Share –7.75Switzerland Zurich Swiss Market –7.07

Latin AmericaCOUNTRY INDEX % CHANGE

Argentina Merval Index –5.18Brazil Sao Paulo Bovespa –9.18Canada Toronto 300 Comp. –4.03

Chile Santiago IPSA –2.80Mexico I.P.C. All-Share –5.55

Asia*COUNTRY INDEX % CHANGE

Australia All Ordinaries –0.01China Dow Jones Shanghai +0.30China Dow Jones Shenzhen +0.09Hong Kong Hang Seng +0.49India Bombay Sensex –1.04Japan Tokyo Nikkei 225 +0.95Japan Tokyo Topix Index +0.20Singapore Straits Times +0.53South Korea Composite –1.84Taiwan Weighted Index –2.62

Foreign Exchange: U.S. dollarfalls after the terrorism attacks Page B3.

Banking: How the everydayflow of money was disrupted Page B3.

Commodities: The impact ofshutdowns on traders, farmers Page B3.

World Stock Markets: Tables ofDow Jones Global Indexes Page B4.

Insurers May SeeBiggest LiabilityEver for Losses

By Wall Street Journal staff reportersChristopher Oster in New York,Christopher Rhoads in Berlin andDavid Pringle in London.

By Wall Street Journal staff reportersMichael Schroeder in Washington, andKate Kelly and Antonio Regalado inNew York.

Markets Will RemainClosed Again Today;OfficialsAssessDamage

Trade Center Offices

Control of World Trade Center TowersMoved to Private Hands Just Months Ago

Smoke billows from one of the towers of the World Trade Center and flames and debrisexplode from the second tower.

AP

Phot

o

Attack Shuts Down U.S. Markets and Causes Global Declines

For a list of the hundreds of companieswhose World Trade Center offices weredestroyed yesterday, see page B2.

Trade Center Firms FearFor Friends and Colleagues

By Peter GrantStaff Reporter of The Wall Street Journal

The cataclysmic destruction of theWorld Trade Center came less than twomonths after control of the famed complexpassed into private hands for the first timein its 30-year history.

A group led by New York developerLarry Silverstein and Westfield AmericaInc. acquired a 99-year lease of the 11 mil-lion square-foot complex from the Port Au-thority of New York and New Jersey. Thevalue of the deal was put at $3.2 billion,making it one of the biggest real-estatedeals ever.

Spokesmen forMr. Silverstein andWest-field, a leading shopping-center company,couldn’t be reached for comment.

The deal was the crowing achievementof Mr. Silverstein’s 50-year history as aNew York real-estate investor and devel-oper, capping his comeback from financialproblems in the early 1990s. He triumphedover much larger public companies thanksin part to his experience in dealing withthe Port Authority as the owner of 7 WorldTrade Center.

He developed that tower, which alsocollapsed in yesterday’s disaster, in the1980s on land leased from the Port Author-ity.

One person familiar with the financingsaid the World Trade Center was insuredin case of a terrorist bombing, but notinsured if it was destroyed as an act ofwar. He said the risk was spread amongmany different insurance companies.

The Port Authority developed the com-plex in the 1970s in an effort to revitalize

lowerManhattanand boost trade. Itwas ledin part by David Rockefeller, who, as headof Chase Manhattan Bank, was worriedabout the migration of businesses to Mid-town.

The TwinTowers, which for a short timewere the tallest buildings in the world, be-came one of the symbols of New York City.ItsWindowson theWorld restaurantandob-servation deck were popular tourist attrac-tions.

But the property had a mixed leasinghistory, and its management by the PortAuthority bureaucracy was often criticizedas being inefficient. It also was the sceneof a terrorist bombing in 1993, which shutpart of the complex for months. In themid-1990s the governors of New York andNew Jersey agreed to privatize the com-plex and return the Port Authority to itscore mission of transportation.

For years, bickering between the twostates stalled a decision to proceed with asale or a long-term lease. But, as it turnedout, that delay worked in the Port Authori-ty's favor, because as the years ticked bythe real-estate market improved. The $3.2billion value of the Silverstein group dealwas more than twice what the Port Author-ity expected to get in 1998.

The bidding for the center began heat-ing up a year ago when Silverstein Proper-ties and seven other companies submittedbids. Mr. Silverstein made it into the finalround of four companies by forming a ven-ture with Westfield, which dazzled PortAuthority officials with its plans for retailbusiness in the complex.

Mr. Silverstein, who is now 70 years

old, also strengthened his position by cut-ting a deal with General Motors Corp.’sGMAC Commercial Mortgage Corp.,which agreed to lend him most of the downpayment. Mr. Silverstein also brought intothe deal Lloyd Goldman, the head of an-other New York real-estate family. Mr.Goldman, 43, put together a group of fam-ily members and others that contributedtwo-thirds of the equity in the deal.

In exchange, Mr. Silverstein gave Mr.Goldman a role in running the property,especially in the future.

Mr. Silverstein proved indefatigableduring the bidding process. At one point,he told the New York Post that he andWestfield “were lusting” after the com-plex. After he was hit by a car and brokehis hips shortly before a bidding deadline,he simply continued his work from his hos-pital room.

Mr. Silverstein also came close to los-ing the deal when the Port Authority ini-tially selected Vornado Realty Trust asthe winning bidder. But he was ready tojump back in the fray when Vornado andthe Port failed to conclude a deal.

Even after the Port Authority selectedMr. Silverstein, it was touch-and-go untilhe and Westfield finally signed the con-tract with the Port Authority on April 26.He and his partners didn’t decide to go for-ward with the highly leveraged deal untiljust a few hours before the Port’s dead-line. They rushed down to theWorld TradeCenter and put down their $100 million de-posit.

When they closed the deal in July, thePlease Turn to Page B2, Column 3

s 2001 Dow Jones & Company, Inc. All Rights Reserved. i i i i WEDNESDAY, SEPTEMBER 12, 2001 B1


****EE,MW,SW,WE

212449209/12/2001

P1JW255066-4-B00200-1---XA

will need time to assess the effect of opera-tions that were lost in the collapse of thetowers, Mr. Pitt said. For instance, theNYSE had a number of operations in oneof the two towers, including some regula-tory offices. Regulators also says it is im-possible to know the amount of recordsthat were lost in the various offices of WallStreet firms located in the towers.

In Washington, the President’s Work-ing Group on Financial Markets—madeup of the chief financial regulators, theFederal Reserve, the Treasury, the SEC,and the Commodities Futures TradingCommission—held formal and informalconference calls throughout the day yes-terday, and issued a late-afternoon jointstatement backing the decisions to closemarkets and expressing “confidence thattrading will resume as soon as it is bothappropriate and practical.” One issue tobe weighed by regulators today iswhether to allow some markets, such asthe Chicago futures markets, to reopenprior to other markets.

Soon after the first attack in the heartof the financial center in lower Manhat-tan, markets began announcing that thetrading openings would be delayed. Butthe NYSE and Nasdaq Stock Market, thetwo largest stock markets, never begantrading, as the scope of the damage be-came clear. The SEC said all regionalexchanges, and the American Stock Ex-change also closed for the day.

In addition, most commodity futuresand options markets nationwide shutdown. New York Board of Trade, locatedin an nearby World Trade Center build-ing, was destroyed when the towers col-lapsed. The New York Mercantile Ex-change closed, followed by ChicagoBoard of Trade and Chicago MercantileExchange. Fannie Mae, based in Wash-ington, postponed the scheduled an-

nouncement of its benchmark bills andnotes yesterday in light of the market’sclosure. The Treasury canceled perma-nently yesterday’s four-week bill auction.

Later in the day, another Trade Cen-ter building collapsed, destroying theSEC’s three-floor New York offices. TheSEC’s 300 New York employees had al-ready been evacuated.

Throughout the day, shocked financial-district workers filtered northward alongstreets largely barren except for emer-gency vehicles. Michael O’Brien, a super-visor at the NYSE, said traders and otherstaff had been out on Broad Street watch-ing the fires caused by the impact of theairplanes when the first of the towerscollapsed. “There was black smoke billow-ing down Broad St.,” said Mr. O’Brien,who fled back inside the exchange withcolleagues. “It looked like IndianaJones.”

Trading on the floor, which usuallystarts at 9:30 a.m. Eastern time, neverbegan, said Mr. O’Brien. When the sec-ond plane collided, lights flickered insidethe exchange, according to Mr. O’Brienand two other supervisors whose greentunics were dusted in the fine powderthat coated downtown after the disaster.“They told us to stay calm,” said Mr.O’Brien “But our natural reaction wasthat our building could be a major target.There was a lot of subdued fear on thetrading floor.”

He said that after the buildings col-lapsed, NYSE employees were told tostay inside the building. Injured werebrought into the NYSE off the street, andcarried across the trading floor to a tri-age set up by NYSE medical staff at thenew trading room at 30 Broad Street. Mr.O’Brien said about 20 injured weretreated in the exchange, with four col-lected by ambulances and taken to hospi-tals.

Mr. O’Brien and the other two supervi-sors said the area near the trade centerafter the collapse reminded them of disas-ter images from the eruption of Mount St.Helen’s. “You go onto Wall St. and youcan scoop of vials of dust off the street,”he said.

“It hasn’t sunk in yet,” said anotherNYSE supervisor, who still had debris inhis hair, and didn’t want his name used.“It hasn’t sunk in yet. We hope that Presi-dent Bush, who was elected to do theright thing, does do the right thing.”

Nasdaq officials had a frighteningview of the terrorist attack from theiroffices in the 49th and 50th floors of OneLiberty Plaza, located across the streetfrom the World Trade Center. Scott Peter-son, a spokesman, said he and otherssaw an American Airlines flight “comingin low, wings wagging back and forth”before it crashed in the World Trade Cen-ter.

After the explosion, a group of Nasdaqofficials decided to evacuate the building,making their way through broken glassat street level and the chaos of otherworkers trying to escape the area overthe Brooklyn Bridge.

When the Nasdaq officials flaggeddown a car and found other bridges inBrooklyn closed, they arranged to bepicked up by boat and ferried to Connecti-cut, on route to Nasdaq’s data center inTrumbull to monitor the market situa-tion. Other senior executives set up acommand post in a midtown hotel.

Although most European markets offi-cially remained open yesterday, mosttraders there found it difficult to do muchbusiness. Several firms shut down early,and staff at others were glued to televi-sion screens for news updates. One Ger-man fund manager shrugged off calls,saying it was “wrong to be talking aboutstocks when thousands of Americans are

dying.”Business in London’s financial dis-

trict ground to a standstill yesterday af-ternoon as traders and salesmen, sty-mied by clogged-up telephone lines to theU.S., resorted to watching stunning foot-age on television of the terrorist attacksand the damage they wreaked.

“The biggest worry is the short-termdamage this [terrorist crisis] does to theU.S. economy, which was already border-ing on recession,” said Gary Dugan, a Eu-ropean equity strategist at J.P. MorganFleming Asset Management in London.“There’s huge risk-aversion spreadingthrough the markets; people are just sell-ing.”

Sergio Albarelli, a director at Milanbrokerage Franklin Templeton Sim, fret-ted that closing markets would only com-pound investors’ anxiety. “The most wor-rying aspect is how long markets willstay closed since this has repercussionson all economic activity, and it’s a riskfor stability to keep them closed,” hesaid.

Back in the U.S., those investors ableto contemplate the markets tried to figureout how stocks will react to the tragedy.Al Goldman, chief market strategist atA.G. Edwards, said he fielded more than20 calls from the firm’s brokers through-out the day.

Mr. Goldman, who had been amongthe more upbeat analysts, said the at-tacks will badly hurt the nation’s econ-omy and lower the gross domestic prod-uct during both the third and fourth quar-ters this year, chiefly by crippling con-sumer spending.

“Consumer spirits will be hurt,there’s no doubt,” he said. “People aren’tgoing to want to go to the mall, to dinneror take trips.”—Silvia Ascarelli in London, and GregoryZuckerman and Ken Brown in New York


Continued From Page B1

sions for this.” Munich Re’s coverage isprovided through its U.S. subsidiary,American Reinsurance.

Swiss Re, another big reinsurer, said itwas “not appropriate at this time to com-ment on the financial implications” of thedisaster. A spokeswoman added, “Rightnow, we’re focusing on the fate of our em-ployees in New York. We won’t know finan-cial details for some time.”

The Main PriorityA spokesman for Germany’s Allianz AG

also declined to estimate losses, saying thecompany’s main priority is the well-beingof 400 employees who usually work out ofthe World Trade Center; most are believedto have been evacuated in time, he said.

Among other insurers or insurance-re-lated businesses in the big towers, brokerMarsh & McLennan Cos. had 1,700 employ-ees, of whom about 500 had been accountedfor as of midday. Aon Corp., a broker with1,100 employees assigned to the WorldTrade Center, declined to comment.

A spokeswoman for Lloyd’s of London,the major insurance market, said yester-day afternoon, “We don’t have a databasethat says X insures X, but we will try tofind out.” Soon afterward, the Lloyd’sbuilding in London was evacuated. Lloyd’sofficials couldn’t be reached to commentfurther.

The largest U.S. commercial insurer,New York-based American InternationalGroup Inc., declined to comment onwhether it provided insurance on theWorld Trade Center.

In a news release, property-casualty in-surer Chubb Corp. said early estimatesindicated its pretax loss from the attacks,after reinsurance, would be in the $100million to $200 million range on propertyalone; in the second quarter, Chubb hadnet income of $146.8 million and net writ-ten premiums of $1.6 billion. That esti-mate, however, doesn’t include claims onworkers’ compensation, accident or busi-ness-interruption insurance. The companysaid it was too early to estimate the lossesfrom those lines.

‘A Heck of a Lot Longer’“In the case of a hurricane it normally

takes two to three days to get in there andassess the damage, but this will be a heckof a lot longer than that,” said StephenClark, a spokesman for Britain’s Royal &Sun Alliance Insurance Group PLC. Thecompany does about one-quarter of itsbusiness in the U.S. Its shares fell 15% inoverseas trading in the wake of the newsof the attack, one of numerous Europeaninsurance stocks quickly dumped by inves-tors fearful of a big financial hit.

Life insurers also are likely to face biglosses. However, a spokesman for majorlife insurer Prudential Insurance Co. ofAmerica Inc. said that without knowingthe number of deaths from the attacks,“no one is going to have a firm estimate”of Prudential’s exposure.


South TowerCINDE Continental Co. (insurance)Xerox Document Co. (manufacturing) ....... BSMTJohnston & Murphy ................................... concordNichols Foundation (government/schools)..... GRNDVerizon commun. (telecom)............................. 9-12Colortek Kodak Imaging (services) ........................ 1EuroBrokers (investments).................................... 12Charna Chemicals (manufacturing)...................... 14Paging Network, New York (telecom)................... 14Patinka intl. Inc. Business (services) ................... 14Union Bank of California Intl. .............................. 14Candia Shipping (wholesalers)............................. 15James T. Ratner, law (law).................................. 15John J. McMullen Assoc. (engineers)................... 15John W. Loofbourrow Assoc.(investments) ........... 15Orient Intl............................................................. 15Mancini Duffy (architects) .................... 15, 21, 22National Develop & (research) ........................... 16N.Y. Inst. of Finance (consulting)......................... 17Alliance Consulting (consulting) ........................... 18Caserta & Co....................................................... 18Chen, Lin, Li, & Jiang, LLP (investments)............ 18Intera Group Inc. (employ agencies) ................... 18Abad, Castilla & Mallonga (law).......................... 18Pines Investment ................................................ 18Professional Assist. & Consultng.......................... 18Weiland intl. (investments) .................................. 18Showtime Pictures ....................................... 18,107Waterfront Commission of New York Harbor ...... 19N.Y. Shipping Assoc. (transp./util.)................. 19,20Thacher, Proffitt & Wood (law) ............ 20, 38-40Adecco SA (employ agencies) ............................ 21Career Engine (research) .................................... 21Charoen Pokphand USA (trans./util).................... 21Antal intl. (employ agencies) .............................. 22Sinochem American Holdings (investments)......... 22Washington Mutual ............................................ 22Unistrat Corp. of America (consulting).................. 23SCOR U.S. Corp. Agencies (insurance) ........ 23,24Allstate Co. (insurance) Agencies ........................ 24China Chamber of Commerce Organizations........ 24December First Productions, LLC ........................ 24Globe Tour & Travel Tours................................... 24Sinolion (USA) .................................................... 24TD Waterhouse Group (investments) ................... 24Sun Microsystems Comp. (services)............... 25,26Big A Travel (Travel) ............................................ 28Hua Nan Commercial Bank (financial)................. 28law Office of Joseph Bellard (law) ....................... 28New York Stock Exchange ............................ 28-30Weatherly Securities Corp. (investments)............. 29Hartford Steam Boiler Agencies (insurance) ......... 30Oppenheimer Funds (investments)................ 31-34Commerzbank Capital Markets (investments) ......... 32ABN-AMRO Mortgage Brokers ............................. 35Frenkel & Co. (insurance) Agencies ........ 35, 36Sitailong Intl. USA .............................................. 40Morgan Stanley (investments)........ 43-46,56,59-74Guy Carpenter Agencies (insurance)............. 47-54Fireman's Fund Co. (insurance)........................... 48Seabury & Smith (insurance) ............................. 49Garban Intercapital .............................................. 55First Commercial Bank (financial)........................ 78Fuji Bank (Banks) ......................................... 79-82bepaid.com......................................................... 84Harris Beach & Wilcox, LLP (law)........................ 85Keefe, Bruyette,Woods (investments) ...... 85, 88, 89NY State Dept. of Taxation & Finance ......... 86, 87Corp. Service Co. ................................................ 87Fiduciary Trust Co. Intl. Banks ...... 90,94,95,96,97Gibbs & Hill (engineers) ..................................... 91Raytheon Co. (manufacturing).............................. 91AON corp. Agenc. (insurance)............. 92, 99, 100Regus Business Centres Employment Agenc........ 93Sandler O'Neill & Partners (investments) .......... 104Atlantic Bank of New York Banks ..................... 106

North TowerAlan Anthony (consulting). ......................................Cedel Bank (investments) .......................................LG (insurance) Co. ..................................................Northern Trust Intl. Banking Corp. financial ....... inst.Royal Thai Embassy Office (government/schools) ..Tes USA (investments) ............................................United Hercules Inc. Travel Agencies/Tours..............NY Coffee Station ....................................................Ann Taylor Loft............................................... CNCRStrawberry Retailers....................................... CNCRAvis................................................................. LBBYDelta Airlines................................................... LBBYOlympia Airport Express ................................. LBBYLehman Bros. ............... suites 4047, 3841, 3941Port Authority of New York & New Jersey.......................................... 3, 14, 19, 24, 28, 31Gayer, Shyu & Wiesel Accountants ....................... 5Thai Farmers Bank ..................................................

Banks/financial inst. ............................................. 7Amerson Group Co. Organizations ......................... 8Bank of America.....................................................Banks/financial inst. ................................ 9-11, 81Porcella Vicini & Co............................................. 11Primarch Decision Economics (consulting)........... 11Instinet (investments)................................... 13, 14Dun & Bradstreet (Research).............................. 14Landmark Education corp. (government/schools).15California Bank & Trust Banks/financial inst........16Zim-American Israeli Shipping Co................ 16, 17Empire Health Choice Agencies (insurance).................................. 17, 19, 20, 23, 24, 27-31Avesta Computer (services), Ltd. Data Processing.21Continental Logistics Business (services)............. 21Dongwon Securities Co. Ltd. (investments).......... 21Dr. Tadasu Tokumaru, M.D. Doctors .................... 21Friends Ivory & Sime (investments)..................... 21Friends Villas Fischer Trust (investments) ............ 21Infotech................................................................ 21law Offices of Roman V. Popik (law) .................. 21Lief Intl. USA (manufacturing) ............................. 21Tower Computer Service Retailers........................ 21United Seamen's Service AMMLA (Social services).21Cheng Xiang Trading USA Inc. (Computer services)........................................................................... 22Chicago Options Exchange Corp. (investments)....22G.C. Collection Agencies (services) ..................... 22Gold Sky Inc. (manufacturing)............................. 22Kaiser Overseas Inc. (manufacturing) .................. 22Karoon Capital Management (investments) ......... 22MLU Investment .................................................. 22P. Wolfe Consult. (consulting).............................. 22The SCPIE Companies ......................................... 22Tai Fook Securities (investments)................. 22, 39Unicom Capital Advisors LLP (investments).....22, 84R.H. Wrightson & Assoc. (investments) ............... 25Garban-Intercapital (investments) .................. 25-26China Patent & Trademark USA (law) ................ 29World Travel Travel Agencies/Tours ..................... 29Banco LatinoAmericano de Exportaciones ............ 32Chang HWA Commercial Bank ............................ 32Rohde & Liesenfeld ........................................... 32Berel & Mullen (law)............................................ 33China Daily Distribution Corp. (services) .............. 33Data Transmission Network Corp. ........................ 33Golden King (USA) Limited .................................. 33Hu Tong Intl. (USA) Co., Ltd. (wholesalers).......... 33Koudis Intl. Inc. ................................................... 33MANAA Trading Group (investments).................... 33MIS Service Co. .................................................. 33Rachel & assoc. (manufacturing) ......................... 33Serko & Simon (law) .......................................... 33Anne Pope, law Offices of (law) .......................... 35Kemper insurance Companies (insurance) ....35,36Commodity Futures Trading Comm. (investments)37government of Thailand........................................ 37Regional Alliance Small Contractors Construction .38Turner Construction Co. Construction.................... 38Lehman bros. ................................................ 38-40Overseas Union Bank, Ltd. Banks/financial inst....39The Cultural Inst. Retirement Systems Trusts........ 39Xcel Federal Credit Union ..Banks/financial Inst....39Mechanical Floor ........................................... 41-43N.Y. Society of Security Analysts ......................... 44American Lota Intl. ............................................... 45China Construction America Construction ............. 45Dunavant Commodity Corp (investments)............. 45Employee Merit (Employ Agencies)....................... 45Fertitta Enterprises................................................ 45M.A. Katz, CPA Accountants................................. 45Sassoons Inc. ....................................................... 45Security Traders Assoc. Organizations................... 45SRA...................................................................... 45Streamline Capital, LLC........................................ 45The Co. Store Retailers ........................................ 45Pure Energy Corp. (wholesalers)................... 45, 53ASTDC Organizations ............................................ 46Auto Imperial Co. (wholesalers)............................ 46Blue Sky Technologies Computer (services) ......... 46Can-Achieve (consulting)....................................... 46Consolidated Steelex Corp. (manufacturing).......... 46Dahao USA Corp (wholesalers) ........................... 46J & X Tans Intl. ................................................... 46Kanebo Information Systems Corp., U Computers.46Meganet Management consult., Inc Computers ... 46Prospect Intl. ....................................................... 46Sinopec USA (wholesalers) .................................. 46Suggested Open Systems Computer (services).....46Suntendy America (wholesalers) .......................... 46T&T Enterprises Intl. Inc (miscellaneous) .............. 46Yong Ren America ............................................. 46G. Z. Stephens (employ agencies)........................ 47NFA/GGG ........................................................... 47Pacific American Co. (wholesalers)....................... 47Quint Amasis, L.L.C. Business (services) .............. 47W.J. Export-Import (wholesalers)............................ 47

American TCC Int'l Group (investments)....... 47, 90Dai-Ichi Kangyo Trust Co. Trusts..................... 48-50AT&T Corp. (telecom) .......................................... 51C & P Press Business (services) ......................... 51Bramax (USA) Corp. (manufacturing).................... 52Gayer Shyu & Wiesel (investments)...................... 52Hill Betts & Nash, LLP (law) ............................... 52Howly (US) corp. ................................................. 52Leeds & Morrelli (law).......................................... 52Okasan Intl. (American) Inc. (investments) .......... 52RGL Gallagher PC Accountants ............................ 52Richard A. Zimmerman, Esq. (law) ...................... 52The Williams Capital Group ................................. 52Temenos USA (wholesalers) ........................ 52, 84A I G Aviation Brokerage (insurance) Agencies .. 53Bank of Taiwan.......................... .......................... 53China Resource Products USA Ltd......................... 53Keenan Powers & Andrews (law) ......................... 53LoCurto & Funk (investments) .............................. 53Natural Nydegger Transport Corp. ........................ 53Pacrim Trading & Shipping ........................... 53, 78Brown & Wood, L.L.P. (law) ...................... 54, 56-59Pace University (government/schools) .................. 55World Trade Inst. .................................................. 55Asahi Bank, Ltd. ......................... .......................... 60Airport Access Program ................... ................... 63Hal Roth Agncy (insurance) Agencies.................... 77Jun He law Office, LLC (law) ................................. 77Martin Progressive LLC Computer (services)........... 77New-ey Intl. Corp. Business (services).................... 77World Trade Centers Assoc. Organizations.............. 77Avenir Computer (services) .................................. 78Baltic Oil Corp. ..................................................... 78Cedar Capital Management Assoc. ...................... 78Cheng Cheng Enterprises Holding Inc Retailers ...... 78Geiger & Geiger (law)............................................ 78Hyundai Securities Co., Ltd. (investments) ............. 78Intl. Trade Center Public Relations Agencies........... 78Korea Local Authorities Foundation ....................... 78Meridian Ventures Holding ................................... 78Phink Path (Employ Agencies)............................... 78Traders Access Center (investments)...................... 78Daynard & Van Thunen Co. (insurance) Agencies .. 79First Liberty Investment Group (investments).......... 79intl. Office Centers corp. Business (services).......... 79Nikko Securities.......................... ......................... 79Okato Shoji Co., Ltd. Computer (services).............. 79Securant Technologies Computer (services) ........... 79Agricor Commodities Corp. (investments) .............. 80Intrust Investment Realty ...................................... 80Noga Commodities Overseas (investments)............ 80RLI Insurance Co. (insurance)................................ 80Shizuoka Bank Ltd........................ ....................... 80The Beast.Comm Computer (services).................... 80Network Plus (telecom) ....................................... 81New Continental Enterprises.................................. 81NY Metro Transp. Council (government/schools).....82eMeritus Commun. (telecom) ............................... 83General (telecom)................................................. 83Global Crossings Holdings Ltd. Computer (services).. 83Lava Trading, LLC ................................................. 83Taipei Bank............................. ............................. 83Bright China Capital, Ltd. (investments).................. 84David Peterson (law) ............................................ 84KITC (investments)................................................ 84LG Securities America (investments) ..................... 84San-In Godo Bank Ltd. .................... ..................... 84SMW Trading Corp. (investments) ......................... 85Thermo Electron ................................................... 85Julien J. Studley Real Estate ................................. 86May Davis Group (investments)............................. 87Barcley Dwyer....................................................... 89Broad USA (wholesalers)....................................... 89CIIC Group (USA), Ltd. (investments) .................... 89Daehan Intl. (investments) .................................... 89Drinker Biddle & Reath (law)................................. 89Metropolitan Life Co. (insurance) ......................... 89Mutual Intl. Forwarding.......................................... 89Strategic Commun. (telecom)................................ 89Wai Gao Qiao USA (consulting)............................. 89Wall Street Planning assoc. .................................. 89The Chugoku Bank, Ltd.................... ................... 90American Bureau of Shipping (engineers) ............. 91Fred Alger Management (investments) .................. 93Marsh USA (insurance) Agencies ................ 93-100Kidder Peabody & Co. ....................................... 101Cantor Fitzgerald Securities (investments) .. 101-105The Nishi-Nippon Bank, Ltd. .............. ............... 102Channel 4 (NBC) (television) .............................. 104Windows on the World Retailers ......................... 106Greatest Bar on Earth ....................................... 107World Trade Club................................................ 107Channel 11 (WPIX) (television)............................ 110Channel 2 (WCBS) (television) ........................... 110Channel 31 (WBIS) (television) ........................... 110Channel 47 (WNJU) (television)........................... 110Channel 5 (WNYW) (television)............................ 110CNN................................................................... 110

TENANTS (INDUSTRY) FLOOR(s)/SUITE(s) TENANTS (INDUSTRY) FLOOR(s)/SUITE(s) TENANTS (INDUSTRY) FLOOR(s)/SUITE(s)

Full List Of World Trade Center TenantsInsurers May FaceBiggest Losses Ever:More Than $10 Billion

Attack Shuts U.S. Markets and Causes Overseas Declines

Silverstein group paid another $563 mil-lion, which they borrowed from GMAC.GMAC raised that money through an is-sue of commercial mortgage-backed secu-rities in August, which was a major suc-cess thanks to the prominence of the prop-erty. The rest of the $3.2 billion value ofthe deal was to come from rent paymentsstarting at about $100 million a year.

Mr. Silverstein finally had his mo-ment in the sun in late July when heaccepted the keys from the governors ofthe two states in a ceremony under theTwin Towers. At the ceremony, he toldthe story of meeting the leadership ofChina in the 1993 and how they recog-nized the complex.

“It identifies New York,” he said.


World Trade CenterRecently Came UnderPrivate Firm’s Control

A

Airborne ..................................... A3Air France................................... A3Akamai Technologies ................. A4Alcatel SA................................... B3Allianz AG .................................. B2A.M. Best.................................... B1American Intl Group .................. B2AMR Corp. .................................. A3AmSouth Bancorp....................... B3Amtrak ....................................... A3Andersons................................... B3AOL Time Warner ....................... A6Aon............................................. B2Aramark ..................................... A2AT&T............................................ A3AT&T Wireless Services ........... A16

B

Bank of America......................... B3Berkley W.R. ............................... B1BP .............................................. A2Bright Horizons Family Solutions A2Brink’s......................................... B3

C

Cantor Fitzgerald ......................... B1CanWest Global Communications

.............................................. A4Cargill......................................... B3Chevron....................................... A2Chubb ........................................ B2Citigroup .................................... B3CMCIC ........................................ B3

D

DaimlerChrysler .......................... A4Disney Walt ........................... A4,A6Dynegy .................................. A2,A6

E-F

Edison International.................... A2Electronic Arts ............................. A3Enron .................................... A2,A6Exelon ........................................ A2Exxon Mobil ............................... A2FedEx ......................................... A3Ford Motor ................................. A4

Franklin Resources .................... B1Fred Alger Management............. B1

G

Gap............................................. A4General Electric .................. A6,A16General Motors ..................... A4,B1Gillette ....................................... A4

H

Harris Beach .............................. B1Hertz .......................................... A3Hollinger ..................................... A4

I

InfoCom ................................... A15Innogy PLC ............................... B3

J

J.P. Morgan Chase...................... B3

K

Keefe Bruyette & Woods ........... B1Kinder Morgan ........................... A2Knowledge Learning.................... A2

L

Lloyd’s of London ...................... B2

M

Major League Baseball .............. A4Marriott....................................... A3Marsh & McLennan.................... B2MassMutual Financial Group ..... B1MBNA Europe Funding PLC ....... B3Mediasmith................................. A3Microsoft..................................... A6Morgan Stanley.......................... B1Munich Re.................................. B1

N

Natexis Banques Populaires ...... B3Network Plus .............................. B1News Corp.................................. A6Northwest Airlines....................... A3

O

Oracle ........................................ A4

P

PBS Coal.................................... A6Phillips Petroleum....................... A2Prudential Insurance .................. B2

R

Reliant Energy............................. A2Rogers Communications .......... A16Royal & Sun Alliance Insurance

Group..................................... B2Royal KPN NV............................. B3

S

Sears Roebuck ........................... A4Shell Oil .................................... A2Sophia SA.................................. B3Sprint ........................................ A3Starbucks ................................... A4Stilwell Financial......................... B1Swift Transportation.................... A3Swiss Re .................................... B2

T

Telenisus..................................... A3Thai Airways International........... A3Tribune Co. ................................ A3

U

UAL ............................................ A3United Parcel Service ................ A3U.S. Bancorp ............................. B3

V

Valero Energy.............................. A2Verizon Communications ............ A3Viacom........................................ A6Vornado Realty Trust.................. B1

W

Wachovia .................................... B3Washington Mutual..................... B3Westfield America....................... B1Williams...................................... A2

X

Xerox......................................... A16

Y

Yahoo.......................................... A3

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This index of businesses mentioned in today’s issue of The Wall Street Journal is intendedto include all significant references to parent companies. First references to these companiesappear in boldface type in all articles except those on page one and the editorial pages.

B2 THE WALL STREET JOURNAL WEDNESDAY, SEPTEMBER 12, 2001 * * * *


**EE,MW,SW,WE

212449309/12/2001

P1JW255017-2-B00300-1---XA

MARKETS DIARY 9/11/01Notice to Readers: Data for Stocks, Bonds, Interest and Commodities sections reflectSept. 10 trading. All U.S. markets were closed on Tuesday. The DJ-AIG Commodity indexreflects Sept. 11 trading.

STOCKS Dow Jones Industrial Average 9605.51 —0.34

11000

10000

9000

8000

7000

10000

9800

9600

9400

9200CLO

SED

M A M J J A S O N D J F M A M J J A S T W T F M T2000 20012001

NET PCT 12-MO 12-MO 12-MO FROMINDEX CLOSE CHG CHG HIGH LOW CHG % 12/31 %

DJIA 9605.51 —0.34 unch 11337.92 9389.48 —1589.98 —14.20 —1181.34 —10.95

DJ US Total Market 252.57 +1.20 +0.48 349.90 251.37 —97.33 —27.82 —54.31 —17.70

S&P 500 1092.54 +6.76 +0.62 1489.26 1085.78 —396.72 —26.64 —227.74 —17.25

Nasdaq Comp. 1695.38 +7.68 +0.46 3913.86 1638.80 —2200.97 —56.49 —775.14 —31.38

Russell 2000 440.73 —4.46 —1.00 539.21 425.74 —92.89 —17.41 —42.80 —8.85

INT'L STOCKS DJ World Stock Index (excl. U.S.) 117.94 —3.07

180

160

140

120

100

128.0

126.0

124.0

122.0

120.0M A M J J A S O N D J F M A M J J A S T W T F S M T2000 20012001

NET PCT 12-MO 12-MO 12-MO FROMINDEX TUE CHG CHG HIGH LOW CHG % 12/31 %

DJ World (ex. U.S.) 117.94 —3.07 —2.54 168.93 117.94 —50.99 —30.18 —38.93 —24.82

MSCI EAFE(Prelim.) 1088.54 —35.42 —3.15 1560.06 1088.54 —471.52 —30.22 —403.87 —27.06

DJ Euro STOXX 50 3220.27 —220.38 —6.41 5222.37 3220.27 —2002.10 —38.34 —1552.12 —32.52

FTSE 100 (London) 4746.0 —287.7 —5.72 6555.5 4746.0 —1809.5 —27.60 —1476.5 —23.73

Nikkei 225 (Tokyo) 10292.95 +97.26 +0.95 16458.31 10195.69 —5747.28 —35.83 —3492.74 —25.34

Xetra DAX (Frankfurt) 4273.53 —396.60 —8.49 7136.30 4273.53 —2862.22 —40.11 —2160.08 —33.57

CAC-40 (Paris) 4059.75 —323.99 —7.39 6697.80 4059.75 —2638.05 —39.39 —1866.67 —31.50

BONDS 10-Year Treasury Note Yield (4 p.m.) 4.839% +0.059

7.0%

6.0

5.0

4.0

3.0

5.00%

4.90

4.80

4.70

4.60CLO

SED


INDEX MON MON YIELD FRI FRI YIELD 12-MO HIGH 12-MO LOW YTD %CHG

Lehman Brothers Long T-Bond 10025.36 5.42% 10074.22 5.37% 10077.33 8767.76 +5.37

DJ 20 Bond (Price Return) 103.66 7.09 103.91 7.07 104.08 95.34 +6.42

Merrill Lynch Mortgage 1023.98 6.20 1024.41 6.16 1024.99 916.38 +6.51

Bond Buyer municipal 107-14/32 5.18 107-15/32 5.18 107-22/32 98-03/32 +4.02

Merrill Lynch corporate 1192.31 6.18 1194.95 6.14 1195.63 1043.64 +9.51

INTEREST Federal Funds (N.Y. Fed, Prebon Yamane) 3.50% +0.08

7.0%

6.0

5.0

4.0

3.0

3.70%

3.60

3.50

3.40

3.30CLO

SED


ISSUE CLOSE MON YEAR AGO 12-MO HIGH 12-MO LOW

3-month T-bill Closed 3.19% 5.92% 6.23% 3.19%

3-month CD (new) Closed 3.24 5.08 5.48 3.24

Dealer Comm. Paper (90 days) Closed 3.22 6.48 6.58 3.22

3-month Eurodollar deposit 3.38 3.38 6.69 6.75 3.38

LIBOR (3-month) 3.36 3.36 6.66 6.82 3.36

U.S. DOLLAR J.P. Morgan Index vs. 19 Currencies 118.4 +0.2

125

120

115

110

105

120.00

119.00

118.00

117.00

116.00M A M J J A S O N D J F M A M J J A S T W T F M T2000 20012001

LATE LATE DAY'S DAY'S LATE NYCURRENCY TUE MON HIGH LOW 12-MO HIGH 12-MO LOW

British pound (in U.S. dollars) 1.4751 1.4579 1.4767 1.4533 1.5029 1.3727

German mark (per U.S. dollar) 2.1389 2.1744 2.1336 2.1836 2.3650 2.0421

Japanese yen (per U.S. dollar) 119.16 120.93 118.55 122.05 126.68 106.58

Canadian dollar (in U.S. dollars) 0.6384 0.6401 0.6414 0.6361 0.6750 0.6329

Euro (in U.S. dollars) 0.9144 0.8995 0.9169 0.8955 0.9578 0.8270

COMMODITIES DJ-AIG Commodity Index (1991=100) 101.329 +0.168

120

110

100

90

80

103.00

102.00

101.00

100.00

99.00M A M J J A S O N D J F M A M J J A S T W T F M T2000 20012001

AT CLOSECOMMODITY CLOSE CHANGE FRI YR AGO 12-MO HIGH 12-MO LOW

Gold (Comex spot), troy oz $271.60 $—1.50 $273.10 $273.10 $287.40 $255.10

Oil (Nymex crude future), bbl. 27.63 —0.40 28.03 35.14 37.20 24.70

Wheat (#2 hard KC), bu. 3.1550 +0.0150 3.1400 3.0425 3.5850 2.9575

Steers (S. Dakota choice), 100 lb. 70.00 unch 70.00 63.20 81.00 63.20

The everyday processing of money, a24-hour system that the American publicrelies upon to pay the light bill and mort-gage and deposit and withdraw money,was disrupted in some parts of the systemin the hours after the terrorist attacks inNew York and Washington, D.C.

Thousands of bank branches, normallyopen until 4 p.m. local time, closed early.

Check-processing centers that handle peo-ple’s paper checks were down as well. Thenationwide system that carries paperchecks from bank to bank and Federal Re-serve Banks in between was temporarilyhalted because all air traffic wasgrounded.

Wachovia Corp., the Charlotte, N.C.,bank that recently changed its name fromFirst Union Corp., said it shuttered all2,900 branches it operates from New Jer-sey to Florida. In downtown Atlanta, asign on a branch said, “Closed due to emer-gency.” Another branch sign said, “Thenational situation warrants us to be verycautious and to protect our customers andemployees’ safety.” A bank spokeswomansaid the branches will open today at 9 a.m.

In Washington, Federal Reserve offi-cials issued a statement intended to pre-serve calm in the bank-ing system, saying thatthe central banking sys-tem “is open and oper-ating” and that theFed’s discount windowproviding banks withneeded funds “is avail-able to meet liquidityneeds.”

Fed officials con-vened a conference callat 11:30 a.m. Eastern time yesterday totake the pulse of the nation’s banking sys-tem. At that time, it found minimal disrup-tions. Officials said there were uncon-firmed reports of delays with check pro-cessing, since many checks rely on airtransportation, but that the Fed systemwas processing the checks that it had.

Most banks made no move to limit ATMwithdrawals. To avoid a run on the cash atbanks, some bank managers were in-structed to explain that deposits are feder-ally insured. Still, several banks said ahandful of customers walked into

branches to withdraw their entire ac-counts. Washington Mutual Inc., Seattle,said it yesterday restricted withdrawals to$2,500 a day per person.

Regional Federal Reserve banks in theMidwest reported contacts from anxiousbank executives seeking assurances thatthe Fed system was operating and thatcash was available. Regional Fed officialstook their own security measures. TheMinneapolis Fed bank, for example,halted Brink’s Inc. trucks from coming inor out from 10 a.m. to 11 a.m. but resumeddeliveries after that.

Enough cash appeared to be on hand atthe Fed’s 12 regionaldistrict banks to con-tinue operations with-out disruption for atleast 48 hours. Beyondthat, the system’s effec-tiveness would betested if it couldn’tphysically movechecks and cash by air,said a Federal Reserveofficial. That officialsaid cash would flow, but at a much slowerpace.

The real crunch, created by the ground-ing of all U.S. air traffic, was on a check-transfer system largely invisible to the av-erage consumer. AirNet Systems Inc., Co-lumbus, Ohio, which hauls checks formore than 100 of the nation’s biggest

banks, was forced toground its fleet of 120Lear jets and twin-en-gine aircraft and waspreparing yesterday tomobilize a slower-mov-ing truck operation,usually used only onweekends, if its planescan’t fly tonight.

“Some shippers willbe in a very difficult

position,” said Joel Biggerstaff, AirNet’schairman, president and chief executiveofficer.

Another test was expected to come yes-terday evening. That is because on a dailybasis, from 8 p.m. to 6 a.m., air-cargocarriers carrying millions of paper checksoperate more than 200 flights to deliverchecks to 45 Fed-processing centers.

Failure to meet check-delivery dead-lines can wreak havoc in the U.S. financialsystem. When a check is written andcashed, there is a brief period as moneyappears simultaneously in banking institu-tions on either end of the transaction. And

that creates “float,” which, according tothe Fed, exaggerates the amount of moneyin the nation’s banking system and has a“significant impact on the Fed’s day-to-day monetary policy decisions.” The goalof the check-relay network, adds the Fed,is to deliver checks on time to minimizethat float.

Pat Barron, first vice president of theAtlanta Fed, which coordinates the Fed’sregional-transfer system, said check re-lays would be disrupted after the FederalAviation Administration shut down the na-tional air-traffic system. But many checksstill would be delivered by trucks, he said,

adding, “hopefully,we’ll not have majordisruption in every lo-cation.”

Banks at the epicen-ter of the terrorism inNew York, J.P. Mor-gan Chase & Co. andCitigroup Inc.’s Cit-ibank, struggled to getemployees safelyhome. Others outside

the horrific blasts themselves scrambledto operate as best as possible. U.S. Ban-corp, Minneapolis, Minn., said it is keep-ing the majority of its branches open.Wachovia and Bank of America Corp.,whose towers stand over downtown Char-lotte, N.C., shuttered their headquarters.SunTrust Banks Inc., Atlanta, kept allbranches open except 376 offices in Wash-ington, D.C., Virginia and Maryland.

Banks tried to find a way around thegrounding of the air traffic by ramping updelivery by armored car or truck. Am-South Bancorp., Birmingham, Ala., saidless than 20% of its three million papertransactions are transported by plane. “Aswe speak, we are going after it [the trans-actions handled by air] with ground,” saidDavid Rickey, AmSouth spokesman.

In New York, depositors found thatsome automated-teller machines from sev-eral banks, including J.P. Morgan Chaseand Citigroup, were running low on cash.But bank officials said this was a problemwith restricted traffic, which kept deliv-ery trucks from replenishing machines ata time when many consumers were mak-ing extra cash withdrawals. There wereno reports that systems themselves werein any way affected. “We are focused tomaintaining access to service for our cus-tomers,” Citigroup said in a statement.—Calmetta Coleman and Amy Merrick in

Chicago, and Jathon Sapsford in NewYork, contributed to this article.

Fed officials issued astatement saying thecentral banking system‘is open and operating.’

Banxquotes Money Markets .......... B5Bond Market Data Bank ............... B5Cash Prices ................................... B4Commodity Indexes........................ B3Currency Cross Rates .................... B5Dividend News ...............................B5DJ Electricity Price Indexes ........... B5

DJ Global Indexes ......................... B4DJ Global Groups...........................B5DJ Global Sectors ..........................B4DJ Specialty Indexes...................... B4Foreign Markets..............................B4Foreign Exchange ...........................B3Futures Options ............................. B5

Futures Prices.................................B5Insider Holdings..............................B5London Metal Prices ......................B5Markets Diary ................................ B3Money Rates...................................B5World Stock Market Index ............. B4

By Scott KilmanStaff Reporter of The Wall Street Journal

The closure of the New York exchangesshut down the Chicago futures markets,creating a situation in the Farm Belt notseen since the Chernobyl nuclear plant ex-plosion in April 1986: nobody knew theprice of a bushel of U.S. grain yesterday.

When the grain futures contract-trad-ing pits failed to open at the ChicagoBoard of Trade, everyone from small-towngrain elevators to giant exporters such asCargill Inc. were unable to hedge theirrisks of buying and selling commodities.

Instead of quoting farmers a flat pricefor their grain, commodity companies yes-terday took the extraordinary step of offer-ing farmers a discount or premium on theprice that is established when futures trad-ing resumes. Few farmers took the offer.

Andersons Inc., a major grain han-dling concern based in Maumee, Ohio, or-dered elevators located in about a dozenMidwest towns not to post any grain pricesfor farmers to see. “We don’t know theprice of a bushel of grain today,” saidCraig Parr, central hedger at Andersons.

Grain continued to flow at a normalpace yesterday to millers and exporters.Several grain processors yesterday saidthey have ample supplies to run their millsfor the foreseeable future. But some pro-cessors might have problems operating atnormal levels if trading doesn’t return tonormal by Friday, industry officials said.

The last time grain handlers took suchan unusual step was when the Chernobylexplosion ignited a huge rally on specula-tion that escaped radiation might damagethe then-Soviet Union’s grain belt.

The closure of the commodity marketsalso forced the U.S. Agriculture Depart-ment to postpone the release of severalmarket-moving crop reports until Friday.

It isn’t clear how soon the ChicagoBoard of Trade and the Chicago Mercan-

tile Exchange will resume normal trading.The trading pits related to equity marketsat the two exchanges, as well as the Chi-cago Board Options Exchange will likelystay closed until the major stock ex-changes reopen. A quick return to busi-ness in the commodity pits was blockedwhen the Merc decided late yesterday notto operate its after-hours electronic trad-ing system through the night.

The CBOT and Merc suspended opera-tions at the beginning of the day and sentthousands of traders into the streets ofChicago’s financial district, triggering astampede by high-rise office towers toevacuate, including the nearby 1,450-foottall Sears Tower. Grim office workersquickly clogged train stations and sub-ways. Street traffic nearly became grid-locked.

By the afternoon rush hour, downtownChicago was nearly deserted, and lookedlike it does on quiet Sunday. An electronicstock market sign on the corners of La-Salle and Adams blinked 0.

Commodity exchanges outside Chicagoand New York were also closed yesterday;including the Kansas City Board of Trade,the Minneapolis Grain Exchange and theWinnipeg Commodity Exchange.

By Henry J. PulizziAnd Richard BarleyDow Jones Newswires

LONDON—The European corporatebond market was sidelined after the at-tacks on the World Trade Center and Pen-tagon.

Trading effectively came to a halt af-ter the first explosion, as dealers focusedon their televisions. Many London invest-ment banks sent employees home early,and many traders who remained were toostunned to continue working.

In the U.S., bond trading shut downalong with other financial markets, andtrading will also be closed today, as recom-mended by the Bond Market Associationtrade group. “We’re recommending thatthe market remain closed. We’ll take it ona day-by-day basis,” said Michael Dorfs-man, BMA vice president for media rela-tions. “We’ll be following our standardprocedures of consulting with our mem-bers.”

The group represents bond dealers,many of whom are located within a fewblocks of the center of the disaster in NewYork City’s financial district.

Before the explosions stopped activity,primary Eurobond issuance had beenbrisk, while in the secondary marketsspreads on telecommunications operators’debt tightened, and equipment manufac-turers underperformed.

U.K. power group Innogy PLClaunched the sterling tranche of its two-pronged funding exercise, offeringGBP275 million of 30-year debt to price at1.95-1.97 percentage points over gilts viaRoyal Bank of Scotland, Deutsche Bankand Salomon Brothers. The company’sEUR500 million three-year deal, launchedMonday, is yet to price.

MBNA Europe Funding PLC launcheda EUR500 million five-year bond that isset to price at 1.15 percentage points overswaps later Tuesday via Barclays Capitaland Westdeutsche Landesbank.

Meanwhile, French real estate invest-ment and management company SophiaSA finally surfaced with a EUR250 million10-year bond that pays a coupon of 6.125%,with Natexis Banques Populaires and CM-CIC as lead managers.

In the secondary markets, spreads ontelecom operators’ debt tightened by up to0.05 percentage point in the long end ofthe curve as equity markets posted a re-covery Tuesday morning. Flows, how-ever, were limited, traders said.

However, Royal KPN NV debt was trad-ing down as prices consolidated followingMonday’s rally, although bid-offerspreads were reported to be narrowing.An analyst at Moody’s Investors Servicesaid that while the news of a new EUR2.5billion credit facility through 2004 for KPNwas very positive, the company’s Baa3rating remains on downgrade review.

Aidan Fisher, telecoms analyst atMoody’s, said that for KPN, “we felt thatit would be inappropriate to take the com-pany off review until we felt completelycomfortable that a liquidity issue wouldn’tarise in 2002, or for that matter 2003.”

Elsewhere, telecom equipment manu-facturer Alcatel SA’s bond spreads wid-ened out around 0.20 percentage points inearly trading after Moody’s downgradedthe company to Baa1 from A2. Moody’srating is now in line with Standard &Poor’s BBB+ assessment. Both agencieshave a negative outlook on the credit.

Auto debt continued to be soft earlyTuesday, with the prospect of more supplyfrom Ford Motor Credit Co weighing onthe market, another credit strategist said.

By Michael R. SesitStaff Reporter of The Wall Street Journal

LONDON—Terrorist attacks on the U.S.sent the dollar tumbling in global trading.

The day’s events highlighted that “if theU.S. is as vulnerable as it seems to be,there’s no such thing as a safe place,” asone trader put it.

In late London trading, the euro stood at91.44 U.S. cents, up from 89.95 cents late inNew York Monday. The dollar tumbled to119.16 yen from 120.93 yen late Monday; theBritish pound rose to $1.4751 from $1.4579.

Meanwhile, currencies seen as havensin time of turmoil, such as the Swiss franc,rose sharply.

“This is the end of a golden epoch for theU.S., from the collapse of the Nasdaq [sinceMarch 2000] to the elimination of our feelingof indestructibility,” said Andrew Busch, acurrency strategist at BMO Nesbitt Burnsin Chicago, in a note to clients. “When ter-rorists attack the mainland of the U.S., ourentire society is put into question. Thischanges everything.”

Visibly shaken by the events they sawon television screens, many traders and cur-rency analysts were loath to talk, both outof respect for victims of the terrorist at-tacks, uncertainty about who was behindthem and what would be the political andeconomic consequences. “First of all, youdon’t know what’s going on; and two, tomake a market call on the back of this isoutrageous,” one currency strategist at abig U.S. bank said.

Just before the first passenger plane hitone of the twin World Trade Center towersin lower Manhattan, the euro was tradingat about 89.50 cents, sterling stood at$1.4550, and the dollar was changing handsat 122 yen. From then on, the dollar see-sawed as news trickled in.

“First, there was a knee-jerk reaction,[with traders] thinking it’s a disaster, but

an accident,” said Tony Norfield, globalhead of foreign-exchange research at ABNAmro Bank in London. “Usually with acci-dents—even if very bad ones with loss ofhuman life—there’s no lasting market im-pact.” The euro shot up about a cent to 90.50cents, before falling back to about 89.75cents.

“Then, when news of a second planecame through, i`t became clear it wasn’t anaccident, but a bigger issue,” Mr. Norfieldsaid. The euro rebounded to 90.70 cents andthen fell to 90.30 cents. “But then, when thescale of the attack became obvious—this isthe biggest mainland aggression the U.S.has faced since the Civil War —the dollartook a more substantial hit” and its pathdownward became “more of one-way street

with new euro highs above 91 being hit,” hesaid.

Some of the day’s biggest gains werechalked up by the yen and Swiss franc, withthe dollar falling to intraday lows of 118.55yen and 1.6375 francs from highs of 122.05yen and 1.6915 francs. The franc finished at1.6410, compared with 1.6863 late Monday.The Swiss currency historically has beenattractive during periods of global politicalturmoil.

By contrast, one analyst said the yen’sgains reflected a “a stampede out of posi-tions” by hedge funds that had used bor-rowed money to place big bets that the dol-lar would rise on the back of U.S. TreasurySecretary Paul O’Neill’s scheduled meet-ings with Japanese officials; those meet-

ings have been canceled.The weakening of the dollar was tem-

pered by a steep rise in the price of crudeoil —Brent crude for October deliveryjumped $1.61 to $29.06 a barrel—that isbought and sold in dollars. The euro’sstrengthening was limited by the fact thatspeculators already held sizable short-dol-lar positions, or bets the dollar wouldweaken.

Noting that the dollar sold off in rela-tively light trading volume, Paul Meggyesi,director of currency research at DeutscheBank in London, summarized the thoughtsof many traders and analysts in the $1.3trillion a day global foreign-exchange mar-ket, saying: “No one can make any sense ofthis.”

Where the dollar is headed next dependson a combination of political events, eco-nomics and the possibility of war. Tradersnoted that during the 1991 Gulf War, thedollar fell against most major currencies,particularly the yen and Swiss franc.

What is more, the dollar often farespoorly during periods of rising risk-aver-sion, mostly because the low savings ratesof Americans make the U.S. dependent onforeign capital to finance the $450 billiondeficit in its current account, a broad mea-sure of trade in goods and services pluscertain financial transfers.

“The U.S. dollar will be initially sold forsomewhat safe haven currencies like theSwiss franc,” said Mr. Busch of BMO Nes-bitt Burns.

“The issue, though—which is likely tobecome more of a problem—is that the eco-nomic and financial disruption [to the U.S.]could be more prolonged than it would be ifit were a one-off event,” said Mr. Norfield ofABN Amro. “It’s not like clearing up afteran earthquake.”

What is more, the terrorist attacks “willraise questions about what the Bush admin-istration is going to do next,” Mr. Norfieldsaid. “The Bush administration will beclosely scrutinized on what they will do onforeign policy, economic policy. Will this dis-rupt them from looking at the economy?”

Treasury Cancels Auction of Four-Week Bills

By Wall Street Journal staff reportersCarrick Mollenkamp and WillPinkston in Atlanta and JacobSchlesinger in Washington.

COMMODITYINDEXES

Tuesday, September 11, 2001NET YR.

CLOSE CHG. AGODow Jones-AIG Futures . 101.329 + 0.168 110.286Dow Jones Spot............ Closed Reuter U.K. .................. 1170.56 — 1.74 1413.50C R B Bridge Futures.... Closed

Closing of Markets Jolts Grain Elevators, Exporters

Dollar, in Reaction, Declines in Global Trading

1Journal Link: For 24-hour updated news, stock quotes, company backgroundinformation and more, see the online Journal at WSJ.COM

CREDITMARKETS

Dow Jones Newswires

WASHINGTON—The U.S. Treasury De-partment canceled its scheduled auction offour-week Treasury bills for this week af-ter the terrorism attacks in the EasternU.S.

The Treasury said that it was cancel-ing the sale and that there were no plansto reschedule it.

The Treasury had announced it wouldsell $10 billion in four-week bills this

week in an auction originally scheduledfor yesterday, then postponed after a se-ries of hijackings and plane crashes thatdestroyed the World Trade Center inNew York, damaged the Pentagon inWashington, and caused most govern-ment buildings to be closed and evacu-ated.

The four-week bills were slated to bedated Sept. 13 and mature on Oct. 11, witha Cusip number of 912795GS4.

COMMODITIES

In Europe,Bond TradingIs Sidelined

IMONEY & INVESTING INDEX

Bank Branches Close in Wake of Attacks;Check Processing, Transport Disrupted

A closed Atlanta bank’ssign said, ‘The nationalsituationwarrants us tobe very cautious. . . .’

1835: The Great Fire. TheGreat Fire destroys morethan 700 buildings in lowerManhattan. The then-named New York Stock &Exchange Board moves totemporary headquarters.

1914: Longest ExchangeShutdown, World War I. As armed conflict engulfsEurope, securities ex-changes around the worldsuspend operations toarrest plunging prices. TheNYSE closes its doors onJuly 31, and does not fullyreopen for four and a half

months, the longest shut-down in Exchange history.

1945: Exchange Closes for V-J Day. VictoriousAmerican troops are welcomed home with aticker tape parade. TheExchange closes fromAugust 15th through the16th for V-J Day.

1963: KennedyAssassinated. Theassassination of PresidentKennedy on Nov. 22 forcesan emergency early closingof the Exchange to avoidpanic selling.

1997: Circuit Breakers. OnOct. 27, the Dow JonesIndustrial Average plum-mets 554 points, triggeringthe NYSE’s “circuit breaker” rule for the firsttime. Trading halts at 3:30p.m. The circuit breakerlimits later were eased sothat a much-greater declinewould be needed to closethe exchange.

2001: Terrorism. The BigBoard and other financialinstitutions close after terrorist attack on lowerManhattan.

Past Closings of the New York Stock Exchange Yesterday’s closure of U.S. financial markets represented one of the few times thatthe New York Stock Exchange has shut down trading. It did so when Hurricane Gloriastruck in 1985, and closed for the entire day after President Nixon died in 1994. Otherevents that caused closures include the shooting of President Reagan and the assas-sination of President Kennedy. Among the closings:

Source: New York Stock Exchange

FOREIGNEXCHANGE

* * THE WALL STREET JOURNAL WEDNESDAY, SEPTEMBER 12, 2001 B3


**EE,MW,SW,WE

212449409/12/2001

P1JW255018-2-B00400-1---XA

AmericasTORONTO in Canadian dollars

Abitibi C 11.12 — 0.76AirCanada 6.00 — 0.40Alcan 50.75 — 2.70Alt Energy 58.65 + 1.18Anderson 37.50 — 2.27Atco Ltd CL 1 47.50 — 0.40Aur Res 2.50 — 0.10BC Gas 33.65 — 0.86BCE Inc 37.75 — 0.95Bank Mtl 40.36 — 1.81Bank N S 47.60 — 1.90Barick gld 27.70 + 2.50Bombardier B 18.50 — 1.52Breakwtr Res 0.55 + 0.05C Util 51.75 + 0.50CAE 11.80 — 0.95CCL Indus B 11.05 — 1.45CIBC 53.75 — 2.45CP Ltd 53.00 — 5.84CTire A f 22.45 — 2.00Cambior 0.72 + 0.08Cameco 36.25 — 1.20Canfor 9.72 — 0.40Cascades I 7.90 — 0.25Cdn Nat Res 48.05 + 2.11Cdn Tire 39.40 ....Co Steel 4.99 + 0.44Dia a o f 20.90 ....Dofasco 24.20 — 0.40Domtar 13.40 — 0.97DundeeAf 17.00 — 0.20Dupont A 21.76 — 1.19Enbridge 40.02 — 1.28F Season 68.00 — 5.30Fairfax F 218.50 — 18.50Falcnbrg 14.86 — 1.24Finning 19.00 — 0.05Franco 21.41 + 0.70Geac Computer 4.44 — 0.47H Bay Co 15.55 — 1.15I ForestAf 3.82 — 0.43ImperialOil 45.25 + 1.20Inco 24.05 — 0.75Ipsco 18.50 — 0.50Ivaco A f 3.25 — 0.26Loblaw Co 49.75 — 2.35MolsonAf 23.50 — 2.00Moore 11.60 — 0.85Natl Bk Of Can 26.50 — 2.38Noranda I 15.00 — 0.50Norske Skog 6.01 — 0.44Onex C f 17.25 — 1.58PanCan P 45.50 + 1.00PetroCCV 42.01 + 2.11Placer Dm 18.60 + 1.24Power Corp Can 35.25 — 2.65Ptash Cor 87.01 — 5.99Qbcrprintf 39.25 — 1.28Quebecor Inc B x20.75 — 1.14Rogers Bf 23.25 ....Royal Bnk 47.75 — 1.27S&P TSE 60 41.15 — 1.89SSGA DJ40 43.00 — 1.90Sears Can 15.60 — 0.42Shell Can 43.50 + 1.50Spar Aeros 16.05 — 1.45Stelco A 3.70 — 0.03TELUS 21.85 — 1.16Talisman 60.50 — 1.15Teck B f 11.36 — 0.14ThomCor 48.00 — 2.00TorDmBk 40.70 — 1.60Torstar Bf 19.00 — 0.10TrAlt corp 23.00 — 0.05TrCan PL 19.00 — 0.72Trilon A 13.80 — 0.65TrizecHaf 27.00 — 0.80Wcoast E 35.40 — 1.75Weston 98.35 — 5.15

MEXICO CITY in pesos

Alfa A 10.50 — 1.45Apasco A 46.00 — 1.00BBVA/Banc 6.60 — 0.53Banacci O 17.00 ....Bimbo A 19.00 — 0.99Femsa B 29.80 — 1.81GModeloC 20.40 — 1.35Gcarso A1 24.50 — 2.50Kimber A 26.00 — 1.45Maseca B 2.25 ....Tamsa 19.00 — 0.50Telecom A1 17.00 — 1.39Televisa 14.00 — 1.58Telmex L 15.00 — 0.72Vitro 8.70 — 0.60Walmex C 17.90 — 0.80Walmex V 19.31 — 1.12

BRAZIL in real

BcoBrdsco PFd 10.40 — 0.70CemigPfd 24.56 — 2.45ItaubancoPfd 155.00 — 12.00LightServ 100.00 — 22.00PetrobrasPfd 54.00 — 0.90Sabesp 139.00 — 14.01TelebrasPfd 100.71 ....ValRioDocPfd 47.10 — 4.45

CHILE in pesos

CTC-A 1950.00 — 80.00Cervezas 2930.00 ....Chilectra 2200.20 ....Copec 2160.00 — 150.00D&S 645.00 ....Endesa 220.00 — 14.00Enersis 184.00 — 5.00Falabella 570.00 — 10.00Gener 131.00 ....Santander 57.50 ....

VENEZUELA in bolivars

BcoPrvincial 500.00 ....CANTV 2450.00 — 190.00Cemex Ven 190.00 ....ElecCaracas 235.00 ....Sivensa 3.40 ....

EuropeAMSTERDAM in euros

ABN AMRO 16.50 — 2.08ASM Lithography 15.25 — 1.40Aegon 25.60 — 3.02Ahold 29.68 — 1.92Akzo Nobel 44.47 — 2.03Buhrmann 7.07 — 0.80DSM 38.46 — 1.23Elsevier 11.81 — 0.85Fortis NL 25.30 — 2.57Getronics NV 2.61 — 0.24Hagemeyer 17.53 — 1.64Heineken 42.27 — 2.03Hunter Douglas 27.60 — 0.40ING Groep N.V. 26.37 — 3.93KLM 10.00 — 2.90KPN Koninklijke 2.39 — 0.24Oce-van Grntn 8.95 — 0.85Philips Elec 23.66 — 2.59Randstad 12.30 ....Robeco 28.45 — 2.10Rolinco 22.50 — 1.25Rorento 37.60 ....Royal Dutch 60.20 + 0.64TPG 20.00 — 1.51Unilever 62.40 — 2.70VNUVerBez 31.50 — 1.77Vopak 19.00 — 0.10Wolters Kluwer 22.30 — 1.31

BRUSSELS in euros

Ackermans 26.91 — 0.59Arbed 100.00 — 2.50BarcoNV 36.44 + 0.94Bekaert 34.81 — 2.19Delhaize 60.00 — 0.45Dexia 15.50 — 1.26Electrabel 230.10 — 2.90Fortis B 25.01 — 2.79GIB 49.98 — 2.22Gevaert 28.20 + 0.20KBC Bk 35.00 — 2.00Solvay 59.50 — 1.80UCB 41.50 — 3.50

FRANKFURT in euros

Adidas Salmn 71.20 — 3.80Allianz 230.00 — 32.00BASF 41.50 — 2.15BMW 32.80 — 2.45Bayer 33.00 — 1.80Beiersdorf 120.50 + 0.50Byr Vereinsbk 35.70 — 4.35Commerzbank 20.50 — 2.90Continental 11.80 — 1.45Daimler Chrysler 40.20 — 3.70Degussa 28.00 — 1.30Deutsche Bank 57.45 — 7.55Deutsche Tel 14.35 — 0.86Dresdner Bank 39.00 — 3.20EADS 16.80 — 0.35E.ON AG 51.70 — 3.45Gehe 47.20 — 1.10Heidlbg Zemnt 42.20 — 0.20Henkel pf 65.00 — 3.00Hochtief 15.35 — 0.35Karstadt 34.00 — 2.60Linde 44.50 — 2.50Lufthansa 13.15 — 2.16MAN 21.50 — 1.50MG Tech 7.65 — 0.59Mannesmnn 202.90 — 0.61Metro AG 39.50 — 2.00Munchen Rk 232.00 — 43.50Porsche 315.00 — 43.00Preussag 30.00 — 3.65RWE 40.70 — 1.40SAP 116.40 — 5.30Schering 52.25 — 1.60SchwarzPhar 30.35 — 0.65Siemens 45.30 — 2.10Volkswagen 45.00 — 3.50

LONDON in pound/pence

3-I Group Plc 7.200 — 0.590Abbey National 9.160 — 1.140Allied-Domecq 3.900 — 0.087Amersham 5.385 — 0.315Assoc Brit Fds 4.400 — 0.190AstraZeneca 29.310 — 1.710BAA Plc 5.165 — 1.015BAE Systems 3.250 + 0.145BG 2.743 — 0.045BHP Billiton 3.060 — 0.085BOC Group 9.820 — 0.040BPB Indus 2.500 — 0.015BP 5.885 + 0.275Barclays 17.510 — 1.630Body Shop 0.805 — 0.060Boots 5.930 — 0.460Brit Airways 2.080 — 0.560Brit Am Tob 5.720 — 0.200Brit Land 4.650 — 0.070Brit Sky Brd 6.560 — 0.320Brit Telecom 3.240 — 0.160CGNU 8.240 — 0.905Cable&Wireless 2.900 — 0.320Cadbury Schwp 4.395 — 0.270Charter Plc 1.775 — 0.050Cookson Group 1.180 — 0.010Corus Group 0.580 ....Diageo 6.585 — 0.380EMI 3.350 — 0.370Enterprise Oil 5.800 + 0.230Euro Tunnel 0.555 ....GKN 2.960 — 0.172GUS PLC 5.440 — 0.350GlaxoSmKline 16.260 — 1.230Granada 1.130 — 0.130HBOS 8.020 — 0.580HSBCHldg 6.590 — 1.015Hanson Plc 4.710 — 0.190Hilton Grp 1.790 — 0.475Imp Chem Ind 3.760 — 0.410Imperl Tobac 8.430 — 0.270Innogy 1.960 — 0.210Intl Power 2.527 — 0.093Invensys 0.733 — 0.062Jefferson Smurf 1.335 — 0.055Johnson Mathy 8.950 — 0.040Kidde Plc 0.700 ....Kingfisher 2.875 — 0.355Land Securs 8.380 — 0.250Legal & Genl 1.423 — 0.092

Lloyds TSB Grp 6.250 — 0.510Marconi 0.320 — 0.015Marks & Spencr 2.390 — 0.103Misys 2.730 — 0.130New Scottish Pwr 4.115 — 0.150Next Plc 8.600 — 0.370Novar 1.430 — 0.045P & O 2.245 + 0.015Pearson 8.550 — 0.200Pilkgtn Bros 1.035 — 0.020Powergen Plc 7.280 — 0.090Prudential 6.640 — 0.940RMC 6.000 — 0.280Rank Gp 2.040 — 0.112ReckitBenck 9.450 — 0.520Reed Intl 5.115 — 0.435Rentokil 2.255 — 0.245Reuters 5.970 — 0.520Rexam Plc 3.380 — 0.255Rio Tinto 11.000 — 0.580Rolls Royce 1.795 — 0.177Royl Bk Scot 14.650 — 1.230Royl and Sun 3.585 — 0.643Safeway 3.132 — 0.196Sainsbury J 3.393 — 0.212Severn Trent 7.285 — 0.085Shell 5.430 + 0.115Six Continents 6.065 — 1.055Smith & Nephew 3.450 — 0.070Smiths Ind 6.530 — 0.480Spirent Plc 1.035 — 0.120Std Chartrd 6.570 — 1.190Tate & Lyle 2.688 + 0.008Tesco 2.300 — 0.150Tomkins 1.730 — 0.045Unilever 5.350 — 0.220Utd Bus 5.100 — 0.190Utd Util 5.940 — 0.150Vodafone Grp 1.240 — 0.120WPP Group 5.920 — 0.540Wolseley 4.620 — 0.200

MADRID in euros

ACESA 9.82 — 0.41Altadis 17.50 — 1.12Bco Bil Viz 12.44 — 0.45Bco Inter Esp 35.02 — 2.27Bco Populr Esp 35.10 — 2.10Bco de Sntdr 8.86 — 0.33Centr Com Carfr 12.70 — 0.55Crp Mapfre 17.50 — 2.00EADS 15.00 — 2.30ENDESA 17.20 — 0.40Fomnto Constr 21.70 — 1.95Gas Natrl SDG 19.00 — 1.52Iberdrola I 15.01 — 0.49Petroleos 11.70 + 0.29Repsol YPF 18.44 + 0.81Telefonica 10.45 — 0.65

MILAN in euros

Alleanza 11.06 — 0.97Benetton 12.14 — 0.87CIR 1.00 — 0.10ENI 14.27 — 0.10FIAT Com 22.38 — 1.75FIAT Pref 15.37 — 1.11Generali 29.55 — 2.56IntesaBci 3.17 — 0.23Mediobanca 11.41 — 0.96Montedison 2.49 — 0.09Olivetti Com 1.07 — 0.10Pirelli Co 2.64 — 0.09Pirelli SpA 1.57 — 0.16RAS 12.04 — 1.05Rinascente 3.83 — 0.23Rolo Banca 14.05 — 1.32Saipem 6.55 + 0.06Snia 1.53 — 0.12Telecm Ital Mob 4.88 — 0.44Telecm Itl 7.30 — 0.59Unicredito Ital 3.69 — 0.31

PARIS in euros

AXA Group 22.89 — 3.51Accor 34.00 — 4.72Air Liquide 140.20 — 10.30Alcatel Alstm 12.60 — 1.69Aventis 68.50 — 7.75BNP 89.00 — 8.60Bic 41.51 — 2.79Carrefour 49.90 — 3.60Club Med 44.80 — 10.25Danone 135.00 — 12.00Dassault Avitn 290.00 — 3.60Dexia 15.40 — 1.40EADS 15.16 — 1.98Euro Disneyld 0.65 — 0.11FrTelecom 28.10 — 2.87Imerys 102.00 — 4.60L'Oreal 69.15 — 8.65LVMH Moet Henn 45.34 — 3.85Lafarge 90.50 — 5.15Lagardere Grp 44.00 — 2.55Michelin 30.31 — 2.03Orange 6.42 — 0.66Pernod Ricard 77.00 — 4.75Peugeot 46.91 — 3.74Pinault Prnt 133.20 — 5.80Renault 37.00 — 5.20STMicroelect 27.51 — 2.10Saint Gobain 143.00 — 12.50Sanofi-Synthe 70.25 — 3.25SchneiderElec 50.35 — 3.40Soc Generale 56.10 — 5.35Sodexho 46.65 — 4.40Suez 32.65 — 3.48Thales 38.06 — 3.44TotalFinaElf 160.00 + 0.20Usinor 10.65 — 0.30Valeo 42.55 — 3.20Vivendi Univ 46.36 — 2.66

STOCKHOLM in krona

Atlas Copco 203.50 — 14.50Electrolux 131.00 — 10.50Ericsson 36.90 — 4.60FoerSparbk 107.50 — 8.50Hennes&Mau B 167.00 — 23.50Investor B 103.00 — 11.00Nordea AB 54.00 — 6.00SE Bank 79.50 — 7.50SKF 161.00 — 13.00Sandvik 195.50 — 19.00Skanska 67.50 — 7.00Svenska Hndbk 136.50 — 10.50Volvo B 150.00 — 11.50

SWITZERLAND in Swiss francs

ABB 14 — 2Adecco 65 — 6Ciba Sp Chem 101 — 4CredSuisseGp 55 — 7Holderbank 318 — 32Lonza 919 — 48Nestle reg 329 — 11Novartis reg 55 — 3Richemont 3425 — 201Roche div rt 110 — 6

Roche 126 — 5Sulzer reg 270 — 13Swiss Reins reg 126 — 26Swissair 72 — 7Swisscom 432 — 16UBS 68 — 7Zurich Fin 362 — 52

AfricaJOHANNESBURG in rand

Amalgmt Bk 36.50 — 2.30Anglo Am Plat 316.00 — 9.60Barloworld 56.60 — 1.60Firstrand 7.90 — 0.45Gencor Ltd 30.00 — 1.30GoldFlds Ltd 37.50 + 3.80Imperial Hldg 65.10 — 2.70Investec Bk 179.60 — 11.40Johnnic Hldg 47.00 — 3.00Lib Life Assoc 52.50 — 2.80Liberty Hldg 150.00 — 2.40Nedcor 139.00 — 7.00Sasol 88.30 + 5.70Stand Bk Inv 32.00 — 1.05Tiger Brands 58.50 — 2.50Venfin Ltd 16.20 — 1.05

AsiaHONG KONG in H.K. dollars

Bank E Asia 17.55 — 0.05CITIC Pacific 16.05 + 0.30Cathay Pacific 8.35 — 0.20Cheung Kong 65.25 + 0.25China L & P 32.10 — 0.10HK & Chn Gas 9.80 + 0.15HK Electric 29.85 — 0.25Hang Seng Bk 82.50 — 0.25Hendrson Land 31.20 + 1.10Hutchsn Whmp 62.50 + 0.50Hysan Develop 7.65 + 0.20New World Dev 7.05 — 0.30Pacific Cent Cyberworks 1.95 + 0.07Sun Hung Kai 60.25 ....Swire Pacific 36.70 + 0.90Tsingtao Brew 2.05 ....Wharf Holdings 15.05 + 0.30Wheelock 6.35 + 0.05

SHANGHAI in renminbiAsian investors only

Anshan Trust 8.36 + 0.01Beijing Wanfuj 7.95 + 0.19Cai Hong Dis 8.69 + 0.03GD Meiyan Ent 4.79 + 0.06Harbin Pharm 12.90 — 0.20Hubei Xinghua 8.60 ....Jinan Qinqi 5.17 — 0.06Maannshan I&S 3.30 — 0.01No China Pharm 5.71 + 0.16Orient 7.51 + 0.03QD Haier 16.00 ....SC ChangHong 7.95 — 0.05SH AJ 10.40 + 0.07SH Automotive 8.20 — 0.02SH Feilo 9.66 — 0.02SH Lujiazui 17.03 — 0.01SH Petrochem 4.10 + 0.08SH Raw Water 8.04 + 0.10SH Shenua 6.94 ....SHENERGY 14.92 — 0.05SY Jinbei Auto 5.65 ....

SHENZHEN in renminbiAsian investors only

China Baoan 5.42 + 0.02GD DongGuan 6.28 + 0.08GD Elect Pwr 10.31 + 0.01GD Marco 6.50 + 0.09GD Meiyan Stk 7.34 + 0.04HN New Contl 6.55 ....LZ Old Cellar 9.50 — 0.05MD Hldg 10.42 — 0.08SZ Dev Bk 12.89 — 0.11SZ Energy Inv 9.00 — 0.02SZ Fountain 6.09 + 0.06SZ Jintian Ind 4.73 ....SZ Kaifa Tech 13.38 — 0.08SZ Konka Elec 8.44 — 0.01SZ Liaotong 6.25 + 0.07SZ Vanke 15.29 — 0.01SZ Zhenye 13.36 + 0.01Wuhan Phnx 5.74 + 0.14ZH Gr Elec Apl 10.58 + 0.11

TAIWAN in new Taiwan dollars

ASE 18.00 — 0.70Acer 12.55 — 0.90Asustek Cptr 130.00 — 2.00Cathay Life 39.30 — 1.00China Dev 21.90 — 0.20China Stl 12.95 + 0.05Chng Hwa Bk 12.80 — 0.30First Com Bk 17.30 — 0.30Formosa Plas 33.50 — 0.30Hou Hai Prec 112.50 — 0.50Hua Nan Bk 17.00 — 0.50ICBC 17.10 — 0.40Inventec 16.60 — 1.20Mosel Vitelic 8.40 — 0.60Nan Ya Plas 23.20 — 0.60Shin Kg Life 22.70 — 0.60Tai Semi Mfg 63.00 — 1.00Tatung x6.40 — 0.45Utd Micro Elec 38.50 — 1.10Winbond Elec 14.35 — 1.05

INDONESIA in rupiah

Astra Intl 2425 — 75Bank Centrl Asia 1450 + 25GudangGaram 12000 — 200HM Sampoerna 17300 + 250Indocement 1225 ....Indofood 800 ....Indosat 9500 + 200TelekomIndo 3250 + 75

KOREA in won

Dacom 23100 — 200Hynix Semi 1190 — 210Hyun Eng & Con 3350 — 170Hyundai Motor 22100 — 800Kepco 21850 — 600Kookmin Bk 17800 — 600LG Chem Inv 6720 + 10LG Electrnc 13000 — 200Posco 88500 — 2900SK Corp 12850 — 50SK Telecom 207000 — 3000S-Oil Corp 41500 + 500Smsng Elec Dev 52500 + 300Smsng Electrnc 187000 — 4500

KUALA LUMPUR in ringgit

Ammb Hldg 3.50 — 0.08Berjaya Sports 5.40 — 0.05Brit Am Tobac 35.25 ....

Genting 10.90 — 0.40Magnum 2.28 + 0.01Mal Intl Shp F 7.00 — 0.05Malay Airline 3.40 ....Malay Bank 12.20 — 0.10Perusahn Oto 6.85 + 0.15Public Bk 2.46 — 0.02RHB Cap 2.57 + 0.04Rashid Hussn 2.63 + 0.08Renong 0.86 ....Resorts Wld 7.40 — 0.30Sime Darby 4.94 — 0.04Telekom 10.10 — 0.30Tenaga 11.00 ....Utd Engineer 4.18 + 0.02YTL Corp 4.86 — 0.04

SINGAPORE in Singapore $

CapitaLand 1.75 — 0.07City Dev Ltd 5.05 + 0.13Creative Tech 12.10 — 0.10Cyc & Carriage 3.24 — 0.16DBS Grp Hldg 13.50 + 0.40Fraser & Neave 7.75 ....Grt East Hldg 9.90 + 0.20Jardine Math -a 6.05 + 0.05Keppel Corp 3.00 — 0.06Keppel Land 1.77 + 0.02Over Chin Bk F 11.20 + 0.20Over Un Bk F 9.65 ....Parkway Hldg 1.06 + 0.05SembCorp 1.34 — 0.04Sing Air F 11.00 + 0.10Sing Land 3.26 + 0.02Sing Telecom 1.75 + 0.04Utd Over Bk F 11.20 ....Wing Tai Hldg 0.76 — 0.01

TOKYO in yen

ANA 388 + 3Aeon 2280 — 45Aiwa 434 + 8Ajinomoto 1292 + 33Alps Elec 793 + 8Amada Co 600 — 7Ando Elec 570 ....Anritsu 892 + 30Asahi Chem 409 — 3Asahi Glass 668 + 10Banyu Pharm 2205 + 70Bk of Yokohama 483 ....Bridgestone 966 — 4Brother Ind 380 + 7CSK 2980 + 65Canon Inc 3620 + 120Canon Sales 900 + 8Casio Computer 690 + 4Chubu Pwr 2385 — 15Chugai Pharm 1840 + 22Chuo-Mitsui Trust 168 — 1Citizen Watch 631 — 6Dai Nippon Print 1190 + 27Daiei 187 + 6Daiichi Seiyaku 2670 — 50Dainippon Ink 229 + 3Dainippon Pharm 1115 — 18Daiwa House 920 + 5Daiwa Securities 979 + 16Denso 2020 + 24Eisai 2720 — 15Ezaki Glico 706 ....Fanuc 5420 + 60

Fuji Hi 746 — 11Fuji Photo Film 4540 + 140Fujisawa Pharm 2510 + 35Fujitsu 1160 — 5Furukawa Elec 665 — 62Hirose Elec 8170 + 250Hitachi Cable 433 — 12Hitachi Capital 2340 — 40Hitachi Ltd 833 + 13Hitachi Maxell 1627 + 22Hitachi Metals 307 + 1Honda Motor 4840 + 20Hosiden Elec 2150 + 5Hoya 6430 + 280IHI 295 ....Intec 930 — 29Isetan 1096 — 26Isuzu 171 ....Itochu Corp 355 — 5Ito-yokado 4130 — 40Iwatsu Elec 171 — 3JAL 350 + 18JEOL 510 — 1Japan Aviat El 413 — 17Japan Energy 209 — 1Japan Radio 420 — 5Kajima 359 + 3Kandenko 580 + 5Kansai Elec 2060 + 15Kao Corp 2950 — 20Kawasaki Hi 177 ....Kawasaki Steel 126 + 3Kinden 707 — 27Kirin 876 — 7Kobe Steel 62 ....Kokuyo 1140 + 4Komatsu Ltd 407 + 2Konica 636 — 7Kubota 385 + 13Kumagai Gumi 34 ....Kuraray 713 — 16Kureha Chem 351 — 5Kyocera 8090 + 380Kyowa Hakko 668 — 9Kyushu Matsushit 903 + 7Lion 480 + 5Makino Milling 407 — 5Makita Elec 719 + 6Marui 1336 — 58Mats' Elec Ind 1621 + 2Mats' Elec Wrks 1001 + 6Matsushita Com 3810 + 190Mazda 242 ....Meiji Seika 542 — 10Minolta 393 + 3Mitsubishi Chem 261 — 3Mitsubishi Corp 915 — 2Mitsubishi Elec 430 + 8Mitsubishi Hi 473 — 2Mitsubishi Logistics 1102 — 25Mitsubishi Matl 203 — 2Mitsubishi Real 1209 — 31Mitsui & Co 728 — 15Mitsui Fudosan 1260 — 35Mitsui Mar&Fire 747 — 1Mitsukoshi 375 + 4Mizuoh Hldgs 525000 — 8000Mochida Pharm 745 + 3Mtsubsh Tok Fin 1040000 ....NEC 1250 + 15NGK Spark 820 + 49NIFCO 1262 — 45

NKK 94 + 3NSK 399 + 4NTN 265 — 1NTT 481000 — 5000Nihon Unisys Ltd 770 + 25Nikko Securities 775 + 12Nikon Corp 950 — 8Nintendo 17800 — 580Nippon Chemi-con 480 + 22Nippon Columbia 135 — 7Nippon El Glass 1196 + 37Nippon Express 479 — 11Nippon Hodo 552 + 2Nippon Meat 1280 — 229Nippon Sanso 333 + 6Nippon Steel 161 + 2Nippon Unipac 626000 — 10000Nissan Motor 705 + 5Nisseki Mits Oil 628 — 20Nissin Food 2610 — 30Nitsuko 415 + 5Nomura Securitie 1929 + 13OKK 100 ....Obayashi Corp 476 + 1Odakyu Railway 500 + 1Oji Paper 630 — 3Oki Elec Ind 354 — 4Okuma Corp 227 — 3Olympus Optical 1681 ....Omron 1474 + 3Ono Pharm 3550 + 40Onward 1100 — 10Pioneer Electron 2545 — 105Ricoh Co 1934 + 28SMK 305 + 3Sankyo Co 2310 + 55Sanrio 1149 — 6Sanyo Elec 468 + 26Sapporo Brewery 347 — 4Secom 5380 — 40Sekisui House 972 — 2Seven-eleven 4090 + 20Sharp 1227 + 7Shimizu Corp 469 — 3Shin-etsu Chem 3710 + 260Shionogi 2035 + 35Shiseido 1095 + 27Showa Denko 133 — 4Skylark 2775 — 125Softbank 2545 + 145Sony 4980 + 30Sumitomo Chem 431 — 8Sumitomo Corp 683 — 3Sumitomo Elec 954 + 26Sumitomo Marine 818 — 6Sumitomo Metal 61 + 2

Sumitomo Mitsu Bnk 997— 18Sumitomo Realty 771 — 25Sumitomo Trust 763 — 2Suzuki Motor 1415 — 10TDK 6220 + 400Taiheiyo Cmnt 291 + 12Taisei 345 + 9Taisho Pharm 2325 + 10Taiyo Yuden 1958 + 36Takeda Chem 4870 — 40Teijin 451 — 11Toho Co 14360 — 150Tokio Mar&Fire 1185 — 25Tokyo Elec Pwr 3060 — 70Tokyo Electron 6270 + 160

Tokyo Engy&Sys 370 — 16Tokyo Gas 409 + 5Tokyo Style 1170 + 5Tokyu Corp 654 + 4Toppan Print 1058 — 2Toray 348 + 2Toshiba 584 ....Toto 638 + 8Toyo Seikan 1502 + 2Toyobo 181 + 1Toyoda Mach 536 + 2Toyota Motor 3650 + 10Tsugami 205 — 7Uny 1130 — 38Ushio 1578 — 35Wacoal 1200 ....Yamaha 1146 ....Yamanouchi Phm 2945 + 5Yamatake Corp 887 + 1Yamato Tran 2455 + 20Yamazaki Baking 744 + 9Yasuda Fire 845 — 10Yellow Hat 1005 + 20Yokogawa Elec 785 + 40

PacificNEW ZEALAND in N.Z. $

Cart Holt Har 1.60 — 0.01FletchChBui 2.63 + 0.03Telecom NZ 4.65 + 0.01

SYDNEY in Australian dollars

ANZ Group 16.39 — 0.01Amcor 6.12 — 0.05BHP Billiton 9.38 — 0.12Bougainville 0.14 ....Brambles Inds 10.70 + 0.08CSR 6.34 — 0.10Centrl Norsemn 0.28 ....CocColaAmat 5.60 + 0.05Coles Myer 7.08 — 0.04Comnwlth Bk 29.22 — 0.22Foster's Grp 5.03 + 0.04Goodman 1.33 ....Leighton 9.98 + 0.14Lend Lease 11.00 + 0.30MIM Holdings 1.04 ....Mayne Nickless 6.70 — 0.15Nat Aust Bnk 29.55 — 0.65News Corp 15.10 + 0.10Normdy Mining 1.35 + 0.02Pacific Dunlop 0.79 + 0.03Publish & Brd 9.17 ....Qantas Airways 3.44 + 0.44Rio Tinto 33.83 — 0.12S Pac Pete 0.58 — 0.02Santos 5.95 — 0.08Telstra 4.89 + 0.02WMC Ltd 8.33 — 0.08Westpac 13.92 + 0.17Woodside 13.56 — 0.14Woolworths 11.47 + 0.14

x = Ex-dividend

NETCLOSE CHG.

MSCI INDEXES%FROM

Sep. 10 Sep. 7 12-00U.S..................... 1037.9 1029.7 — 17.0Britain ................ 1512.5 1524.3 — 17.9Canada............... 931.8 933.3 — 19.4Japan ................. 668.9 685.4 — 17.2France................ 1440.5 1451.5 — 24.3Germany............. 592.9 601.8 — 27.5Hong Kong ......... 5504.8 5507.8 — 28.4Switzerland .......... 767.3 782.7 — 24.6Australia .............. 649.3 646.5 + 1.4World Index ...... 968.1 971.4 — 20.7EAFE MSCI-p .... 1124.0 1143.1 — 24.7As calculated by Morgan Stanley Capital International Per-spective, Geneva. Each index, calculated in local currencies,is based on the close of 1969 equaling 100. p-Preliminary.

FOREIGN MARKETS TUESDAY, SEPTEMBER 11, 2001

NETCLOSE CHG.

Tuesday, September 11, 2001

PRECIOUS METALSTue Mon Yr. Ago

Gold, troy ozLondon fixing AM 271.40 PM 287.00 271.50 274.65

Platinum, (Free Mkt.) 448.00 443.00 610.00Silver, troy ounce

London Fixing (in pounds)Spot (U.S. equiv. $4.1800) 2.8689 2.8503 3.4580

FIBERS AND TEXTILESYear

Tue Mon AgoBurlap, 10 oz 40-in NY yd.................. n.35 .35 .325Cotton, 1 1/16 str lw-md Mphs lb .... na .335 .6068Wool, 64s Staple, Terr. Del. Lb.......... u1.20 1.20 1.00

METALSAluminum Comex lb. ............................. na .6435 .7835Antimony, RN Spot, $/lb...................... d.53-.55 .53-.55 .935Copper, high gr lb., Cmx sp price .... na .6515 .9285Copper Scrap, No 2 wire NY lb......... h.55 .55 .70Lead, RN NA Solder, cts./lb................ d40.449 40.365 40.391St. Steel Scrap, US, $/gross ton ........ d627.00 627.00 712.00Tin, RN NA Solder, cts./lb................... d266.464 265.382 379.655Zinc, RN NA Dealer, cts./lb................. d40.355 40.196 60.767

MISCELLANEOUSRubber, smoked sheets, NY lb........... nna .33 .3725Hides, hvy native steers lb., fob ........ una 74.25-78 84.00

NETCLOSE CHG.

NETCLOSE CHG.

DOW JONESSPECIALTY INDEXES

Tuesday, September 11, 2001NET YTD

CLOSE CHG %CHG %CHG YLDEquity REIT..................... Market Closed .... .... ....Equity REIT -tot ret....... Market Closed .... .... ....Composite REIT -a ........ Market Closed .... .... ....Composite REIT -tot ret Market Closed .... .... ....DJ Islamic Market -b ... 1435.59 — 7.15 — 0.50 — 24.10 ....

DJIM Global Tech -b..... 2014.68 — 11.99 — 0.59 — 45.01 ....

DJIM US Index............... Market Closed .... .... ....DJ Composite Internet .. Market Closed .... .... ....DJ Internet Commerce . Market Closed .... .... ....DJ Internet Services...... Market Closed .... .... ....DJ Canada 40 -c .......... 1072.22 — 45.33 — 4.06 — 25.62 ....

DJ Global Titans ........... 186.80 — 1.59 — 0.84 — 19.45 ....

DJ Asian Titans ............ 102.78 + 1.47 + 1.45 — 20.83 ....

DJ Sustainability ........... 796.04 — 12.99 — 1.61 — 23.45 ....

DJ US Large-Cap........... Market Closed .... .... ....DJ US Mid-Cap.............. Market Closed .... .... ....DJ US Small-Cap........... Market Closed .... .... ....a- Indexes of publicly traded Real Estate Investment Trusts,Jan.1990= 100. Yield based on indicated annualized divi-dend.b- A global index of companies that meet Islamic investmentguidelines, Dec. 31 1995 = 1000.c- An index comprised of Canada's largest, most activelytraded equities, Dec. 31, 1998 = 1000. Index in CanadianDollars.

NETCLOSE CHG.

DJ GLOBAL GROUPS BIGGEST MOVERSTuesday, September 11, 2001, as of 5:30 p.m.

Groups LeadingPCT.

Strongest Stocks 5:30 p.m. CHG. CHG.

Precious metals 109.79 + 2.91 + 2.72

DurbanRoode (SA) 9.50 + 1.10 + 13.10

GoldFieldsLtd (SA) 37.50 + 3.70 + 10.95

BarrickGold (CA) 27.70 + 2.50 + 9.92

HarmoneyGold (SA) 44.80 + 3.80 + 9.27

AngloGold (SA) 295.00 + 25.00 + 9.26

Office equipment 200.24 + 5.26 + 2.70

ChinaResLogic (HK) 0.57 + 0.02 + 3.64

Canon (JP) 3620.00 + 120.00 + 3.43

BrotherInd (JP) 380.00 + 7.00 + 1.88

Ricoh (JP) 1934.00 + 28.00 + 1.47

MinoltaCamera (JP) 393.00 + 3.00 + 0.77

Oil cos, major 261.52 + 5.55 + 2.17

BP (UK) 5.89 + 0.28 + 4.99

Repsol (SP) 18.44 + 0.81 + 4.59

ShellCanada (CA) 43.50 + 1.50 + 3.57

ImperialOil (CA) 45.25 + 1.20 + 2.72

ShellTrnsp&Trd (UK) 5.43 + 0.11 + 2.07

Factory equipment 54.59 + 0.68 + 1.26

Komori (JP) 1504.00 + 124.00 + 8.99

OSG (JP) 447.00 + 10.00 + 2.29

ShimaSeiki (JP) 1819.00 + 29.00 + 1.62

FujiMachMfg (JP) 1581.00 + 21.00 + 1.35

Noritake (JP) 473.00 + 6.00 + 1.28

Trucking 97.09 + 0.76 + 0.79

YamatoTran (JP) 2455.00 + 20.00 + 0.82

FukuyamaTrans (JP) 443.00 + 3.00 + 0.68

Kamigumi (JP) 533.00 + 0.00 + 0.00

HuntJB (US) 20.25 + 0.00 + 0.00

CNF (US) 30.51 + 0.00 + 0.00

Marine transport 81.59 + 0.63 + 0.78

JayaHldg (SI) 0.17 + 0.01 + 6.25

D/SSvenbrgB (DK) 82000.00 + 3500.0 + 4.46

UnigloryMar (TW) 11.60 + 0.45 + 4.04

D/S1912B (DK) 60000.00 + 1500.0 + 2.56

NeptunOrient (SI) 0.91 + 0.02 + 2.25

Elec comps & equip 100.20 + 0.44 + 0.44

TuanSing (SI) 0.12 + 0.01 + 9.09

TDK Cp (JP) 6220.00 + 400.00 + 6.87

JpnStrgBtry (JP) 282.00 + 14.00 + 5.22

Kyocera (JP) 8090.00 + 380.00 + 4.93

NipponChem (JP) 480.00 + 22.00 + 4.80

Adv industrial equip 177.30 + 0.69 + 0.39

JotAutomtn (FI) 0.36 + 0.03 + 9.09

CSE (SI) 0.33 + 0.02 + 6.45

Advantest (JP) 6490.00 + 390.00 + 6.39

YokogawaElec (JP) 785.00 + 40.00 + 5.37

HoyaCp (JP) 6430.00 + 280.00 + 4.55

Toys 125.68 + 0.43 + 0.34

ICG AsiaWrks (HK) 0.32 + 0.01 + 3.23

SegaCp (JP) 1954.00 + 53.00 + 2.79

Enix (JP) 2950.00 + 35.00 + 1.20

BandaiCo (JP) 3330.00 + 30.00 + 0.91

Capcom (JP) 3570.00 + 0.00 + 0.00

Steel 46.65 + 0.11 + 0.24

NisshinSteel (JP) 89.00 + 3.00 + 3.49

SumitomoMetal (JP) 61.00 + 2.00 + 3.39

YodogawaSteel (JP) 245.00 + 8.00 + 3.38

NKK Cp (JP) 94.00 + 3.00 + 3.30

DaidoSteel (JP) 260.00 + 7.00 + 2.77

Auto parts 118.66 + 0.26 + 0.22

ORBITAL (AU) 0.64 + 0.04 + 6.67

Clarion (JP) 193.00 + 12.00 + 6.63

NGK Spark (JP) 820.00 + 49.00 + 6.36

SandenCp (JP) 379.00 + 17.00 + 4.70

StanleyElec (JP) 805.00 + 31.00 + 4.01

Oil cos, secondary 142.76 + 0.28 + 0.20

NovusPete (AU) 2.10 + 0.25 + 13.51

RioAlto (CA) 23.50 + 2.00 + 9.30

Sasol (SA) 88.30 + 5.70 + 6.90

PetroCan (CA) 42.01 + 2.11 + 5.29

VermilionRes (CA) 10.25 + 0.50 + 5.13

Groups LaggingPCT.

Weakest Stocks 5:30 p.m. CHG. CHG.

Lodging 108.97 — 6.53 — 5.7

NH Hotels (SP) 9.56 — 2.04 — 17.6

Intrawest (CA) 24.00 — 4.85 — 16.8

SixContinents (UK) 6.07 — 1.05 — 14.8

SolMelia (SP) 7.65 — 1.30 — 14.5

Accor (FR) 34.00 — 4.72 — 12.2

Full line 231.20 — 13.10 — 5.36

SwissRe (SZ) 126.50 — 26.50 — 17.3

Royl&SunAllnc (UK) 3.59 — 0.64 — 15.1

Allianz (GR) 227.00 — 37.10 — 14.1

RAS Ord (IT) 11.25 — 1.81 — 13.9

Axa (FR) 22.89 — 3.51 — 13.3

Water 208.09 — 11.46 — 5.22

Suez (FR) 32.65 — 3.48 — 9.6

Sabesp (BZ) 139.00 — 14.01 — 9.2

SocGenAgu (SP) 14.55 — 0.45 — 3.0

SevernTrent (UK) 7.29 — 0.08 — 1.1

AmWaterWks (US) 34.12 + 0.00 + 0.0

Casinos 137.32 — 5.69 — 3.98

HiltonGrp (UK) 1.79 — 0.48 — 21.2

ResortsWld (MA) 7.40 — 0.30 — 3.9

Genting (MA) 10.90 — 0.40 — 3.5

Snai (IT) 3.71 — 0.13 — 3.4

TAB Ltd (AU) 2.56 — 0.08 — 3.0

Wireless Comm 317.11 — 12.54 — 3.80

NordesteCel pf (BZ) 1.99 — 0.79 — 28.4

CelularNorte pf (BZ) 0.95 — 0.29 — 23.4

CelularSul (BZ) 2.00 — 0.52 — 20.6

TeleCenOestePf (BZ) 3.49 — 0.86 — 19.8

NordesteCel (BZ) 2.20 — 0.35 — 13.7

Life 270.67 — 9.97 — 3.55

Prudential (UK) 6.64 — 0.94 — 12.4

Mediolanum (IT) 8.53 — 0.90 — 9.5

GreatWestLife (CA) 31.50 — 3.25 — 9.4

AlleanzaAssic (IT) 7.30 — 0.75 — 9.3

Alleanza (IT) 11.07 — 1.03 — 8.51

Banks 138.14 — 4.03 — 2.83

StndCharter (UK) 6.57 — 1.19 — 15.3

HSBC Hldng (UK) 6.59 — 1.02 — 13.4

DeutscheBk (GR) 56.30 — 8.50 — 13.1

BncPopVerona (IT) 9.50 — 1.38 — 12.7

ComrzBk (GR) 20.64 — 2.81 — 12.0

Clothing/Fabrics 62.54 — 1.77 — 2.75

Bulgari (IT) 10.00 — 1.71 — 14.6

ChristianDior (FR) 30.00 — 4.50 — 13.0

FinPart (IT) 1.10 — 0.13 — 10.6

Texwinca (HK) 2.15 — 0.25 — 10.4

Gaetano (IT) 7.82 — 0.88 — 10.1

Mining, diversified 126.70 — 3.28 — 2.52

Xstrata (SZ) 175.00 — 22.00 — 11.2

ValeRioDocPfd (BZ) 47.10 — 4.45 — 8.6

AngloAmer (UK) 8.09 — 0.61 — 7.0

RioTinto (UK) 11.00 — 0.58 — 5.01

ValedoRio (BZ) 50.33 — 2.17 — 4.13

Advertising 244.03 — 6.05 — 2.42

Publigroupe (SZ) 226.75 — 51.25 — 18.4

HavasAdv (FR) 7.60 — 1.03 — 11.9

Publicis (FR) 21.00 — 2.79 — 11.7

MosaicGrp (CA) 4.50 — 0.55 — 10.9

AegisGrp (UK) 0.86 — 0.09 — 9.5

Distillers & Brewers 141.62 — 2.78 — 1.93

CompBebidas (BZ) 420.01 — 52.99 — 11.2

Molson (CA) 23.50 — 2.00 — 7.8

GrupoModelo (MX) 20.40 — 1.35 — 6.2

PernodRicrd (FR) 77.00 — 4.75 — 5.81

Diageo (UK) 6.59 — 0.38 — 5.45

Shipbuilding 29.00 — 0.57 — 1.93

Ferretti (IT) 2.40 — 0.62 — 20.5

SamsungHvy (SK) 3870.00 — 155.00 — 3.9

LabroyMar (SI) 0.26 — 0.01 — 3.7

HyundaiHeavy (SK) 23400.00 — 200.00 — 0.9

HanjinHeavy (SK) 2700.00 — 15.00 — 0.6

NETCLOSE CHG.

Dow Jones Newswires

Many stock markets around the globe fellto the lowest levels in years, as the worldreacted to terrorist attacks in the U.S.In LONDON, the FTSE-100 fell 5.7%, or

287.70 points, to 4746.00, the biggest one-daypoint drop since the October 1987 stock-mar-ket crash.In FRANKFURT, the Xetra DAX fell

8.5%, or 396.60 points, to 4273.53. It was thebiggest one-day point drop ever, which leftthe index at levels of nearly three years. Lateyesterday, the Deutsche Boerse was reportedto be considering a suspension of trading to-day in the wake of the terrorist attacks, whichclosed markets in New York.

Shares also fell in PARIS, with the CAC-40shedding 323.99 points, or 7.4%, to 4059.75, itslowest level since March 1999. In ZURICH,the Swiss Market Index slid 7.1%, or 433.20points, led by insurance companies. It closedat 5695.10, its lowest close since 1988.

There also were declines in Milan and

Amsterdam. Overall, the Dow Jones WorldStock Index excluding the U.S. fell 2.54%, or3.07 points, to 117.94.

Many Latin American markets alsoheaded lower, with the Brazilian Bovespa inSAO PAULO falling more than 9.2%, or1094.43 points, to 10827.96, in late afternoontrading. The IPC in Mexico inMEXICOCITYfell 5.6%, or 325.17, to 5531.02.In TORONTO, the TSE 300 slid 4%, or

295.90, to 7048.80. Toronto Stock Exchange offi-cials will meet this morning to decidewhether to reopen trading today.

Asian markets, which already had closedwhen the terrorist attacks began, weremixed. In TOKYO, shares rebounded from17-year lows following small gains in the Nas-daq Composite Index Monday. The bench-mark Nikkei Stock Average of 225 issues rosenearly 1%, or 97.26, at 10292.95.

In HONG KONG, the Hang Seng rose0.5%, or 51.04, to 10417.36. In SEOUL, the Ko-spi fell 1.8%, or 10.16, at 540.57.

NETCLOSE CHG.

Reuters Group PLC is the primary dataprovider for several statistical tables in The WallStreet Journal, including foreign stock quotations,futures and futures options prices, and foreignexchange tables. Reuters real-time data feedsare used to calculate various Dow Jones Indexes.

WORLD STOCK MARKETS

DOW JONES GLOBAL SECTORSSector Performance Tuesday, September 11, 2001, as of 5:15 p.m.

Sector YTD YTD YTD YTD YTD

Titans %CHG. US %CHG. Americas %CHG. Europe %CHG. Asia/Pacific %CHG.

201.93 — 4.39 Automobile 269.06 + 0.02 260.70 + 0.91 134.14 — 15.67 153.11 — 3.53

90.68 — 16.34 Banks 366.30 — 6.19 344.06 — 6.72 214.39 — 23.62 51.76 — 12.26

100.07 — 5.03 Basic Resources 156.00 + 0.46 116.34 — 2.25 153.19 — 9.11 45.23 — 8.27

143.51 — 19.92 Chemicals 152.61 — 9.30 134.34 — 10.03 167.49 — 23.30 61.29 — 26.14

87.50 — 10.71 Construction 169.31 — 5.56 154.52 — 1.44 118.91 — 12.00 38.83 — 1.20

168.75 — 21.25 Cyclical Goods/Svc 205.30 — 9.87 191.93 — 10.10 130.69 — 28.70 74.05 — 23.78

232.29 — 5.53 Energy 242.56 — 11.14 241.89 — 10.55 237.09 — 0.27 74.68 + 12.64

279.16 — 23.34 Financial Services 428.00 — 17.23 397.50 — 16.48 166.90 — 29.46 93.03 — 10.19

186.25 — 9.17 Food & Beverage 217.90 — 6.36 206.06 — 6.51 156.85 — 12.66 63.38 — 9.35

292.01 — 17.66 Health Care 303.12 — 15.84 300.69 — 15.80 269.24 — 20.07 146.31 — 23.59

177.60 — 27.00 Industrial Goods/Svc 243.64 — 18.44 221.82 — 18.50 152.04 — 37.07 72.72 — 23.87

223.39 — 32.91 Insurance 346.21 — 17.68 352.45 — 17.46 178.06 — 40.06 73.98 + 1.54

260.80 — 23.58 Media 348.29 — 13.40 328.04 — 14.04 190.57 — 40.78 216.64 — 14.34

246.15 — 4.55 Noncyclical Goods/Svc 239.32 + 5.19 230.18 + 4.92 185.59 — 13.26 109.92 — 17.47

201.74 — 12.21 Retail 266.42 — 5.64 254.89 — 5.53 124.52 — 16.73 65.39 — 14.83

397.40 — 42.21 Technology 460.75 — 38.49 440.97 — 40.53 169.22 — 64.81 140.18 — 25.19

199.23 — 27.04 Telecommunications 189.83 — 9.77 193.49 — 13.59 179.83 — 50.35 124.34 — 34.34

102.56 — 18.04 Utilities 143.12 — 19.51 141.71 — 19.63 199.75 — 14.64 79.29 + 7.08

Indexes based on 12/31/91=100. in US Dollars. djindexes.com

NETCLOSE CHG.

AU - AustraliaAS - AustriaBE - BelgiumBZ - BrazilCA - CanadaCH - ChileDK - Denmark

FI - FinlandFR - FranceGR - GermanyGC - GreeceHK - Hong KongIN - IndonesiaIR - Ireland

IT - ItalyJP - JapanMA - MalaysiaMX - MexicoNV - NetherlandsNZ - New Zealand

NW - NorwayPH - PhilippinesPT - PortugalSA - South AfricaSI - SingaporeSK - South KoreaSP - Spain

SW - SwedenSZ - SwitzerlandTW - TaiwanTH - ThailandUK - United KingdomUS - United StatesVZ - Venezuela

Note: Stock prices are in local currencies. s 2001 Dow Jones & Co. Inc., All Rights Reserved

DOW JONES GLOBAL INDEXES5:30 P.M., Tuesday, September 11, 2001

DJ GLOBAL IN U.S. DOLLARS

REGION/ INDEXES, % 5:30 P.M. % 12-MO 12-MO 12-MO % FROM %

COUNTRY LOCAL CURRENCY CHG. INDEX CHG. CHG. HIGH LOW CHG. CHG. 12/31 CHG.

Americas 244.88 — 0.70 — 0.29 341.57 244.59 — 95.50 — 28.06 — 54.24 — 18.13

Brazil† 1295.63 — 5.26 191.65 — 15.47 — 7.47 374.18 191.65 — 174.19 — 47.61 — 139.98 — 42.21

Canada 228.19 — 4.11 168.42 — 7.47 — 4.25 282.77 168.42 — 102.22 — 37.77 — 57.02 — 25.29

Chile 249.27 — 2.19 136.79 — 6.10 — 4.27 156.41 136.13 — 14.81 — 9.77 — 6.61 — 4.61

Mexico 415.62 — 5.42 132.72 — 10.60 — 7.40 172.74 124.12 — 32.41 — 19.63 + 0.49 + 0.37

U.S. 252.57 + 0.00 252.57 + 0.00 + 0.00 349.26 251.37 — 95.76 — 27.49 — 54.31 — 17.70

Venezuela 485.01 — 3.42 40.08 — 1.47 — 3.54 49.29 36.30 — 3.60 — 8.25 + 1.00 + 2.57

Latin America 132.09 — 9.81 — 6.91 200.50 132.09 — 67.13 — 33.70 — 41.14 — 23.75

Europe 170.63 — 7.72 — 4.33 243.51 170.63 — 72.88 — 29.93 — 70.43 — 29.22

Austria 126.01 — 1.05 89.83 + 0.75 + 0.84 96.78 75.77 + 4.35 + 5.09 + 3.72 + 4.32

Belgium 225.75 — 5.34 161.02 — 5.90 — 3.53 199.75 156.78 — 21.07 — 11.57 — 35.65 — 18.13

Denmark 255.51 — 2.75 184.12 — 3.51 — 1.87 259.65 184.12 — 59.46 — 24.41 — 59.79 — 24.51

Finland 900.34 — 4.12 574.05 — 13.42 — 2.28 1696.21 574.05 — 937.96 — 62.03 — 961.96 — 62.63

France 243.91 — 6.96 176.24 — 9.64 — 5.19 263.39 176.24 — 87.15 — 33.09 — 76.34 — 30.22

Germany 198.44 — 7.88 141.02 — 9.19 — 6.12 227.85 141.02 — 85.04 — 37.62 — 77.80 — 35.55

Greece 231.52 + 0.40 121.83 + 2.76 + 2.32 208.18 103.35 — 85.10 — 41.13 — 47.46 — 28.03

Ireland 419.46 — 2.39 292.12 — 1.55 — 0.53 331.75 260.46 + 26.23 + 9.86 — 19.83 — 6.36

Italy 217.28 — 7.68 127.26 — 8.00 — 5.91 197.25 127.26 — 64.78 — 33.73 — 64.73 — 33.72

Netherlands 344.16 — 5.26 244.71 — 8.75 — 3.45 338.72 244.71 — 90.97 — 27.10 — 90.62 — 27.02

Norway 190.27 + 0.38 130.13 + 2.67 + 2.09 180.86 127.46 — 46.66 — 26.39 — 37.32 — 22.28

Portugal 205.14 — 4.49 126.96 — 3.48 — 2.67 200.48 126.96 — 67.50 — 34.71 — 57.31 — 31.10

Spain 282.60 — 4.24 151.43 — 3.74 — 2.41 217.91 151.43 — 63.19 — 29.44 — 41.87 — 21.66

Sweden 328.89 — 7.77 184.94 — 12.57 — 6.36 434.46 184.94 — 245.22 — 57.01 — 153.95 — 45.43

Switzerland 320.58 — 6.99 265.19 — 11.76 — 4.25 415.56 265.19 — 108.35 — 29.01 — 150.29 — 36.17

United Kingdom 194.87 — 5.34 153.79 — 6.71 — 4.18 200.57 153.79 — 44.19 — 22.32 — 46.03 — 23.04

Euro Zone 166.82 — 7.98 — 4.57 252.79 166.82 — 85.97 — 34.01 — 79.79 — 32.36

Europe (ex. U.K.) 177.20 — 8.21 — 4.43 268.80 177.20 — 91.60 — 34.08 — 85.86 — 32.64

South Africa 278.28 — 2.17 88.65 — 2.91 — 3.18 103.13 82.19 — 12.40 — 12.27 — 5.24 — 5.58

Asia/Pacific 77.61 + 0.99 + 1.29 111.55 76.62 — 32.54 — 29.54 — 15.43 — 16.59

Australia 217.52 — 0.10 149.53 + 2.49 + 1.69 164.55 133.82 — 9.02 — 5.69 — 6.64 — 4.25

Hong Kong 179.39 + 0.35 178.87 + 0.62 + 0.35 278.08 178.25 — 99.22 — 35.68 — 66.70 — 27.16

Indonesia 161.22 — 0.05 35.33 — 0.08 — 0.23 37.49 21.12 — 1.44 — 3.92 + 4.09 + 13.08

Japan 68.04 + 0.25 71.31 + 1.31 + 1.87 108.93 70.00 — 33.76 — 32.13 — 16.99 — 19.24

Malaysia 128.04 — 0.67 91.68 — 0.63 — 0.68 104.76 71.97 — 5.90 — 6.04 + 3.18 + 3.59

New Zealand 125.69 + 0.38 100.93 + 1.06 + 1.06 109.17 86.94 — 5.47 — 5.14 + 4.25 + 4.40

Philippines 120.71 + 0.16 61.12 + 0.01 + 0.02 87.10 59.08 — 16.49 — 21.25 — 12.40 — 16.86

Singapore 117.59 + 1.03 108.88 + 1.14 + 1.06 144.81 103.21 — 35.93 — 24.81 — 26.44 — 19.54

South Korea 99.04 — 1.82 58.16 — 1.36 — 2.28 79.33 49.86 — 21.17 — 26.68 + 5.02 + 9.45

Taiwan 109.39 — 2.55 81.32 — 2.18 — 2.61 150.92 78.07 — 68.48 — 45.71 — 14.56 — 15.18

Thailand 58.94 — 0.54 31.27 — 0.05 — 0.16 34.44 24.81 + 0.32 + 1.02 + 4.08 + 15.01

Asia/Pacific (ex. Japan) 124.51 — 0.03 — 0.02 161.68 124.51 — 37.14 — 22.98 — 13.84 — 10.01

World (ex. U.S.) 117.94 — 3.07 — 2.54 168.93 117.94 — 50.99 — 30.18 — 38.94 — 24.82

DOW JONES WORLD STOCK INDEX 166.80 — 1.85 — 1.10 233.89 166.80 — 67.03 — 28.67 — 44.10 — 20.91

Indexes based on 12/31/91=100. †Local Currency index shown in 000s. s 2001 Dow Jones & Co. Inc. All Rights Reserved.

CASHPRICES

STOCK MARKET INDEXES9/11/01 NET PCT YTD YTD

EXCHANGE INDEX CLOSE CHG CHG NET CHG PCT CHG

Argentina Merval Index 272.34 — 14.87 — 5.18 — 144.43 — 34.65

Australia All Ordinaries 3183.20 — 0.30 — 0.01 + 28.50 + 0.90

Belgium Bel-20 Index 2581.19 — 148.95 — 5.46 — 443.30 — 14.66

Brazil Sao Paulo Bovespa 10827.96 — 1094.43 — 9.18 — 4431.33 — 29.04

Britain London FTSE 100-share 4746.00 — 287.70 — 5.72 — 1476.50 — 23.73

Britain London FTSE 250-share 5599.40 — 150.60 — 2.62 — 948.10 — 14.48

Canada Toronto 300 Comp. 7048.80 — 295.90 — 4.03 — 1884.88 — 21.10

Chile Santiago IPSA 108.62 — 3.13 — 2.80 + 8.62 + 8.62

China Dow Jones China 88 148.10 — 0.08 — 0.05 — 34.66 — 18.96

China Dow Jones Shanghai 217.49 + 0.66 + 0.30 — 33.09 — 13.21

China Dow Jones Shenzhen 211.36 + 0.18 + 0.09 — 43.10 — 16.94

Europe DJ Stoxx (Euro) 261.50 — 17.32 — 6.21 — 98.29 — 27.32

Europe DJ Stoxx 50 (Euro) 3178.23 — 205.42 — 6.07 — 1378.90 — 30.26

Euro Zone DJ Euro Stoxx (Euro) 272.07 — 18.56 — 6.39 — 119.73 — 30.56

Euro Zone DJ Euro Stoxx 50 (Euro) 3220.27 — 220.38 — 6.41 — 1552.12 — 32.52

France Paris CAC 40 4059.75 — 323.99 — 7.39 — 1866.67 — 31.50

Germany Frankfurt Xetra DAX 4273.53 — 396.60 — 8.49 — 2160.08 — 33.57

Hong Kong Hang Seng 10417.36 + 51.04 + 0.49 — 4678.17 — 30.99

India Bombay Sensex 3150.40 — 33.23 — 1.04 — 821.72 — 20.69

Italy Milan MIBtel 20793.00 — 1666.00 — 7.42 — 9530.00 — 31.43

Japan Tokyo Nikkei 225 10292.95 + 97.26 + 0.95 — 3492.74 — 25.34

Japan Tokyo Nikkei 300 211.63 + 0.66 + 0.31 — 51.37 — 19.53

Japan Tokyo Topix Index 1058.12 + 2.14 + 0.20 — 225.55 — 17.57

Mexico I.P.C. All-Share 5531.02 — 325.17 — 5.55 — 121.17 — 2.14

Netherlands Amsterdam AEX 449.94 — 33.59 — 6.95 — 187.66 — 29.43

Singapore Straits Times 1566.76 + 8.31 + 0.53 — 360.07 — 18.69

South Africa Johannesburg All Share 8459.30 — 198.70 — 2.29 + 133.10 + 1.60

South Korea Composite 540.57 — 10.16 — 1.84 + 35.95 + 7.12

Spain IBEX 35 7328.40 — 350.30 — 4.56 — 1781.40 — 19.55

Sweden SX All Share 191.47 — 16.09 — 7.75 — 95.03 — 33.17

Switzerland Zurich Swiss Market 5695.10 — 433.20 — 7.07 — 2440.30 — 30.00

Taiwan Weighted Index 4176.93 — 112.17 — 2.62 — 567.01 — 11.95

NA-Not available

Markets in Europe, Latin America PostHuge Point Losses After Terrorist Attacks

B4 THE WALL STREET JOURNAL WEDNESDAY, SEPTEMBER 12, 2001 * *

BLACKBLACK P1JW255019-0-B00500-1---XA P1JW255019-0-B00500-1---XAP1JW255019-0-B00500-1---XA EE,MW,SW,WE

212449509/12/2001

P1JW255019-0-B00500-1---XA


Open Interest Reflects Previous Trading Day.

CURRENCY TRADINGTuesday, September 11, 2001

EXCHANGE RATESThe foreign exchange mid-range rates below apply to tradingamong banks in amounts of $1 million and more, as quotedat 2 p.m. Eastern time by Reuters and other sources. Retailtransactions provide fewer units of foreign currency per dollar.Rates for the 12 Euro currency countries are derived from thelatest dollar-euro rate using the exchange ratios set 1/1/99.

U.S. $ EQUIV. CURRENCY PER U.S. $Country Tue Mon Tue MonArgentina (Peso) ............ 1.0003 1.0003 .9997 .9997Australia (Dollar) ............ .5224 .5136 1.9144 1.9472Austria (Schilling) .......... .06645 .06537 15.048 15.298Bahrain (Dinar)............... 2.6525 2.6525 .3770 .3770Belgium (Franc) ............. .0227 .0223 44.1163 44.8470Brazil (Real).................... .3766 .3838 2.6555 2.6055Britain (Pound)............... 1.4751 1.4579 .6779 .68591-month forward ............ 1.4737 1.4567 .6786 .68653-months forward........... 1.4697 1.4526 .6804 .68846-months forward........... 1.4647 1.4477 .6827 .6908Canada (Dollar) .............. .6384 .6401 1.5663 1.56221-month forward ............ .6382 .6398 1.5670 1.56293-months forward........... .6376 .6393 1.5683 1.56426-months forward........... .6373 .6390 1.5690 1.5650Chile (Peso) .................. .001464 .001496 683.00 668.45China (Renminbi) ........... .1208 .1208 8.2769 8.2767Colombia (Peso)............. .0004269 .0004300 2342.25 2325.50Czech. Rep. (Koruna) ....Commercial rate ............. .02676 .02636 37.372 37.930Denmark (Krone)............ .1218 .1209 8.2115 8.2730Ecuador (US Dollar)-e ... 1.0000 1.0000 1.0000 1.0000Finland (Markka) ............ .1538 .1513 6.5023 6.6100France (Franc)................ .1394 .1371 7.1736 7.29251-month forward ............ .1393 .1370 7.1788 7.29743-months forward........... .1391 .1368 7.1878 7.30886-months forward........... .1390 .1366 7.1958 7.3214Germany (Mark) ............. .4675 .4599 2.1389 2.17441-month forward ............ .4672 .4596 2.1405 2.17583-months forward........... .4666 .4589 2.1432 2.17926-months forward........... .4661 .4581 2.1455 2.1830Greece (Drachma).......... .002683 .002640 372.65 378.83Hong Kong (Dollar) ....... .1282 .1282 7.7998 7.7999Hungary (Forint)............. .003566 .003563 280.47 280.66India (Rupee).................. .02109 .02113 47.410 47.330Indonesia (Rupiah) ......... .0001100 .0001102 9090 9075Ireland (Punt) ................. 1.1610 1.1421 .8613 .8756Israel (Shekel) ................ .2275 .2322 4.3950 4.3075Italy (Lira) ....................... .0004723 .0004646 2117.53 2152.61

U.S. $ EQUIV. CURRENCY PER U.S. $Country Tue Mon Tue MonJapan (Yen) .................... .008392 .008269 119.16 120.931-month forward ............ .008417 .008293 118.81 120.593-months forward........... .008462 .008337 118.18 119.946-months forward........... .008523 .008404 117.33 118.99Jordan (Dinar) ................ 1.4069 1.4069 .7108 .7108Kuwait (Dinar) ................ 3.2852 3.2733 .3044 .3055Lebanon (Pound) ........... .0006604 .0006604 1514.25 1514.25Malaysia (Ringgit)-b....... .2632 .2632 3.8000 3.8001Malta (Lira)..................... 2.2635 2.2386 .4418 .4467Mexico (Peso) ................Floating rate.................... .1045 .1065 9.5700 9.3880Netherlands (Guilder)..... .4149 .4082 2.4100 2.4499New Zealand (Dollar)..... .4355 .4317 2.2962 2.3164Norway (Krone) .............. .1144 .1126 8.7444 8.8825Pakistan (Rupee)............ .01565 .01565 63.900 63.900Peru (new Sol) .............. .2864 .2872 3.4920 3.4815Philippines (Peso) .......... .01949 .01952 51.300 51.225Poland (Zloty)-d ............. .2356 .2376 4.2444 4.2093Portugal (Escudo) .......... .004561 .004487 219.25 222.88Russia (Ruble)-a ............ .03393 .03396 29.470 29.445Saudi Arabia (Riyal) ...... .2666 .2668 3.7506 3.7482Singapore (Dollar).......... .5714 .5713 1.7501 1.7503Slovak Rep. (Koruna) .... .02105 .02081 47.495 48.055South Africa (Rand) ...... .1162 .1172 8.6050 8.5326South Korea (Won) ....... .0007746 .0007782 1291.00 1285.00Spain (Peseta)................ .005496 .005406 181.96 184.98Sweden (Krona) ............. .0952 .0941 10.5079 10.6255Switzerland (Franc)........ .6094 .5930 1.6410 1.68631-month forward ............ .6095 .5931 1.6406 1.68603-months forward........... .6098 .5935 1.6400 1.68506-months forward........... .6105 .5942 1.6379 1.6829Taiwan (Dollar) ............... .02884 .02886 34.670 34.650Thailand (Baht)............... .02252 .02240 44.400 44.640Turkey (Lira)-f ................ .00000066 .00000070 1510000 1437500United Arab (Dirham).... .2723 .2723 3.6724 3.6730Uruguay (New Peso) .....Financial .......................... .07342 .07446 13.620 13.430Venezuela (Bolivar) ........ .001340 .001341 746.50 745.50

SDR.................................. 1.2710 1.2814 .7868 .7804Euro ................................. .9144 .8995 1.0936 1.1117Special Drawing Rights (SDR) are based on exchange ratesfor the U.S., German, British, French , and Japanese curren-cies. Source: International Monetary Fund.a-Russian Central Bank rate. b-Government rate. d-Floatingrate; trading band suspended on 4/11/00. e-Adopted U.S.dollar as of 9/11/00. f-Floating rate, eff. Feb. 22.

BANXQUOTER MONEY MARKETSTuesday, September 11, 2001

Average Yields of Major BanksMMI* 1 MO. 2 MOS. 3 MOS. 6 MOS. 1 YR. 2 YRS. 5 YRS.

NEW YORKSavings ....................................... 2.10% 2.76% 2.85% 2.95% 3.39% 3.99%Jumbos ...................................... 2.82% 2.45% 2.63% 2.73% 2.90% 3.30% 3.99%

CALIFORNIASavings ....................................... 2.06% 3.17% 3.25% 3.34% 3.75% 4.64%Jumbos ...................................... 2.51% 3.15% 3.21% 3.27% 3.37% 3.76% 4.69%

PENNSYLVANIASavings ....................................... 2.07% 2.40% 2.42% 2.48% 3.11% 4.50%Jumbos ...................................... 2.90% 3.14% 3.14% 3.25% 3.27% 3.42% 3.89% 4.65%

ILLINOISSavings ....................................... 2.22% 2.71% 2.83% 2.95% 3.50% 4.34%Jumbos ...................................... 2.83% 3.08% 3.12% 3.11% 3.14% 3.27% 3.67% 4.83%

TEXASSavings ....................................... 2.65% 2.67% 2.83% 2.90% 3.23% 4.20%Jumbos ...................................... 3.00% 2.89% 2.97% 2.99% 3.07% 3.61% 4.68%

FLORIDASavings ....................................... 3.00% 3.08% 3.23% 3.18% 3.50% 4.17%Jumbos ...................................... 3.27% 2.70% 2.75% 3.20% 3.20% 3.30% 3.80% 4.88%

U.S. BANK AVERAGESavings ....................................... 2.20% 2.80% 2.94% 3.11% 3.58% 4.37%Jumbos ...................................... 2.93% 2.89% 2.82% 2.97% 3.10% 3.27% 3.76% 4.66%

WEEKLY CHANGE (in percentage points)Savings ....................................... — 0.02 ... ... ... — 0.01 — 0.02 — 0.01 — 0.02Jumbos ...................................... — 0.08 — 0.01 — 0.01 — 0.03 — 0.02 — 0.02 — 0.06 — 0.08

Savings CD Yields Offered Through Leading Brokers3 MOS. 6 MOS. 1 YR. 2 YRS. 5 YRS.

BROKER AVERAGE ............................................................ 3.24% 3.45% 3.45% 3.87% 4.99%

WEEKLY CHANGE .............................................................. — 0.10 — 0.09 — 0.08 — 0.16 — 0.04

Money Market Investments include MMDA, NOW, savingsdeposits, passbook and other liquid accounts.Each depositor is insured by the Federal Deposit InsuranceCorp. (FDIC) up to $100,000 per issuing institution.COMPOUND METHODS: c-Continuously. d-Daily.w-Wkly. m-Mthly. q-Qrtly. s-Semi-annually. a-Annually.SIMPLE INTEREST: si-Paid Monthly. e-Paid Semi-annually.n-Paid Annually. y-Paid at Maturity.OTHER SYMBOLS: APY-Annual percentage yield. F-Floating

rate P-Prime CD. T-T-Bill CD.BD-Broker-Dealer. pp-Priced be-low par.DAY BASIS: A-Actual/Actual. B-30/360. C-Actual/360.Theinformation included in this table has been obtained directlyfrom broker-dealers, banks and savings institutions, but theaccuracy and validity cannot be guaranteed. Rates are sub-ject to change. Yields, terms and capital adequacy should beverified before investing. Only well capitalized or adequatelycapitalized depository institutions are quoted.

HIGH YIELD SAVINGSSmall minimum balance/opening deposit, generally $500 to $25,000

Money Market Investments* Rate APYWFB.com, Irvine CA........................... 4.35% dA 4.45%ING DIRECT, Wilmington DE............... 4.31% mA 4.40%Bofi.com, San Diego CA .................... 4.30% dA 4.39%ZionsBank.com, Salt Lake City UT...... 4.25% dA 4.34%IndyMacBank.com, Pasadena CA........ 4.21% dA 4.30%

One Month CDs Rate APYFirst Commercial, Orlando FL ............. 3.74% mA 3.80%Bofi.com, San Diego CA .................... 3.50% dA 3.56%Bluebonnet Savings, Dallas TX .......... 3.50% mA 3.56%IndyMacBank.com, Pasadena CA........ 3.49% dA 3.55%BkTheHooch.com, Alpharetta GA........ 3.45% siA 3.51%

Two Months CDs Rate APYFirst Commercial, Orlando FL ............. 3.74% mA 3.80%Bofi.com, San Diego CA .................... 3.50% dA 3.56%Bluebonnet Savings, Dallas TX .......... 3.50% mA 3.56%IndyMacBank.com, Pasadena CA........ 3.49% dA 3.55%BkTheHooch.com, Alpharetta GA........ 3.45% siA 3.50%

Three Months CDs Rate APYFBAZonline.com, Scottsdale AZ.......... 4.26% dA 4.35%nBank, Commerce GA........................ 4.00% dA 4.08%NewsoFedl.com, Birmingham AL......... 3.95% siA 4.01%First Bank, Louisville KY .................... 3.92% dA 4.00%IndyMacBank.com, Pasadena CA........ 3.83% dA 3.90%

Six Months CDs Rate APYFBAZonline.com, Scottsdale AZ ......... 4.26% dA 4.35%DeepGreenBk.com, Seven Hills OH .....4.18% dA 4.27%NetBank.com, Alpharetta GA ............. 4.17% dA 4.26%IndyMacBank.com, Pasadena CA ....... 4.12% dA 4.21%Giantbank.com, Ft. Lauderdale FL ..... 4.12% dA 4.21%

One Year CDs Rate APYDeepGreenBk.com, Seven Hills OH .....4.46% dA 4.56%First Trade Union, Boston MA............ 4.45% mA 4.54%NetBank.com, Alpharetta GA ............. 4.41% dA 4.51%Advanta Bk Cp, Salt Lake City UT ..... 4.31% dA 4.40%IndyMacBank.com, Pasadena CA ....... 4.26% dA 4.35%

Two Years CDs Rate APYDeepGreenBk.com, Seven Hills OH .....4.85% dA 4.97%Advanta Bk Cp, Salt Lake City UT ..... 4.78% dA 4.90%NewsoFedl.com, Birmingham AL ........ 4.90% siA 4.90%CapitalOne.com, Glen Allen VA .......... 4.74% dA 4.85%First South, Tallahassee FL ............... 4.59% dA 4.70%

Five Years CDs Rate APYNewsoFedl.com, Birmingham AL ... ... 5.65% siA 5.65%Providian National, Tilton NH ...... .......5.50% dA 5.65%Providian.com, Salt Lake City UT ... ....5.50% dA 5.65%CapitalOne.com, Glen Allen VA .... .... 5.45% dA 5.60%ETradeBank.com, Arlington VA............5.35% dA 5.50%

HIGH YIELD JUMBOSLarge minimum balance/opening deposit, generally $95,000 to $100,000

Money Market Investments* Rate APYBankCaroLine.com, Greenvill SC......... 4.50% dA 4.60%First Bank, Louisville KY .................... 4.49% dA 4.59%ProGrowth Bank, Nicollet MN ............. 4.47% mA 4.56%ING DIRECT, Wilmington DE............... 4.31% mA 4.40%Bofi.com, San Diego CA .................... 4.30% dA 4.39%

One Month Jumbo CDs Rate APYFirst Commercial, Orlando FL ............. 3.83% mA 3.90%Great Southern Bk, Springfield MO..... 3.69% siA 3.75%Westcoast Savings, Seal Beach CA.... 3.64% siA 3.70%HomeStreet Bank, Seattle WA ........... 3.64% siA 3.70%AEA Bank, Seattle WA....................... 3.60% siA 3.66%

Two Months Jumbo CDs Rate APYFirst Commercial, Orlando FL ............. 3.83% mA 3.90%Bluebonnet Savings, Dallas TX .......... 3.50% mA 3.56%Bofi.com, San Diego CA .................... 3.50% dA 3.56%Advanta Bk Cp, Salt Lake City UT...... 3.50% siA 3.55%IndyMacBank.com, Pasadena CA........ 3.49% dA 3.55%

Three Months Jumbo CDs Rate APYNextBank.com, Phoenix AZ ................ 4.15% siA 4.22%First Commercial, Orlando FL ............. 3.83% mA 3.90%Guardian Savings, Houston TX........... 3.84% qA 3.90%IndyMacBank.com, Pasadena CA........ 3.83% dA 3.90%American General, Midvale UT ........... 3.83% dA 3.90%

Six Months Jumbo CDs Rate APYNextBank.com, Phoenix AZ................ 4.25% siA 4.30%DeepGreenBk.com, Seven Hills OH .....4.18% dA 4.27%NetBank.com, Alpharetta GA ............. 4.17% dA 4.26%CapitalOne.com, Glen Allen VA .......... 4.12% dA 4.21%IndyMacBank.com, Pasadena CA ....... 4.12% dA 4.21%

One Year Jumbo CDs Rate APYDeepGreenBk.com, Seven Hills OH .....4.46% dA 4.56%NetBank.com, Alpharetta GA ............. 4.41% dA 4.51%State Bank, Fargo ND ....................... 4.40% yA 4.40%CapitalOne.com, Glen Allen VA .......... 4.31% dA 4.40%Bofi.com, San Diego CA .....................4.26% dA 4.35%

Two Years Jumbo CDs Rate APYDeepGreenBk.com, Seven Hills OH .....4.85% dA 4.97%CapitalOne.com, Glen Allen VA .......... 4.84% dA 4.96%Providian National, Tilton NH ............. 4.69% dA 4.80%Providian.com, Salt Lake City UT ....... 4.69% dA 4.80%State Bank, Fargo ND ....................... 4.75% yA 4.75%

Five Years Jumbo CDs Rate APYCapitalOne.com, Glen Allen VA .......... 5.60% dA 5.76%Providian National, Tilton NH ............. 5.59% dA 5.75%Providian.com, Salt Lake City UT ....... 5.59% dA 5.75%ETradeBank.com, Arlington VA............5.35% dA 5.50%Direct Merchants, Scottsdale AZ........ 5.35% dA 5.50%

Additional information on deposits and loans for all 50states is available in the BanxQuote Banking Centerin the online Wall Street Journal at WSJ.com.

Source: BanxCorp 212-499-9100 WWW.BANX.COM


OILBrent Crude (IPE)1,000 net bbls.; $ per bbl.STRIKE CALLS-SETTLE PUTS-SETTLEPRICE Nov Dec Jan Nov Dec Jan2800 1.50 1.50 1.38 0.63 1.28 1.912850 1.20 1.26 1.18 0.83 1.54 2.212900 0.95 1.06 1.00 1.08 1.84 2.532950 0.74 0.87 0.85 1.37 2.15 2.883000 0.56 0.72 0.72 1.69 2.50 3.253050 0.42 0.58 0.60 2.05 2.86 3.63Est vol 3,160 Mn na calls na putsOp int Mon na calls na puts

FUTURES OPTIONSPRICES

METALS AND PETROLEUMBrent Crude (IPE) 1,000 net bbls.; $ per bbl.Oct 27.39 31.05 27.25 29.06 + 1.61 31.05 22.20 37,700Nov 27.30 31.00 27.22 28.87 + 1.50 31.00 23.10 50,313Dec 26.93 30.00 26.89 28.22 + 1.23 30.11 18.35 38,930Ja02 26.42 29.00 26.42 27.47 + 0.99 30.00 22.21 29,910Feb 26.10 27.60 26.10 27.02 + 0.88 27.60 22.73 12,279Mar 25.80 25.80 25.76 26.57 + 0.78 29.50 19.21 7,171Apr 25.47 25.47 25.45 26.19 + 0.73 26.15 22.50 6,106Jun 24.80 24.80 24.80 25.49 + 0.66 28.76 18.00 14,649Dec 23.50 24.35 23.50 23.77 + 0.33 25.58 17.03 14,061Est vol 137,392; vol Mon 70,230; open int 222,407, —2,893.

TOTAL RATES OF RETURN ON INTERNATIONAL BONDSIn percent, based on J.P. Morgan Government Bond Index, Dec. 31, 1987=100

LOCAL CURRENCY TERMS U.S. DOLLAR TERMSINDEX SINCE INDEX SINCEVALUE 1 DAY 1 MO 3 MOS 12/31 VALUE 1 DAY 1 MO 3 MOS 12/31

Japan 211.84 — 0.04 — 0.23 — 0.43 + 3.16 216.06 + 1.83 + 2.44 + 2.25 — 0.74

Britain 378.49 + 0.45 + 0.32 + 3.50 + 2.67 294.87 + 1.21 + 3.32 + 10.78 + 0.98

Germany 247.57 + 0.27 + 0.44 + 2.67 + 4.13 180.18 + 1.17 + 1.79 + 10.68 + 0.64

France 328.91 + 0.26 + 0.47 + 2.77 + 4.35 241.93 + 1.16 + 1.82 + 10.79 + 0.86

Canada 355.78 + 0.02 + 1.80 + 3.41 + 4.97 294.21 — 0.33 — 0.23 — 0.17 + 0.32

Netherlands 263.43 + 0.29 + 0.50 + 2.75 + 4.24 191.44 + 1.19 + 1.86 + 10.76 + 0.75

EMU-d 173.44 + 0.21 + 0.45 + 2.73 + 4.48 128.33 + 1.10 + 1.79 + 10.73 + 0.97

Global-a 297.44 + 0.27 + 0.68 + 2.47 + 4.64 248.11 + 1.13 + 1.92 + 6.37 + 1.95

EMBI+-b 208.78 0.00 + 1.09 — 4.60 + 3.39 208.78 0.00 + 1.09 — 4.60 + 3.39

a-18 int'l govt. markets. b-external-currency emerging mkt. debt, Dec 31, 1993=100. d-Jan. 2, 1995=100.

DJ ELECTRICITY PRICE INDEXESFlow date: Tuesday, September 11, 2001

DJ COB - California-Oregon and Nevada-Oregon Borders

Firm Sep. 11 Sep. 10 Sep. 9 Sep. 8On Peak 28.69 29.03 n.q. 27.84Volume 8000 9600 n.q. 9200Off Peak 22.71 25.14 n.q. 22.64Volume 1400 2800 n.q. 2800

Non FirmOn Peak n.a. 39.00 n.q. 28.75sVolume n.a. 105 n.q. 0Off Peak n.a. 24.50s 25.00 22.00sVolume n.a. 0 90 0

DJ Palo Verde - Palo Verde and West Wing, Arizona

Firm Sep. 11 Sep. 10 Sep. 9 Sep. 8On Peak 33.19 33.28 39.00 31.78Volume 40048 45488 400 57632Off Peak 19.51 24.62 22.00s 19.04Volume 9576 12752 0 16728

Non FirmOn Peak n.a. 36.52 24.29 23.33Volume n.a. 1670 764 2941Off Peak n.a. 25.81 17.30 17.22Volume n.a. 319 921 481

DJ Mid-Columbia - Mid-Columbia

Firm Sep. 11 Sep. 10 Sep. 9 Sep. 8On Peak 27.92 28.48 27.90 27.70Volume 27680 37760 4000 46912Off Peak 22.67 24.96 22.00s 22.07Volume 8160 10720 0 10208

Non FirmOn Peak n.a. 29.00s 24.60 24.38Volume n.a. 0 500 1014Off Peak n.a. 25.41 23.00 17.73Volume n.a. 485 150 200

DJ Mead/Marketplace - Mead, Marketplace,McCullough and Eldorado.

Firm Sep. 11 Sep. 10 Sep. 9 Sep. 8On Peak 31.50 33.78 29.00s 30.81Volume 3200 3200 0 6000Off Peak 18.35 25.29 22.00s 19.29Volume 1000 1304 0 1200


DJ 4C - Four Corners, Shiprock and San Juan, New MexicoFirm Sep. 11 Sep. 10 Sep. 9 Sep. 8

On Peak 32.21 32.85 29.00s 31.08Volume 3792 4160 0 4192Off Peak 18.09 24.21 22.00s 17.51Volume 1704 2288 0 1504


DJ NP-15 - NP-15Firm Sep. 11 Sep. 10 Sep. 9 Sep. 8

On Peak 30.56 30.72 n.q. 29.32Volume 15200 23248 n.q. 21008Off Peak 24.03 25.80 n.q. 23.56Volume 5600 10288 n.q. 11768

DJ SP-15 - SP-15Firm Sep. 11 Sep. 10 Sep. 9 Sep. 8

On Peak 30.30 30.55 n.q. 29.24Volume 12800 20656 n.q. 27792Off Peak 21.32 24.59 n.q. 20.95Volume 4680 14280 n.q. 11624

DJ PJM Western Hub - PJM Western HubFirm Sep. 11 Sep. 10 Sep. 9 Sep. 8

On Peak 33.33 34.10 n.q. n.q.Volume 60800 46400 n.q. n.q.

DJ Cinergy - Cinergy control areaFirm Sep. 11 Sep. 10 Sep. 9 Sep. 8

On Peak 23.61 24.88 n.q. n.q.Volume 89600 88000 n.q. n.q.

EXPLANATORY NOTESFigures represent weighted average price of electricity tradedat the indicated hubs. All indexes quoted in dollars per mega-watt hour; volumes in megawatt hours. Firm: Electricity thatmeets the minimum criteria of being Financially Firm andbacked by liquidating damages. Non Firm: Electricity Electricenergy subject to interruption at any time. On Peak: 16-hourperiod of heavy demand. Off Peak: Eight-hour period of lightdemand. r: Revised. n.q.: No quote. s: Surveyed data. n.a.:One-day lag for non-firm, not available for others. For ques-tions or historical data from Dow Jones, including 24 HourFirm index data, call 609-520-4663.

OTHER ENERGY INDEXESMIRANT NATIONAL POWER INDEXDemand weighted average price for the continentalUnited States.Firm Sep. 12 % Chg 52wk Hi 52wk Lo

On Peak 25.25 — 2.40 216.00 25.25MIRANT EAST POWER INDEXFirm Sep. 12 % Chg 52wk Hi 52wk Lo

On Peak 24.22 — 2.96 129.66 24.22MIRANT WEST POWER INDEXFirm Sep. 12 % Chg 52wk Hi 52wk Lo

On Peak 29.40 — .61 95.34 28.33

DJ FIBER OPTIC INDEXNEW YORK-LOS ANGELES-OC-3cWeek Contract $/DS0/Miles/MthSep 03-Sep 07 Jan-Dec 2002 0.000375N

For additional routes or historical data from Dow Jones, call609-520-4663.

INSIDER TRADING SPOTLIGHT

MONEY RATESTuesday, September 11, 2001

The key U. S. and foreign annual interest rates below are aguide to general levels but don't always represent actualtransactions.PRIME RATE: 6.50% (effective 08/22/01). The base rate oncorporate loans posted by at least 75% of the nation's 30largest banks.DISCOUNT RATE: 3.00% (effective 08/21/01). The chargeon loans to depository institutions by the Federal ReserveBanks.CALL MONEY: 5.25% (effective 08/22/01). The charge onloans to brokers on stock exchange collateral. Source: Reu-ters.EURO COMMERCIAL PAPER: Placed directly by General Elec-tric Capital Corp.: 4.26% 30 days; 4.22% two months;4.19% three months; 4.16% four months; 4.12% fivemonths; 4.08% six months.LONDON LATE EURODOLLARS: 3.50% - 3.38% one month;3.38% - 3.25% two months; 3.38% - 3.25% three months;3.38% - 3.25% four months; 3.38% - 3.25% five months;3.31% - 3.19% six months.LONDON INTERBANK OFFERED RATES (LIBOR): 3.4900%one month; 3.3600% three months; 3.3400% six months;3.4600% one year. British Banker's Association average of

interbank offered rates for dollar deposits in the Londonmarket based on quotations at 16 major banks. Effectiverate for contracts entered into two days from date appearingat top of this column.EURO LIBOR: 4.30138% one month; 4.23900% threemonths; 4.12650% six months; 3.99650% one year. BritishBanker's Association average of interbank offered rates foreuro deposits in the London market based on quotations at16 major banks. Effective rate for contracts entered into twodays from date appearing at top of this column.EURO INTERBANK OFFERED RATES (EURIBOR): 4.301%one month; 4.242% three months; 4.127% six months;3.997% one year. European Banking Federation-sponsoredrate among 57 Euro zone banks.FOREIGN PRIME RATES: Canada 5.75%; Germany 4.25%;Japan 1.375%; Switzerland 5.375%; Britain 5.00%. Theserate indications aren't directly comparable; lending practicesvary widely by location.TREASURY BILLS: Results of the Monday, September 10,2001, auction of short-term U.S. government bills, sold at adiscount from face value in units of $1,000 to $1 million:3.180% 13 weeks; 3.120% 26 weeks.CONSUMER PRICE INDEX: July, 177.5, up 2.7% from a yearago. Bureau of Labor Statistics.

BOND MARKET DATA BANK 9/11/01INTERNATIONAL GOVERNMENT BONDS

MATURITYCOUPON (Mo. /YR.) PRICE CHANGE YIELD*

Japan (3 p.m. Tokyo)

4.70% 09/03 109.36 — 0.01 0.07%

3.00 09/05 110.61 ... 0.33

1.40 09/11 99.83 — 0.05 1.42

2.00 06/21 99.37 ... 2.05

United Kingdom (5 p.m. London)

7.00% 06/02 101.95 + 0.25 4.264%

9.50 04/05 114.97 + 0.44 4.908

9.00 07/11 132.02 + 0.40 4.863

4.25 06/32 93.46 — 0.04 4.652

MATURITYCOUPON (Mo. /YR.) PRICE CHANGE YIELD*

Germany (5 p.m. London)

3.25% 02/04 99.07 + 0.67 3.651%

5.00 05/05 103.67 + 0.89 3.904

5.00 07/11 101.69 + 0.63 4.775

5.50 01/31 100.82 + 0.58 5.446

Canada (3 p.m. Eastern Time)

6.00% 12/02 102.85 + 0.15 3.583%

5.25 09/03 102.28 + 0.09 4.033

6.00 06/08 105.48 + 0.66 5.027

8.00 06/27 129.49 + 0.57 5.782

*Equivalent to semi-annual compounded yields to maturity

1

STOCKS EX-DIVIDEND SEPT. 13COMPANY AMOUNTAllegheny Energy ........ .43Amerada Hess Corp .... .30AmSouth Bancorp....... .21BRT Realty Trust ......... .22BanColombia S.A........ t.0157BroadWing pfB............ .84375CaliforniaFed pfA ........ .570312Colgte-Pal $4.25pf...... 1.0625ColCAInsdMuni ............. .0845Col InsdMuni............... .086Col IntrmktIncoI .......... .066Col InvGrdMuni ............ .053ColonialProp pfC......... .6552Colonia Props pfA ...... .5469Delphi Auto Systms..... .07Dial Corp .................... .04Duff&PhelpsUt&CpBd.. .085EBI Capital Tr I........... .53125Freddie Mac................ .20FreddieMac 1999pfL .. .74625FreddieMac 5%pf ....... .625FreddieMac 5.79%pf ... .72375FreddieMac pfC .......... .765625FreddieMac pfD .......... .7675FreddieMac pfH .......... .6375FredMac VarRte Pfd ... .602125Hancock PatPrDivI ...... .054Hatteras Inco Secs...... .085

COMPANY AMOUNTRegnl Bk HOLDRs........ .0252Kraft Foods A ............. .13Maine Publ Svc .......... .35NationsGovInco2003 ... .0364NationsGovInco2004 ... .039NCE PetrofdTr ............. b.25Nike Inc B .................. .12One Liberty Props........ .30One LibertyProp pf ..... .40PennEng&Mfg............... .08PennEng&Mfg A........... .08Philip Morris Co .......... .58Royal Carribean ........... .13SAL Tr PfdI ................. .609375Sabine Royalty Tr ....... .24371Scudder HighInco ....... .0675ScudderIntermedGvt .... .04ScudderMulti Mkt ....... .0775ScudderMuniInco ........ .06ScudderStrat Inco........ .10ScudderStrat Muni....... .0625Southwest Secs Grp.... .10Sovran Self StorB........ .615625Vulcan Intl................... .20t-Approximate U.S. dollar amountper American Depositary Re-ceipt/Share before adjustment forforeign taxes.

FUTURES PRICES

LONDON METALEXCHANGE PRICES

Quotations in U.S. Dollars per metric ton at the close of secondring trading in the morning; official closing prices.

Tuesday, September 11, 2001Bid Chg. Asked Chg.

Aluminum-Hi-Spot ... 1342.00 + 2.00 1343.00 + 2.003 months.............. 1365.00 + 1.00 1366.00 + 1.50

Tin-Spot .................. 3725.00 + 15.00 3730.00 + 10.003 months.............. 3775.00 + 20.00 3780.00 + 20.00

Copper-Cath-Hi-Spot 1421.00 + 9.00 1421.50 + 9.003 months.............. 1444.00 + 7.00 1445.00 + 7.50

Lead-Spot ............... 469.00 + 1.00 470.00 + 1.003 months.............. 479.00 + 2.00 479.50 + 1.50

Nickel-Spot ............. 5015.00 + 5.00 5020.00 + 5.003 months.............. 5065.00 + 5.00 5070.00 0.00

Zinc-Sp Hi-Spot........ 806.50 + 3.50 807.00 + 3.503 months.............. 829.00 + 3.00 830.00 + 3.50

KEY CURRENCY CROSS RATESLate New York Trading Tuesday, September 11, 2001

Dollar Euro Pound SFranc Guilder Peso Yen Lira D-Mark FFranc CdnDlrCanada .......... 1.5663 1.4322 2.3104 0.9545 .64992 .16367 .01314 .00074 .73229 .21834 ....France ........... 7.1736 6.5595 10.5818 4.3715 2.9766 .74959 .06020 .00339 3.3539 .... 4.5800Germany ........ 2.1389 1.9558 3.1551 1.3034 .88751 .22350 .01795 .00101 .... .29816 1.3656Italy ............... 2117.5 1936.3 3123.6 1290.4 878.64 221.27 17.770 .... 990.01 295.18 1351.9Japan.............. 119.16 108.96 175.77 72.614 49.444 12.451 .... .05627 55.711 16.611 76.077Mexico ............ 9.5700 8.7508 14.117 5.8318 3.9710 .... .08031 .00452 4.4743 1.3341 6.1099Netherlands.... 2.4100 2.2037 3.5550 1.4686 .... .25183 .02022 .00114 1.1267 .33595 1.5387Switzerland...... 1.641 1.5005 2.4206 .... .68091 .17147 .01377 .00077 .76722 .22876 1.0477U.K. ............... .67790 .6199 .... .4131 .28129 .07084 .00569 .00032 .31695 .09450 .43282Euro................ 1.09360 .... 1.6132 .66643 .45378 .11428 .00918 .00052 .51130 .15245 .69821U.S. ............... .... .9144 1.4751 .60938 .41494 .10449 .00839 .00047 .46753 .13940 .63845Source: Reuters

CORPORATEDIVIDEND NEWS

Biggest Individual Trades(Based on reports filed with regulators last week) NO. OF % OF

SHRS. IN HLDNG.$ VALUE TRANS. EXCLD. TRANSACTION

COMPANY NAME EXCH. INSIDER'S NAME TITLE (000) (000) OPTNS. DATES

BUYERSWestern Wireless Corp. ....... O J. M. Nelson s D 3,197 100 - 08/13-14/01Developers Div. Realty Corp. N J. A. Schoff D 1,292 68 14 08/21-22/01Loral Space & Comm. Ltd. .. N E. D. Shapiro D 300 25 42 08/10/01Celgene Corporation ............ O J. W. Jackson CB 269 12 2 08/09-16/01G&K Services, Inc. COM A... O T. R. Moberly P 116 4 6 08/20/01CIRCOR International, Inc. ... N D. K. Cross D 101 7 - 08/03-10/01Digital Insight ...................... O D. Walker P 96 5 33 08/29/01SMTC Corporation................. O P. Walker D 96 38 5 08/24-28/01Pennzoil-Quaker State Co. ... N H. J. Greeniaus D 67 6 14 08/06-10/01Connetics Corporation ......... O G. A. Oclassen x D 66 10 50 08/02-07/01

SELLERSOhio Casualty Corporation ... O H. L. Sloneker III x VP 13,152 1,000 - 08/07-09/01Publix Super Markets, Inc.... O C. H. Jenkins JR D 10,726 226 10 08/20/01Global Sports, Inc. ............... O M. G. Rubin CB 10,000 1,000 12 08/23/01Intl. Bancshares Corp .......... O A. R. Sanchez JR D 7,950 200 - 08/02/01Alberto-Culver Co. COM B..... N H. B. Bernick s P 4,166 100 - 08/08-09/01CTS Corporation................... N J. P. Walker D 4,014 175 27 08/01-08/01USA Education, Inc. .............. N M. M. Keler VP 2,987 37 - 08/03/01Northern Trust Corporation ... O B. G. Hastings x P 1,921 30 6 08/01/01First Health Group Corp. ....... O A. L. Dickerson VP 1,475 50 33 08/21/01Frontier Oil Corporation ....... N J. R. Gibbs CB 1,338 100 29 08/20/01

Companies With Biggest Net Changes(Based on actual transaction dates NET % CHG. INin reports received through Friday) HOLDINGS OF LATEST 12 WKS. LATEST 24 WKS.

ACTIVE INSIDERS1 NO. OF MULTIPLE NO. OF MULTIPLELATEST LATEST BUYERS- OF HIST. BUYERS OF HIST.

COMPANY NAME EXCH./SYMBOL 12 WEEKS 24 WEEKS SELLERS NORM2 SELLERS NORM2

BUYINGApache Corporation ............... N/APA 52 72 4-1 1.0 4-1 1.0Pinnacle Entertainment.......... N/PNK 18 8 3-0 3.0 3-1 1.5ProxyMed, Inc. ....................... O/PILLD 12 12 3-0 1.0 3-0 1.0Synplicity, Inc......................... O/SYNP 6 6 3-0 1.0 3-0 1.0

SELLINGSmurfit-Stone Container ........ O/SSCC — 79 — 79 0-5 1.7 0-5 0.8Keystone Automotive Ind. ...... O/KEYS — 72 — 72 0-4 1.0 0-4 0.5AmSurg Corp.......................... O/AMSG — 53 — 53 0-3 2.0 0-3 1.0CPI Corp.................................. N/CPY — 42 — 42 0-3 3.0 0-3 1.5Nordson Corporation .............. O/NDSN — 16 — 3 0-4 1.0 0-5 0.6

NOTE: Shows purchases and sales by most officers and directors, which must be reported to the SEC and other regulators bythe 10th of the month following the month of the trade. Includes both open-market and private transactions involving direct andindirect holdings. Excludes stocks valued at less than $2 a share, acquisitions through options and companies being acquired.

n-No prior holdings, r-Sale within two weeks of option exercise equal to 90% or more of shares sold. S- Holds other class ofstock. X-Reflects shares held indirectly. t-Late filing. *-Base period is less than 3 years.

CB-chairman. P-president. D-director. VP-vice president. O-officer. Z-other.1Ranked by the net change in shares held by those insiders who bought or sold during the last 12 weeks, expressed as apercentage change of only their holdings at the start of the period. Reflects companies for which filings made last week showedsome insider activity during the latest 12 weeks. Excluded: companies with total trade valued under $75,000: option-relatedsales, unexercised options, companies with fewer than three buyers or sellers, or fewer buyers or sellers than the historicalaverage for the period.2Based on the previous three years. Source: Thomson Financial/First Call, Boston, MA

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THE WALL STREET JOURNAL WEDNESDAY, SEPTEMBER 12, 2001 B5

BBUSINESSUSINESS RREALEAL EESTATESTATE && SSERVICESERVICESEE MW SW WE

Talk Business To BusinessEvery Wednesday in The Wall Street Journal.

Target your audience with Business Real Estate and Services, Business Real Estate Classified and a variety of special advertising sections devoted

to the interests of the business real estate and real estate financing communities. To advertise call 1-800-366-3975.

EE,MW,SW,WE EE-BRSV-2-A1 BRSV.XA.1B060.A1

B6 THE WALL STREET JOURNAL WEDNESDAY, SEPTEMBER 12, 2001 EE MW SW WE

BBUSINESSUSINESS RREALEAL EESTATESTATE && SSERVICESERVICESEE MW SW WE

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EE MW SW WE THE WALL STREET JOURNAL WEDNESDAY, SEPTEMBER 12, 2001 B7


BBUSINESS USINESS RREAL EAL EESTATESTATETo PlaceYour Advertisement:

d Phone 1-800-366-3975d Fax 1-214-640-7991

To ChargeYour Advertisement:

EE MW SW WE

CLASSIFIED ADVERTISING

MULTI STATE OFFERINGS

ALABAMA

ARIZONA

CALIFORNIA

ARIZONA

ARKANSAS

CALIFORNIA

CALIFORNIA

CALIFORNIA

CALIFORNIA CALIFORNIA

COLORADO

FLORIDA

MICHIGAN

COLORADO

FLORIDA

FLORIDA

MISSOURI

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FLORIDA

2 EXTENDED-STAY HOTELS ATLANTA, GA & ORLANDO, FL

ATLANTA: Jonesboro. Just off I-75,10 minutes from Hartsfield AtlantaAirport. 172 Rooms, Opened April '98.2000 NOI $884,700. Asking $6.1M. ORLANDO: Between Downtown &Disney. 190 Rooms, Opened Sept. '00.7/31/01 NOI $409,130. Asking $6.6M.

Contact Thelma WilkeKelly Realty [email protected]

Excellent LocationCall Jim Duberstein

(937) 223-7337Brokers Protected

FOR SALE130 Unit Apartment

Mobile, Alabama

Gulf of Mexico Marina - 6+ ac. with Dev.

potential, $2,375,000 Medical Center - Stable

tenants, $1,600,000 Resort - 60 beachfront rooms,

$5,000,000 Several other investment

props.

ERA Class.Com Jim Busch(800) 998-8836, Ext. 4

SYLACAUGA - DOWNTOWN

Formerly Heilig Meyers Furniture.18,000+ sq. ft. Excellent

Condition. Motivated Seller.Owner-held mortgage.

Contact J. Cherner205-425-6790

BUCKEYE38 Acres

I-10/Miller

$50K Per Acre _ Offer

BARRON THOMAS(480) 951-6207

Dan Schwartz Realty

RETAIL/OFFICE BUILDINGFOR SALE

$7.9 Million; 67,222 SQ FT91% Leased

Phoenix, ArizonaContact Tracy Altemus

DevMan Company, L.C.602/277.8558

Our land inventory is very low and we need additional land listings! For 20 years, we've only sold land, i.e., ranch,raw and development (unimproved and teardown to re-build). If you have land to sell with a minimum value of$500,000, please give us a call. We are known for our Hon-esty, Integrity and Knowledge of the business. You willlike doing business with us. Call for a free companybrochure or visit our website.

Korek Land Company, Inc.

(800) 370-LAND www.korekland.com

HELP HELP HELPLAND WANTED

SINGLE TENANTINVESTMENTSMetro Phoenix

5 & Diner Restaurant - $1,486,500 Ethan Allen Furniture - $2,670,000

DIAMOND PROPERTIES(602) 265-0011

RETAIL CENTER FOR SALEScottsdale, AZ

Indian School & Drinkwater21,316 sq. ft Total

Walt Brown: (888) 955-7500 ext.11

PREMIER RESORT17 cabins w/full kitchens, somew/frpl & Jacuzzi. Weddingchapel overlooks lake, recep-tion hall. Nature & horsebacktrails, owner's log cabin home.96 Ozark areas. $2,650,000.

UNITED COUNTRY REAL ESTATE1-800-999-1020, Ext. 33www.unitedcountry.com

NNN INVESTMENT OPPORTUNITY

2 Tenant NNN bldg., high profileRoseville/Rocklin growth market.Newly constructed, I-80 frontage.

Strong local credit tenants. Great upside potential w/belowmarket rents & comp. sales.

$4.5M, 8.59% cap

Bill Liggett/Erik NeeseHeath E. CharamugaCathy Johnson, Asst.

(916) 418-6046

Land For SaleLOFT/OFFICE/RETAIL

DEVELOPMENT OPPORTUNITY8 +/- Acres

DOWNTOWN LOS ANGELESLOCATION

2 BLOCKS FROM LITTLE TOKYOHEART OF THE ARTIST

LOFT DISTRICT

BROKER COOPERATION213-746-6630

ASK FOR KEN X15 OR CAROL X16

SHOPPING CENTERSHOPPING CENTERMonterey Peninsula

34,200(Q) s.f. Fully leased $3,800,000.00

Excl. Agent: J. R. Parrish(831) 476-2222

[email protected]

Anchored Retail CenterSEARS (OSH), Office Depot

89,424 S.F.100% National/Regional Tenants

$13,455,0008.46% Cap 8.92% C.O.C

La Verne, Ca.949-631-6620

Marina del Rey - Retail Center$3,195,000 - 9.8% cap

Near COSTCO

Culver City Office Bldg$9.1M - 40,000 sf, 10.1% cap investment w/credit tenant

West Los Angeles Office Bldg$5.6 M - 21,200 sfLeased Investment

single tenantT. Macker/J. Bertram

Santa Monica - For Sale$4,565,025 - 20,289 sf

5,152 sf available - Owner-UserInvestment Opportunity

Westwood - For Sale$1.2M,

2 story office/retail bldg5,625 sf - 12 car prkgOwner-user-investment

David Thind

For SaleWest Los Angeles/Venice

$7,550,000Creative office bldg - 27,964 sf100% occupied - NNN leasesLloyd Bakan/Luke Palmo

For SaleWestwood-Office bldg12,500 sf - Owner/User Opportunity

Jim Stanfill

>Reduced Sales Price<Santa Monica - For Sale

$1,675,000.005,250 sf bldg 8,250 sf lotNNN Lease Investment

Jim Stanfill/Chris Holland

(310) 478-7700Each Office is Independently

Owned and Operated

FORTUNE 100 SINGLE TENANT

Fortune 100 company12.5 year term bond leaseFixed annual increases

Perfect exchange propertyPrincipals Only

Bob Safai/Madison Partners 310/820-5959

MEDICAL OFFICE INVESTMENT$6.75M 10% Cap Rate46,463 sq ft $145/sq ft

Adjacent to Major Regional HospitalContact: Chris Bonbright

(323) 851-6666Ramsey-Shilling Healthcare

Real Estate Group

Retail_Office Project102,116 S.F.$13,797,711

88% Credit Tenants9% Cap

Fresno, Ca.949-631-6620

NNN NATIONAL SINGLE TENANT

20 Year Lease New Construction Great Location $3,900,000 & $3,150,000

Principals Only PleaseBKR: 800-485-3614

• $12,625,000• 96,918 s.f. high-end manufacturingproperty in Fremont• 9 years remaining on strong

international tenant's NNN leaseColliers Investment Service Group

408.282.3807

CREDIT TENANT NNN

PREMIER CBD OFFICE BLDG

• $11,500,000• 23,973 s.f. downtown office

property in San Jose• 10 year lease to credit tenants at

below market rateColliers Investment Service Group

408.282.3807

Are You InterestedIn Selling

And Leasing Back YourSo. CA. Industrial Property?

We will buy for cash and lease back the property to your

company at a rental which is based on a 7\% return

of the sale price.

We are a privately held forty year old company specializing

in industrial propertyin Southern California.

Crown Associates Realty, Inc.Please call us at

323-272-7777

Office Park InvestmentFor Sale

El Monte, CAExciting Opportunity

Flair Park Area137,904 sq. ft.

Multi-Tenant Office BuildingsOn 8.51 Acres9.37% Cap Rate

Excellent Financing in PlaceGreat Credit and

Annual Increases in Rent$17,000,000

Scott Martin (bkr)(626) 564-4800 x110

[email protected]

LA COUNTY OFFICE INVESTMENTS

Well located West LA 49,812 SF 7 storymulti-tenant office building.Citibankis ground floor tenant. 100% leased.

$11,995,000

2 story Van Nuys 9,350 SF single tenant office building directly acrossfrom San Fernando Valley Civic Cen-ter. 100% leased to City of Los Angeles.

$1,395,000

Exclusive Agents:FIRST PROPERTY REALTY CORP1930 CENTURY PARK WEST, THIRD FLOOR

LOS ANGELES, CA. 90067 PHONE (310) 208-4400 JEFF RESNICK OR MIKE GELLER

Major Freeway IntersectionHesperia, California, SWC

I-15/Main 133 Acres Discountedfor Quick Sale Traffic Counts, 25Million Annually Zoned Comm.or Industrial New $14 Million

Interchange (2003) 4000 LinealFt. of Freeway Frontage

The Bradco CompaniesJoseph W. Brady, CCIM

(760) 951-5111 [email protected]

Tracy - Northern CaliforniaI - 205, 140 acres, can be subdividedinto 15 acres three hotel sites, 15acres assisted living care, 50 acreshigh tech business park, 60 acrescommercial business. Located nextto Home Depot, Walmart, Car deal-erships, lots of restaurants & futureCostco - coming soon. For sale orjoint venture. Price $24.39 million.Call Shyam - Chetal 510-657-6603,C.P. 510-714-3668, [email protected].

Safeway, Inc.NNNLease; Expires 1-31-2012

Central California Location

8.41% Cap @ $7,300,000

DOUG WILSON (661) 325-1798

e-mail: [email protected]

SAN FRANCISCO - Newly refurbished 3 sty concrete blg. 2 blksfrom train station. Fully wired w/CAT-5, T-1 and phone system. Per-fect for cubicle office set up. Centralair & heat & carpeted. Cutomizableper floor security system. Kitchens, restrooms. Digital pictures available.

[email protected]

BURGER KING, CARL'S JR., TACO BELL

Great locations20 Yr. Leases, $775K - $3.5M

Principals OnlySkip White (916) 444-2244

52 Units PinoleQuiet side street

Great upside$4,600,000

Call 415-391-9220

OAKLAND AIRPORTOFFICE BUILDING

13,880 Sq. Ft. / 1.2 AcresPrice: $1,350,000

FOR SALE

M.R. Notaro510-522-2666

Palm Springs AreaApproved 192 Unit seniorassisted living facility on 7+ acresfully entitled-ready to build.Downtown location adjacent toregional hospital. $2,300,000

Contact Philip Yeakel760-861-8460 or 760-568-0242

Tel (415) 461-0600

CaliforniaWalgreens DrugstoresNational >A< rated tenant

Prime Locations & Demographics20 Yrs.-10% Rental Increases

Ideal for 1031 Exchange BuyersHigh Return

$3.7 to $4.6 Million

Silver Willis Logo

SUPERMARKET CHAINWITH EXISTING FINANCING

• New 20-year NNN lease• Percentage of sales• No loan points!• $1,025,000 cash required

Principals Only 415.781.8100

Agent

PRIME LOCATIONDowntown Fresno, CA

4 blocks from new downtown stadium.

30,000 sq. ft. office/warehousewith 24,000 sq. ft. parking lot.

$500,000 FIRM

800-352-2324 • Larry

LOT FOR SALE

San Rafael - \ acre zoned

for 60 Unit Assisted Care

Owner/Agent, $1.5M

800-388-2509

Built 1990, stucco, gated, somewith garages & fireplaces. Highoccupancy, strong market. 9 cap.

$6,300,000 RCK ORGANIZATION559.449.0700 agt

120 APTS/CENTRAL VALLEY

N/N/N AGENTS/FINANCELET US PAMPER YOUR CLIENTS!!Ω Fast and Efficient ProcessingΩ Loans From $400,000+Ω Up to 30 Year AmortizationΩ Low Cost Legal, Third Party'sMARABELLA COMMERCIAL FINANCE

760-741-0800

Newly Renovated Retail & OfficeHigh Profile - Prospect Street

$12,250,000

RAMSEY REAL ESTATE GROUPJeff Ramsey (619) 233-0825

DOWNTOWN LA JOLLA

Prime San DiegoRetail/Office buildings to be builtsale or JV, 5000 and 8000 feet,$1.3m and $2.1m, less for JVAbsolutely great location within

Sorrento Valley -- UTC area

Mr. M., 760-845-5248

GIANT COMMERCIAL REAL ESTATE

AUCTIONThursday, September 27 - Beginning 9:00 A.M.

LIVE OAK & JASPER, FLORIDA4 Convenience Stores

Upgraded & ready to open!- Great Profit Outlets -

ALSO: 2 Excellent Commercial Propertieswith Leases & Rental Income

Interstate Location & Other Great Locations!- Sales to be held on individual properties -

20% down, balance 30 days, 10% buyer's premium

Co-Broker: John Hill Assoc., Live Oak, FLFor brochure packet callJ. L. TODD AUCTION CO.

Rome, GA Co. Lic. #AB249John L. Todd, Lic. FL Bkr. #BK0521179

Joe Tarpley, FL Auctioneer #AU4081-800-241-7591www.jltodd.com

This gorgeous L Shaped brick building is situated on 10+/-acres. 5 of the acres are developed w/ paved asphalt & arelighted. The building was built in 1996 & offers 7170 sqft,which 5400 sqft is office space, 1770 is warehouse space.Building has a Covered Entrance & 3 car bays, perfect forCar Dealership, RV Sales, Banks, Banquet Hall or Funeral

Homes. Sells to last and highest bidder regardless of price.

Beth Rose & Nick Pinotti, Auctioneers1-877-696-7653

www.bethroseauction.com

Absolute Auction By:

ROSE PREMIER AUCTION GROUP, LLC

Thurs. Sept. 27th at 4:00pm/Open at 2:30pm

Motor Mall USA6355 Blue Rd., Lake City, MI (near Cadillac, MI)

call

COLORADO

Silent partner in Mtn.

property investment. Your

share 48% $410,000.

Details at 303-449-7741

Florida High RiseWater Front Opportunity

1.86 Acres _ 138 Unit Site onBayshore Blvd., Tampa, [email protected]

Cushman & Wakefieldof Florida, Inc.

Licensed Real Estate BrokerP: 813-223-6300 - F: 813-221-9166

Homestead, FL - 104 Units($2,800,000) Strong RentalMarkets. $26,923 per unit

with 9.8% Cap. Double Digit C/C Return $43.00 per SF.

Mia/Ft. Laud. (954) 463-2400RE Investment Brokerage Co.

HUNTERS PARADISE1300 Acres, Hunting, Timber,Investment Tract. Located just minutes form Tallahassee. $525 peracre. #318-SFCR.INC. Will sell all orhalf. Financing available.

(850) 997-6254; (850) 443-7317;(229) 854-0706

Winn Dixie Center

$433,800 N.O.I.All Cash or Financing Available

9.5% Cash/Cash After DebtAW Properties612-317-4720

OUTSTANDINGOFFICE BUILDING

Miami - 11098 Biscayne Blvd.43,200 SF! Grosses $589,000!

10.3% Cash Return to Investor!User Occupies 4,500-7,800 SF

at no cost! Call Louis J.Gallo, CCIM

305-358-1000 x [email protected]

The Allen Morris Co.FL's Comm RE Leader

South Beach - 52 Units($3,000,000) 1 block to the

ocean, apartment or hotel.Zoning. Assumable financing.


Dunedin, FL 470 Units($47,300,000) 470 Lux Apt Com-

munity, AAA Quality, NewConstruction, Superior Infill

Loc, Private 10 Acre ParkMia/Ft. Laud. 954/463-2400

RE Investment Brokerage Co.

Gainesville Land ($11,200,000) 560 Acre Dev. Parcel inAlachua County. Last

Largest Approved Tract.Mia/Ft. Laud. (954) 463-2400


Two Phase Developer Section _ RFQ/RFP

Phase 1 - Statement of Qualifications andConcept (RFQ)

Due Monday, November 5, 2001 at 2:00 p.m. CST atCity Hall

Phase 2 _ Development Proposal (RFP)

Not more than 3 firms to be selected in Phase 1and asked to submit full Development Proposals

460 acres along I-44, near Six Flags St. Louis, en route to Branson

City ownership of largeportion of DevelopmentArea.

City prepared to provideassistance with site assem-bly and financial incen-tives in support of neededpublic infrastructure

Planned mixed-use development soughtwith opportunities for:- corporate headquarterscampus, office park

- retail shopping and entertainment

- range of types of residential development

- hotel, conference, facilities

Contact for copy of Request for Qualifications & Proposals

Craig E. Sabo, City Administrator

City of Eureka

100 City Hall

P.O. Box 125

Eureka, MO 63025

Phone: (636) 938-5233 E-mail:[email protected]

Eureka, Missouri Southwest St. Louis County

PRIME DEVELOPMENT OPPORTUNITY

Attention Developers:Looking for prime

development land in Florida?One to 211 Acres Available.Southwest Florida locations -

Sun City, Fort Myers;Wildcat Run, Estero;

Gateway, Fort Myers andPelican Landing in

Bonita Springs Homebuilders Office

Retail IndustrialFor more information,contact Pam Watson

Prudential Florida WCI Realty941-659-2424

Jacksonville, FL - 200 Units($5,000,000) X'lent Unit mix ofall Twhs Units. Units Average

1,100 SF Under A/C. Condo Potential, CBS Const. 4X

Gross, 10 Cap, $22/SF.Mia/Ft. Laud. (954) 463-2400


OWNER WANTS OFFERS37 ACRES-FLAGLER COUNTY, FL115 units PUD mixed single family &

condo's, 1640ft on I.C.W.560 on A1A, ocean view, 2100ft canalsAll permits in place for single familyA1A Realty & Development Corp.

321-726-9853

OCEANFRONT HOMESITESNext spot for theRich & Famous.

Skyrocketing value.Guarded equity club.

Mega homes - $895,000.386-446-7771 407-616-3997

Historic Downtown Stuart, FLSC($2,050,000)High End RetailStrip Center. 100% Occupied.Seller Financing.

Mia/Ft. Laud. 954/463-2400RE Investment Brokerage Co.

Sunrise Shopping Center($10,250,000)

Xln't Retail Sawgrass MillsArea. Credit Tenants.


Delray Beach - IWH($2,500,000) Unique Multi-Tenant Cold Storage. StrongCurrent Income w/Upside Pot.Frontage on I-95.


The Wall Street Journaldelivers top corporate

real estate decision makers.

Wall Street Journal subscribers . . .d 48% are in top managementd 24% are in middle managementd 29% have purchase influence of real estate, plant

sites and office space

Call 1-800-366-3975

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BBUSINESS USINESS RREAL EAL EESTATESTATETo PlaceYour Advertisement:

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AUCTION

Pembroke Park, FL - 80 Units($3,280,000) Renovated withbelow market rents. Largeunits with a desirable unitmix. Attractive assumable

financing.Mia/Ft. Laud. (954) 463-2400


Lauderhill, FL 405 Units($22,500,000) 1989 Construction

75% 2 &3-bed units 15% Down, 9% Cap Rate


Tamarac, FL, SS$2,000,000

High Visibility LocationNewly Renovated, Upside Po-tential, Stabilized Occupancy


Jacksonville, FL 212 Units $5,000,000 Huge

Rental Upside, Excl't RentalLoc, 17% Cash on Cash Return, 2-sty CBS Cnstr


Titusville, FL - NNR($2,540,000)

New 20 Year Lease. National Tenant.


Titusville, FL - NNR($3,285,000)

New 15 Year Lease. NationalCredit Tenant. Near I-95.


MAUI - HANA - BEACH

HEAVENLY HANA - 7 ACRES

OR MORE - LEVEL - FEE - OCEAN-SIDE OF HWY. ALL UTILITIES.$75K PER ACRE - TERMS OK.

323-436-0441

BUY A REPO

Manitoulin Island, Province of ONTARIO, CANADAOFFERED FOR SALE - WORLD CLASS OPPORTUNITYPrivate Development on 2400 hectares/6000 acres, 17 km private shoreline,368 lots under development, 73 stunning waterfront lots 1 to 2+ hectares insize, 23 large estate lots each 45 hectares/100 acres in size, private sanddunes and sand beaches, 5 private creeks with brook trout, heavy salmonruns in fall, 18 km of roads built, hydro presently in property. UNDERCONSTRUCTION: 930 sq. m/10000 sq. ft. Savannah plantation style ownersmansion, 6 car garage, 10 stable horse barn, indoor swimming pool on 50hectares; 27 hole world class golf course resort, 211 seat log stylerestaurant/clubhouse, 60 luxury cottages, log style managers home, first 9holes of 27 ready by mid 2002, large private guesthouse on 45 hectares,private electric power company to service the new town. ALSO PLANNED:world class health spa, polo club, golf academy. INFRASTRUCTURESUPPORT: 300 hectares/750 acres top soil and gravel and sand reserves(approx. 15 million ton). Present owner willing to stay on for 5 years tomanage project.

Asking $20,000,000 US

ph. 705-377-4955 fax 705-377-4165www.manitoulinisland.com/carterbayeco

September 13, 2001 2:00 P.M.Westchase Hilton and Towers

24 PropertiesFeaturing:

Texana Plantation, 70 acres - Historical Homesite-Warrenton, TX

120 - Bed Healthcare Facility - 5815 Airline Drive - Houston, TX

28-unit Apartment Complex - Lake Conroe, Montgomery, TX

16-unit and 32-unit Apartment Complex - Willis, TX

15-unit Apartment Complex - Palacios, TX

Timothy K. Clay #10251http://www.clay-co.com

(713) 722-1250Financing Available1% Buyers Premuim

AUCTION

Investment Property Staples, Rexburg, ID

Investment Grade Credit Long-term lease w/options$2,375,000, 8.84% cap

$1,450,000 financing in place @ 7.1%

Home of renamed and expandedBYU - Idaho

Tim McCleanCOLLIERS INTERNATIONAL

(415) [email protected]

62,000sf Office Building22,000sf Parking LotNearly \ block in

Downtown Rockford, IL$1,000,000

Principals Only-Booklet Available815-965-5777

FOR SALE BY OWNER

$33,000,000Washington D.C. Suburb

Principals OnlyIRG/Allen Maresh

301-299-4000

727 UNITSLANDOVER, MD

Southeastern Massachusetts:Established, 49 child preschooland residence; fantastic incomew/tremendous upside potential.Turn-key business & real estate.$1.4 mm. Call Nick at RemaxLiberty for financials, history, virtual tour. 1-877-80 REMAX

50 Mi. West of St. Louis192 Acre fronts 2,000 ft. I-70, S. Service Road & Railroad.With Country road access. ZoneCID. 40 miles to airport. 110 Acrecrp & 60 Acre creek & oak forest.

Interstate 70 Access 1 mile.

Dutchman Realty 636-949-0777

MONTANA RESORTPlatted and approved 433lot residential/resort on1,135 acres. Project to

include golf course, ski hill,equestrian center, fishing,riding and hiking trails, resort and conventionfacilities. Well below appraisal @ $5M.

Contact Ernie MeadorASPEN REAL ESTATE

1-888-825-9595

SINGLE TENANT NNNLEASED INVESTMENT

Las Vegas based ++//-9,500 SF Office/Lab/Warehousenew 7 year lease at $125,000net annual rent offered at

$1,277,000Call: Mike @ (702) 836-3736or [email protected]

PRINCIPALS ONLY

LAND - RENO, NV35 Ac. - 41 Ac. & 133 Ac.

Zoned CommercialSale or Ground Lease

Located at Major IntersectionHighway frontage -

Great Traffic Counts

Contact: Bill Fleiner775-826-7000

FOR SALECasino - Las Vegas, NV

Locals market, opened in 2000.13,000 + SF w/expansion potential,non-restricted gaming, restaurant, bar.Priced well below replacement cost.

Jack Carr at 949.437.6601Harry Pfleuger at 949.437.6602

LAS VEGAS, NVSINGLE TENANT MEDICAL

OFFICE BUILDING18,000 Sq. Ft.$5,747,490

Call for details: 702-869-9000or 916-780-5505, ext. 12

**FOR LEASE/FOR SALE**New 96,000-sq. ft. of class Aoffice building being builtfor Spring 2002 occupancy inNashua NH right off exit 8next to Crowne Plaza Hotel.Jon Tamposi/Phil Kennedy

Korsak Realty(603) 882-9700 Ext. 19

LAND - KEENE, NH10.4 acres, cleared land; zoned commercial, with frontage onmajor street on north side of Keene.1 mile from hospital, next to smallcommercial strip, bank, conve-nience store. Public sewer/ water;good soil conditions for develop-ment. Asking $1,250,000;

Call 603-352-2253; Email: [email protected].

WHITE MTN. INNRest/Lounge, Banquet Room, Man-agers Quarters, Pool, Separate 2160Sq. Ft. Owners Residence. Minutesto Waterville Valley/Owls Nest GolfResort. Located off I-93, Exit 28.

$1,150,000.00Noseworthy RE LLC

(603) 968-9451

UNION CITY, NJUse or investment, state of the artbldg. inc. 8 apts. on mo. to mo. leases.Currently used as sewing factory. 10secured parking spaces. Total 18,000SF. $799,000. Call for additional info.

Burgdorff ERARealtors Hillsdale/Woodcliff Lake

201-664-7700

NNN DENNY'S$600,000 price for $60,000 NNNrent with full percentage rentclause. New lease on 20 year +location with very strong 65+units franchisee.

Great highway locationCall owner 805-565-3283

Dutchess Co, NY - Escape to aCleaner Life. 3 bldgs to include 2restaurants + pub. All turnkeyw/liquor, 2 apts & office space oncommercial \ ac. Active money-making businesses/ steady tenantincome. Fantastic location forMexican/Thai/Asian cuisine. Multi-ple bus. opp's on single site. Pricedfor quick sale. $420K. (Includes

businesses.)Owner 845-877-6483

2 BUILDINGS FOR SALEFlex Space/Office Space114,000/135,000 Sq. Ft.

Durham, NC

Class ACall Jon Jayson

716-636-9090Brokers Protected

CATSKILLSFully equipped Resort +

Golf. 55 Units + 116 Ac +Stream, Pool, Tennis,Pond. $1,600,000

Lafferty 518-966-4425

New WalgreensFor Sale

30 minutes from Pinehurst, N.C.Principals Only.

847-501-4868

AUTOMOTIVE SERVICE CENTER

Excellent auto repair shop. Great rep-utation, good location near downtownRaleigh, N.C. 10,000 SF bldg. & 1 acrelot included. Sales of $1.4 million/year.

Graham Realty @ 919-832-6800email: [email protected]

GREAT LAKES MARINAS FOR SALE280 Slips $2,000,000640 Slips $5,600,000, NOI $600,000650 Slips $6,800,000, NOI $805,000595 Slips $7,500,000, NOI $775,000Sold Individually or as a Group.

Owner/Broker Call: 440-336-4333 Email: [email protected]

PARTNERSHIP DISSOLUTION

Lock Haven, Pennsylvania

Users-Investors: 520,000

sq.ft. Industrial/Distribu-

tion Complex; 20+ acres;

10 docks; airport; rail;

6 miles to I-80; competitive

workforce, huge tax cuts to

employers. $500,000. rent

guarantee for 280,000 sq.ft.

Must sell! 888-575-2687

Historic Inn & RestaurantIn Bucks County withfrontage on scenic DelawareRiver. 250 capacity, liquor license, bar with river view,additional 2000 SF nightclub.3 apartments, 9 sleepingrooms. $1,800,000. Mortgageavailable to qualified parties.

Call Jerry Holliday, N.T. Callaway Real Estate

609-397-1974

CENTRAL PA150 UNITS

95% Occupancy Assumable Financing Below 7%

Please Call Ext. 285KISLAK, Exclusive Broker

(732) 750-3000 (215) 572-1946

Morgantown, PAIDEAL FOR DISTRIBUTION

S.E. PA largest tract • Now dividing 2000 ac.• Multi-use zoning• All utilities• Next to Exit 22 PA. Turnpike

Toll Free 1-866-960-4000

SPARTANBURG, SCWarehouses For Lease

100,000 sq. ft. each. Pre-stressedconcrete, fireproof, ultra security& alarm. Concrete pads, ramps,docks up to 6 trucks at a time. Excellent paving/roads. Located | mile off I-85, 6 miles from I-26,8 miles from BMW auto manufac-turing plant, 11 mi. from Green-ville-Spartanburg Int'l Airport.

864-439-8752 or fx: 864-949-2660

1031 ExchangeAvailable

Newport Mansion

Call 941-320-2887 or Fax 401-841-8500

Prime Metro Center LocationCall Jim Duberstein

937-223-7337Brokers Protected

For Sale70,000 Sq. Ft. Flex Bldg

Nashville, TN

HOT HOT HOT!!!!All Assumable Loans!!!

SAN ANTONIO70,550 sq./ft. office building

13% CAP, $2.5 M loan,$65,000/mo, 35% cash/cash

Price: $3.0M!!

***********194 Units, 100% occupied,

cash COW! $4.6M!!

***********MEMPHIS

54 Units, 13% CAP,$1.2M loan, $26,000/mo

Price: $1.5M!!

HUGE LEVERAGE

Contact: Darren@CCC ph 408-847-2000 or fax 408-842-1801email:[email protected]

San Antonio River Walk SiteAvailable for development. Acre on themain channel of the river. 315 feet ofRiver Walk frontage and 245 feet ofstreet frontage. Adjacent to SBCCommunications headquarters,""Houston Street'' redevelopmentproject, and the new Valencia Hotel.Near courthouse and financial district.For further info, call 210-222-8802 oremail [email protected].

Premier RV Resort - $7,950,000Equal to 440 + sites. 45 +/- acres. Indoor-outdoor pools/spas, rentalcabins, huge activity pavilions, 1000feet of riverfront with huge cypresstrees, 1st class amenities, est. income 1.2 mil with 450k expenses.800-749-2210 x100/800-775-4172 faxwww.recreationalinvestments.com

1300 acres of scenic prime

Development Property south of Amarillo, TX

Richard W. James

Round Mountain

Land Realtors

806-358-9396

65 UnitsNational franchise, N ORCoast. 4 yr old, Income

$1,124,000 w/full manage-ment, absentee owner.

Terms to qualified buyer. Don Breese 503-972-1906

85 Units - YakimaI-82 airport location, recent

improvements, great potential. $3,250,000

Bob Burkette 503-972-1900Jeff Ellis 503-972-1961

25 UnitsEastern Washington, recent

upgrades, $795,000Bob Burkette 503-972-1900David Porter 503-972-1930

Call for additional properties.

Granite Equities, LLC(503) 972-1900

WISCONSIN DELLS AREAPrime Real Estate on majorcorridor to Wisconsin DellsLake Delton at Highway 12 andMeadow View Drive. Acrossfrom and immediately adjacentto major hotels and indoorwater amenities. Presently operated as Citgo >C< store andadjacent storage facility. ZonedCommercially; 300` x 300`.

$1,850,000Call daytime only (608)274-6800

Saturday, September 29, 200120 Parcels

Located in George, WashingtonNear ""The Gorge Amphitheatre''Newer Gas Station / Convenience

Store, Martha's Inn Cafe andLounge, Two Commercial ParcelsFronting I-90, Older RV/Mobile

Home Park, 70 Acre Farm with \Circle and Other Commercial, Light

Industrial, & Residential ParcelsProperties are available for,and subject to prior sale.

Call for brochure with furtherinformation: 1-800-232-0373

Sale in Cooperation withColliers International

REAL ESTATE AUCTION

AUCTIONSINCORPORATED

UNBELIEVABLE OPPORTUNITYMarina on Lake Greensood withstore, restaurant, rental house, cot-tage, 4 two bedroom efficiency apt.15 capmer spaces, 20 rental boatslips, 3 rental pontoon boats, fishingpier and boat ramp for $925,000

Brothers & Harrison RealtyKay Dangerfield: 864-227-5130

Selling by order of WachoviaBank, N.A. as Trustee underthe will of Judson B. Smith

Thurs., Oct. 4 7:00 P.M.

COLUMBIA, SC

140 Acres PrimeDevelopment

Propertyin the center of growth in N.E.Richland County.

15 Acre Parcel & Branch Bank

At Columbia Mall

Call for brochures & information

800.479.1763

TRUSTEE'SAUCTION

www.johndixon.comSCAL#2816F

Seffner - SS ($3,675,000)Grocery Anchored

Investment Grade Anchorw/25 Yr. Lease




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Land, Apartments, Retail,Offices, Resorts, Hotels

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This is the best location for your advertising. Right here. In the pages of The Journal.

To advertise, call 1-800-366-3975.

SAN FRANCISCO BAY AREALong-term market rate financ-ing for commercial buildingsw i t h c r e d i t o r n o n - c r e d i ttenants. New unique programdeveloped for hi-tech economy.We specialize in complex loantransactions for Owners & prop-erties with special needs.

FEHER, FEHER & CO.415-771-6611

GREAT INVESTMENT

OPPORTUNITIES IN THE

OHIO HOTEL MARKETSeveral great properties forsale in the Columbus area,CAP rates 12% and higher,several properties exceeding$1M in revenue, return on equity over 20%. For informa-tion on these properties andmore contact Dave Harjung,1-847-228-5401 x347.

Visit website:www.hotelsforsaleonline.com

1031 INVESTORSWalgreens, CO - $4.8M

8.75% Cap/S&P Rated A+Bible Store, MO $1.4M

9.25% Cap/Regional Mall Loc. Hobby Lobby, IA - $2.5M

12.20% COC/Exc. Fin. Avail.Over 300 add'l props avail.

Upland Real Estate Group, Inc.www.nnnsales.com

(888)655-1031

Over 750 avail. NNN's! Largest inventory in USA! All sizes / 8% to 11% net Pure NNN specialists since'93 Principals / Brokers welcome

MAKE US PROVE IT!fax 333-9006 1400group.com

!!! 1 NNN CALL !!!

1400 GROUP 303-333-9000

NET LEASED PROPERTIES NATIONWIDE

300+ LOCATIONS NATIONWIDE

Walgreens, OSCO, CVS Federal Express, StarbucksA&P, Banks, Office Supply

630-954-7395

Rev PAR $50.703 Year Average

150+ Rooms 5 Story.For info see me @ Hyatt RegencyAtlanta on Sept 13 or 14 @ 6:30a.m. Lobby Coffee Shop. I'll bewearing a green jacket.

[email protected]

Holiday Inn Hotel

SINGLE TENANT - NNN

CVS/Taco Bell/Staples/IHOP

Advance Auto/Jack in the Box

Circuit City/7-11/Ground Leases

Principals Only - Up to $15 Mil

(800) 749-7255 Broker

NNNNorth Dallas Growth Area

15 year lease w/bumpsNear Completion

Retail - Nasdaq Traded$1,976,200 - Principals Only

Owner Fax 817/354-7581

NEW POST OFFICESWith 20-Year Leases, Also

FEDERAL & STATELEASED PROPERTIESMcRealty Int'l, Inc. 561-231-5116

SINGLE TENANTBRAND-NEW DISTRIBUTION BLDG.

20 Year Pure Net Lease Concrete Tilt Wall Construction

35 Foot Clear Ceiling Height.7-ELEVEN STORES, FLORIDA

Net Leases w/ 10% Rent BumpsFAX (970) 920-2458

FOR SALEEckerd Drug (10 Stores)

Houston Area9% CAP; 20 Year Leases

Shelby Estus Realty Group713-974-1777 ext. 103 or 106

www.shelbyestus.com

Sick and Tired of Managing yourReal Estate?

Let us help you move into ""net-leased'' property. Trade yourheadaches for a monthly trip to themailbox to get your check. Individ-ual investors are our specialty. Call Mike Millsap, Broker Assoc.

719-687-0449

Apartment Property For Sale100 Units

North ArlingtonDallas/Fort Worth Suburb

Large UnitsGreat Upside$3,495,000

Call Pete Hartnett at Grubb & Ellis972-450-3213

NNN Leased PropertiesFor Sale

New Pizza Hut Restaurants8.50% Cap

20 Year Leases

LA FitnessSan Diego, CA

$8,940,000 10.0% Cap20 Year Lease

OwnerCall: 760-317-2929

ß 5 CVS Stores (5or1); Mid Atlantic;NN; 20 Years; Increases

ß Class A (NYSE) Office Bldg.; MidWest; 9.5% Cap; 12 yrs; NNN;Increases

ß 3 Don Olsen Tire Stores (3or1),S.E.; 22 yrs.; 9% Cap; Increases

ß S.T./H.Q. Office Bldgs. &S.T./Ind.

Dean Chapman Earl A. Hollis, Inc. Realtors

(561)655-5710

GREAT 1031 BUYS

HOTEL FOR SALE, NORTH

OF DALLASModern 60 room hotel, built in1996, Major chain, on Inter-state. Strong Market, hotelrevenue exceeding $990,000.,many amenities. $3M. ContactDave Harjung, 847-228-5401x347. For more listings inyour area, visit website:www.hotelsforsaleonline.com

MOTEL FOR SALENo. California Real Estate

and business for sale$1.5 Million

View on the webwww.cantarutti.com/resort

Call to discuss(707) 573-8391

NET LEASED PROPERTIESCVS, Walgreens, Lowes,

Starbucks, Pier One, Goodyear,McDonalds, Arby's, 7-11, Etc.

For Information:John Lawrence, President

Ph 561-750-1030 Fax 561-391-2676Principals Only

Sarasota, Florida257,000 sf Class ""A'' Office/Retail/

Entertainment. Huge upside potentialincluding 2.38 acre outparcel at twosignalized intersections worth at least$3.5 million. 9.4 cap. $30,750,000.

Marcus & Millichap813-287-9777


NET LEASED REAL ESTATENation-wide net leased single tenantoffice bldgs & stores with lesseeslike 7-Eleven, Walgreens, FedEx,Denny's, Goodyear, Office Max, etc.

STAN GLASSMANPardoe Real Estate 202-265-8009

email at [email protected]

FOR IMMEDIATE SALESelf Storage & Retail Plaza

Rahway, New Jersey on Route 1,9

• Gross Income: $1.4 million

• 126,600 sq. ft, opened 1999

• 497 units, 90% occupied,three retail tenants

• Below market rents

312.726.5800In cooperation with RAF Partners

• March 2002 Delivery, 15 year base term

• $1,489,486 NOI, Absolute Triple Net

• Ask 8.0 cap rate, Principals OnlyMichael Salove Company

Contact Jen 610-664-8100 [email protected]

Super Wal-Mart

Modern SawmillLocated in western/central SC. Ex.condition. Good interstate access.Wet deck. 36 acres. Attractivefinancing package.Call Tony Watry of Shaw, McLeod,Belser & Hurlbutt at 843-539-2506.

[email protected]

WALGREEN'S $5,465,000.00/8.65% CAP

Salt Lake City, UtahKenny Christensen

[email protected]

176 APARTMENTSGreenville, NC. Finished 1993. Allbrick and vinyl. 95% occupied, goodtenants. Well maintained. Familyowned & operated. Also adjoining 10 ac. of land w/ plans, zoning, non-recourse 30-40 year financing in placefor 133 new units. Linda: 252-347-2531 or 252-355-6093

Charlotte, NC - $2,876,400New 20 Year NN Lease

Great Southeast Location National TenantLori Schneider


MOBILE HOME PARKS FOR SALE BY OWNER.

3,000+ SITES AVAILABLE.FLORIDA, INDIANA, &

NEBRASKA(310) 829-2921

Magnificent Country LodgeSixty miles North of Atlanta

Adjoins National ForestEstablished clientele or could be con-verted to corporate or private retreat

$4,750,000/Brochure AvailableThe Wheeler GroupAnita G. Wheeler

706-864-6736 or 404-219-1938

625 Market StreetDowntown San Francisco

***$23,000,000***71,239 sq.ft.

Class A Office Building9.6 Cap

98% leasedBrokers welcome

Grubb & Ellis 415-477-9261

Apartment Property For Sale50 of 86 Units

Quality Northeast Dallas Condos

Upside Opportunity

$2,150,000

Call Pete Hartnett at Grubb & Ellis

972-450-3213

WANTED:We have a posse of buyers search-ing for anchored, strip, neighbor-hood or Power cntrs. Tri-state area.If you have 1 or more call w/info to:

Julius BorrusBORRUS ASSOC.

732-679-4100

NET LEASED PROPERTIESBkr offers major nationwide inven-tory of single tenant properties. In-comparable knowledge & IRS#1031expertise. Debt quoted. Est. 1970.BARDES INTERNATIONAL

Naples, Florida941/774-5885 Fx 941/774-9699

Class ""A'' Apartments800-937-6600

Brokers Welcome

1031 ExchangeProperties

Congregate Housing Mid-Coast Maine

Maine developer/builderseeks financial partner or outright sale for fullypermitted 60-unit seniorapartment complex withamenities and services inexclusive Maine resortcommunity. Pristine site, allengineering and preliminarybuilding plans complete.Strong market, great localsupport. Exceptional opportu-nity to enter rapidly growingMaine retirement housingmarket. Call (207) 772-0270.

MOBILE HOME PARKS106 spaces with 31 apts,

Modesto, 13.4% cap and 29%cash flow, leverage, $2.9M 161spaces, Hemet, 7% financing,

$2.5M 51 spaces + 416 RV +150 vacant comm'l freeway

frontage acres, Quartzsite, AZ,leverage + 4% seller financing,$4.3M, bkr/coop 800-987-3363,

www.parkbrokerage.com

HOTEL FOR SALE, NORTH

OF DALLASModern 60 room hotel, built in1996, Major chain, on Inter-state. Strong Market, hotelrevenue exceeding $990,000.,many amenities. $3M. ContactDave Harjung, 847-228-5401x347. For more listings inyour area, visit website:www.hotelsforsaleonline.com

For Sale

16 Acres

Ontario Mills Adj.

Prime Fwy Frontage

Call 310-264-1055

FOR SALE - $7.34 MILLION FIRM

93% leased Class A multi-tenantFrwy adj office bldg in SGV, CA

10% cap, 14% lev. yield.Principals Only

(310) 208-4400 x234

John Yeh, First Property

LOS ANGELES:3 structurally reinforced brickapartment buildings. 36-47-76.Mid-Wilshire. New hallwaypaint and carpet. Shows 15%spendable with 53% for vac &exp. Owner broker. 949-752-2881

ACTIVE RAIL 29 FT CLEAR147 ACRES FOR SALE

M. DONAHUE ASSOC., INC.508-588-1717

www.donahueassociates.com

BOSTON AREA520,000 SF DISTRIBUTION

REVERSE EXCHANGE SERVICES

The National Leader in Structuring Tax Deferredfl1031 Reverse Exchanges

www.reverse1031.comor Toll Free

866-276-1031

ß Single-Tenant Retail

ß $3-10 Million Price

ß 14+ Lease Yrs Remaining

ß Rent Bumps Every 5 Yrs

Jim LaRocca, Excl. Broker

415/388-5557

[email protected]

NNN STARKER BUYER

COMMERCIALPROPERTIES WANTED

We are looking to buy all types ofindustrial, retail or office propertiesin Metro New York City, Westchester,Rockland & Fairfield Counties. Pleasecontact Steve Corrigan at:

Westrock Realty, 914-751-4000,[email protected] fax information to 914-751-4001

WANTEDLarge Industrial facilities.Environmental challenges, & Quarries in metro areas.

Brokers welcome. Fast close.

Commercial Development Co.www.cdcco.com

314-835-1515 ext. 7 or 8

Short-Term Leases5-9 years left

NNN - No debt.Office/Office R&D/Distribution

$20-$40 MillionAMG: 310-574-5593

WANTED

PRIVATE PARTY Looking to purchase 10-12M in

free standing bldgs (not exceeding18K sqft. each). NNN, A-rated,

national tenants, in greatlocations anywhere.

650/363-9386

Attn: Rural IndustrialProperty Owners

Have $30M available for purchase of industrial and sale/leasebackbuildings. Industrial & single tenantoffice only. Non-metro preferred.

www.agracel.com1-800-600-8085

Apartment Property For Sale147 Units

Balch Springs, TXDallas Suburb

Mid 1980s Construction$4,995,000

Excellent Cash FlowCall Pete Hartnett at Grubb & Ellis

972-450-3213



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TO PLACE YOUR ADVERTISEMENT:d Phone 1-800-366-3975 d Fax (214) 640-7900

TO CHARGE YOUR ADVERTISEMENT:

TO GET A BONUS DISTRIBUTION:Position Available advertisements appearing in The Wall Street Journal may bereprinted in The Journal's Interactive Edition at careerjournal.com.

AS WITH ANY INVESTMENT OPPORTUNITY, PROSPECTIVE INVESTORS SHOULD

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Want to explore your career options without having to cover your tracks? Visit the confidential resume profile

database at CareerJournal.com, from The Wall Street Journal. You'll create a brief profile that can be searched by

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2001 Dow Jones & Company, Inc. All rights reserved.

SENIOR EXECUTIVES

Professional and confidentialmarketing programs for seniorexecutives-national and interna-tional

New York(212) 351-5047

Washington DC(703) 322-9480

Executive Advisorswww.executive-advisors.com

Over $9 Million in IT EquipmentOver (400) Dell Servers & Cisco Routers/Switches d 100's of Dell PIII Workstations, PC's & Laptops d Compaq Proliant d HP NetVista d CompaqPC's & Laptops d Teknion Workstations d Plush Executive Furniture & OfficeSuites d Fully Equipped & Configured Data Center d F5-Big IP d Nokia IP440 d Pix Firewalls

Inspection: Tues, Sept. 18 & Wed, Sept. 19 10am-5pmVisit our web site for complete listing, terms & conditions at

www.gbffe.comTerms: 10% Buyers Premium. Payment in cash or bank check.

HOMERUNS.COMMajor IT Auction Sale

Thursday, September 20 at 10am200 Wheeler Road, Burlington, MA

888-818-4836www.gbffe.com

MA Lic. 284 & 240Furniture, Fixtures & Equipment Division

IN THE UNITED STATES BANKRUPTCY COURTFOR THE DISTRICT OF DELAWARE

In re:

WINSTAR COMMUNICATIONS, INC., et al.,

Debtors.

SUMMARY NOTICE OF SALE

PLEASE TAKE NOTICE THAT on September 17, 2001, WinstarNew Media Company, Inc. (>WNM<), Winstar Credit Corp. (>WCC<), each a debtor and debtor in possession in the above captioned cases, and WinstarBroadcasting Corporation (collectively, the >Sellers<) have agreed to sell certain securities (the >Securities<) in Equity Broadcasting Corporation(>EBC<) to EBC for $20 million and grant certain releases pursuant to a Purchase Agreement and a Release Agreement between the Sellers and EBC (the sale of the Securities to EBC being referred to herein as the>Sale<). The Securities consist of approximately 444,309 shares of EBC'sClass A common stock and four (4) promissory notes issued by EBC in theaggregate amount of $28.25 million of varying maturities in 2001, the latestof which is December 15, 2001.

The Sale is subject to higher and better offers pursuant to an auction that will be held at the offices of Shearman & Sterling, 599 Lexington Avenue, New York, New York 10022 on Wednesday, September 18, 2001 at 2:00 p.m. (the >Auction<). To participate in the Auction, you must submit a >Qualified Bid< on or before Tuesday, September 17, 2001, which, among other things, must be accompanied by a a cashier's check or certified check in the amount of $2,000,000 and a copy of Purchase Agreement marked to show those amendments and modifications, including the price, that you propose.

To receive more information about the Auction and to receive acopy of the Purchase Agreement, please contact:

Shearman & Sterling599 Lexington Avenue

New York, New York 10022Attn: Bryon MulliganTel: (212) 848-4460

Chapter 11

Case No. 01-1430(JJF)

Jointly Administered

::::

CAREER MANAGEMENT

WITH A COMPETITIVE EDGE

$75,000 - $500,000

WWW.JOBMASTERS.COM

Senior Vice PresidentCeloxica has an opportunityin Campbell, California for aSenior Vice President. HighTech Marketing. Resumes to:HR Department, 900 EastHamilton Avenue, Campbell,CA 95008. Must have bache-lors degree plus eight yearsof related experience. If no degree, will accept two addi-tional years of experience.

Of MFG co's. for sale byowner plus many others frommajor MFG To small Retail

Shops. No cost to review businesses for sale.

To Buy or Sell contact us at1-800-999-SALE or atwww.gwbs.com.Great WesternBusiness Services, Inc.

$$ MILLION'S $$

business opportunities

Sell to the right audience.

Call 1-800-366-3975

Thousands of timely articles, salary tables and tools,plus 30,000+ jobs at the nations hottest companies.

s2001 Dow Jones & Company, Inc. All Rights Reserved.

OWN AN

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MASSEYMichigan's Authorized Dealer

Taking Deposits for "LAST OF LINE" Seraphs

2001 Rolls Royce CornicheWhite/White interior/Blue

piping/Blue Top, Breathtaking!!

2001 Bentley Arnage Red Label's

Lemans Edition Black/CotswoldSilica/Oatmeal interior

Sunset/Magnolia interiorSilver Pearl/Black interior

Recent Trades2000 Rolls Royce Seraph Artica with Magnolia piped Autumn, polished wheels,

gorgeous - $175,000

2000 Bentley ArnageMulsanne Green with Barley

5K Mi - $169,000

1997 Bentley Continental TBlack Emerald, 8K Mi, Rare,Fast, the right one $195,000

Please Call Brenda Masseyor Charley Massey

Don Massey CadillacPlymouth, MI 734-453-7500

SAVE ON TAXESDonate your boat, property orequipment to an IRS approvedNonprofit. For information regarding any donation:

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You receive Cash plus Tax Benefits re-sulting in a substantial net return, whilehelping to support children's education& boating programs. Also consider Classic Car, Plane, Property, RV. Call:

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Advertise your craft to oceans of qualified buyers.Call 1-888-834-8726or 1-214-640-7936

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Enterprise software from Microsoft simplifies working with partners. Multiple platforms, security issues,

intranets, and extranets: the complexity of connecting with business partners is greater than ever.

Microsoft® software quickly integrates your existing information systems with those of your partners. Tighter

connections mean quicker response time, stronger business relationships, and lower costs—all of which,

in turn, give you a competitive advantage. Visit microsoft.com/business Software for the Agile Business.

© 2001 Microsoft Corporation. All rights reserved. Microsoft is a registered trademark of Microsoft Corporation in the United States and/or other countries. The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

FEDERATED DEPARTMENT STORES, INC. wanted to give buyers for its Macy’s, Bloomingdale’s, and other divisions a competitive advantage by providing real-time

information on the status of their orders. Enterprise software from Microsoft helped establish a closer link with suppliers, increasing savings and improving service.

This company needs distributors toshare with manufacturers who share withsuppliers who share with distributors.

The software is not at all puzzled.

B12 THE WALL STREET JOURNAL WEDNESDAY, SEPTEMBER 12, 2001

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