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W
yt $tern*tatile patriot
— Founded in 1830 —
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PUBLISHER , Robert F. Sennott, Jr.
EDITOR David Still II BUSINESS MANAGER ..Barbara]. Hennigan
ASSOCIATE EDITOR Edward F. Maroney
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First Place,General Excellence -New England Press Association,2001
*"' Z ,- First Place, General Excellence -Advertising, 2002 & 2003
More business
as usual
BY PAUL DUFFY
Well, sure, he could have
been a little more forthcom-
ing. But that assumes he knew
what to be forthcoming about.
He says he didn 't know any-
thing was wrong. Indeed , as
far as he could tell, everything
at Enron was hunky-dory,
what's-to-worry-about . copa-
setic. Then, without warning,
the company fell over dead.
Not my fault , says Ken Lay
OK.sojust before the end he
sold millions of dollars wort h
of Enron stock even as he
urged everybody else to buy
it. And yes. his wife sold some,
too. 500,000 shares, as a mat-
ter of fact , literally 15minutes
before it was announced that
the company was headed for
the sanitary waste station.
But let's not jump to conclu-
sions. Let him who is without
sin, etc. etc.
It wasn't for nothing that
Enron was named America 's
most innovative company by
Forbes magazine, and not just
once but for six consecutive
years, from 1991 to 2001. If
Forbes had only known how
innovative! The thing is. at
Enron everything was an inno-
vation and nothing was what
it seemed. The company 's
accounting was like a David
Mamet play with shell game
artists trumping one con
game with a better one. Enron
had become a kind of Ponzi
scheme empire in which a
cabal of lawyers, accountants,
bankers and company crooks
conspired to hoodwink inves-
tors while bribingtax officials
to go blind . The company.
once the seventh biggest in
the country, paid no income
taxes between 1996 and 1999.
according to the investiga-
tion by the Senate Finance
Committee , although in the
same period it was report-
ing earnings in the scores of
billions.
During this same period
the total annual pay of the
company'stop 200 executives
rose from $193 million (an
average of $1 million each) to
$1.4 billion (an average of $7
million each), most of it paid in
stock options. Ken Lay's own
pay went from $15 million to
$168 million. Some might call
this evidence of greed , but
with the cost of living going
up Ken Lay liked his people
to be ahead of the curve, and
why should he deny himself
a small reward along the way
for his matchless leadership?
They say the Enron offices
were awfully nice, too.a good
place to work, to dream, per-
chance to loot. No one on the
compensation committee of
the board of directors ever
said a word.
Needless to say, for this kind
of elaborate swindleto succeed
the conspirators needed a lot
of help, especially from the
financial analysts and stock
touts that breed and multiply
in the damp air of lower Man-
hattan. Wall Street, being Wall
Street , bought into the whole
deal without asking too many
questions and was stillflogging
the stock even as the pallbear-
ers assembled on the steps of
Enron'sHoustonheadquarters.
In the end, many thousands of
investors allover the world lost
money in amounts to tax the
calculating limits of their lap-
tops. And then there were the
thousands of ordinary Enron
employees who lost not only
their retirement savings but
their job s.
The evidence of malfea-
sance against Lay and his
sidekick , Jeffrey Skilling, was
overwhelming, the scope of
their plunder breath-taking,
the depth of their cynicism
limitless. And the basis of
their defense beyond incred-
ible - more likelaughable. The
legal strategy seemed to be
based on avariation of the old
concentration-cam p-guard
chestnut: I vas only follovink
orderz.
The trouble here was that
Lay wasn't following orders ,
he was giving them. But he
says he wasn't doing anything
wrong, or anything much at
all. He didn't know what was
going on, remember? But if
he didn't know what was go-
ing on and he didn't give any
orders , what was he doing for
his $168 million?
Pathetic as it was, this may
have been the only defense
possible: go up there and lie
and keep on lyingand maybe
the jury will be dumb enough
to buy it. It wasn't, and it looks
like Lay and Lie are going to
jail for a long, long time, in
Lay's case quite possibly for
the rest of his life.
Isn't it illegal for lawyers
to counsel their clients to lie
under oath? And how much
did the lawyerscharge for this
outrage? How many millions,
that is? Who's paying their
fees and with whose money?
THE T/ V!EW FROM
A S&ANCE,
^^ * BY PAUL DUFFY A
EARLYFILES
FROM BARNSTABLE PATRIOT. JUNE 5. 1986
HAT DAY - This class of youngsters at Hyannis West Elementary School celebrated Hat Day as one of many special
days featured in the class this month. Top row, left to right are Theresa Guay, Paul Fulcher, Elyssa Underwood , Sean
McAuliffe , Christopher Scarpato , Brad Lovell and Michael Butler; front row, left to right are Tammy LaFountaine, John
Oliver, Jonathan Churchill, Shawn Kimball, Gary Brown and Lee Ann Lehtola.
1836
The peculiar severity of the past winter was such
as seriously to injure the great body of Salt Marshes
in this and the adjoining towns; and the present
appearance of these marshes is such as to lengthen
amazingly the visages of our farmers, to whom the
crop of salt hay is of incalculable importance. There
is scarcely a green spear to be seen upon the high
marsh, and the farmers interested fear that the
roots of the grass are were so destroyed by the great
quantity of fresh water ice, which lay long upon the
marsh last winter, that they shall suffer severely in
consequence.
1866
(President Johnson) isnowjustly regarded asthe
man who will save the country from radical ruin. He
stands to-day just where Mr. Lincoln would have
stood had he lived; his policy is the same precisely
as that worked out by his distinguished predeces-
sor.And yet for this grand fidelity to principle, this
devotion to the real good of the country -he is the
worst abused man in the country.
1896
Memorial day services for the town of Barnstable
were held at Centreville , as usual, and the cool day
with the dust well laid by the rain of the previous
night, combined to draw together a large crowd.
The exercises commenced by the formation of Theo.
Parkman Post No. 204 G.A.R. at Howard Hall, Post
Headquarters , from whence escorted by Cotuit
Brass Band and Peter Pineo Camp, sons of Veterans
of Hyannis and followed by Theo. Parkman W.R.C.
No. 114 of Centreville , by school children and many
friends of the cause, the line of march was begun for
Oak Grove cemetery via Monument Square.
1916
Hyannis was the center of the Cape 's activities
today, the Barnstable County Conference on Com-
munity Planning being in progress... The opening
session was held in the vestry of the Congrega-
tional Church , Professor E.L. Morgan presiding.
The purpose of this session was to bring together
representatives of different groups of workers and
organizations and the exchange of experiences and
statements of work and progress were verystimulat-
ing and interesting. Among those who spoke were
Mr. H.L. Chipman for the Federation of Churches ,
Mr. John Duffy for the Boy Scouts, Hon. T.C.Thacher
and Mr. L.B. Boston for the Farm Bureau , Miss
Laura Comstock for the Home Economic work of the
Farm Bureau , Mr. John A. Lowe, Agent of the Free
Public Library Commission and Miss Soule for the
LibrarySection, Supt. G.H. Galger for the Cape Cod
Superintendents , Mr. Simpson for the Barnstable
County Y.M.C.A., Miss Turner and Mrs. Carstens
for the Massachusetts Society for the Prevention of
Cruelty to Children... The meeting in the Idlehour...
(featured) Dr. Walter H. Brown of the State Board
of Health under the topic "Wasting Human Life."
(He) discussed preventable diseases illustrating
his forceful words by stereopticon views.
1926
In the tide of motor travel which is setting in
stronger and stronger daily as the season advances,
toward Cape Cod resorts,huge transportation trucks
with building supplies and contractors ' outfits are
conspicuous... It is also noticeable that the traffic of-
ficers in the centre of Plymouth are getting more and
more work to do asthe springtime goes and there are
times when it is difficult to find a safe passage across
on some of the main arteries of travel on account of
the southward bound campers. Often passengers
in the rear sections of cars are wedged in with suit
cases, bags, bundles and even baby buggies, while
the running boards and mudguards are freighted
with large packages wrapped in rubber, tarpaulin ,
and, occasionally, old bedquilts , and they are all
headed for Cape Cod - Old Colony Memorial.
1936
Special Justice Thomas Otis has under advise-
ment the civil suit of Mrs. Edna Harrisof Centerville
against Peters' Chocolate Shop for personal injuries
sustained when bitten by a cat allegedly owned by
the Peters shop... Mrs. Harris said she was walking
down Main street leading her German shepherd
pup Skippy on a leash when "all of a sudden out
of nowhere " the cat landed on the pup's back. She
testified when she sought to disentangle the dog
and cat,the cat bit and scratched her, tearing stock-
ings, dress and coat... Judge Otis remarked that by
a Supreme court decision a horse was entitled to
one bite, and he would now ascertain whether a cat
was entitled to any scratches.
1946
Supplies of poultry feed were reported in criti-
cal condition on Cape Cod this week. One dealer
informed Betram Tomlinson , county agricultural
agent, he had nothing, either grain or mash, on
hand , and poultry raisers said they were operating
on a day to day basis as to supplies despite drastic
cuts in their flocks.
CONTINUED ON PAGE A:12
EDITORIALS
A changing industry needs changing rules
Verizonwantsto get into the cable
televisiongame.Actually,it alreadyis,
with the introduction of its all-fiber-
optic systems in some communities
acrossthecountry.But asanewentry,
the companyisfinding the regulatory
price of admission, negotiating com-
munity-by-community for access,
archaic and cumbersome.
To this end, Verizon has offered a
rule change to the Massachusetts
Department of Telecommunica-
tions and Energy to do away with
localfranchiserequirements,leaving
the state as the all-in-one overseer
of the newly-coined field of "video
services."
The concept has found support in
regulatory and legislative corners
as the latest hope of developing a
competitive market in television
delivery.
In callingfor hearings on the Veri-
zon proposal, DTE is looking favor-
ably on the enhanced competition
a deregulated environment could
bring. That competitors object sug-
gests it might not be a bad thing for
consumers, but there are elements
that need protection.
But cities and towns are looking at
yet another reduction intheir control
over cable providers in their commu-
nities, and aren't happy about it.
At this week's Barnstable Cable
AdvisoryCommitteemeeting,member
DougMurphy,who'sseenmanyopera-
torscomeandgoascompaniesmerged
or were sold, asked. "What control do
we have now, realistically?"
Committee chairman David Cole,
whose tenure on the committee
equals that of Murphy, conceded the
point,but issuessuchasPEG (Public,
Education and Government access)
and town-wideinstallation can still
be addressed and negotiated within
the contract.
The public access industry of low
production values and high opinion
content was born in a time when in-
frastructure was expensive, licenses
were exclusive and competition non-
existent. Communities were able to
muscle cable companies into PEG
access because private companies
knew it was the only way to gain
a captive audience and effective
monopoly, and were willing to pay
the price.
These aren't those times.
Municipalities want to bring com-
petitors through that same process,
exacting similar pounds of flesh in
local benefits while expecting com-
petition between relative giants.
That may be unrealistic.
What's needed are legislative and
regulatory guarantees to preserve
traditional and expected extractions
from providers of what'snow termed
videoservices.These canbe incorpo-
rated at the state and federal level.
While it is easy to memorialize the
sendeesnow in place, there needs to
be assurancethat asnew servicesare
offered to new areas that the same
PEG access remains available.We're
allfor open, competitive markets.We
wishmore existedinthisstate (think
auto insurance), but there is a need
to ensure the benefits that local ac-
cess provides are retained.
Verizon is antsy about the review
time line, which pushes the state
decision-making on the Verizon-of-
fered regulatory change into the
fall, because it is looking at least 45
franchise processes.
Verizon's would-be competition
is antsy as well. Comcast and RCN
stand opposed, each publicly calling
into question the fairness of relaxed
standards given their history of lo-
cal regulation and negotiation. But
the companies are likely worried
about Verizon's superior product ,
in terms of speed, versatility and
price point.
These hard-wired companies with
their expensive infrastructure will
face increasing competition from
high-powered wide-area wireless
operations (WiMax) that willreturn
television to its over-air roots, albeit
not for free. Much likesatelliteservic-
es now.such operations willhave no
local regulatory provisions, save for
the occasional tower.That suggests
a tough future for local access.
If PEG and issues of community
access areatthe heart of local opposi-
tion (there 's also the issue of locally
collected franchise fees: $440,000
for Barnstable), municipal officials
across the state need to hammer
that home with the DTE.
Killingcompetition to keep current
access alive is not in the interest of
consumers.
DS II
editor@barnstablepatnot.com
[l I
| Next Week in &fte patriot... 11
^
Graduation Days
Hail to thee, Barnstable High School Class of 2006,
and to Barnstable students graduating from Cape Cod
Regional Technical High School and Sturgis Charter
Public School....
www.barnstablepatriot.com
BARNSTABLE PATRIOT
ISSN 0744-722 1
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