CHAMPIONING FELIX WAS NO FLUB
Your article "Bad counsel at the Economic Council?" (News: Analysis & Commentary, Feb. 26) called Laura Tyson's National Economic Council decision to recommend Felix Rohatyn as vice-chairman of the Federal Reserve Board of Governors the "Felix Flub." Far from being a flub, this recommendation was a sound choice. Rohatyn is a man of great integrity who would have brought to the board more than 30 years of experience in global financial markets and a sterling reputation in the business community. His views about the best way to increase noninflationary growth are certainly within the mainstream of economic thought and policy. Moreover, he is on the best of personal terms with Alan Greenspan and Robert Rubin. If there was a flub in the case of Rohatyn, it is not that he was recommended. It is that ideological and partisan pressures in the Senate threatened to block his nomination, led him to withdraw his name rather than become what New York Times columnist Abe Rosenthal called the "football du jour," and deprived the country of his service and advice in this important position.
Lloyd N. Cutler
Former White House Counsel
WashingtonReturn to top
HILTON'S REPUTATION GETS TIDIED UP
I was appalled by your article "Is there really room at the Inn for Steve Bollenbach?" (News: Analysis & Commentary, Feb. 19) on Hilton Hotels. You are wrong when you say Barron Hilton is not decisive or supportive. The company was not sold simply because an adequate offer was never received. During the 30 years that I worked with him, the confidence and backing that he extended to his key people was unwavering.
The executives who left the company resigned for reasons other than those you mentioned. You also glossed over the tremendous increase in Hilton's earnings. This is not the troubled company you describe. Hilton's trophy properties are amongst the most profitable hotels in the U.S.
The decision to bring Steve Bollenbach aboard was clearly Barron's. Contrary to your writings, you will find that they will be a most successful team, and Barron will be Bollenbach's greatest supporter.
Carl T. Mottek (retired 1994)
Past President Hilton Hotels Div.
Santa Barbara, Calif.Return to top
SALTON/MAXIM WASN'T INSIDE WALL STREET
In your article entitled "Is someone sneaking a peek at BUSINESS WEEK?" (News: Analysis & Commentary, Feb. 5) you listed the names of several stocks that experienced "suspicious trading" prior to the release of BUSINESS WEEK's Inside Wall Street column. The article disclosed that the Securities & Exchange Commission and the exchanges have been alerted as to possible insider trading involving these stocks.
Although I applaud BUSINESS WEEK's efforts to prevent leaks of public-company information contained in the magazine, I believe that the article created the impression that the suspicious trading could have involved management of the named companies.
The management of Salton/Maxim did not know that information concerning the company was going to be contained in an Inside Wall Street column and did not trade company stock at any time close to the issue date of such column, either before or after that date.
William B. Rue
Senior Vice-President/Chief Operating Officer
Salton/Maxim Housewares Inc.
Mt. Prospect, Ill.Return to top