Shadows Fall across the Valley

Kudos for taking on the poignant topic of wealth inequality in Silicon Valley (''Down and out in Silicon Valley,'' Social Issues, Mar. 27). I am appalled at the greed demonstrated by the senior management of so many companies there. The concept of billionaire chief executives employing part-time workers who duck in and out of homeless shelters while holding down jobs that offer minimum benefits, if any, is a disgrace. Whatever happened to the notion of stewardship on the part of management toward their workers?

One of the beauties of our economic system, however, is that excesses have a way of being resolved over time. As workers such as Fawnda Stewart leave the Valley for other, more habitable areas, the companies relying on labor such as hers ultimately will pay the price--either in the form of higher wages or bankruptcy, as their customers bolt due to unfulfilled promises of service. Investors wisely will consider these issues as they attempt to evaluate future profitability of such companies.

It is a truism that a society is only as great as its least common denominator. At some point, the 17,000 millionaires in Silicon Valley will understand this, as their children go uneducated due to teacher shortages, as restaurants close because they can't get food on the table, and a host of other inconveniences are thrust upon them. Perhaps then, some of these talented managers of the New Economy will realize that their gold will turn to dust unless they lead with wisdom and fairness.

Robert Key
Columbia, S.C.

Extraordinarily high housing costs and traffic congestion are not the only disadvantages of Silicon Valley. I have lived and worked in the Valley for the past 17 years, and the lifestyle here leaves much to be desired. Life in the high-tech mecca largely consists of endless hours chained to a desk in a maze of cubicles. The monotonous tilt-up concrete office buildings exude no charm or warmth. At lunchtime, Valley workers rush to eat in overcrowded, mediocre restaurants. Despite the region's much-ballyhooed ethnic diversity, it's obvious how alike all the people are in their beliefs, interests, and dress. Corporate influence is strong, and Silicon Valley resembles a sprawling company town.

Many new arrivals are focused solely on getting rich quick, and they make little effort to reach out to help others. Donations to charities and volunteering are at levels below national averages. Despite all the money, there is a remarkable absence of world-class museums, restaurants, and entertainment options. On weekends, people leave in droves, heading to Lake Tahoe, Napa, Carmel, and other places where they can escape the drudgery that is Silicon Valley.

Anthony G. Stegman
San Jose, Calif.

You referred to the light-rail system under construction by the Valley Transportation Authority (VTA) as part of the solution, since it would allow people to live farther from work (''The other side of Silicon Valley,'' Editorials, Mar. 27). It is worth noting, however, that VTA has had more than 20 miles of rail in service for about a decade, attracting only modest ridership that has not measurably improved traffic. It remains to be seen whether additional lines will be any more effective.

The planning concerns (cost of housing, traffic congestion, etc.) that your story raised have been on the public agenda in Santa Clara County for more than 20 years, yet conditions have only gotten worse during that time. It is unrealistic to expect that a few more miles of light rail will solve the economic and mobility problems of a congested and rapidly growing county of more than 1 million people.

Michael Rancer
Piedmont, Calif.

It Wasn't Easy Saying Goodbye to General Re

Anthony Bianco, the author of ''The sage has some explaining to do'' (The Corporation, Mar. 20), made no attempt to get in touch with me, but that didn't prevent him from guessing about why I left General Reinsurance Corp. For the record: From the moment I learned of Berkshire Hathaway's interest in General Re, I believed that the combination was a perfect one. I didn't ''promptly resign'' as president and chief operating officer because of ''Buffett's well-advertised opposition to...stock options.'' In fact, I spent seven months following the announcement of the acquisition--from June, 1998, to February, 1999--traveling to General Re offices around the world, helping assure the company's management team, employees, and customers that the acquisition was right for them.

I resigned for the opportunity to help lead St. Paul Cos., one of the leading primary commercial insurers in the world. Even when that opportunity presented itself, however, it was still a hard decision to leave General Re, a great company in every respect, after 30 years.

James E. Gustafson
President and
Chief Operating Officer
St. Paul Cos.
St. Paul, Minn.

Americast Is Already a Star

BellSouth Corp.'s Americast service has not struggled at all. It is a phenomenal success (''Dueling dishes: Can BellSouth beam itself up?'' News: Analysis & Commentary, Mar. 27). The ''flawed radio-wave technology'' author Charles Haddad speaks of is called MMDS (multichannel multipoint distribution service). Does MMDS require a clear line of sight? Yes. Is the goal to reach 100% of any given marketplace? No. MMDS operators understand that line-of-sight in any market may be only 60% to 80%--so what? Sixty percent of 1 million is still 600,000 potential customers.

On Wall Street today, a pay-TV subscriber is worth between $5,000 and $6,000. After only two years, BellSouth's $50 million investment is worth more than $1.75 billion. It doesn't sound as if BellSouth's Americast service has made a ''poor showing,'' nor as if the Americast service is ''languishing.''

What's more, Americast has achieved a market penetration of more than 20% in only two years, operating in only two markets (Atlanta and New Orleans). Imagine the penetration of Americast's digital wireless-TV service after it has accrued as much development time as cable and satellite services. If the service accrues an additional 20% penetration over the next two years--a distinct possibility with launches in Miami, Orlando, and Tampa--Americast could see subscribership surpassing 1 million homes, which would give it a market value in excess of $5 billion.

Christopher S. Hintz
Vice-President
Digital Broadcast Corp.
Great Neck, N.Y.

Losing Yourself in a Good E-Book

The real winners for e-books could be high schools (''A new chapter for e-books,'' Technology & You, Mar. 27). Each student is permanently assigned one e-book and downloads text at home or in class, as necessary. No more book check-in, check-out, or storage over the summer. Easy updates; no graffiti damage; no heavy backpacks to lug home. As a taxpayer, I'd be willing (if the school can't afford it) to purchase hardware this versatile for my kids. Of course, I'm assuming the downloads will eventually be cheaper than purchasing printed books.

Steven C. Baker
Portland, Ore.

I read 50 to 100 books a year. Here's what I need and want in an e-book: a thin unit that opens up like a paperback (maybe a little bigger), that costs no more than $200, and will accept all formats that books are published in. Then, the books must sell at a lower price than I can order them for at amazon.com or that I can buy them for at Wal-Mart. That means at least 60% to 75% off retail. And if it had a chip that let the book ''expire'' after a month or two, no problem.

One way to see this technology move forward rapidly is to get e-books in the hands of libraries, and then let them ''rent'' out the books for $2 to $5 per rental, which would give people a chance to try out the units, and give the libraries a new source of income without having to order multiple copies of best-sellers.

Thomas Conwell
Chicago

My leisure reading has been in e-books almost exclusively for well over a year, and the most I've paid for a book has been $6 each for some of William Sanders' novels, at Alexandria Digital Literature (www.alexlit.com). As I get older, I find it much easier to read on the computer screen or my Rocket eBook (for which I paid under $200, including shipping), because I can adjust the type size and, on the Rocket, the backlight. I can't imagine color being an issue with a novel, because the paperbacks I used to read didn't have color illustrations, either.

Quality and selection are improving by leaps and bounds, and I'm finding a much more enjoyable selection of leisure reading than on the shelves of the local bookstore. I will admit to not reading from the best-seller list or mainstream literature. As a reader of science fiction and fantasy, I'm perhaps coming at the market from a different angle.

Elizabeth Bennefeld
Fargo, N.D.

An Accountant Counts His Blessings

I enjoyed reading ''Where have all the accountants gone'' (The Corporation, Mar. 27). As managing partner of the largest accounting firm in Washington, I found myself nodding at many of the points that were made by author Nanette Byrnes. The issues she raises affect firms of all shapes and sizes.

One area where local firms differ from the Big Five is in our approach to publicly traded companies. Since our founding in 1976, we have specifically avoided performing audit work for Securities & Exchange Commission registrants. Frankly, few public entities will hire a non-national firm to perform their audits, so we weren't giving up much. Now I realize that our staff members have an additional benefit: They can invest in almost any publicly traded entity without worrying about running afoul of American Institute of Certified Public Accountants' regulations. In a recruiting world that is beyond competitive, I'll take any advantage we can get.

Public accounting is still a great place to start your career, even if it's not where you end it. It provides a breadth of experience in many financial disciplines and exposes young professionals to decision-makers at an early stage. It continues to be the best opportunity to see ''the business'' of business. Yet the lure of the easy money is out there. In this new hotbed of technology companies, the issue you highlight is more than a minor concern for our industry.


R. Edwin Offterdinger
Managing Partner
Beers & Cutler
Washington

''The Talented Ms. Redstone'' (Entertainment, Apr. 3, 2000)

The table in ''The Talented Ms. Redstone'' (Entertainment, Apr. 3) should have said that Shari Redstone received her bachelor's degree from Tufts University in 1975, not Boston University.