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First Kaleida, now Adelphia. We like nothing better than seeing the mighty and arrogant brought low, especially when the nitwit politicians who suck up to them appear to be going down the drain as well.
Adelphia Business Solutions? How about Adelphia Business Problems.
As spokesmen for the Rigas family -- which runs Adelphia -- publicly implored underlings not to shred documents in the face of an investigation by the federal Securities and Exchange Commission, Buffalo Mayor Anthony Masiello expressed confidence in the failing company's ability to complete its proposed waterfront development project.
What a sap.
Despite Western New York sales of approximately $15 million a month and overall revenues of $950 million last year, Adelphia posted an operating loss of $1.3 billion. That means that, for every $1 they gouged out of you for substandard cable service, Adelphia managed to lose $1.30.
Analysts say that more than $2 billion of the company's $14 billion debt was deliberately kept off the books in what has been described as a "mini-Enron." Adelphia investors, who have lost billions in recent months, are furious.
There are crooks and there are crooks. Stick up a grocery store for $100 and you're looking at seven years in Attica. But take billions you know you can't pay back then file for bankruptcy protection -- or arrange to pay yourself a six-figure bonus at the expense of some poor sick children -- and you get a golden parachute.
First Kaleida and now Adelphia. For years the beneficiaries of corporate welfare, the two conglomerates are emblematic of all that is wrong on the Niagara Frontier. There are many businesses here -- hardware stores, hotels, barber shops, restaurants and auto dealerships -- that didn't lose anywhere near $1.3 billion last year. And those are exactly the businesses facing the twin specters of government red tape and skyrocketing taxes.
In the meantime, the deadbeat debtors dine at the country club, hobnob with mayors and governors and accept awards for good citizenship when the Chamber of Commerce holds its annual dinner.
It's all about the golden rule. As in those with the gold make the rules. And the rest of us are the poorer for it.
| Niagara Falls Reporter | www.niagarafallsreporter.com | April 9 2002 |