Daily News from New York, New York • 300

CO CO The Ticker DOW JONES 26.92 11,148.10 NASDAQ 39.50 2,817.73 Nasdaq-Amex skips Times Sq. big dig he Nasdaq-Amex is shelving its plans for developing a gleaming I I new stock exchange and headquarters building, according to real I I estate industry sources. LJ Unable to come up with financing for the $500 million development, the Nasdaq-Amex instead has begun to search for leased space for its New York operations and the hundreds of jobs it plans to BIAS case of fired employee Christain Curry called "baseless" by Morgan Stanley. LOCATION LOCATION LOCATION relocate from Washington, D.C. If that plan goes through, the New York Stock Exchange rival will simply renovate the nearby American Stock Exchange trading floor.

The decision is seen as a disappointment for developer Douglas Durst, who controls most of a site on W. 42nd Street and Sixth Avenue that had been the Nasdaq-Amex' first choice. The exchange also had been considering sites in Battery Park City and Tribeca. More recently, it eyed the possibility of sharing the huge tower the NYSE is developing at Broad and Wall streets. Michael Jones, the Nasdaq-Amex' chief administrative officer, said the exchange "has broadened our perspective to look at options that may not include" new development, although new construction has not absolutely been ruled out "We have to meet Telecom access made easier for disabled The Federal Communications Commission yesterday enacted new rules that require the telecommunications industry to make pagers, cellular phones and other equipment and services easier for disabled individuals to use.

Such equipment as voice-activated phones, talking Caller ID and phones with keypads that have large buttons or specific identifying marks would be more commonplace. Also more widely available would be "text phones," usually referred to as TTY or TDD systems, and phones with volume controls or headsets. In high gear Ford, boosted by strong U.S. car and truck sales, reported a 4 gain in quarterly operating profits to $2.48 billion. But the world's second-largest auto maker said it was still struggling in Europe and South America.

Its earnings were equal to $2 a share, compared with $2.38 billion, or $1.91 a share, during the same period a year ago. Sales rose 13 to $42.3 billion. Analysts had been expecting $1.95 a share. Ford's net profits equaled $2.34 billion, or $1.89 a share, including a one-time profit reduction of $146 million related to its January acquisition of the car making unit of Sweden's Volvo. Ford's stock was down 916 at $52.93.

Computer connection Online computer retailers Orv sale and Egghead.com said they agreed to merge in a $400 million stock deal that will create a company with a combined 1999 sales rate approaching $500 million. The new company will operate under the name and Web address of "Egghead.com" with auctions and sales of surplus goods under the Onsale banner. The store can be found at (www.egghead.com). Cable conflict which through its acquisition of MediaOne Group will form the largest U.S. cable television company, said it intends to appeal a vote by the Broward County, government requiring cable franchises to open cable lines to rival Web companies.

The issue is whether cable providers can bundle Internet access as part of the price of cable service. Internet service providers were elated by the Florida decision, and intend to bring the issue before other local authorities nationwide. DOUGLAS DURST plans. Sources said chances are it will get a lot less than the $200 million pledged to help pay for a new development Meanwhile, Durst, who declined to comment hasn't lost any time. He's already begun talks with major, potential tenants such as accountants PricewaterhouseCoopers, the Bloomberg news organization and the law firm of Simpson Thacher Bartlett about anchoring an office tower at his 42nd Street site.

EAST SIDE COMPROMISE The Taubman family has reached a compromise with the residents of a Fifth Avenue co-op that will allow the Taubmans to convert the former home of the Union of American Hebrew Congregations into condos going for up to $10 million. The neighbors of the American Hebrew building at 838 Fifth Ave. and 65th St had threatened to sue to block a conversion plan that would have added two floors to the 11-story building. Under the compromise, approved by the city Landmarks Preservation Commission this week, the Taubman's Athena Group has agreed to add just one story and put some of its mechanical systems in the basement rather than the roof. The building is in a historic district "We tried to respect our neighbors' light and air," said Louis Dubin, president of Athena and son-in-law of A.

Alfred Taubman, an Athena limited partner and chairman of Sotheby's. Athena has modified its plans to erase the immediate space requirements," he said. Sources said the Nasdaq-Amex decided not to build largely because it could not convince the Giuliani administration to increase the incentive package from $200 million originally promised. Executives were arguing for a deal comparable to the $600 million package of grants, tax breaks and other subsidies the city and state gave the NYSE. Nasdaq-Amex officials have now begun talks with City Hall about subsidies for its Decision poor, not criminal By BARBARA ROSS Daily News Staff Writer Morgan Stanley Dean Witter's lawyers showed poor judgment but were not criminal when they failed to tell cops they paid $10,000 to a man who ratted out a former employee, prosecutors concluded yesterday.

Manhattan District Attorney Robert Morgenthau said criminal charges wouldn't be filed against the prominent investment banking firm or its attorneys because their mistakes were due to "inexperience" in dealing with criminal matters. Last summer, Morgenthau's office charged Christian Curry, a former Morgan Stanley employee, hired an undercover cop posing as a computer hacker to break into Morgan Stanley's computer system and plant E-mail that would bolster a racial discrimination lawsuit Curry planned to file. Curry had been dismissed in the spring of 1998: he said it was because he is black; Morgan Stanley said it was because he submitted fraudulent expense reports. Morgenthau's office recently dropped the charges against Curry, saying it had problems with the credibility of a key witness against him, a man named Charles Joseph Luethke. Assistant district attorney Dan Castleman said Morgan Stanley officials never told police the firm had paid Luethke $10,000 and when confronted, he said, they initially denied it Morgenthau said Morgan Stanley paid Leuthke only after being told by outside counsel it was alright to do so because he would not be a witness in the criminal case against Curry.

"This assumption was erroneous," Morgenthau said. And the firm's "failure to communicate" and disclose the $10,000 payment "was due to inexperience in dealing with law enforce-, ment officials." Morgan Stanley said it was "pleased" with Morgenthau's. conclusions and called Curry's $1.3 billion race discrimination lawsuit "baseless." religious inscriptions. Love Thy Neighbor as Thyself will remain. "That really shouldn't offend anyone and the community really wanted to leave it," Dubin said.

WRESTLE YOUR MEAL The World Wrestling Federation has pinned its deal for a theme restaurant in the burgeoning Times Square entertainment district After more than a year of searching, the federation has leased the first floor and basement of 1501 Broadway at 43rd Street The building is best known as the former location of the Paramount Theater, where i Treasury team Frank Sinatra used to croon to bobby-soxers. The theme restaurant set to open before the end of the year, will feature a 570-table restaurant, WWF store and a theater seating up to 300 that will host wrestling demonstrations, concerts and The Senate has approved Stuart Eizenstat as deputy Treasury secretary and Lewis Andrew Sachs to the post of assistant secretary for financial markets. They were confirmed by voice vote without debate. Nominated by President Clinton, Eizenstat and Sachs will serve under Treasury Secretary Lawrence Summers whore- other performances. Wrestling superstars like The Rock and Stone Cold Steve Austin are expected to make regular appearances.

What we are is entertainment, said James Bell, the WWF's senior vice president for licensing. "This places outgoing Treasury Secretary isn you re father World Wrestling Federation anymore." Robert Rubin..