Newsday from New York, New York • 46

BUSINESS Gage Tollner Buyer Builds on Past By Caryn Eve Wiener It is two weeks early, but already restaurateur Peter Aschkenasy has begun celebrating the spirit of Thanksgiving: Having just signed a contract to buy downtown Brooklyns landmark Gage Tollner restaurant, he sits in the gracious velvet-walled dining room, grateful for the chance to build upon its noted 109-year legacy. For a purchase price he said was in excess of $1 million, the Manhattan businessman and former city deputy parks commissioner is preparing for his first Brooklyn venture. Edward Dewey, owner of the famed seafood-chophouse, put the restaurant on the market two years ago so that he and his wife, Trudy, could retire. Aschkenasy, who said he signed the sales contract Nov. 2, said that he will serve as the restaurants manager until the deal is final.

Dewey said the deal marks the end of his familys 70 years of ownership. The nostalgia is going to sink in later, he said. I think itll happen after we've stepped away for a few months. Aschkenasy, a native West Sider, said he will employ the kind of southern hospitality that first launched Gage Tollner and attracted clients such as Diamond Jim Brady and Fanny Brice. He has hired chef Edna Lewis, whose southern flavors were most recently served at Uncle Sams in Manhattan a year ago.

Despite hard times that had trimmed back the restaurants traffic several years ago, Aschkenasy said he believes that life and a good investment still stirs within Gage Tollners stylized interior at 372 Fulton St. This is the heart of downtown Brooklyn, and the people who work in Brooklyn feel comfortable here, he said. Lawyers, judges, government officials, Photo by mtflah Peanny Peter Aschkenasy, new owner of Brooklyn's Gage Tollner restaurant, with chef Edna Lewis. The history is here, Aschkenasy said. But if you are following whats going on in Brooklyn, you can see its exactly what happened in developing midtown Manhattan, in microcosm.

So he and Lewis have decided to make the Thanksgiving Day menu the first meal to reflect her presence as well as Gage Tollners pending ownership change. It will feature the southern flavor of Smithfield ham, roast turkey, steak, flounder in parchment and, as dessert, pecan, lemon-meringue, pumpkin or Tyler pie. executives that is the core. He said he expects to expand on that by making the restaurants dinner and holiday trade more accessible with a larger staff, lower prices, valet parking and a wider variety of fresh seafood, homemade desserts and baked breads. He and his two general partners his wife, Many Blum, and developer James Capalino, a former city general services commissioner also believe that downtown Brooklyns building boom will renew success for Gage Tollner, too.

Drexel Said to Be in Talks With Baker fails to head off an indictment in Washington, as expected, the firm would then begin a final round of settlement talks with Giuliani, according to sources familiar with the case. No such talks are under way, the sources said. If Baker agreed to join Drexel, the firm would be well-positioned for those negotiations. In an earlier and similar criminal case involving a mqjor Wall Street firm, Giulianis office decided not to file charges against Kidder, Peabody Co. when the firm voluntarily brought in a new chief executive and allowed other executives to resign.

In their internal discussions, some senior Drexel executives have talked about the possibility of a similar settlement. The Washington Post The embattled Wall Street firm Drexel Burnham Lambert Inc. has been negotiating with former White House chief of staff Howard H. Baker Jr. about becoming Drexels chairman, a move some of the firms officials see as a way of avoiding criminal charges, sources Baid yesterday.

Baker and Drexel declined to comment directly on the status of their discussions. Drexel, however, issued a statement acknowledging that it has been working with Baker and his Tennessee law firm on matters relating to internal corporate governance, and which are unrelated to either the ongoing investigation by the U.S. attor ney or any Washington matters. The Drexel statement continued, It would be entirely inappropriate to comment or speculate on any subject which is under review or discussion between Drexel, Baker and his law firm. Senior Drexel executives recently have discussed the possibility of Baker becoming chairman as part of internal talks about how the firm might avoid criminal securities fraud charges.

Some senior Drexel executives hope that arrival of the widely respected Baker would persuade Manhattan U.S. Attorney Rudolph W. Giuliani not to name the firm in an expected racketeering indictment, sources said. Some people familiar with Bakers negotiations with Drexel downplayed any link between those talks and the possibility of a future settlement with federal prosecutors, but others noted that Baker and Giuliani are no strangers. When he was White House chief of staff.

Baker summoned Giuliani to Washington in 1987 and offered him the chairmanship of the Securities and Exchange Commission. Giuliani declined the offer, and the job later went to law professor David S. Ruder. In recent weeks, Drexels lawyers have been trying to persuade Justice Department officials in Washington that racketeering charges against the firm would be rejustified. If Drexel Wall St.

Calmly Anticipates a Bush Victory A decline in unemployment in October to the lowest level in 14 years and a rise in the purchasing managers economic index both sparked worries of an overheated economy and boosted Reuter Wall Street anticipates a victory for George Bush in todays presidential election, but there will be no wild celebration if the traditionally favored Republican Parly keeps its grip on the credit market interest rates. Eric Miller, chief investment officer at Donaldson, Ijiflrin and Jenrette Securities says a victory by Dukakis could trigger a drop of White House. a I dont think its going to be anything spec- Liberals Gains in Poll Upset Canada Markets Ottawa (Reuter) Fear struck Canadas stock, bond and money markets yesterday after a poll was released showing the opposition Liberals heading toward a majority government in the Nov. 21 election. But analysts say the mood of the electorate is fickle and with two weeks to go, the campaign is still seen as too close to call.

A Gallup poll published by The Toronto Star said the Liberals were on the way to winning a majority government with support of 43 percent of decided voters. Prime Minister Brian Mulroneys Conservatives, who entered the campaign well in front, were in second with 31 percent support. The left-leaning New Democrats were last with 22 percent. The Canadian dollar as well as the stock and bond markets fell sharply on concerns that the pro-business Conservatives would be unable to pass legislation implementing free trade with the United States. tacular; a Bush win is already discounted in the marketplace, said Roy M.

Bhunberg, chief investment strategist at Thomson McKinnon Securities Inc. in New York. An upset win by Democrat Mirfmal nikki would, on the other hand, find investors quite shocked, at least on the very short term. But a Democratic win is not the biggest worry of the Republican-oriented financial community on the eve of the election. Instead, it is Federal Reserve Chairman Alan Greenspan, who was appointed by President Ronald Concern over the possibility that the Federal Reserve will tighten monetary policy pushed the Dow Jones industrial average to big losses of 25 points Friday and 21 paints yesterday.

Bhunberg said that far the moment the stock market is more influenced by the Federal Reserve than actions in the White House. 5 percent to 10 percent in U.S. stocks. It would mean a weak market for three to four weeks, he said. Miller expects almost no positive reaction should Bush win.

Everybody we know and talk to in the investment business assumes a Bush victory; its well discounted, he said. Miller said that should Bush win, there is no reason to expect many changes in the UJS. economy. If he Bush has any plans for strong fiscal action they have certainly been kept a very good se- ft CT6L Miller believes investors are focused primarily on takeover stocks, but some may also be worried about the economy overheating. He said higher nonfarm payrolls in October suggest the economy has pretty good momentum and is stronger than many were thinking.

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