Newsday from New York, New York • 55

I i i MOM4II tIM I )' I IMtM-l 1 t'l'lltl rgrrfrrfNru-tflhiii 1 UNIONS SMART MONEY DOW GOLD DOLLAR PY Wf extension ofM Teamsters 8utt'meyZMmecncat coverage to pofof to lakioffis a talks, PageSt: a costly one: Page 55.1 Bigger Tax Bite iVe governor riled by new NY low of-state taxpayers total income into account is fair and reasonable. It means $50 million to spend on poor people, homeless people, sick people and people who need police protection in this state, said Cuomo. Out-of-state residents who By Nicholas Goldberg Newsday Albany Bureau Gov. Thomas Kean of New Jersey angered by a newly, effective law that would raise the taxes of people who live outside New York State but commute in to work vowed this week to support any court challenges his constituents may bring. Kean said he believes that the courts will be flooded with challenges from residents of New Jersey and other neighboring states and that there is a good chance the law will be overturned.

We dont want to see our taxpayers burdened any further, said John Sa-meijan, a spokesman for Kean, especially by an outside agency. Gov. Mario Cuomo said he believed the law which is expected to raise about $50 million a year by taking out- Gov. Thomas Kean work in New York pay New York State taxes now only on the income they earn in the state. If a person earns $25,000 in New York, he pays taxes to New Please see TAXES on Page 52 Newsday Marie Wauben City Makes Deal on Cityspire Dome This is a very, very severe penalty," Howard Homstein, Eichners lawyer, said of the compromise.

He said the alterations on the 200-million project and the added rehearsal space would cost an extra $3 million to $3.5 million. As part of the compromise, the developer would remove granite panels that line parapets on two levels and replace them with metal railingB to allow more light and air through. Less obtrusive violations on three other levels would remain. Cityspires developer also has drawn criticism from officials of the adjacent City Center, which sued to delay occupancy of some Cityspire floors, saying the developers renovation work on the theater was Please Bee CITYSPIRE on Page 52 feet, the space would be too narrow to be useful and should not be traded for the extra height. The vote indicates the city Planning Commission doesnt care very much about the zoning ordinance, said Tama Starr, chairwoman of Community Board 5.

The message to developers is, Build whatever you please, and in the end well work something out. The steel skeleton to support the dome atop the 72-story concrete tower was completed last summer, even though the developer had agreed to halt work until the issue of extra height was settled. The city ordered the framework removed but then said part of it could remain standing for safety reasons. The developer has removed the top half of the domes eight curved steel support ribs, leaving the structure about lVfe feet above the legal height. By Harry Berkowitz An on-again, ofT-again silver dome that would push a West 56th Street skyscraper above its legal height got a go-ahead yesterday from the city Planning Commission in exchange for three floors of rehearsal space to be built next to the tower.

The commission voted 6-to-l to allow developer Ian Bruce Eichner to add 10 feet, 10V6 inches to the approved height of 799 feet for the controversial condominium and office tower called Cityspire. The Board of Estimate must vote on final approval within 60 days. As part of the compromise deal, Eichner would build 7,200 square feet of rehearsal space for small dance companies on three levels above a passageway between 55th and 56th Streets. Critics say that at 25 No Brags About Success Judge: NY Tel Must Open Phone Network By David Henry With all the flak the securities industry has been getting for insider trading and market rigging, it is a pity Pruden-tial-Bache Securities Inc. chief executive George Ball cant boast about the success of the new way hes developed to keep his ranks clean.

Late last month Ball set up a new ethics hot line for employees to call when they suspect wrongdoing by their colleagues. In a one-page memo, Ball encouraged the firms 17,000 employees to call when they come upon suspected corporate chicancery; improper activities involving the firms assets, client or competition; or malfeasance of any sort insider trading; front running, currency laundering, for example." He promised that all calls would be kept in confidence. The line is for matters that employees believe could not be correctly or comfortably discussed with a boss, he said. But no petty sniping. The are answered in the offices of the firms chief financial offi cer, chief administrative officer and general counsel, who oversees compliance with securities laws.

The officers decide what they can correct in house and what should be passed on to regulatory authorities. With Congress having passed a new law last year holding firms liable for insider trading by their employees and with securities regulators poised to crack down on executives for lax supervision. Balls intentions make good business sense. Clean really does make green," he said in the memo. Is the hot line working? Yes, said spokeswoman Eleanor Mascheroni.

How well is it working? Mascheronis dilemma was obvious: If she boasted about receiving phone calls uncovering say, insider trading frauds on investors and stock manipulation, Pru-Bache would look like the site of another scandal. We have been getting calls and it is working she said. Thats all we can say. cal private-line traffic now carried only ly New York Telephone. According to the commission, it will allow customers more choices and could lead to a reduction in prices.

The commission responded to a complaint by Teleport Communications Group, which operates a satellite communications center on Staten Island and a fiberoptic network in high-volume parts of the metropolitan area. Teleport contended it was losing business because the cost of putting in its own private circuits was prohibitive. The new arrangement would give Teleport a much broader reach. The metropolitan market about to be opened, according to Teleport ea- Please see TELEPORT on Page 52 By Paul Schreiber Newsday High-Technology Writer New York Telephone Co. yesterday was ordered to let potential competitors connect with its local network, a change resisted by phone companies all over the country.

What this leads to is the possibility for a considerably greater involvement of other carriers in local service," said Eli Noam, a member of the state Public Service Commission, which issued the order in Manhattan. Local phone companies such as New York Telephone have almost total control over local service. They were part of American Telephone Telegraph until its breakup in 1984. Under the new policy, other companies will be able to cany some lo 0.