Chapter 3

Alex suddenly resigned in 1984 when he had collected enough freelance fees to support his habits, but he was unaware that his own agency had had him under surveillance for years, waiting for him to slip up. He hadn't, and with predictable German Govern- ment efficiency, upon his departure from the RDD, his file was promptly retired and his subsequent activities ignored.

Alex began his full time free-lance career as a 'Provider of Information'. With fees of no less than 250,000 DM, Alex didn't need to work much. He could pick and choose his clients as he weighed the risks and benefits of each potential assignment. With his network of intelligence contacts from Scotland Yard, Le Surite, and the Mossad, he had access to the kind of information that terrorists pay for dearly .

It was a good living. No guns, no danger, just information.

His latest client guaranteed Alex three years of work for a flat fee in the millions of Deutch Marks. It was the intelligence assignment of a lifetime, one that insured a peaceful and pros- perous retirement for Alex. He wasn't the perennial spy, politi- cally or dogmatically motivated. Alex wanted the money.

After he had completed his computer classes and purchased the equipment from the list, Sir George dialed the number he had been given. He half expected a live person to congratulate him, but also realized that that was a foolish wish. There was no reason to expect anything other than the same sexy voice dictating orders to him.

"Ah, Sir George. How good of you to call. How were your class- es?" George nearly answered the alluring telephone personality again, but he caught himself.

"Very good," the voice came back in anticipated response. "Please get a pencil and paper. I have a message for you in 15 seconds." That damned infernal patronization. Of course I have a bleeding pen. Not a pencil. Idiot.

"Are you ready?" she asked. George made an obscene gesture at the phone.

"Catch a flight to San Francisco tonight. Bring all of the com- puter equipment you have purchased. Take a taxi to 14 Sutherland Place on Knob Hill. Under the mat to Apartment 12G you will find two keys. They will let you into your new living quarters. Make yourself at home. It is yours, and the rent is taken care of as is the phone bill. Your new phone number is 4-1-5-5-5-5-6-3-6-1. When you get settled, dial the following number from your comput- er. You should be well acquainted with how to do that by now. The number is 4-1-5-5-5-5-0-0-1-5. Your password is A-G-O-R-A. Under the mattress in the bedroom is a PRG, Password Response Generator. It looks like a credit card, but has an eight digit display. Whenever you call Alex, he will ask you for a response to your password. Quickly enter whatever the PRG says. If you lose the PRG, you will be terminated." The voice paused for a few seconds to George's relief.

"You will receive full instructions at that point. Good Bye." A dial tone replaced the voice he had come to both love and hate. Bloody hell, he thought. I'm down to less than $5000 and now I'm going back to San Francisco? What kind of bleedin' game is this?

Apartment 12G was a lavish 2 bedroom condominium with a drop dead view of San Francisco and bodies of water water in 3 directions. Furnished in high tech modern, it offered every possible amenity; bar, jacuzzi, telephone in the bathroom and full channel cable. Some job. But, he kept wondering to himself, when does the free ride end? Maybe he's been strung along so far that he can't let go. One more call, just to see how the next chapter begins.

George installed his computer in the second bedroom on a table that fit his equipment like a glove.

C:\cd XTALKC:\XTALK\xtalk

His hard disk whirred for a few seconds. He chose the Dial option and entered the phone number from the keyboard and then asked the computer to remember it for future use. He omitted the area code. Why had he been given an area code if he was dialing from the same one? George didn't pursue the question; if he had he would have realized he wasn't alone.

The modem dialed the number for him. His screen went momentarily blank and then suddenly came to life again.

<<<<<>>>>>DO YOU WANT TO SPEAK TO ALEX? (Y/N?)

George entered a "Y"

George entered AGORA. The letters did not echo to the screen. He hoped he had typed then correctly. Apparently he did, for the screen then prompted him for his RESPONSE.

He copied the 8 characters from the PRG into the computer. There was a pause and then the screen filled.

<>

George pushed the space bar. The screen was again filled.

The screen was awaiting a response. George typed in "Y".

None

Finally, thought Sir George, the reason for my existence.

Force, what the hell does that mean? I guess the answer is No, thought George.

<<<<<>>>>>

Sir George was a little confused, maybe a lot confused. He was the proud owner of a remote control job, a cushy one as far as he could tell, but the tone of the conversation he just had with the computer was worrisome. Was he being threatened? What was the difference between 'Services Terminated' and 'Terminated' anyway. Maybe he shouldn't ask. Keep his mouth shut and do a good job.

Hey, he thought, dismissing the possible unpleasant consequences of failure. This is San Francisco, and I have a three days off in a new city. Might as well find my way around the town to- night. According to the guide books I should start at Pier 39.

****************************************************************

Tuesday, September 8,New York City

But they told me they wouldn't tell! They promised." Hugh Sidneys pleaded into his side of the phone. "How did you find out?" At first, Scott thought the cartoon voice was a joke perpetrated by one of his friends, or more probably, his ex-wife. Even she, though, coudn't possibly think crank a phone call was a twisted form of art. No, it had to be real.

"I'm sorry Mr. Sidneys. We can't give out our sources. That's confidential. But are you saying that you confirm the story? That it is true?"

"Yes, no. Well ," the pleading slid into near sobbing. "If this gets out, I'm ruined. Ruined. Everything, my family . . .how could you have found out? They promised!" The noise from the busy metro room at the New York City Times made it difficult to hear Sidneys.

"Can I quote you, sir? Are you confirming the story?" Scott pressed on for that last requisite piece of every journalistic puzzle confirmation of a story that stood to wreck havoc in portions of the financial community. And Washington. It was a story with meat, but Scott Mason needed the confirmation to complete it.

"I don't know. . .if I tell what I know now, then maybe . . .that would mean I was being helpful . . .maybe I should get a lawyer . . ." The call from Scott Mason to First State Savings and Loan on Madison Avenue had been devastating. Hugh Sidneys was just doing what he was told to do. Following orders.

"Maybe, Hugh. Maybe." Scott softened toward Sidneys, thinking the first name approach might work. "But, is it true, Hugh? Is the story true?"

"It doesn't matter anymore. Do what you want." Hugh Sidneys hung up on Mason. It was as close to a confirmation as he need- ed. He wrote the story.

* * * * *

At 39, Scott Byron Mason was already into his second career. Despite the objections of his overbearing father, he had avoided the family destiny of becoming a longshoreman. "If it's good enough for me, it's good enough for my kids." Scott was an only child, but his father had wanted more despite his mother's ina- bility to carry another baby to full term.

Scott caught the resentment of his father and the doting protec- tion of his mother. Marie Elizabeth Mason wanted her son to have more of a future than to merely live another generation in the lower middle class doldrums of Sheepshead Bay, Brooklyn. Not that Scott was aware of his predicament; he was a dreamer.

Her son showed aptitude. By the age of six Scott knew two words his father never learned - how and why. His childhood curiosity led to more than a few mishaps and spankings by the hot tempered Louis Horace Mason. Scott took apart everything in the house in an attempt to see what made it tick. Sometimes, not often enough, Scott could reassemble what he broken down to its small- est components. Despite his failings and bruised bottom Scott wasn't satisfied with, "that's just the way it is," as an answer to anything.

Behind his father's back, Marie had Scott take tests and be accepted to the elite Bronx High School of Science, an hour and a half train ride from Brooklyn. To Scott it wasn't an escape from Brooklyn, it was a chance to learn why and how machines worked.

Horace gave Marie and Scott a three day silent treatment until his mother finally put an end to it. "Horace Stipton Mason," Evelyn Mason said with maternal command. "Our son has a gift, and you will not, I repeat, you will not interfere with his happiness."

"Yes dear."

"The boy is thirteen and he has plenty of time to decide what he's going to do with himself. Is that clear?"

"Yes dear."

"Good." She would say as she finished setting the table. "Dinner is ready. Wash your hands boys." And the subject was closed.

But throughout his four years at the best damn high school in the country, Horace found ample opportunity to pressure Scott about how it was the right thing to follow in the family tradition, and work at the docks, like the three generations before him.

The issue was never settled during Scott's rebellious teenage years. The War, demonstrating on the White House lawn, getting gassed at George Washington, writing for the New York Free Press, Scott was even arrested once or twice or three times for peaceful civil disobedience. Scott Mason was seeing the world in a new way. He was rapidly growing up, as did much of the class of 1970.

Scott's grades weren't good enough for scholorships, but adequate to be accepted at several reasonable schools.

"I already paid for his education," screamed Horace upon hearing that Scott chose City College to keep costs down. He would live at home. "He broke every damn thing I ever bought, radios, TV's, washers. He can go to work like a man."

With his mother's blessing and understanding, Scott moved out of the house and in with three roommates who also attended City College, where all New Yorkers can get a free education. Scott played very hard, studied very little and let his left of center politics guide his social life. His engineering professors remarked that he was underutilizing his God-given talents and that he spent more time protesting and objecting that paying attention. It was an unpredictable piece of luck that Scott Mason would never have to make a living as an engineer. He would be able to remain the itinerate tinkerer; designing and building the most inane creations that regularly had little purpose beyond satisfying technical creativity.

"Can we go with it?" Scott asked City Editor Douglas McQuire and John Higgins, the City Times' staff attorney whose job it was to answer just such questions. McQuire and Mason had been asked to join Higgins and publisher Anne Manchester to review the paper's position on running Mason's story. Scott was being lawyered, the relatively impersonal cross examination by a so-called friendly in-house attorney. It was the single biggest pain in the ass of Scott's job, and since he had a knack for finding sensitive sub- jects, he was lawyered fairly frequently. Not that it made him feel any less like being called to the principal's office every time.

Scott's boyish enthusiasm for his work, and his youthful appear- ance allowed some to underestimate his ability. He looked much younger than his years, measuring a slender 6 foot tall and shy of 160 pounds. His longish thin sandy hair and a timeless all about Beach Boy face made him a good catch on his better days- he was back in circulation at almost 40. The round wire rimmed glasses he donned for an extreme case of myopia were a visible stylized reminder of his early rebel days, conveying a sophisti- cated air of radicalism. Basically clean cut, he preferred shav- ing every two or three, or occasionally four days. He blamed his poor shaving habits on his transparent and sensitive skin 'just like Dick Nixon's'.

The four sat in Higgins' comfortable dark paneled office. With 2 walls full of books and generous seating, the ample office resem- bled an elegant and subdued law library. Higgins chaired the meeting from behind his leather trimmed desk. Scott brought a tall stack of files and put them on the glass topped coffee table.

"We need to go over every bit, from the beginning. OK?" Higgins made it sound more like and order than responsible journalistic double checking. Higgins didn't interfere in the news end of the business; he kept his opinions to himself. But it was his respon- sibility to insure that the City Times' was kept out of the re- ceiving end of any litigation. That meant that as long as a story was properly researched, sourced, and confirmed, the con- tents were immaterial to him. That was the Publisher's choice, not his.

Mason had come to trust Higgins in his role as aggravating media- tor between news and business. Scott might not like what he had to say, but he respected his opinion and didn't argue too much. Higgins was never purposefully adversarial. He merely wanted to know that both the writers and the newspaper had all their ducks in a row. Just in case. Libel suits can be such a pain, and expensive.

"Why don't you tell me, again, about how you found out about the McMillan scams." Higgins turned on a small micro-cassette re- corder. "I hope you don't mind," he said as he tested it. "Keeps better notes than I do," he offhandedly said. Nobody objected. There would have been no point in objecting even if anyone cared. It was an unspoken truism that Higgins and other good attorneys taped many of their unofficial depositions to protect themselves in case anything went terribly wrong. With a newspaper as your sole client, the First Amendment was always at stake.

"OK," Scott began. His reporter's notebook sat atop files full of computer printouts. "A few days ago, on September 4, that's a Friday, I got an anonymous call. The guy said, 'You want some dirt on McMillan and First State S&L?' I said sure, what do you have and who is this?"

"So then you knew who Francis McMillan was?" Higgins looked up surprised.

"Of course," Mason said. "He's the squeaky clean bank President from White Plains. Says he knows how to clean up the S&L mess, gets lots of air time. Probably making a play for Washington. Big time political ambitions. Pretty well connected at Treasury. I guess they listen to him."

"In a nutshell." Higgins agreed. "And . . .then?"

Mason sped through a couple of pages of scribbled notes from his pad. "My notes start here. 'Who I am don't matter but what I gotta say does. You interested'. Heavy Brooklyn accent, docks, Italian, who knows. I said something like, 'I'm listening' and he says that McMillan is the dirtiest of them all. He's been socking more money away than the rest and he's been doing it real smart. So I go, 'so?' and he says he can prove it and I say 'how' and he says 'read your morning mail'." Mason stopped abruptly.

"That's it?" Higgins asked.

"He hung up. So I forgot about it till the next morning."

"And that's when you got these?" Higgins said pointing at the stack of computer printouts in front of Mason. "How were they delivered?"

"By messenger. No receipt, nothing. Just my name and the pa- per's." Mason showed Higgins the envelop in which the files came.

"Then you read them?"

"Well not all of them, but enough." Scott glanced at his editor."That's when I let Doug know what I had."

"And what did he say?" Higgins was keeping furious notes to back up the tape recording.

"'Holy shit', as I remember." Everyone laughed. Ice breakers, good for the soul, thought Mason. People are too uptight. Higgins indicated that Scott should continue.

"Then he said 'we gotta go slow on this one,' then he whistled and Holy Shat some more." Once the giggles died down, Mason got serious. "I borrowed a bean counter from the basement, told him I'd put his name in the paper if anything came of it, and I picked his brain. Ran through the numbers on the printouts, and ran through them again. I really worked that poor guy, but that's the price of fame. By the next morning we knew that there were two sets of books on First State." Mason turned a couple pages in his files.

"It appears," Scott said remembering that he was selling the importance of the story to legal and the publisher, "that a substantial portion of the bank's assets are located in numbered bank accounts all over the world." Scott said with finality.

Higgins interrupted here. "So what's wrong with that?" he chal- lenged.

"They've effectively stolen a sandbagged and inflated reserve ac- count with over $750 Million it. Almost 10% of stated assets. It appears from these papers," Scott waved his hand over them, "that the total of the reserve accounts will be taken, as a loss, in their next SEC reporting." Mason stopped and looked at Hig- gins as though Higgins would understand everything.

Higgins snorted as he made more notes.

"That next morning," Mason politely ignored Higgins, "I got a call again, from what sounded like the same guy."

"Why do you say that? How did you know?" Higgins inquired.

Mason sighed. "Cause he said, 'it's me remember?' and spoke like Archie Bunker. Good enough for you?" Mason grinned wide. Mason had the accent down to a tee. Higgins gave in to another round of snickers.

"He said, 'you like, eh?'" Mason spoke with an exaggerated New York accent and used the appropriate Italian hand gesture for 'eh!'. "I said, 'I like, but so what?' I still wasn't sure what he wanted. He said, 'they never took a loss, yet. Look for Friday. This Friday. They're gonna lose a bunch.' I said, 'how much' and he said, 'youse already know.'" Mason's imitation of a Brooklyn accent was good enough for a laugh.

"He then said, 'enjoy the next installment', and that was the last time I spoke to him. At any rate, the next package con- tained a history of financial transactions, primarily overseas; Luxembourg, Lietchenstein, Switzerland, Austria, Hong Kong, Sidney, Macao, Caymans and such. They show a history of bad loans and write downs on First State revenues.

"Well, I grabbed the Beanie from the Basement and said, help me with these now, and I got research to come up with the 10K's on First State since 1980 when McMillan took over. And the results were incredible." Mason held out a couple of charts and some graphs.

"We compared both sets of books. The bottom lines on both are the same. First State has been doing very well. McMillan has grown the company from $1 Billion to $12 Billion in 8 years. Quite a job, and the envy of hundreds of every other S&L knee deep in their own shit." Higgins cringed. He thought Ms. Man- chester should be shielded from such language. "The problem is that, according to one set of books, First State is losing money on some investments merely by wishing them away. They disappear altogether from one report to the next. Not a lot of money, but a few million here and there."

"What have you got then?" Higgins pressed.

"Nobody notices cause the losses are all within the limits of the loss projections and reserve accounts. Sweet and neat! Million dollar embezzlement scam with the SEC's approval."

"How much follow up did you do?" Higgins asked as his pen fly across the legal pad.

"Due to superior reporting ability," Scott puffed up his chest in jest, "I found that a good many account numbers listed in the package I received are non-existent. But, with a little prod- ding, I did get someone to admit that one of them was recently closed and the funds moved elsewhere.

"Then, this is the clincher, as the caller promised, today, I looked for the First State SEC reports, and damned if the numbers didn't jive. The books with the overseas accounts are the ones with the real losses and where they occur. The 'real' books don't."

"The bottom line, please."

"Someone has been embezzling from First State, and when they're through it'll be $3 Billion worth." Scott was proud of himself. In only a few days he had penetrated a huge scam in the works.

"You can't prove it!" Higgins declared. "Where's the proof? All you have is some unsolicited papers where someone has been play- ing a very unusual and admittedly questionable game of 'what if'. You have a voice on the end of a phone with no name, no nothing, and a so-called confirmation from some mid-level accountant at the bank who dribbles on about 'having to do it' but never saying what 'it' is. So what does that prove?"

"It proves that McMillan is a fraud, a rip-off," Scott retorted confidently.

"It does not!"

"But I have the papers to prove it," Scott shuffled through the folders.

"Let me explain something, Scott." Higgins put down his pen and adapted a friendlier tone. "There's a little legal issue called right to privacy. Let me ask you this. If I came to you and said that Doug here was a crook, what would you do?"

"Ask you to prove it," Scott said.

"Exactly. It's the same here."

"But I have the papers to prove it, it's in black and white."

"No Scott, you don't. What you have is some papers with accusa- tions. They're unsubstantiated. They could have easily been phonied. You know what computers can do better than I do. Now here's the key point. Everybody in this country is due privacy. You don't know where these came from, or how they were obtained, do you?"

"No," Scott hesitantly admitted.

"So, someone's privacy has been compromised, in this case McMil- lan's. If, and I'm saying, if, these reports are accurate, I would take the position that they are stolen, obtained illegally. If we publish with what we have now, the paper could be on the receiving end of a slander and libel suit that could put us out of business. We even could be named as a co-conspirator in a criminal suit. I can't let that happen. It's our obligation to guarantee responsible journalism."

"I see." Scott didn't agree.

"Scott, you're good, real good, but you have to see it from the paper's perspective." Higgins' tone was now conciliatory. "This is hard stuff, and there's just not enough here, not to go with it yet. Maybe in a few days when you can get a little more to tie it up. Not now. I'm sorry."

Case closed.

Shit, shit shit, thought Scott. Back to square one.

Hugh Sidneys was nondescript, not quite a nebbish, but close. At five foot five with wisps of brown scattered over his balding pate, he only lacked horn rimmed glasses to complete the image. His bargain basement suits almost fit him, and he scurried rather than walked down the hallways at First State Savings and Loan where he had been employed since graduating from SUNY with a degree in accounting twenty four years ago.

His large ears accentuated the oddish look, not entirely out of place on the subways at New York rush hour. His loyalty to First State was known throughout the financial departments; he was almost a fixture. His accounting skills were extremely strong, even remarkable if you will, but his personality and appearance, and that preposterous cartoon voice, held him back from advancing up the official corporate ladder.

Now, though, Hugh Sidneys was scared.

He needed to do something . . .and having never been in this kind of predicament before . . .he thought about the lawyer . . .hiring one like he told that reporter . . .but could he afford that . . .and he wasn't sure what to do . . .was he in trouble? Yes, he was . . .he knew that. That reporter . . .he sounded like he understood . . .maybe he could help . . .he was just asking questions . . .what was his name . . .?

"Ah, Mr. Mason?" Scott heard the timid man's Road Runner voice spoke gently over the phone. Scott had just returned to his desk from Higgins' office. It was after 6P.M. and time to catch a train back home to Westchester.

"This is Scott Mason."

"Do you remember me?"

Scott recognized the voice immediately but said nothing.

"We spoke earlier about First State, and I just . . .ah . . .wanted to . . .ah . . .apologize . . .for the way I acted."

Scott's confirmation. Hugh Sidneys, the Pee Wee Herman sounding beancounter from First State. What did he want?

"Yes, of course, Mr. Sidneys. How can I help you?" He opened his notebook. He had just had his story nixed and he was ready to go home. But Sidneys . . .maybe . . .

"It's just that, well, I'm nervous about this . . ."

"No need to apologize, Hugh." Scott smiled into the phone to convey sincerity. "I understand, it happens all the time. What can I do for you tonight?"

"Well, I, ah, thought that we might, maybe you could, well I don't know about help, help, it's so much and I didn't really know, no I shouldn't have called . . .I'm sorry . . ." The pitch of Sidneys' voice rose as rambled on.

"Wait! Don't hang up. Mr. Sidneys. Mr. Sidneys?"

"Yes," the whisper came over the earpiece.

"Is there something wrong . . .are you all right?" The fear, the sound of fear that every good reporter is attuned to came over loud and clear. This man was terrified.

"Yes, I'm OK, so far."

"Good. Now, tell me, what's wrong. Slowly and calmly." He eased Sidneys off his panic perch.

Scott heard Sidneys compose himself and gather up the nerve to speak.

"Isn't there some sorta rule," he stuttered, "a law, that says if I talk to you, you're a reporter, and if I say that I don't want you to tell anybody, then you can't?" Sidneys was scared, but wanted to talk to someone. Maybe this was the time for Scott to back off a little. He stretched out and put his feet up on his desk, making him feel and sound more relaxed, less pressured. According to Scott, he generated more Alpha waves in his brain and if wanted to convey calm on the phone, he merely had to assume the position.

"That's called off the record, Hugh. And it's not a law." Scott was amused at the naivete that Hugh Sidneys showed. "It's a gentleman's agreement, a code of ethics in journalism. You can be off the record, on the record, or for background, not for attribution, for confirmation, there's a whole bunch of 'em." Scott realized that Hugh knew nothing about the press so he explained the options slowly. "Which one would you like?" Scott wanted it to seem that Sidneys was in control and making the rules.

"How about we just talk, and you tell me what I should do . . .what you think . . .and . . .I don't want anything in the paper. You have one for that?" Hugh was feeling easier on the phone with Scott.

"Sure do. We'll just call it off the record for now. Everything you tell me, I promise not to use it without your permission. Will that do?" Scott smiled broadly. If you speak loudly with a big smile on your face, people on the other end of the phone think you're honest and that you mean what you say. That's how game show hosts do it.

"OK." Scott heard Sidneys inhale deeply. "Those papers you say you have? Remember?"

"Sure do. Got them right here." Scott patted them on his clut- tered desk.

"Well, you can't have them. Or you shouldn't have them. I mean it's impossible." Hugh was getting nervous again. His voice nearly squeaked.

"Hugh, I do have them, and you all but confirmed that for me yesterday. A weak confirmation, but I think you know more than you let on . . ."

"Mr. Mason . . ."

"Please, call me Scott!"

"OK . . .Scott. What I'm trying to say is that what you say you have, you can't have cause it never existed."

"What do you mean never existed?" Scott was confused, terribly confused all of sudden. He raised his voice. "Listen, I have reams of paper here that say someone at First State is a big crook. Then you say, 'sure it's real' and now you don't. What's your game, Mister?" Playing good-cop bad-cop alone was diffi- cult, but a little pressure may bring this guy down to reality.

"Obviously you have them, that's not the point." Sidneys reacted submissively to Scott's ersatz domineering personality. "The only place that those figures ever existed was in my mind and in my computer. I never made a printout. They were never put on paper." Hugh said resolutely.

Scott's mind whirred. Something is wrong with this picture. He has papers that were never printed, or so says a guy whose sta- bility is currently in question. The contents would have far reaching effects on the S&L issue. A highly visible tip of the iceberg. McMillan, involved in that kind of thing? Never, not Mr. Clean. What was Sidneys getting at?

"Mr. Sidneys . . .Hugh . . .do you have time to have a cup of coffee somewhere. It might be easier if we sat face to face. Get to know each other."

Rosie's Diner was one of the better Greasy Spoons near the Hudson River docks on Manhattan's West Side. The silver interior and exterior was not a cliche when this diner was built. Rosie, all 280 pounds of her, kept the UPS truckers coming back for over thirty years. A lot of the staff at the paper ate here, too. For the best tasting cholesterol in New York, saturated fats, bacon and sausage grease flavored starches, Rosie's was the place. Once a month at Rosie's would guarantee a reading of over 300.

Scott recognized Hugh from a distance. No one came in there dressed. Had to be an accountant. Hugh hugged his briefcase while nervously looking around the diner. Scott called the short pale man over to the faded white formica and dull chrome booth. Hugh ordered a glass of water, while Scott tried to make a light dinner of it.

"So, Hugh, please continue with what you were telling me on the phone." Scott tried to sound empathetic.

"It's like I said, I don't know how you got them or they found out. It's impossible." The voice was uncannily like Pebbles Flintstone in person.

"Who found out? Does someone else know . . .?"

"OK," Hugh sighed. "I work for First State, right? I work right with McMillan although nobody except a few people know it. They think I do market analysis and research. What I'm really doing is helping shelter money in offshore investment accounts. There are some tax benefits, I'm not a tax accountant so I don't know the reasons, but I manage the offshore investments."

"Did you think that was illegal?"

"Only a little. Until recently that is."

"Sorry, continue." Scott nibbled from the sandwich on his plate.

"Well there was only one set of books to track the offshore investments. They wanted them to be kept secret for various reasons. McMillan and the others made the deals, not me. I just moved the money for them." Again Hugh was feeling paranoid.

"Hugh, you moved some money around illegally, maybe. So what? What's the big deal?" Scott gulped some hot black coffee to chase the pastrami that almost went down the wrong pipe.

Sidneys continued after sipping his water and wetting his lips. "Four days ago I got this call, from some Englishman who I'd never spoken to before. He said he has all the same figures and facts you said you have. He starts reading enough to me and I know he's got what he says he got. Then he says he wants me to cooperate or he'll go public with everything and blow it right out of the water." Hugh was perspiring with tension. His fists were clenched and knuckles white.

"And then, I called you and you came unglued. Right?" Scott was trying to emotionally console Hugh, at least enough to get some- thing more. "Do you think you were being blackmailed? Did he, the English guy, demand anything? Money? Bribes? Sex?" Scott grinned. Hugh obviously did not appreciate the attempt at levi- ty.

"No, nothing. He just said that I would hear from him shortly. That was it. Then, nothing, until you called. Then I figured I missed his call." Hugh was working himself into another nervous frenzy.

"Did he threaten you?"

"No. Not directly. Just said that it would be in my best inter- est to cooperate."

"What did you say?"

"What could I say? I mumbled something about doing nothing wrong but he said that didn't matter and I would be blamed for every- thing and that he could prove it."

"Could he prove it?" Hugh was scribbling furiously in his note- book.

"If he had the files in my computer I guess I would look pretty guilty, but there's no way anyone could get in there. I'm the only one, other than McMillan who can get at that stuff. It's always been a big secret. We don't even make any printouts of it. It's never on paper, just in the computer." Hugh fell back in the thinly stuffed torn red Naugahyde bench seat and gulped from his water glass.

Scott shook his head as he scanned the notes he had been making. This didn't make any sense at all. Here was this little nerdy man, with a convoluted tale of embezzlement and blackmail, off shore money and he was scared. "Hugh," Scott began slowly. "Let me see if I've got this right. You were part of a scheme to shift investments overseas, falsify reports, yet the investments always made a reasonable return in investment." Hugh nodded in agreement silently.

"Then, after how many, eight years of this, creating a secret little world that only you and McMillan know about . . ."

"A few others knew, I have the names, but only McMillan could get the information from the computer. No one else could. I set it up that way on purpose." Hugh interrupted.

"OK, then you receive a call from some Englishman who says he's got the numbers you say are so safe and then I get a copy. And the numbers agree with the results that First State reported. Is that about it?" Scott asked, almost mocking the apparent absurd- ity.

"Yeah, that's it. That's what happened." Hugh Sidneys was such a meek man.

"That leaves me with a couple of possible conclusions. One, you got yourself in over your head, finally decided to cut your losses and make up this incredible story. Maybe make a deal with the cops or the Feds and try to be hero. Maybe you're the embezzler and want out before it's too late. Born again bean- counter. It's a real possibility." Hugh's face grimaced; no, that's not what happened, it's just as I told you. "Or, two, McMillan is behind the disclosures and is now effec- tively sabotaging his own plans. For what reasons I could hardly venture a guess now. But, if what you are saying is true, it's either you or McMillan." Scott liked the analysis. It was sound and took into account all available information, omitting any speculation.

"Then why would someone want to threaten me?

"Either you never got the call," the implication was obvious, "or McMillan is trying, quite effectively to spook you." Scott put a few dollars on the table next to the check.

"That's it? You won't say anything, will you? You promised!"Hugh leaned into Scott, very close.

Scott consoled Hugh with a pat on his wrinkled suit sleeve. "Not without speaking to you first. No, that wouldn't be cricket. Don't worry, I'll call you in a couple of days."

His editor, Doug McGuire agreed that Scott should keep on it. There might be a story there, somewhere. Go find it. But don't forget about the viruses.

* * * * *

The headline of the National Expos, a weekly tabloid caughtScott's attention on his way home that evening in Grand CentralStation.

EXCLUSIVE! S&L RIP OFF EXPOSED!

Scott's entire story, the one he wasn't permitted to print was being read by millions of mid-American supermarket shopping housewives. In its typically sensationalistic manner, the arti- cle claimed that the Expose was in exclusive possession of documents that proved McMillan was stealing 10's of millions from First State S&L. It even printed a fuzzy picture of the same papers that Scott had received. How the hell?

****************************************************************

Thursday, September 10Houston, Texas.

Angela Steinem dialed extension 4343, Network Administration for MIS at the Treadline Oil Company in Houston, Texas. It rang three times before Joan Appleby answered. Joan was the daytime network administrator for Building 4. Hundreds of IBM personal computers were connected together so they could share information over a Novell local area network.

"Joan, I don't bug you much, right?" Angela said hesitantly.

"Angela, how about a good morning girl?" They were good friends outside of work but had very little business contact.

"Sorry, mornin'. Joan, I gotta problem."

"What's troubling ya hon." Joan Texas spoke with a distinctTexas twang.

"A little bird just ate my computer."

"Well, then I guess I'd be lookin' out for Big Bird's data dump."Joan laughed in appreciation of the comedy.

"No really. A little bird flew all over my computer and ate up all the letters and words on the screen. Seriously."

"Y'all are putting me on, right?" Maggie's voice lilted.

"No. No, I'm serious. It was like a simple video game, Pac-Man or something, ate up the screen. I couldn't get it to come back so I turned my computer off and now it won't do anything. All it says is COMMAND.COM cannot be found. Now, what the hell does that mean."

Joan Appleby now took Angela seriously. "It may mean that we have some mighty sick computers. I'll be right there."

By the end of work, the Treadline Oil Company was essentially at a standstill. Over 4,000 of their internal microcomputers, mainly IBM and Compaq's were out of commission. The virus had successfully struck.

Angela Steinem and her technicians shut down the more than 50 local area networks and gateways that connected the various business units. They contacted the National Computer Virus Association in San Mateo, California, NIST's National Computer Center Laboratories and a dozen or so other watchdog groups who monitor computer viruses.

This was a new virus. No one had seen it before. Sorry, they said. If you can send us you hard disk, we may be able find out what's going on . . .otherwise, your best bet is to dismantle the entire computer system, all 4,000 plus of them, and start from scratch.

Angela informed the Vice President of Information Systems that it would be at least a week, maybe ten days before Treadline would be fully operational again.

Mary Wallstone, secretary to Larry Gompers, Junior democratic representative from South Carolina was stymied.

Every morning between 7:30 and 8:00 AM she opened her boss's office and made coffee. Most mornings she brought in Dunkin' Donuts. It was the only way she knew to insure that her weight would never ebb below 200 pounds. Her pleasant silken skin did not match the plumpness below. At 28 she should have known that meeting Washington's best and brightest required a more slender physique.

This morning she jovially sat down at her Apple Macintosh comput- er with 3 creme filled donuts and a mug of black coffee with 4 sugars. She turned on the power switch and waited as the hour- glass icon indicated that the computer was booting. It was going through its self diagnostics as it did every time power was applied.

Normally, after a few seconds, the Mac would come alive and the screen would display a wide range of options from which she could select. Mary would watch the procedure carefully each time - she was an efficient secretary.

This time, however, the screen displayed a new message, one she had not seen in the nine months she had worked as Congressman Gompers' front line.

As she was trained, she heeded her computer's instructions. She watched and waited as the computer's hard disk whirred and buzzed. She wasn't familiar with the message, but it sounded quite official, and after all, the computer is always right.

And she waited. Some few seconds, she thought, as she dove into her second donut. And she waited through the third donut and another mug of too sweet coffee.

She waited nearly a half an hour, trying to oblige the instruc- tions from the technocratic box on her desk. The Mac continued to work, so she thought, but the screen didn't budge from it's warning message.

What the hell, this has taken long enough. What harm can it cause if . . .

She turned the power switch off and then back on. Nothing.

The computer did absolutely nothing. The power light was on, the disk light was on, but the screen was as blank as a dead televi- sion set.

Mary called Violet Beecham, a co worker in another office down the hall.

"'Morning Vi. Mary."

Violet sounded agitated. "Yeah, Mare, what is it?"

"I'm being a dumb bunny and need a hand with my computer. Got a sec?" Mary's sweetness oozed over the phone.

"You, too? You're having trouble? My computer's as dead as a doornail. Won't do anything. I mean nothing." Violet was frustrated as all get out and the concern communicated to Mary.

"Dead? Vi, mine is dead too. What happened to yours?"

"Damned if I know. It was doing some self check or something, seemed to take forever and then . . .nothing. What about yours?"

"Same thing. Have you called MIS yet?"

"Not yet, but I'm getting ready to. I never did trust these things. Give me a typewriter any day."

"Sure Vi. I'll call you right back."

Mary looked up the number for MIS Services, the technical magi- cians in the basement who keep the 3100 Congressional computers alive.

"Dave here, can I help you?" The voice spoke quickly and indif- ferently.

"Mary Wallstone, in Gompers office. My computer seems to be having a little problem . . ." Mary tried to treat the problem lightly.

"You and half of Congress. Listen . . .is it Mary? This morning is going to be a slow one. My best guess is that over 2500 com- puters died a quick death. And you know what that mean."

"No, I don't…" Mary said hesitantly.

"It means a Big Mac Attack."

"A what?"

"Big Mac, it's a computer virus. We thought that Virus-Stop software would stop it, but I guess there's a new strain out there. Congress is going to be ordering a lot of typewriters and legal pads for a while."

"You mean you can't fix it? This virus?"

"Listen, it's like getting the flu. Once you got it, you got it. You can't pretend you aren't sick. Somebody took a good shot at Congress and well . . .they won. We're gonna be down for a while. Couple of weeks at least. Look, good luck, but I gotta go." Dave hung up.

Mary ate the other three donuts intended for her boss as she sat idle at her desk wondering if she would have a job now that there were no more computers on Capitol Hill.

* * * * *

CONGRESS CATCHES FLU - LOSES FAT IN PROCESS by Scott Mason, New York City Times

The Congressional Budget Office announced late yesterday that it was requesting over $1 Million in emergency funding to counter a devastating failure of Congress's computers.

Most of the computers used by both Senators and Representatives are Apple Macintosh, but Apple Computer issued a quick statement denying any connection between the massive failures and any production problems in their machines.

The CBO said that until the problems were corrected, estimates to take up to four weeks, that certain normal Congressional activi- ties would be halted or severely curtailed. Electronic mail, E- Mail that has saved taxpayers millions, will be unavailable for communications until October at a minimum. Inter-office communi- cations, those that address legislative issues, proposed bills, and amendments have been destroyed and will require ". . .weeks and weeks and weeks of data entry just to get back where we started. This is a disaster."

The culprit is, of course, a computer virus. The question on everyone's mind is, was this virus directed at Congress, or were they merely an anonymous and unfortunate victim?

I have an IBM PC clone at home. Technically it's an AT with a hard disk, so I'm not sure if that's an XT, and AXT, an XAT, an ATX or . . .well whatever. I use it to write a lot of my stories and then I can send the story to the computer at work for an overdiligent editor to make it fit within my allotted space.

It never occurred to me that a computer could get sick.

I am, as we all are, used to our 'TV going on the Fritz', or 'Blowing a Fuse'. It seems like a lot of things blow: a gasket blows, a light bulb blows, a tire blows or blows out, the wind blows. I am sure that Thomas W. Crapper, the 19th century inven- tor of the flush toilet would not be pleased that in 1988 man has toasters and other cooking devices that 'crap out'. The Phone Company 'screws up', the stock market 'goes to hell in a handbas- ket' and VCR's 'work for s__t'.

It never occurred to me that a computer could get sick.

Computers are supposed to 'crash'. That means that either Aunt Tillie can't find the ON switch or her cat knocked it on the floor. Computers have 'fatal errors' which obviously means that they died and deserve a proper burial.

It never occurred to me that a computer could get sick.

In the last few weeks there have been a lot of stories about computers across the country getting ill. Sick, having the flu, breathing difficulty, getting rashes, itching, scratching them- selves . . .otherwise having a miserable time.

Let's look at the medical analogy to the dreaded computer virus that indiscriminately attacks and destroys any computer with which it comes in contact.

Somewhere in the depths of the countryside of the People's Republic of China, a naturally mutated submicroscopic microbe has the nerve to be aerodynamically transferred to the smoggy air of Taiwan. Upon landing in Taipei, the microbe attaches itself to an impoverished octogenarian who lives in an overpopulated 1 room apartment over a fish store.

The microbe works its way into this guy's blood stream, unbek- nownst to him, and in a few days, he's sicker than a dog. But this microbe is smart, real smart. It has heard of antibiotics, and in the spirit of true Darwinism, it replicates itself before being killed off with a strengthened immunity. So, the microbe copies itself and when Kimmy Chen shakes hands with his custom- ers, some of them are lucky enough to receive an exact duplicate, clone if you will, of his microbe. Then they too, get ill.

The microbe thus propagates its species until the entire East Coast of the US has billions and trillions of identical microbes costing our fragile economy untold millions of dollars in sick pay.

However, the microbe is only so smart. After a while, the mi- crobe mutates itself into a benign chemical compound that no longer can copy itself and the influenza epidemic is over. Until next year when Asian Flu B shows up and the process begins all over again. (The same group of extremists who believe that the Tri-Lateral commission runs the world and Queen Elizabeth and Henry Kissinger are partners in the heroine trade think the AMA is behind all modern flu epidemics. No comment.)

The point of all of this diatribe is that computers can get sick too. With a virus.

Don't worry, mom. Your computer can't give you the flu anymore than your fish can get feline leukemia.

It all started years ago, before Wozniak and Apple and the PC.

Before personal computers there were mainframes; huge room sized computers to crunch on numbers. One day, years ago, Joe, (that's not a real name, it's changed to protect him) decided it would be great fun to play a prank on Bill, another programmer who worked at a big university. Joe wrote a little program that he put into Bill's big computer. Every time Bill typed the word 'ME' on his keyboard, the computer would take over. His video screen would fill up with the word 'YOU', repeating itself hundreds and thou- sands of times. Bill's computer would become useless.

That was called a practical joke to computer programmers. Joe and Bill both got a laugh out of it, and no harm was done. Then Bill decided to get back at Joe. He put a small program into Joe's big computer. Every day at precisely 3:00 P.M., a message appeared: 'Do Not Pass GO!'.

It was all good fun and became a personal challenge to Joe andBill to see how they could annoy each other.

Word spread about the new game. Other graduate students at theuniversity got involved and soon computer folks at Cal Tech, MIT,Carnegie Mellon, Stanford and elsewhere got onto the bandwagon.Thus was born the world's first computer disease, the virus.

This is Scott Mason. Using a typewriter.

* * * * *

November, 3 Years AgoSunnyvale, California.

When Data Graphics Inc. went public in 1987, President and found- er Pierre Troubleaux, a nationalized American born in Paris momentarily forgot that he had sold his soul to achieve his success. The company, to the financial community known as DGI, was on the road to being in as much favor as Lotus or Microsoft. Annual sales of $300 Million with a pre-tax bottom line of over $55 Million were cause celebre on Wall Street. The first public issues raised over $200 Million for less than 20% of the common stock. With a book value in excess of $1 Billion, preparation for a second offering began immediately after the first sold out in 2 hours.

The offering made Pierre Troubleaux, at 29, a rich man; a very rich man. He netted almost $20 Million in cash and another $100 Million in options over 5 years. No one objected. He had earned it. DGI was the pearl of the computer industry in a time of shake ups and shake outs. Raging profits, unbridled growth, phenomenal market penetration and superb management.

Perhaps the most unique feature of DGI, other than its Presi- dent's deal with the devil, was that it was a one product compa- ny. DGI was somewhat like Microsoft in that they both got rich and famous on one product. While Microsoft branched out from DOS into other product areas, DGI elected to remain a 1 product company and merely make flavors of its products available for other companies which then private labeled them under their own names.

Their software product was dubbed dGraph, a marketing abbreviated term for data-Graphics. Simply put, dGraph let users, especially novices, run their computers with pictures and icons instead of complex commands that must be remembered and typed. dGraph theoretically made IBM computers as easy to use as a Macintosh. Or, the computer could be trained to follow instructions in plain English. It was a significant breakthrough for the industry.

DGraph was so easy to use, and so powerful in its abilities that it was virtually an instant success. Almost every computer manufacturer offered dGraph as part of its standard fare. Just as a computer needed DOS to function, it was viewed that you needed dGraph before you even loaded the first program. Operat- ing without dGraph was considered archaic. "You don't have dGraph?" "How can you use your computer without dGraph?" "I couldn't live without dGraph." "I'd be lost without dGraph."

The ubiquitous non-technical secretaries especially loved dGraph.DGraph was taught at schools such as Katherine Gibbs and Secre-Temps who insisted that all its girls were fluent in its ad-vanced uses. You just can't run a office without it!

As much as anything in the computer industry is, dGraph was a standard. Pierre Troubleaux was unfortunately under the misim- pression that the success for DGI was his and his alone and that he too was a standard . . .a fixture. The press and computers experts portrayed to the public that he was the company's singu- lar genius, with remarkable technical aptitude to see "beyond the problem to the solution . . .".

The official DGI biography of Pierre Troubleaux, upon close examination, reads like that of an inflated resume by a person applying for a position totally outside his field of expertise. Completely unsuited for the job. But the media hype had rele- gated that minor inconsistency to old news.

In reality Troubleaux was a musician. He was an accomplished pianist who also played another twenty instruments, very, very well. By the age of ten he was considered something of a prodigy and his parents decided that they would move from Paris to New York, the United States, for proper schooling. Pierre's scholar- ships at Julliard made the decision even easier.

Over the years Pierre excelled in performances and was critically acclaimed as having a magnificent future where he could call the shots. As a performer or composer. But Pierre had other ideas. He was rapt in the study of the theory of music. How notes related to each other. How scales related to each other. What made certain atonalities subjectively pleasing yet others com- pletely offensive. He explored the relationships between Eastern polyphonic scales and the Western twelve note scale. Discord, harmony, melody, emotional responses; these were the true loves of Pierre Troubleaux.

Upon graduation from Julliard he announced, that contrary to his family's belief and desire, he would not seek advanced train- ing. Rather, he would continue his study of musical relationships which by now had become an obsession. There was little expertise in this specific area, so he pursued it alone. He wrote and arranged music only to provide him with enough funds to exist in his pallid Soho loft in downtown Manhattan.

He believed that there was an inherent underlying Natural Law that guided music and musical appreciation. If he could find that Law, he would have the formula for making perfect music every time. With the Law at the crux of all music, and with control over the Law, he ruminated, one could write a musical piece to suit the specific goals of the writer and create the desired effect on the listener. By formula.

In 1980 Pierre struggled to organize the unwieldy amount of data he had accumulated. His collections of interpretive musical analysis filled file cabinets and countless shelves. He relied on his memory to find anything in the reams of paper, and the situation was getting out of control. He needed a solution.

Max Jones was a casual acquaintance that Pierre had met at the Lone Star Cafe on the corner of 13th and 5th Avenue. The Lone Star was a New York fixture, capped with a 60 foot iguana on the roof. They both enjoyed the live country acts that played there. Max played the roll of an Urban Cowboy who had temporarily given up Acid Rock in favor of shit kickin' Southern Rock. Pierre found the musical phenomenon of Country Crossover Music intrigu- ing, so he rationalized that drinking and partying at the Lone Star was a worthwhile endeavor which contributed to his work. That may have been partially true.

Max was a computer jock who worked for one of the Big Eight accounting firms in midtown Manhattan. A complex mixture of com- puter junkie, rock'n'roll aficionado and recreational drug user, Max maintained the integrity of large and small computer systems to pay the bills.

"That means they pretend to pay me and I pretend to work. I don't really do anything productive."

Max was an "ex-hippie who put on shoes to make a living" and a social anarchist at heart. At 27, Max had the rugged look that John Travolta popularized in the 70's but on a rock solid trim six foot five 240 pound frame. He dwarfed Pierre's mere five feet ten inches.

Pierre's classic European good looks and tailored appearance, even in jeans and a T-shirt were a strong contrast to Max's ruddiness. Pierre's jet black hair was side parted and covered most of his ears as it gracefully tickled his shoulders.

Piercing black eyes stared over a prominent Roman nose and thin cheeks which tapered in an almost feminine chin. There was never any confusion, though; no one in their right mind would ever view Pierre as anything but a confirmed and practiced heterosexual. His years of romantic achievements proved it. The remnants of his French rearing created an unidentifiable formal and educated accent; one which held incredible sex appeal to American women.

Max and Pierre sipped at their beers while Max rambled on about how wonderful computers were. They were going to change the world.

"In a few years every one on the planet will have his own comput- er and it will be connected to everyone else's computer. All information will be free and the planet will be a better place to live and so on . . ." Max's technical sermons bordered on reli- gious preaching. He had bought into the beliefs of Steven Jobs, the young charismatic founder and spiritual guiding force behind Apple Computer.

Pierre had heard it before, especially after Max had had a few. His view of a future world with everyone sitting in front of a picture tube playing with numbers and more numbers . . .and then a thought hit him.

"Max . . .Max . . ." Pierre was trying to break into another one of Max's Apple pitches.

"Yeah . . .oh yeah, sorry Amigo. What's that you say?" Max sipped deeply on a long neck Long Star beer.

"These computers you play with . . ."

"Not play, work with. Work with!" He pointed emphatically at nothing in particular.

"OK, work with. Can these computers play, er, work with music?"

Max looked quizzically at Pierre. "Music, sure. You just program it in and out it comes. In fact, the Apple II is the ideal computer to play music. You can add a synthesizer chip and . . ."

"What if I don't know anything about computers?"

"Well, that makes it a little harder, but why doncha let me show you what I mean." Max smiled wide. This was what he loved, playing with computers and talking to people about them. The subject was still a mystery to the majority of people in 1980.

Pierre winced. He realized that if he took up Max on his offer he would be subjected to endless hours of computer war stories and technical esoterica he couldn't care less about. That may be the price though, he thought. I can always stop.

Over the following months they became fast friends as Pierre tutored under Max's guiding hand. Pierre found that the Apple had the ability to handle large amounts of data. With the new program called Visi-Calc, he made large charts of his music and their numbers and examined their relationships.

As Pierre learned more about applying computers to his studies in musical theory, his questions of Max and demands of the Apple became increasingly complex. One night after several beers and a couple of joints Pierre asked Max what he thought was a simple question.

"How can we program the Apple so that it knows what each piece of data means?" he inquired innocently.

"You can't do that, man." Max snorted. "Computers, yes even Apples are stupid. They're just a tool. A shovel doesn't know what kind of dirt it's digging, just that it's digging." He laughed out loud at the thought of a smart shovel.


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