New Solution For Nassau Park Traffic, Post Jughandle

Stethoscope’s Tale: 7 Years to Market

Ford Comes to Town

Protecting Volunteer Boards

Clinical Trials Begun

Deaths

Corrections or additions?

These articles were prepared for the June 9, 2004

issue of U.S. 1 Newspaper. All rights reserved.

Life in the Fast Lane

When employee complaints get noticed by gossip columns, the subject of

company morale goes public. That happened at Bloomberg on Sunday, May

30, when Bloomberg gripes were the lead item for Liz Smith, the

national gossip columnist who is syndicated in the Trenton Times.

Smith noted that one of her cohorts had talked to some disgruntled

employees who were taking their complaints to founder Mike Bloomberg.

When he took office as mayor of New York in 2002, he had put Lex

Fenwick in charge and relinquished control of his company.

"It may give him a tiny tweak of delight to say what I hear he says to

these idiot complainers who want him to mix his public policy posture

with his former business," wrote Smith.

She quoted the mayor as laughing, and saying, "Sorry you’re unhappy.

Nothing I can do about that. And nothing I would want to do about it,

since I understand that Bloomberg is making money and just had one of

the best business quarters in its history.’"

More than 1,200 people work at Bloomberg’s Princeton locations,

including the data center on Business Park Drive, just off Route 518

in Montgomery Township, and the newsroom at 400 College Road.

Some of the people whom Smith labels "idiot complainers" are long-term

employees who are rebelling against current management. Their

diatribes show up on at least two websites, www.vault.com (for

jobseekers) and www.ourbloomberg.com (maintained by a union, the

Newspaper Guild).

Union rumblings stirred in the spring, when reporters and editors on

College Road were told they would be transferred to Manhattan and a

54-story glass skyscraper, now under construction on the block bounded

by 58th and 59th streets and 3rd and Lexington avenues. "All we are

moving is our news room, 125 to 150 people in Princeton," says David

Wachtel, Bloomberg spokesperson. "Our editor-in-chief, Matt Winkler,

feels the news bureau should be close to the markets we cover."

Barry Lipton, president of the Newspaper Guild of America in New York,

confirms the guild is trying to organize Bloomberg, and that it put up

the website in late March. "We have met with a lot of people before

and after that time. This process is not something that happens

overnight." The Newspaper Guild belongs to the 700,000-member

Communications Workers of America. In New York it has 20 contracts and

represents 3,700 employees, including those who work at the New York

Times.

Lipton says that 525 Bloomberg journalists who work in the United

States are eligible to join the union, and that about one-third of

them are based now on College Road. Lipton says he was told that the

chief executive informed them that they must "choose between Bloomberg

and your family and its needs."

"Where there is a union," says Lipton, "you can bargain over the

effects of a move and try to do things to soften the relocation.

Without representation the company doesn’t have any obligation to talk

to you."

The Business Park Drive employees are not the target of union

organization, but on the vault.com website they decry the sudden

departure of Stuart Bell, one of the company’s three earliest

employees. Until several years ago Bell had been in charge of the

Princeton data center, but more recently he was working in New York,

where he reported to Fenwick.

Mike Bloomberg had cited Bell in his 1997 autobiography as being one

of the first on the sales force, "one of the people who joined before

we had much of a business and have stayed through the tough times.

That’s the kind of loyalty that binds us together and earns a mutual

respect that survives to this day."

Bell apparently walked away from his desk last month without fanfare.

The company has no comment on Bell’s departure, and he declines to be

interviewed. Though his house is on the market, he and his wife are

building a new house in the Princeton area.

Some workers fear that Bell’s departure – and the reports that

emphasize profitability – mean the company is being readied for a

sale. The company has no comment.

When a founder leaves, no matter well he has delegated, people look to

see if the organization will run as well as before. Company dynamics

change. And many of those writing diatribes on the websites seem to

believe that things changed for the worse since Mike Bloomberg’s move

from business to politics.

Prior to founding his company, he had been general partner at Salomon

Brothers, where he headed equity trading, sales, and systems

development. In 1981 he founded his eponymous online network, a

service with data, analytics, electronic trading, and straight-through

processing tools on a desktop terminal called the Bloomberg. Bloomberg

News, including the radio and television networks, was created as a

value-added service for owners of the terminals. Now 1,600 reporters

worldwide in 94 bureaus write more than 4,000 news stories daily.

But change is good, according to what Bloomberg told Inc. Magazine in

October, 2001. Three years ago, he said, he had ousted nine top

managers from their jobs, appointed deputies in their place, and told

them to work elsewhere for two months.

"From the moment people start a new job, two things happen: they

acquire experience, and they get increasingly jaded. When you move

people around, they take the experience with them, but they start from

scratch in the jaded arena," said Bloomberg in the Inc. interview.

"Yes, it’s true that the new people don’t know as much as the people

they’re replacing," said Bloomberg. "But the reverse is also true: the

new people are just at the beginning of their learning curve. And

generally – not always, but most times – they go blasting right

through where their predecessors were and move on to higher levels the

company would never have achieved otherwise."

"It’s easier in a small company," said Bloomberg. "You have fewer

people to move. And the management typically is more direct. It’s more

focused on the bottom line. The great danger in a small company is

that you become overly dependent on one or two people. And that’s all

the more reason to move them around."

As a result of this two-month management exercise, Lex Fenwick

suggested that the company should eliminate his job. Fenwick, who had

been recruited by Bell, had been in the London office in charge of

European operations. Bloomberg was impressed and made Fenwick the

company’s chief operating officer during the mayoral campaign, and

Fenwick is now the top executive.

"I watched what he did in London. More of the innovation in this

company was coming out of the London office than from the New York

office," said Bloomberg in the Inc. interview. He believed Fenwick

would preserve Bloomberg’s culture. "I think he’ll make our culture

even more unique."

But Bloomberg demonstrated a feeling of responsibility for his

workers: "I’ve got 7,900 employees. I have an obligation to those

people. They need to know that we have young, innovative management

looking out for their careers."

Perhaps it is this protective attitude that the employees miss today.

— Barbara Fox

Top Of Page
New Solution For Nassau Park Traffic, Post Jughandle

Taking out the traffic signal at Nassau Park Boulevard might help the

bottleneck on Route 1 North, but it did not solve the problem of how

to get northbound shoppers into the mall. The New Jersey Department of

Transportation has announced the second part of its plan: It will

provide another way for northbound shoppers to enter the big box mall.

"By taking out this jughandle, we are actually taking away half of the

cars that are going into the shopping center, going northbound," says

John Lettiere, head of the NJDOT. "We had to figure out how to get

that volume of cars, which can no longer use the jughandle, back into

the shopping area. One way is to go to the back."

Already underway, the $2.4 million project will create a new frontage

road to run parallel to three lanes of Route 1 North. Similar to the

frontage road along Route 1 near MarketFair, it will allow a free flow

of slower-going traffic from Route 1 into the back entrance of the

shopping center from Quakerbridge Road near Province Line Road. The

project is slated to be finished by early November.

"We’re not taking any property," says Lettiere. "We’re redesigning

things in the background that will allow for better movement behind

this shopping area." He says that business owners will not foot any of

the costs and are generally supportive of the project.

The bottleneck at Nassau Park creates a particularly dangerous

situation for morning commuters because traffic heading for Route 1

North backs up all the way to I-95. Drivers going in excess of 60

miles-per-hour quickly encounter cars, at a dead stop, lined up to

make their exit. With the Nassau Park light gone, the first traffic

signal that northbound motorists will encounter is at Carnegie

Boulevard.

Lettiere admits that some motorists will not immediately embrace the

plan. "Is it a longer ride? Yes, in distance, of course, because you

are coming in the back rather than going in the front," says Lettiere.

"But you don’t have to stop for a signal either."

Southbound Route 1 traffic will still be able to enter the shopping

center by making a right-hand turn, but drivers exiting the shopping

center onto Route 1 will only be able to travel south.

The project will take place in three segments. In June and July the

traffic signals at the current back entrance of the shopping center

(on Nassau Park Boulevard and Quakerbridge Road) will be synchronized

with the traffic signals within the shopping center. This will allow

for better traffic flow from the intersection. "The traffic volume is

too heavy already for a helter-skelter of traffic signals," says

Lettiere. Also, utility, curb, and deceleration lane changes will be

created on Route 1 North near Quakerbridge Mall to ease the movement

of vehicles in the right lane.

In August and September the new frontage roadway will be installed

alongside Route 1 North. Also, work crews will modify ramps that carry

motorists through the Route 1 North and Quakerbridge Road

intersection. While no lanes on Route 1 will be closed, the ramps may

be closed briefly during non-rush hours.

October and November will see the lengthening of the deceleration lane

on the exit ramp from I-95 North to Route 1. Also, the Route 1 and

Quakerbridge Road interchange will be repaved.

"The closing of the jughandle will be the last thing that will be

done, because we have to provide all these other aspects in order to

take out the jughandle," says Lettiere. "After we put in the frontage

road, do some paving work and regrading of the ramps, once all that is

finished, then we can take the light out. Not until that time,

otherwise folks will have a hard time getting into the shopping area."

Throughout the construction, the impact on Route 1 traffic is expected

to be negligible. "Right now we are moving some utilities out of the

way, which will impede traffic a bit, but that will be done fairly

quickly," says Lettiere. "Once we are done moving the utilities we

will be maintaining three lanes of traffic, so all this work won’t

interfere with traffic."

Weekday work hours will be from 9 a.m. to 3:30 p.m. and any required

lane closures will take place during that time or at night. Weekend

work may also be necessary. Motorists are being asked to follow the

safety and directional messages on the variable message signs (VMS)

along Route 1 and on I-295 and I-95. Information will also be

available at www.state.nj.us/transportation, www.njcommuter.com, and

njdot.nj.gov.

The DOT has planned a massive public awareness campaign, distributing

fliers at affected malls and shopping centers, mailings to residents

from surrounding communities, and installing in-store displays

alerting shoppers. "The communications piece of this is really the

important part," says Lettiere. "We want to make sure that we reach

not only commuters who use Route 1 every day, but the shoppers who use

these shopping centers, especially on the weekends."

Although the DOT has been aware that there has been a problem at the

Nassau Park Boulevard jughandle and Route 1 for the past five years,

Lettiere says that it has taken this long to come up with a workable

solution. "It’s been very controversial, but I think it will make

folks happy," he says. "It will be safer. There will be a little

better free flow of traffic. There won’t be people backed up out on

the interstate. Motorists can still get in and out of the shopping

area more safely."

And what if the actual project works better on paper than it does in

reality? "If we have to tweak anything once the project gets in, we’re

going to do that," says Lettiere. "We have to make sure that the

traffic synchronization is correct. We’re going to have a lot of

signage and make sure that we separate the traffic. If we find it is

not adequate or we have to make changes, we will do that."

-Jack Florek

Top Of Page
Stethoscope’s Tale: 7 Years to Market

Zargis, a company being incubated at the Siemens Corporate Research

facility on College Road, has received Food and Drug Administration

approval to market the first computer-aided stethoscope, a medical

device to support physicians in analyzing heart sounds for the

identification of suspected murmurs, a potential sign of heart

disease. The product, called Zargis Acoustic Cardioscan, took seven

years to develop.

Cardioscan has its roots in an invention by Raymond Watrous, a Siemens

scientist who founded a company called Sound Diagnostics (U.S. 1, May

11, 2001). At that time both Siemens Corporate Research Inc., a

subsidiary of Siemens Corporation, and Speedus.com (www.speedus.com)

had a stake in the company, and Speedus now has a majority share.

"It’s been seven years since we started on this project, and we have

had an excellent team working on it and excellent clinical

collaborators," says Watrous, chief technology officer at Zargis. "A

lot of people have contributed to this accomplishment. We are looking

forward to introducing this product to physicians."

If Cardioscan can identify valvular heart disease that might otherwise

go undetected, yet improve the recognition of innocent heart murmurs,

it could reduce the number of unnecessary referrals for more expensive

diagnostic evaluations.

It consists of a laptop loaded with Zargis software and an electronic

stethoscope that is manufactured in Texas. It amplifies the heart

sounds and provides an output that can be used to store the heart

sounds in a computer where it can be printed or played back. It gives

the physician a baseline and a way to detect and track changes over

time. "We leverage that with some powerful signal processing

algorithms to identify the heart murmurs," says Watrous.

Clinical studies proved that Cardioscan can detect heart murmurs with

a sensitivity of 91.8 percent and a specificity of 68.0 percent. This

far exceeds the average hospital physician’s score. An American

Medical Association study showed that internal medicine and family

practice physician residents could identify heart murmurs at rate of

about 20 percent.

"Zargis is the only company that has been able to achieve this

significant milestone, which demonstrates our outstanding technical

expertise and core competency in this clinically important field,"

says Hejazi.

Zargis Medical Corp., 755 College Road East, Princeton

08540. Shahram Hejazi, president and CEO. 609-734-6510; fax,

609-734-6565. Home page: www.zargis.com

Top Of Page
Ford Comes to Town

Ford Motor Company is closing its New York Parts Distribution Center

in Teterboro and opening three distribution centers, including one in

300,000 square feet at Corporate Park Cranbury, 280 Prospect Plains

Road. About 140 people will work there. The first hourly employees

will report for training in early August, and they will work nearly

round the clock, with shifts starting at 7 a.m. and 5:30 p.m.

Steven Spinweber represented the Parsippany-based developer, the

Sudler Companies, in a lease valued at more than $13.5 million.

Greenfield Builders is in the final stages of construction of the

prefab concrete building, and it is expected to open in October.

Overall, Ford has split eight warehouses into 21 locations. Until

January, the 600,000 square foot Teterboro location was sending parts

to the entire east coast. That territory was split three ways, and

distribution centers have already opened in Hartford, Connecticut, and

Winchester, Virginia. "The new center will enable us to provide daily

delivery service to more 480 dealers in an area ranging from Maryland

and Philadelphia north to almost all of New York state," says William

E. Stewart, the PDC manager. "We wanted to be closer to our dealers

and provide daily service. Now they can order on Monday afternoon and

have parts delivered on Tuesday."

The Cranbury distribution center will carry 35,000 of the more than

200,000 parts required by Ford, Lincoln, and Mercury, and the rest

will be shipped from Livonia, Michigan. Other Ford-owned companies,

such as Volvo, Jaguar, and Mazda, have their own distribution center.

This warehouse is one-third the size of the new Volkswagen facility on

Station Road in Cranbury, but Stewart says that smaller warehouses

actually reduce the technology needed. "We have simplified our system

by taking the conveyor systems out. The system we have now is driven

to meet critical delivery times. Most of the picking of very small

parts is in 20 minute increments, and it is easier to do without the

mechanization we used to have."

Ford can be counted on to be active in the community (making

appropriate charity contributions) but this facility is not

necessarily a good place to apply for jobs that pay about $25 an hour.

"Our hiring needs are undetermined," says Stewart. "We have an older,

experienced work force, many with more than 30 years service, and many

will decide to retire rather than make the drive."

Laid-off employees from Ford’s plant in Edison would have priority, as

would those who had worked at the Teterboro plant before it was split

between New Jersey, West Virginia, and Connecticut. "The prospect of

anyone being hired, other than on a temporary basis for the summer, is

somewhat nil."

Stewart grew up in Missouri and Iowa and majored in finance and

accounting at the University of Iowa, Class of 1973. He went to work

for Ford that year as a financial analyst in the controller’s office

and earned his MBA from the University of Michigan. In Ford’s customer

service division he has had a variety of jobs, including working at

the Teterboro Parts Distribution Center and managing the PDC in San

Francisco, before returning to Teterboro as the manager. "I have had

all the jobs you can have at PDC except opening a new facility," says

Stewart. He lives at Canal Pointe and will soon be joined by his wife;

they have four grown children.

Ford has sold its 606,000-square-foot building in Teterboro for $32

million to AMB Property Corp., a San Francisco-based real estate

investment trust, and a new tenant has been found. The company already

has another division in Cranbury, the Ford Motor Credit Company, which

has about 20 employees at Interchange Plaza.

"We are very happy to join the Cranbury community. Most of the

employees are very excited about coming to work in a new building,"

says Stewart. "Our current building was built in 1953, and it shows

it. "Based upon past history with these facilities, the customers will

be happy with it."

— Barbara Fox

Ford Parts Distribution Center, 698 Route 46, Teterboro

07608. William E. Stewart, plant manager. 201-288-9400; fax,

201-393-4247. Home page: www.ford.com

Top Of Page
Protecting Volunteer Boards

Individuals with substantial fortunes, and the inclination to give

them away, are nervous. High-profile controversies over the possible

misuse of funds, like the one that swirled around the American Red

Cross after 9-11, and over the possible disregard of a donor’s intent,

like the one that has had trustees of the Barnes Foundation in court,

"send chills down the spines of potential large donors," says Jeffrey

DuFour. A partner in accounting firm Cohen DuFour at 4390 Route 1, he

has just founded the Tillit Group, a company that will certify that

trustees of non-profits are conversant with sound fiscal management.

DuFour was born in Camp Kilmer, where his mother was working as a

dispatcher during the Korean War. His father was in the Coast Guard.

Keeping track of money runs in his family, he says, noting that his

mother told him his birth "only cost her $8."

He is a graduate of Bryant College in Rhode Island (Class of 1976). An

accounting major, he went on to earn his CPA right after graduating.

He started with Elliott Cohen in 1978, when the firm had "six or

seven" employees and was located in New Brunswick. Cohen DuFour has

grown to 13 employees and moved to Route 1 North.

Tillit means trust, and DuFour formed it as a separate entity, he

says, "because I always had an involvement in non-profits, and I saw a

need for more organized practices on the administrative side." In

looking for a framework, he found out that 27 best practices "for

managing money not your own" had just been codified. He became one of

the first people to earn accreditation from the Foundation for

Fiduciary Studies (www.ffstudies.org), a Sewickley, Pennsylvania-based

not-for-profit that develops and promotes practice standards defining

a prudent process for investment fiduciaries.

Tillit, drawing upon the principles of the Foundation for Fiduciary

Studies, is the first company to offer certification to trustees of

non-profits. DuFour expects that most people who will seek this

certification will be volunteer trustees of smaller non-profits. "When

you get into multi-million dollar foundations, you have paid,

professional staff," he says. But legions of smaller non-profits rely

on unpaid trustees. The new company’s niche is non-profits that are

small, but not too small. "We’re looking at non-profits with

endowments," he says.

His research indicates that trustees of these mid-size organizations

often have little financial sophistication. Many, he says, can not

even define "fiduciary." Yet, they are fiduciaries; they are

responsible for the prudent management of funds donated to their

organizations.

"The role of fiduciary is in an oversight capacity," says DuFour. It

is a two-pronged responsibility. "Trustees need to see that assets are

managed in accordance with the law and with written investment

policies," he says, "and they need to know that their organization is

spending in accordance with the trust policies. Spending and

investment work together."

While fiduciaries have to put in place a prudent process for

overseeing funds, they do not have to do the work themselves.

"Delegation is huge," says DuFour. Prudent delegation, in fact, is one

of the most important jobs a trustee has. The director of the

non-profit may be the natural person to handle the money, or at least

to hire an investment firm to do so, but it is important to check his

background. Has he worked in accounting or finance? If not, he may be

the wrong person to carry out this task.

It is also important for trustees to understand at least the basics of

their non-profit’s spending goals, and how those goals fit in with its

investment style. If a steady cash flow of, say, $1 million is

essential, money should be invested in such a way that that amount

will be available year after year – no matter what the stock market

does.

Investing money costs money, but the fees that come with getting a

good return should not eat too far into that return. It is the

trustees’ job to oversee investment costs – or to appoint a

professional to do so. It is also important to make sure that there

are no conflicts of interest between investment advisors and trustees

or officers of the non-profit.

The certification that Tillit is offering to trustees is designed to

educate them on their responsibilities – and how best to carry them

out. But it serves another function, too. It is a tool fundraisers can

use to assure donors that the money they are investing in educating

handicapped children or helping the poorest people in Third World

countries start businesses or curing breast cancer will grow and be

spent in accordance with prudent financial practices.

"It gives donors peace of mind over whether their wishes will be

carried out in 30, 60, or 100 years," says DuFour.

– Kathleen McGinn Spring

Tillit Group LLC, 4390 Route 1, Box 7107, Princeton

08543. Jeffrey D. DuFour. 609-452-8735; fax, 609-243-0118.

www.tillitgroup.com

Top Of Page
Clinical Trials Begun

Barrier Therapeutics, Inc. announced that in May it began enrolling

patients in a Phase III clinical trial for a drug that can treat

seborrheic dermatitis, which causes a red, scaly, itchy rash on the

face, scalp, hairline, eyebrows and trunk.

Seborrheic dermatitis often reoccurs, and it affects from three to

five percent of the U.S. population, or about 8.5 to 14.3 million

people. The current treatments focus on topical ketoconazole creams

and topical steroids and require multiple applications per day over

periods of up to four to six weeks. Barrier’s proposed therapy,

Sebazole, is a waterless gel with an antifungal agent, 2.0 percent

ketoconazole, and it is applied just once a day for a two-week period.

The company hopes it can get results in 28 days, 14 days after the

treatment stops. Its study involves 440 patients at 22 centers in the

United States. The trial will conclude by the end of this year and, if

successful, it will result in a new drug application to the Food and

Drug Administration.

Phase III trials in January, involving more than 900 patients at 50

centers in the United States and Europe, tested two therapies against

a placebo. They were a gel with 2.0 percent ketoconazole plus .05

percent steroid desonide, and gel with only the .05 percent desonide.

After these trials were successful, the FDA requested that Barrier do

a trial with ketoconazole (Sebazole) alone.

"Seborrheic dermatitis can be a severe and chronic disease, making it

difficult for some patients to control long-term," says Barrier’s CEO

Geert Cauwenbergh. "A treatment that would provide long lasting

efficacy, and one which would require only one-fourth the number of

applications as currently available treatments, could constitute a

significant therapeutic advantage in terms of compliance."

Barrier Therapeutics Inc. (BTRX), 600 College Road East,

Suite 3200, Princeton 08540. Geert Cauwenbergh, CEO. 609-945-1200;

fax, 609-945-1212. Www.barriertherpeutics.com

Top Of Page
Deaths

Leighton E. Cluff MD, 80, on April 14. He was the second president of

Robert Wood Johnson Foundation on College Road.

Joan G. Morgan on May 29. She had been credit manager for McLean

Engineering Company.

Winton H. Manning 74, on May 29. Formerly a senior vice president at

ETS, he did research that influenced the U.S. Supreme Court’s 1978

Bakke decision, upholding affirmative action in college admissions.

Richard Switlik Sr., 85, on June 4. He was president of Switlik

Parachute Company, which was founded by his father in 1920.


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