Crosstown Moves

Airport Expands





Name Changes

Out of Business


Corrections or additions?

This article was prepared for the August 15, 2001 edition of U.S.

1 Newspaper. All rights reserved.

Life in the Fast Lane

Nassau Street, Princeton’s "Financial Alley,"

is in flux. Morgan Stanley has completed its move into the storefront

of Gordon Gund’s picturesque headquarters at 14 Nassau Street, and

Merrill Lynch has suddenly decided to leave its long-term space at

194 Nassau Street.

Before Olde Discount Stockbrokers moved out last summer, Morgan


had been calling to get space in the Gund building. It’s a headturner,

a Flemish Revival structure that looks as if it came straight from

Delft. Erected in 1896 to house Princeton Bank and Trust, it


qualifies as a "grandfathered" exception to Princeton


1989 ordinance designed to keep banks and brokerage houses from


downtown. Back then, so many banks and stockbrokers were squeezing

out retail stores that Nassau Street earned that moniker



"Morgan Stanley is certainly a good client and a prestigious


says Noreen Coutin, director of administration at Gund Investment

Corp. Along with the Foundation Fighting Blindness, Gund has 15


at this location, and the building also houses the Witherspoon Art

and Bookstore. A new air conditioning system has been installed, and

Morgan Stanley is already interested in expanding upstairs to the

second or third floors, where architect Jerry Ford, of Ford Farewell

Mills & Gatsch, has redesigned space formerly occupied by architect

Andrew Sheldon. Says Coutin: "We really feel the building is one

of the landmarks on Nassau Street."

There was never a question of Merrill’s putting its retail brokers

into the new "back office" campus in Hopewell, but last year

Merrill was saying its Nassau Street office would not follow the other

retail branches to Princeton Commons at 7 Roszel Road. So the decision

to vacate Nassau Street on September 10 is a surprise to everyone,

particularly since Merrill signed a long-term lease there late last


"I can’t believe that they would give up a hard-found street


in a town that they identify as their corporate headquarters,"

says David Newton, vice president of Palmer Square Management.

Hard found indeed. Even with all the bank mergers, the

"grandfathered" addresses that will allow for financial


are still numbered. Among the few variances that have been granted

from the ordinance is U.S. Trust at 51 Hulfish Street (the less


end of Palmer Square). Quick & Reilly reportedly obtained building

permits at 20 Nassau before anyone realized it was not a gift shop

but a stock brokerage.

Other brokers have unsuccessfully tried to set up shop on Nassau


but ran afoul of the 1989 ordinance. Salomon Smith Barney, for


was turned away from the first floor of the Gershen-owned 182 Nassau.

Salomon reportedly would be interested in the Merrill Lynch space,

but whether Merrill would be willing to sublet its prime space to

an archrival is anybody’s guess.

Newton believes Borough Council could be a little more creative


the downtown. "This ordinance is now an anachronism and is just

another way for the borough to control the process of leasing,"

he says. "The town could be helping the landlords rather than

impeding them."

Newton has his own vacancy problems, which he prefers to consider

as "opportunities." He is losing tenants for two big spaces.

Waverly Home, with 6,000 feet in two stories on Palmer Square, is

going out of business after Christmas, and Gap Kids has moved out

of Hulfish Street.

"It represents an opportunity to strengthen our tenant mix,"

he says. "In Princeton people see one or two vacancies and think

the depression is round the corner. The truth is, vacancy equals


I don’t see the economy as worsening or any real reason to worry."

Morgan Stanley, 14 Nassau Street, Princeton 08540.

Chris Frischman, financial advisor in charge. 609-688-3602; fax


Home page:

Merrill Lynch, 194 Nassau Street, Princeton 08542.

Michael J. Pron, resident manager. 609-924-7600; fax, 609-683-7365.

Home page: After the move to the

fourth floor of 7 Roszel Road on September 10, new telephone numbers

will 609-243-7900; fax, 609-243-7817.

Top Of Page
Crosstown Moves

Merrill Lynch & Co., 103 Morgan Lane, Plainsboro

08536. Anthony Pico, director of accounting services. 609-282-4330;

fax, 609-282-4391.

As part of Merrill Lynch’s migration to its new corporate campus,

the payroll accounting and regulatory reporting functions of Merrill

Lynch have moved from Morgan Lane to Hopewell.

Top Of Page
Airport Expands

The first new airport runway in New Jersey in


years opened on Monday, August 13, at Princeton Airport. "The

state can’t find when the last new runway was in New Jersey,"

says airport president Naomi Nierenberg. "We are all very


She emphasizes that the new longer, wider runway makes the 90-year-old

airport safer for current traffic and does not change the character

of the facility.

The new $6.1 million runway — 400 feet longer and 15-feet wider

— brings the airport up to Federal Aviation Administration


and the old runway will help to alleviate congestion by serving as

a full-length taxiway. Utility wires along Route 206 will be buried

by October, and the airport will also improve its lighting system

and navigational aids.

Ken Nierenberg, airport manager, says the new runway will have better

drainage, heavier weight capacity, better clear area protection, a

precision approach-path indicator, and pilot-operated lights.

The runway bill includes $1.7 million for buying 54 acres of land,

effectively doubling the size of the airport. Costs also included

$3.3 million for construction, design, and administration, $500,000

for a master plan and an environmental study, $400,000 for putting

the utility wires underground, and $200,000 for permits. Of this


90 percent came from the federal Aviation Trust Fund, derived from

taxes on fuel and airline tickets to improve airport safety. The


also benefited from state block grants through the New Jersey Division

of Aeronautics.

Construction was scheduled to be finished in spring of 2000 but there

were problems with the contractor. "Nothing has gone as said,"

says Naomi Nierenberg.

Princeton Airport, Route 206, Princeton 08540.

Naomi Nierenberg, president. 609-921-3100; fax, 609-921-1291.

Top Of Page


Last week a Pennsylvania law firm focusing on class

action lawsuits said it filed a suit against College Road-based ITXC

Corp. on behalf of those who purchased ITXC stock from its 1999


public offering through December 6, 2000. In addition to ITXC, the

suit names the underwriters Lehman Brothers, FleetBoston Robertson

Stephens, and Merrill Lynch. Representing the plaintiffs are Marc

A. Topaz and Stuart L. Berman of Schiffrin & Barroway LLP in Bala

Cynwyd (

Nationwide, shareholder suits against dotcom firms began to


over the last six months. Most have been filed in New York’s Southern

District Court, and few, if any, have been decided.

Just in time, perhaps, Theodore Weitz has joined ITXC as vice


general counsel. A 1968 graduate of Pace, with a law degree from


he has served as legal counsel with Tachion Networks, Intel


Dialogic Corporation, Lucent Technologies Inc., and AT&T. In addition

to securities law, he is also responsible for global legal activities

such as contracts and transactions, employment, mergers and


intellectual property, and litigation.

"A series of lawsuits have been filed against virtually every

company that went public when the market was hot, claiming that


when distributing stock, have either overcharged commissions or


in allegedly improper allocation practices," explains Weitz. This

case is typical, he says, in that the law firm issued a press release

in an attempt to get good "class representatives" to sign


The Schiffrin & Barroway press release encourages stockholders to

apply for the "lead plaintiff" position, claims that the


received "excessive and undisclosed commissions," and that

they made arrangements with their customers to "purchase


ITXC shares in the aftermarket at pre-determined prices." This

practice, known as "laddering," can drive up stock prices.

Further, the complaint faults the prospectus for not sufficiently

revealing this information.

Attorneys at Schiffrin & Barroway declined an interview. The


50-attorney firm focuses exclusively on class action lawsuits filed

on a contingency basis, and one of its successful cases involved Sears

credit cards.

As this story went to press, similar announcements regarding suits

against ITXC were released by Cauley Geller Bowman & Coates of Little

Rock, Arkansas (, and by Wolf Haldenstein Adler

Freeman & Herz. This 60-attorney firm has a multi-focus practice in

five locations (

As an international Internet telephony services carrier, ITXC routes

telephone calls over the Internet, and trade sources say it is now

the seventh largest U.S.-based telephone company selling international

minutes. When it went public at $12 on Nasdaq in late September, 1999,

the stock shot up and by February, 2000, was arguably overvalued at

$118. Hard on the heels of the initial public offering the company

followed Wall Street advice and went back to the market for a


offering in March, 2000, when the stock was $85. That very month,

tech stocks started to decline. By June it was $40 and is under $4

now (U.S. 1, August 8).

"We don’t have anything to respond to until we are served with

a complaint," says Weitz. "The focus does not seem to be the

conduct of the company but rather the practice of the


— Barbara Fox

ITXC Corp. (Internet Telephony Exchange Carrier)


750 College Road East, Princeton 08540. Tom Evslin, CEO. 609-419-1500;

fax, 609-419-1511. Home page:

Top Of Page

Kana Communications (KANA), 305 College Road East,

Princeton 08540. Home page:

Kana Communications has merged with Broadbase Software,

Inc. (BBSW), a provider of Intelligent Customer Interaction solutions,

and though some people are working from home offices, the College

Road office has apparently closed. The merged firm shortened its name

to just plain Kana and trades under the KANA symbol. The former 609

number does not answer, but customer calls are being taken at a call

center in Natick, Massachusetts at 800-737-8738, extension 1. The

corporate headquarters is in Menlo Park, California, at 650-614-8300.

No additional new information was available by press time.

This Princeton office had had two dozen employees in 4,300 feet and

was founded in 1995 by P.V. Kannan and Shanthi Kannan as Business

Evolution Inc. It started out with groupware products such as


software for private interactive meetings on a single server. Though

targeted for business meetings, the software has also been used for

tracking satellites.

In 1999 Kannan sold his business to Kana Communications, an E-commerce

software provider that trades on Nasdaq and had a market value of

nearly $5 billion. He received a reported $140 million in stock for

his 65-person firm. Nassau Capital, one of Princeton University’s

investment companies, was an investor in Business Evolution.

Both Kana and Business Evolution were in the business of turning


browsers into buyers — customer relationship management or CRM.

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Shvartsman’s Shark

The word "Akula" means shark, and the proprietor

of this business, Rex Shvartsman, has bought a corporate van and


the logo of a fierce shark on the side. Though his current work is

largely in the senior citizen community, he has a competitive spirit

and expansion plans for his computer sales and networking business.

He recently moved to a larger office in a storefront on Applegarth


Shvartsman, the son of a Ukrainian engineer who had designed missile

silos, moved to this county in 1976 when he was four. He studied at

Middlesex County College, Rutgers, and DPT Business School in


learning various computer design programs and getting certifications

from Novell and Microsoft. He worked for a Manhattan advertising


Siegel Gale, but wanted to avoid the commute. Now he is very involved

with the senior communities in Monroe Township and does consulting

for computer clubs.

"I supply them with PCs and tech support and lecture as


he says. "My services are almost free, but it works both ways.

It `gets me out there’ and they remember me when they want to buy

a PC. I custom build my own PCs."

A senior citizen’s first computer is often a hand-me-down from


"When they run out of hard drive space, they call me and I sell

them more space," he says. "We want to move into working with

small businesses, mom and pop companies, professional offices, and

nonprofits. We can give them a dedicated network designed for their

specific needs."

Says Shvartsman: "Like our clients, we are a small company, trying

to carve out a niche."

Akula Systems, 357 Applegarth Road, Suite 7,


08512. Rex Shvartsman. 609-395-1661.

Top Of Page

NACL Inc., 115 Sylvia Street, Ewing Commerce Park,

Ewing 08628. Ed Brewer, associate director. 609-434-0044; fax,


The six-person pharmaceutical consulting firm moved in June from 301

College Road to 9,000 square feet at Ewing Commerce Park. Phone and

fax are new.

PharmaNet, 504 Carnegie Center, Princeton


Jeffrey McMullen, senior vice president. 609-951-6800; fax,


Home page:

The contract clinical research firm has acquired a firm in Essington,


Sovereign Trust Company, 619 Alexander Road,


08540. Cynthia A. Baker, vice president. 609-987-1791; fax,


Home page:

Sovereign Trust Company moved from 134 Franklin Corner Road, the


headquarters of Trenton Savings Bank, to Sovereign Bank’s main


location at 619 Alexander Road.

Waddell & Reed Financial Services, 133 Franklin

Corner Road, the Atrium at Lawrence, Lawrenceville 08648. Victor W.

Pulizzano ChFC, division manager. 609-896-3800; fax, 609-896-3345.

The financial services firm has taken 2,235 square feet in the S.T.

Peterson building at 4250 Route 1, and expects to move on September

1. It sells mutual funds, variable annuities, life and health


Top Of Page
Name Changes

PRG Systems Inc., 410 Wall Street, Research Park,

Princeton 08540. Uma S. Pandey, chairman and president. 609-683-4474;

fax, 609-683-4587. Home page:

Formerly known as ERP Advantage and then as Caplacom, this application

service provider has a new name: PRG Inc. With its headquarters in

2,000 square feet at Research Park, it offers strategy, software


integration, and hosting services from offices in Rochester, New York;

the Caribbean (Jamaica); and India.

Pandey, the founder, has working partnerships with infrastructure

providers such as IBM and Siebel. "We are creating a market for

best-of-class, web-based applications and services," he says.

"Our proprietary ASP management technology enables these


to be hosted anywhere."

Powertec Group of Enertec, 186 Tamarack Circle,

Skillman 08558. George Chirco, vice president of sales and marketing.

609-430-4600; fax, 609-279-0333.

George Chirco has sold his 15-year-old company to a Pennsylvania firm,

Enertec, and is now vice president of sales and marketing at the


Group of Enertec.

Powertec offers Web-based automated metering and testing systems for

electric utility substations and also has automation tools for nuclear

facilities. Its IP-Server is a network-aware cluster of communication

ports that can poll data from intelligent electronic devices. Powertec

will retain its website and will keep its name as the Powertec Group

of Enertec.

With Richard Whiffen as president, Enertec is based in Hatfield and

has an engineering office near Charlotte, North Carolina. The


privately held company has tools for power distribution markets and

Continuous Emissions Monitoring Systems (CEMS).

On Target Staffing, 731 Alexander Road, Suite 101,

Princeton 08540. Roy James, owner. 609-514-0920; fax, 609-987-9020.

Guy James moved his recruiting office, Impact Personnel, from


Way to Alexander Road in April. He closed the business, but it


under the name On Target Staffing and is directed by Roy James, Guy’s


Top Of Page
Out of Business

DWC Web Corp., 51 Everett Drive, West Windsor


Darryl Copeland, CEO. 609-275-6150.

Not all those who suffer from Dotcom Decline were targeting the


crowd. DWC Web Corp. based its hopes on the senior market — being

an Internet service provider, portal, and community for those aged

55 to 75. Even though the company acquired a loyal subscriber base

it failed to get the continued investment that it needed, and it


its website,, on August 3.

A biomedical engineer from Duke, Class of ’81, Copeland has a master’s

in computer science from New Jersey Institute of Technology, an MBA

from Wharton, and was CEO for a senior housing company before opening

this business just one year ago (U.S. 1, August 16, 2000). The


firm’s marketing plan involved donating computers to residential


Top Of Page

Dr. Leonard Volenski, 64, on July 30. A practicing


psychologist, he had been a priest and research fellow with Princeton

Theological Seminary.

Charlie Mae Nealy, 80, on August 8. She had been the head

housekeeper at the Nassau Inn.

Yvonnie "Bonnie" Williams, 51, on August 9. For

32 years she was administrative assistant to the president at Demag


Debra S. Reilly, 46, on August 10. She had been assistant

manager at Kids "R" Us in Mercer Mall.

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