Friday 29 July 2005

Spitzer Now Sets Sights On Crayola Scandal

Says Could Be Bigger Than Sony Case; Charges Company With Predatory Practices

New York State Attorney General Eliot Spitzer, fresh off is victory in the Sony Payola case, is now setting up his office to tackle what he classifies as an "even bigger" scandal, the Crayola case.

Spitzer says the Crayola scandal extends beyond New York State and will be coordinating his work with attorney generals in, at least, eight other states.

Spitzer charges Crayola with "predatory practices", driving out competition through payoffs, millions in cash, gifts and products.

'Crayola basically hung out a sign to pre-schools and kindergartens that said, use our products, we'll take care of you".

Teachers, administrators and even some parents were lavished with luxury gifts, travel trips such as cruises and envelopes stuffed with cash. The payoffs extend down to distributors and suppliers, even some retails locations.

"All was done with avarice towards their competition", said Spitzer. "The practice was pervasive. This is a more formalized, more corporatized structure".

Spitzer indicated that Crayola used middlemen - distributors and suppliers - to funnel the cash and gifts to schools.

"And when they came across a school or teacher that wanted to go through the proper channels of purchasing, they got tough".

Spitzer says, in such cases, they would lavish even more gifts and attention to other teachers, parents or another school in the same district.

"Or, they would allow the straight purchase, but then, withhold popular colors, like mahogany, atomic tangerine, blizzard blue, to frustrate that teacher. Orders would be late or lost. In the end, the children suffered."

When promoting a certain color, Crayola would often harass a teacher, sending emails and telegrams, asking that teacher "What do I have to do to get inchworm used this week? Whatever you dream up, we can make happen".

Spitzer said Crayola employees sought to conceal some payments by using fictitious contest winners to document the payments and gifts.

With the documentation of emails, and shipping orders. Spitzer charges that top Crayola executives were aware of and condoned the practices.

In one case, Spitzer says that Crayola surreptitiously reprogrammed a teacher's iPod, downloading to it songs with colors referenced, such as "Blue", "It Ain't Easy Being Green" and "Yellow Submarine".


Boy Scouts Fall For Bush - Literally

300 Felled By Heat After Presidential Blow-Off

Already shocked and depressed from the tragedy the day before, when four Scout leaders were killed pitching a tent under a power line, more than 300 Boy Scouts at the Scout Jamboree at Fort A.P. Hill were sickened by the heat Wednesday, while waiting for President Bush to arrive for a memorial service.

The President waited hours to notify the Boy Scouts that he would not be arriving, due to the threat of severe thunderstorms in the area of Bowling Green, VA, where temperatures were in the upper 90's, with high humidity. Mr. Bush rescheduled to visit the gathering Thursday.

Gregg Shields, a Jamboree spokesman, said that half of those felled were treated and released from the base hospital, about three miles from the event arena. Dozens more were sent to other hospitals, where they were in stable condition Wednesday night.

Soldiers carried Boy Scouts on stretchers to the base hospital, and others were airlifted from the event.

More than 40,000 Scouting enthusiasts from around the world to the fort for the annual Jamboree.

On Tuesday, some Scouts witnessed the deaths of the leaders as the large pole at the center of a large, white dining tent came into contact with power lines. An investigation into the accident is incomplete.

Shields said it has not been determined yet if any of the 300 Scouts who were felled by the heat would lose badges, or if President Bush would lose his honorary badge.