Fortnightly Magazine - July 15 1998


TEXAS CLARIFICATION. Thank you for the article, "From Statehouse to Your House: The Electric Competition Debate in Texas" (May 15, 1998 issue).

Please allow me to correct one point in that article, however. In discussing variations of distribution costs among utilities serving "deep East" Texas (a region of the state), the author believed me to be referring to Deep East Texas Electric Coop (a utility). Deep East Texas Electric Coop has one of the lowest distribution costs in the state; other neighboring coops in "deep East" Texas are somewhat higher.


PYRAMIDS FALL. While I enjoyed reading the "Pyramid Schemes" article in your May 1, 1998 issue, as the lead prosecutor in the Federal Trade Commission's action against FutureNet I feel a clarification is in order. While the FTC's complaint focused on FutureNet's Internet access program, certain concerns attach to any program which focuses on recruitment since one of the hallmarks of a pyramid is the lack of any relationship between the compensation paid to a distributor for recruiting and the sale of any product. (Webster v. Omnitrition International Inc., 79 F. 3d 776, 781 [9th Cir.