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This month's feedback.

Dear Mr. President: A Few More Things

While I was waiting to catch a flight a few weeks ago, the cover of Inc. caught my eye at an airport newsstand. Jack Stack's open letter to the President ["How to Save American Business," February] got my attention because I recently wrote my own, similar letter to President Bush.

I agreed with many of Stack's observations, but since I run a very small business, the issues I wrote about in my letter differ slightly. I asked that the President reduce the self-employment tax, fix Social Security by privatizing some of it, and allow tax deductions for out-of-pocket medical expenses not covered by catastrophic insurance. That will help fix some of the problems that I believe are hurting small family businesses in America.

Bruce Britt, owner, Bruce Britt Real Estate, Glenmora, La.

Jack Stack suggested the President challenge health care companies to control costs. We've raised our rates recently, but our increase in overhead has been much greater. Because of the nurse shortage, we've had to raise nurses' salaries by 14% and 15%, respectively, for the past two years to stay competitive. During that time, Medicaid and Medicare increased our payments by 1.5% a year -- less than the rate of inflation. Plus, if a client refuses to pay Stack's company for remanufacturing an engine, he can deny the client service. But it would be morally wrong for me to deny medical care to a patient, even if he is repeatedly unable to pay.

As for Stack's suggestion of putting more small-business owners on the boards of hospitals and clinics, I think that's a great idea. They'd be a wonderful asset, and together we could help decrease health costs while improving the health of our community.

Bradley A. Bowenschulte
Anesthesiologist
St. Johns Hospital
Springfield, Mo.

I agree with Jack Stack that our domestic oil refining capacity needs to be increased, but right now the President's priority should be exploring renewable alternative fuels. Recent advances in technology have led to the development of new fuel sources that are cheaper to produce. Our President can help ensure that the U.S. doesn't miss the boat.

Alex Skora
President and CEO
Estron Chemical
Parsippany, N.J.

Adopting Larry's Kids

As the largest investor in NetSuite after Larry Ellison, we at StarVest Partners enjoyed your article about how the company has grown ["Larry's Kids," February]. In 1999 we decided to invest in the NetSuite team's vision of making software to help small companies run their businesses. But, after StarVest agreed to lead the round of financing, we could not interest a single Sand Hill Road venture capitalist in the investment.

Well, the "kids" are doing just fine, and we are proud to help raise them. We're glad we invested where West Coast VCs feared to tread.

Deborah A. Farrington
Founder and co-chairman
StarVest Partners
New York City

The State of the Unions

I would like to thank Norm Brodsky for having the courage to take on the union ["Subcontracting Made Easy," February]. The unions of today have no resemblance to their roots. Somewhere along the line they became political action committees instead of the best place for quality craftsmanship. It's guys like Walt Conklin that made this country great.

Joe Thibert
Retired
Marblehead, Mass.

Sounds like the iron union wants to get what it wants, when it wants it -- or else! It's perplexing, because the unions were originally formed to represent people who had been denied an opportunity to work under civil and respectable conditions for a fair wage. Today's unions are employing the same strong-arm tactics used to oppress the industrial work force of the 19th century.

Patrick Burke
Owner
Burke's Woodworks
West St. Paul, Minn.

Model Train Trial of the Century

As someone who works in the model railroad industry, I can attest to the energizing effects Mike Wolf has had on the O-gauge segment of the hobby ["Train Wreck," February]. Were it not for MTH, Lionel would still have the train market cornered. However, it is unfair to ascribe all of MTH's problems to Lionel. Lionel did not force MTH to produce a series of dismayingly unreliable train sets several years ago. Retail dealers still vividly remember those sets because they not only had to give refunds to irate customers, but they also lost out on the sales of accessories that such sets generate.

Riley O'Connor
Market consultant
R.R. O'Connor
Atlanta

Mike Wolf is far from blameless. He used many of the same underhanded manufacturing tactics of which he accused Lionel. Companies in the model train industry play hardball, but it was Wolf who took it from respectful competition to a ruthless battlefield.

James H. Foster
Owner
West Johnson Classics
Philadelphia

I think Mike Wolf should get every penny the courts have said he's entitled to and Lionel should pay up for its dirty deed of stealing trade secrets. The company shouldn't be allowed to hide behind Chapter 11 bankruptcy. I'm glad I don't own any Lionel products, and I won't unless Lionel does the proper thing and pays MTH what it owes. Until then, MTH will get my money for what I consider some of the best O-gauge model trains ever made.

Clay Fugitte
Assembler
Kaman Dayron
Orlando

Except for the fact that Lionel dealt dishonestly with Mike Wolf and MTH, it's tough to have any sympathy for Wolf and his company. If you ask me, his problems started when he decided to manufacture his trains overseas.

In my one-artist business of building scaled ship models, the bulk of my competition is from cheap and shoddy foreign imports. Any benefits from offshore activities will be short-lived for companies in the collectibles arena, but the wrenching effects on product quality will linger for years to come.