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BUDGET HOTELS for as little as A NIGHT!!! CHICAGO (AP) — Blue- chip corporations are joining the growing exodus of clients at Arthur Andersen LLP, leading some experts to question whether the accounting giant can survive the Enron scandal. Andersen is known to have lost about three dozen public companies as clients since the collapse of the Houston energy giant, including Delta Air Lines on Thursday and Freddie Mac the day before. Merck Inc. and SunTrust Banks also recently dropped Andersen. That is a small percentage of Andersen’s more than 2,300 U.S. public audit clients. But experts say the quickening defections of large and influential companies could have fatal consequences for the accounting firm. Andersen spokesman Patrick Dorton acknowledged “a few” companies have sev ered ties because of “concerns about the negative publicity” from Andersen’s role as Enron’s chief auditor. ”We certainly regret the loss of any one of these small num ber of clients,” he said. “But we are gratified that the vast major ity of Andersen’s more than 100,000 clients around the world remain with the firm.” Nevertheless, Itzhak Sharav, an accounting professor at Columbia University, said the extent of the sudden losses appears to be unprecedented among the Big Five accounting firms. He said more companies are expected to dump Andersen in the next few weeks in annual regulatory filings and at share holder meetings. “Normally you gain some clients and lose some at this time of year. But what you have now is a one-way street. It’s very hard for them to get other clients to replace the ones that defect,” Sharav said. He added: “At least in the minds of many, it's a sinking ship.” University of Toronto accounting professor Ramy Elitzur said Andersen is being treated as an industry pariah despite its stellar past reputa tion and the fact other top firms have also been involved in cases of negligence. “They are in dire straits.” he said. “Probably the only option at this point is to merge with another firm that will salvage them.” Andersen has admitted its employees shredded Enron-relat ed documents. It is under investi gation by Congress, the Securities and Exchange Commission and the Justice Department. This year, Andersen was dis missed by 21 public companies and dropped 10 itself, for a total of 31 losses, while gaining two, according to AuditorTrak. an Atlanta-based service that com piles auditor changes. The losses do not include Delta, Freddie Mac. Merck or private organizations. The four other biggest U.S. NEWS IN BRIEF 721 Texas Aue. 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Right Job.’ accounting firms combined have 39 losses this year. Their total of new clients was not available. Andersen had 23 losses at the same time a year ago, 14 in 2000 and 16 in 1999. Lost fees from the Five departed blue-chip clients — Merck, Freddie Mac, Delta, SunTrust and Enron, which fired Andersen in January — amount to between $75 million and $ 100 million based on 2001 totals, according to industry analyst Arthur Bowman. “Since we’re talking about a multibillion-dollar firm, that doesn’t appear to be a great deal, except that these are premier clients who influence clients, said Bowman. Atlanta-based Accounting Repon. "TV ot events hpe a deepr than appears on the sufcl In a sign of potently defections. Bowman sal other large Andersenc :K Georgia Pacific, FedEgj Southern Baptist Comr,. all have invited other mg Finns to submit prop; Delta is retaining Amell perform some tax andoaj suiting services. It didnJ ment on what role it I scandal played in ns