MILAN IN ANOTHER SIGN THAT THE GLORY DAYS ARE OVER FOR EUROPEAN DESIGNER LABELS GRUPPO GFT THE PIONEER MANUFACTURER OF FASHIONS FOR GIORGIO ARMANI VALENTINO AND CALVIN KLEIN AGREED TO SELL A SIGNIFICANT STAKE TO ITALIAN TEXTILE GIANT GRUPPO MIROGLIO WHILE BOTH PARTNERS DECLINED TO DISCLOSE THE SIZE OF THE STAKE PEOPLE CLOSE TO THE NEGOTIATIONS SAID IT IS PROBABLE THE TURINBASED RIVETTI FAMILY THE SOLE OWNERS OF GFT WOULD SELL A MAJORITY SHARE OF GFT THROUGH A CAPITAL INCREASE LIKELY TO REACH ABOUT 100 MILLION GFT ONE OF THE FIRST COMPANIES TO SIGN LICENSING CONTRACTS WITH DESIGNERS IN THE 1970S AND MARKET LUXURY READYTOWEAR APPAREL FOR EXPORT WORLDWIDE HAD SALES ESTIMATED AT 154 TRILLION LIRE 9706 MILLION IN 1992 LED BY CHAIRMAN MARCO RIVETTI IT WAS THE MANUFACTURING POWERHOUSE BEHIND THE DESIGNERLABEL BOOM WHICH REACHED ITS APEX IN THE LATE 1980S OTHER DESIGNERS IN ITS STABLE INCLUDE EMANUEL UNGARO CLAUDE MONTANA JOSEPH ABBOUD AND CHRISTIAN DIOR BUT MORE RECENTLY GFT LIKE MANY OTHER HIGHFASHION COMPANIES HAS SUFFERED FROM THE FADING INTEREST IN DESIGNER LABELS AMID US AND EUROPEAN ECONOMIC WEAKNESS NOT TO MENTION A BURDENSOME DEBT LOAD AND HIGH ITALIAN MANUFACTURING COSTS SALES OF DESIGNER READYTOWEAR WERE DOWN 15 IN 1992 ALONE SAID VITTORIO LEVI CHIEF EXECUTIVE OFFICER OF GFT ADDING THAT THE DEBTTOEQUITY RATIO HAD INCREASED TO A PATHOLOGICAL LEVEL WITH DEBT TOTALING ABOUT 300 MILLION AT THE END OF 1992 THE GROUP HAD MADE A SERIES OF ACQUISITIONS AND INVESTED HEAVILY IN THE US MARKET WITH THE INTRODUCTION OF NEW LOWERPRICED LINES SUCH AS EMANUEL BY FRENCH DESIGNER EMANUEL UNGARO ONLY THIS YEAR WILL THE COMPANY SEE A PROFIT IN THE US FOLLOWING AT LEAST THREE YEARS OF LOSSES DESPITE A RESTRUCTURING PLAN WHICH MOVED 50 OF ITS MENSWEAR MANUFACTURING OUT OF ITALY AND SEVERAL ASSET SALES GFT REPORTED AN OVERALL LOSS OF 426 BILLION LIRE IN 1991 AND A LOSS OF 196 BILLION LIRE FOR 1992'S FIRST HALF FEELING THE SAME SORT OF PINCH FRENCH FASHION HOUSE YVES SAINT LAURENT SCA SOLD CONTROL TO FRENCH STATE PHARMACEUTICAL COMPANY ELF SANOFI SA SHOULD MIROGLIO ACQUIRE A MAJORITY OF THE GROUP THE NEW COMPANY WOULD BECOME ONE OF EUROPE'S LARGEST APPAREL AND TEXTILE GROUPS MIROGLIO WHICH MANUFACTURES LOW TO MODERATELY PRICED APPAREL AND TEXTILES HAD CONSOLIDATED SALES ESTIMATED AT 1074 TRILLION LIRE IN 1992 UP FROM 1048 TRILLION IN 1991 AND A PROFIT ESTIMATED AT A LITTLE MORE THAN 85 BILLION LIRE LAST YEAR UP FROM 78 BILLION LIRE IN 1991 SAID GIOVANNI COCCODRILLI MIROGLIO'S FINANCE DIRECTOR WHETHER THE FASHION DESIGNERS WHO LICENSE THEIR NAMES TO GFT WILL AGREE TO STAY ON IN THE NEW COMPANY REMAINS A KEY TO THE VIABILITY OF THE NEW GROUP EVEN IF THEY REMAIN THE LUXURY DESIGNER LABELS WILL NO LONGER BE THE ENGINE FUELING THE VOLUME GROWTH OF THE NEW GROUP THE MAJORITY OF SALES WOULD COME FROM MODERATELY PRICED CLOTHING AND FABRICS MIROGLIO IS A GREAT COMPANY AND THE TWO TOGETHER CAN BECOME A SUPERCOMPANY BUT THAT DOESN'T NECESSARILY MEAN I'LL BE A PART OF IT SAID GIANCARLO GIAMMETTI CHAIRMAN OF VALENTINO IN ROME IT WILL DEPEND ON THE WAY GFT PLANS TO DEVELOP VALENTINO IN THE FUTURE VALENTINO WHICH LICENSES ITS HIGHEND MEN'S AND WOMEN'S WEAR TO GFT ACCOUNTED FOR 230 BILLION LIRE IN GFT SALES IN 1992 MR GIAMMETTI SAID HE SAID VALENTINO IS INTERESTED IN ORGANIZATIONAL ISSUES AT GFT AS WELL AS THE POSSIBILITY OF MANUFACTURING OUTSIDE ITALY TO CUT COSTS GIORGIO ARMANI WHO LICENSES HIS LE COLLEZIONI LABEL A MIDPRICED RANGE OF CLOTHING IN THE US FOR MEN AND WOMEN AND HIS MANI LABEL IN EUROPE HAD NO COMMENT ON THE AGREEMENT THE SALE IS SCHEDULED TO BE COMPLETED BY JUNE 30 PENDING APPROVAL BY BOTH PARTIES AND THE MAIN FASHION DESIGNERS UNDER CONTRACT TO GFT 9405060183 930401 INTERNATIONAL CANARY WHARF CREDITORS TO DECIDE ON PAYMENT LONDON UNSECURED CREDITORS OF THE UNFINISHED CANARY WHARF DEVELOPMENT ARE BEING ASKED TO SAY BY THE END OF THE WEEK WHETHER THEY ARE WILLING TO ACCEPT 15 PAYMENT ON THE 70 MILLION 1046 MILLION THEY ARE OWED SOURCES AT THE DEVELOPMENT SAID UNSECURED CREDITORS WHO ARE ASKED TO PUT UP A WARRANTY ON THEIR WORK WILL GET AN ADDITIONAL 25 PAYMENT OR 40 PENCE ON THE POUND THE SOURCE SAID IF THE CREDITORS MOST OF THEM BUILDING CONTRACTORS AGREE TO THE PARTIAL PAYMENT A FORMAL VOTE WILL BE HELD AND BANKERS WILL PUT UP MONEY TO EXTEND AN UNDERGROUND TRAIN LINE TO THE PROJECT SEVERAL MILES EAST OF LONDON'S FINANCIAL DISTRICT BUT IF THE CREDITORS FAIL TO AGREE ON THE PAYMENT CANARY WHARF IS LIKELY TO FACE LIQUIDATION SAID THE SOURCE WHO SPOKE ON CONDITION THAT HE NOT BE IDENTIFIED THE UNSECURED CREDITORS HAVE BEEN ADVISED THEY WOULD PROBABLY GET NOTHING FROM A LIQUIDATION THE SOURCE SAID CANARY WHARF HAS BEEN OPERATED BY ADMINISTRATORS FROM THE ACCOUNTING FIRM OF ERNST AND YOUNG SINCE THE PROJECT'S DEVELOPER OLYMPIA & YORK DEVELOPMENTS LTD RAN INTO SERIOUS FINANCIAL TROUBLES LAST YEAR AND LOST CONTROL OF THE PROJECT ONCE ENVISIONED AS A NEW FINANCIAL CAPITAL OF EUROPE BANKERS WHO HAVE SUNK 600 MILLION INTO CANARY WHARF HAVE TENTATIVELY AGREED TO PUT UP MILLIONS MORE TO PERSUADE THE GOVERNMENT TO EXTEND THE JUBILEE LINE OF THE LONDON UNDERGROUND TRAIN SYSTEM TO CANARY WHARF 9404280144 930505 MARKETING BRIEF NOTED WHO'S NEWS WILLA PERLMAN WAS NAMED PRESIDENT AND PUBLISHER OF SIMON & SCHUSTER CHILDREN'S BOOKS A SUBSIDIARY OF PARAMOUNT COMMUNICATIONS INC SHE WAS EDITORIAL DIRECTOR OF WILLA PERLMAN BOOKS A UNIT OF NEWS CORP'S HARPERCOLLINS PUBLISHING COMPANY SHE SUCCEEDS JOHN SARGENT 35 WHO HAS BECOME THE NEW CHIEF EXECUTIVE OF DORLING KINDERSLEY PUBLISHING INC MR SARGENT WILL BE RESPONSIBLE FOR ADULT AND CHILDREN'S BOOKS FOR THE NEW YORK UNIT OF LONDONBASED DORLING KINDERSLEY HOLDINGS PLC NEWS CORP NAMED JOSEPH W CECE TO OVERSEE A VENTURE TO LAUNCH AN ELECTRONIC TV GUIDE AND TO STUDY OTHER NEW MEDIA PROPERTIES HE WAS PRESIDENT AND PUBLISHER OF TV GUIDE MAGAZINE HE BECOMES AN EXECUTIVE VICE PRESIDENT OF NEWS AMERICA PUBLISHING NEWS CORP'S US PUBLISHING ARM TV GUIDE ON SCREEN IS A JOINT VENTURE WITH LIBERTY MEDIA CORP 9404280146 930429 NOBLE AFFILIATES UNIT ARDMORE OKLA NOBLE AFFILIATES INC SAID ITS SAMEDAN OIL CORP FOUND OIL AND NATURAL GAS IN A DISCOVERY WELL 100 MILES OFFSHORE LOUISIANA IN THE GULF OF MEXICO DRILLED TO A DEPTH OF 11551 FEET THE WELL HAS FOUR POTENTIAL HYDROCARBONBEARING ZONES AT THE WELL'S DEEPEST ZONE IT TESTED AT A DAILY RATE OF 41 MILLION CUBIC FEET OF NATURAL GAS AND 763 BARRELS OF CONDENSATE AN OILLIKE SUBSTANCE THAT CAN BE REFINED ANOTHER ZONE TESTED AT 818 BARRELS OF OIL AND 200000 CUBIC FEET OF GAS A DAY 9404280142 930429 INTERNATIONAL BRIEF TOTAL SA FRENCH OIL CONCERN BOLSTERS DEFENSES AGAINST TAKEOVER FRENCH OIL COMPANY TOTAL SA ANNOUNCED A COMPLEX SCHEME OF CAPITAL INCREASES AND CROSSED SHAREHOLDINGS THAT BOLSTERS ITS TAKEOVER DEFENSES AND AMASSES NEW FUNDS FOR ITS INVESTMENT PROGRAM WHEN THE OPERATIONS ARE COMPLETED TOTAL WILL HAVE ABOUT 25 BILLION FRANCS 133 BILLION IN FRESH CASH THREE NEW LONGTERM SHAREHOLDERS FRENCH STATEOWNED NUCLEAR FUEL GROUP COGEMA INDUSTRIAL CONGLOMERATE LYONNAISE DES EAUXDUMEZ SA AND THE BANK SOCIETE GENERALE DE FRANCE SA AND STAKES IN THOSE COMPANIES THE PROPOSAL WILL BE PUT TO TOTAL SHAREHOLDERS JUNE 2 A 407BILLIONFRANC CAPITAL INCREASE WILL BE RESERVED FOR THE THREE COMPANIES WHICH WILL ACQUIRE ABOUT 7 OF TOTAL'S CAPITAL THEY WILL MAKE UP A SECOND HARD CORE OF SHAREHOLDERS FOR TOTAL CONSOLIDATING THE COMPANY'S DEFENSE AGAINST A POTENTIAL RAIDER SINCE THE FRENCH GOVERNMENT REDUCED ITS DIRECT AND INDIRECT STAKE TO 15 FROM 34 LAST YEAR MOST OF TOTAL'S CAPITAL IS DISPERSED IN PUBLIC HANDS COMPANY CHAIRMAN SERGE TCHURUK INSISTED THAT THE OPERATION WOULDN'T DILUTE PERSHARE EARNINGS HOWEVER TOTAL'S SHARE PRICE FELL 22 OR 58 FRANCS TO 2635 FRANCS A SHARE ON THE PARIS BOURSE 9404280139 930423 WHO'S NEWS BALLY GAMING APPOINTS NEW PRESIDENT STATUS OF MAISS ISN'T STATED LAS VEGAS BALLY GAMING INTERNATIONAL INC SAID HANS KLOSS HEAD OF ITS BALLY WULFF SUBSIDIARY WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THE GAMBLINGMACHINE MAKER RAISING QUESTIONS ABOUT THE STATUS OF THE COMPANY'S PREVIOUS PRESIDENT ALAN MAISS IN A NEWS RELEASE THE COMPANY MADE NO MENTION OF MR MAISS BUT SAID THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE RICHARD GILLMAN WAS RELINQUISHING THE PRESIDENT'S ROLE A COMPANY SPOKESMAN REFUSED TO SAY WHEN MR MAISS STEPPED DOWN AS PRESIDENT OR WHETHER HE HAD ANY FURTHER DEALINGS WITH THE COMPANY MR MAISS COULDN'T BE LOCATED FOR COMMENT THE CHIEF OPERATING OFFICER'S POSITION HAD BEEN VACANT MR KLOSS 51 YEARS OLD HAS BEEN MANAGING DIRECTOR OF THE BALLY WULFF UNIT SINCE 1981 AND A DIRECTOR OF BALLY GAMING SINCE 1991 MR GILLMAN 61 WAS TRAVELING AND COULDN'T BE REACHED FOR COMMENT 9404280019 930405 QUARTERLY MUTUAL FUNDS REVIEW HOW THE BIGGEST STOCK FUNDS HAVE PERFORMED PERCENTAGE GAINS FOR PERIODS ENDED MARCH 31 1993 ASSETS AS OF DEC 31 1992 9404270002 930511 MARKETING & MEDIA TIME WARNER SELECTS SCIENTIFICATLANTA INC AS CABLE BOX SUPPLIER ATLANTA TIME WARNER CABLE SAID IT SELECTED SCIENTIFICATLANTA INC TO SUPPLY A CABLE CONVERTER BOX WITH PERSONAL COMPUTING POWERS FOR THE TIME WARNER INC CABLE UNIT'S FIRST ELECTRONIC SUPERHIGHWAY IN ORLANDO LATE THIS YEAR TOSHIBA CORP WILL WORK JOINTLY WITH SCIENTIFICATLANTA TO DEVELOP THE TERMINAL TIME WARNER SAID TERMS WEREN'T DISCLOSED SCIENTIFICATLANTA WHICH HAS EXPERIENCE IN DESIGNING AND BUILDING CABLE CONVERTER BOXES WILL BUILD THE SETTOP BOX THE FIRST TO USE DIGITAL RATHER THAN ANALOG TECHNOLOGY FOR THE SOUPEDUP INTERACTIVE CABLE SYSTEM THE SYSTEM IS TO OFFER AN ARRAY OF SERVICES INCLUDING ONDEMAND MOVIES FULLMOTION VIDEO GAMES HOME SHOPPING DATA SERVICES ELECTRONIC PROGRAM GUIDES AND INTERACTIVE EDUCATIONAL SERVICES SCIENTIFICATLANTA WILL ALSO PROVIDE CERTAIN EQUIPMENT TO TIME WARNER FOR THE CABLE CENTRAL OFFICE THE CONTRACT GIVES SCIENTIFICATLANTA A FOOTHOLD IN THE INCIPIENT INTERACTIVE CABLE BUSINESS REVENUEWISE IT'S NOT GOING TO MAKE OR BREAK SCIENTIFICATLANTA SAID DANIELLE DANESE AN ANALYST WITH SALOMON BROTHERS IN NEW YORK THE IMPORTANCE IS IT'S A SHOWCASE ACCOUNT THE FIRST INTERACTIVE CABLE TV SYSTEM AND TIME WARNER WANTS TO DO OTHERS TIME WARNER HAD PREVIOUSLY CHOSEN SCIENTIFICATLANTA TO PROVIDE THE DISTRIBUTION AND FIBER OPTIC EQUIPMENT PORTION OF THE PROJECT WHICH WILL SERVE SOME 4000 CABLE CUSTOMERS' HOMES IN TWO NEIGHBORHOODS IN ORLANDO THE FIRST CITY IN WHICH IT IS TO BE ROLLED OUT IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY SCIENTIFICATLANTA SHARES ROSE 50 CENTS TO 26375 9404260173 930607 MARKETING RESTAURANT REVIEW BY ELEENA DE LISSER FIRST CAME FREQUENT FLIERS NOW THERE ARE FREQUENT DINERS TAKING A CUE FROM THE AIRLINE INDUSTRY SOME FASTFOOD CHAINS INCLUDING A FEW FRANCHISEES OF MCDONALD'S HARDEES AND BURGER KING ARE DEVELOPING FREQUENTCUSTOMER CLUBS WITH EACH PURCHASE A CUSTOMER EARNS CREDITS THAT CAN BE REDEEMED FOR FREE FOOD OR MERCHANDISE PERHAPS THE MOST AMBITIOUS PROGRAM CAN BE FOUND AT ARBY'S WHICH HAS A FREQUENTCUSTOMER CLUB IN 40 RESTAURANTS IN NASHVILLE TENN PORTLAND ORE SACRAMENTO CALIF AND SALT LAKE CITY MORE THAN 30000 PEOPLE ARE MEMBERS IN THE PORTLAND AND SACRAMENTO MARKETS ALONE WHERE THE TEST BEGAN LAST FALL SAYS DAVE SHANNON DIRECTOR OF CORPORATE MARKETING ARBY'S MIAMI BEACH FLA PLANS TO EXPAND THE PROGRAM NATIONWIDE TO ITS 264 COMPANYOWNED RESTAURANTS BY YEAR'S END WHILE CUSTOMERS ARE REWARDED FOR THEIR REPEAT PATRONAGE ARBY'S BENEFITS BY LEARNING MORE ABOUT ITS CLIENTELE CONSUMERS COMPLETE MEMBERSHIP APPLICATIONS TELLING ARBY'S THEIR AGE SEX AND MENU PREFERENCES INDIVIDUAL MEMBERSHIP CARDS ARE PASSED THROUGH MAGNETIC READERS AT EACH PURCHASE GIVING THE COMPANY INFORMATION ABOUT CUSTOMER SPENDING HABITS AND FREQUENCY OF VISITS BONUSES CAN THEN BE TAILORED TO CUSTOMERS' TASTES REGULAR BUYERS OF A SALAD MIGHT RECEIVE A COUPON TOWARD A FUTURE SALAD PURCHASE AS OPPOSED TO A ROASTBEEF SANDWICH THIS IS INFORMATION WE NEVER HAD BEFORE ON OUR CUSTOMERS UNLESS WE DID A SURVEY MR SHANNON SAYS THE RESULTS SO FAR ARE PROMISING VISITS BY MEMBERS HAVE ROUGHLY DOUBLED TO THREE A MONTH SINCE THE CLUB STARTED MR SHANNON SAYS HOTELS ARE TRYING TO WHIP UP WAYS TO STREAMLINE OR REVITALIZE THEIR RESTAURANTS FOOD AND BEVERAGE OPERATIONS INCLUDING ROOM SERVICE LIQUOR BANQUET AND CATERING ACCOUNT FOR ABOUT ONEFIFTH OF HOTELS' PROFITS BUT THEIR SITDOWN RESTAURANTS ALONE OFTEN LOSE MONEY WITHOUT A STEADY STREAM OF CONVENTION OR BANQUET BUSINESS HIGH STAFFING COSTS AND OTHER OVERHEAD CAN QUICKLY EAT UP PROFITS SAYS DANIEL DANIELE DIRECTOR OF HOSPITALITY CONSULTING FOR ERNST & YOUNG IN CHICAGO SO SOME HOTELS ARE LEASING SPACE TO RESTAURANT COMPANIES LETTUCE ENTERTAIN YOU ENTERPRISES OPERATES THE PAPAGUS GREEK TAVERNA IN THE EMBASSY SUITES HOTEL IN DOWNTOWN CHICAGO SFUZZI BASED IN DALLAS RUNS AN ITALIAN RESTAURANT UNDER ITS OWN NAME IN THE LOEWS VANDERBILT PLAZA HOTEL IN NASHVILLE OTHER HOTELS ARE MOVING THEIR DINING FACILITIES TO MORE PROMINENT LOCATIONS IN CHICAGO LE MERIDIEN HOTEL HAD A FORMAL FRENCH DINING ROOM THAT WAS STRUGGLING LOCATED IN THE CITY'S AFFLUENT GOLD COAST NEIGHBORHOOD THE HOTEL IS SURROUNDED BY BARS AND RESTAURANTS SO IT CHANGED FORMATS STARTING UP A CASUAL BISTRO 18 MONTHS AGO AND MOVING IT FROM THE SECOND FLOOR TO A STREETLEVEL LOCATION WITH ITS OWN ENTRANCE SIDEWALK SEATING AND FLOORTOCEILING WINDOWS FACING THE STREET THE BISTRO HAS BECOME POPULAR AMONG AREA RESIDENTS AND HOTEL GUESTS SAYS IKE JANACEK THE HOTEL'S EXECUTIVE ASSISTANT MANAGER CLUBHOUSE INNS OF AMERICA BASED IN OVERLAND PARK KAN HAS ESTABLISHED THE CLUBGRILL A COOKYOUROWN EATERY IN TWO OF ITS PROPERTIES CUSTOMERS SELECT THE MEAT CHICKEN OR SHRIMP THEY WOULD LIKE TO EAT AND COOK IT TO THEIR OWN TASTE ON THE GRILL A STEAK DINNER WITH SALAD COSTS 1095 FOOD AND BEVERAGE OPERATIONS IN A HOTEL ARE SOMEWHAT OF A RISKY BUSINESS AND THIS SOLVED THE PROBLEM NICELY SAYS PAT D'AMICO CLUBHOUSE'S DIRECTOR OF MARKETING ABOUT 30 OF GUESTS USE THE CLUBGRILL HE SAYS WE WANT TO SELL ROOMS AND THIS IS SOMETHING THAT WILL MAKE HOTEL GUESTS WANT TO COME BACK WAITERS AND WAITRESSES DON'T JUST BRING CUSTOMERS THEIR MEALS ANYMORE MORE RESTAURANTS ARE GIVING THEIR FOOD SERVERS GREATER AUTHORITY TO KEEP CUSTOMERS HAPPY SAYS RON PAUL PRESIDENT OF TECHNOMIC A FOODSERVICE CONSULTING FIRM IN CHICAGO WITH BUSINESS TIGHT HE SAYS MANY OPERATORS ARE REALIZING THAT THEIR SERVERS CAN BE USED AS A FRONTLINE SALES FORCE IT'S VERY EXPENSIVE TO GET NEW CUSTOMERS TO COME IN AND TRY YOU MR PAUL SAYS IN A SLOWGROWTH ECONOMY YOU'D BETTER TAKE CARE OF THE ONES YOU'VE GOT TGI FRIDAYS A DALLASBASED UNIT OF CARLSON COS IN MINNEAPOLIS TRAINS ITS WAITERS AND WAITRESSES TO DO WHATEVER IT TAKES TO PLEASE A CUSTOMER SAYS NICK GALANOS EXECUTIVE VICE PRESIDENT OF OPERATIONS EVEN IF THAT MEANS RUNNING TO THE SUPERMARKET TO GET A CAN OF SARDINES TO MAKE A SARDINE SANDWICH HE SAYS AT ATLANTA'S KUDZU CAFE WHICH FEATURES SOUTHERN CUISINE WAITERS AND WAITRESSES HAVE THE DISCRETION TO OFFER CUSTOMERS A FREE DESSERT OR MEAL IF THEY HAVE TO WAIT TOO LONG FOR THEIR FOOD THE IMPORTANT THING SAYS MICHAEL ZAJAC THE MANAGER IS THAT THE STAFF HAS THE FLEXIBILITY TO HANDLE A PROBLEM QUICKLY WITHOUT HAVING TO ASK FOR PERMISSION TO FIX IT WE'RE IN THIS FOR THE LONG TERM MR ZAJAC SAYS WE'RE BUILDING A CLIENTELE AND LOOKING AT EACH GUEST AS A LIFETIME GUEST NEW YORK CITY DINERS CAN GET RESTAURANT INFORMATION FROM FOODPHONE A SERVICE LISTING 3000 EATERIES IN THE CITY INTERACTIVE SERVICES NEW YORK UPDATES THE LISTINGS MONTHLY AND INCLUDES DESCRIPTIONS OF EACH RESTAURANT'S CUISINE LOCATION DELIVERY OPTIONS AND PRICE RANGE THE COMPANY PLANS TO START LINES IN ATLANTA BOSTON CHICAGO LOS ANGELES SAN FRANCISCO AND OTHER CITIES GRAND METROPOLITAN'S BURGER KING UNIT NOW PUBLISHES THREE QUARTERLY MAGAZINES FOR MEMBERS OF ITS KIDS CLUB THE TITLES ARE SMALL FRIES FOR AGES FIVE AND UNDER GREAT SHAKES FOR MEMBERS AGES SIX TO EIGHT AND HAVE IT YOUR WAY FOR CHILDREN NINE AND 10 YEARS OLD 9404260178 930525 CREDIT RATINGS ENGELHARD CORP MOODY'S INVESTORS SERVICE INC RAISED ITS RATING ON COMMERCIAL PAPER TO PRIME1 FROM PRIME2 AND THE RATING ON LONGTERM SENIOR NOTES RATING TO SINGLEA2 FROM SINGLEA3 MOODY'S CITED THE STRONG CASHGENERATING CAPACITY OF THE COMPANY'S OPERATIONS AND FINANCIAL TRACK RECORD ENGELHARD ISELIN NJ PRODUCES SPECIALTY CHEMICAL PRODUCTS AND ENGINEERED MATERIALS AND PROVIDES PRECIOUS METALS MANAGEMENT SERVICES IMO INDUSTRIES INC LAWRENCEVILLE NJ STANDARD & POOR'S CORP LOWERED THE RATING ON IMO INDUSTRIES' SENIOR SUBORDINATED DEBT TO SINGLEBMINUS FROM SINGLEBPLUS CITING TIGHT RESTRICTIONS IN ITS RENEGOTIATED BANK DEBT ABOUT 300 MILLION OF DEBT IS AFFECTED S&P SAID IMO LAST WEEK REACHED AGREEMENTS WITH ITS LENDERS TO RESTRUCTURE ITS SENIOR CREDIT LINE WHICH INCLUDED IMMEDIATE ISSUANCE OF 108 MILLION IN LETTERS OF CREDIT TO SUPPORT NEW COMMERCIAL CONTRACTS THE RESTRUCTURED CREDIT LINE INCLUDES A 65 MILLION REVOLVING CREDIT FOR WORKING CAPITAL AND LETTERS OF CREDIT TO SUPPORT FUTURE COMMERCIAL CONTRACT WORK S&P SAID IMO WHICH MAKES ANALYTICAL AND OPTICAL INSTRUMENTS ELECTRICAL AND MECHANICAL CONTROLS AND ENGINEERED POWER COMPONENTS FOR COMMERCIAL AND MILITARY APPLICATIONS IS EXPECTED TO BE MODESTLY PROFITABLE THIS YEAR BUT SOFT SALES AND A HIGH DEBTTOCAPITAL RATIO ARE EXPECTED TO RESULT IN ONLY MEDIOCRE CASH FLOW AND LIMITED FINANCIAL FLEXIBILITY IMO OFFICIALS COULDN'T IMMEDIATELY BE REACHED FOR COMMENT ON S&P'S ACTION JERSEY SHORE MEDICAL CENTER NEPTUNE NJ MOODY'S INVESTORS SERVICE INC COMPLETING A REVIEW OF HOSPITAL REVENUE BOND RATINGS IN NEW JERSEY SAID IT ISSUED ONE UPGRADE FOR JERSEY SHORE MEDICAL CENTER TO BAA1 FROM BAA DUE TO AN IMPROVED LIQUIDITY POSITION AND FINANCIAL PERFORMANCE THE RATING SERVICE ALSO ISSUED FIVE DOWNGRADES AND 18 CONFIRMATIONS MOODY'S NOTED THAT THE RATING DISTRIBUTION FOR NEW JERSEY HOSPITALS IS SKEWED TOWARD LOWER BOND RATINGS BECAUSE HOSPITALS HAVE OPERATED UNDER A HIGHLY REGULATED REIMBURSEMENT SYSTEM A NEW REIMBURSEMENT SYSTEM STARTING JAN 1 WILL REQUIRE HOSPITALS TO ADJUST TO PREDETERMINED AND DECREASING SUBSIDIES TO COVER POTENTIAL SHORTFALLS DOWNGRADES INCLUDED COLUMBUS HOSPITAL NEWARK TO BA1 FROM BAA ELIZABETH GENERAL HOSPITAL ELIZABETH TO BAA1 FROM SINGLEA PALISADES GENERAL HOSPITAL NORTH BERGEN TO BA FROM BAA1 PRINCETON MEDICAL CENTER PRINCETON TO SINGLEA FROM SINGLEA1 AND ZURBRUGG MEMORIAL HOSPITAL WILLINGBORO TO BAA FROM BAA1 WENDY'S INTERNATIONAL INC DUBLIN OHIO SAW ITS RATINGS ON ITS SENIOR NOTES RAISED BY MOODY'S INVESTORS SERVICE INC TO BAA1 FROM BAA2 AND THE RATINGS OF THE COMPANY'S SUBORDINATED DEBENTURES TO BAA3 FROM BA1 MOODY'S SAID THE TOTAL DEBT AFFECTED IS ABOUT 188 MILLION THE RATINGS SERVICE SAID THE UPGRADE ACKNOWLEDGES THE PROGRESS THE FASTFOOD RESTAURANT CHAIN HAS MADE IN STRENGTHENING ITS NETWORK OF RESTAURANTS ENHANCING ITS PUBLIC IMAGE AND IMPROVING FINANCIAL FLEXIBILITY MOODY'S ALSO SAID THE UPGRADE REFLECTS ITS EXPECTATION WENDY'S INTERNATIONAL WILL CONTINUE TO EXPAND THE NUMBER OF RESTAURANTS IT OWNS OR FRANCHISES IN A CONTROLLED AND PRUDENT MANNER 9404260033 930525 WHAT'S NEXT STEVE JOBS'S VISION SO ON TARGET AT APPLE NOW IS FALLING SHORT HE STRUGGLES TO WIN A NICHE IN THE COMPUTER INDUSTRY AFTER A SERIES OF MISSTEPS DEEP FAITH IN HIS OWN GENIUS BY G PASCAL ZACHARY AND KEN YAMADA STAFF REPORTERS OF THE WALL STREET JOURNAL REDWOOD CITY CALIF STEVEN P JOBS HAS BEEN HAVING A TOUGH TIME IN FEBRUARY HIS COMPUTER COMPANY NEXT INC STOPPED MAKING COMPUTERS IN MARCH HIS PRESIDENT AND HIS CHIEF FINANCIAL OFFICER QUIT THEN SEVERAL BIG COMPUTER MAKERS SOME OF WHICH HE HAD HOPED WOULD USE HIS SOFTWARE FORMED A SOFTWARE ALLIANCE THAT EXCLUDED NEXT HOW IS MR JOBS TAKING ALL THIS THE LOSS OF HARDWARE BRIGHTENED NEXT'S FUTURE AND THE PAREDDOWN COMPANY NEEDED FEWER MANAGERS ANYWAY HE SAYS AND HE WROTE TO EMPLOYEES AFTER THE NEXTLESS ALLIANCE WAS REPORTED IN REALITY TODAY'S ANNOUNCEMENTS ARE A SERIOUS VICTORY FOR NEXT ALL THIS IS VINTAGE STEVE JOBS THE 38YEAROLD COFOUNDER OF APPLE COMPUTER INC IS A SPELLBINDING SPINNER OF VISIONS THE MOST FAMOUS BEING HIS ONCEUNCONVENTIONAL IDEAS THAT FORESAW THE PERSONALCOMPUTER REVOLUTION FOR YEARS HIS BIGGEST STRENGTH WAS HIS ABILITY TO MESMERIZE EVEN SAVVY PEOPLE WITH SALES PITCHES FOR NEW BUT SOMETIMES FLAWED PRODUCTS SINCE APPLE OUSTED HIM IN 1985 HOWEVER HIS VISION OF CREATING ANOTHER MAJOR COMPUTER COMPANY HAS BEGUN TO LOOK LIKE A PIPE DREAM HIS CLOSELY HELD NEXT WHICH HE ONCE PREDICTED WOULD KILL NOWHUGE SUN MICROSYSTEMS INC HAS NEVER TURNED A NET PROFIT AND HAS NEARLY EXHAUSTED 125 MILLION IN CASH FROM BACKERS SUCH AS ROSS PEROT AND CANON INC OF JAPAN TODAY MR JOBS IS UNVEILING A SOFTWARE PROGRAM FOR INTEL CORP'S LINE OF MICROPROCESSORS A PROGRAM THAT HE PORTRAYS AS CRUCIAL TO NEXT'S FUTURE THE PROGRAM CALLED NEXTSTEP HAS WON ACCLAIM FROM SOFTWARE CRITICS BECAUSE IT MAKES CUSTOMIZING PROGRAMS QUICK AND EASY BUT UNTIL TODAY THE SOFTWARE RAN ONLY ON NEXT'S OWN ILLFATED COMPUTERS WHICH WEREN'T COMPATIBLE WITH INTEL'S INDUSTRYSTANDARD CHIPS MR JOBS ENVISIONS HIS NEXTSTEPFORINTEL PRODUCT AS AN INDUSTRY RALLYING POINT HE SAYS THAT OUT OF FRUSTRATION WITH MICROSOFT CORP WHICH DOMINATES THE SOCALLED SYSTEMSOFTWARE BUSINESS THAT HE IS ENTERING HEAVYWEIGHTS SUCH AS HEWLETTPACKARD CO SUN MICROSYSTEMS AND NOVELL INC WILL MELD NEXTSTEP INTO THEIR OWN SOFTWARE STRATEGIES MAKING IT A DE FACTO STANDARD BUT SO FAR INDUSTRY REACTION HAS BEEN COOL WITH JUST A HANDFUL OF PC MAKERS SUCH AS HEWLETTPACKARD AND DELL COMPUTER CORP AGREEING TO OFFER NEXTSTEP SIMPLY AS AN OPTION TO CUSTOMERS THIS GIVES MR JOBS A SHOT AT SURVIVING AS A NICHE PLAYER BUT NOT A CHANCE TO RETURN TO STARDOM THE REASON WHILE HE COULDN'T MAKE UP HIS MIND ABOUT PUTTING NEXTSTEP ON STANDARD HARDWARE HIS CHIEF RIVALS MICROSOFT NOVELL AND A PARTNERSHIP BETWEEN APPLE AND INTERNATIONAL BUSINESS MACHINES CORP BEGAN SCRAMBLING TO MATCH NEXTSTEP'S FEATURES FAILING TO JUMP ON INTEL'S BANDWAGON FASTER HAS COST HIM VALUABLE TIME SAYS JOHN WARNOCK CHAIRMAN OF ADOBE SYSTEMS INC AND A LONGTIME FRIEND ALL THIS AMOUNTS TO A STEEP FALL FROM A VERY LOFTY PERCH MR JOBS LED AND INSPIRED THE TEAM THAT CREATED THE MOST ACCLAIMED PERSONAL COMPUTER APPLE'S MACINTOSH BUT HIS NEXT WORKSTATION SEEMS DESTINED TO BECOME A HIGHTECH MUSEUM RELIC HE HIMSELF IS FIGHTING TO SHOW HE STILL MATTERS IN THE COMPUTER INDUSTRY PEOPLE HAVE STOPPED PAYING ATTENTION TO HIM SAYS RICHARD SHAFFER EDITOR OF COMPUTER LETTER IT'S SAD INDEED THE DECLINE OF MR JOBS ILLUSTRATES THE WAY IN CORPORATE AFFAIRS A POWERFUL PERSONALITY CAN GENERATE EITHER A BONANZA OR A DISASTER DEPENDING ON THE MILIEU HIS LEGENDARY TRAITS HIS IMPERIOUSNESS HIS DEMAND FOR COMPLETE CONTROL HIS FAITH IN HIS OWN GENIUS SERVED HIM WELL AT APPLE WHERE HE HAD TO OVERCOME MUCH SKEPTICISM BUT BADLY AT NEXT HIS INSISTENCE ON COMPLETE CONTROL OVER A PROJECT WITH IBM FOR EXAMPLE DOOMED A 1989 AGREEMENT THAT WOULD HAVE LENT BIG BLUE'S BACKING TO NEXT'S SOFTWARE AND HE LOST VALUABLE TIME LAST YEAR WHEN HE IGNORED ADVISERS' REPEATED WARNINGS THAT NEXT COULDN'T COMPETE IN HARDWARE AND SHOULD BECOME A SOFTWARE COMPANY HE INSISTED THAT NEW MACHINES WOULD SAVE NEXT SAYS VINCENT JORDAN DIRECTOR OF SOFTWARE DEVELOPMENT AT WILTEL CORP AND A MEMBER OF A NEXT ADVISORY BOARD IN THE GOOD OLD DAYS AT APPLE NO ONE HAD TO SUGGEST THAT MR JOBS STAY IN TOUCH WITH NO FORMAL TRAINING IN COMPUTING HE DIVINED THE SHAPE OF THINGS TO COME HIS PRODUCT PLANNING AMOUNTED TO MAKING WHAT HE LIKED ALTHOUGH THIS LED TO BIG FLOPS SUCH AS THE LISA AND APPLE III COMPUTERS THAT DIDN'T SELL AND DRAINED RESOURCES IT ALSO RESULTED IN THE APPLE II THE FIRST WILDLY POPULAR PC AND LATER THE ELEGANT AND EASYTOUSE MACINTOSH HIS PERSONALITY QUIRKS WERE TOLERATED INSISTING ON INSANELY GREAT WORK HE BULLIED SUBORDINATES WHO DIDN'T MEET HIS STANDARDS AND PUBLICLY SCOFFED AT DEFECTORS IF WE WANTED TO WE COULD CRUSH YOU LIKE A BUG HE ONCE WARNED AN APPLE EMPLOYEE WHO QUIT TO START HIS OWN FIRM HE OFTEN TREATED BUSINESS PARTNERS WITH DISDAIN TOO IN THE EARLY 1980S FOR EXAMPLE HE UPBRAIDED MICROSOFT CHIEF EXECUTIVE WILLIAM GATES III FOR WRITING NONAPPLE SOFTWARE HE WOULD ORDER MR GATES TO FLY TO APPLE HEADQUARTERS AT A MOMENT'S NOTICE STEPHEN MANES AND PAUL ANDREWS WRITE IN THEIR BOOK GATES THE TWO JOURNALISTS ADD AT THE TIME GATES HAD LITTLE CHOICE BUT TO OBLIGE JOBS WAS THE INDUSTRY'S TOP DOG BUT AFTER A SALES SLUMP IN 1985 MR JOBS WAS OUSTED AS CHAIRMAN BY APPLE'S BOARD AMID COMPLAINTS THAT HE WAS ARROGANT HOTHEADED AND UNWILLING TO HEED CRITICISM MR JOBS HAD A VISION SO PURE THAT HE COULDN'T ACCOMMODATE THE WORLD JOHN SCULLEY WHO BESTED MR JOBS IN THE BOARDROOM BATTLE FOR APPLE'S REINS WROTE LATER AFTER LEAVING APPLE MR JOBS FOUNDED NEXT BRINGING WITH HIM SEVERAL LOYALISTS WHO WERE BENT ON CREATING A PATHBREAKING COMPUTER STEVE JOBS TOLD US I'M GOING TO BUILD THE WORLD'S BEST MACHINES FOR ACADEMIC COMPUTING' RECALLS RAYMOND NEFF VICE PRESIDENT FOR INFORMATION SERVICES AT CASE WESTERN RESERVE UNIVERSITY BUT THIS TIME MR JOBS'S VISION PROVED FLAWED THE MACINTOSH HAD SOLD WELL DESPITE ITS DEFECTS IT WAS SLOW AND EXPENSIVE BECAUSE IT WAS SO EASY TO USE MR JOBS SOUGHT TO TAKE THAT TACK FURTHER AT NEXT COMBINING EASYTOUSE SOFTWARE WITH NEWFANGLED GADGETS SUCH AS AN OPTICALDISK DRIVE BUT UNLIKE THE MACINTOSH WHICH HAD FLOURISHED IN A LARGELY UNTAPPED MARKET THE EXPENSIVE SLOW NEXT MACHINE HAD TO TAKE ON BIG ENTRENCHED RIVALS WHEN IT WAS INTRODUCED IN 1988 STEVE'S TROUBLE WAS THAT HE TRIED TO DO ANOTHER APPLE SAYS JEANLOUIS GASSEE A FORMER APPLE EXECUTIVE HE IS LIKE A PERSON WHO GOES FROM MARRIAGE TO MARRIAGE TRYING TO GET THE SAME RELATIONSHIP MR JOBS TENACIOUSLY STUCK TO HIS VISIONS EVEN THOUGH HIS ALLIES ADVOCATED CHANGES ONE BEFUDDLING EXAMPLE WAS HIS INSISTENCE THAT NEXT'S COMPUTERS HAVE ONLY THE OPTICALDISK DRIVE INSTEAD OF INDUSTRYSTANDARD FLOPPYDISK DRIVES MR JOBS SAID THE OPTICAL DRIVE WOULD LET USERS CARRY ALL THEIR FILES AND SOFTWARE AROUND ON ONE DISK A VISION HE CALLED THE WORLD IN YOUR POCKET HIS ARGUMENT SAYS A FORMER COLLEAGUE WAS THAT WE'VE FIGURED IT OUT AND EVERYONE ELSE WILL CATCH UP OPTICALDISK DRIVES ARE INDEED EXPECTED TO BECOME STANDARD IN THE FUTURE BUT MR JOBS WAS TOO FAR AHEAD OF THE CROWD SOFTWARE MAKERS REFUSED TO PUT PROGRAMS ON OPTICAL DISKS AND NEXT'S DISTRIBUTORS CUSTOMERS AND ENGINEERS CLAMORED FOR A FLOPPY DRIVE IN LATE 1989 FRUSTRATION WITH MR JOBS'S INTRANSIGENCE BOILED OVER AT A STAFF MEETING WHERE AN EMPLOYEE ASKED HIM WHEN NEXT WOULD INSTALL FLOPPY DRIVES MR JOBS INSISTED A FLOPPY WASN'T NECESSARY ANOTHER EMPLOYEE PERSISTED AND SOON THE MEETING ERUPTED IN A CHANT WE NEED A F FLOPPY WE NEED A F FLOPPY STILL MR JOBS REFUSED THOUGH HE RELENTED SOON AFTERWARD AGREEING TO DESIGN A FLOPPY INTO A FUTURE MODEL DESPITE A WEAK START MR JOBS INKED A STUNNING DEAL WITH IBM IN 1989 THAT COULD HAVE TURNED NEXTSTEP INTO A BIG PLAYER IBM THEN HEAVILY DEPENDENT ON MICROSOFT FOR OPERATING SOFTWARE AGREED TO ADAPT NEXTSTEP FOR ITS OWN PCS AND WORKSTATIONS BIG BLUE'S BACKING APPEARED TO ENSURE MR JOBS'S REBOUND IN THE COMPUTER INDUSTRY IF IBM USED NEXTSTEP ITS RIVALS WOULD SOON WANT IT AND NEXTSTEP'S SPREAD WOULD HELP NEXT'S COMPUTER SALES BUT AT THE CRUCIAL MOMENT MR JOBS DOOMED THE DEAL BY INSISTING ON COMPLETE CONTROL OVER NEXTSTEP'S FUTURE USES AND DEVELOPMENT SAYS DAN'L LEWIN A NEXT COFOUNDER AND MR JOBS'S SECONDINCOMMAND AT THE TIME STEVE GOT AFRAID THAT IBM WAS GOING TO TAKE AWAY SOME OF NEXT'S HARDWARE BUSINESS BY PACKAGING NEXTSTEP WITH IBM MACHINES MR LEWIN SAYS SO HE KEPT TOTAL CONTROL OVER THE DEVELOPMENT OF NEXTSTEP AND THAT ELIMINATED THE CHANCE THAT IBM WOULD BACK IT BECAUSE IBM WILL NOT SHIP A PRODUCT THAT THEY CANNOT AT LEAST SHAPE THE FUTURE OF MR JOBS SAYS THE IBM DEAL FOUNDERED BECAUSE IBM INSISTED ON GETTING THE RIGHTS TO ANY FUTURE NEXT SOFTWARE AND WANTED NEXT'S SOFTWARE TO RUN ON TOP OF IBM'S OWN OPERATING SYSTEM BUT LEE REISWIG CHIEF OF IBM'S PCSOFTWARE BUSINESS SAYS IBM MIGHT HAVE USED NEXTSTEP AS ITS FUTURE OPERATING SYSTEM IF MR JOBS HAD AGREED TO QUICKLY ADAPT IT TO INTEL MICROPROCESSORS AND NOT BEEN SO AFRAID OF IBM HURTING HIS HARDWARE BUSINESS WE JUST COULDN'T GET HIM ACROSS THE HURDLE SO WE BEGAN TO LOOK AT ALTERNATIVES MR REISWIG SAYS EVENTUALLY IBM FORMED A JOINT VENTURE WITH APPLE CALLED TALIGENT TO BUILD AN OPERATING SYSTEM THAT MORE THAN DUPLICATED NEXTSTEP NEXT WENT INTO A LONG SLOW SLIDE MR JOBS'S CONCENTRATION ON HIGHEREDUCATION MARKETS GAVE WAY TO AN INTEREST IN SELLING TO CORPORATIONS BUT IN THAT ROUGHANDTUMBLE MARKET RIVALS SUCH AS HEWLETTPACKARD AND SUN TURNED OUT FASTER MODELS MORE QUICKLY AND AT LOWER PRICES AND NEXT'S SALES FAILED TO GROW MUCH MR JOBS COMPOUNDED HIS PROBLEMS BY DOGGEDLY STICKING TO A MOTOROLA INC MICROPROCESSOR THAT HIS RIVALS WERE ABANDONING IN FAVOR OF FASTER CHIPS AT THE SAME TIME MR JOBS DRAGGED HIS FEET ON A PRODUCT THAT MANY CONSIDERED NEXT'S MOST IMPORTANT A VERSION OF NEXTSTEP THAT RUNS ON PCS USING INTEL'S 486 MICROPROCESSOR HE SAID IN JANUARY 1992 THAT THE INTEL VERSION WOULD BE OUT BY FALL OF 1992 BUT THE PROJECT HIT SERIOUS DELAYS NEXT'S CUSTOMERS URGED MR JOBS TO STOP POURING RESOURCES INTO HARDWARE DEVELOPMENT AND CONCENTRATE ON DEVELOPING SOFTWARE ESPECIALLY THE INTEL VERSION HIS REACTION WAS SO COOL THAT A DAY BEFORE A GROUP OF ADVISERS WAS TO MEET WITH HIM IN JUNE 1992 THEY AGREED TO CONFRONT HIM WITH A UNANIMOUS MESSAGE NEXT COULDN'T COMPETE IN SOFTWARE WHILE HARDWARE INVESTMENTS IN NEW MODELS WERE DRAINING ITS RESOURCES MR JOBS ENAMORED WITH HIS MACHINES IGNORED THE ADVICE MEANWHILE MR JOBS'S CHIEF LIEUTENANTS BEGAN JUMPING SHIP BY LAST FALL EVERY SIGNIFICANT COFOUNDER HAD LEFT THOSE THAT REMAINED WHILE ATTRACTED BY MR JOBS'S VIRTUES WERE INCREASINGLY SUBJECTED TO HIS LEGENDARY TEMPER EVERYBODY JUST LIVED IN FEAR OF HIM SAYS MAX HENRY A NEXT VICE PRESIDENT WHO LEFT TO START A SOFTWARE COMPANY HE WOULD SPEND A LOT MORE TIME BEATING UP PEOPLE THAN THANKING THEM FOR DOING IT RIGHT BY LATE LAST YEAR PETER VAN CUYLENBERG THEN NEXT'S CHIEF OPERATING OFFICER WAS TELLING MR JOBS THAT NEXT WOULD RUN OUT OF MONEY IN 1993 IF IT DIDN'T MAKE DRASTIC CHANGES MR JOBS FINALLY ENDORSED A SOFTWAREONLY PLAN IN FEBRUARY WHEN NEXT CLOSED ITS COMPUTER FACTORY AND SAID IT WOULD LAY OFF MORE THAN HALF ITS 536 EMPLOYEES IT MADE ME SAD BUT WE HAD NO CHOICE MR JOBS SAYS SADDER STILL ARE THOSE WHO BOUGHT HIS VISIONS MANY WHO JOINED NEXT EXPECTED TO CASH IN STOCK OPTIONS WHEN IT WENT PUBLIC AS MR JOBS PROMISED IT WOULD BUT HASN'T AVADIS TEVANIAN A NEXT SOFTWARE DESIGNER CHOSE TO WORK FOR MR JOBS IN 1988 REJECTING A JOB OFFER FROM MR GATES WHO WOOED HIM WITH MICROSOFT STOCK OPTIONS THAT WOULD NOW BE VALUED AT MILLIONS OF DOLLARS I'D BE LYING TO YOU IF I TOLD YOU I HAD NO REGRETS AT ALL SAYS MR TEVANIAN WHO ADDS THAT NEXT STILL OFFERS HIM A WONDERFUL CREATIVE CHALLENGE I CAN COMPUTE RIGHT DOWN TO THE DOLLAR WHAT MY NET WORTH WOULD BE IF I'D JOINED MICROSOFT INVESTORS SUCH AS MR PEROT AND CANON HAVE ALSO TAKEN A HIT IN 1989 CANON INVESTED 100 MILLION IN NEXT FOR A 17 STAKE PLUS ANOTHER 15 MILLION LAST YEAR WHILE EXTENDING A LINE OF CREDIT CONVERTIBLE INTO STOCK IN 1987 NEXT RECEIVED 20 MILLION FROM MR PEROT THE TEXAS BILLIONAIRE A CANON SPOKESMAN SAYS THE JAPANESE COMPANY IS STUDYING WAYS TO RECOUP VALUE FROM ITS INVESTMENT A SPOKESMAN FOR MR PEROT DECLINES TO COMMENT MR JOBS'S NEW START AS A SOFTWARE COMPANY PROBABLY HAS COME TOO LATE WHEN NEXTSTEP WAS RELEASED FOUR YEARS AGO IT USED A PATHBREAKING APPROACH CALLED OBJECTORIENTED PROGRAMMING IN WHICH PROGRAMMERS CAN PLUG TOGETHER MODULAR PIECES OF SOFTWARE TO CREATE PROGRAMS MORE QUICKLY TODAY OBJECT PROGRAMMING HAS BEEN WIDELY EMBRACED PUTTING MR JOBS'S COMPETITIVE POSITION AT RISK MICROSOFT FOR INSTANCE SUGGESTS ITS CODE WRITERS ALREADY HAVE SURPASSED NEXTSTEP WE'RE DOING A LOT MORE THAN NEXTSTEP AND WE'LL HAVE IT FINISHED A LOT SOONER THAN HE THINKS SAYS JIM ALLCHIN WHO LEADS MICROSOFT'S DEVELOPMENT EFFORT INDEED MICHAEL SLADE WHO LEFT MICROSOFT TWO YEARS AGO TO BECOME MR JOBS'S CHIEF LIEUTENANT SAYS HE LEFT NEXT IN NOVEMBER RATHER THAN BUTT HEADS WITH THE GOLIATHS I WANTED TO GET OUT OF BUSINESSES WHERE YOU'RE DIRECTLY COMPETING WITH MICROSOFT MR SLADE SAYS IN APRIL MR JOBS WAS ALSO DEALT A SIGNIFICANT DEFEAT WHEN IBM HEWLETTPACKARD SUN NOVELL AND SEVERAL OTHER SOFTWARE CONCERNS FORMED THEIR ALLIANCE TO STANDARDIZE IMPORTANT ASPECTS OF WORKSTATION SOFTWARE AND LEFT OUT NEXT IN A MARCH 17 MEMO TO EMPLOYEES MR JOBS FOUND A SILVER LINING IN THE SNUB TELLING COLLEAGUES THAT THE ALLIES HAD NOT CHOSEN ANYTHING INSTEAD OF NEXTSTEP EITHER MOREOVER HE WROTE HIS STAFF THAT HP AND NOVELL REALLY LIKE NEXTSTEP WHILE THIS IS TRUE NEITHER COMPANY PLANS TO PUT NEXTSTEP AT THE CENTER OF ITS SOFTWARE STRATEGY SAY KNOWLEDGEABLE PEOPLE EVEN MR JOBS'S SUPPORTERS ARE PESSIMISTIC LAWRENCE ELLISON CHAIRMAN OF ORACLE CORP AND A CLOSE FRIEND SAYS THAT FOR MR JOBS TO RETURN TO THE MAJOR LEAGUES HE MUST PERSUADE A LEADING PLAYER SUCH AS NOVELL TO TAKE A SIZABLE EQUITY STAKE IN NEXT AND AGREE TO CODEVELOP AND MARKET FUTURE VERSIONS OF NEXTSTEP SIMPLY HAVING PERSUADED PC MAKERS TO SELL NEXTSTEP AS ONE OF MANY SOFTWARE OPTIONS WON'T PROPEL MR JOBS BACK TO COMPUTING'S MAINSTREAM HE SAYS FORMER CLOSE ASSOCIATES SAY HE NEEDS TO JUST GO ON TO SOMETHING ELSE IF HE WANTS TO RISE TO THE TOP OF PC WORLD AGAIN BUT GEORGE CROWE A NEXT COFOUNDER WHO LEFT RECENTLY FEELS THE ODDS ARE MR JOBS WHO INSISTS HE WILL RIDE OUT THE STORM AT NEXT WON'T JUMP SHIP HE'S REALLY STAKED HIS REPUTATION ON NEXT AND I DON'T SEE HOW HE CAN WALK AWAY MR CROWE SAYS MR JOBS UNDAUNTED SPINS VISIONS OF BATTLES THAT NEXT IS POISED TO WIN IN THE MARCH 17 MEMO HE ACCUSED SUN OF TRYING TO THWART NEXT'S EFFORTS CONTENDING WE REPRESENT A REAL THREAT TO THEIR ASPIRATIONS TO BECOME A MAJOR SOFTWARE PLAYER AND I THINK THEY WOULD RATHER HAVE US DEAD THAN ALIVE SUN'S CHIEF EXECUTIVE SCOTT MCNEALY RESPONDS I DON'T THINK A COMPANY THE SIZE OF NEXT SURVIVES NO MATTER HOW IMPRESSIVE ITS TECHNOLOGY YET MR JOBS TALKS OF NEXTSTEP AS THE OPERATING SYSTEM OF THE '90S PARTLY BECAUSE EVERYONE WANTS AN ALTERNATIVE TO MICROSOFT AND HE CONTINUES TO CONTEND THAT MR GATES CAN'T MATCH HIS OWN RECORD OF INNOVATION BEING THE RICHEST MAN IN THE CEMETERY DOESN'T MATTER TO ME HE SAYS GOING TO BED AT NIGHT SAYING WE'VE DONE SOMETHING WONDERFUL THAT'S WHAT MATTERS TO ME 9404260023 930524 MACANDREWS & FORBES SAYS IT PLANS OFFERING OF COLEMAN CO DEBT NEW YORK MACANDREWS & FORBES HOLDINGS INC CONTROLLED BY INVESTOR RONALD PERELMAN SAID IT WILL OFFER 1203 MILLION OF CONVERTIBLE DEBT IN ITS COLEMAN CO CAMPINGGEAR UNIT BY ISSUING LIQUID YIELD OPTION NOTES MACANDREWS & FORBES WHICH ALSO CONTROLS COSMETICS MAKER REVLON GROUP SAID IT EXPECTS TO RECEIVE PROCEEDS OF ABOUT 1157 MILLION WHICH WILL BE USED TO REPAY DEBT OF A UNIT INCURRED IN CONNECTION WITH THE ACQUISITION OF COLEMAN ANY REMAINING NET PROCEEDS WILL BE DISTRIBUTED TO MACANDREW & FORBES THE OFFERING IS BEING MADE BY THE COMPANY'S COLEMAN WORLDWIDE CORP UNIT MACANDREWS & FORBES CURRENTLY OWNS 82 OF COLEMAN CO'S OUTSTANDING SHARES LIQUID OPTION NOTES COMMONLY KNOWN AS LYONS ARE ZEROCOUPON CONVERTIBLE BONDS THAT ARE SOLD AT A DEEP DISCOUNT TO FACE VALUE AND DON'T PAY ANY ANNUAL INTEREST THE YIELD DERIVES FROM THE PRICE APPRECIATION THAT OCCURS AS THE LYON ADVANCES TOWARD MATURITY LIKE OTHER CONVERTIBLE BONDS A LYON CAN BE SWAPPED FOR A PREDETERMINED NUMBER OF SHARES OF THE ISSUING COMPANY'S COMMON STOCK AND IN A SPECIAL WRINKLE LYONS HAVE A POPULAR PUT OPTION THAT ALLOWS THE INVESTOR TO SELL THEM BACK TO THE ISSUER AT CERTAIN INTERVALS USUALLY AFTER FIVE YEARS AND THEN 10 YEARS MACANDREW & FORBES' LYONS HAVE AN AGGREGATE PRINCIPAL AMOUNT AT MATURITY IN 2013 OF 500 MILLION THE YIELD TO MATURITY IS 725 PER YEAR COMPUTED ON A SEMIANNUAL BOND EQUIVALENT BASIS EACH LYON CAN BE EXCHANGED FOR 7853 COLEMAN SHARES A 135 PREMIUM TO THE COLEMAN CLOSING PRICE ON THE DATE OF THE OFFERING MERRILL LYNCH & CO WHICH INVENTED LYONS IN 1985 AND IS THE UNDERWRITER FOR THE OFFERING HAS A 30DAY OPTION TO BUY AS MUCH AS AN ADDITIONAL 75 MILLION PRINCIPAL AMOUNT AT MATURITY OF LYONS COLEMAN SHARES CLOSED DOWN 50 CENTS TO 2650 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY 9404260021 930524 BUSINESS BRIEF QFB PARTNERS GROUP GETS HOLDERS' BACKING FOR PETROLANE RESTRUCTURING PETROLANE GAS SERVICE LP A MAJOR PROPANE GAS MARKETER THAT IS IN BANKRUPTCY PROCEEDINGS MOVED A STEP CLOSER TO BEING RESTRUCTURED AND PARTIALLY ACQUIRED BY AMERIGAS INC A UNIT OF UGI CORP QFB PARTNERS AN INVESTMENT GROUP AND ITS PETROLANE UNIT SAID THEY RECEIVED STRONG CREDITOR AND EQUITY HOLDER BACKING FOR THE PREPACKAGED REORGANIZATION AND SALE OF PETROLANE AS A RESULT QFB AND ITS SUBSIDIARIES FILED PETITIONS WITH THE US BANKRUPTCY COURT IN NEW YORK SEEKING CONFIRMATION OF THE REORGANIZATION PLAN UGI A VALLEY FORGE PA ELECTRIC AND GAS UTILITY AND PROPANE GAS MARKETER HAS SOUGHT TO ACQUIRE PETROLANE FOR ABOUT TWO YEARS AND HAD SAID IT EXPECTED TO BEGIN THE ACQUISITION BY AUG 1 ACCORDING TO UGI THE PLAN CALLS FOR A RESTRUCTURING OF 1 BILLION IN PETROLANE DEBT PETROLANE WOULD SUBSEQUENTLY BECOME 70OWNED BY ITS CURRENT BONDHOLDERS AND 30OWNED BY AMERIGAS 9404260177 930413 SOFTWARE CONCERN AND SOME OFFICERS ACCUSED IN SUITS BY ELEENA DE LISSER STAFF REPORTER OF THE WALL STREET JOURNAL SHAREHOLDERS HAVE FILED FOUR LAWSUITS AGAINST POLICY MANAGEMENT SYSTEMS CORP AND SOME OF ITS EXECUTIVES CHARGING THEM WITH INSIDER TRADING AMONG OTHER THINGS THE COMPANY SAID THREE OF THE SUITS FILED IN A FEDERAL COURT IN COLUMBIA SC LAST WEEK CONTAIN ALLEGATIONS THAT THE COMPANY'S TOP EXECUTIVES INCLUDING GEORGE LARRY WILSON PRESIDENT MISREPRESENTED THE COMPANY'S FINANCIAL HEALTH THE COMPLAINTS ALLEGE THAT THE EXECUTIVES KNEW FOR MONTHS THAT EARNINGS GROWTH WASN'T GOING TO BE AS STRONG AS EXPECTED AND USED THIS INSIDE KNOWLEDGE TO THEIR OWN BENEFIT BY SELLING LARGE AMOUNTS OF THEIR STOCK LAST YEAR SOME OF THE SHARES AS RECENTLY AS LAST NOV 25 THE COMPANY'S STOCK PLUMMETED 46 LAST WEEK AFTER THE COMPANY DISCLOSED THAT FIRSTQUARTER EARNINGS WEREN'T AS STRONG AS EXPECTED ONE OF THE SUITS ALLEGES THAT BETWEEN MAY 26 1992 AND LAST TUESDAY MR WILSON SOLD 71584 SHARES FOR A PROFIT OF ABOUT 54 MILLION DONALD A COGGIOLA EXECUTIVE VICE PRESIDENT SOLD 31958 SHARES FOR A PROFIT OF 24 MILLION THE LAWSUIT ALLEGES ROBERT L GRESHAM EXECUTIVE VICE PRESIDENT SOLD 15000 SHARES FOR A PROFIT OF 12 MILLION CHARLES F CALLAHAN ALSO EXECUTIVE VICE PRESIDENT SOLD 19500 SHARES FOR A PROFIT OF 12 MILLION IN THE SAME PERIOD THE LAWSUIT ALLEGES POLICY MANAGEMENT A PROVIDER OF SOFTWARE AND RELATED SERVICES TO THE INSURANCE INDUSTRY SAID IN A STATEMENT THAT IT DISAGREES WITH THE ALLEGATIONS AND INTENDS TO VIGOROUSLY DEFEND THE SUIT THE EXECUTIVES COULDN'T BE REACHED FOR COMMENT BUT JAMES P BROWN GENERAL COUNSEL FOR THE COMPANY BASED IN BLYTHEWOOD SC SAID THE EXECUTIVES SOLD SOME OF THEIR SHARES BECAUSE THEY WERE ANTICIPATING AN UNFAVORABLE TAX CLIMATE UNDER THE CLINTON ADMINISTRATION ONE LAWSUIT ALLEGES AMONG OTHER THINGS THAT THE COMPANY ISSUED A SERIES OF STATEMENTS THROUGH MARCH ASSURING STOCKHOLDERS THAT THE COMPANY WAS MEETING ITS INTERNAL FINANCIAL GOALS AND GROWTH TARGETS AND THAT IT WAS ENCOUNTERING STRONG DEMAND FOR ITS PRODUCTS AND SERVICES POLICY MANAGEMENT LAST WEEK BLAMED ITS DISAPPOINTING RESULTS ON CUSTOMER CAUTION AND UNCERTAINTY ABOUT THE IMPLICATIONS OF HEALTHCARE REFORM IT ALSO SAID SEVERAL EXPECTED CONTRACTS HADN'T CLOSED WHILE ANOTHER CONTRACT WITH THE NEW JERSEY MARKET TRANSITION FACILITY WAS WINDING DOWN QUICKER THAN ORIGINALLY ANTICIPATED THE COMPANY ANNOUNCED THEN THAT FIRSTQUARTER REVENUE COULD BE 14 MILLION TO 15 MILLION BELOW ITS FORECAST OF 135 MILLION TO 136 MILLION AND THAT PERSHARE EARNINGS COULD DROP 26 CENTS TO 28 CENTS BELOW ITS EXPECTATION OF 70 CENTS A SHARE THE COMPANY ADDED THAT FIRSTQUARTER RESULTS WOULD INCLUDE PRETAX NET GAINS ON INVESTMENT SECURITIES OF ABOUT 28 MILLION YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE STOCK CLOSED AT 45 A SHARE UNCHANGED ON VOLUME OF 179600 SHARES 9404260174 930428 PEPSICO POSTS 11 PROFIT RISE BEFORE CHARGES BY ELEENA DE LISSER STAFF REPORTER OF THE WALL STREET JOURNAL PEPSICO INC SAID FIRSTQUARTER PROFIT WAS UP 11 BEFORE A YEAREARLIER CHARGE BOLSTERED BY A STRONG SHOWING IN ITS DOMESTIC BEVERAGE AND SNACK BUSINESS BUT PEPSI'S STOCK EDGED DOWN YESTERDAY APPARENTLY IN REACTION TO WEAK PROFITS OVERSEAS THE PURCHASE NY FOOD AND SOFTDRINK CONCERN REPORTED NET INCOME OF 2604 MILLION OR 32 CENTS A SHARE FOR THE FIRST QUARTER COMPARED WITH A PROFIT OF 235 MILLION OR 29 CENTS A SHARE A YEAR EARLIER BEFORE ACCOUNTING CHANGES AS REPORTED MANDATED ACCOUNTING CHANGES FOR RETIREE BENEFITS AND INCOME TAXES PROMPTED PEPSI TO RESTATE RESULTS FOR THE 1992 FIRST QUARTER RESULTING IN A LOSS OF 6924 MILLION OR 86 CENTS A SHARE REVENUE IN THE MOST RECENT QUARTER CLIMBED 13 TO 509 BILLION FROM 450 BILLION A YEAR EARLIER THE COMPANY'S RESULTS WERE SLIGHTLY BELOW ANALYSTS' ESTIMATES WHICH RANGED FROM 33 CENTS TO 35 CENTS A SHARE PEPSI'S SHARE PRICE YESTERDAY FELL AS LOW AS 35 BEFORE CLOSING AT 36625 OFF 625 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE MOST ANALYSTS SAID THEY WERE UNCONCERNED WITH THE LOWERTHANEXPECTED PERSHARE EARNINGS CITING EXPENSES FROM TWO RECENT FOREIGN ACQUISITIONS AND AN UNFAVORABLE CURRENCY EXCHANGE AS HAMPERING EARNINGS GROWTH FACTOR OUT THESE ITEMS SAID JOSEPH DOYLE AN INDUSTRY ANALYST WITH SMITH BARNEY HARRIS UPHAM & CO AND PEPSI'S RESULTS WOULD HAVE BEEN WITHIN ANALYSTS' ESTIMATES THE MAJOR GROUPS WERE SURPRISINGLY STRONG ESPECIALLY DOMESTIC SOFT DRINKS AND DOMESTIC SNACKS HE SAID THE STOCK MARKET SAID DAVID GOLDMAN AN OPPENHEIMER & CO BEVERAGE INDUSTRY ANALYST OVERREACTED TO PEPSI'S FIRSTQUARTER RESULTS THE COMPANY'S INTERNATIONAL OPERATIONS HE SAID HAVE BEEN CRANKING OUT 20PLUS EARNINGS GAINS FOR A WHILE AND WE HAVE ONE QUARTER OF SLIPPAGE AND EVERYONE RUNS SCREAMING TO THE HILLS IN THE US THE FRITOLAY UNIT TURNED IN A SOLID FIRST QUARTER POSTING A 9 VOLUME INCREASE DRIVEN IN PART BY DOUBLEDIGIT GAINS IN LAY'S TOSTITOS AND SUNCHIPS SNACK LINES FRITO LAY'S INTERNATIONAL PROFITS DECLINED 10 TO 46 MILLION BECAUSE OF SOFT VOLUMES AND EXPENSES LINKED TO IMPROVING A SNACKFOOD OPERATION IN MEXICO IN PEPSI'S BEVERAGE BUSINESS DOMESTIC PROFITS ROSE 22 TO 172 MILLION HELPED IN PART BY BOTTLER ACQUISITIONS AND LOWER DISCOUNTS TO RETAILERS OPERATIONS ALSO BENEFITED FROM LOWER INGREDIENT COSTS THE COMPANY SAID DOMESTIC CASE VOLUME INCREASED 3 REFLECTING THE NATIONAL ROLLOUT OF CRYSTAL PEPSI AND GROWTH OF THE COMPANY'S MOUNTAIN DEW BRANDS ON THE INTERNATIONAL SIDE BEVERAGE PROFITS FELL 28 TO 83 MILLION PRIMARILY BECAUSE OF ACQUISITION COSTS IN SPAIN INTERNATIONAL BOTTLER CASE SALES INCREASED 5 RESTAURANT PROFITS BENEFITED FROM A STRONG DOMESTIC PERFORMANCE PROFITS AT KFC TRIPLED IN THE US REFLECTING A SHIFT TO HIGHERPRICED ITEMS SALES AT OUTLETS OPEN AT LEAST A YEAR HOWEVER DECLINED 3 AT PIZZA HUT SAMESTORE SALES FOR DOMESTIC RESTAURANTS INCREASED MORE THAN 3 INTERNATIONAL PROFITS FOR BOTH KFC AND PIZZA HUT SLIPPED BECAUSE OF PRICE COMPETITION IN AUSTRALIA WHICH IS PIZZA HUT'S LARGEST FOREIGN MARKET AND KFC'S SECONDLARGEST INTERNATIONAL MARKET AFTER JAPAN TACO BELL'S PROFITS FELL 4 HURT BY HIGHER INSURANCE COSTS AND CONTINUED INVESTMENT IN THE HOT 'N NOW HAMBURGER CONCEPT SAMESTORE SALES INCREASED ONLY 2 REFLECTING A CHANGE IN PRODUCT MIX TO INCLUDE HIGHERPRICED ITEMS 9404260176 930304 THE MAKING AND REMAKING OF A LIGHT' POTATO CHIP BY ELEENA DE LISSER STAFF REPORTER OF THE WALL STREET JOURNAL LESS WAS SUPPOSED TO BE MORE IT WASN'T FRITOLAY INC FOUND THAT OUT WHEN IT INTRODUCED ITS RUFFLES LIGHT LOWFAT POTATO CHIP THINKING IT HAD A BLOCKBUSTER IN THE MAKING AFTER ALL THE PEPSICO INC UNIT'S MARKETRESEARCH INDICATED CONSUMERS DESPERATELY WANTED A HEALTHIER ALTERNATIVE TO REGULAR CHIPS AND THAT SEEMED TO BE CONFIRMED WHEN FRITOLAY BEGAN TEST MARKETING THE LOWFAT CHIP ALONG WITH LOWFAT DORITOS AND CHEETOS ALMOST FIVE YEARS AGO SALES WERE STRONG ENOUGH THAT WITHIN 18 MONTHS THE COMPANY ROLLED THE PRODUCTS OUT NATIONALLY AND SPENT 13 MILLION IN 1990 PROMOTING THEM BUT ABOUT A YEAR LATER THE LOWFAT DORITOS AND CHEETOS WERE SCALED BACK TO THE WEST COAST MARKET AND TODAY ARE SOLD MOSTLY IN CALIFORNIA AND RUFFLES LIGHT ALTHOUGH REMAINING IN NATIONAL DISTRIBUTION SOMEWHAT CHANGED WASN'T THE SUCCESS ITS CREATORS HAD ANTICIPATED I HAD HOPED IT WOULD BE AN IMMEDIATE GIGANTIC BIT OF OUR BUSINESS BUT IT'S TAKEN US LONGER SAYS DWIGHT RISKEY FRITOLAY'S VICE PRESIDENT OF NEW PRODUCTS WHAT WENT WRONG CONSUMERS MAY HAVE BEEN ASKED TO SACRIFICE TOO MUCH IN TASTE TO SAVE TOO FEW CALORIES AN OUNCE OF RUFFLES LIGHT CHIPS CONTAINS 130 CALORIES AND SIX GRAMS OF FAT COMPARED WITH 150 CALORIES AND 10 GRAMS OF FAT FOR REGULAR RUFFLES FOR MARGARET PATTERSON OF CHICAGO THAT JUST WASN'T GOOD ENOUGH SHE THOUGHT THE NEW CHIPS LACKED PUNCH SHE HAS SINCE SWITCHED TO PRETZELS THAT HAVE LESS FAT AND CALORIES THAN THE RUFFLES LIGHT CHIPS LARRY ALLEN A 22YEAROLD BODYBUILDER FROM YPSILANTI MICH SAYS HE LIKED THE LOWFAT CHIPS BETTER THAN REGULAR RUFFLES THE LIGHT VERSION HE SAYS DIDN'T TASTE QUITE AS POLLUTED AS THE REGULAR RUFFLES WITH ALL THAT GREASINESS BUT MR ALLEN EXPRESSES DOUBTS ABOUT THE PRODUCT SOMETIMES WHEN THEY SAY LIGHT' IT'S NOT AS LIGHT AS THEY ADVERTISE IT TO BE WHEN THE PRODUCT FAILED TO TAKE OFF FRITOLAY CONDUCTED FOLLOWUP TASTE TESTS THE COMPANY DECIDED NOT TO TAMPER WITH RUFFLE LIGHT'S CALORIE AND FAT CONTENT BUT TO TRY TO IMPROVE THE TASTE INSTEAD IT BECAME MORE SELECTIVE IN THE POTATOES IT USED IT LINED THE PACKAGES WITH FOIL TO KEEP THEM FRESHER AND CRISPIER AND RENAMED THE PRODUCT RUFFLES LIGHT CHOICE THE CHANGES HELPED FRITOLAY SAYS SALES OF RUFFLES LIGHT CHOICE TOTALED 454 MILLION IN 1992 COMPARED WITH 303 MILLION THE YEAR BEFORE BUT THE PRODUCT IS STILL FAR BEHIND SUNCHIPS A NEWER FRITOLAY MULTIGRAIN PRODUCT THAT HAS 150 CALORIES AND EIGHT GRAMS OF FAT PER OUNCE SUNCHIPS HAD SALES OF 100 MILLION IN 1991 ITS FIRST YEAR ON THE MARKET AND 192 MILLION LAST YEAR STILL MR RISKEY REMAINS CONFIDENT ABOUT RUFFLES LIGHT CHOICE REFERRING TO LOWFAT SALTY SNACKS SUCH AS POTATO CHIPS HE SAYS IT'S A HUGE OPPORTUNITY I DON'T THINK IT'S BEEN TOTALLY CAPTURED YET BUT PROGRESS HAS BEEN MADE AND WE'RE AT THE FOREFRONT OF THAT PROGRESS 9404220215 930614 BUSINESS & RACE BY LEON E WYNTER BLACKS ARE LESS INFORMED ABOUT HEALTH ISSUES THAN WHITES STUDIES SHOW AND DON'T READ FITNESS MAGAZINES AS OFTEN TWO NEW PUBLICATIONS AIM TO FILL THAT GAP HEART & SOUL IS A VENTURE OF RODALE PRESS PUBLISHER OF PREVENTION AND OTHER MAGAZINES IN EMMAUS PA AND REGINALD D WARE A BLACK ENTREPRENEUR FROM CINCINNATI WHO HAS BEEN DEVELOPING THE MAGAZINE FOR FOUR YEARS THIS WEEK RODALE WILL PLACE 245000 COPIES OF HEART & SOUL'S FIRST ISSUE ON NEWSSTANDS AND IN DOCTORS' OFFICES NATIONWIDE WITH FULLCOLOR GRAPHICS HEART & SOUL RESEMBLES OTHER MASSMARKET HEALTH MAGAZINES BUT IT COVERS SUBJECTS OF PARTICULAR INTEREST TO BLACKS LIKE TAKING THE FAT OUT OF SOUL FOOD AND PREVENTING BREAST CANCER WHICH HITS BLACK WOMEN EARLIER AND MORE OFTEN THAN WHITES HEALTHQUEST A QUARTERLY PUBLISHED BY LEVAS INC OF ATLANTA HAS A BROADER FOCUS COVERING THE POLITICAL ASPECTS OF BLACK ACCESS TO HEALTH CARE AND THE ROLE OF RACISM IN STRESSRELATED ILLNESS AMONG OTHER SUBJECTS PUBLISHER SARA M LOMAX SAYS SHE IS DETERMINED TO REDEFINE HEALTH INFORMATION SO IT'S SOMETHING PEOPLE CAN EMBRACE TO EMPOWER THEMSELVES HEALTHQUEST'S FIRST ISSUE WITH A CONTROLLED CIRCULATION OF 20000 WAS DISTRIBUTED IN MARCH THROUGH BLACK BOOKSTORES AND OTHER RETAILERS LEVAS HAS SOLD FOUR PAGES OF ADS FOR THE SECOND ISSUE DUE OUT NEXT MONTH VS NONE THE FIRST TIME AROUND BLACKS TEND TO BUY FEWER MAGAZINES THAN DO OTHER PEOPLE WARNS MARTIN S WALKER A NEW YORK MAGAZINE CONSULTANT BUT HE ADDS THAT THE BLACK HEALTH NICHE HOLDS PROMISE THOUGH HISPANICAMERICANS MAY BE READY FOR QUALITY MASSCIRCULATION SPANISHLANGUAGE MAGAZINES THE INDUSTRY IS STILL FIGURING OUT HOW TO DELIVER THEM MEDIA SPECIALISTS SAY HISPANICS DON'T READ MAGAZINES AS MUCH AS OTHER GROUPS BECAUSE GOOD TITLES TARGETED TO THEM ARE LACKING PART OF THE PROBLEM IS THAT THE SPANISHLANGUAGE BROADCAST INDUSTRY WHICH DELIVERS BIG AUDIENCES WITH TWO TELEVISION NETWORKS AND MORE THAN 200 RADIO STATIONS IN THE US ATTRACTS THE BULK OF ADVERTISING DOLLARS AIMED AT HISPANICS SPANISH PRINT MEDIA WITH NO SIZABLE NATIONAL PUBLICATIONS GET LESS THAN 5 OF HISPANICORIENTED AD REVENUE ESTIMATES MANUEL REYES OF FOCUS MEDIA A LOS ANGELES AD AGENCY THE NATION'S PRINT MEDIA AS A WHOLE ATTRACT ABOUT 40 OF AD BUDGETS HE SAYS MAS A SPANISHLANGUAGE MONTHLY PUT OUT BY UNIVISION HOLDINGS DISTRIBUTED 650000 FREE COPIES PER ISSUE OVER THREE YEARS IN AN EFFORT TO ATTRACT ADVERTISERS BUT MAS FOLDED LAST MONTH HAVING FAILED TO GENERATE ENOUGH AD REVENUE SONIA MARIA GREEN DIRECTOR OF HISPANIC MARKETING FOR AVON PRODUCTS SAYS SHE MISSES MAS THE REMAINING FEMALEORIENTED MAGAZINES IN SPANISH REACH ONLY ABOUT 200000 READERS AN ADVO SUBSIDIARY LAST MONTH BEGAN DISTRIBUTING 15 MILLION FREE COPIES OF A NEW MAGAZINE NUESTRA GENTE OUR PEOPLE IN ANOTHER ATTEMPT TO FILL THE GAP ADVO A BIG DIRECTMAIL COMPANY BASED IN WINDSOR CONN IS SATURATING CENSUS TRACTS THAT ARE AT LEAST 70 HISPANIC IN MOST MAJOR MARKETS SEARS ROEBUCK BOUGHT MOST OF THE AD PAGES IN THE FIRST ISSUE OF NUESTRA GENTE A SEARS SPOKESMAN SAYS THE PURCHASE WAS MORE LIKE AN EXTENSION OF OUR DIRECTMAIL EFFORT CONSUMERPRODUCTS' COMPANIES SWELLING INTEREST IN MINORITY SHOPPERS HAS DRAWN BIG RESEARCH FIRMS INTO THE ETHNICSURVEY BUSINESS WITH AFRICANAMERICAN MEDIA FIRMS AS INTERESTED PARTNERS A NEW SURVEY OF BLACK CONSUMER ATTITUDES BY YANKELOVICH PARTNERS AND BURRELL COMMUNICATIONS GROUP CHICAGO IS SELLING BRISKLY AT 20000 A COPY BUT THE REAL MEASURE OF SUCCESS WILL BE HOW THE DATA ARE USED SAYS KEN SMIKLE PUBLISHER OF TARGET MARKET NEWS A TRADE PUBLICATION HE SAYS THE RESEARCH IS AMMUNITION IN BLACK MARKETING FIRMS' BATTLE TO GAIN ADVERTISERS' ATTENTION FOR THE BLACK MARKET AND WE'VE NEEDED A FRESH CACHE OF BULLETS FOR A LONG TIME THE BURRELL/YANKELOVICH SURVEY ASKED 1000 BLACKS ABOUT THEMSELVES AND THE MARKETPLACE SIMMONS MARKET RESEARCH BUREAU NEW YORK AND ESSENCE COMMUNICATIONS NEW YORK PLAN TO QUERY 10000 AFRICANAMERICANS ON A CONTINUING BASIS A SIMMONS EXECUTIVE SAYS A PILOT STUDY OF 1000 PEOPLE PLANNED FOR NEXT MONTH IS BEING FUNDED BY SIX LARGE COMPANIES IN PACKAGED GOODS SERVICES AND OTHER BUSINESSES FOR ESSENCE PUBLISHER OF THE LEADING BLACK WOMEN'S MAGAZINE ETHNIC MARKET RESEARCH IS A NATURAL EXTENSION SAYS LEWIS C WILSON DIRECTOR OF CORPORATE MARKETING RESEARCH ESSENCE AIMS TO REACH BEYOND ITS READERSHIP TO PROVIDE US AS AFRICANAMERICANS WITH MORE INFORMATION ABOUT WHO AND WHAT WE ARE SAYS MR WILSON ASIANAMERICAN JOURNALISTS CHEERED CONNIE CHUNG'S ELEVATION TO COANCHOR OF THE CBS EVENING NEWS BUT THEY SAY ASIANAMERICAN MEN ARE ALMOST INVISIBLE IN THE ANCHOR CHAIR ASIANAMERICANS WHO MAKE UP 33 OF THE US POPULATION HELD 2 OF BROADCAST NEWSROOM JOBS IN 1992 ACCORDING TO THE RADIOTELEVISION NEWS DIRECTORS ASSOCIATION VERNON STONE THE GROUP'S RESEARCH DIRECTOR SAYS LITTLE HAS CHANGED SINCE 1987 WHEN ONETHIRD OF ASIAN FEMALES IN BROADCAST NEWSROOMS DID SOME NEWS ANCHORING BUT ONLY 3 OF MALES DID THERE IS NOT A SINGLE MALE ASIANAMERICAN NEWS ANCHOR THAT I KNOW OF SAYS SAN FRANCISCO BROADCAST REPORTER DAVID LOUIE A PAST PRESIDENT OF THE ASIAN AMERICAN JOURNALISTS ASSOCIATION WITH NONE IN THE PIPELINE THERE AREN'T GOING TO BE ANY EQUALING CONNIE CHUNG ANYTIME SOON STEREOTYPES OF ASIAN MALES AS SUBMISSIVE HAVE WORKED AGAINST THEIR BECOMING ANCHORS MR LOUIE SAYS THE LACK OF VISIBLE MALE ROLE MODELS HAS DISCOURAGED ASIAN MEN FROM ENTERING THE FIELD HE ADDS REINFORCING THE PROBLEM 9404220189 930611 YOUR MONEY MATTERS WEEKEND REPORT YOUR LIFETIME GUIDE TO MONEY THREE STEPS TO BECOMING A SUCCESSFUL INVESTOR BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL INVESTING CAN BE AS SIMPLE AS 1 2 3 FIRST YOU DECIDE HOW YOU'RE GOING TO DIVVY UP YOUR PORTFOLIO AMONG BROAD CATEGORIES LIKE STOCKS BONDS AND MONEY MARKET INSTRUMENTS SECOND YOU DECIDE HOW YOU WANT TO DIVERSIFY WITHIN EACH OF THESE CATEGORIES WHEN IT COMES TO PICKING BOND MARKET INVESTMENTS FOR INSTANCE YOU MIGHT CHOOSE TO BUY A MIX OF CORPORATE BONDS GOVERNMENT BONDS AND FOREIGN BONDS FINALLY HAVING SETTLED ON TARGET PERCENTAGES FOR THESE VARIOUS INVESTMENTS YOU PICK THE BEST MUTUAL FUNDS OR THE BEST INDIVIDUAL SECURITIES TO BUILD YOUR DESIRED PORTFOLIO THE FIRST DECISION HOW TO DIVIDE YOUR PORTFOLIO AMONG STOCKS BONDS AND MONEY MARKET INSTRUMENTS IS THE MOST CRITICAL YOUR ASSET ALLOCATION IS THE FUEL IN THE RETURN ENGINE SAYS JOHN CAMMACK A VICE PRESIDENT WITH BALTIMORE'S T ROWE PRICE ASSOCIATES MUTUAL FUND COMPANY HOW SHOULD YOU DIVIDE YOUR MONEY AMONG THE THREE MAJOR ASSETS THE ACCOMPANYING STORIES IN THIS ISSUE HIGHLIGHT SOME OF THE SPECIAL CONSIDERATIONS FOR PEOPLE IN EACH OF THREE BROAD AGE GROUPS 20S AND 30S 40S AND 50S AND 60S PLUS SEE RELATED STORY SMART INVESTING THROUGH THE AGES WSJ JUNE 11 1993 BUT IN GENERAL HOW YOU SHOULD ALLOCATE YOUR INVESTMENT MONEY DEPENDS ON YOUR TIME HORIZON IF YOU ARE GOING TO NEED YOUR MONEY IN THE NEAR FUTURE THEN MONEY MARKET INSTRUMENTS LIKE CERTIFICATES OF DEPOSIT SAVINGS ACCOUNTS AND MONEY FUNDS MAKE A LOT OF SENSE THESE INVESTMENTS WILL NEVER MAKE YOU RICH BUT THERE'S ALSO LITTLE OR NO CHANCE YOU WILL LOSE MONEY BUT IF YOU PLAN TO INVEST FOR ANYTHING MORE THAN A COUPLE OF YEARS STICKING WITH CDS AND SAVINGS ACCOUNTS CAN BE A TERRIBLE MISTAKE WHILE THESE SUPERSAFE INVESTMENTS MAY ELIMINATE THE RISK THAT YOU'LL LOSE MONEY OVER THE SHORT TERM THEY LEAVE YOU WIDE OPEN TO A POTENTIALLY MORE DANGEROUS RISK THE RISK THAT THE REAL VALUE OF YOUR MONEY WILL BE GRADUALLY EATEN AWAY BY INFLATION BECAUSE OF THE THREAT FROM INFLATION INVESTMENT ADVISERS TYPICALLY FAVOR A HEFTY DOSE OF STOCKS OR STOCK MUTUAL FUNDS PROVIDING YOU PLAN TO INVEST FOR AT LEAST FIVE YEARS IF YOU THINK OF RISK AS THE CHANCE THAT YOU'LL LOSE MONEY IN THE SHORT TERM THEN STOCKS ARE INDEED EXTREMELY RISKY BUT IF YOU HAVE THE TENACITY TO STICK WITH YOUR STOCK INVESTMENTS OVER FIVE YEARS OR LONGER THEN THE CHANCE OF LOSING MONEY IS SLIM JUST CONSIDER THIS SINCE THE END OF 1925 THERE HAVE BEEN 63 ROLLING FIVEYEAR PERIODS STARTING WITH THE FIVE YEARS ENDED DECEMBER 1930 CONTINUING ON TO THE FIVE YEARS THROUGH DECEMBER 1931 AND EVENTUALLY CONCLUDING WITH THE FIVE YEARS FINISHING IN DECEMBER 1992 OUT OF THOSE 63 FIVEYEAR PERIODS THERE HAVE BEEN ONLY SEVEN OCCASIONS WHEN STOCKS LOST MONEY ACCORDING TO DATA COMPILED BY IBBOTSON ASSOCIATES INC A CHICAGO CONSULTING FIRM FIVE OF THOSE SEVEN PERIODS OCCURRED BEFORE 1942 FOUR OF THEM DURING THE GREAT DEPRESSION SINCE THEN THERE HAVE BEEN ONLY TWO FIVEYEAR STRETCHES WHEN STOCKS HAVE LOST MONEY NOT ONLY ARE STOCKS UNLIKELY TO LOSE MONEY OVER LONG TIME PERIODS THEY ALSO DO A DANDY JOB OF OUTPACING INFLATION ACCORDING TO IBBOTSON ASSOCIATES STOCKS HAVE RETURNED 103 A YEAR SINCE THE END OF 1925 THAT COMPARES WITH 52 A YEAR FOR INTERMEDIATETERM GOVERNMENT BONDS AND 37 ANNUALLY FOR TREASURY BILLS INFLATION HAS RUN AT A 31 ANNUAL RATE OVER THE SAME PERIOD STOCKS HAVE THUS EARNED 72 PERCENTAGE POINTS A YEAR MORE THAN INFLATION SINCE 1925 COMPARED WITH AN ANNUAL 21 PERCENTAGE POINTS ABOVE INFLATION FOR INTERMEDIATETERM GOVERNMENT BONDS THE STELLAR RETURNS NOTCHED UP BY STOCKS CAN TRANSLATE INTO BIG SUMS OF MONEY BECAUSE OF THE WAY THAT MONEY COMPOUNDS OVER TIME IF YOU FIGURE IN INFLATION IT WOULD TAKE JUST 10 YEARS FOR YOUR STOCK MARKET MONEY TO DOUBLE IN VALUE BASED ON HISTORICAL RETURNS AND BONDS HISTORY SUGGESTS THAT YOU WOULD HAVE TO WAIT MORE THAN 33 YEARS TO SEE YOUR MONEY GROW 100 BECAUSE STOCKS PERFORM HANDSOMELY OVER LONG PERIODS FINANCIAL ADVISERS USUALLY SUGGEST PUTTING A LARGE CHUNK OF A RETIREMENT PORTFOLIO INTO THE STOCK MARKET THE MORE YEARS YOU HAVE TO GO UNTIL RETIREMENT THE BIGGER THAT CHUNK SHOULD BE BONDS AND MONEY MARKET INSTRUMENTS ADD SOME DOWNSIDE PROTECTION TO A PORTFOLIO AS A RESULT THEY CAN BE PARTICULARLY APPROPRIATE FOR OLDER INVESTORS WHO DON'T HAVE DECADES TO RECOUP THEIR LOSSES FROM ANY BIG STOCK MARKET DROP BUT THESE DAYS FINANCIAL ADVISERS SAY THAT EVEN RETIREES SHOULD KEEP A HEALTHY PORTION OF THEIR PORTFOLIOS IN STOCKS WITHIN THE BROAD STOCK AND BOND CATEGORIES INVESTORS SHOULD TRY TO OWN A WIDE ARRAY OF SECURITIES SAYS LEWIS J ALTFEST PRESIDENT OF LJ ALTFEST & CO A MANHATTAN INVESTMENT ADVISER AMONG STOCK MARKET INVESTMENTS FOR INSTANCE MR ALTFEST ADVISES OWNING RISKY FOREIGN STOCKS SMALLCOMPANY STOCKS AND FASTEXAPANDING GROWTH STOCKS BUT HE THINKS THESE RISKIER SECURITIES SHOULD BE COMBINED WITH MORE SEDATE STOCK MARKET INVESTMENTS LIKE VALUE STOCKS WHICH ARE CHEAP COMPARED WITH CURRENT EARNINGS OR CORPORATE ASSETS AND INCOME STOCKS WHICH PAY HEFTY DIVIDENDS BY INCLUDING A WIDE RANGE OF SECURITIES INVESTORS CAN MAKE THEIR PORTFOLIOS FAR MORE TRANQUIL THAN IF THEY OWNED JUST ONE OR TWO STOCKS AND BONDS INVESTMENT ADVISER JOHN BLANKINSHIP JR BELIEVES MUTUAL FUNDS ARE THE BEST WAY TO TAP INTO THE SECURITIES MARKETS BECAUSE THEY ALLOW SMALL INVESTORS TO BUY DIVERSIFIED PORTFOLIOS RUN BY PROFESSIONAL MONEY MANAGERS FUNDS ARE ESPECIALLY USEFUL FOR BUYING INTO EXOTIC AREAS LIKE FOREIGN STOCKS AND HIGHYIELD JUNK BONDS WHICH ARE DIFFICULT FOR INVESTORS TO TAP INTO DIRECTLY UNLESS YOUR PORTFOLIO IS WORTH 2 MILLION OR MORE IT'S DIFFICULT TO GET PROPER DIVERSIFICATION BY BUYING INDIVIDUAL SECURITIES ARGUES MR BLANKINSHIP OF BLANKINSHIP & FOSTER A DEL MAR CALIF INVESTMENT FIRM MR BLANKINSHIP DOESN'T ALWAYS USE MUTUAL FUNDS THOUGH I MAKE AN EXCEPTION FOR TREASURY SECURITIES WHICH INVESTORS CAN BUY DIRECTLY FROM THE FEDERAL RESERVE WITHOUT PAYING A COMMISSION INVESTORS MAY ALSO WANT TO SKIP MUTUAL FUNDS WHEN IT COMES TO BUYING US STOCKS SAYS JOHN MARKESE PRESIDENT OF CHICAGO'S AMERICAN ASSOCIATION OF INDIVIDUAL INVESTORS HE SAYS HE BELIEVES DILIGENT INVESTORS MAY BE ABLE TO ADD TO THEIR RETURNS BY PICKING INDIVIDUAL STOCKS ESPECIALLY IF THEY BARGAIN HUNT AMONG SMALLERCOMPANY STOCKS THAT ARE LESS CLOSELY FOLLOWED BY WALL STREET ANALYSTS AND THUS ARE MORE LIKELY TO BE UNDERVALUED PICKING GOOD INVESTMENTS IS JUST ONE PART OF SUCCESSFUL INVESTING THE OTHER PART IS HOLDING DOWN COSTS LIKE BROKERAGE COMMISSIONS MUTUAL FUND ANNUAL EXPENSES AND TAXES INVESTORS WILLING TO MAKE INVESTMENT DECISIONS ON THEIR OWN CAN SAVE MONEY AND THEREBY BOOST THEIR RETURNS BY USING A DISCOUNT BROKERAGE FIRM AND BY BUYING NOLOAD MUTUAL FUNDS WHICH DON'T CHARGE A SALES COMMISSION AND ALL INVESTORS CAN CUT DOWN ON TAXES BY MAKING FULL USE OF INDIVIDUAL RETIREMENT ACCOUNTS TAXDEFERRED VARIABLE ANNUITIES AND EMPLOYERSPONSORED 401K RETIREMENT PLANS MR MARKESE SAYS INVESTORS SHOULD STRIVE TO KEEP THEIR FINANCES SIMPLE MOST INVESTORS HE SAYS SHOULD PROBABLY OWN NO MORE THAN EIGHT MUTUAL FUNDS AND NO MORE THAN 15 INDIVIDUAL STOCKS OF COURSE THE WORLD OF INVESTMENT OPTIONS DOESN'T END WITH MUTUAL FUNDS AND INDIVIDUAL STOCKS WHAT ABOUT ALL THOSE OTHER INVESTMENTS LIKE LIMITED PARTNERSHIPS COMMODITY POOLS PENNY STOCKS OPTIONS AND FUTURES MOST OF THOSE THINGS ARE EITHER VERY DIFFICULT TO UNDERSTAND OR IMPOSSIBLE TO UNDERSTAND FOR INDIVIDUAL INVESTORS SAYS MR MARKESE DON'T INVEST IN ANYTHING THAT YOU DON'T FULLY UNDERSTAND THERE'S A WHOLE LAUNDRY LIST OF THINGS TO AVOID FROM PENNY STOCKS TO EXOTIC DERIVATIVES ASSET ALLOCATION IF YOU DECIDE TO PUT 30 OF YOUR PORTFOLIO IN BONDS 50 IN STOCKS AND 20 IN A MONEY MARKET FUND YOU'VE JUST MADE AN ASSETALLOCATION DECISION HOW YOU ALLOCATE YOUR ASSETS IS THE BIGGEST DETERMINANT OF YOUR INVESTMENT RETURNS FOR INSTANCE EVEN IF YOU OWN THE BESTPERFORMING MONEY FUND OVER TIME YOU WILL NEVER DO AS WELL AS SOMEBODY WHO OWNS A MEDIOCRE STOCK FUND COMPOUNDING WALL STREETERS LOVE TO TALK ABOUT THE MAGIC OF COMPOUNDING WHAT MAGIC IF YOU EARN 10 A YEAR FOR FOUR YEARS YOU DON'T EARN 40 BUT 464 THE REASON AS TIME GOES ON YOU MAKE MONEY NOT ONLY ON YOUR ORIGINAL INVESTMENT BUT ALSO ON YOUR EARLIER GAINS DIVERSIFICATION A FANCY WORD FOR DON'T PUT ALL YOUR EGGS IN ONE BASKET BY DIVERSIFYING AND THUS OWNING A BUNCH OF DIFFERENT SECURITIES YOU AVOID THE RISK THAT YOUR PORTFOLIO WILL GET SEVERELY HURT BECAUSE A SINGLE STOCK OR BOND TURNS SOUR GROWTH THIS LABEL IS APPLIED BOTH TO A STYLE OF INVESTING AND TO A TYPE OF MUTUAL FUND GROWTH MUTUAL FUNDS INVEST FOR CAPITAL GAINS THEY DON'T NECESSARILY USE THE GROWTHSTOCK INVESTMENT STYLE WHICH INVOLVES BUYING STOCKS THAT HAVE THE POTENTIAL FOR RAPID EARNINGS GROWTH RISK LIKE BEAUTY IT'S IN THE EYE OF THE BEHOLDER STOCKS ARE CONSIDERED RISKY BECAUSE THEY CAN SUFFER SHARP SHORTTERM LOSSES IN VALUE BUT IF YOU'RE A LONGTERM INVESTOR WHO'S CONCERNED ABOUT PRESERVING THE PURCHASING POWER OF YOUR MONEY THEN STOCKS AREN'T NEARLY AS RISKY AS BONDS OR MONEY FUNDS TOTAL RETURN THIS IS THE TRUE RETURN EARNED BY AN INVESTOR IT REFLECTS NOT ONLY THE YIELD THE DIVIDEND AND INTEREST PAYMENTS YOU GET BUT ANY CHANGE IN THE PRICE OF THE SECURITY AS MANY HIGHYIELD JUNKBOND INVESTORS FOUND OUT IN 1989 AND 1990 IT'S QUITE POSSIBLE TO HAVE AN INVESTMENT THAT HAS A GREAT YIELD AND AN ATROCIOUS TOTAL RETURN VALUE MONEY MANAGERS WHO USE THE VALUE INVESTING STYLE LOOK FOR STOCKS THAT ARE CHEAP BASED ON CORPORATE ASSETS OR CURRENT EARNINGS THESE INVESTORS ARE OFTEN CONTRASTED WITH GROWTHSTOCK INVESTORS WHO LEAN TOWARD PRICIER STOCKS 9404220206 930504 OTC FOCUS COMPOSITE INDEX ADVANCES 529 POINTS TECHNOLOGY BIOTECH ISSUES LEAD RALLY BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TECHNOLOGY AND BIOTECHNOLOGY STOCKS LED A REBOUND IN THE OVERTHECOUNTER MARKET THE NASDAQ COMPOSITE INDEX ROSE 529 OR 080 TO 66671 ADVANCING ISSUES OUTNUMBERED DECLINERS 1369 TO 1231 ON TOTAL VOLUME OF 2023 MILLION SHARES DOWN FROM FRIDAY'S 227 MILLION SHARES A RALLY IN BOND PRICES HELPED SPARK THE RISE IN THE NASDAQ MARKET TRADERS SAID THE BOUNCE IN STOCK PRICES CAUGHT MANY BY SURPRISE A LOT OF INVESTORS THOUGHT THE MARKET WAS GOING LOWER AND WHEN IT DIDN'T THEY JUMPED IN SO THEY WOULDN'T MISS SOME BUYING OPPORTUNITIES SAID PETER COOLIDGE A SENIOR EQUITY TRADER AT KIDDER PEABODY & CO WE SAW SOME INTEREST WE HAVEN'T SEEN IN THE LAST COUPLE OF WEEKS PETER DAPUZZO HEAD OF OTC TRADING AT CANTOR FITZGERALD SAID BARGAIN HUNTERS STARTED TO PAY HIGHER PRICES FOR THE STOCKS THAT MAY ALREADY HAVE HIT BOTTOM THE MORNING STARTED OFF SOLID AND THE AFTERNOON FINISHED WITH SOME GOOD BUYING IN THE BEATEN GLAMOUR STOCKS SUCH AS BIOTECHNOLOGY AND TECHNOLOGY ISSUES HE SAID SEVERAL LARGE TECHNOLOGY STOCKS POSTED GAINS INTEL JUMPED 1 7/8 TO 97 CISCO SYSTEMS CLIMBED 2 TO 43 1/4 APPLE COMPUTER ROSE 5/8 TO 51 7/8 AND MICROSOFT ADVANCED 5/8 TO 86 1/8 AMERICA ONLINE SURGED 4 1/4 TO 30 1/2 IN A SECURITIES AND EXCHANGE COMMISSION FILING PAUL ALLEN MICROSOFT'S COFOUNDER SAID THAT WHILE HE HASN'T ANY CURRENT PLANS HE MAY SEEK TO ACQUIRE THE VIENNA VA PROVIDER OF COMPUTERINFORMATION SERVICES MR ALLEN WHO IS PRESIDENT OF CLOSELY HELD SOFTWARE CONCERN ASYMETRIX CORP OF BELLEVUE WASH SAID HE ALSO IS CONSIDERING ACQUIRING AN ADDITIONAL STAKE IN AMERICA ONLINE AND MAY SEEK BOARD REPRESENTATION AT THE COMPANY CURRENTLY MR ALLEN HOLDS ABOUT 14 MILLION SHARES ACCORDING TO THE FILING EQUAL TO ABOUT 25 OF THE SHARES OUTSTANDING INTELLIGENT ELECTRONICS A RETAILER OF MICROCOMPUTER TECHNOLOGIES AND OFFICE PRODUCTS ROSE 1 TO 14 1/2 THE EXTON PA COMPANY SAID ITS BOARD APPROVED EXPANDING ITS BUYBACK PROGRAM TO SEVEN MILLION SHARES THE COMPANY SAID THE BOARD ALSO APPROVED A ONETIME SPECIAL DIVIDEND OF 2 A SHARE PAYABLE JUNE 1 TO STOCK OF RECORD MAY 17 MERRILL LYNCH RAISED ITS LONGTERM INVESTMENT RATING TO BUY FROM ABOVE AVERAGE AND MAINTAINS ITS INTERMEDIATETERM RATING AT ABOVE AVERAGE THERE WAS A BROAD UPSWING IN BIOTECHNOLOGY STOCKS AMGEN EDGED UP 3/4 TO 40 3/4 BIOGEN JUMPED 2 1/8 TO 35 1/4 AND SYNERGEN ROSE 5/8 TO 10 5/8 CHIRON ALSO SURGED CLIMBING 3 3/4 TO 58 A PHASE II STUDY CONDUCTED AND PRESENTED BY THE NATIONAL INSTITUTES OF ALLERGY AND INFECTIOUS DISEASES SAID THAT A VACCINE MADE BY BIOCINE CO A JOINT VENTURE OF CHIRON AND CIBAGEIGY CAN SIGNIFICANTLY REDUCE THE FREQUENCY OF HERPES OUTBREAKS CELTRIX PHARMACEUTICALS CLIMBED 1 1/2 TO 9 1/2 THE STOCK ROSE AS INVESTORS ANTICIPATED THIS MORNING'S PRESENTATION OF DATA FROM THE PHASE II CLINICAL TRIAL OF THE COMPANY'S DRUG BETAKINE OPPENHEIMER & CO ANALYST JEFFREY CASDIN SAID THE STUDY HAS YIELDED INCREDIBLY STRONG DATA ON THE POTENTIAL ADVANTAGES OF BETAKINE IN TREATING MACULAR HOLES WHICH ARE RUPTURES IN THE CENTER OF THE RETINA OF THE EYE VENTRITEX SURGED 4 1/4 TO 27 3/4 THE COMPANY SAID IT RECEIVED FOOD AND DRUG ADMINISTRATION APPROVAL TO MARKET ITS CADENCE IMPLANTABLE DEFIBRILLATOR THE DEVICE THE SUNNYVALE CALIF COMPANY'S FIRST COMMERCIALLY AVAILABLE PRODUCT TREATS ABNORMALLY FAST HEART RATES WITH A SERIES OF GRADUATED ELECTRICAL IMPULSES RAYMOND JAMES & ASSOCIATES RAISED ITS INVESTMENT RATING TO BUY FROM HOLD AND VECTOR SECURITIES INITIATED COVERAGE WITH A BUY RATING FIDELITY NEW YORK FSB JUMPED TO 13 1/2 FROM AN OFFERING PRICE OF 11 1/2 FIDELITY NEW YORK OFFERED 5170839 COMMON SHARES IN CONNECTION WITH ITS CONVERSION TO A FEDERALLY CHARTERED STOCK SAVINGS BANK FROM A FEDERALLY CHARTERED MUTUAL SAVINGS BANK FRONTIER ADJUSTERS OF AMERICA ROSE 3/8 TO 3 1/8 THE PHOENIX ARIZCOMPANY REPORTED EARNINGS OF FIVE CENTS A SHARE FOR ITS FISCAL THIRD QUARTER ENDED MARCH 31 UP FROM FOUR CENTS A SHARE THE YEAR EARLIER THE COMPANY LICENSES AND FRANCHISES INSURANCECLAIMS ADJUSTERS DOLCO PACKAGING JUMPED 3 1/2 TO 12 1/4 THE SHERMAN OAKS CALIF COMPANY POSTED FIRSTQUARTER EARNINGS OF 92 CENTS A SHARE ALMOST TRIPLING ITS YEAREARLIER EARNINGS OF 33 CENTS A SHARE DOLCO MAKES STYROFOAM PACKAGING MATERIALS SUCH AS EGG CARTONS HYDE ATHLETIC INDUSTRIES SHARES ROSE IN ACTIVE TRADING TO CLOSE AT 27 1/4 UP 3 1/4 AFTER THE CLOSE THE FOOTWEAR MAKER REPORTED SHARPLY HIGHER NET INCOME OF 14 MILLION OR 51 CENTS A SHARE ON A 64 JUMP IN SALES TO 312 MILLION IT CITED STRONG SALES OF ITS SAUCONY FOOTWEAR BRAND AND ITS BROOKFIELD TRADITIONAL AND INLINE ROLLER SKATES 9404220202 930409 BEVERAGE FIRMS EXPECTED TO POST 1STPERIOD GAINS COCACOLA'S PROFIT INCREASE IS PUT AT ABOUT 17 PEPSI'S AS MUCH AS 20 BY ELEENA DE LISSER STAFF REPORTER OF THE WALL STREET JOURNAL THE BEVERAGE COMPANIES ARE EXPECTED TO POST MOSTLY HIGHER FIRSTQUARTER EARNINGS BOLSTERED BY THE CONTINUING UPTICK IN CONSUMER SPENDING COCACOLA CO IS EXPECTED TO REPORT EARNINGS GAINS OF ABOUT 17 ANALYSTS SAID WHILE PEPSICO INC'S NET INCOME IS EXPECTED TO HAVE JUMPED BETWEEN 17 AND 20 COCACOLA ENTERPRISES INC IS EXPECTED TO POST A SLIGHTLY IMPROVED FIRST QUARTER BUT SOME ANALYSTS ARE STILL ANTICIPATING A SMALL LOSS AT A&W BRANDS INC EARNINGS COULD BE FLAT WHILE NET INCOME IS EXPECTED TO HAVE FALLEN AT ANHEUSERBUSCH COS THE QUARTER ALSO MARKS THE FIRST REPORTED PERIOD FOR DR PEPPER/SEVENUP COS AND SNAPPLE BEVERAGE CO SINCE GOING PUBLIC RECENTLY ANALYSTS ANTICIPATE THAT BOTH COMPANIES WILL POST SOLID EARNINGS ATLANTABASED COCACOLA IS EXPECTED TO HAVE EARNED ABOUT 34 CENTS A SHARE UP FROM 29 CENTS A SHARE THE YEAR EARLIER ANALYSTS ESTIMATE THAT FIRSTQUARTER VOLUME ROSE ABOUT 3 IN THE US AND ABOUT 3 TO 4 INTERNATIONALLY IN OVERSEAS MARKETS SUCH AS JAPAN GERMANY ITALY AND BRAZIL COKE'S SALES REMAIN SOFT BECAUSE OF ECONOMIC TENSIONS THE VOLUME INCREASES WERE BELOW NORMAL BUT WE CALL IT RESPECTABLE CONSIDERING THE ECONOMIC CONDITIONS ABROAD SAID JOSEPH DOYLE AN INDUSTRY ANALYST WITH SMITH BARNEY HARRIS UPHAM & CO EARNINGS AT PEPSI BASED IN PURCHASE NY ARE EXPECTED BY ANALYSTS TO HAVE INCREASED TO BETWEEN 34 AND 35 CENTS A SHARE FROM 29 CENTS A YEAR EARLIER DOMESTIC VOLUME ROSE ABOUT 4 HELPED BY THE LAUNCH OF CRYSTAL PEPSI AND STRONG SALES OF MOUNTAIN DEW SAID EMANUEL GOLDMAN OF PAINEWEBBER INC AMONG ITS SNACKFOOD AND RESTAURANT DIVISIONS PEPSI IS EXPECTED TO REPORT STRONG RESULTS FRITOLAY SHOULD TURN IN A POSITIVE QUARTER WITH A 10 INCREASE IN UNIT VOLUME THANKS TO SOLID SALES OF ITS MULTIGRAIN SNACK SUN CHIPS AND ITS LAYS AND RUFFLES POTATOCHIP BRANDS PROFITS CLIMBED ABOUT 15 FOR TACO BELL KFC AND PIZZA HUT COMBINED ACCORDING TO MR GOLDMAN HE ALSO EXPECTS SAMESTORE SALES ROSE 3 AT TACO BELL AND PIZZA HUT WITH KFC COMING IN SLIGHTLY HIGHER A&W BRANDS OF WHITE PLAINS NY IS EXPECTED TO REPORT FLAT EARNINGS OF ABOUT 28 CENTS A SHARE VOLUME LEVELS WERE OFF 6 TO 7 IN JANUARY AND FEBRUARY BUT REBOUNDED IN MARCH ANALYSTS SAID FOR THE QUARTER VOLUME OF CONCENTRATE SALES WILL BE DOWN ABOUT 2 SAID SMITH BARNEY'S MR DOYLE COKE AND PEPSI BOTTLERS WHICH DISTRIBUTE ABOUT 60 OF A&W BRANDS' BEVERAGES WERE BUSY DISTRIBUTING OTHER PRODUCTS NAMELY CRYSTAL PEPSI SAID MR DOYLE AS A RESULT HE ADDED THAT CUT INTO A&W'S DISTRIBUTION IN THEIR FIRST PUBLIC QUARTER DR PEPPER/SEVENUP AND SNAPPLE BEVERAGES ARE EXPECTED TO HAVE RACKED UP STRONG RESULTS DR PEPPER/SEVENUP OF DALLAS IS EXPECTED TO REPORT EARNINGS OF ABOUT 17 CENTS A SHARE COMPARED WITH A PROFORMA FIGURE OF 13 CENTS A YEAR EARLIER MR GOLDMAN ESTIMATED HE ADDED THAT SNAPPLE WILL REPORT ABOUT 13 CENTS A SHARE VS A PRO FORMA THREE CENTS A SHARE A YEAR EARLIER SNAPPLE IS BENEFITING FROM ITS ENTRY LAST YEAR INTO NEW MARKETS IN THE MIDWEST AND SOUTH COCACOLA ENTERPRISES THE GIANT COKE BOTTLER BASED IN ATLANTA IS EXPECTED TO HAVE HAD A BREAKEVEN QUARTER OR TO HAVE SLIGHTLY IMPROVED EARNINGS PAINEWEBBER'S MR GOLDMAN ESTIMATES ONE CENT A SHARE VS A LOSS OF TWO CENTS A SHARE LAST YEAR VOLUME IS ESTIMATED TO HAVE INCREASED 3 ST LOUISBASED ANHEUSERBUSCH IS EXPECTED TO REPORT FIRSTQUARTER EARNINGS OF ABOUT 69 CENTS A SHARE ANALYSTS SAID DOWN FROM 74 CENTS A YEAR EARLIER SHIPMENTS WERE DOWN ABOUT 7 AND SALES TO RETAIL OUTLETS WERE OFF 2 DUE TO RAINY WEATHER IN CALIFORNIA AND THE WINTER BLIZZARD THAT SLAMMED THE EAST COAST ALSO A NEW BREWERY IN GEORGIA WHICH HAS GIVEN THE COMPANY ADDITIONAL CAPACITY MEANS INVENTORIES DIDN'T HAVE TO BE BUILT UP SO EARLY IN THE YEAR BUT ONE ANALYST SAID THE EXPECTED EARNINGS DECLINE IS INDICATIVE OF A GREATER PROBLEM THE EARNINGS OUTLOOK FOR ANHEUSERBUSCH HAS BEEN DEPENDENT ON PROJECTED PRICE INCREASES SAID MR DOYLE OF SMITH BARNEY BUT AS CONSUMERS CONTINUE TO TRADE DOWN TO LESSEXPENSIVE BREWS ANHEUSERBUSCH WON'T BE ABLE TO RAISE PRICES AND COULD FIND ITSELF VULNERABLE BECAUSE OF THE HIGH PORTION OF ITS VOLUME THAT IS PREMIUMPRICED HE SAID 9404220213 930205 MARKETING SPORTING GOODS SHOW TIME BY ELEENA DE LISSER THE SPORTINGGOODS BUSINESS HAVING SLIMMED DOWN CONSIDERS WAYS TO WIN OVER SHOPPERS WITH SLIMMEDDOWN WALLETS A PROJECTED 90000 INDUSTRY REPRESENTATIVES WILL GATHER IN ATLANTA THIS WEEKEND FOR THE ANNUAL SUPER SHOW A COLLECTION OF 9000 BOOTHS FEATURING THE LATEST IN FITNESS EQUIPMENT SPORTS APPAREL AND FOOTWEAR THE INDUSTRY'S SALES SHOULD CLIMB ABOUT 5 THIS YEAR TO 342 BILLION ACCORDING TO THE SPORTING GOODS MANUFACTURERS ASSOCIATION A TRADE GROUP IN NORTH PALM BEACH FLA THAT'S A SLIGHT ACCELERATION FROM 1992'S 45 INCREASE BUT STILL WELL BELOW THE DOUBLEDIGIT GAINS OF THE 1980S THE INDUSTRY'S MODERATE GROWTH IN RECENT YEARS HAS PROMPTED MANY COMPANIES TO SLASH INVENTORIES THOSE CUTBACKS COMBINED WITH LOW INTEREST RATES THAT HAVE MADE DEBT BURDENS MORE MANAGEABLE HAVE LEFT MANY SPORTINGGOODS COMPANIES POSITIONED FOR MORE PROFITABLE DAYS SAYS JOHN HORAN EDITOR OF THE NEWSLETTER SPORTING GOODS INTELLIGENCE THE BIGGEST INCREASE IN CONSUMER DEMAND OVER THE NEXT SEVERAL YEARS IS LIKELY TO COME IN SPORTS EQUIPMENT PARTICULARLY HOMEEXERCISE GEAR FOR WEIGHTCONSCIOUS BABY BOOMERS INDUSTRY EXECUTIVES SAY FOR THIS YEAR THE SPORTINGGOODS MANUFACTURERS' GROUP PROJECTS SALES OF FITNESS EQUIPMENT WILL RISE 45 TO 116 BILLION THAT INCREASE IS ON A PAR WITH TWO CATEGORIES IN WHICH GROWTH HAS SLOWED FROM THE LATE '80S APPAREL PROJECTED TO RISE BETWEEN 45 AND 5 THIS YEAR TO ABOUT 145 BILLION AND FOOTWEAR EXPECTED TO CLIMB 4 TO 79 BILLION MANY INDUSTRY EXECUTIVES SAY THEY ARE OPTIMISTIC IN THE NEAR TERM BUT SOME CLOUDS HOVER OVER THE SHOW A SURVEY BY KURT SALMON ASSOCIATES AN ATLANTA CONSULTING FIRM INDICATES THE NUMBER OF SPORTINGGOODS OUTLETS IS EXPECTED TO PEAK AT ABOUT 21000 STORES IN 1995 AND THEN SHRINK TO SOME 18000 STORES BY 2010 THAT LARGELY REFLECTS THE GROWING PROPORTION OF BIGGER OUTLETS AND CHAINS ANOTHER THREAT TO THE INDEPENDENT RETAILER COMES FROM MANUFACTURERS SUCH AS NIKE AND REEBOK INTERNATIONAL WHICH OWN AND OPERATE A HANDFUL OF THEIR OWN STORES AND ARE LIKELY TO EXPAND SQUEEZED FOR TIME MORE FITNESS BUFFS ARE DECIDING TO STAY AT HOME ELABORATE GYMS THAT OCCUPY BASEMENTS AND BEDROOMS ARE AMONG THE BEST SELLERS IN THE SPORTINGGOODS INDUSTRY ONE BIG ATTRACTION IS THE TIME SAVED FROM THEIR OWNERS NOT HAVING TO GO TO THE HEALTH CLUB SAYS MR HORAN AT SPORTING GOODS INTELLIGENCE A STATIONARY BICYCLE USED TO BE ENOUGH FOR MOST PEOPLE BUT THE OVER40 SET IS DECIDING THEIR HEART NEEDS A TREADMILL SAYS ELLIE BALLEW A SPOKESWOMAN FOR PRECOR A BOTHELL WASH MAKER OF EXERCISE EQUIPMENT OWNED BY PREMARK INTERNATIONAL SALES OF TREADMILLS ROSE 19 IN 1991 THE LATEST YEAR FOR WHICH FIGURES ARE AVAILABLE TO 550 MILLION REPORTS THE NATIONAL SPORTING GOODS ASSOCIATION A TRADE GROUP IN MOUNT PROSPECT ILL SALES OF STAIRCLIMBERS JUMPED 44 TO 1948 MILLION IN 1991 THE APPEAL AND PRICES OF MANY OF THE DEVICES IS HEIGHTENED BY THEIR ABUNDANT BELLS AND WHISTLES INDUSTRY CONSULTANTS SAY HEARTRATE MONITORS AND DIGITAL READOUTS OF CALORIES BURNED AND DISTANCE TRAVELED HAVE BECOME COMMON ONE CASUALTY IN ALL THIS SWEATING AND STRAINING HAS BEEN THE ROWING MACHINE WHOSE SALES PLUNGED 85 TO 378 MILLION IN 1991FROM A PEAK OF 2451 MILLION IN 1985 INDUSTRY EXECUTIVES SAY THE MACHINES SIMPLY BORE MANY USERS WHILE PUTTING TOO MUCH STRAIN ON SOME PEOPLE'S BACKS AFTER YEARS OF PRODUCING CLOTHING WITH THE LOGOS OF PROFESSIONAL AND COLLEGIATE TEAMS MAKERS OF LICENSED APPAREL ARE CREATING OR PUTTING NEW EMPHASIS ON THEIR OWN BRANDS THE 9 BILLIONAYEAR LICENSEDMERCHANDISE BUSINESS CONTINUES TO GROW AT A DOUBLEDIGIT CLIP BUT THE FIELD IS BECOMING CLUTTERED SOME INDUSTRY EXECUTIVES SAY MANUFACTURERS THAT WILL PROSPER IN THE YEARS AHEAD ARE THOSE WHOSE OWN NAMES HAVE STRONG RECOGNITION SUCH AS CHAMPION AND STARTER SAYS LARRY WEINDRUCH A SPOKESMAN FOR THE NATIONAL SPORTING GOODS ASSOCIATION STARTER KNOWN PRIMARILY FOR ITS JACKETS BEGAN A NATIONAL AD CAMPAIGN LAST YEAR PROMOTING ITS NAME THIS FALL FOR THE FIRST TIME THE NEW HAVEN CONN COMPANY WILL DISTRIBUTE A COLLECTION OF SPORTS APPAREL PROMINENTLY BEARING ITS OWN NAME AND LOGO THE LINE WILL INCLUDE SUCH BASICS AS TSHIRTS SWEAT SHIRTS AND SWEAT PANTS AS WELL AS MORE TRENDY COLORFUL ITEMS LIKE AN OUTDOOR LINE AND GARMENTS WITH MORE GRAPHICS IN THE LICENSED END IT WAS THE TRADITIONAL TEAM COLORS SAYS STAN BRAJER NATIONAL SALES MANAGER FOR THE STARTER BRAND DIVISION ON THIS END WE CAN GO WITH THE FASHION TRENDS A LITTLE MORE CHAMPION A ROCHESTER NY UNIT OF SARA LEE CORP PLANS TO INTRODUCE A LINE OF CASUAL APPAREL WITH MORE COLORS AND GRAPHICS THAN ITS CURRENT SWEATS THE GAME A SUBSIDIARY OF CLOSELY HELD WC BRADLEY IN COLUMBUS GA WILL ADD ITS OWN BRAND OF CLOTHING TO ITS CURRENT VARIETY OF PRO AND COLLEGE LICENSED MERCHANDISE THE NEWPRODUCT SECTION OF THE SUPER SHOW WILL SPOTLIGHT A SLEW OF WORKOUT WEAPONS SPORTS ENTHUSIASTS CAN ADD TO THEIR FITNESS ARSENALS MPK SPORTGERATE OF MUNICH GERMANY WILL DISPLAY A TELEBIKE COMPUTER TRAINER THAT COMES WITH A 3D COLOR MONITOR AND CHOICE OF SIX LANDSCAPES CONSUMER ADVANTAGE OF TUCKER GA WILL DISPLAY A 1295 WASHABLE SWEATBAND THAT HAS BUILTIN HEADPHONES FOR THOSE WHO WOULD RATHER WATCH THAN PARTICIPATE EXTENDAVIEW HIALEAH FLA OFFERS THE MAGNIVISOR FOR 2995 WHEN ACTIVATED A MECHANISM ATTACHED TO THE VISOR LOWERS A SET OF PLASTIC LENSES IN FRONT OF THE EYES TO BECOME A PAIR OF BINOCULARS 9404220033 930115 WHO'S NEWS WESTERN DIGITAL CORP WESTERN DIGITAL CORP IRVINE CALIF THIS MAKER OF COMPUTER DISK DRIVES SAID IT NAMED A TRAVIS WHITE 47 TO A NEWLY CREATED EXECUTIVE VICE PRESIDENT POST MR WHITE WILL ALSO BE GENERAL MANAGER OF THE MICROCOMPUTER PRODUCTS GROUP SUCCEEDING SCOTT MERCER THE COMPANY'S CHIEF FINANCIAL OFFICER WHO HAD ALSO FILLED THE GENERAL MANAGER POST ON AN INTERIM BASIS THE MOVE IS EFFECTIVE FEB 1 MR WHITE IS CURRENTLY CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF LSI LOGIC CANADA LTD A UNIT OF LSI LOGIC CORP 9403150044 930524 CREDIT MARKETS CLINTON'S PLAN IS DISTURBING BOND PLAYERS BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WITH THE FEDERAL RESERVE CLEARLY CONCERNED ABOUT THE POSSIBILITY OF RISING INFLATION BOND MARKET PLAYERS ARE ALSO WORRYING MORE ABOUT PRESIDENT CLINTON'S PROPOSED ECONOMIC PACKAGE THAT'S BECAUSE BOND INVESTORS DON'T LIKE WHAT THEY'RE SEEING OR FAILING TO SEE OF MR CLINTON'S ECONOMIC PACKAGE WE'VE GOT NOTHING WE CAN POINT TO AS GOOD NEWS THESE DAYS SAYS GLENN MURPHY CHIEF INVESTMENT OFFICER OF TRAVELERS ASSET MANAGEMENT INFLATION WORRIES ARE GROWING AT A TIME WHEN MR CLINTON AND SPARING CONGRESSIONAL DEMOCRATS ARE LOOKING MORE AND MORE LIKE THE GANG THAT COULDN'T SHOOT STRAIGHT HE SAYS IF IT WEREN'T FOR ALL THE POLITICAL UNCERTAINTY MR MURPHY SAYS LONGTERM YIELDS COULD EASILY DIP AS LOW AS 65 BUT LOOKING TO WASHINGTON AND CURRENT INFLATION FEARS HE ENVISIONS A RANGE OF 675 TO 725 OVER THE NEXT TWO MONTHS AND THE FED APPEARS TO BE TAKING THE RECENT INFLATION REPORTS RATHER SERIOUSLY A REPORT IN TODAY'S WALL STREET JOURNAL THAT THE FED VOTED TO LEAN TOWARD HIGHER SHORTTERM INTEREST RATES AT LAST WEEK'S MEETING OF THE FEDERAL OPEN MARKET COMMITTEE THE FED'S POLICYMAKING ARM IS LIKELY TO HAVE A NEGATIVE EFFECT ON BOND PRICES BOND INVESTORS FEAR PRICE INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH THE FIXED RATE OF RETURN AT THE PREVIOUS FOMC MEETING ON MARCH 23 ACCORDING TO MINUTES RELEASED BY THE FED ON FRIDAY JUST TWO FED GOVERNORS WAYNE ANGELL AND LAWRENCE LINDSEY WERE URGING AN IMMEDIATE MOVE TO RAISE SHORTTERM RATES THE OTHER 10 COMMITTEE MEMBERS VOTED AGAINST EVEN CHANGING THE FED'S BIAS TO FAVOR TIGHTENING IN THE FUTURE BUT LAST WEEK'S VOTE WENT THE OTHER WAY ON FRIDAY THE 30YEAR TREASURY BOND'S YIELD SURGED TO 704 FROM 699 ON THURSDAY AS INVESTORS REACTED TO A BIG JUMP IN THE MONEY SUPPLY AND SPECULATION THAT THE FED MIGHT BE MOVING TOWARD A BIAS IN FAVOR OF RAISING SHORTTERM INTEREST RATES THE PRICE OF THE 30YEAR TREASURY BOND WHICH MOVES IN THE OPPOSITE DIRECTION OF THE YIELD SLID MORE THAN 1/2 POINT OR MORE THAN 5 FOR A BOND WITH A 1000 FACE VALUE TO 101 MR MURPHY SAID HE SOLD SOME 30YEAR TREASURY BONDS IN MARCH DURING THE BOND MARKET'S LAST BOUT WITH INFLATION FEARS BUT FRIDAY EVEN AS THE MARKET WAS DROPPING HE BOUGHT SOME OF THOSE BONDS BACK HE DOESN'T THINK INFLATION WILL BE SHARPLY HIGHER THIS YEAR PERHAPS 35 COMPARED WITH 3 LAST YEAR WE'RE STILL IN A SLOWGROWTH ECONOMY AND PRICE INCREASES IN GENERAL ARE NOT STICKING HE CLAIMS YET WHAT'S KEEPING MR MURPHY FROM BECOMING MORE BULLISH IS HIS VIEW OF EVENTS IN WASHINGTON WE HAD SUCH A TREMENDOUS STATE OF EUPHORIA IN WASHINGTON AFTER THE ELECTION HE SAYS REFERRING TO HOPES THAT A DEMOCRAT IN THE WHITE HOUSE COULD GET THINGS MOVING VERY QUICKLY WITH DEMOCRATS CONTROLLING BOTH HOUSES IN CONGRESS THE BOND MARKET SOARED EARLIER THIS YEAR IN THE EXPECTATION OF SIZABLE SPENDING CUTS AND LARGE TAX INCREASES BOTH OF WHICH COULD HELP BOND PRICES BUT IN THE PAST FEW WEEKS THE EUPHORIA HAS COMPLETELY DISSIPATED BECAUSE OF CONCERN OVER RISING PRICES AND THE GROWING BELIEF THAT MR CLINTON MAY FAIL TO CUT GOVERNMENT SPENDING SIGNIFICANTLY SAYS MR MURPHY PEOPLE FEEL BETRAYED SAYS MR MURPHY AFTER MR CLINTON WAS ELECTED HE SAYS PEOPLE SAID THEY WERE READY TO BEAR SOME PAIN BUT COUNTED ON THEIR REPRESENTATIVES IN WASHINGTON TO BEAR EVEN MORE IT'S PRETTY CLEAR THAT IT'S NOT WORKING MR MURPHY SAYS CITING THE RECENT OPPOSITION TO THE PRESIDENT'S ECONOMIC PACKAGE FROM SOME MODERATE MEMBERS OF CONGRESS A GROUP LED BY SEN DAVID BOREN D OKLA UNVEILED AN ALTERNATIVE BIPARTISAN PLAN THAT WOULD ELIMINATE THE PRESIDENT'S PROPOSED ENERGY TAX OTHER ANALYSTS AGREE THERE IS A LOT OF UNCERTAINTY ABOUT WHAT'S GOING TO COME OUT OF WASHINGTON SAYS DONALD FINE CHIEF MARKET ANALYST AT CHASE SECURITIES INC IN ORDER FOR THE BOND MARKET TO DO BETTER THERE ARE GOING TO HAVE TO BE SIGNIFICANT SPENDING CUTS HE SAYS BECAUSE YOU DON'T CUT DEFICITS BY INCREASING TAXES INFLATION IS UNLIKELY TO JUMP MUCH HIGHER THAN 35 THIS YEAR SAYS MR FINE BUT THE STORY MAY BE DIFFERENT NEXT YEAR IF THE ECONOMY PICKS UP STEAM LATER THIS YEAR HE SAYS WITH INFLATION ON THE RISE FOR APRIL MANY MARKET PLAYERS HAD ALREADY BEGUN WORRYING LAST WEEK THAT PERHAPS MORE FED GOVERNORS JUMPED ONTO THE HIGHERRATE BANDWAGON AT LAST WEEK'S FOMC MEETING THANKS TO SUCH SPECULATION AND WORRIES ABOUT POLITICS YOU NOW HAVE MORE UNCERTAINTY ABOUT SHORTTERM AS WELL AS LONGTERM INTEREST RATES SAYS MR FINE ON FRIDAY THE COUPONEQUIVALENT YIELD FOR THE CURRENT ISSUE OF ONEYEAR TREASURY BILLS ROSE SHARPLY TO 343 FROM 334 THURSDAY BUT NOT EVERYONE IS CRINGING AT THE POLITICAL EVENTS IN WASHINGTON THESE DAYS AND WORRYING ABOUT HOW IT WILL TURN OUT THOMAS D GALLAGHER A POLITICAL ANALYST AT SHEARSON LEHMAN BROTHERS BELIEVES THE OBSTACLES TO GETTING THE CLINTON ECONOMIC PACKAGE APPROVED CAN BE OVERCOME A LOT OF PEOPLE IN THE BOND MARKETS HAVE THE IMPRESSION THAT THE BUDGET PLAN IS SO FRAGILE THAT IT MIGHT NOT MAKE IT THOUGH THE PERILS OF CONGRESS HE SAYS BUT I THINK IT'S A MORE DURABLE PRODUCT THAN THAT HE ADDS THE DEMOCRATS IN CONGRESS KNOW THEY HAVE TO DELIVER DEFICIT REDUCTIONS BECAUSE THEY PROMISED THAT TO VOTERS A PLAN CLOSE TO WHAT CLINTON PROPOSED WILL PREVAIL MOST US TREASURY ISSUES SHOWED MODERATE LOSSES SOME OF THE HEAVIEST DAMAGE WAS DONE IN THE BILL SECTOR AS SPECULATION THAT THE FEDERAL RESERVE HAD MOVED TOWARD A CREDITTIGHTENING BIAS PROMPTED A WAVE OF SELLING THE FED RELEASED MINUTES OF THE MARCH 23 FOMC MEETING WHICH SHOWED THAT TWO FED GOVERNORS HAD URGED THE COMMITTEE TO VOTE FOR HIGHER SHORTTERM INTEREST RATES THE NOTION THAT THE FED HAS MOVED TOWARD A BIAS FOR RAISING RATES WAS BOLSTERED BY THURSDAY'S FED MONEYSUPPLY DATA WHICH SHOWED LARGERTHANEXPECTED INCREASES MEANWHILE DEALERS CONTINUED TO WRESTLE WITH THE OUTLOOK FOR NEARTERM INFLATION IN THE WAKE OF BEARISH PRICE REPORTS FOR APRIL ALSO HURTING THE SHORTTERM END WERE PROSPECTIVE SUPPLIES THE TREASURY PLANS TO SHIFT MORE OF ITS ISSUANCE TO SHORTTERM MATURITIES AT A TIME WHEN THAT SECTOR OF THE MARKET IS INCREASINGLY VULNERABLE THE TREASURY ANNOUNCED FRIDAY AFTERNOON THAT IT WILL SELL 1475 BILLION IN ONEYEAR BILLS NEXT THURSDAY UP 500 MILLION FROM THE AUCTION IN APRIL THE INTEREST RATES FOR TREASURY BILLS WHICH HAVE MATURITIES RANGING FROM THREE MONTHS TO ONE YEAR SURGED AS MUCH AS 009 PERCENTAGE POINT THE BILL SECTOR WAS DECIMATED SAID KATHLEEN CAMILLI CHIEF ECONOMIST AT MARIA FIORINI RAMIREZ INC THE INTEREST RATES OF OTHER TREASURY MATURITIES ALSO ROSE THE 10YEAR NOTE FOR EXAMPLE YIELDED 616 BY LATE FRIDAY UP FROM 609 ON THURSDAY ITS PRICE DROPPED NEARLY 1/2 POINT TO 100 19/32 IN ADDITION TO INCREASED BILL SUPPLY TRADERS WILL HAVE TO CONTEND WITH A RENEWED FLOOD OF NOTE ISSUANCE 1575 BILLION IN TWOYEAR NOTES TO BE SOLD TOMORROW AND 11 BILLION IN FIVEYEAR NOTES TO BE SOLD WEDNESDAY DOUBTS ABOUT MR CLINTON'S ABILITY TO REDUCE THE BUDGET DEFICIT HELPED DEPRESS THE PRICES OF LONGTERM TREASURY ISSUES FURTHER THOMAS D LAURICELLA CONTRIBUTED TO THIS ARTICLE 9403150083 930107 QUARTERLY MUTUAL FUNDS REVIEW HOW THE BIGGEST STOCK FUNDS HAVE PERFORMED SEPT 30 1992 ASSETS A REDEMPTION FEE ON SHARES HELD FOR A YEAR OR LESS 9402020147 930107 QUARTERLY MUTUAL FUNDS REVIEW JUMP ISN'T SEEN FOR MONEY FUND YIELDS BY GEORGETTE JASEN SPECIAL TO THE WALL STREET JOURNAL YIELDS ON TAXABLE MONEY MARKET MUTUAL FUNDS ARE FINALLY ON THE RISE BUT WHILE INVESTORS CAN BREATHE A SIGH OF RELIEF THAT THE LONG DOWNTURN IN MONEY FUND YIELDS IS FINALLY OVER THE INCREASES ARE LIKELY TO BE SLOW AND GRADUAL WHAT YOU SEE IS WHAT YOU GET SAYS WALTER FRANK CHIEF ECONOMIST FOR IBC/DONOGHUE'S MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER THERE WILL BE SOME WEEKTOWEEK VARIATION BUT CURRENT YIELDS AREN'T GOING TO CHANGE MUCH FUND OFFICIALS SAY THEY EXPECT INDIVIDUAL INVESTORS TO CONTINUE TO PULL CASH OUT OF TAXABLE MONEY FUNDS AS THEY HAVE BEEN FOR MORE THAN A YEAR AS MONEYFUND ASSETS HAVE DECLINED IN RECENT MONTHS ASSETS OF CONSERVATIVE STOCK FUNDS AND SHORTTERM AND INTERMEDIATETERM BOND FUNDS HAVE GROWN SHAREHOLDERS ARE VOTING WITH THEIR FEET SAYS IAN MACKINNON SENIOR VICE PRESIDENT AT THE MUTUAL FUND FIRM VANGUARD GROUP IN VALLEY FORGE PA AVERAGE MONEY FUND YIELDS ENDED THE FOURTH QUARTER JUST ABOUT WHERE THEY BEGAN DATA COMPILED BY IBC/DONOGHUE'S SHOW THAT THE AVERAGE SEVENDAY COMPOUND YIELD FOR ALL TAXABLE FUNDS WHICH INCLUDES FUNDS OPEN ONLY TO INSTITUTIONS WAS 290 IN THE LAST WEEK OF DECEMBER THAT COMPARES WITH 291 THREE MONTHS EARLIER IN BETWEEN HOWEVER THE AVERAGE FELL TO 278 THE LOWEST EVER RECORDED FOR TAXABLE MONEY FUNDS AND NEARLY SEVEN PERCENTAGE POINTS LOWER THAN THE SPRING OF 1989 COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS FOR THE QUARTER AS A WHOLE THE AVERAGE YIELD ON TAXABLE FUNDS OPEN TO INDIVIDUAL INVESTORS WAS 272 ON AN ANNUALIZED BASIS DOWN FROM 301 IN THE THIRD QUARTER TAXEXEMPT FUNDS LOOKED BETTER ENDING THE QUARTER WITH AN AVERAGE SEVENDAY COMPOUND YIELD OF 274 IBC/DONOGHUE'S SAYS ALTHOUGH THAT'S ONLY FRACTIONALLY HIGHER THAN THE 272 AVERAGE AT THE END OF THE THIRD QUARTER IT'S EQUIVALENT TO A TAXABLE 397 FOR SOMEONE IN THE 31 TAX BRACKET THE HIGHEST YIELDING TAXFREE FUNDS CURRENTLY OFFER YIELDS EQUIVALENT TO MORE THAN 5 ON A TAXABLE INVESTMENT WHILE THE TOP TAXABLE FUNDS ARE BELOW 4 INDEED SOME FUND OFFICIALS PREDICT THAT THE ACTION IN THIS YEAR'S FIRST QUARTER WILL BE IN THE TAXFREE AREA ESPECIALLY WITH PRESIDENTELECT CLINTON'S PROMISES OF HIGHER TAX RATES FOR THE WEALTHY THE APPETITE FOR TAXFREE INVESTMENTS IS BIGGER THAN IT HAS EVER BEEN SAYS NEAL LITVACK A SENIOR VICE PRESIDENT AT FIDELITY INVESTMENTS WHO SPENT A PORTION OF THE FIRST FEW DAYS OF THE NEW YEAR ANSWERING TELEPHONES AT THE BOSTON MUTUAL FUND FIRM THE TREND WAS EVIDENT IN THE FOURTH QUARTER TOTAL ASSETS OF 422 TAXABLE FUNDS OPEN TO INDIVIDUAL INVESTORS FELL BY SLIGHTLY MORE THAN 5 BILLION TO 3093 BILLION IBC/DONOGHUE'S SAYS BUT ASSETS OF 262 TAXFREE FUNDS GREW BY SLIGHTLY LESS THAN 5 BILLION DURING THE SAME PERIOD TO 806 BILLION TAXFREE YIELDS WHICH CAN BE LIKE A ROLLER COASTER IN RESPONSE TO VARIATIONS IN THE SUPPLY OF SHORTTERM MUNICIPAL SECURITIES ARE EXPECTED TO FALL DURING THE FIRST QUARTER AS THE GROWING HOARD OF CASH IS AUGMENTED BY THE PROCEEDS OF MUNICIPAL BOND REDEMPTIONS IN JANUARY BUT THE YIELDS STILL MAY BE COMPARATIVELY HIGH ON A TAXABLEEQUIVALENT BASIS DURING THE FOURTH QUARTER AVERAGE TAXFREE YIELDS FELL TO AS LOW AS 212 STILL THAT IS EQUIVALENT TO A TAXABLE 307 FOR INVESTORS IN THE 31 TAX BRACKET IF THE TOP TAX RATE RISES TO 36 AS MR CLINTON HAS PROPOSED THE TAXABLE EQUIVALENT YIELD WOULD RISE TO 331 PEOPLE AREN'T JUST BUYING ON CURRENT NUMBERS THEY'RE BUYING ON WHAT NUMBERS WOULD BE WHEN TAX RATES GO UP SAYS FIDELITY'S MR LITVACK THE AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS COMMERCIAL PAPER TREASURY BILLS AND OTHER SHORTTERM SECURITIES ENDED THE FOURTH QUARTER AT A FAIRLY LONG 57 DAYS THAT'S DOWN FROM THE RECORD OF 66 DAYS IN EARLY NOVEMBER MONEY FUNDS ARE LIMITED BY THE SECURITIES AND EXCHANGE COMMISSION TO A MAXIMUM AVERAGE MATURITY OF 90 DAYS UNTIL THE LATEST PLUNGE IN INTEREST RATES THE RECORD WAS 54 DAYS SHORTER AVERAGE MATURITIES USUALLY ARE CONSIDERED A SIGN THAT FUND MANAGERS EXPECT INCREASES IN SHORTTERM INTEREST RATES BECAUSE THE SHORTER MATURITIES MAKE IT POSSIBLE TO TRADE UP TO HIGHER YIELDING SECURITIES SOONER ECONOMISTS GENERALLY EXPECT RATES TO REMAIN ABOUT WHERE THEY ARE FOR AT LEAST THE NEXT SEVERAL MONTHS IT'S STILL NOT CLEAR HOW SOLID THE ECONOMIC RECOVERY IS SAYS IBC/DONOGHUE'S MR FRANK THERE'S NO PRESSURE ON THE FEDERAL RESERVE TO DO ANYTHING TO RAISE OR LOWER INTEREST RATES IN THE FIRST QUARTER THIS MEANS ALTERNATIVE INVESTMENTS WILL REMAIN ATTRACTIVE FIDELITY'S SHORTTERM BOND FUND FOR INSTANCE IS CURRENTLY YIELDING 680 NEARLY TWICE FIDELIY'S TOP YIELDING MONEY FUND TOTAL RETURN ON THE BOND FUND WHICH INCLUDES FLUCTUATIONS IN THE MARKET PRICE OF THE PORTFOLIO AS WELL AS INCOME FROM INVESTMENTS WAS ABOUT 845 FOR THE YEAR ALTHOUGH MONEY FUNDS ARE CONSIDERED AMONG THE SAFEST INVESTMENTS BECAUSE THEY ARE STRUCTURED SO ONLY THE YIELD VARIES AND THE NET ASSET VALUE REMAINS AT 1 A SHARE THERE'S ONLY A LITTLE MORE RISK IN SHORTTERM BOND FUNDS IF INTEREST RATES RISE ONE PERCENTAGE POINT THIS YEAR MR LITVACK ESTIMATES THE NET ASSET VALUE OF THE SHORTTERM BOND FUND WOULD FALL 2 THE TOTAL RETURN WOULD LIKELY STILL BE COMFORTABLY AHEAD OF MONEY FUNDS STILL NO ONE IS EXPECTING A WHOLESALE RUN ON TAXABLE MONEY FUNDS FOR ONE THING THEY STILL OFFER HIGHER YIELDS THAN BANK MONEYMARKET ACCOUNTS AND THREEMONTH CERTIFICATES OF DEPOSIT ALSO THE THREEANDAHALFYEAR SLIDE IN INTEREST RATES GAVE INVESTORS PLENTY OF TIME TO PULL MONEY OUT MOST DID NOT MONEY FUNDS HAVE BECOME AN INTEGRAL PART OF THE SYSTEM SAYS JOSEPH DIMARTINO PRESIDENT OF DREYFUS CORP AND MANAGER OF SEVERAL OF ITS MONEY FUNDS NOTES RANKED BY SEVENDAY COMPOUND YIELD WHICH ASSUMES REINVESTMENT OF DIVIDENDS FOR WEEK ENDED JAN 4 EXCLUDES STATESPECIFIC AND RESTRICTED FUNDS TAXABLE EQUIVALENT YIELD ASSUMES 31 TAX BRACKET A LOOK AT CONSUMERORIENTED MONEY FUNDS AND SOME OF THEIR HOLDINGS AT THE END OF THE FOURTH QUARTER PERFORMANCE FIGURES ARE ESTIMATED ANNUALIZED YIELDS WHICH INCLUDE EARNINGS FROM THE FUND'S INVESTMENTS AND THE EFFECTS OF COMPOUNDING FUNDS OPEN ONLY TO INSTITUTIONS SPECIAL PURPOSE FUNDS AND TAXEXEMPT FUNDS ARE EXCLUDED FROM THESE TABLES 9312230050 930604 WHO'S NEWS SHOW BUSINESS IS POTENT LURE FOR BRONFMAN BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL SINCE CHILDHOOD EDGAR BRONFMAN JR HAS BEEN FASCINATED BY ALMOST EVERYTHING HAVING TO DO WITH THE ENTERTAINMENT WORLD AS A TEENAGER HE MOVED ON THE EDGES OF THE NEW YORK SCENE AS AN ASPIRING SONGWRITER AND MOVIE PRODUCER NOW THE 38YEAROLD MR BRONFMAN PRESIDENT OF SEAGRAM CO SINCE 1989 IS TRANSLATING HIS FASCINATION WITH ENTERTAINMENT INTO A MAJOR INVESTMENT FOR HIS FAMILYCONTROLLED COMPANY SEAGRAM LAST WEEK DISCLOSED IT HAD PURCHASED A 57 STAKE IN TIME WARNER INC AND SAID IT PLANS TO BUY UP TO 15 HE'S A THIRDGENERATION HEIR AND HE WANTS TO PUT HIS IMPRIMATUR ON THE COMPANY THE WAY HIS FATHER AND GRANDFATHER BEFORE HIM DID SAYS A CLOSE ADVISER TO THE YOUNGER MR BRONFMAN THE ENTERTAINMENT INDUSTRY IS HOW HE'S GOING TO DO IT AT A NEWS CONFERENCE AFTER SEAGRAM'S ANNUAL MEETING WEDNESDAY THE YOUNGER MR BRONFMAN SAID HE HAD NO PERSONAL REASONS FOR MAKING THE TIME WARNER INVESTMENT WE JUST BELIEVE THIS IS A GOOD INVESTMENT IT'LL BE A STRONG INVESTMENT FOR THE FUTURE AND THAT'S WHY WE MADE IT HE SAID BUT AT THE SAME MEETING HIS FATHER EDGAR M BRONFMAN CHAIRMAN AND CHIEF EXECUTIVE WAS UNEQUIVOCAL THE PRIME MOVER IN THIS WAS MY SON EDGAR JR THE SENIOR MR BRONFMAN ALSO SAID AT THE NEWS CONFERENCE THAT HIS SON WILL SOON MEET WITH TIME WARNER'S CHIEF EXECUTIVE GERALD LEVIN THOUGH SEAGRAM YESTERDAY SAID THERE HAS BEEN NO CONTACT BETWEEN THE TWO COMPANIES OTHER THAN THE YOUNGER MR BRONFMAN'S CALL TO MR LEVIN THE DAY THE INVESTMENT WAS MADE PUBLIC PEOPLE FAMILIAR WITH TIME WARNER SAY MR LEVIN HIMSELF HAS MADE NO EFFORT TO REACH OUT TO THE YOUNGER MR BRONFMAN SINCE THE INVESTMENT WAS ANNOUNCED AS TO ANY PLANS FOR THE TWO TO MEET A TIME WARNER SPOKESMAN WILL SAY ONLY WE DON'T DISCUSS MR LEVIN'S SCHEDULE WHILE FRIENDS SAY THAT EDGAR BRONFMAN IS VERY EXCITED ABOUT THE TIME WARNER INVESTMENT SEAGRAM SHAREHOLDERS AND EVEN SOME EMPLOYEES HAVE TAKEN A DIMMER VIEW SEAGRAM STOCK HAS FALLEN ABOUT 11 SINCE THE DEAL WAS ANNOUNCED LEHMAN BROS JUST DOWNGRADED ITS RECOMMENDATION ON SEAGRAM STOCK ON THE BASIS OF THE TIME WARNER STAKE THE OTHER GUY'S BUSINESS ALWAYS SEEMS MORE GLAMOROUS AND MORE APPEALING GRUMBLES THOMAS G KAHN A LARGE SEAGRAM SHAREHOLDER WHO IS CRITICAL OF THE DEAL BUT FRIENDS AND BUSINESS ASSOCIATES SAY THAT AFTER A DECADE AT HIS FAMILY'S 61 BILLION SPIRITS AND BEVERAGE COMPANY MR BRONFMAN WANTS TO PLAY IN A BIGGER SANDBOX HE HAS PRODUCED MOVIES IN THE PAST BUT FIRST BEGAN CONSIDERING A SIGNIFICANT INVESTMENT IN AN ENTERTAINMENT COMPANY MORE THAN A YEAR AGO HE DISCUSSED THE MATTER WITH A FRIEND MICHAEL OVITZ CHAIRMAN OF CREATIVE ARTISTS AGENCY MR OVITZ WHO HAD MET THE YOUNGER MR BRONFMAN SEVEN YEARS AGO SOCIALLY HOOKED HIM UP WITH INVESTMENT BANKER HERBERT A ALLEN JR WHOSE FIRM ALLEN & CO ULTIMATELY ADVISED HIM TO INVEST IN TIME WARNER I'VE KNOWN THE YOUNGER MR BRONFMAN PERSONALLY FOR A LONG TIME AND FOUND HIM TO BE A TOUGH AND SMART BUSINESSMAN WHO IS BALANCED BY A GREAT SENSE OF CREATIVITY SAYS MR OVITZ WHO ADDS THAT MR BRONFMAN SPENT TIME OVER THE PAST YEAR IN HOLLYWOOD TALKING TO INDUSTRY EXECUTIVES TO TACTICALLY THINK THROUGH HIS INVESTMENT PLANS LONGTIME ASSOCIATES SAY MR BRONFMAN'S INTEREST IN THE CREATIVE END OF BUSINESS MANIFESTED ITSELF AT SEAGRAM'S IN HIS PERSONAL INVOLVEMENT IN COMPANY ADVERTISING JOHN BERNBACH PRESIDENT OF DDB NEEDHAM WORLDWIDE AN AD AGENCY THAT WORKS WITH SEAGRAM SAYS MR BRONFMAN EVEN GETS INTO AD COPYWRITING EVERYTIME WE BRING HIM A PIECE OF WORK IT'S BETTER AFTERWARDS SAYS MR BERNBACH WHEN SEAGRAM'S ADVERTISED ITS WINE COOLERS IN THE 1980S IT WAS MR BRONFMAN WHO WOOED ACTOR BRUCE WILLIS TO DO THE SPOTS JED BERNSTEIN AN ADVERTISING EXECUTIVE WHO WORKED WITH MR BRONFMAN ON THE ADS SAYS MR BRONFMAN WAS DEEPLY INVOLVED IN THE DETAILS OF THE PRODUCTIONS DOWN TO HELPING PICK OUT WHAT SUITS MR WILLIS WOULD WEAR HE UNDERSTOOD WHY IT WAS IMPORTANT TO SPEND 50000 ON AN ESTABLISHING SHOT MR BERNSTEIN SAYS MR BRONFMAN WAS MOST ANIMATED WHEN TALKING ABOUT THE MOVIE INDUSTRY HIS FAVORITE STORIES TO TELL WERE ALWAYS ABOUT HIS HOLLYWOOD DAYS MR BRONFMAN HAS ALSO WRITTEN A SONG FOR DIONNE WARWICK AND TRAVELS WITH A TAPE RECORDER AND LEGAL PAD SO THAT HE'S PREPARED WHEN MUSICAL INSPIRATION STRIKES MR BRONFMAN SHOOK UP THE FAMILY WHEN HE ELOPED AT 24 WITH A FRIEND OF MS WARWICK'S AN ACTRESS NAMED SHERRY BREWER THE TWO DIVORCED IN 1991 AND HAVE THREE CHILDREN MR BRONFMAN'S GREATEST CRITICAL SUCCESS AS A MOVIE PRODUCER WAS THE BORDER A 1982 JACK NICHOLSON FILM ONE OF MR BRONFMAN'S MAIN TASKS TRYING TO GET MR NICHOLSON TO APPEAR ON THE SET BEFORE NOON THE MOVIE DID NOT FARE WELL AT THE BOX OFFICE AND SOON AFTER MR BRONFMAN JOINED THE FAMILY BUSINESS THE EARLY DABBLING IN SHOW BUSINESS CAUSED SOME TO QUESTION MR BRONFMAN'S DEDICATION TO CORPORATE LIFE GIVEN HIS HOLLYWOOD BACKGROUND I EXPECTED HIM TO BE GARRULOUS AND SHOOTING FROM THE HIP SAYS WILLIAM BAKER PRESIDENT OF WNET/THIRTEEN A NEW YORK PUBLIC TELEVISION STATION OF WHICH MR BRONFMAN IS A DIRECTOR HE TURNED OUT TO BE JUST THE OPPOSITE HE HAS A HIGH DEGREE OF BUSINESS ACUMEN CONFRONTED WITH FALLING US LIQUOR CONSUMPTION THE YOUNGER MR BRONFMAN HAS DRAMATICALLY RESHAPED SEAGRAM MAKING SEVERAL MAJOR ACQUISITIONS AND CUTTING STAFF 60 IN THE US LIQUOR BUSINESS HE HAS ALSO SHED THE OLD GUARD AT SEAGRAM'S AND INSTALLED HIS OWN TEAM WHILE MR BRONFMAN GETS HIGH MARKS FOR STREAMLINING SEAGRAM AND FOCUSING THE COMPANY ON TONY BRANDS SUCH AS CHIVAS REGAL AND MUMM CHAMPAGNE THE 12 BILLION ACQUISITION OF TROPICANA PRODUCTS INC REMAINS A DISAPPOINTMENT AND MR BRONFMAN HAS DONE LITTLE TO STEM SEAGRAM'S REPUTATION AS A HIGHPRESSURE WORKPLACE AND A REVOLVING DOOR FOR EXECUTIVES AT THE TROUBLED TROPICANA UNIT BEVERAGE INDUSTRY EXECUTIVES SAY MR BRONFMAN OUSTED HIS HANDPICKED PRESIDENT LAST FALL AFTER LESS THAN A YEAR ON THE JOB BECAUSE OF DISAPPOINTMENT WITH THE BRAND'S PERFORMANCE LAURA LANDRO IN NEW YORK AND CHRISTOPHER J CHIPELLO IN MONTREAL CONTRIBUTED TO THIS ARTICLE A HEADLINE AND ARTICLE OCT 5 1992 INCORRECTLY STATED THAT WILLIAM G PIETERSEN WHO WAS PRESIDENT OF SEAGRAM CO'S TROPICANA UNIT WAS OUSTED AS A RESULT OF THE POOR PERFORMANCE OF THE JUICE COMPANY THE STATEMENT WAS REPEATED IN ARTICLES ON SEAGRAM PUBLISHED MARCH 2 AND JUNE 4 1993 UNDER MR PIETERSEN'S LEADERSHIP TROPICANA'S US OPERATING INCOME GREW 14 IN 1992 MR PIETERSEN RESIGNED FROM TROPICANA WHICH IS BASED IN FLORIDA TO RETURN TO THE NORTHEAST FOR FAMILY REASONS SINCE JANUARY 1993 MR PIETERSEN HAS BEEN PRESIDENT OF THE WORLDWIDE CONSUMER HEALTH GROUP OF STERLING WINTHROP INC NEW YORK A UNIT OF EASTMAN KODAK CO 9312230060 930302 WHO'S NEWS SEAGRAM TO NAME ROEDER PRESIDENT OF TROPICANA UNIT BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL ENDING A FIVEMONTH SEARCH SEAGRAM CO HAS DECIDED TO STICK WITH AN INSIDER TO HEAD ITS STRUGGLING TROPICANA JUICE BUSINESS BY NAMING THE ACTING PRESIDENT OF THE UNIT TO THE POST THE COMPANY CONFIRMED YESTERDAY THAT MYRON A ROEDER WILL BE NAMED PRESIDENT OF THE JUICE COMPANY AT A TROPICANA SALES MEETING TODAY IN FLORIDA THE 57YEAROLD MR ROEDER AN INTERNATIONAL MARKETING EXECUTIVE HAS BEEN TROPICANA'S ACTING PRESIDENT SINCE OCTOBER SINCE SEAGRAM ACQUIRED TROPICANA FIVE YEARS AGO FOR 12 BILLION THE JUICE BUSINESS HAS BEEN A DISAPPOINTMENT SINCE LATE 1991 TROPICANA HAS BEEN SHAKEN BY MANAGEMENT TURMOIL AND COSTCUTTING AND TWO PREVIOUS PRESIDENTS RESIGNED THEIR POSTS MR ROEDER WILL SUCCEED WILLIAM G PIETERSEN WHO RESIGNED AFTER LESS THAN A YEAR MANAGEMENT WAS REPORTEDLY DISAPPOINTED WITH TROPICANA'S PERFORMANCE THE APPOINTMENT OF MR ROEDER A FAVORITE OF SEAGRAM'S CHIEF OPERATING OFFICER EDGAR BRONFMAN JR IS A SIGN OF THE MONTREAL COMPANY'S MORE DIRECT INVOLVEMENT IN THE MANAGEMENT OF THE ONCEINDEPENDENT UNIT IN AN INTERVIEW MR BRONFMAN SAID MR ROEDER'S APPOINTMENT FOLLOWS SEVERAL MONTHS OF IMPROVED PERFORMANCE AT TROPICANA BEVERAGE CONSULTANTS SAID THAT TROPICANA HAS SHOWN A NEWFOUND AGGRESSIVENESS IN CHASING CITRUS HILL CUSTOMERS AFTER PROCTER & GAMBLE CO ABANDONED THAT PRODUCT AND THE ORANGE JUICE BUSINESS LAST FALL STILL MR BRONFMAN CONCEDED THAT THE FINANCIAL PERFORMANCE OF TROPICANA BASED IN BRADENTON FLA IS NOT AS GOOD AS WE WOULD LIKE IT TO BE HE ADDED CLEARLY THE COMPANY HAS TO CONTINUE TO IMPROVE TO GIVE THE KIND OF RETURN TO SHAREHOLDERS THAT WE DEMAND FROM OUR BUSINESSES BEVERAGE CONSULTANTS SAID THAT MR ROEDER AN 11YEAR VETERAN OF SEAGRAM WAS TYPICAL OF THE COMPANY'S PREFERENCE FOR CONSERVATIVE EXECUTIVES THEY WENT WITH A GUY THAT THEY CAN HAVE A GREAT DEAL OF CONFIDENCE IN BUT NOT SOMEBODY THAT IS GOING TO RECREATE THE ORANGE JUICE BUSINESS SAID TOM PIRKO PRESIDENT OF BEVMARK INC A CONSULTING COMPANY IN LOS ANGELES A HEADLINE AND ARTICLE OCT 5 1992 INCORRECTLY STATED THAT WILLIAM G PIETERSEN WHO WAS PRESIDENT OF SEAGRAM CO'S TROPICANA UNIT WAS OUSTED AS A RESULT OF THE POOR PERFORMANCE OF THE JUICE COMPANY THE STATEMENT WAS REPEATED IN ARTICLES ON SEAGRAM PUBLISHED MARCH 2 AND JUNE 4 1993 UNDER MR PIETERSEN'S LEADERSHIP TROPICANA'S US OPERATING INCOME GREW 14 IN 1992 MR PIETERSEN RESIGNED FROM TROPICANA WHICH IS BASED IN FLORIDA TO RETURN TO THE NORTHEAST FOR FAMILY REASONS SINCE JANUARY 1993 MR PIETERSEN HAS BEEN PRESIDENT OF THE WORLDWIDE CONSUMER HEALTH GROUP OF STERLING WINTHROP INC NEW YORK A UNIT OF EASTMAN KODAK CO 9311240156 930618 THE TAX PACKAGE ADVANCES SEARCHING FOR WAYS TO SOFTEN BLOW GOOD LUCK BY TOM HERMAN STAFF REPORTER OF THE WALL STREET JOURNAL WITH LEGISLATION ADVANCING IN THE SENATE THAT WOULD SHARPLY INCREASE TAXES FOR UPPERINCOME AMERICANS A LOT OF TAXPAYERS ARE HOPING TO FIND A WAY TO SOFTEN THE BLOW AND A LOT OF ACCOUNTANTS LAWYERS AND INVESTMENT ADVISERS WOULD BE HAPPY TO HELP SO FAR THE ANSWER FOR MOST PEOPLE IS APT TO BE DISAPPOINTING THERE IS LITTLE OR NOTHING TAXPAYERS CAN DO TO SIGNIFICANTLY COUNTERACT TAX INCREASES WENDING THEIR WAY THROUGH CONGRESS BUT THE SENATE FINANCE COMMITTEE VERSION OF THE BUDGET PACKAGE DOES CONTAIN AT LEAST ONE PROVISION THAT COULD MAKE IT WORTHWHILE FOR MANY UPPERINCOME TAXPAYERS TO CONSIDER A FEW CHANGES LATER THIS YEAR IN THEIR 1993 TAX STRATEGIES THE BILL WOULD PHASE IN THE HIGHER TAXES WITH ONLY HALF THE INCREASE COMING THIS YEAR IN AN APPROACH KNOWN AS BLENDED RATES IF THAT PROVISION EVENTUALLY BECOMES LAW MANY UPPERINCOME AMERICANS WITH DISCRETION OVER WHEN THEY GET PAID MIGHT CONSIDER TAKING INCOME THIS YEAR WHEN THEIR TAX RATES WILL BE LOWER INSTEAD OF EARLY NEXT YEAR TAX LAWYERS AND ACCOUNTANTS SAY FOR EXAMPLE TAXPAYERS MIGHT TRY TO COLLECT CERTAIN BONUSES CONSULTING PAYMENTS SPEAKING FEES AND DIRECTORS' FEES THIS YEAR RATHER THAN IN JANUARY THEY ALSO MIGHT CONSIDER EXERCISING NONQUALIFIED STOCK OPTIONS THIS YEAR INSTEAD OF EARLY NEXT YEAR EVEN THOUGH NOBODY KNOWS YET WHAT THE FINAL LAW WILL LOOK LIKE IT'S CERTAINLY SOUND ADVICE TO BEGIN PLANNING THE ACCELERATION OF INCOME IN 1993 FROM 1994 SAYS GEORGE EL BARBEE EXECUTIVE DIRECTOR CLIENT SERVICES AT PRICE WATERHOUSE HE ADDS THAT IT'S ALSO WISE TO CONSIDER DEFERRAL OF DEDUCTIONS INTO 1994 WHEN THEY WILL BE WORTH MORE BECAUSE OF HIGHER TAX RATES BEYOND THIS HOWEVER THE ADVICE FOR UPPERINCOME TAXPAYERS IS VERY MUCH THE SAME AS IT WAS WHEN PRESIDENT CLINTON PROPOSED HIS BUDGET PLAN IN FEBRUARY AND WHEN THE HOUSE PASSED ITS OWN VERSION OF THE LEGISLATION LAST MONTH MINIMIZE THE GOVERNMENT'S TAKE BY MAXIMIZING YOUR USE OF TAXDEFERRED RETIREMENT PLANS SUCH AS EMPLOYERSPONSORED 401K PLANS CONSIDER BUYING MORE TAXFREE MUNICIPAL BONDS AND EMPHASIZE CAPITAL GAINS OVER DIVIDENDS AND TAXABLE INTEREST INCOME SENATE DEMOCRATIC TAXWRITERS AGREED TO BOOST THE MARGINAL RATE THIS YEAR TO 335 FROM 31 FOR COUPLES WITH TAXABLE INCOME ABOVE 140000 115000 FOR INDIVIDUALS AFTER THIS YEAR THE RATE WOULD RISE TO 36 FOR PEOPLE WITH TAXABLE INCOME ABOVE 250000 THE TOP RATE WOULD RISE TO 353 THIS YEAR AND 396 THEREAFTER THE ACTUAL TOP RATE WOULD RISE ABOVE 43 FOR SOME UPPERINCOME TAXPAYERS WITH LARGE NUMBERS OF DEPENDENTS THIS IS BECAUSE THEY WOULD LOSE PART OF THEIR PERSONAL EXEMPTIONS AND ITEMIZED DEDUCTIONS SENATE DEMOCRATS ALSO AGREED TO IMPOSE A 10 SURTAX ON CAPITALGAINS INCOME FOR TAXPAYERS WITH TAXABLE INCOMES ABOVE 250000 THE SURTAX WOULD RAISE THE MAXIMUM RATE ON CAPITAL GAINS TO 294 THIS YEAR FROM 28 AND TO 308 THEREAFTER THE GAP BETWEEN THIS YEAR'S TOP RATE ON ORDINARY INCOME AND NEXT YEAR'S IF IT REMAINS IN THE FINAL LAW WOULD PROVIDE A POWERFUL INCENTIVE FOR PEOPLE WHO FALL INTO THIS BRACKET TO ACCELERATE INCOME INTO 1993 THE GAP OBVIOUSLY WOULD BE SMALLER FOR TAXPAYERS IN LOWER BRACKETS THUS TAX EXPERTS SAY MANY PEOPLE WILL FIND IT ISN'T WORTH THE TROUBLE OF ACCELERATING INCOME ESPECIALLY AFTER FACTORING IN THE TIME VALUE OF MONEY IT'S A CLOSE CALL AND MAY NOT MAKE SENSE FOR MANY PEOPLE BELOW THE TOP BRACKET SAYS DONALD C ALEXANDER A PARTNER AT THE LAW FIRM OF AKIN GUMP STRAUSS HAUER & FELD IN WASHINGTON AND A FORMER INTERNAL REVENUE SERVICE COMMISSIONER MANY PEOPLE LISTEN TO THOSE WHO TRUMPET TAX SAVINGS BY ACCELERATING INCOME AND DISCOVER LATER THAT THEY HAVE GAINED LITTLE IF ANYTHING A BIG PART OF THE DECISION RESTS ON WHAT YOU THINK YOU CAN EARN ON YOUR INVESTMENTS SAYS ROBERT GARNER OF ERNST & YOUNG THE BAD NEWS IS MOST UPPERINCOME PEOPLE WILL BE PAYING MORE TAXES IN 1993 THAN IN 1992 SAYS MR BARBEE OF PRICE WATERHOUSE BUT THE GOOD NEWS IS THAT IF THE RATES FOR 1993 ARE BLENDED THEY WILL PAY LESS THAN THEY THOUGHT UNDER THE ORIGINAL HOUSE VERSION FOR EXAMPLE CONSIDER A FAMILY WITH TWO DEPENDENTS AND WITH ADJUSTED GROSS INCOME OF 300000 IN 1993 MR BARBEE CALCULATES THAT FAMILY WOULD OWE 3200 LESS IN FEDERAL INCOME TAXES THIS YEAR IF THE SENATE PANEL'S BLENDEDRATE APPROACH BECOMES LAW THAN THEY WOULD IF THE HOUSE VERSION BECOMES LAW SOCIAL SECURITY TAXES COULD BE ANOTHER REASON TO CONSIDER ACCELERATING INCOME INTO 1993 SAYS C CLINTON STRETCH DIRECTOR OF TAX LEGISLATIVE AFFAIRS AT DELOITTE & TOUCHE EFFECTIVE NEXT YEAR THE TAX BILL IN BOTH THE HOUSE AND SENATE WOULD REMOVE A 135000 CAP ON WAGES SUBJECT TO THE HOSPITAL INSURANCE TAX MR STRETCH SAYS THUS HE CONCLUDES IF A TAXPAYER IS GOING TO EXCEED 135000 IN WAGE INCOME IN 1994 THE 145 HOSPITAL TAX CAN BE AVOIDED BY ACCELERATING INCOME INTO 1993 HE ALSO NOTES THAT SELFEMPLOYED INDIVIDUALS MUST PAY BOTH THE EMPLOYER AND EMPLOYEE SHARE OF THE HOSPITAL INSURANCE TAX BUT DON'T ACCELERATE ANY INCOME RIGHT AWAY SIT BACK AND WAIT UNTIL CONGRESS FINISHES WORK AND SEE WHAT THE BILL LOOKS LIKE WHEN AND IF PRESIDENT CLINTON SIGNS IT REMEMBER THAT THE HOUSE IN SHARP CONTRAST TO THE SENATE COMMITTEE VOTED TO IMPOSE HIGHER RATES RETROACTIVE TO JAN 1 ALSO BEFORE ACCELERATING INCOME OR DEFERRING DEDUCTIONS UPPERINCOME TAXPAYERS NEED TO WATCH OUT FOR COMPLICATIONS STEMMING FROM THE ALTERNATIVE MINIMUM TAX A HIGHLY COMPLEX LAW DESIGNED TO MAKE SURE ALL TAXPAYERS PAY AT LEAST SOMETHING TO UNCLE SAM BEFORE DOING ANYTHING UPPERINCOME TAXPAYERS SHOULD RUN THEIR PROJECTIONS FOR BOTH 1993 AND 1994 UNDER THE ALTERNATIVE MINIMUM TAX SCENARIO AND SEE WHERE THEY COME OUT MR BARBEE SAYS SEE RELATED LETTERS LETTERS TO THE EDITOR SQUEEZE THE RICH CLOSE THE LOOPHOLES WSJ NOV 24 1993 9306180100 YY93 MM11 9311180025 930428 EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9311180027 930324 INSIDER TRADING SPOTLIGHT FRIDAY WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9311180014 930203 EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9311180003 930212 EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9310070103 930405 QUARTERLY MUTUAL FUNDS REVIEW STOCK FUND WINNERS AND LOSERS BEST AND WORSTPERFORMING STOCK FUNDS FOR THE PERIODS ENDED MARCH 31 1993 ASSETS ARE FIGURED AS OF DEC 31 1992 PERFORMANCE DATA ARE TOTAL RETURNS WHICH INCLUDE BOTH SHARE PRICE CHANGES AND REINVESTED DIVIDENDS 9308270029 930409 HEARD ON THE STREET US SURGICAL SHARES PLUNGE IS FALL OVER BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ACCORDING TO THE LORE SURROUNDING US SURGICAL'S REPUTATION FOR AGGRESSIVE MARKETING A SALESMAN AIMING TO BOOST VOLUME ONCE HID SO MUCH INVENTORY IN A HOSPITAL STOREROOM'S FALSE CEILING THAT IT COLLAPSED YESTERDAY US SURGICAL'S STOCK COLLAPSED 33 AT LEAST IN PART BECAUSE OF BLOATED INVENTORIES BUT THE COMPANY'S ANNOUNCEMENT THAT A MAJOR SHIFT IN THE WAY IT DISTRIBUTES ITS PRODUCTS WOULD CAUSE SHARPLY LOWER EARNINGS IN THE SECOND QUARTER IS ONLY ONE PROBLEM THE COMPANY FACES AND FOR MANY WALL STREET ANALYSTS IT'S FAR FROM CERTAIN THAT THE SHARES HAVE HIT THE FLOOR INVESTORS SOLD MORE THAN 750 MILLION OF THE STOCK YESTERDAY SENDING IT DOWN 15 1/4 POINTS TO FINISH AT 31 3/8 VOLUME WAS A DOZEN TIMES NORMAL AT 84 MILLION SHARES AS THE STOCK WAS DIVING ANALYSTS WERE SLASHING THEIR 1993 EARNINGS ESTIMATES BY MORE THAN 1 A SHARE TO 165 TO 175 I MAINTAIN A SELL RATING SAYS ROBERT M GOLDMAN ANALYST AT DEAN WITTER REYNOLDS I THINK IT WILL SEE THE 20S I DON'T THINK INVESTORS HAVE FOCUSED ON ISSUES THAT ARE AFFECTING THE COMPANY IF YOUR TIME HORIZON IS TWO TO THREE YEARS DOWN THE ROAD IT'S PROBABLY QUITE ATTRACTIVE SAYS JONATHAN OSGOOD ALEX BROWN & SONS ANALYST NEAR TERM IS ANYBODY'S GUESS US SURGICAL IS GRAPPLING WITH STIFF PRICE COMPETITION FROM ARCHRIVAL JOHNSON & JOHNSON'S ETHICON UNIT IT ALSO MUST COPE WITH CHANGING PRACTICES AMONG PHYSICIANS AND WITH COSTCONTAINMENT PRESSURES FROM HOSPITALS AND THE CLINTON ADMINISTRATION THE RESULT IS A CLOUD OVER THE STOCK THAT ISN'T LIKELY TO CLEAR FOR SOME TIME ANALYSTS SAY MOREOVER THE EXTENT OF THE COMPANY'S MOVE TO MARKET ITS MINIMALLY INVASIVE SURGERY PRODUCTS THROUGH DISTRIBUTORS AND AWAY FROM DIRECT SALES TOOK ANALYSTS BY SURPRISE IT RAISED ANEW SOME OLD CREDIBILITY ISSUES THAT DOGGED THE COMPANY IN RECENT YEARS EVEN AS ITS STOCK SOARED ON SALES OF EQUIPMENT FOR MINIMALLY INVASIVE SURGERY THE STOCK IN 1992 TRADED AS HIGH AS 134 SAILING ALONG AT 45 TO 50 TIMES EARNINGS YESTERDAY IT STUMBLED TO ONLY AROUND 18 TIMES ANALYSTS' NEW ESTIMATES OF PERSHARE EARNINGS A BARGAIN IT WAS HARD TO FIND ANYONE TO SAY SO YESTERDAY ON WALL STREET WHERE MANY ANALYSTS HAVE PREVIOUSLY PRAISED THE STOCK AT MUCH HIGHER LEVELS AT LEAST FOUR WALL STREET FIRMS DOWNGRADED THEIR OPINIONS OF THE STOCK YESTERDAY ACCORDING TO DEAN WITTER'S MR GOLDMAN DOCTORS SPEAKING AT A TECHNICAL SEMINAR ON ENDOSCOPIC SURGERY LAST WEEK INDICATED THEY WERE RELYING LESS ON THE DISPOSABLE SURGICAL TOOL KITS THAT ARE PART OF THE MAINSTAY OF US SURGICAL'S BUSINESS AND ADAPTING MORE TRADITIONAL REUSABLE PRODUCTS FOR THE SAME MINIMALLY INVASIVE PROCEDURES TWO TO THREE YEARS AGO WHEN SOCALLED LAPAROSCOPIC GALLBLADDER SURGERY TOOK THE NATION BY STORM SURGEONS FLOCKED TO COURSES SPONSORED BY US SURGICAL TO LEARN THE TRICKY PROCEDURE AND BOUGHT THE COMPANY'S GEAR NOW A LOT OF SURGEONS HAVE LEARNED TO DO IT AND INSTEAD OF USING THESE FANCY DEVICES MR GOLDMAN SAYS THEY'RE FINDING WAYS TO USE TRADITIONAL EQUIPMENT LAPAROSCOPICALLY COSTCONTAINMENT PRESSURES AS WELL AS THE EXPENSE AND ENVIRONMENTAL CONCERNS OF DISPOSING OF THE INSTRUMENTS ARE ALSO PROMPTING MORE DISCRIMINATING USE OF SOME INSTRUMENTS ANALYSTS SAY IN ADDITION SURGICAL'S ONCEHIGHFLYING STOCK PRICE WAS FUELED BY EXPECTATIONS THAT WHAT HAPPENED TO GALLBLADDERS WOULD REPEAT ITSELF WITH HERNIAS APPENDIXES AND HYSTERECTOMY OPERATIONS SOME DOCTORS HAVE BEEN LESS ENTHUSIASTIC OF THE BENEFIT OF THE TECHNIQUE IN THESE OPERATIONS GALLBLADDER PATIENTS SHOP FOR DOCTORS WHO DO THE MINIMALLY INVASIVE GALLBLADDER OPERATION BUT WITH HYSTERECTOMIES SAYS GLENN REICIN ANALYST AT OPPENHEIMER & CO WOMEN ARE MORE LIKELY TO STICK WITH THEIR GYNECOLOGISTS EVEN IF THOSE DOCTORS DON'T USE LAPAROSCOPY IN HYSTERECTOMIES US SURGICAL DISPUTES THE NOTION THAT THE MARKET FOR SUCH GEAR IS IN TROUBLE THE COMPANY IS SPONSORING AN EDUCATIONAL ROUND TABLE FOR JOURNALISTS LATER THIS MONTH FEATURING FOUR LEADING PHYSICIANS WHO WILL DESCRIBE A BRIGHT FUTURE FOR ENDOSCOPY IN A VARIETY OF APPLICATIONS WHILE RECENT GROWTH HASN'T MET SOME HIGH EXPECTATIONS MOST ANALYSTS BELIEVE THE MINIMALLY INVASIVE MARKET WILL BE STRONG LONG TERM BUT IT IS THE INVENTORY ISSUE THAT IS PROMPTING THE IMMEDIATE CONCERN AROUND THE STOCK FIRSTQUARTER RESULTS ARE EXPECTED TO BE POSTED APRIL 15 ANALYSTS SAY THEY WILL INCLUDE AT LEAST 45 MILLION IN SHIPMENTS TO DISTRIBUTORS SUCH AS BAXTER INTERNATIONAL WHICH WILL THEN SELL TO HOSPITALS ON A SOCALLED JUSTINTIME BASIS BUT HOSPITALS ALREADY ARE OVERSTOCKED IN US SURGICAL'S SUPPLIES SAYS ALEX BROWN'S MR OSGOOD AND USING UP SUCH GOODS COULD BE A 100 MILLION ADJUSTMENT BEFORE HOSPITALS AND DISTRIBUTORS BEGIN ORDERING AGAIN THAT EQUATES TO ABOUT 65 CENTS A SHARE HE SAYS ABOUT WHAT THE COMPANY EARNED IN THE 1992 FOURTH QUARTER IN ADDITION DISCOUNTS RESULTING FROM USING DISTRIBUTORS COULD KNOCK AN ADDITIONAL 60 MILLION OFF THE TOP LINE THAT'S REVENUE IN 1993 HE ESTIMATES A HIT THAT TRANSLATES TO 40 CENTS A SHARE THE USE OF DISTRIBUTORS ANALYSTS SAY WAS PROMPTED IN PART BY COMPETITION FROM ETHICON WHICH ROUTINELY PRICES ITS SUPPLIES AT 10 TO 30 LOWER THAN US SURGICAL'S MR OSGOOD SAYS AND WHICH HAS LONG USED COMPANIES SUCH AS BAXTER AND OWENS & MINOR TO DISTRIBUTE ITS PRODUCTS ETHICON'S DISTRIBUTION SYSTEM WAS GIVING THE CUSTOMERS A REASON TO TAKE A LOOK AT ITS PRODUCTS SAYS DANIEL LEMAITRE COWEN & CO ANALYST US SURGICAL IS HOPING TO HALT THOSE EVALUATIONS IN THEIR TRACKS BY GOING TO DISTRIBUTORS ITSELF THAT MOVE HOWEVER COULD BLUNT THE IMPACT OF ONE OF THE BIGGEST REASONS ANALYSTS HAVE CITED IN THE PAST TO BUY SURGICAL ITS VAUNTED SALES FORCE LEON HIRSCH US SURGICAL'S CHAIRMAN SAYS RELIANCE ON DISTRIBUTORS WILL BE A COMPETITIVE ADVANTAGE LONGTERM FOR THE COMPANY AND WILL FREE UP THE SALES FORCE TO DO MORE TRAINING AND EDUCATION OF DOCTORS BUT KURT KRUGER AT HAMBRECHT & QUIST SAYS IF CHANGES IN DISTRIBUTION AND HOSPITAL BUSINESS PRACTICES CAUSE PHYSICIANS LOSE SOME OF THEIR INFLUENCE IN PURCHASING DECISIONS THE CURRENT SIZE AND SKILLS OF US SURGICAL'S SALES FORCE MIGHT BE A LUXURY THEY HAVE THE CRACK TROOPS OF THE SURGICAL SALES FIELD SAYS MR KRUGER DO YOU NEED TO HAVE THEM OUT THERE IN THE FIELD BANGING AWAY ON DOCTORS YOU MAY NOT NEAL SELTZER A PORTFOLIO MANAGER WITH WILLIAM BLAIR & CO IN CHICAGO WHICH OWNS SOME 200000 US SURGICAL SHARES EPITOMIZED THE FEELINGS OF MANY SHAREHOLDERS YESTERDAY I HAVE A LUMP IN MY THROAT AND A LUMP IN MY STOMACH SAYS MR SELTZER HE SAYS HE IS PUZZLED THAT STOCK ANALYSTS WERE RECOMMENDING US SURGICAL AS RECENTLY AS TWO WEEKS AGO THE COMPANY'S PROBLEMS HE NOTES DEVELOPED MONTHS AGO IN THE HEALTHCARE INDUSTRY IN GENERAL HE NOTES RIGHT NOW EVERYONE LOOKS LIKE A LOSER FIDELITY INVESTMENTS THE BOSTON MUTUAL FUND GIANT SAYS ITS FUNDS ARE COMPLETELY OUT OF THE STOCK AND HAVEN'T HELD ANY FOR AT LEAST SEVERAL WEEKS FIDELITY WON'T DISCUSS WHETHER THE STOCK LOOKS TEMPTING AT ITS CURRENT LEVEL US SURGICAL IS A GREAT COMPANY A REAL COMPANY SAYS ANDREW FRIEDMAN PORTFOLIO MANAGER AT ASSOCIATED CAPITAL CORP A NEW YORK INVESTMENT FIRM BUT WOULD HE BUY THE STOCK RIGHT NOW TODAY NO MR FRIEDMAN TURNED BEARISH ON US SURGICAL MONTHS AGO WHEN HE DETECTED THAT HOSPITALS WERE FREEZING SPENDING BECAUSE OF QUESTIONS ABOUT HEALTHCARE REFORM IT WAS ONE OF THE MOST INNOVATIVE BESTMANAGED COMPANIES AROUND BUT YOU KNEW THE GOVERNMENT'S HEALTHCARE POLICY CHANGES WERE GOING TO KILL THEM HOSPITALS ARE JUST NOT BUYING WHEN ONE OF THE GREAT GROWTH STOCKS OF THE LAST THREE YEARS GETS SHOT IT'S PROBABLY BEST TO DUCK FOR COVER BUT THERE WILL BE A TIME TO REVISIT US SURGICAL MR FRIEDMAN SAYS AFTER ALL HE SAYS IN A COUPLE OF YEARS THE COMPANY COULD BE EARNING 3 TO 4 A SHARE AND THEN THE STOCK WON'T BE TRADING AT 10 TIMES EARNINGS YEAR ENDED DEC 31 1992 FOURTH QUARTER DEC 31 1992 9308190107 930630 ENVIRONMENT ON EVE OF TRIAL COURT DOCUMENTS SHOW DUPONT KNEW OF BENLATE RISK FOR YEARS BY SCOTT MCMURRAY STAFF REPORTER OF THE WALL STREET JOURNAL AS THE FIRST OF HUNDREDS OF DAMAGE SUITS AGAINST DUPONT CO GOES TO TRIAL TUESDAY PREVIOUSLY UNDISCLOSED COMPANY MEMOS AND COURT RECORDS INDICATE THAT DUPONT OFFICIALS HAVE KNOWN FOR AT LEAST A DECADE THAT ITS BENLATE FUNGICIDE CAN KILL OR DAMAGE PLANTS THE CHEMICAL COMPANY HAS REPEATEDLY DENIED THAT BENLATE HARMS PLANTS OR THAT IT COVERED UP ANY EVIDENCE ABOUT THE FUNGICIDE BUT THE LATEST DOCUMENTS PAINT A DIFFERENT PICTURE IN 1983 FOLLOWING COMPLAINTS FROM BELGIAN GREENHOUSE OWNERS DUPONT SCIENTISTS CONCLUDED THAT BENLATE CAN KILL OR DAMAGE ORNAMENTAL PLANTS UNDER CERTAIN HOT AND HUMID CONDITIONS COURT DEPOSITIONS OF DUPONT EXECUTIVES AND SCIENTISTS SHOW ONE OF THE BELGIAN GROWERS LUCIEN VERDONCK SAID IN AN INTERVIEW THIS WEEK THAT 40 TO 50 OF BENLATE CAUSED TENS OF THOUSANDS OF DOLLARS OF DAMAGE IN HIS HOTHOUSES BUT DUPONT TOOK NO ACTION IN THE MID1980S TO WARN CUSTOMERS A 1985 MEMO FROM ONE DUPONT AGRICULTURAL PRODUCTS OFFICIAL SAYS A WARNING LABEL FOR BENLATE WAS BEING DELAYED UNTIL ALL DAMAGE CLAIMS WERE SETTLED FOR OBVIOUS LEGAL REASONS BUT THE WARNING WAS NEVER ADDED DUPONT OFFICIALS KNEW THAT THE GRANULAR DF FORM OF BENLATE INTRODUCED IN 1987 WAS CONTAMINATED REPEATEDLY WITH ULTRAPOTENT SULFONYLUREA HERBICIDES THAT ARE TOXIC TO ORNAMENTAL PLANTS AT EXTREMELY LOW DOSES A JUNE 1991 MEMO SOLELY CONCERNING SULFONYLUREA OR SU PRODUCTION THAT WAS WRITTEN BY MILT WARDEH AN AGRICULTURAL PRODUCTS OFFICIAL REFERS TO THE LAST TWO BENLATE CROSSCONTAMINATIONS THE MOST RECENT ONE OCCURRING IN JANUARY 1991 THE MEMO IDENTIFIES ELEVEN DIFFERENT WAYS THAT SU DUST CAN GET INTO ENVIRONMENT AND BE A SOURCE OF CONTAMINATION DUPONT PRODUCED BENOMYL THE ACTIVE INGREDIENT IN BENLATE AND SUS AT THE SAME PLANT SITE IN BELLE WVA DUPONT RECALLED BENLATE DF IN MARCH 1991 MEMOS WRITTEN LAST SUMMER INDICATE THAT DUPONT WAS TESTING FOR SULFONYLUREAS IN BENLATE ONLY AT A PARTSPERMILLION LEVEL IN 1991 THE TIME WHEN THE WARDEH MEMO SAYS THE LATEST CONTAMINATION OCCURRED BUT DUPONT SCIENTISTS CONFIRM THAT SULFONYLUREA HERBICIDES ARE TOXIC TO PLANTS AS WELL AS WEEDS AT PARTS PER BILLION QUALITY CONTROL WAS SLACK TO NONEXISTENT AT TIMES AT THE COMPANY'S AGING BELLE PLANT SITE A MEMO WRITTEN LAST JULY BY JOHN K OLSEN THE PLANT OFFICER IN CHARGE OF CROSSCONTAMINATION PREVENTION ASKS IF WE ARE SO CONCERNED ABOUT BENLATE WHY DO WE USE SOME LOTS OF RAW MATERIAL THAT NEED TO BE SCREENED TO GET THE JUNK' OUT IE HARDHATS WOOD WIRE IF PHYSICAL CONTAMINATION IS SO HIGH WHAT DOES THAT SAY ABOUT THE POTENTIAL FOR CHEMICAL CONTAMINATION DUPONT PAID A RECORD 500 MILLION IN DAMAGES IN 1991 AND 1992 TO GROWERS WHO CLAIMED BENLATE KILLED OR DAMAGED THEIR ORNAMENTAL PLANTS BUT IT HALTED PAYMENTS IN NOVEMBER IT SAYS ITS EXTENSIVE FIELD TESTS SHOWED THAT THE FUNGICIDE COULDN'T HAVE CAUSED THE DAMAGE EVEN AT SEVERAL TIMES NORMAL USAGE DOSES THE COMPANY ALSO DENIES THAT BENLATE WHOSE ACTIVE INGREDIENT BENOMYL CAN CAUSE CANCER IN TEST ANIMALS HURTS HUMAN HEALTH IF USED PROPERLY AND EDGAR S WOOLARD JR DUPONT'S CHIEF EXECUTIVE DENIES THAT DUPONT HAS COVERED UP ANY EVIDENCE THAT ITS BENLATE FUNGICIDE HARMS PLANTS IN MAY US DISTRICT JUDGE J ROBERT ELLIOTT WHO WILL PRESIDE OVER THE JULY 6 TRIAL DOUBLED AN EARLIER 500000 CONTINGENT FINE TO 1 MILLION TO PENALIZE DUPONT FOR NOT PRODUCING DOCUMENTS FOR PLAINTIFFS AS REQUIRED AT A JUNE 11 HEARING THE JUDGE CONCLUDING THAT DUPONT WAS STILL WITHHOLDING KEY DOCUMENTS FROM THE GROWERS THREATENED TO TAKE THE RARE STEP OF DIRECTING A JURY TO FIND DUPONT LIABLE FOR PLANT DAMAGE CAUSED BY BENLATE THE JUDGE WENT A STEP FURTHER AT A PRETRIAL HEARING YESTERDAY THREATENING TO DIRECT THE JURY TO FIND DUPONT LIABLE FOR PUNITIVE DAMAGES AS WELL ATLANTA ATTORNEY C NEAL POPE WHO REPRESENTS THE FOUR GROWERS TAKING DUPONT TO COURT NEXT WEEK CHARGES THAT DUPONT KNEW THAT THEY HAD A PRODUCT THAT WAS CONTAMINATED AND WAS KILLING PLANTS BUT BY 1992 THEY WERE RUNNING OUT OF THE MONEY THEY HAD RESERVED TO PAY FOR THE DAMAGES SO THEY DID TESTS TO SHOW THE PROBLEM WASN'T BENLATE THE FOUR GROWERS SEEK A TOTAL OF 158 MILLION IN ACTUAL AND PUNITIVE DAMAGES AT STAKE NOW FOR DUPONT ARE HUNDREDS OF MILLIONS OF DOLLARS IN ADDITIONAL CROP AND PUNITIVE DAMAGE PAYMENTS IF COURTS DETERMINE BENLATE DAMAGED PLANTS AND DUPONT DEFRAUDED GROWERS BY WITHHOLDING EVIDENCE ADVERSE JUDGMENTS THAT HIGHLIGHT CONTAMINATION BY SULFONYLUREA HERBICIDES COULD ALSO SET BACK DUPONT'S NEARLY 2 BILLION AGRICULTURAL PRODUCTS BUSINESS DUPONT HAS BEEN COUNTING ON RAPID GROWTH IN LOWDOSE SULFONYLUREA SALES TO KEEP THIS BUSINESS THRIVING THE ENVIRONMENTAL PROTECTION AGENCY COULD ALSO IMPOSE MULTIMILLIONDOLLAR FINES AND POSSIBLY REFER THE CASE TO THE JUSTICE DEPARTMENT FOR CRIMINAL PROSECUTION IF IT FINDS THAT DUPONT DIDN'T REPORT CONTAMINATION OR ADVERSE EFFECTS ON PLANTS TO THE AGENCY IN A JUNE 17 LETTER THE AGENCY TOLD DUPONT THAT ITS CONCERNS HAVE BEEN GROWING OVER THE MONTHS AS IT APPEARS THAT INFORMATION ESSENTIAL TO PERFORMANCE OF OUR FUNCTION AS THE PESTICIDE REGULATORY AGENCY HAS BEEN WITHHELD THE LATEST INTERNAL DUPONT DOCUMENTS SURFACED AT A PRETRIAL HEARING YESTERDAY IN COLUMBUS GA AND IN OFFICIAL TRANSCRIPTS OF A JUNE 11 PRETRIAL HEARING SOME OF WHICH HAD BEEN CLOSED TO THE PUBLIC OTHER INFORMATION WAS INCLUDED IN DEPOSITIONS AND OTHER DOCUMENTS IN THE GEORGIA CASE THAT WERE BRIEFLY OPEN TO THE PUBLIC BEFORE DUPONT ASKED THAT THEY BE SEALED UNTIL TRIAL DUPONT SPOKESWOMAN PATRICIA GETTER SAYS THE COMPANY DISPUTES THE SIGNIFICANCE OF THE LATEST BENLATE EVIDENCE MS GETTER SAYS THE BENLATE DAMAGE REPORTED BY BELGIAN GROWERS IN 1983 WAS AN ABERRANT SITUATION THAT IS NOT RELATED TO CURRENT ALLEGATIONS SHE ADDS THAT THE COMPANY HAS TESTED NUMEROUS LOTS OF BENLATE AT THE PARTS PER BILLION LEVEL AND HAS NEVER CONFIRMED THE PRESENCE OF SULFONYLUREA HERBICIDES MS GETTER SAYS THAT DUPONT ATTORNEYS HAVE DEPOSED MR WARDEH AND HE NOW SAYS THAT HIS 1991 MEMO WAS ACTUALLY REFERRING TO AN EARLIER CONTAMINATION OF BENLATE WITH ATRAZINE HERBICIDE AT PLANTS OWNED BY COMPANIES THAT FORMULATED BENLATE FOR DUPONT MR WARDEH COULDN'T BE REACHED FOR COMMENT IN THE FIRST SEVERAL MONTHS AFTER BENLATE DF'S RECALL IN MARCH 1991 DUPONT SCIENTISTS GENERATED A FLURRY OF MEMOS SUGGESTING HOW BENLATE APPEARED TO BE DAMAGING PLANTS AT RECOMMENDED USE LEVELS SINCE THE DAMAGE WAS SO WIDESPREAD AMONG ORNAMENTAL PLANT GROWERS ESPECIALLY IN FLORIDA AND BENLATE APPEARED TO BE THE ONLY COMMON DENOMINATOR DUPONT STARTED SETTLING CLAIMS WITHOUT ADMITTING OR DENYING LIABILITY NOT EVERYONE AGREED WITH THAT STRATEGY IN SEPTEMBER 1991 ORLANDO ATTORNEY THOMAS BURKE WHO WAS ACTING AS DUPONT'S NATIONAL LEGAL COORDINATOR WROTE A DUPONT ATTORNEY IN WILMINGTON DEL IT IS A MUCH BETTER LITIGATION POSITION TO STATE THAT WE HAVE LOOKED ARE LOOKING AND WILL CONTINUE TO LOOK BUT HAVE HAD NO SUCCESS LEAVING THE ISSUE UNRESOLVED THAN IT IS TO HAVE TO ADMIT THAT WE HAVE ISOLATED THE MECHANISM OF INJURY THE TEXT OF THE LETTER WAS RECENTLY MADE PUBLIC BY THE STATE OF FLORIDA PLAINTIFFS' ATTORNEYS CHARGE THAT DUPONT SPENT THE NEXT 14 MONTHS IMPLEMENTING MR BURKE'S STRATEGY WITH GREAT FANFARE THE COMPANY ANNOUNCED THAT IT WAS CONDUCTING FIELD TESTS TO GET TO THE BOTTOM OF THE BENLATE PROBLEM THE TESTS COST 12 MILLION AND INVOLVED 100 SCIENTISTS DUPONT SAID A PANEL OF SIX OUTSIDE SCIENTISTS WAS CONVENED TO HELP GUIDE THE RESEARCH AND CRITIQUE THE RESULTS BUT DUPONT DIDN'T DISCLOSE THAT THE SCIENTISTS WERE EACH PAID 1000 A DAY BY MR BURKE'S LAW FIRM PANEL MEMBERS AGREED AMONG OTHER THINGS TO WORK WITH THE ORLANDO LAW FIRM IN ANY MANNER WHICH MAY BE REASONABLY NECESSARY TO PROMOTE THE EFFECTIVE LEGAL REPRESENTATION OF DUPONT IN ANY PENDING OR THREATENED LEGAL ACTIONS INVOLVING BENLATE 50 DF ACCORDING TO AN AGREEMENT THAT THE SCIENTISTS SIGNED ONE OF THE PANEL MEMBERS BIOLOGIST JOSEPH VARNER OF WASHINGTON UNIVERSITY IN ST LOUIS SAYS THAT NEITHER THE FEE NOR ANY CONDITIONS OF THE AGREEMENT COLORED HIS OR THE PANEL'S CONCLUSION LAST FALL THAT BENLATE WASN'T DAMAGING PLANTS WILLIAM R LAWSON OWNS THE BUSH RANCH IN SOUTHERN GEORGIA AND IS THE LEAD PLAINTIFF SUING DUPONT IN THE COLUMBUS FEDERAL COURT MR LAWSON WAS A LOYAL USER OF BENLATE AND OTHER DUPONT PRODUCTS WHEN HIS PLANTS WERE DECIMATED TWO YEARS AGO AND INITIALLY HE DIDN'T HOLD THE INCIDENT AGAINST DUPONT BUT AFTER TWO YEARS OF WHAT HE CLAIMS IS A COVERUP OF KEY EVIDENCE ABOUT BENLATE HE ISN'T SO FORGIVING THE ACCIDENT IN 1991 DIDN'T CHANGE MY VIEW OF DUPONT ITS ACTIONS IN LITIGATION ARE WHAT JAUNDICED MY OPINION HE SAYS MARTIN DU BOIS IN BRUSSELS CONTRIBUTED TO THIS ARTICLE MAY 1989 FIRST INCIDENT OF BENLATE CONTAMINATION WITH ATRAZINE AT OUTSIDE COMPANIES FORMULATING BENLATE DUPONT AND FORMULATORS FINED BY THE ENVIRONMENTAL PROTECTION AGENCY MARCH 1991 SECOND BENLATE CONTAMINATION AND RECALL OF BENLATE DF WIDESPREAD REPORTS OF ORNAMENTAL PLANT DAMAGE LEAD DUPONT TO SUSPECT BENLATE AND START PAYING DAMAGES NOVEMBER 1992 AFTER PAYING 500 MILLION IN DAMAGES AND 12 MILLION FOR FIELD TESTS DUPONT SAYS BENLATE DOES NOT HARM PLANTS HALTS PAYMENTS MAYJUNE 1993 FEDERAL JUDGE HITS DUPONT WITH 1 MILLION CONTINGENT FINE FOR FAILING TO PRODUCE EVIDENCE TO GROWERS THREATENS TO DIRECT JURY IN JULY 6 TRIAL TO FIND DUPONT LIABLE FOR BENLATE DAMAGES SEE RELATED LETTER LETTERS TO THE EDITOR DUPONT ANSWERS FUNGICIDE CHARGES WSJ AUG 19 1993 9306300061 YY93 MM08 9308120095 930629 EMPTY SEATS DESPITE HUGE OUTLAYS TRANSIT SYSTEMS FAIL TO LURE BACK RIDERS A BIG PROBLEM IS THE INABILITY TO HANDLE PEOPLE GOING FROM SUBURB TO SUBURB BUT THE PROPONENTS PRESS ON BY FREDERICK ROSE STAFF REPORTER OF THE WALL STREET JOURNAL TWO DECADES AFTER THE 1970S ENERGY CRISIS SPARKED AMBITIOUS COSTLY EFFORTS TO MOVE COMMUTERS FROM GASGUZZLING CARS TO SUBWAY TROLLEY AND BUS SYSTEMS SOMETHING ODD HAS HAPPENED AMERICANS ARE LESS LIKELY THAN EVER TO USE PUBLIC TRANSIT THE SYSTEMS HANDLE SCARCELY 5 OF ALL COMMUTING DOWN FROM 9 IN 1970 ACCORDING TO THE 1990 CENSUS IN BIG CITIES WITH SUBWAYS THE STRONGEST CENTERS OF TRANSIT USE LESS THAN 4 OF THE OVERALL MOVEMENT OF PEOPLE COMMUTING PLUS ALL OTHER LOCAL TRAVEL IS ON PUBLIC TRANSIT SUBURBIA'S NUMBERS ARE FAR LOWER YET THE TRANSIT DREAM OF THE 1970S SEEMS TO HAVE ACQUIRED A LIFE OF ITS OWN BILLIONS OF TAX DOLLARS ARE STILL BEING SPENT ON ELABORATE RAIL SYSTEMS FAVORED BY CITY ENGINEERING AND CONSTRUCTION INTERESTS EVEN THOUGH THE SYSTEMS' DESIGNS ARE INCREASINGLY AT ODDS WITH THE SHAPE OF URBAN AMERICA TRANSPORTATION SECRETARY FEDERICO PENA ARGUES THAT WE CAN'T KEEP RELYING ON THE AUTOMOBILE WE HAVE GOT TO FIND ALTERNATIVE TRANSIT SYSTEMS TO SERVE GROWING POPULATIONS PARTICULARLY GROWING SUBURBAN POPULATIONS AND INDUSTRY SUPPORTERS SAY MORE CONSTRUCTION IS NEEDED TO MEET FUTURE DEMAND YOU HAVE THE INDISPUTABLE FACT THAT RAIL TRANSIT IS THE MOST COSTEFFECTIVE MOST FUELEFFICIENT AND MOST ENVIRONMENTALLY DESIRABLE MODE OF TRANSPORT CONTENDS WILLIAM AGEE CHAIRMAN OF MORRISON KNUDSEN INC THE SOLE USBASED MAKER OF RAIL TRANSIT CARS OVER THE YEARS WE WILL SEE MORE EXPANSION AND CONSTRUCTION OF TRANSIT SYSTEMS EVEN SUPPORTERS OF MASS TRANSIT CONCEDE HOWEVER THAT SOMETHING HAS GONE WRONG THE PROMISE OF TRANSIT IS LARGELY UNFULFILLED AND THAT IS A TRAGEDY SAYS DAVID GUNN FORMER HEAD OF BOTH NEW YORK'S AND PHILADELPHIA'S TRANSIT AGENCIES AND NOW GENERAL MANAGER OF THE WASHINGTON DC METROPOLITAN AREA TRANSIT AUTHORITY IN ONE SENSE THE PREDICTIONS OF 20 YEARS AGO ARE COMING TRUE WITHOUT A SHIFT TO PUBLIC TRANSIT STREETS AND HIGHWAYS HAVE BECOME MORE AND MORE CLOGGED WITH CARS ENCOURAGED BY HEAVY SPENDING ON HIGHWAYS CHEAP GASOLINE AND EMPLOYERPROVIDED PARKING 87 OF COMMUTERS TAKE CARS TO WORK UP FROM 78 IN 1970 NEARLY THREEQUARTERS OF URBAN FREEWAYS ARE CONGESTED AT RUSH HOUR UP FROM ONLY HALF 10 YEARS AGO PUBLIC TRANSIT HAS ABSORBED NEARLY 70 BILLION IN FEDERAL MONEY IN THE PAST TWO DECADES AND BILLIONS MORE IN STATE AND LOCAL FUNDS THE CLINTON ADMINISTRATION IS CALLING FOR NEARLY FULL FUNDING OF THE 31 BILLION IN 199397 SPENDING AUTHORIZED BY THE 1991 INTERMODAL SURFACE TRANSPORTATION EFFICIENCY ACT THUS MAKING UP FOR A DROP IN FEDERAL TRANSIT OUTLAYS DURING THE REAGAN AND BUSH YEARS BUT THE LOWER FEDERAL SPENDING WAS MORE THAN OFFSET BY RISING STATE AND LOCAL OUTLAYS AND OVERALL CAPITAL SPENDING MORE THAN DOUBLED IN THE PAST DECADE AND IS STILL CLIMBING MONEY IS SPENT IN DUMB WAYS SAYS DON H PICKRELL CHIEF ECONOMIST AT THE VOLPE CENTER THE TRANSPORTATION DEPARTMENT'S RESEARCH ARM MANY NEW SUBWAY AND TROLLEY LINES ARE SIMPLY DRAWING PASSENGERS AWAY FROM EXISTING BUS ROUTES OR ARE BEING BUILT TO SERVE SHIFTING CITYSCAPES A PICKRELL STUDY OF 10 NEW TRANSIT LINES BUILT AT A COST OF MORE THAN 16 BILLION FOUND RIDERSHIP RUNNING 15 TO 75 BELOW INITIAL ESTIMATES USED TO JUSTIFY THE PROJECTS FINAL CONSTRUCTION COSTS RANGED ANYWHERE FROM 11 BELOW BUDGET TO MORE THAN DOUBLE IT MIAMI FOR INSTANCE SPENT 12 BILLION TO BUILD A 21MILE RAIL SYSTEM ITS OPERATING COSTS PER SUBWAY CAR WERE THREE TIMES THE AMOUNT FORECAST MR PICKRELL'S STUDY SHOWED AND FOR THE YEAR THE STUDY COVERED 1989 THE COSTLY SYSTEM DREW A MERE 15 OF THE RIDERSHIP ORIGINALLY PROJECTED IT HAS PICKED UP SOMEWHAT SINCE THEN DESPITE THE SYSTEM'S RECORD LOCAL AUTHORITIES ARE TRYING TO PERSUADE THE FEDERAL GOVERNMENT TO UNDERWRITE AN EXTENSION OF THE SYSTEM THROUGH HURRICANERAVAGED RURAL SOUTH DADE COUNTY IN LOS ANGELES A NEW 900 MILLION TROLLEY SYSTEM CARRIES 35000 PASSENGERS EACH WEEKDAY OR BARELY MORE THAN THE RIDERSHIP OF JUST ONE OF THE BUS LINES THAT PARALLEL THE TROLLEY ROUTE MOREOVER THE TROLLEY SYSTEM WHICH PLANNERS HAD EXPECTED TO COST ABOUT 200 MILLION TRAVELS THE 21MILE LINE MORE SLOWLY THAN AN EXPRESS BUS SERVICE IT REPLACED IN PORTLAND ORE A TROLLEY SYSTEM BUILT FOR 215 MILLION 25 MORE THAN PROJECTED IS DRAWING LESS THAN HALF THE RIDERSHIP FORECAST EVEN SO THAT PROJECT IS CONSIDERED RELATIVELY SUCCESSFUL BY MR PENA AND OTHER PUBLICTRANSIT ADVOCATES UNDETERRED CITIES KEEP DRAWING UP PLANS FOR SUBWAYS AND TROLLEYS IN SOME CASES THE NOSTALGIA THAT TRAINS EVOKE MAY HAVE SOMETHING TO DO WITH IT MUNICIPAL EGOS OFTEN ARE HEAVILY INVOLVED EVERY CITY OF ANY SIZE THINKS IT NEEDS A SUBWAY THESE DAYS SAYS SIGURD GRAVA A VICE PRESIDENT AT PARSONS BRINKERHOFF AN ENGINEERING CONCERN AND A PROFESSOR OF URBAN PLANNING AT COLUMBIA UNIVERSITY ATLANTA IS PLANNING MORE THAN 500 MILLION OF SUBWAY ADDITIONS PORTLAND IS CONTEMPLATING A 944 MILLION TROLLEY EXPANSION LOS ANGELES IS DIGGING A 125 BILLION SECOND PHASE TO ITS NEWLY OPENED FOURMILE SUBWAY WITH A THIRD 1 BILLION SECTION SOON TO FOLLOW FEDERAL SPENDING FAVORS RAIL WITH CONGRESSIONAL EARMARKING OFTEN DIRECTING MONEY TO HIGHPROFILE BUT QUESTIONABLE PROJECTS IN ALL GRANTS FOR RAIL SYSTEMS TOOK UP TWOTHIRDS OF CAPITAL OUTLAYS BY THE FEDERAL TRANSIT ADMINISTRATION IN THE FISCAL YEAR ENDED LAST SEPT 30 SUBWAY AND TROLLEY ADVOCATES PREDICT THAT THE RAIL PROJECTS WILL EVENTUALLY PROVE MERITORIOUS THIS IS A LONGTERM INVESTMENT CONTENDS JACK R GILSTRAP EXECUTIVE VICE PRESIDENT OF THE AMERICAN PUBLIC TRANSIT ASSOCIATION AND AN INDUSTRY LOBBYIST WE WILL ARGUE ETERNALLY THAT MASS TRANSIT HAS AN EXTREMELY IMPORTANT ROLE TO PLAY IN ALL AREAS ENVIRONMENT ENERGY CONSERVATION URBAN POLICY ECONOMIC ISSUES UNEMPLOYMENT EVEN HEALTH CARE WELLESTABLISHED SUBWAYS ARE HEAVILY USED THE NATION'S LARGEST NEW YORK'S CARRIES ABOUT 32 MILLION RIDERS EACH WEEKDAY WASHINGTON'S BUILT AT A COST OF ALMOST 8 BILLION CARRIES MORE THAN HALF A MILLION PEOPLE EACH WORKDAY SAN FRANCISCO'S BART AFTER A SLOW START 20 YEARS AGO HAS SHOWN STRONG GROWTH IN RECENT YEARS YET ALL REQUIRE SUBSIDIES TO COVER COSTS EVEN WHERE TRANSIT PLAYS A BIG ROLE THE TRENDS ARE WORRISOME THE 1990 CENSUS FOUND THAT 53 OF NEW YORKERS TOOK PUBLIC TRANSIT TO WORK DOWN FROM 56 IN 1980 AND 62 IN 1970 CHICAGO PHILADELPHIA BOSTON AND BALTIMORE SHOWED SIMILAR DECLINES EVEN WITH ITS NEW SUBWAY WASHINGTON'S PROPORTION OF TRANSIT USERS HAS STAYED AT ABOUT 37 FOR TWO DECADES IN THEIR HEYDAY IN THE 1920S AMERICAN TRANSIT SYSTEMS CARRIED PASSENGERS ON MORE THAN 16 BILLION TRIPS A YEAR AND ACCOUNTED FOR ALMOST ALL URBAN TRAVEL TO WORK BUT EXCEPT FOR A BULGE DURING WORLD WAR II WHEN GASOLINE RATIONING LIFTED RIDERSHIP CLOSE TO 25 BILLION TRANSIT USE DWINDLED TO BARELY SEVEN BILLION RIDES IN THE EARLY 1970S SINCE 1980 RIDERSHIP HAS BOUNCED BETWEEN EIGHT BILLION AND NINE BILLION EVEN AS NEW SYSTEMS STARTED UP UNDERLYING MASS TRANSIT'S PROBLEMS IS THE DRAMATIC CHANGE IN EMPLOYMENT PATTERNS FOR EXAMPLE MORE AND MORE PEOPLE USING COMPUTERS AND FAX MACHINES WORK AT HOME ALL OR PART OF THE TIME EVEN MORE IMPORTANT IS THE CHANGING SHAPE OF URBAN AREAS THE STANDARD METROPOLIS ONCE WAS A BULL'SEYE A CENTRAL BUSINESS DISTRICT RINGED BY SUBURBS BUT INCREASINGLY METROPOLITAN AREAS HAVE CARPETS OF SUBURBAN DEVELOPMENT INTERRUPTED BY COMMERCIAL AREAS TODAY TWOTHIRDS OF COMMUTING GOES FROM SUBURB TO SUBURB WE CAN'T USE THE OLD CLASSICAL MODEL OF COMMUTING ANYMORE CONTENDS ALAN PISARSKI A FALLS CHURCH VA CONSULTANT SUBURBIA IS HARD FOR FIXEDRAIL LINES TO ACCOMMODATE UNLIKE THE HUBANDSPOKE LAYOUT OF TRANSIT LINES CONVERGING IN A CENTRAL CITY SUBURBAN TRAVEL PATTERNS LOOK LIKE SPIDER WEBS YET MANY TRANSIT PLANNERS CONTINUE TO LAY OUT HUBANDSPOKE DESIGNS MR PISARSKI SAYS BECAUSE THAT'S WHAT THEY KNOW HOW TO DO ATLANTA'S 27 BILLION RAIL SYSTEM FOR INSTANCE FOCUSES ON DOWNTOWN WITH A CROSS OF LINES THAT MEET THERE SINCE THE SUBWAY OPENED IN 1979 HOWEVER DOWNTOWN ATLANTA HAS DECLINED IN RELATIVE IMPORTANCE TRAFFIC WEALTH AND EMPLOYMENT HAVE GROWN FASTER ON THE PERIPHERY SO DESPITE THE EXPANDED RAIL SYSTEM PUBLIC TRANSIT ACCOUNTED FOR 20 OF COMMUTING IN 1990 DOWN FROM 25 IN 1980 AND RAIL RIDERSHIP HAS STAGNATED MEANWHILE TRAFFIC CONGESTION HAS INCREASED RAPIDLY TRANSIT SUPPORTERS SAY SUCH CASES ILLUSTRATE A NEED FOR BETTERCOORDINATED URBAN PLANNING IF TRANSIT ROUTES DON'T FIT THE WAY CITIES ARE DEVELOPING THEY ADD CITIES SHOULD BE BUILT TO FIT THE ROUTES LANDUSE PLANNING IN THE US IS A WILD AND WONDERFUL AFFAIR COMPLAINS MR GILSTRAP OF THE AMERICAN PUBLIC TRANSIT ASSOCIATION STRONGER DEVELOPMENT CONTROLS HOWEVER ARE LONGTERM MEASURES AT BEST A BETTER SOLUTION FOR THE FORESEEABLE FUTURE IS TO USE EXISTING ROADWAYS MORE EFFICIENTLY PARTICULARLY THROUGH THE SIMPLE INEXPENSIVE RESORT TO CAR POOLING TO REDUCE RUSHHOUR CONGESTION PLANNERS SAY BUT ONE OF THE MOST ALARMING FINDINGS OF THE 1990 CENSUS WAS THAT CAR POOLING IS DECLINING RAPIDLY AS A SHARE OF TRANSIT SAYS JOSE GOMEZIBANEZ A PROFESSOR OF URBAN PLANNING AT HARVARD IN JUST A DECADE CAR POOLERS DROPPED TO 13 FROM 20 OF COMMUTERS ONE REASON GIVEN THE EVERINCREASING COMPLICATIONS OF TWOWORKER FAMILIES AND SUBURBAN LIVING PEOPLE ARE MOVING IN EVER MORE DIFFUSE AND DIFFICULT PATTERNS AMONG PLACES OF WORK SCHOOLS AND ERRANDS SUCH AS GOING TO THE DRY CLEANER MR GOMEZIBANEZ NOTES WITH SUFFICIENT INCENTIVES AND PENALTIES FOR SOLO DRIVING PLANNERS BELIEVE THAT FAR MORE CAR POOLING COULD NEVERTHELESS BE ENCOURAGED THE EMPTY SEATS IN COMMUTERS' CARS ARE OUR MOST DRAMATIC SOURCE OF TRANSIT CAPACITY SAYS MR PICKRELL OF THE TRANSPORTATION DEPARTMENT BY FEDERAL RECKONING AN INCREASE TO ABOUT 16 PERSONS PER CAR AT RUSH HOUR FROM THE CURRENT 11 WOULD DEFER THOUSANDS OF MILES OF HIGHWAY CONSTRUCTION AND SAVE BILLIONS OF DOLLARS IN LOS ANGELES THE REGION'S AIR QUALITY CONTROL DISTRICT PROGRAM IS PUSHING RIDESHARING WITH A BLITZ OF ADVERTISING AND REGULATIONS REQUIRING EMPLOYERS OF MORE THAN 100 PEOPLE TO INCREASE THE AVERAGE RIDERSHIP IN EMPLOYEE CARS OF THE 13 MILLION PEOPLE COVERED BY THE PLAN THE AGENCY ESTIMATES 370000 ARE CAR POOLING RAISING AVERAGE RIDERSHIP TO ABOUT 124 PERSONS PER CAR FROM 11 AND IN HOUSTON WHERE FREEWAYS SPRAWL ACROSS AN AREA A THIRD THE SIZE OF MARYLAND AND BARELY 4 OF COMMUTERS USE PUBLIC TRANSIT THE TINY PERCENTAGE OF TRANSIT USERS GREW IN THE 1980S TRAFFIC CONGESTION DECLINED EVEN THOUGH MORE PEOPLE COMMUTED AND THE DISTANCES TRAVELED INCREASED WHAT ENABLED HOUSTON TO BUCK THE NATIONAL TREND SINCE THE EARLY 1980S THE CITY HAS INSTALLED 65 MILES OF TRANSITWAYS IN THE MIDDLE OF FREEWAYS THESE SINGLE LANES WERE SET ASIDE FOR HIGHOCCUPANCY VEHICLES BUSES VANS AND CAR POOLS THEY ARE RELATIVELY CHEAP ABOUT ONETENTH THE COST PER MILE OF RAIL SYSTEMS BUT MOVE FAR MORE PEOPLE THAN REGULAR FREEWAY LANES AT PEAK PERIODS REVERSIBLE COMMUTER LANES NEARLY DOUBLE THE NUMBER OF PEOPLE CARRIED ON A FREEWAY SIMPLY BY ENCOURAGING MORE PEOPLE TO RIDE TOGETHER IN RETURN FOR A NONSTOP TRIP HOUSTON SAYS DANIEL BRAND VICE PRESIDENT FOR TRANSPORTATION STUDIES AT CONSULTANTS CHARLES RIVER ASSOCIATES IN CAMBRIDGE MASS IS A FASCINATING CASE STUDY A PLACE TO WATCH SEE RELATED LETTERS LETTERS TO THE EDITOR LET'S START WORKING ON THE RAILROADS WSJ AUG 12 1993 9306290102 YY93 MM08 9308110107 930607 REVIEW & OUTLOOK EDITORIAL SEX AND SCHOOLCHILDREN WHEN WE WERE VERY YOUNG NOT ALL THAT LONG AGO IF THE WORD HARASSMENT TURNED UP IN A CLASSROOM IT WAS BECAUSE THE TEACHER WANTED US TO REMEMBER THAT IT HAD ONE R AND TWO S'S THESE DAYS SPELLING IS PASSE OUTSIDE THE NATIONAL SPELLING BEE INSTEAD THE WORD IS TURNING UP IN SCHOOLS ALONGSIDE TWO OTHER FAVORITE WORDS OF OUR AGE SEXUAL AND VICTIM AS IN VICTIMS OF SEXUAL HARASSMENT IN A MUCH BALLYHOOED REPORT RELEASED A FEW DAYS AGO THE AMERICAN ASSOCIATION OF UNIVERSITY WOMEN ANNOUNCED THAT FOUR OUT OF FIVE CHILDREN HAVE EXPERIENCED SEXUAL HARASSMENT AT SCHOOL AMERICA'S SCHOOLS ARE EXPERIENCING A SEXUAL HARASSMENT EPIDEMIC WARNS ALICE MCKEEN PRESIDENT OF THE AAUW'S EDUCATIONAL FOUNDATION WHICH COMMISSIONED A STUDY OF 1600 PUBLICSCHOOL STUDENTS IN GRADES 8 THROUGH 12 EVERYDAY STUDENTS ARE TARGETS OF SEXUAL HARASSMENT IN HOSTILE HALLWAYS AND CLASSROOMS BY SEXUAL HARASSMENT THE AAUW MEANS NOT ONLY THE LIKES OF SPUR POSSE THE INFAMOUS LAKEWOOD CALIF BOYS WHO EARNED CLUB POINTS FOR HAVING SEX WITH CLASSMATES TAKING A CUE FROM THE FEMINISTS ON COLLEGE CAMPUSES WHO HAVE REDEFINED THE WORD RAPE THE AAUW DEFINES SEXUAL HARASSMENT AS NOT JUST TOUCHING BUT ALSO MAKING SEXUAL COMMENTS JOKES GESTURES OR LOOKS WRITING SEXUAL GRAFFITI ON BATHROOM WALLS SPREADING SEXUAL RUMORS AND CALLING SOMEONE GAY OR LESBIAN GIVEN THIS ELASTIC DEFINITION IT SHOULD COME AS NO SURPRISE TO LEARN THAT 85 OF THE GIRLS AND 75 OF THE BOYS SURVEYED SAY THEY HAVE BEEN SEXUALLY HARASSED IF USING A FOURLETTER WORD OR STARING AT ANOTHER KID IS CONSIDERED SEXUAL HARASSMENT THE ONLY SURPRISE SHOULD BE THAT THE NUMBERS ARE AS LOW AS THEY ARE THIS IS NOT TO SAY THE ISSUE OF SOCALLED SEXUAL HARASSMENT HAS ESCAPED OFFICIAL NOTICE A FEW MONTHS AGO THE US EDUCATION DEPARTMENT SUPPORTED THE SEXUAL HARASSMENT CLAIM OF A SIXYEAROLD MINNESOTA GIRL WHO HAD BEEN EXPOSED TO LEWD LANGUAGE ON HER SCHOOL BUS IT WOULD BE EASY TO MAKE LIGHT OF ALL THIS COMMON SENSE TELLS US THAT IT IS PREPOSTEROUS TO LABEL MOST BEHAVIOR BY CHILDREN HOWEVER INAPPROPRIATE AS SEXUAL HARASSMENT THE MENACING TITLE OF AAUW REPORT HOSTILE HALLWAYS SOUNDS LIKE THE NAME OF THE LATEST SUMMER SLASHER MOVIE IN WHICH NO DOUBT FREDDIE WOULD STALK THE CORRIDORS OF PS 22 LOOKING FOR A BRA STRAP TO SNAP BUT THE MATTER IS TOO COMPLEX TO LAUGH AWAY FEW WOULD DENY THAT THERE HAS BEEN A GENERAL COARSENING OF BEHAVIOR IN THE PUBLIC SCHOOLS IN THE PAST GENERATION HOW COULD THERE NOT BE GIVEN THE COARSENING OF OUR SOCIETY OVERALL IT SHOULDN'T BE SURPRISING THAT A CHILD WHO HEARS OBSCENITIES AND SEXUAL TALK ALL AROUND HIM REPEATS THEM ON THE SCHOOL BUS OR IN THE CLASSROOM AS EVERYONE WHO HASN'T BEEN LOCKED IN A BOX FOR THE PAST 25 YEARS KNOWS OUR POPULAR CULTURE IS FULL OF SEXUAL TALK AND CASUAL SEXUAL BEHAVIOR THE STUDENTS ON FOX TELEVISION'S BEVERLY HILLS 90210 ARE PREOCCUPIED WITH IT A RECENT EPISODE OF THE HIT NBC COMEDY SEINFELD WAS DEVOTED TO THE SIZE OF A CHARACTER'S BREASTS FUNNY MAYBE BUT DON'T COMPLAIN ABOUT WHAT'S GOING ON IN THE HALLWAYS OF THE JUNIOR HIGH SCHOOL THEN THERE'S SEX EDUCATION WHICH WE'RE ALL SUPPOSED TOAUTOMATICALLY RECOGNIZE AS GOOD DON'T BE SURPRISED THOUGH WHEN CHILDREN'S INSTINCTIVE MODESTY ABOUT SEXUAL MATTERS IS BROKEN DOWN AFTER SAY THEY ARE CALLED UPON TO PRACTICE PUTTING CONDOMS ON BANANAS IN COED CLASSROOMS THE CONCERN NOW ABOUT SEXUAL HARASSMENT IN THE SCHOOLS IS PART OF THE GREAT VALUES DEBATE OF THE '90S IF CHILDREN ARE CONFUSED ABOUT HOW TO BEHAVE MAYBE IT'S BECAUSE THEIR MOTHERS AND FATHERS ARE TOO TODAY'S PARENTS CAME OF AGE IN A TIME OF DON'TASKQUESTIONS GRATIFICATION WHEN NO AND LATER WERE LAUGHABLE WORDS AS WE'VE SAID BEFORE THE RULES OF PERSONAL CONDUCT ARE SO FUZZY IN OUR CULTURE NOW THAT THEY OFTEN OBSCURE THE LINE BETWEEN THE CIVILIZED AND THE UNCIVILIZED THE WEAKEST MEMBERS OF SOCIETY SUCH AS CHILDREN SUFFER MOST FROM THIS LACK OF RULES WE DOUBT THE PROBLEM CAN BE FIXED IN WASHINGTON IN COURTROOMS OR EVEN IN THE CLASSROOM A SCREED HANDED DOWN FROM THE EDUCATION DEPARTMENT'S CIVIL RIGHTS DIVISION WON'T HELP NOR WILL CALLING ALL RUDE OR AGGRESSIVE BEHAVIOR SEXUAL HARASSMENT TEACHERS AND PRINCIPALS CAN DO ONLY SO MUCH ESPECIALLY GIVEN THE LIMITS THAT THE COURTS NOW PLACE ON THEIR AUTHORITY THE SOLUTION LIES AT HOME WITH THE KIDS' PARENTS WHO MUST BETTER EXERCISE THEIR RESPONSIBILITY TO TEACH CHILDREN THE DIFFERENCE BETWEEN WHAT'S RIGHT AND WRONG AND TO FOSTER THE NOTION OF SELFCONTROL LEARNING SELFCONTROL WE'D ASSUME WOULD HARDLY BE A CONTROVERSIAL GOAL THERE MAY NOT BE AN EPIDEMIC OF SEXUAL HARASSMENT IN THE SCHOOLS BUT THERE IS A PROBLEM THERE'S A MORAL SICKNESS REFLECTED IN TEENS' SEXUAL BEHAVIOR THAT HAS INFECTED OUR SCHOOLS JUST AS IT HAS INFECTED OUR SOCIETY UNTIL WE FIGURE OUT A REMEDY NONE OF US IS LIKELY TO BE SPARED NOT EVEN SCHOOLCHILDREN SEE RELATED LETTER LETTERS TO THE EDITOR DIRTY LOOKS AND TALK ARE SEXUAL HARASSMENT WSJ AUG 11 1993 9306070033 YY93 MM08 9308050122 930629 LETTERS TO THE EDITOR MALPRACTICE LITIGATION AND HEALTH CARE COSTS IN A MAY 27 EDITORIAL PAGE ARTICLE DAN QUAYLE ATTEMPTED TO USE THE CLINTON ADMINISTRATION'S HEALTH CARE REFORM INQUIRY TO GIVE NEW CURRENCY TO HIS SHOPWORN ATTACKS ON AMERICA'S LEGAL SYSTEM HE WAS JUST PLAIN WRONG ABOUT THE FACTS IN HIS ORIGINAL ATTACK ON LEGAL RIGHTS IN 1991 AND THERE IS AMPLE NEW EVIDENCE THAT HE REMAINS JUST PLAIN WRONG TODAY COMPELLING DOCUMENTATION INDICATES THAT THE IMPACT OF MALPRACTICE LITIGATION ON HEALTH CARE COSTS IS SO SLIGHT THAT IT DEFIES DETECTION TO CITE JUST THREE EXAMPLES REGARDING THE ANNUAL 18 MILLION NEW LAWSUITS CITED DEBORAH HENSLER OF THE RAND INSTITUTE FOR CIVIL JUSTICE HAS ESTIMATED THAT ONLY ABOUT ONE MILLION ARE TORT CASES INCLUDING ALL MEDICAL NEGLIGENCE PRODUCTS LIABILITY AND AUTO COLLISION CASES WHILE NO ONE KNOWS PRECISELY HOW MANY MEDICAL NEGLIGENCE CASES ARE FILED ANNUALLY SEVERAL STUDIES HAVE CONCLUDED THAT NO MORE THAN SIX TO 10 CLAIMS PER 100 NEGLIGENT INJURIES ARE FILED THE CONGRESSIONAL BUDGET OFFICE SEARCHED FOR ANY IMPACT OF MALPRACTICE LITIGATION ON HEALTH COSTS IN 1992 AND FOUND THAT THE COST OF MEDICAL NEGLIGENCE INSURANCE WHICH COVERS ESSENTIALLY ALL COSTS OF MALPRACTICE LITIGATION IS LESS THAN 1 OF THE NATIONAL HEALTH CARE BILL ITS RESEARCHERS ALSO CONCLUDED THAT CHANGES IN NEGLIGENCE LAW WOULD BE UNLIKELY TO CHANGE DAYTODAY MEDICAL PRACTICE SIGNIFICANTLY SINCE THE DEFENSIVE MEDICINE PRACTICES DECRIED BY CYNICS ACTUALLY HELP TO MAKE DIAGNOSIS MORE PRECISE IT IMPROVES THE QUALITY OF CARE AND THEREFORE DECREASES COSTS OVERALL A MAJOR STUDY OF MEDICAL NEGLIGENCE LITIGATION IN NEW JERSEY PUBLISHED IN THE ANNALS OF INTERNAL MEDICINE LAST NOVEMBER UNDERCUTS THE CLAIM THAT TWOTHIRDS OF SUCH CLAIMS LACK MERIT THE RESEARCHERS CONCLUDED THAT UNJUSTIFIED PAYMENTS ARE PROBABLY UNCOMMON IT IS TRULY TIME TO SET ASIDE SELFSERVING MYTHS AND DEAL WITH THE FACTS AS RESPONSIBLY REPORTED BY NONPARTISAN RESEARCHERS HEALTH CARE IS TOO CRITICAL TO BE MIRED IN FOLKLORE SEE RELATED LETTERS LETTERS TO THE EDITOR WHAT LITIGATION DOES TO MEDICAL CARE WSJ AUG 5 1993 9306290023 YY93 MM08 9308040079 930628 REVIEW & OUTLOOK EDITORIAL SHEIK DOWN AMID NEWS OF TERROR RINGS AND TAX BILLS IT'S NOT SURPRISING THAT A FINANCIAL LAWSUIT GOT LOST IN THE HEADLINES LAST WEEK BUT THE SUIT AGAINST SHEIK ZAYED BIN SULTAN ALNAHYAN THE MONARCH OF ABU DHABI DESERVES MORE ATTENTION AS A BREAKTHROUGH IN THE INVESTIGATION OF THE NOTORIOUS BANK OF CREDIT & COMMERCE INTERNATIONAL BCCI THE SUIT IS NOTABLE BECAUSE OF THE LINGERING INFLUENCE OF ABU DHABI EVEN AFTER THE VAST AND CORRUPT BANKING EMPIRE WAS CLOSED BY REGULATORS IN 1991 AND AFTER IT WAS KNOWN THAT FIRST AMERICAN CORP THE WASHINGTON DC BANK SUPPOSEDLY RUN BY POLITICAL EMINENCES CLARK CLIFFORD AND ROBERT ALTMAN WAS IN FACT SECRETLY OWNED BY BCCI THE FIRST CANDIDATE AS TRUSTEE FOR THE FIRST AMERICAN HOLDINGS FORMER FDIC HEAD WILLIAM ISAAC WAS BY HIS OWN ACCOUNT TAPPED FOR THE JOB BY THE SHEIK'S REPRESENTATIVES AND FORMER ATTORNEY GENERAL NICHOLAS DEB KATZENBACH WHO TOOK OVER FIRST AMERICAN WHEN THE CLIFFORDALTMAN TEAM WAS REMOVED TRIED TO SALVAGE THE BANK WITH AN INFUSION OF CAPITAL FROM ABU DHABI ACTUALLY INCREASING THE SHEIK'S INTEREST SOME OF US ARGUED FOR A COMPLETE BREAK WITH ABU DHABI WITH THE APPOINTMENT OF A CLEARLY INDEPENDENT TRUSTEE ULTIMATELY THE COURT NAMED HARRY ALBRIGHT A FORMER NEW YORK BANKING SUPERINTENDENT MR ALBRIGHT HAS SALVAGED FIRST AMERICAN WITHOUT ARAB HELP SELLING IT FOR 453 BILLION TO FIRST UNION CORP OF CHARLOTTE NC AND NOW LOW HE'S ALSO SUING ABU DHABI FOR 15 MILLION IN DAMAGES MR ALBRIGHT MUST THINK HE'S ONTO SOMETHING BECAUSE HIS SUIT NAMES THE SHEIK AND HIS FAMILY INCLUDING HIS SON AND DESIGNATED HEIR HIS SUIT ALLEGES THAT SHEIK ZAYED WAS A DOMINANT AND CONTROLLING SHAREHOLDER OF BCCI SINCE 1972 AND THAT HE AND HIS BCCI ALLIES SEVERELY DAMAGED FIRST AMERICAN THIS IS ALL THE MORE STRIKING BECAUSE THE SHEIK'S WASHINGTON LAWYERS HAVE LONG PORTRAYED HIM AS JUST ANOTHER VICTIM OF BCCI LAST WEEK THEY DENIED THE NEW ALBRIGHT ALLEGATIONS POINTING OUT THAT SINCE 1991 THE ABU DHABI INVESTORS HAVE COME UP WITH MORE THAN 120 MILLION TO HELP SAVE FIRST AMERICAN BUT MR ALBRIGHT'S 243PAGE BRIEF RAISES PLENTY OF QUESTIONS ABOUT THE SHEIKASVICTIM STORY IT ALLEGES EXTENSIVE TIES BETWEEN SHEIK ZAYED AND AGHA HASAN ABEDI THE BCCI FOUNDER AND IT CLAIMS FRAUD BY GHANIM FARIS ALMAZRUI AN INVESTMENT ADVISER TO THE SHEIK WHO IN OR ABOUT 1986 BECAME CHAIRMAN OF THE EXECUTIVE COMMITTEE OF BCCI HOLDINGS MOREOVER THE SHEIK RETAINS EVIDENCE IN ABU DHABI THAT COULD EXPLAIN WHAT REALLY HAPPENED WITH BOTH BCCI AND FIRST AMERICAN SWALEH NAQVI THE FORMER BCCI PRESIDENT IS SUPPOSEDLY UNDER HOUSE ARREST THE SHEIK REFUSES TO LET HIM TESTIFY IN US COURTS HE'S ALSO DETAINED FORMER DIRECTORS OF BCCI AND TENS OF THOUSANDS OF DOCUMENTS THAT WERE TAKEN TO ABU DHABI FROM LONDON AS THE BCCI SCANDAL BUILT IN 1991 THE SHEIK'S PROTESTS OF VICTIMHOOD WOULD BE MORE CREDIBLE IF HE TOOK HIS HOLD OFF THIS EVIDENCE PERHAPS THE ALBRIGHT SUIT WILL CONCENTRATE HIS MIND IF THE SHEIK DOESN'T COOPERATE HE WOULD PRESUMABLY FORFEIT ANY CLAIM TO HIS PORTION OF THE 453 MILLION SALE OF FIRST AMERICAN HIS OTHER US ASSETS SOME OF WHICH ARE MANAGED BY BELTWAY POWER BROKERS AT PATTON BOGGS & BLOW COULD ALSO BE AT RISK THE NEW ALLEGATIONS MAY ALSO BLOW UP A DEAL BETWEEN THE SHEIK AND LIQUIDATORS FOR BCCI HOLDINGS IN LUXEMBOURG THE SHEIK HAS BEEN OFFERING A SUM TO HAPLESS BCCI DEPOSITORSIN RETURN OF COURSE FOR IMMUNITY FROM ANY CLAIMS AGAINST HIM MAYBE THE ALBRIGHT SUIT WILL ALSO LIGHT A FIRE UNDER OTHER AMERICANS TO DO MORE TO PERSUADE THE SHEIK THE JUSTICE DEPARTMENT HAS BEEN MISSING IN ACTION WHILE THE FED DIDN'T EVEN SHOW UP RECENTLY WHEN MR ALBRIGHT PRESENTED HIS PLAN FOR SELLING FIRST AMERICAN IN COURT WE'D HAVE THOUGHT THE BIGGEST BANK FAILURE IN HISTORY AS WELL AS SECRET PENETRATION BY FOREIGNERS OF THE US BANKING SYSTEM WOULD WARRANT MORE DIGGINGIF ONLY TO REASSURE AMERICANS ABOUT THE INTEGRITY OF THEIR FINANCIAL SYSTEM AND MAYBE THE INTEGRITY OF THEIR OWN GOVERNMENT WE ALREADY KNOW THAT BCCI'S MODUS VIVENDI IN OTHER COUNTRIES WAS TO BUY POLITICAL INFLUENCE FROM POWERFUL PEOPLE IT'S HARD TO BELIEVE IT DIDN'T TRY THE SAME THING IN THE US A QUESTION THAT DESERVES TO BE FULLY INVESTIGATED NO DOUBT THIS IS WHAT MR ALBRIGHT MEANT WHEN HE SAID LAST WEEK THAT HIS SUIT PROVIDES THE BEST CHANCE THAT THE TRUE FACTS OF THE COMPLEX AND MYSTERIOUS TAKEOVER AND CONTROL OF FIRST AMERICAN WILL COME TO LIGHT IN THE AMERICAN TRADITION BEFORE AN AMERICAN COURT OTHERWISE HE ADDED THIS MATTER COULD CONCEIVABLY BE CLOSED WITHOUT ANYONE EVER KNOWING THE FULL EXTENT OF THE CONSPIRATORIAL ACTIONS IN THE UNITED STATES WELL SAID SEE RELATED LETTER LETTERS TO THE EDITOR WHY WOULD HE STEAL FROM HIMSELF WSJ AUG 4 1993 9306280002 YY93 MM08 9308030023 930629 THE WRONG RESPONSE TO RAPE BY NEIL GILBERT THE SENATE JUDICIARY COMMITTEE HAS ANSWERED THE DREAMS OF RADICAL FEMINIST LAWYERS WITH ITS PROPOSED VIOLENCE AGAINST WOMEN ACT OF 1993 WHICH WOULD CLASSIFY RAPE MOTIVATED BY GENDER BIAS AS A CIVIL RIGHTS OFFENSE UNDER WHICH VICTIMS COULD SUE FOR COMPENSATORY AND PUNITIVE DAMAGES THE ACT ALSO EARMARKS 85 MILLION TO RAPE CRISIS CENTERS FOR EDUCATION AND PREVENTION SERVICES TO DEAL WITH AN EPIDEMIC OF DATE RAPE THAT DOES NOT REALLY EXIST BUT IS LIKELY TO BE SPAWNED BY LINKING RAPE TO CIVIL RIGHTS AND PUNITIVE DAMAGES THE ARGUMENT FOR MAKING RAPE A CIVIL RIGHTS OFFENSE AND GRANTING MILLIONS TO RAPE CRISIS CENTERS IS DETAILED IN THE JUDICIARY COMMITTEE'S MAJORITY STAFF REPORT THE RESPONSE TO RAPE DETOURS ON THE ROAD TO EQUAL JUSTICE AS THE TITLE SUGGESTS THE STAFF'S ANALYSIS CHARGES THAT RAPE VICTIMS DO NOT RECEIVE EQUAL JUSTICE UNDER THE CURRENT LAW THEIR CASE RESTS ON FINDINGS OF INEQUALITY BETWEEN RAPE AND OTHER VIOLENT CRIMES RELATED TO RATES OF CONVICTIONS DISMISSALS AND REPORTING FOLLOWING THE TENDENCY OF MOST DOCUMENTS THAT ADVOCATE FOR A CAUSE THIS REPORT FURNISHES A HIGHLY ONESIDED READING OF THE EVIDENCE RELYING ON VIVID ANECDOTES TO SUPPORT FRAGILE NUMBERS TWO OF THE PRINCIPAL CLAIMS REPEATED SEVERAL TIMES THROUGHOUT THE REPORT ARE THAT 84 OF REPORTED RAPES NEVER RESULT IN A CONVICTION AND THAT IN 88 OF REPORTED RAPES THE ASSAILANT IS NOT INCARCERATED WE ARE ALSO INFORMED THAT WHILE LESS THAN HALF OF ALL INDIVIDUALS ARRESTED FOR RAPE ARE CONVICTED MORE THAN 60 OF THOSE ARRESTED FOR ROBBERY ARE CONVICTED ALL THIS IS TRUE WHETHER IT REFLECTS UNEQUAL JUSTICE IS ANOTHER MATTER WHAT THE REPORT DOES NOT TELL US IS THAT USING EXACTLY THE SAME COMPUTATIONS ON THE DATA FROM THE SAME SOURCES 87 OF REPORTED ROBBERIES NEVER RESULT IN A CONVICTION AND IN 89 OF REPORTED ROBBERIES THE ASSAILANT IS NOT INCARCERATED THE OVERALL CONVICTION RATES ARE ROUGHLY THE SAME FOR AGGRAVATED ASSAULT AND SOMEWHAT LOWER FOR THE NONVIOLENT CRIME OF BURGLARY ALTHOUGH THE REPORT PROVIDES ONLY THE NUMBERS THAT INTIMATE AN ALARMING INEQUALITY OF JUSTICE THE FACT IS THAT AMONG THE VIOLENT CRIMES OF RAPE ROBBERY AND AGGRAVATED ASSAULT THE RELATION BETWEEN REPORTED CRIMES AND CONVICTIONS IS EQUALLY DEPLORABLE COMPARED WITH THE DATA ON REPORTED CASES OF ROBBERY THE DATA ON REPORTED RAPES REVEAL BOTH A HIGHER PERCENTAGE OF ARRESTS AND A HIGHER PERCENTAGE OF DISMISSALS BEFORE COMING TO TRIAL DISMISSALS BEFORE TRIAL ARE COMMONLY THE RESULT OF WEAK EVIDENCE OR THE VICTIM'S REFUSAL TO TESTIFY ACCORDING TO THE STAFF'S ANALYSIS HOWEVER IN RAPE CASES THERE IS ANOTHER FACTOR AT WORK THAT IS THE VICTIMS ARE OFTEN ACQUAINTED WITH THEIR MOLESTERS THE REPORT CITES EVIDENCE THAT PROSECUTORS HESITATE TO BRING ANY CASE TO TRIAL WHETHER IT BE A ROBBERY CASE AN ASSAULT CASE OR A KIDNAPPING CASE IN WHICH THE OFFENDER KNEW THE VICTIM IN LIGHT OF THIS TENDENCY THE REPORT SPECULATES THAT PROPORTIONATELY MORE RAPES 48 THAN ROBBERIES 37 ARE DISMISSED NOT BECAUSE THE EVIDENCE MIGHT HAVE BEEN WEAK OR BECAUSE THE VICTIMS DECIDED NOT TO TESTIFY BUT BECAUSE IN A VERY HIGH PROPORTION OF REPORTED CASES THE OFFENDER WAS NOT A STRANGER IT IS TRUE THAT MANY VICTIMS OF RAPE KNOW THEIR ASSAILANTS BUT SO DO THE VICTIMS OF OTHER VIOLENT CRIMES A POINT THE REPORTS FAILS TO CONVEY INDEED ACCORDING TO THE BUREAU OF JUSTICE STATISTICS' FIGURES FOR 1989 AND 1990 THE PROPORTION OF VICTIMS REPORTING ROBBERIES AND AGGRAVATED ASSAULTS WHO WERE ACQUAINTED WITH THEIR OFFENDERS WAS AS HIGH AS IF NOT HIGHER THAN THOSE FOR REPORTED RAPES ALTHOUGH DISMISSAL RATES VARY ONCE THE CASES MAKE IT TO THE COURTROOM THE CONVICTION RATES FOR RAPE AND ROBBERY ARE ALMOST EQUAL FINALLY CLAIMS ABOUT UNEQUAL RATES OF ARREST AND CONVICTIONS FOR RAPISTS ARE MAGNIFIED BY THE ISSUE OF UNREPORTED CASES ANOTHER REFLECTION OF WHAT IS SAID TO BE THE UNEQUAL JUSTICE AFFORDED WOMEN IS THE FACT THAT MANY IF NOT MOST RAPES GO UNREPORTED NO ONE REALLY KNOWS THE NUMBER OF THESE UNREPORTED CASES BUT WE ARE INFORMED BY THE JUDICIARY COMMITTEE STAFF THAT ACCORDING TO CONSERVATIVE ESTIMATES AS MANY AS 84 OF RAPES EACH YEAR ARE NEVER REPORTED THEY EXPLAIN IN A FOOTNOTE THAT THIS ESTIMATE IS CONSERVATIVE WHEN COMPARED WITH FIGURES PRESENTED BY UNIVERSITY OF ARIZONA PROF MARY KOSS WHO DIRECTED THE MS MAGAZINE CAMPUS PROJECT ON SEXUAL ASSAULT PROF KOSS'S WIDELY PUBLICIZED FIGURES SHOWED THAT 27 OF COLLEGE WOMEN WERE VICTIMS OF RAPE OR ATTEMPTED RAPE AN AVERAGE OF TWO TIMES BETWEEN THE AGES OF 14 AND 21 THE PROBLEM WITH THIS STUDY IS THAT 73 OF THE COLLEGE WOMEN WHOM PROF KOSS CLASSIFIED AS VICTIMS DID NOT THINK THEY HAD BEEN RAPED MORE THAN 40 WENT BACK AND HAD SEX AGAIN WITH THE MAN WHO PROF KOSS BELIEVED RAPED THEM MOST OF THE COLLEGE WOMEN IN PROF KOSS'S STUDY PROBABLY COUNTED THEMSELVES AS FEMINISTS BUT TO THE RADICAL FRINGE THEY ARE RAPE VICTIMS WHO LIKE THE MALE TARGETS OF FRINGE CRITICISM JUST DON'T GET IT NEXT TO THIS STUDY ALMOST ANY RESEARCH ON RAPE LOOKS CONSERVATIVE THERE ARE SEVERAL PROBLEMS WITH THE SOCALLED CONSERVATIVE ESTIMATE OF UNREPORTED RAPES DRAWN BY THE JUDICIARY COMMITTEE STAFF FROM A STUDY ENTITLED RAPE IN AMERICA CONDUCTED BY THE NATIONAL VICTIM CENTER AND THE CRIME VICTIMS RESEARCH AND TREATMENT CENTER BASED ON THE RESULTS OF A NATIONAL SURVEY THE STUDY ESTIMATES THAT 683000 WOMEN ARE VICTIMS OF RAPE EACH YEAR THE SURVEY SAMPLE WAS SCIENTIFICALLY DESIGNED TO ALLOW FOR VALID GENERALIZATIONS TO THE BROADER POPULATION BUT THE ACCURACY OF THESE GENERALIZATIONS IS SERIOUSLY UNDERMINED BY THE FACT THAT ALMOST ONETHIRD OF THE SCIENTIFICALLY DESIGNED SAMPLE DID NOT PARTICIPATE IN THE SECOND WAVE OF INTERVIEWS FROM WHICH THE ANNUAL INCIDENCE RATE OF RAPE WAS CALCULATED THE 3220 STUDY PARTICIPANTS INTERVIEWED DURING THE SECOND WAVE AMOUNTED TO ONLY 68 OF THE ORIGINAL SAMPLE WITH A SAMPLE THIS SIZE THE NATIONWIDE ESTIMATE OF 683000 RAPES WAS BASED ON 23 CASES OF RAPE UNCOVERED IN THE INTERVIEWS FOR A TRULY CONSERVATIVE ESTIMATE OF UNREPORTED RAPE CASES THE JUDICIARY COMMITTEE STAFF COULD HAVE TURNED TO THE FINDINGS OF THE BUREAU OF JUSTICE STATISTICS SURVEYS ACTUALLY CONDUCTED BY THE CENSUS BUREAU WHICH INVOLVE A RANDOM SAMPLE OF ABOUT 62000 HOUSEHOLDS INTERVIEWED EVERY SIX MONTHS WITH RESPONSE RATES OF MORE THAN 90 THE BJS FINDINGS REVEAL THAT IN 1989 AND 1990 ALMOST HALF OF THEIR RESPONDENTS WHO WERE VICTIMS OF RAPE DID NOT REPORT THIS CRIME TO THE POLICE ALTHOUGH THIS FIGURE IS LOWER THAN THE 84 OF UNREPORTED CASES CITED IN THE JUDICIARY COMMITTEE'S STAFF REPORT IT IS NO TRIVIAL MATTER ONCE AGAIN HOWEVER ON THIS SCORE RAPE VICTIMS DO NOT DIFFER FROM VICTIMS OF OTHER VIOLENT CRIMES ACCORDING TO THE BJS DATA 49 OF ROBBERY CASES AND 43 OF AGGRAVATED ASSAULT CASES WERE NOT REPORTED TO THE POLICE DURING THIS PERIOD THE BJS STUDIES OF COURSE ARE NOT FREE OF METHODOLOGICAL PROBLEMS THEY HAVE BEEN WIDELY CRITICIZED FOR UNDERESTIMATING THE INCIDENCE OF RAPE BUT AS CHRISTOPHER JENCKS NOTES SINCE THE BJS SURVEYS ARE CONDUCTED ALMOST THE SAME WAY EVERY YEAR THEIR BIASES ARE LIKELY TO BE CONSTANT SO THESE FIGURES PROVIDE A RELIABLE GUIDE TO TRENDS IN VIOLENT CRIME OVER TIME IN THIS REGARD IT IS WORTH NOTING THAT THE BJS DATA SHOW THE RATES OF RAPE DECLINING ABOUT 30 BETWEEN 1980 AND 1990 THE GOOD NEWS IN ALL THESE NUMBERS IS THAT REGARDING RATES OF ARRESTS CONVICTIONS DISMISSALS AND REPORTINGS VICTIMS OF RAPE ARE NOT TREATED ANY LESS EQUALLY THAN OTHER CRIME VICTIMS DESPITE THE CLAIMS IN THE JUDICIARY COMMITTEE'S STAFF REPORT THE EVIDENCE DOES NOT DEMONSTRATE A CONSISTENT PATTERN THAT DIVERGES FROM THE NORM THE UNFORTUNATE NEWS IS THAT JUSTICE IS APPALLINGLY THIN ALL ABOUT FOR ALL VICTIMS THE NORMS ARE INSUFFERABLE BUT THE ANSWER IS NOT TO MAKE RAPE A CIVIL RIGHTS OFFENSE THIS WOULD LOWER THE THRESHOLD OF PROOF IN RAPE CASES INTRODUCE PSYCHOLOGICAL ISSUES OF MOTIVATION AND PROVIDE A HUGE FINANCIAL INCENTIVE FOR EXPANDING THE DEFINITION OF RAPE IN LINE WITH THE RADICAL FEMINIST AGENDA TO INCLUDE ALL SORTS OF AMBIGUOUS OR UNPLEASANT SEXUAL EXPERIENCES THE BIG WINNERS IN ALL THIS WOULD OF COURSE BE THE LAWYERS AND THE THERAPISTS NOR IS EQUAL JUSTICE ADVANCED BY GIVING RAPE CRISIS CENTERS 85 MILLION TO COMBAT AN EPIDEMIC THAT DOES NOT EXIST THE ACT IS DESIGNED TO PROMOTE THE CAUSE OF RADICAL FEMINISTS WHOSE EXAGGERATED CLAIMS OF VICTIMIZATION DESERVE THE CRITICAL SCRUTINY THEY ARE JUST BEGINNING TO RECEIVE FROM MODERATE FEMINISTS IF THE JUDICIARY COMMITTEE'S AIM IS TO CHAMPION THE CAUSE OF EQUAL JUSTICE FOR ALL CITIZENS THESE FUNDS CAN BE BETTER SPENT TO IMPROVE OUR COURTS AND TO INCREASE THE NUMBER OF POLICE PROTECTING OUR COMMUNITIES MR GILBERT IS A PROFESSOR OF SOCIAL WELFARE AT THE UNIVERSITY OF CALIFORNIA BERKELEY SEE RELATED LETTER LETTERS TO THE EDITOR THEY KNOW THEY'VE BEEN RAPED WSJ AUG 3 1993 9306290058 YY93 MM08 9308030007 930614 LEISURE & ARTS ARCHITECTURE DESIGN FOR LEARNING BY EVE M KAHN NEW YORK THE NEW YORK SCHOOL CONSTRUCTION AUTHORITY SCA IS NOW SPENDING 43 BILLION TO RIDDLE THE TOWN WITH NEW SCHOOLS PEACHBRICK BOXES WITH CADILLACCALIBER TEAL FINS UP THEIR CORNERS OR YELLOW TRELLISWORK PYRAMIDS BY THEIR ENTRANCES OR TEAL ALPHABETS BOLTED BETWEEN THEIR WINDOWS NOT SINCE THE 1920S AND '30S WHEN NEOGOTHIC AND NEOCLASSICAL HULKS SPREAD ACROSS THE FIVE BOROUGHS HAVE SO MANY PLACES TO LEARN SPRUNG UP AT ONCE AND THIS TIME SCA IS STRAINING HARD TO AVOID ITS PREDECESSORS' MISTAKES FOUR DOZEN SCHOOLS ARE PLANNED A DOZEN ARE FINISHED OR NEARLY SO DESIGNS DERIVE MAINLY FROM LATE1980S PROTOTYPES COMMISSIONED BY THE BOARD OF EDUCATION TO CATTLEPROD A COMATOSE CONSTRUCTION PROCESS AT THE TIME FEW NEW CLASSROOMS HAD BEEN ADDED IN MORE THAN A DECADE DESPITE WALLBULGING WAVES OF IMMIGRANTS AND THE STATE HAD JUST STARTED LAYING PAPERWORK FOR THE SCHOOL CONSTRUCTION AUTHORITY A SEMIPRIVATE AND THUS HOPEFULLY FLEETFOOTED BUILDER THE BOARD PROVIDED DESIGNS TO SCA FROM FOUR CIVICWORKHORSE FIRMS EHRENKRANTZ & ECKSTUT WHO WORKED ON BATTERY PARK CITY RICHARD DATTNER & ASSOCIATES KNOWN FOR BLEAK HOUSING PROJECTS AS WELL AS INOFFENSIVE LIBRARIES PERKINS & WILL LAST CONSIDERED HOT IN THE '40S WHILE PIONEERING LOWSLUNG BIGWINDOWED SCHOOLS AND GRUZEN SAMTON STEINGLASS DESIGNERS OF NUMEROUS UPPER EAST SIDE SLIVER TOWERS PLANS FOR THE NEXT SCHOOL BATCH ARE NOT YET FINAL NO ONE EVEN SEEMS TO KNOW WHO WILL DESIGN THEM AN OMINOUS SIGN OF IMPENDING BUREAUCRATIC SLUGGISHNESS NOW LET US STEP BACK INTO THE DEEP PAST FOR A MOMENT TO GAIN SOME PERSPECTIVE ON THIS BURST OF CONSTRUCTION ENERGY THE PROTOTYPES OF THE '20S AND '30S WERE RICH AND LIVELY BUT DIGNIFIED WITH FACADES SPORTING GARLANDS PLASTERS DORMERS CULMINATING IN FINIALS POLITICALLY INCORRECT BAS RELIEFS DEPICTING INDIANS GRATEFULLY SHAKING COLONISTS' HANDS SIDE WINGS THAT LOOMED IMPOSINGLY BESIDE SETBACK ENTRANCES INDOORS ENORMOUS WINDOWS WOULD OPEN BROADLY TO LET IN FRESH AIR AND HIGHCEILING HALLS CAME WITH MARBLE FLOORS AND SWATHS OF CARVED WOODWORK AND STAINED GLASS IN THE NEW BUILDINGS GABLE OR ARCHED DORMERS PYRAMIDAL TOWERS AND FLATTOPPED CLOCK TOWERS MARCH ACROSS ROOF LINES BAYS SLICE FACADES INTO DIGESTIBLE BITS STILL LEAVING PLENTY OF ROOM FOR THE TEAL FINS YELLOW PYRAMIDS AND TEAL ABCS INSIDE PASTELCOLORED TILES SLATHER HALLS WITH CONTRASTINGCOLOR BANDS AT FRIEZE AND WAINSCOT HEIGHT AND WOODEN DOORS COVER INCLASSROOM CLOSETS EFFORTS TO FEIGN DOMESTICITY AND CHILDHEIGHT LITTLE EYEHOLES INTERRUPT SHEETMETAL RAILINGS IN CONCRETE STAIRWELLS HIDDEN AMID THE CUTENESS IS SOME STATEOFTHEART EDUCATIONALDESIGN THEORY AS WELL AS CURES FOR MOST OF THE OLD SCHOOLS' SECURITY AND MAINTENANCE PLAGUES IN PLACE OF THE OLDSTYLE DEEP ENTRANCE WHICH OFTEN ENDED UP ENTOMBED IN RAZOR WIRE FACADES NOW REACH THE STREET OR STAND A FEW FEET BEHIND CUSTOM STEEL PICKETS THAT EVEN UNDULATE TO IMITATE WAVES AT WATERFRONT SCHOOLS IN PLACE OF OPERABLE WINDOWS WHICH OFTEN ACQUIRED SAFETY SCRIMS THAT RESEMBLE CATARACTS TWOFOOTSQUARE UNITS CAN BE RAISED A MERE FEW INCHES IN PLACE OF HEATCONSUMING HIGH CEILINGS THERE'S COZINESS IN PLACE OF EASYTOGOUGE AND HARDTOCLEAN WOODWORK THERE ARE TILES ONLY THE SELFCONTAINED CLASSROOM PAYS ANY TRIBUTE TO THE PAST '70S OPEN CLASSROOMS HAVE EXITED FASHION SINCE SO MANY WOUND UP MERELY DIVIDED BY PARTITIONS SOON AFTER CONSTRUCTION IN EACH ROOM BRUSHEDALUMINUM BATHROOM FIXTURES AND COMPUTER HOOKUPS LIE IN WAIT IN THE HALLS HANDICAPPED RAMPS ZIGZAG INTO MICROWAVEEQUIPPED CAFETERIAS AND ACOUSTICALLY REFINED AUDITORIUMS THERE'S EVEN ADEQUATE SPACE FOR ALL THE INSCHOOL SERVICES LIKE DENTAL CLINICS AND FAMILYCOUNSELING ROOMS THAT WE HAVE COME TO BELIEVE CAN HELP BATTLE POVERTY'S SIDE EFFECTS SO WHAT COULD I POSSIBLY GET CRANKY ABOUT WELL I WANT TO KNOW WHERE THE GRANDEUR WENT I MISS LOBBIES THAT AFFORD A SENSE OF ARRIVAL EXTERIORS THAT INSPIRE AWE I ALSO FEEL FOR TEACHERS AND PRINCIPALS WHO ENDED UP DISCONNECTED FROM THE DESIGN PROCESS WHO COMPLAINED TO ME ABOUT NARROW FOYERS THAT CAUSE BOTTLENECKS AT DISMISSAL TIME AND ABOUT READING NOOKS THAT IN OVERCROWDED REALITIES END UP WASTING DESK SPACE I ESPECIALLY SYMPATHIZED WITH THE STAFF OF PS/IS 217 A GIMMICKY SERIES OF COLORED BOXES BY MICHAEL FIELDMAN & PARTNERS ONE OF THE FEW NONPROTOTYPE SCHOOLS YET BUILT OMINOUSLY ENOUGH IT BEARS GRID WORK A LA RICHARD MEIER RAW CONCRETE A LA LOUIS KAHN AND COLORED EXPOSED DUCTWORK A LA RICHARD ROGERS ITS TERRACES ARE JUST INACCESSIBLE ARCHITECTURAL TEASES AND ITS CLASSROOM SHAPES ARE SO AWKWARDLY LAID OUT AS TO MAKE HALF THE SPACE UNUSABLE THE DESIGN ACCORDING TO FIELDMAN'S NERVY PRESS RELEASES THUS REINFORCES THE MULTIFACETED NATURE OF THE LEARNING PROCESS ITSELF BUT FAR MORE DANGEROUS TO THE NEW SCHOOLS THAN ANY FLIMSY AESTHETIC IS AN ALREADY APPALLING LACK OF MAINTENANCE THE HALLS AND CAFETERIA AND STAIRWELLS REEK OF STALE GARBAGE AT IS 218 IN WASHINGTON HEIGHTS AND AT EVERY SCHOOL I VISITED OPENWORK PYRAMIDS WERE STARTING TO RUST MYSTERIOUS WHITE STAINS WERE SPREADING ACROSS BRICKS AND ENAMELCOATED ALUMINUM WINDOW FRAMES WERE CHIPPING MEANWHILE DOWN THE BLOCKS THE 1920S AND '30S ANCESTORS AWAIT DEMOLITION DECAYED BEYOND REPAIR NOT EVEN WORTH A THOUGHT OF ADAPTING TO MODERN DEMANDS THEY MAKE YOU WONDER IF THERE'S ANY HOPE AT ALL THAT WE WON'T HAVE TO JUST CLEAN THE WRETCHED SLATE AND START AFRESH AGAIN IN ANOTHER 60 YEARS SEE RELATED LETTER LETTERS TO THE EDITOR MEANSPIRITED REVIEW OF NEW SCHOOLS PROJECT WSJ AUG 3 1993 9306140035 YY93 MM08 9308030005 930624 SIERRA CLUB TAKES AN EDIFYING TOUR OF BLACK AMERICA ITS HIRED GUIDE JOHN MCCOWN SHOWS ENVIRONMENTALISTS A POLLUTED RURAL LANDFILL BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL COLUMBIA MISS AS A BLACK CHILD GROWING UP IN THE CIVILRIGHTS MOVEMENT JOHN MCCOWN DODGED THE BULLETS OF WHITE RACISTS WHO ONCE FIRED ON HIS FAMILY'S HOUSE IN SPARTA GA NOW HE IS CRINGING AT THE FOLLIES OF WHITE ENVIRONMENTALISTS DON'T BE ROLLING THOSE OVER HE SHOUTS TO BOB HASTINGS A SKINNY BEARDED FELLOW CLAD IN A TSHIRT DECORATED WITH LINE DRAWINGS OF SEA TURTLES BUT MR HASTINGS IGNORES THE ORDER RUNS INTO A GRASSY FIELD AND GAMELY PUSHES THE SOLE OF HIS SNEAKER AGAINST A SINISTERLOOKING RUSTY DRUM THEY'RE FULL HE REPORTS AS HE REJOINS HIS FELLOW SIERRA CLUB MEMBERS I CAN'T BELIEVE THEY'RE JUST LYING OUT THERE THE SIERRA CLUB IS TOURING THIS DIRTPOOR RURAL BLACK NEIGHBORHOOD ABUTTING A FEDERALLY DESIGNATED SUPERFUND HAZARDOUSWASTE SITE TO SHOW SOLIDARITY WITH THE ENVIRONMENTALJUSTICE MOVEMENT IN OPPOSING THE DEGRADATION OF LAND WATER AND AIR IN MINORITY NEIGHBORHOODS BUT FOR THE ALLWHITE DELEGATION FROM THE SIERRA CLUB IT IS A JOURNEY THROUGH TERRA INCOGNITA THEY ARE BETTER ACQUAINTED WITH THE BRAZILIAN RAIN FOREST MR MCCOWN IS THEIR TOUR GUIDE NEWLY HIRED BY THE SIERRA CLUB TO ESTABLISH LINKS WITH RURAL MINORITY COMMUNITIES IN THE SOUTHEAST HIS MISSION MR MCCOWN SAYS IS TO CHALLENGE THE SHELTERED LIVES OF MIDDLECLASS EDUCATED EUROPEANAMERICANS WHO AVOID AFRICANAMERICANS LIKE THE PLAGUE AFTER HE AND THE SIERRANS TOUR THE SITE HE TURNS TO HIS CHARGES THE CLOSEST THING THAT MANY OF MY WHITE BROTHERS AND SISTERS HAVE COME TO THE DESPAIR OF RURAL POVERTY HE TELLS THEM IS TO LOSE YOUR WALLET WITH ALL YOUR CREDIT CARDS ARE GREENS LILYWHITE READS A HEADLINE IN THE MAY/JUNE ISSUE OF SIERRA THE CLUB'S BIMONTHLY PUBLICATION REFERRING TO MEMBERS OF TRADITIONAL MAINSTREAM ENVIRONMENTAL GROUPS FOR THESE ORGANIZATIONS OF WHICH THE SIERRA CLUB IS THE OLDEST IN THE US THE ANSWER OFTEN IS YES ACCORDING TO A RECENT SURVEY BY THE NONPROFIT ENVIRONMENTAL CAREERS ASSOCIATION 10 OF 61 LEADING ENVIRONMENTAL GROUPS ADMIT THEY HAVE NO MINORITY MEMBERS THE PALE COMPLEXION OF THE ENVIRONMENTAL MOVEMENT IS A PARTICULAR EMBARRASSMENT IN VIEW OF MOUNTING EVIDENCE THAT US POLLUTION DISPROPORTIONATELY HARMS MINORITIES A 1987 STUDY CONDUCTED BY THE UNITED CHURCH OF CHRIST FOUND THAT THREE OUT OF THE FIVE LARGEST COMMERCIAL HAZARDOUSWASTE LANDFILLS NATIONWIDE WHICH ACCOUNT FOR 40 OF THE TOTAL ESTIMATED US COMMERCIAL LANDFILL CAPACITY WERE LOCATED IN PREDOMINANTLY BLACK OR HISPANIC COMMUNITIES THE STUDY IS FREQUENTLY CITED BY THE ENVIRONMENTAL PROTECTION AGENCY AND IS SAID TO BE THE MOST COMPLETE TO DATE A 1983 STUDY OF LANDFILLS IN THE SOUTHEAST BY THE GENERAL ACCOUNTING OFFICE REACHED SIMILAR CONCLUSIONS THE SIERRA CLUB IS AWARE OF ITS PIGMENT PROBLEM BUT KEEPS NO DATA ON THE RACE OF ITS MEMBERS IN A SPEECH LAST YEAR COMMEMORATING THE CLUB'S 100TH ANNIVERSARY DEPARTING SIERRA CLUB EXECUTIVE DIRECTOR MICHAEL FISCHER WARNED THAT IF IT REMAINED A MIDDLECLASS GROUP OF BACKPACKERS OVERWHELMINGLY WHITE IN MEMBERSHIP PROGRAM AND AGENDA THE CLUB WOULD CONDEMN ITSELF TO LOSING INFLUENCE IN AN INCREASINGLY MULTICULTURAL COUNTRY BUT THE CULTURE GULF COULDN'T BE WIDER BETWEEN THE SIERRANS WHO THIS MONTH JOURNEYED IN THEIR HONDAS AND BMWS TO THIS TOWN TO MEET THEIR COUNTERPARTS IN A LOCAL ENVIRONMENTALJUSTICE GROUP CALLED JESUS PEOPLE AGAINST POLLUTION THE DAY BEFORE THE SIERRANS ARRIVED CHARLIE FAIRLEY VICE PRESIDENT OF JPAP PRONOUNCED JAYPAP SAT SWELTERING IN THE GROUP'S SHABBY CINDERBLOCK HEADQUARTERS AND SCOFFED AT THE SIERRA CLUB'S ACTIVISM ON BEHALF OF SPOTTED OWLS AND WHALES ANIMALS DON'T HAVE SOULS SAID MR FAIRLEY BUT HUMANS DO THAT EVENING THE JESUS PEOPLE ASSEMBLED IN COLUMBIA'S DUCKWORTH COMMUNITY CENTER HARD BY THE SUPERFUND SITE FOR A LITTLE GUERRILLA THEATER THE PROGRAM BEGAN WITH A PRAYER AND ENDED WITH A ROUSING CHORUS OF WE SHALL OVERCOME IN BETWEEN WAS A SUCCESSION OF SKITS PERFORMED BY LOCAL CHILDREN BURLESQUING WHAT JPAP SEES AS A CALLOUS ATTITUDE OF DOCTORS AND LAWYERS WHO DENY ANY CONNECTION BETWEEN LOCAL HEALTH PROBLEMS AND THE WASTE SITE HONEY I'M AFRAID YOU'RE GONNA HAVE TO LEAVE THAT PORK CHOP ALONE SAID ONE GIRL IN A HOSPITAL GOWN THE SCENE IS STARKLY DIFFERENT THE NEXT MORNING WHEN THE SIERRANS CARRYING BRIEFCASES AND LAPTOP COMPUTERS ARRIVE AT THE COMMUNITY CENTER FOR A BUSINESS MEETING AND LUNCH LATER THE SIERRANS HEAR TESTIMONY FROM LOCAL CITIZENS ABOUT HEALTH PROBLEMS THEN MR MCCOWN LEADS A TOUR THROUGH HOUSES AND APARTMENTS SOME JUST A FEW FEET FROM THE FENCEDIN SUPERFUND SITE ROBERT COX A SIERRA BOARD MEMBER FROM CHAPEL HILL NC IS OVERCOME WITH EMOTION HE NOTES THAT THIS DAY IS THE 30TH ANNIVERSARY OF THE ASSASSINATION OF CIVILRIGHTS LEADER MEDGAR EVERS AS SURELY AS MEDGAR EVERS WAS SHOT PEOPLE IN THIS COMMUNITY ARE BEING POISONED HE SAYS BUT OTHERS TOURING THE AREA QUIETLY WONDER WHETHER THEY ARE WITNESSING THE TOXIC EFFECTS OF CHEMICALS SUCH AS PENTACHLOROPHENOL THE WOOD PRESERVATIVE THAT IS THE MAIN CONTAMINANT HERE OR MERELY THE RESULTS OF EXTREME POVERTY INADVERTENTLY MIMICKING THE DOCTORS PARODIED BY JPAP THE DAY BEFORE MICHELE KLAES A PARALEGAL RESEARCHING THE ISSUE FOR MISSISSIPPI SIERRA CHAPTER CHAIRMAN BILL KULICK SAYS A HIGHFAT DIET CAN DO IT TOO SHE THEN ADDS NERVOUSLY I'M JUST PLAYING DEVIL'S ADVOCATE IT IS THE EPA'S POSITION THAT THE SITE OWNED BY REICCHOLD CHEMICALS INC A UNIT OF THE JAPANESE COMPANY DAI NIPPON INK AND CHEMICALS PRESENTS NO HEALTH HAZARD IT WAS DESIGNATED A SUPERFUND SITE BECAUSE OF CONCERN ABOUT BARRELS OF UNKNOWN CONTENTS AND BECAUSE THE LANDFILL IS CLOSE TO THE LOCAL WATER SUPPLY ALTHOUGH A CHEMICAL EXPLOSION OCCURRED ON THE SITE IN 1977 THE EPA SAYS IT HASN'T FOUND DANGEROUS LEVELS OF CONTAMINANTS IN THE COURSE OF A CLEANUP UNDERTAKEN AND PAID FOR BY REICCHOLD THAT IS TO BE COMPLETED BY FALL ACCORDING TO REICCHOLD THE MYSTERIOUS BARRELS FOUND BY MR HASTINGS DON'T BELONG TO THE COMPANY AND AREN'T ON ITS LAND THE JESUS PEOPLE HOWEVER INSIST THERE IS A LINK BETWEEN THE SUPERFUND SITE AND POOR HEALTH IN THE COMMUNITY CITING AMONG OTHER THINGS THE PREVALENCE OF A PECULIAR WHITISH SKIN RASH THE JESUS PEOPLE SAY THEY WANT MONEY TO CONDUCT MEDICAL TESTS AND TO RELOCATE FAMILIES LIVING NEAR THE SITE EARLY IN THE EVENING THE SIERRANS GATHER AROUND A TABLE WITH THE JESUS PEOPLE TO DISCUSS WHAT THE SIERRA CLUB MIGHT PROVIDE IN THE WAY OF MONEY HOW MUCH YOU TALKING ABOUT ASKS NICK AUMEN OF SIERRA'S GULF COAST REGIONAL CONSERVATION COMMITTEE LET'S START WITH A ZILLION DOLLARS SHOOTS BACK DEEOHN FERRIS AN ATTORNEY WITH THE LAWYERS COMMITTEE FOR CIVIL RIGHTS UNDER LAW FLOWN DOWN BY THE SIERRA CLUB TO ASSIST THE JESUS PEOPLE THE SIERRA CLUB TOUR GROUP ANSWERS THAT WHILE THE CLUB COULD HELP JPAP APPLY FOR MONEY FROM FOUNDATIONS OR HIT UP THE MISSISSIPPI CONGRESSIONAL DELEGATION FOR FUNDS TO RELOCATE FAMILIES IT CAN PROVIDE LITTLE IN TERMS OF FINANCIAL ASSISTANCE WE'RE NOT A GOLDEN COW READY TO THROW MONEY ON THE TABLE SAYS MR KULICK OF THE MISSISSIPPI CHAPTER WE UNDERSTAND YOU DON'T HAVE A GOLDEN CALF ANSWERS JPAP PRESIDENT CHARLOTTE KEYS CORRECTING MR KULICK'S BIBLICAL REFERENCE SEE RELATED LETTER LETTERS TO THE EDITOR ENVIRONMENTALISTS NEED WEEDS IN THEIR GARDEN WSJ JULY 22 1993 SEE RELATED LETTER LETTERS TO THE EDITOR BLACKS AND WHITES JOIN TO AID THE ENVIRONMENT WSJ AUG 3 1993 9306240051 9307220103 YY93 MM07 YY93 MM08 9307300124 930630 HOW WE BOMBED ON NUKES IN UKRAINE BY ANNE APPLEBAUM KIEV UKRAINE EARLIER THIS MONTH THE UKRAINIAN PRIME MINISTER LEONID KUCHMA CALLED ON THE UKRAINIAN PARLIAMENT TO POSTPONE UKRAINE'S ACCESSION TO THE NUCLEAR NONPROLIFERATION TREATY ALTHOUGH HE URGED THE DEPUTIES TO SIGN THE START I TREATY DISMANTLING 130 OF THE 176 ICBM MISSILES ON UKRAINIAN TERRITORY HE SAID UKRAINE SHOULD BECOME A NUCLEAR POWER KEEPING ITS REMAINING ICBMS AND ITS CRUISE MISSILES AT LEAST TEMPORARILY THE SPEECH SHOCKED MANY IN THE WEST FROM THE STRATEGIC POINT OF VIEW IT MADE NO SENSE UKRAINE DOES NOT IN FACT CONTROL THESE WEAPONS THE RED BUTTONS ARE STILL IN MOSCOW AND DIRECT UKRAINIAN CONTROL MAY BE YEARS AWAY FROM THE DIPLOMATIC POINT OF VIEW KEEPING THE WEAPONS IS ALSO ILLOGICAL BY DOING SO UKRAINE ANNOYS JUST ABOUT ALL OF THE OTHER NUCLEAR POWERS DELAYING START RATIFICATION HAS ALREADY DELAYED THE NEGOTIATION OF OTHER ARMS TREATIES REFUSING TO ACCEDE TO THE NONPROLIFERATION TREATY MAY ENCOURAGE OTHER WAVERERS INDIA SAY OR PAKISTAN TO DROP OUT WHEN THE TREATY COMES UP FOR RENEWAL IN 1995 BUT FROM THE POINT OF VIEW OF UKRAINIAN HISTORY BOTH ANCIENT AND MODERN THE PRIME MINISTER'S SPEECH MADE PERFECT SENSE AFTER CATHERINE THE GREAT CONQUERED THE EASTERN HALF OF WHAT WAS THEN CALLED THE POLISHLITHUANIAN COMMONWEALTH AT THE END OF THE 18TH CENTURY A MEDAL WAS STRUCK IN HER HONOR IT READ I HAVE RECOVERED WHAT WAS TORN AWAY CATHERINE LIKE MOST RULERS OF RUSSIA WHO FOLLOWED HER CLAIMED NOT MERELY TO HAVE OCCUPIED THAT TERRITORY WHICH INCLUDED MOST OF MODERN UKRAINE BUT TO HAVE RECONQUERED A PART OF RUSSIA BECAUSE THE UKRAINIANS WERE SLAVIC BECAUSE THEY WERE ORTHODOX BECAUSE THEY TRACED THEIR LINEAGE TO THE MEDIEVAL EMPIRE OF KIEVAN RUS RUSSIANS HAVE FOR THE PAST 3 1/2 CENTURIES CONVINCED THEMSELVES THAT UKRAINIANS ARE A SUBSPECIES OF THE RUSSIAN NATION THAT SENTIMENT PERSISTS TO THIS DAY DESPITE UKRAINIAN DECLARATIONS OF SOVEREIGNTY AND DESPITE THE UKRAINIAN REFERENDUM OF DECEMBER 1991 WHEN 90 OF UKRAINIANS VOTED FOR INDEPENDENCE WITHOUT KIEV A FAMOUS RUSSIAN NATIONALIST WROTE LAST YEAR THERE CAN BE NO RUSSIA IN THE OLD REAL SENSE OF THE WORD AND MOST RUSSIAN POLITICIANS AGREE SINCE 1991 MOSCOW HAS REFUSED TO SIGN ANY TREATIES CONFIRMING UKRAINE'S BORDERS WITH RUSSIA RUSSIAN DIPLOMATS IN WARSAW PRAGUE AND EVEN KIEV HAVE TOLD THEIR WESTERN CENTRAL EUROPEAN COUNTERPARTS NOT TO BOTHER BEFRIENDING UKRAINE AS THE COUNTRY'S INDEPENDENCE WOULD NOT LAST LONG FEAR OF RUSSIA HOWEVER WOULD NOT HAVE BEEN ENOUGH TO PERSUADE THE UKRAINIANS TO KEEP THEIR MISSILES FOR WHEN UKRAINE BECAME INDEPENDENT ITS LEADERS' FIRST INSTINCT WAS TO TURN WEST AND TO AMERICA IN PARTICULAR TO ASSUAGE UKRAINE'S FEELINGS OF INSECURITY AMERICA MEANT FREEDOM AND DEMOCRACY AMERICA SEEMED A LOGICAL ALLY AGAINST RUSSIA BUT PARTLY THANKS TO INEPT UKRAINIAN DIPLOMACY PARTLY THANKS TO AMERICA'S UNWILLINGNESS TO LISTEN UKRAINIAN PLEAS FOR ATTENTION AND RECOGNITION FELL ON DEAF EARS USED TO THEIR WIDE OPEN SPACES AND THE DEEP SEAS THAT LIE BETWEEN THEM AND THEIR ENEMIES AMERICANS FIND BORDER CONFLICTS INCOMPREHENSIBLE ACCUSTOMED TO DEALING ON A GRAND SCALE AMERICANS ARE ANNOYED BY WHAT THEY PERCEIVE TO BE THE MINOR TROUBLES OF PETTY NATIONS AMERICANS WHO WANTED TO GET AHEAD IN THE FOREIGNPOLICY ESTABLISHMENT STUDIED IMPORTANT LANGUAGES LIKE RUSSIAN AND HOPED TO NEGOTIATE ARMSCONTROL TREATIES SHUNNING UNIMPORTANT ISSUES LIKE THOSE OF THE SOVIET MINORITIES FROM THE VERY BEGINNING AMERICAN DIPLOMATS FOUND THE UKRAINIAN INDEPENDENCE MOVEMENT IRRITATING IT INTERFERED WITH AMERICA'S POLICY OF SUPPORTING FIRST GORBACHEV THEN YELTSIN AND WERE PERFECTLY WILLING TO LET THEIR IRRITATION SHOW WHEN GEORGE BUSH WENT TO KIEV IN AUGUST 1991 THREE WEEKS BEFORE THE MOSCOW PUTSCH HE WARNED THE UKRAINIANS AGAINST SUICIDAL NATIONALISM AS IF RUSSIAN NATIONALISM WERE PURE AND HEALTHY EVEN AFTER UKRAINE GAVE AWAY ITS FIRST TRANCHE OF WEAPONS THERE WERE NO TRADE AGREEMENTS NO EMERGENCY ECONOMIC PLANS NO AID FOR A NATION WHOSE INDUSTRIAL POTENTIAL IS ENORMOUS AND NO EFFORTS TO SAVE UKRAINE THAT MATCHED THE EFFORTS TO SAVE RUSSIA THERE WERE NO PROTESTS WHEN THE RUSSIAN PARLIAMENT MADE CLAIMS ON CRIMEA THERE WERE A FEW OUTRIGHT SNUBS JUST AFTER THE AMERICAN ELECTIONS MR CLINTON HELD A LAVISH SUMMIT IN VANCOUVER WITH THE RUSSIAN PRESIDENT BORIS YELTSIN HIS STAFF RUDELY REFUSED WHEN THE UKRAINIAN PRESIDENT REQUESTED A SIMILAR MEETING THAT ACCORDING TO SEVERAL UKRAINIAN POLITICIANS WAS ENOUGH TO PROVOKE PRIME MINISTER KUCHMA'S SPEECH IF AMERICAN POLICY HAD BEEN DIFFERENT SAYS THE UKRAINIAN DEPUTY FOREIGN MINISTER BORIS TARASIUK UKRAINE WOULD HAVE RATIFIED START LONG AGO THANKS TO RUSSIAN AGGRESSION AND AMERICAN INTRANSIGENCE KIEV IS GRIPPED THESE DAYS BY A MOOD REMINISCENT OF THE EARLY COLD WAR WHAT WAS ONCE NATIONALISM IS NOW PARANOIA THE TALK IS OF GOOD AND EVIL FORCES OF LIGHT AND DARKNESS HISTORICAL INEVITABILITY EVERY RUSSIAN ACTION IS INTERPRETED IN THE WORST POSSIBLE LIGHT EVERY RUSSIAN DIPLOMATIC EFFORT SEEMS DESIGNED TO UNDERMINE UKRAINIAN SOVEREIGNTY EVERY AMERICAN ACTION IS ONLY PART OF A GREATER PATTERN OF ANTIUKRAINIAN DEVIANCE WHY ASKS DMYTRO PAVLYCHKO THE CHAIRMAN OF UKRAINE'S PARLIAMENTARY FOREIGN AFFAIRS COMMITTEE DID AMERICA PROTEST AGAINST THE INVASION OF KUWAIT AND NOT AGAINST THE RUSSIAN PARLIAMENT'S CLAIM UPON CRIMEA OTHERS HINT DARKLY AT KGBCIA COLLABORATION AMERICAN POLICY TOWARD UKRAINE HAS WARMED IN RECENT WEEKS BUT IT IS TOO LITTLE TOO LATE ASKED OVER THE TELEPHONE WHETHER AMERICA WOULD BOTHER WITH UKRAINE AT ALL IF UKRAINE HAD NO NUCLEAR MISSILES ONE WASHINGTON OFFICIAL THOUGHT FOR A MINUTE NO SHE SAID SIMPLY NOWADAYS IT IS NO LONGER POSSIBLE TO FIND A UKRAINIAN POLITICIAN OF ANY SIGNIFICANCE WHO HOPES TO SEE THE MISSILES ON UKRAINIAN SOIL DISMANTLED QUICKLY HOWEVER NONSENSICALLY UKRAINIANS BELIEVE THEIR WEAPONS CAN BE BOTH PROTECTION AND A BARGAINING CHIP NO LONGER WILLING TO GIVE THEIR MISSILES AWAY FOR THE SAKE OF INTERNATIONAL NUCLEAR STABILITY UKRAINE IS NOW DEMANDING SECURITY GUARANF THE KIND THAT NATO GIVES AUSTRIA AN UNLIKELY PROSPECT AMERICA'S FAILURE TO PLACATE UKRAINIAN PARANOIA HAS THUS CREATED PRECISELY THE SITUATION THAT AMERICAN DIPLOMATS MOST FEARED UKRAINE WILL PROBABLY KEEP ITS MISSILES AND A WHOLE WEB OF WESTERN SECURITY ARRANGEMENTS WILL UNRAVEL AFTER YUGOSLAVIA THE CONVERSION OF UKRAINE INTO A NUCLEAR POWER WILL BE THE NEXT GREAT FAILURE OF POSTCOLD WAR AMERICAN FOREIGN POLICY CURIOUSLY THE MISSILES HAVE HAD ANOTHER KIND OF IMPACT ON UKRAINE SLOWLY THEY ARE BECOMING A SOURCE OF PRIDE THIS IS AFTER ALL A NATION OF 52 MILLION PEOPLE THAT HAS NEVER IN A THOUSAND YEARS OF HISTORY MANAGED TO RULE ITS OWN STATE THIS IS A NATION THAT POSSESSES VERY LITTLE TANGIBLE EVIDENCE OF ITS OWN NATIONHOOD SO LITTLE ASIDE FROM A FEW CHURCHES A FEW POEMS AND SOME FOLK TRADITIONS HAS SURVIVED RUSSIAN OCCUPATION PERHAPS THAT IS WHY YOUNG MEN SPORT MISSILE BADGES ON KIEV'S MAIN SHOPPING STREET WE MADE THEM HERE WE MADE THEM OURSELVES ONE TOLD ME REFERRING TO THE SS24S THAT WERE ASSEMBLED IN MR KUCHMA'S OLD FACTORY AT DNIEPOPETROVSK HEAVY AND CLUMSY EXPLOSIVE AND DANGEROUS MISSILES DO NOT MAKE PRETTY NATIONAL SYMBOLS THEY DO NEVERTHELESS PROVE THAT UKRAINE IS A SOVEREIGN NATION MS APPLEBAUM IS FOREIGN EDITOR OF THE SPECTATOR IN LONDON SEE RELATED LETTERS LETTERS TO THE EDITOR ADVICE FOR UKRAINE EMPTY YOUR SILOS WSJ JULY 30 1993 9306300035 YY93 MM07 9307300012 930614 WANING SUPPORT A DISGRUNTLED ARMY AND MOUNTING UNREST FACE EGYPTIAN REGIME CRITICS CHARGE THAT MUBARAK HAS SQUANDERED BILLIONS IN US GOVERNMENT AID THE TANK FACTORY DEBACLE BY PETER WALDMAN STAFF REPORTER OF THE WALL STREET JOURNAL CAIRO EGYPT IN THE WEST EGYPTIAN PRESIDENT HOSNI MUBARAK IS VIEWED AS A PRIZED RARITY A MODERATE RELIABLE MIDDLE EASTERN LEADER HERE IN EGYPT HOWEVER MR MUBARAK IS CONSIDERED LESS EXEMPLARY THAN EXASPERATING HE'S LIKE THE OLD DONKEY WHO WON'T GET OUT OF THE WAY SAYS AN EGYPTIAN INVESTMENT BANKER HE NEEDS A GOOD PUSH BEDEVILED BY CHARGES OF CORRUPTION BRUTALITY AND INEPTITUDE THE 12YEAROLD MUBARAK REGIME HAS LOST ITS CREDIBILITY AT HOME DISCONTENT SEETHES FROM THE MUDBRICK VILLAGES OF THE UPPER NILE TO THE PUTRID SLUMS OF CAIRO ALL BREEDING GROUNDS FOR EGYPT'S GROWING ISLAMIC INSURGENCY AS THE MILITANTS' VIOLENCE CONTINUES AND THE REGIME COUNTERATTACKS A MUSLIM EXTREMIST WAS HANGED YESTERDAY IN THE FIRST OF 22 DEATH SENTENCES ORDERED FOR ISLAMIC INSURGENTS IRRITATION WITH THE REGIME IS SPREADING MOST OMINOUSLY IMPATIENCE IS GROWING AMONG THE OFFICERS OF THE EGYPTIAN ARMY WHO HAVE BEEN MUBARAK'S STRONGEST SUPPORTERS THIS COUNTRY IS ON THE EDGE LIKE LEBANON IN 1975 WARNS RETIRED GEN MOURAD DESSOUKI A DECORATED WAR HERO AND HEAD OF MILITARY STUDIES AT THE ALAHRAM FOUNDATION A GOVERNMENT SPONSORED THINK TANK TURMOIL IN EGYPT IMPERILS ONE OF AMERICA'S MOST IMPORTANT STRATEGIC ALLIANCES SINCE ISRAEL AND EGYPT MADE PEACE AT CAMP DAVID IN 1978 THE US HAS POURED 30 BILLION OF AID INTO EGYPT SECOND ONLY TO THE 40 BILLION FOR ISRAEL WASHINGTON'S HOPES FOR REGIONAL STABILITY HAVE BEEN PINNED LARGELY ON THIS PARALLEL SUPPORT THE MONEY EARMARKED FOR EGYPT SPENT MOSTLY ON MODERNIZING THE ARMY HAS BOUGHT CRITICAL SUPPORT AMONG THE OFFICER CORPS FOR THE CAMP DAVID PEACE TREATY IT HAS ALSO EASED THE WAY FOR EGYPTIAN COOPERATION WITH MIDEAST PEACE EFFORTS AND WITH US POLICY IN PLACES LIKE SOMALIA IRAQ AND IRAN BUT THE AID HASN'T BOUGHT STABILITY AS LAST WEEK'S BOMBING OF ANOTHER TOURIST BUS ATTESTS AND THE QUESTION IS INCREASINGLY BEING RAISED IN WASHINGTON AND EGYPT AS TO WHETHER THE US HAS HAD ITS PRIORITIES RIGHT FOR THE 21 BILLION A YEAR GIVEN TO EGYPT A WIDE RANGE OF BUSINESSPEOPLE AND INTELLECTUALS HERE WORRY THAT US AID HAS MISSED THE REAL MARK THE POVERTY AND DISAFFECTION THAT FUEL ISLAMIC RADICALISM PROBABLY THE GREATEST EXAMPLE OF THIS TILT TOWARD SATISFYING THE EGYPTIAN MILITARY ESTABLISHMENT AT THE EXPENSE OF SOCIAL AND ECONOMIC DEVELOPMENT IS FACTORY 200 A HIGHSECURITY TANKASSEMBLY PLANT IN THE DESERT NORTH OF CAIRO THAT HAS BECOME A LIGHTNING ROD FOR CRITICISM OF THE MUBARAK REGIME THE LARGEST INDUSTRIAL INSTALLATION IN THE MIDDLE EAST FACTORY 200 IS RECEIVING 25 BILLION OF AMERICAN AID AS WELL AN ESTIMATED 450 MILLION FROM THE EGYPTIAN GOVERNMENT THE PLANT ASSEMBLES M1A1 ABRAMS TANKS AID DOLLARS ARE PAYING FOR VEHICLE COMPONENTS AS WELL AS THE FACTORY ITSELF IN A COPRODUCTION ARRANGEMENT WITH GENERAL DYNAMICS CORP THE EGYPTIANS WERE CONVINCED THAT ONCE THIS PUMP GOT PRIMED THEY'D BECOME THE TANK DEALERS TO THE MIDEAST EXPLAINS ONE US ARMY ENGINEER WHO HELPED PLAN THE PROJECT THE EGYPTIANS MAINTAINED THAT CONVICTION DESPITE WASHINGTON'S LONGSTANDING REFUSAL TO ALLOW EGYPT TO EXPORT THE TANKS US OFFICIALS FREQUENTLY EXPRESSED DOUBTS ABOUT THE ECONOMIC VIABILITY OF THE PROJECT BUT THEY WERE WILLING TO SWALLOW THOSE CONCERNS EGYPTIANS MILITARY SOURCES SAY BECAUSE THE MUBARAK GOVERNMENT AGREED AS A QUID PRO QUO TO TERMINATE ITS PARTICIPATION IN A CONTROVERSIAL MISSILE DEVELOPMENT PROGRAM WITH IRAQ AND ARGENTINA THUS FACTORY 200 WHICH OPENED LAST YEAR HAS PRODUCED 75 OF THE 524 TANKS ORDERED SO FAR FOR THE EGYPTIAN ARMY AND HAS NO CONTRACTS FOR THE 1000 OR SO EXPORT VEHICLES ORIGINALLY ENVISIONED BY THE EGYPTIAN DEFENSE MINISTRY THE TANKS COST ABOUT TWICE AS MUCH AS THE ROUGHLY 2 MILLION AMERICANMADE M1A1 AND SINCE US PRODUCTION OF THE MODEL WAS HALTED PARTS AND ASSEMBLY KIT PRICES ARE RISING FROM DAY ONE EXPLAINS THE ARMY ENGINEER THE EGYPTIANS SORT OF THOUGHT AND SO DID SOME PEOPLE IN THE US THAT BY THE TIME THE NINEYEAR EGYPTIAN ARMY CONTRACT WAS OVER CONGRESS MIGHT LOOK DIFFERENTLY AT EGYPTIAN EXPORTS THAT APPEARS MORE UNLIKELY THAN EVER AS AMERICAN PRODUCERS SCRAMBLE FOR ORDERS AND NOW SAYS ONE EGYPTIAN BANKER WHO WAS HIRED TO FIND A SOLUTION GOVERNMENT OFFICIALS RECOGNIZE IT'S A BIG WHITE ELEPHANT OUTSIDE THE DEFENSE ESTABLISHMENT THE VERDICT IS HARSHER STILL WE NEED BUSES NOT TANKS SNEERS ONE LOCAL FINANCIER LIKE EGYPTIANS AT ALL LEVELS OF SOCIETY THESE BUSINESSMEN INSIST ON ANONYMITY FOR FEAR OF ANGERING THE AUTHORITIES FACTORY 200 IS ONLY ONE EXAMPLE OF MISMANAGEMENT BY THE MUBARAK GOVERNMENT THAT HAS HELPED PUSH EGYPT TO THE BRINK OF CRISIS ACCORDING TO THE INTERNATIONAL INSTITUTE FOR STRATEGIC STUDIES IN LONDON EGYPT SPENDS ABOUT 35 BILLION A YEAR ON DEFENSE OR 11 OF ITS GROSS DOMESTIC PRODUCT WHEN US AID IS FACTORED IN THAT'S A STAGGERING AMOUNT FOR A NATION WITH A PER CAPITA INCOME OF JUST 550 A YEAR AND FOR ONE THAT IS LITTLE THREATENED BY ITS NEIGHBORS BY CONTRAST PAKISTAN A SIMILARLY POOR COUNTRY WITH A REAL MILITARY FOE ON ITS BORDER SPENDS ONLY 7 OF GROSS DOMESTIC PRODUCT ON DEFENSE THE IISS REPORTS EGYPT'S FAILURE TO CONVERT PEACE INTO PROSPERITY IS VISIBLE EVERYWHERE IN CAIRO'S SPRAWLING SLUM OF IMBABA FOR EXAMPLE PUDDLES OF MUD AND RAW SEWAGE DOT ITS UNPAVED ROADS WHICH ARE LINED BY FIVE FOOTHIGH PILES OF GARBAGE UNTIL LAST FALL IMBABA WAS AN ISLAMIC STATE WITHIN A STATE ALL BUT ABANDONED BY POLICE AND OTHER PUBLIC SERVICES MILITANT MUSLIMS CONTROLLED THE STREETS DRIVING AWAY DRUG DEALERS AND PROSTITUTES AND DISTRIBUTING MEAT AND MEDICINE TO THE MOST NEEDY ISLAMIC REVIVAL MEETINGS WERE HELD EVERY TUESDAY AND ON SPECIAL OCCASIONS THEY SHOWED OLD VIDEOTAPES OF THE 1981 MURDER OF PRESIDENT ANWAR SADAT BY ISLAMIC EXTREMISTS THEN ONE OCTOBER NIGHT SOME 40000 PARAMILITARY TROOPS STORMED THE NEIGHBORHOOD AS PART OF THE REGIME'S CAMPAIGN TO CURB THE FUNDAMENTALISTS MORE THAN 1500 PEOPLE WERE ROUNDED UP INCLUDING MANY IMBABA RESIDENTS SAY WHO HAD COMMITTED NO CRIMES THEY WERE DETAINED AS HOSTAGES SO THAT FRIENDS AND FAMILY MEMBERS WOULD TURN IN THOSE WHO WERE WANTED BUT HADN'T BEEN FOUND IN THE ROUNDUPS BECAUSE EGYPT ISN'T ACCUSTOMED TO SUCH HARSH REPRESSION MASS ARRESTS LIKE THOSE IN IMBABA ALONG WITH CASES OF BEATINGS AND KILLINGS HAVE SHOCKED CITIZENS BUT THE OUTRAGE HAS NOT SLOWED A SPIRALING WAR OF VENGEANCE BETWEEN POLICE AND CITIZENS IN THE SOUTHERN EGYPTIAN TOWN OF ABU TIG FOR EXAMPLE MILITANTS RECENTLY AMBUSHED A SENIOR POLICE OFFICER IN BROAD DAYLIGHT BYSTANDERS WOULDN'T HELP THE BLEEDING MAN AT THE VICTIM'S FUNERAL THE COMMENTS OF EGYPT'S INTERIOR MINISTER AT THE TIME ABDELHALIM MOUSSA ILLUSTRATED JUST HOW DEEP THE RIFT BETWEEN GOVERNMENT AND GOVERNED HAS BECOME IN SOME QUARTERS ISLAM TEACHES RETRIBUTION HE SAID IN THE EULOGY THE POLICE WILL APPLY THE TRUE TEACHINGS OF ISLAM THAT MINDSET HAS CAUSED DEEP UNEASE ABOUT THE GOVERNMENT'S TACTICS AMONG MILITARY OFFICERS PERHAPS THE MOST PIVOTAL GROUP SUPPORTING THE REGIME BY USING EXCESSIVE FORCE MANY IN THE ARMY BELIEVE MR MUBARAK HIMSELF A FORMER AIR FORCE COMMANDER IS ONLY ADDING TO HIS ENEMIES THEIR THE GOVERNMENT'S STUPIDITY IS THE TALK OF THE OFFICERS' CLUBS SAYS GEN DESSOUKI OF THE ALAHRAM FOUNDATION WHO ARE WE FIGHTING HERE THE WHOLE SITUATION HAS TURNED INTO A SMALL HELL FOR HIS PART MR MUBARAK HAS BLAMED IRAN AND SUDAN FOR THE FUNDAMENTALIST INSURGENCY WITHOUT PRODUCING A SHRED OF EVIDENCE BUT NO ONE BELIEVES HIM SAYS A FORMER SENIOR STATE DEPARTMENT OFFICIAL IT'S NOT IRAN OR SUDAN IT'S HIM INDEED MANY EGYPTIANS EXPRESS FRUSTRATION AT MR MUBARAK'S FAILURE TO INTRODUCE NEW BLOOD OR FRESH IDEAS INTO HIS REGIME CREATING WHAT ONE BUSINESSMAN CALLS A STALE ODOR OF HOPELESSNESS IN OCTOBER MR MUBARAK IS SCHEDULED TO BE REELECTED FOR HIS THIRD SIXYEAR TERM IN AN ELECTION THAT PERMITS NO OPPOSITION MOST GRATING OF ALL SOME SAY IS THE PRESIDENT'S TOLERANCE OF PERVASIVE GOVERNMENT CORRUPTION AFTER A RECENT SPEECH IN WHICH MR MUBARAK DECLARED THAT THERE IS NO SOCIETY OF ANGELS AND THAT EGYPT HAD FEWER CASES OF CORRUPTION THAN ANY COUNTRY IN THE WORLD MANY WONDERED IF HE HASN'T SIMPLY LOST TOUCH FAVORITISM AND GRAFT HAVE DRIVEN INDIVIDUALS LIKE AHMAD A 24YEAROLD CAIRENE TO SUPPORT THE ISLAMIC REBELLION THOUGH EXTREMIST VIOLENCE HAS DRIVEN AWAY TOURISTS AND DEVASTATED HIS INCOME AS A GUIDE IT IS CORRUPTION HE SAYS THAT HAS COST HIM HIS DREAM AHMAD TELLS A KIND OF STORY THAT CAN BE HEARD ALL OVER EGYPT TODAY AFTER GRADUATING FIFTH IN HIS CLASS FROM UNIVERSITY TWO YEARS AGO AHMAD WAS PASSED OVER FOR A TEACHING POST THAT HE MAINTAINS WAS GIVEN TO A GOVERNMENT OFFICIAL'S DAUGHTER WHO GRADUATED MUCH LOWER IN THE CLASS I WOULDN'T MIND IF THE TOURISTS NEVER COME BACK HE SAYS AS LONG AS THE GOVERNMENT GIVES ME WHAT I DESERVE FOR THE US INSTABILITY IN EGYPT POSES A LARGE QUANDARY OUT OF SENSITIVITY FOR THE STRONG ANTICOLONIAL FEELING THAT REMAINS IN EGYPT RECENT US ADMINISTRATIONS HAVE BEEN RELUCTANT TO TRY TO GUIDE MR MUBARAK OR WORK AROUND HIM YOU'VE GOT TO BE SURE YOU DON'T ALIENATE EGYPT'S LEADERS AND DRIVE THEM INTO THE BUNKER SAYS RICHARD HAASS WHO WAS PRESIDENT BUSH'S SPECIAL ASSISTANT FOR THE MIDDLE EAST AT THE NATIONAL SECURITY COUNCIL MR HAASS SEES EGYPT AS BEING IN A PRECRISIS STAGE THEY HAVE AN UNHEALTHY DEGREE OF CYNICISM FRUSTRATION AND ALIENATION ULTIMATELY THE DURABILITY OF MR MUBARAK'S REGIME WILL PROBABLY DEPEND NOT ON EGYPT'S GREATEST AID DONOR BUT ON THOSE WHO HAVE BENEFITED THE MOST FROM OFFICIAL FAVORITISM THE MILITARY SO FAR EGYPT'S 400000MAN REGULAR ARMY HAS STAYED MOSTLY ABOVE THE FRAY LEAVING THE PARAMILITARY POLICE TO FIGHT THE MUSLIM MILITANTS THE ARRANGEMENT HAS ALLOWED THE MILITARY TO RETAIN ITS MORAL STATUS AS GUARDIAN OF THE STATE YET EXACTLY HOW THE ARMY'S LOYALTY MIGHT SWING IN A CRISIS IS THE QUESTION OF THE HOUR IN CAIRO SOME SAY THE MILITARY WOULDN'T DARE DEFY THE REGIME PARTICULARLY SINCE SO MANY OFFICERS HAVE BEEN EDUCATED IN CONSTITUTIONAL NORMS AT US MILITARY ACADEMIES IN THE YEARS SINCE CAMP DAVID OTHERS MINDFUL OF A LITANY OF OFFICERS' GRIEVANCES AREN'T SO SURE MORALE FOR ONE THING IS SLUMPING BECAUSE OF A LOSS OF PRESTIGE SINCE HOSTILITIES WITH ISRAEL CEASED 20 YEARS AGO THE ARMY'S ROLE IN EGYPTIAN SOCIETY HAS SHRUNK DRAMATICALLY OFFICERS STILL OCCUPY SOME UNLIKELY POSTS SUCH AS THE TOP JOBS AT EGYPT'S SPORTS FEDERATIONS BUT THEY ARE MUCH LESS INVOLVED IN GOVERNMENT AND THE HUGE PUBLIC SECTOR THAN IN THE MID1970S WHEN OFFICERS RAN EVERYTHING FROM GOVERNMENTOWNED LOCAL BAKERIES TO RAILROADS BACK THEN YOUNG WOMEN LINED UP TO MARRY ARMY MEN NOW THEY CHOOSE AMONG THE NEW CLASS OF ENTREPRENEURS WHOSE GAUDY WEDDINGS AT FIVESTAR HOTELS SURPASS MOST OFFICERS' WILDEST DREAMS YOU HAVE A DISSATISFIED MILITARY THAT IS VERY SENSITIVE TO WHETHER THEIR STATUS IS RESPECTED SAYS MOHAMMED SIDAHMED A POLITICAL COLUMNIST IN CAIRO OFFICERS HAVE ALSO SEEN THEIR PAY AND PRIVILEGES DECLINE THE TREND HAS ACCELERATED SINCE 1989 WHEN MR MUBARAK FIRED HIS POPULAR DEFENSE MINISTER AND POTENTIAL RIVAL ABDULHALIM ABU GHAZALA ONE BRIGADIER GENERAL SAYS HE RECEIVED SIX PAY RAISES IN EIGHT YEARS UNDER MR GHAZALA BUT JUST ONE SINCE HIS OUSTER TRADITIONAL PERKS LIKE ARMYBUILT APARTMENTS AND LOWCOST CARS HAVE BECOME EVER SCARCER AND WHILE OFFICERS STILL HAVE ACCESS TO DOZENS OF MILITARY RESORTS AND CLUBS EVEN THESE FACILITIES PALE NEXT TO THE LUXURY HOTELS AND RESTAURANTS BUILT BY THE PRIVATE SECTOR IN RECENT YEARS AN OFFICER TODAY CAN'T COMPETE AGAINST A CIVILIAN WITH A PRIVATE BUSINESS SAYS ONE GENERAL WHAT HE MAKES IN A MONTH A BUSINESSMAN CAN MAKE IN A DAY DESPITE THE COMPLAINTS MOST OBSERVERS DISCOUNT THE LIKELIHOOD OF A MILITARY COUP ANYTIME SOON SINCE MR SADAT'S ASSASSINATION BY A CLIQUE OF RADICAL OFFICERS 12 YEARS AGO EGYPT HAS BUILT A COMPREHENSIVE NETWORK FOR SURVEILLANCE OF THE MILITARY EVERY UNIT OF 30 MEN OR MORE HAS A SECURITY OFFICER PHONES ARE TAPPED AND FAMILIES ARE WATCHED BUT SHOULD WIDESPREAD UNREST BREAK OUT THE ARMY'S REACTION WILL BE CRITICAL FUNDAMENTALISTS BELIEVE THAT ARMY LOYALTY TO THE REGIME IS EXAGGERATED THE ARMY IS NOT AGAINST US THEY'RE PART OF THE EGYPTIAN PEOPLE SAYS SAFWAT ABDEL GHANI A LEADER OF THE MILITANT ISLAMIC GROUP NOW ON TRIAL FOR TERRORISM SOME MILITARY INSIDERS SAY THE GOVERNMENT WON'T FIND THE ARMY USEFUL IN A CRISIS THE REGIME KNOWS THAT ONLY THE ARMY CAN CHANGE THE GOVERNMENT SO THEY'LL KEEP THE TROOPS IN THE BARRACKS AT ALL COSTS PREDICTS ONE RETIRED GENERAL PUTTING TROOPS ON THE STREETS IS MUBARAK'S LAST CARD IF MR MUBARAK CHOOSES TO PLAY THAT CARD DURING AN UPRISING ALAHRAM'S GEN DESSOUKI BELIEVES THE MOVE COULD BACKFIRE ON THE EGYPTIAN PRESIDENT I DEEPLY DOUBT THE MILITARY WILL SHOOT THE PEOPLE FOR THE SAKE OF SUCH AN UNPOPULAR GOVERNMENT SEE RELATED LETTER LETTERS TO THE EDITOR YOUR VIEWS ON EGYPT MUBARAK ARE DISTORTED WSJ JULY 30 1993 9306140034 YY93 MM07 9307280098 930521 LEISURE & ARTS BUSINESS BOOKSHELF THE REAL STORY OF THE REAL THING' BY MICHAEL J MCCARTHY A COKE AD ON THE BACK COVER OF THE JUNE 1936 ISSUE OF NATIONAL GEOGRAPHIC REVEALS MUCH ABOUT COCACOLA CO'S HISTORY THERE'S NOTHING SURPRISING ABOUT THE BATHINGSUIT BEAUTIES OR THE ICECOLD COKE BOTTLES BUT WHY DOES THE AD SHOW THE GOOD HOUSEKEEPING SEAL OF APPROVAL SURELY COCACOLA NATIONALLY KNOWN AND MARKETED FOR 50 YEARS AT THAT TIME DIDN'T NEED THE FAMILIAR OVAL SEAL THAT VAUNTED ENDORSEMENT OF PRODUCT TRUSTWORTHINESS IN FACT COKE DID BEHIND THE GLITZ AND FANFARE THE BUBBLY BROWN BEVERAGE HAS HAD A TORTURED AND CONTROVERSYFILLED HISTORY IT IS METICULOUSLY CHRONICLED IN A NEW UNAUTHORIZED ACCOUNT FOR GOD COUNTRY AND COCACOLA SCRIBNER'S 556 PAGES 2750 AS IT ROSE FROM A MEDICINAL ELIXIR TO THE WORLD'S NO 1 SOFT DRINK TODAY COKE CONTINUOUSLY DEFLECTED THE ATTACKS OF COUNTERFEIT COLA MAKERS AND HIGHMINDED CRITICS THE DRINK THAT DRIPS AMERICANA HAS BEEN ASSAILED BY REGULATORS AND NUTRITIONISTS FOR ITS COCAINE IN THE EARLY YEARS CAFFEINE AND HIGHSUGAR CONTENT AND BLAMED FOR ADDICTIVENESS AND IMPOTENCE THE COMPANY'S MASTER IMAGE MAKERS HAVE OFTEN HAD TO WORK OVERTIME TO SELL COKE AS THE DRINK REPRESENTING ALL THAT IS WHOLESOME AND GOOD EVEN TODAY TO DEFLECT POTENTIAL CRITICISM THE COMPANY AVOIDS ADVERTISING ON SATURDAYMORNING CHILDREN'S SHOWS WEIGHING IN AT A HEFTY 2 POUNDS 4 1/2 OUNCES MARK PENDERGRAST'S TOME CONSISTS OF A DENSE CORPORATE HISTORY BUTTRESSED BY 96 PAGES OF FOOTNOTES A BUBBLY PAGE TURNER THIS IS NOT MR PENDERGRAST A LIBRARIAN TURNED BUSINESS WRITER OFFERS UNRELENTING DETAIL ON FEDERAL TRADE COMMISSION INQUIRIES AND PILES BOTTLER LAWSUIT ON TOP OF BOTTLER LAWSUIT TUCKED AWAY IN SMALLTYPE FOOTNOTES IS INFORMATION THAT SHOULD EITHER HAVE BEEN FLESHED OUT OR LEFT OUT IN ONE BIZARRE NOTE AN ANONYMOUS INSIDER IS ALLOWED TO INDULGE IN SEXUAL GOSSIP ABOUT COMPANY PATRIARCH ROBERT W WOODRUFF COKE'S GUIDING LIGHT FOR SIX DECADES STRETCHING INTO THE 1980S BUT THE BOOK DOES SHOW HOW MUCH COKE HAS PENETRATED AND SOMETIMES SHAPED AMERICAN CULTURE AS AN ANTIDOTE TO THE FRENETIC LIFESTYLE OF THE ROARING '20S COKE URGED THE PUBLIC TO TAKE THE PAUSE THAT REFRESHES IN THE '30S COKECOMMISSIONED PAINTINGS OF A JOLLY SANTA CLAUS SUITED UP IN COCACOLA RED SET THE STANDARD FOR THE CHRISTMAS CHARACTER BEFORE THAT ILLUSTRATIONS VARIOUSLY SHOWED SANTA IN BLUE GREEN EVEN YELLOW OUTFITS IN THE '50S COKE SPONSORED OZZIE AND HARRIET NELSON'S TV SHOW IN THE LATE '60S TAPPING INTO YOUTHS' AVERSION TO HYPOCRITES AND PHONIES COKE WAS CHRISTENED THE REAL THING THE BOOK ALSO SPELLS OUT COKE'S COKE CONNECTION DEFINITIVELY FOR NEARLY A CENTURY COCACOLA CO HAS MAINTAINED THAT ITS PRODUCT NEVER CONTAINED THE DRUG BUT COURT TESTIMONY BY EARLY COKE PRESIDENT ASA CANDLER PROVES OTHERWISE IN 1898 THE COMMISSIONER OF INTERNAL REVENUE CLASSIFIED COCACOLA AS A DRUG WHICH MADE IT SUBJECT TO SPECIAL TAXES WHEN COKE SUED TO OBJECT MR CANDLER CONCEDED ON THE WITNESS STAND THAT HIS DRINK CONTAINED A VERY SMALL PROPORTION OF COCAINE COKE WON THE CASE THE BOOK SAYS BUT DROPPED THE CONTROVERSIAL INGREDIENT SHORTLY THEREAFTER ULTIMATELY MORE DAMAGING WAS COKE'S DECISION NOT TO BUY A FINANCIALLY TROUBLED RIVAL IN THE COLA BUSINESS BETWEEN 1922 AND 1932 COCACOLA WAS OFFERED THREE DIFFERENT CHANCES TO BUY PEPSICOLA CO BUT PASSED EACH TIME THE COMPANY CHOSE ITS FRIENDS MORE WISELY AFTER SENDING COMPANY MEN AND COKES WITH US TROOPS INTO EUROPE AND JAPAN DURING WORLD WAR II MR WOODRUFF BECAME COZY WITH DWIGHT D EISENHOWER IN THE REBUILDING EFFORT IN THOSE WARTORN AREAS COKE ESTABLISHED MARKET LEADS IT HAS NEVER LOST AT THE END OF THE WAR COKE EVEN BEGAN SECRETLY SUPPLYING A COKELOVING RUSSIAN GENERAL GEORGI KONSTANTINOVICH ZHUKOV THE PROBLEM WAS AS A RUSSIAN WAR HERO THE GENERAL KNEW HE COULDN'T BE SPOTTED SIPPING A SYMBOL OF AMERICAN IMPERIALISM SO COKE DEVELOPED A SPECIALLY FORMULATED WHITE COKE ABSENT THE CHARACTERISTIC DARK COLOR AND SHIPPED IT TO THE RED RUSSIAN MUCH STRONGER ON THE FIRST 50 YEARS OR SO THE BOOK GETS THINNER AND THINNER AS WE MOVE CLOSER TO THE PRESENT IT IS DISAPPOINTING NOT TO FIND ANY REVELATIONS ABOUT THE NEW COKE FIASCO OF 1985 AMONG THE MANY COMMENTS THE AUTHOR HAS MANAGED TO EXTRACT FROM HIS INSIDER SOURCES THE BOOK DOES HOWEVER PUBLISH THE LEGENDARY SUPERSECRET ORIGINAL RECIPE FOR COKE OR AT LEAST IT PURPORTS TO THE COMPANY DENIES THAT THE INGREDIENTS MR PENDERGRAST LISTS INCLUDING FLUID EXTRACT OF COCA CITRATE CAFFEINE LIME JUICE SUGAR WATER ORANGE NUTMEG AND NEROLI AND CORIANDER OILS REPRESENT THE TRUE FORMULA WHO KNOWS IF WHAT MR PENDERGRAST STUMBLED UPON IN COKE'S EXTENSIVE HISTORICAL ARCHIVES IS THE REAL THING ANYONE WANTING TO COOK SOME UP CAN'T EXACTLY POP DOWN TO THE GROCERY STORE TO PICK UP NEROLI OIL OR FOR THAT MATTER THE COCA EXTRACT THAT THE DRUG ENFORCEMENT AGENCY TENDS TO FROWN ON MR MCCARTHY COVERS THE SOFTDRINK INDUSTRY FROM THE JOURNAL'S ATLANTA BUREAU SEE RELATED LETTER LETTERS TO THE EDITOR COKE FOREVER REAL WSJ JULY 28 1993 9305210084 YY93 MM07 9307270126 930607 LETTERS TO THE EDITOR SOME HMO PRACTICES PUT PATIENTS AT RISK THE RAND CORP STUDY SHOWING A LARGE NUMBER OF UNNECESSARY HYSTERECTOMIES PERFORMED AT HEALTH MAINTENANCE ORGANIZATIONS IS ONLY ONE OF THE REASONS WHY CONSUMERS SHOULD BE WARY OF THESE HEALTH PLANS HMOS PERFORM INAPPROPRIATE HYSTERECTOMIES MAY 12 MANY HMOS HIRE NONBOARDCERTIFIED PHYSICIANS WHO PROVIDE INFERIOR CARE TO PATIENTS AND THEIR OFTEN RIGID INSISTENCE ON USING ONLY FACILITIES THAT ARE PART OF THE HMO NETWORK EVEN WHEN IT MAY BE IN THE PATIENT'S INTEREST TO BE REFERRED ELSEWHERE CAN PUT MEMBERS OF SOME HMOS AT SIGNIFICANT RISK IN OUR LAW PRACTICE WE SEE MORE CASES OF NEGLIGENCE INCOMPETENCE AND MALPRACTICE AT HMOS THAN AT UNIVERSITY HOSPITALS PRIVATE HOSPITALS OR IN ANY OTHER TYPE OF HEALTH PLAN IN FACT A MUCH HIGHER PERCENTAGE OF THE CLAIMS OF MALPRACTICE WE SEE AGAINST HMOS ARE VALID THAN AGAINST ALL OTHER TYPES OF INSTITUTIONS ONE OF THE PRINCIPAL GOALS OF ANY HEALTHCARE PROVIDER SHOULD BE TO PROTECT THE PUBLIC FROM SUBSTANDARD PHYSICIANS ALL TOO OFTEN HMOS PUT THEIR PATIENTS INTO THE HANDS OF SUCH PRACTITIONERS IGNORE THE RISKS AND PAT THEMSELVES ON THE BACK FOR PROVIDING LOWCOST CARE WHAT ABOUT COMPETENT CARE SEE RELATED LETTER LETTERS TO THE EDITOR HMO PHYSICIANS SHOW HIGH CERTIFICATION RATE WSJ JULY 27 1993 9306070007 YY93 MM07 9307270059 930625 POLITICS & POLICY STREET SMARTS NOT BOOK LEARNING MAY MAKE FOR A MORE SUCCESSFUL PRESIDENT SCHOLARS SAY BY JAMES M PERRY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENTIAL SCHOLARS TEND TO AGREE THAT BILL CLINTON IS THE SMARTEST PRESIDENT SINCE RICHARD NIXON MR NIXON THEY ALSO AGREE WAS THE SMARTEST PRESIDENT SINCE WOODROW WILSON AND RONALD REAGAN WELL BY SOME ACCOUNTS HE WASN'T SMART AT ALL IT DOES MAKE YOU WONDER SAYS STEPHEN AMBROSE OF THE UNIVERSITY OF NEW ORLEANS A NIXON BIOGRAPHER BY SMARTEST THESE SCHOLARS MEAN SMART THE WAY IQ EXAMS MEASURE BEING SMART NIXON PROBABLY WENT RIGHT THROUGH THE ROOF ON IQ TESTS SAYS JAMES REICHLEY A GEORGETOWN UNIVERSITY POLITICAL SCIENTIST MR CLINTON PROBABLY REGISTERS STRATOSPHERICALLY ON IQ TESTS TOO MR REAGAN MIGHT NOT HAVE BEEN CAPABLE OF PRODUCING THE KINDS OF TEST SCORES THAT WOULD HAVE IMPRESSED GEORGETOWN OXFORD AND YALE UNIVERSITIES ALL OF WHICH MR CLINTON ATTENDED MR REAGAN WENT TO LITTLE EUREKA COLLEGE EUREKA ILL BY ANY STANDARD MR CLINTON IS WELLEDUCATED HE'S THE SORT OF FELLOW WHO CAN TALK ABOUT ARCANE SUBJECTS WITHOUT NOTES FOR HOURS BUT MOST OBSERVERS BELIEVE HE HAS STUMBLED BADLY IN GETTING HIS ADMINISTRATION OUT OF THE GATES CAUSING HIS APPROVAL RATINGS IN NATIONAL POLLS TO TUMBLE SO IF HE'S SO SMART HOW COULD HE ALLOW THAT TO HAPPEN AND WHY IF MR REAGAN WAS SO LIMITED DID HE GET SO MUCH DONE IN HIS FIRST YEAR IN OFFICE THERE ARE NO SIMPLE ANSWERS BUT SCHOLARS SAY A KEY MAY LURK IN THE MEANING OF BEING SMART IN A DIFFICULT LINE OF WORK THE PRESIDENCY IT IS A JOB THAT HAS FRUSTRATED A NUMBER OF VERY INTELLIGENT AMERICANS AND FAVORED A NUMBER OF OTHERS WITH SEEMINGLY VERY ORDINARY INTELLECTS BEING REALLY SMART IT TURNS OUT IS NO GUARANTEE OF BEING REALLY SUCCESSFUL IN THE WHITE HOUSE MR NIXON AFTER ALL WAS PUSHED OUT OF OFFICE FOR HIS CLUMSY AND CYNICAL ROLE IN WATERGATE MR WILSON WHO WROTE AN ENTIRE BOOK ABOUT CONGRESS WITHOUT EVER VISITING WASHINGTON BROKE DOWN OVER HIS EFFORTS TO SELL THE LEAGUE OF NATIONS TO AN INHISFACE CONGRESS THERE ARE DIFFERENT KINDS OF SMARTS' SAYS PRINCETON UNIVERSITY'S FRED GREENSTEIN A BIOGRAPHER OF DWIGHT EISENHOWER MR EISENHOWER MR GREENSTEIN SAYS WAS NO RAGING INTELLECTUAL EITHER BUT HE HAD A COUPLE OF THINGS GOING FOR HIM FIRST OF ALL HE HAD A ROCKSOLID GYROSCOPE A FEW THINGS WERE IMPORTANT TO HIM AND HE KNEW WHAT THEY WERE ON TOP OF THAT MR GREENSTEIN ARGUES MR EISENHOWER WAS A LOT SMARTER THAN HIS SOMETIMES INARTICULATE PRESSCONFERENCE PERFORMANCES WOULD SUGGEST IN HIS PRIVATE CORRESPONDENCE SAYS MR GREENSTEIN HE WAS VERY ARTICULATE MR REAGAN SAYS MR GREENSTEIN KNEW A FEW THINGS TOO THOUGH SOME OF THEM WERE WRONG AND HE NEVER DOUBTED WHERE HE STOOD HE HAD ENORMOUS CONFIDENCE THEN TOO BOTH MR EISENHOWER AND MR REAGAN HAD RUN LARGE ENTERPRISES THE ALLIED FORCES IN EUROPE IN WORLD WAR II IN MR EISENHOWER'S CASE AND THE MININATION OF CALIFORNIA IN MR REAGAN'S BOTH OF THEM KNEW THE VALUE OF A GOOD STAFF A BRILLIANT INTELLECT MAY ACTUALLY BE A HANDICAP FOR A PRESIDENT SAYS MR REICHLEY WHAT YOU WANT IS A MAN OF INTELLIGENCE WITH STREET SMARTS AND GOOD INTUITION FRANKLIN ROOSEVELT THE SCHOLARS SAY FITS THAT DESCRIPTION HOWARD GARDNER A PSYCHOLOGIST AND AN EDUCATION PROFESSOR AT HARVARD UNIVERSITY IS A PIONEER IN EXPLORING WHAT HE CALLS MULTIPLE INTELLIGENCES AND HE HAS APPLIED HIS THEORIES TO AMERICAN PRESIDENTS MR REAGAN HE SAYS POSSESSED AN UNUSUAL INTELLIGENCE FOR A POLITICIAN THAT HE DESCRIBES AS INTERPERSONAL WHICH MEANS MR REAGAN MAKES SENSE OF THE WORLD NARRATIVELY UNLIKE SCIENTISTS AND INTELLECTUALS WHO UNDERSTAND LOGIC BUT OFTEN CAN'T TELL STORIES THAT IS UNUSUAL FOR A PRESIDENT MR GARDNER SAYS BUT NOT UNUSUAL FOR AN ACTOR ACTORS FIND IT EASIER TO MIMIC THAN TO UNDERSTAND MR CLINTON ON THE OTHER HAND IS THE CLASSIC LOGICALMATHEMATICAL INTELLIGENCE THE KIND THAT SCORES WELL ON IQ TESTS AND PRODUCES PROFESSORS AND LAWYERS AND SOMETIMES PRESIDENTS PEOPLE WITH MR CLINTON'S KIND OF INTELLIGENCE OFTEN FEEL THEY HAVE TO SHOW IT MR GARDNER SAYS THAT WAS TRUE OF WOODROW WILSON IT WAS EVEN TRUE OF JIMMY CARTER THEY NEED TO DEMONSTRATE THEY UNDERSTAND EVERYTHING MR REAGAN SAYS MR GARDNER DIDN'T SUFFER ANY OF THIS WITH A NUMBER OF PRIME EXCEPTIONS THOMAS JEFFERSON ABRAHAM LINCOLN AND TEDDY ROOSEVELT COME TO MIND POLITICIANS END UP IN TROUBLE WHEN THEY GET TOO SMART INTELLECTUALS SAYS DUKE UNIVERSITY'S JAMES DAVID BARBER A STUDENT OF PRESIDENTIAL BEHAVIOR THINK THAT KNOWLEDGE IS COMPLEXIFICATION BUT SOMETIMES REAL KNOWLEDGE IS SIMPLICITY AND IT'S SIMPLICITY THAT ALLOWS A PRESIDENT TO COMMUNICATE WITH THE PEOPLE BY CONTRAST SAYS MR GREENSTEIN MR CLINTON'S MIND IS FILLED WITH EXCITING IDEAS AND HE'S EAGER TO TALK ABOUT ALL OF THEM BUT WHAT HE SEEMS TO LACK IS SOME KIND OF NARROWING MECHANISM SOME WAY TO SORT THEM ALL OUT HE DOESN'T HAVE A SET OF SIMPLE PRIORITIES IT WOULD HELP MR GREENSTEIN BELIEVES IF MR CLINTON HAD SOMEONE AROUND HIM TO ADVISE HIM ON THAT SORTING OUT PROCESS BUT HE DOESN'T ORGANIZE ORGANIZE ORGANIZE ADVISES MR BARBER WHO HAS DISCUSSED THESE THINGS WITH MR CLINTON AT RENAISSANCE WEEKEND RETREATS HE SHOULD TAKE A PAGE FROM ROSS PEROT'S BOOK AND TELL THE COUNTRY WHAT HE WANTS TO DO IN AN UNDERSTANDABLE WAY I DON'T THINK PEROT SHOULD BE PRESIDENT BUT HE'S MADE HIMSELF POPULAR ON THOSE TV SHOWS BY STATING HIS CASE SO SIMPLY MR BARBER BELIEVES TOO THAT MR CLINTON SHOULD LISTEN TO TAPES OF FRANKLIN ROOSEVELT'S FIRESIDE CHATS AND READ SOME OF RONALD REAGAN'S SPEECHES IN FAIRNESS TO MR CLINTON THESE OBSERVERS NOTE THAT BEING GOVERNOR OF ARKANSAS IS A FAR CRY FROM BEING PRESIDENT OF THE US HE'S CHANGED BALL PARKS SAYS MR REICHLEY AND IT'S A LONG WAY FROM LITTLE ROCK TO WASHINGTON NO MATTER HOW SMART HE IS HE SIMPLY DIDN'T HAVE THE TRAINING TO PREPARE HIM FOR THIS JOB THE CLOSEST PARALLEL IS JIMMY CARTER WHO TRAVELED A LONG ROAD FROM THE GOVERNOR'S OFFICE IN ATLANTA TO THE OVAL OFFICE IN WASHINGTON MR CARTER TRAINED AT THE NAVAL ACADEMY AS AN ENGINEER WAS BRIGHT ENOUGH BUT HE GOT LOST IN THE DETAILS SAYS MR REICHLEY MR CARTER HAD THAT SAME KIND OF LOGICALMATHEMATICAL INTELLIGENCE MR CLINTON HAS FOR MR CLINTON SAYS MR GARDNER THE PSYCHOLOGIST THE TRICK WILL BE ONCE HE SETTLES MORE COMFORTABLY INTO HIS NEW JOB TO LOOK AT ALL THIS LOGICALLY EVEN MATHEMATICALLY IF HE DOES HE MIGHT ACTUALLY FIGURE SOME OF IT OUT THE ONE THING ABOUT HIM MR GARDNER SAYS HE IS INCREDIBLY RESILIENT SEE RELATED LETTERS LETTERS TO THE EDITOR IQ TESTS NEVER MEASURE COMMON SENSE WSJ JULY 27 1993 9306250006 YY93 MM07 9307260143 930616 REVIEW & OUTLOOK EDITORIAL KLEPTOCRATS' CONFERENCE IF YOU THINK WASHINGTON IS DISORGANIZED NOW TAKE A LOOK AT WHAT'S GOING ON IN VIENNA THE OLD HABSBURG CAPITAL THIS WEEK IS HOST TO A WORLDCLASS WALTZ OF HYPOCRISY OTHERWISE KNOWN AS THE UNITED NATIONS WORLD CONFERENCE ON HUMAN RIGHTS THE RIGHTS BALL IS THE BIGGEST SUCH EVENT TO ADDRESS THE SUBJECT OF HUMAN RIGHTS IN DECADES WE CAN THINK OF SOME MAJOR HUMANRIGHTS ABUSES WORTHY OF DISCUSSION IN VIENNA AND WILL TAKE TWO LINES TO NAME THEM CASTRO'S IMPRISONMENT OF CUBAN CITIZENS AND SADDAM'S SUPPRESSION OF THE IRAQI PEOPLE ALSO SINCE WOMEN'S RIGHTS ARE THE OSTENSIBLE TOPIC OF THE VIENNA MEETING WE'LL TAKE TWO MORE LINES TO MENTION ABUSES INVOLVING THIS GROUP FEMALE CIRCUMCISION IN MUSLIM AND AFRICAN COUNTRIES AND FEMALE INFANTICIDE IN CHINA THESE LAST TWO ARE GENUINE TRAGEDIES INVOLVING MILLIONS OF LITTLE GIRLS SO YOU'D ASSUME THAT ANYTHING CALLED THE WORLD CONFERENCE ON HUMAN RIGHTS WOULD WANT TO DISCUSS THEM FORGET ABOUT IT YESTERDAY THE CONFERENCE SAT RAPT AS A WOMAN FROM PISCATAWAY NJ RELATED HOW SHE WAS RAPED AS A GIRL BY HER STEPFATHER THEN WORKED AT A BARBECUE STAND TO PAY FOR HER ABORTION BEYOND THIS VIENNA'S PARTICIPANTS LED BY SUCH HUMANRIGHTS MODELS AS SYRIA CHINA AND YEMENARE USING THE CONFERENCE TO DEFINE WHAT ARE KNOWN IN THIS GAME AS CULTURAL RIGHTS THE ARGUMENT BASICALLY GOES SOMETHING LIKE THIS WHEN YOU BIG BAD WEST TELL US WE ARE VIOLATING HUMAN RIGHTS YOU ARE DEFINING HUMAN RIGHTS IN YOUR OWN TERMS BUT IN OUR CULTURE THEY ARE NOT ABUSES AND YOU VIOLATE OUR SOVEREIGNTY WHEN YOU CALL THEM THAT HENCE WE GET THE SPECTACLE OF CHINA'S VICEFOREIGN MINISTER LIU HUAQIU IN VIENNA WITH A DELEGATION OF 27 TO WHINE ABOUT THE WEST'S IMPOSITION OF DOUBLE CRITERIA ON CHINA EVEN AS HIS NATION SUPPORTED BY THE UN WAS BLOCKING AN APPEARANCE IN VIENNA BY THE DALAI LAMA TIBET'S NOBEL PRIZE WINNING SPIRITUAL LEADER HENCE FARCE THE US DELEGATION PROPERLY RESISTED THIS NONSENSE EARLIER IN THE WEEK SECRETARY OF STATE WARREN CHRISTOPHER TOLD VIENNA GUESTS THAT WE CANNOT LET CULTURAL RELATIVISM BECOME THE LAST REFUGE OF REPRESSION MEANWHILE THE CONFERENCE FELT FREE TO ABUSE MR CHRISTOPHER'S INTELLECTUAL GODFATHER ON HUMAN RIGHTS JIMMY CARTER ON SATURDAY A LOUD MINORITY IN A CROWD OF 1400 BOOED THE FORMER PRESIDENT OFF THE STAGE ONE HAS TO ASK WHY IS THE US DELEGATION OF 39 PEOPLE DIGNIFYING THIS CIRCUS WHAT WE BASICALLY HAVE HERE ARE THE BIGGEST BLOWHARDS FROM SOME OF THE THIRD WORLD'S BIGGEST KLEPTOCRACIES BOONDOGGLING IN FANCY VIENNESE HOTELS SINCE WHEN DOES ANY SERIOUS COUNTRY HAVE TO SIT STILL TO BE LECTURED ON HUMAN RIGHTS BY BURMA THE ADMINISTRATION'S REPRESENTATIVES MR CHRISTOPHER AND HIS NEW HUMANRIGHTS HAND JOHN SHATTUCKSAY THEY'RE IN VIENNA TO HOLD THE FORT ON UNIVERSAL INDIVIDUAL RIGHTS BUT IN FACT THEY'RE USING THE VIENNA VENUE TO ANNOUNCE MR CLINTON'S DECISION TO URGE SENATE APPROVAL OF FOUR TREATYTYPE DOCUMENTS ORIGINALLY SIGNED BY JIMMY CARTER BUT PASSED OVER BY PRESIDENTS REAGAN AND BUSH A TREATY AGAINST RACE DISCRIMINATION A TREATY OPPOSING DISCRIMINATION AGAINST WOMEN A CONVENTION ON HUMAN RIGHTS AND A COVENANT DEFENDING ECONOMIC SOCIAL AND CULTURAL RIGHTS THE PROBLEM WITH THESE HARMLESSSOUNDING GOALS IS THAT IN PRACTICE THEY PROTECT MAINLY THE KLEPTOCRATS WHO USE THESE NEW EXPANSIVE RIGHTS AS A MORALISTIC BASIS FOR DEMANDING THAT THE DEVELOPED NORTH FUND THE UNDERDEVELOPED SOUTH THEIR LOGIC PLAYS STRAIGHT INTO THE SOFT BELLY OF LIBERAL GUILT AND THIS ADMINISTRATION APPEARS TO HAVE PLENTY OF THAT VICE PRESIDENT GORE RECENTLY SNAPPED TO ATTENTION ON BEHALF OF THE REDISTRIBUTIONIST MANTRA A CHILD BORN IN THE US WILL HAVE DURING HIS OR HER LIFETIME 30 TIMES AS MUCH OF AN IMPACT ON THE EARTH'S ENVIRONMENT AS A CHILD BORN IN INDIA THE AFFLUENT OF THE WORLD HAVE A RESPONSIBILITY TO DEAL WITH THEIR DISPROPORTIONATE IMPACT IF SYRIA IRAQ CHINA AND THE REST THINK THEY'RE ONTO A BETTER SYSTEM OF GOVERNMENT AND INDIVIDUAL RIGHTS THAN WHAT JOHN LOCKE JAMES MADISON AND THE WEST DEVELOPED WITH CENTURIES OF WORK THEY SHOULD BY ALL MEANS FEEL FREE TO OFFER THE WORLD THEIR WISDOM BUT THE IDEA THAT HUMAN RIGHTS REQUIRES THAT THE WEST LOOK AWAY FROM TRUE HUMANRIGHTS CRIMES AND SEND MORE DOLLARS STRAIGHT INTO THE DEEP POCKETS OF THESE DELEGATES AND THEIR PATRONS WHILE THEIR CITIZENRY LIVES IN SQUALOR OR SILENCE IS AN OUTRAGE WE SUPPOSE IT'S TOO MUCH TO EXPECT THAT MR CHRISTOPHER AND HIS TEAM WOULD SEND THIS EFFORT THE WAY OF THE DOOMED LAW OF THE SEA EFFORT OF YEARS BACK SO INSTEAD WE OFFER THEM A BIT OF VIENNESE INSTRUCTION GLIDE STEP GLIDE SEE RELATED LETTER LETTERS TO THE EDITOR RELATIVISM THREATENS HUMAN RIGHTS CONCEPT WSJ JULY 26 1993 9306160074 YY93 MM07 9307260085 930615 IT'S A PROUD CALLING BUT THE NOTARY'S LOT IS FULL OF INDIGNITIES THE PAY IS LOUSY AND THE WORK IS PRETTY MUCH THANKLESS AS 42 MILLION WILL ATTEST BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL FOR DOWNWARD MOBILITY YOUR LOCAL NOTARY PUBLIC MAY TAKE THE CAKE IN ANCIENT BABYLON 3000 YEARS AGO NOTARIES EARNED FIVE TIMES AS MUCH AS POLICE CHIEFS IN THE HOLY ROMAN EMPIRE 1000 YEARS AGO THEY HAD MORE PRESTIGE THAN JUDGES SOME NOTARIES RATE EVEN LESS PEOPLE DON'T APPRECIATE US BECAUSE OUR JOB SOUNDS SO SIMPLE AND STUPID SAYS ALFRED PIOMBINO A 30YEAROLD NOTARY FROM POUGHKEEPSIE NY ARMED WITH THEIR OFFICIAL STAMPS NOTARIES PUBLIC WITNESS THE SIGNATURES ON ALL THAT PAPER THAT KEEPS THE NATION TICKING WHILE CERTIFYING COPIES OF OFFICIAL DOCUMENTS LIKE BIRTH AND DEATH CERTIFICATES IT TAKES 42 MILLION US NOTARIES TO DO THE JOB MORE THAN ALL DOCTORS LAWYERS AND ACCOUNTANTS PUT TOGETHER BUT AS NOTARIES SEE IT THEY ARE ABOUT THE LEAST VISIBLE MOST UNDERPAID GROUP IN THE POPULATION IT WOULD BE NEXT TO IMPOSSIBLE TO MAKE A LIVING AS A NOTARY WITHOUT ANOTHER JOB ON THE SIDE MR PIOMBINO MAKES MONEY GIVING LECTURES AT COLLEGES AND WRITING BOOKS ON NOTARY LAW BUT HIS NOTARY WORK HE SAYS EARNS HIM JUST 1000 A YEAR HE SAYS HIS MOTHER IS ASHAMED AND DEFENSIVE ABOUT WHAT HE DOES AND HOW MUCH HE EARNS DOING IT HE PLANS TO GO TO LAW SCHOOL IN THE FALL I GUESS I JUST WANT TO JOIN A REAL PROFESSION HE SAYS ONE REASON THE PUBLIC DOESN'T LOOK UP TO NOTARIES IS THAT THE TITLE IS SO EASY TO OBTAIN ONLY A DOZEN STATES REQUIRE EVEN A SIMPLE LICENSING TEST TO PASS IN NEW YORK FOR EXAMPLE AN APPLICANT MUST CORRECTLY ANSWER 28 OF 40 MULTIPLECHOICE QUESTIONS SUCH AS WHAT IS THE HIGHEST FEE FOR ADMINISTERING AN OATH PERMITTED IN THIS STATE ANSWER 2 JUST 11 STATES REQUIRE NOTARIES TO READ AND WRITE ENGLISH SOME NOTARIES STILL CHARGE AS LITTLE AS A QUARTER TO WITNESS A SIGNATURE WITH SEAL OR RUBBER STAMP FLORIDA ALLOWS FOR THE HIGHEST FEE IN THE NATION 10 STATES ROUTINELY SNUB REQUESTS FOR FEE INCREASES MURRAY HERB MULLER 65 OF VAN NUYS CALIF WHO ADVERTISES HAVE STAMP WILL TRAVEL IN THE TELEPHONE DIRECTORY HAS BEEN A NOTARY FOR 30 YEARS BUT I'VE NEVER MADE MORE THAN 30 A WEEK NOTARIZING DOCUMENTS SO I'VE HAD TO TAKE BIT PARTS IN MOVIES HE SAYS NOTARIES WHO ARE STATE OFFICIALS ARE PROUD OF THE WORK THEY DO INDEED MANY SECRETARIES CLERKS MORTICIANS AND STORE MANAGERS DO NOTARY WORK SOMETIMES FREE OF CHARGE MRS ELLINGTON IN SAN ANTONIO SAYS SHE BECAME A NOTARY BECAUSE IT'S AN EASY WAY TO BECOME A PUBLIC SERVANT AND HELP OTHERS WITHOUT A LOT OF EFFORT BEFOREHAND SHE DIDN'T HAVE TO TAKE A TEST IN TEXAS SHE WORKS IN A SMALL BOOTH IN THE COURTHOUSE AND SAYS THERE IS A LOT MORE EXCITEMENT IN STAMPING DOCUMENTS THAN PEOPLE THINK ONCE A CLEARLY AGITATED FELLOW ASKED HER TO NOTARIZE HIS SALE OF TEXAS TO THE STATE GOVERNMENT I WAS SCARED SHE SAYS I SENT HIM TO THE DISTRICT ATTORNEY'S OFFICE AND THANK HEAVEN HE DIDN'T RETURN NOTARIES POINT OUT THAT THEY CAN PERFORM MANY MORE FUNCTIONS THAN PEOPLE REALIZE WHY THEY CAN EVEN SWEAR IN PRESIDENTS OF THE UNITED STATES LYNDON JOHNSON PASSED UP HIS CHANCE TO BE SWORN IN AS PRESIDENT IN 1963 BY A NOTARY IN DALLAS WHEN PRESIDENT KENNEDY WAS ASSASSINATED HE INSISTED ON WAITING UNTIL HE REACHED AIR FORCE ONE WHERE HE WAS SWORN IN BY A FEDERAL JUDGE BUT CALVIN COOLIDGE WAS SWORN IN AS PRESIDENT IN 1923 BY A NOTARY HIS FATHER JOHN THE CEREMONY WAS LATER REPEATED WITH A SUPREME COURT JUSTICE ADMINISTERING THE OATH OF OFFICE SOME PEOPLE JUST DON'T FEEL A NOTARY'S OATH LENDS MUCH PRESTIGE TO THE NATION'S HIGHEST OFFICE SAYS MR PIOMBINO IN THREE STATES FLORIDA MAINE AND SOUTH CAROLINA NOTARIES CAN ALSO PERFORM MARRIAGES THAT JOB COMMANDS AS MUCH AS 20 MORE CASH BUT STILL NOT MUCH CACHET ARLENE KLEIN OF KEY WEST FLA IS IN THE VANGUARD OF EFFORTS TO BRING SOME COLOR TO THE NOTARY'S IMAGE WEARING A WHITE PITH HELMET SHE RIDES A MOTOR SCOOTER AND LISTS HERSELF IN THE PHONE BOOK AS MARRYING SAM AFTER THE CHARACTER IN THE COMIC STRIP LI'L ABNER IN SCUBA GEAR SHE HAS MARRIED COUPLES UNDERWATER IN AN APPROPRIATE STATE OF UNDRESS SHE HAS MARRIED NUDISTS I WAS THE ONLY ONE WITH TAN LINES SHE SAYS BUT IMAGECONSCIOUS NOTARIES AREN'T COUNTING SOLELY ON WACKY MARRIAGES TO BURNISH THEIR IMAGES THE 21000MEMBER AMERICAN SOCIETY OF NOTARIES IN WASHINGTON DC AND THE 40000MEMBER NATIONAL NOTARY ASSOCIATION IN LOS ANGELES ARE DOING SOME ORGANIZED IMAGEBUILDING FOR NEARLY 20 YEARS THE WASHINGTON SOCIETY HAS BEEN URGING STATES TO DECLARE NOV 7 NOTARY PUBLIC DAY SO FAR ONLY 30 STATES HAVE DONE SO SAYS EUGENE HINES THE SOCIETY'S EXECUTIVE DIRECTOR SO THE SOCIETY LAST YEAR BEEFED UP ITS CAMPAIGN WITH THE SLOGANS TAKE A NOTARY TO LUNCH AND NOTARIES ARE NOTABLE BUT ONLY A FEW NEWSPAPERS FOUND THAT WORTH MENTIONING MR HINES SAYS FROM THE ANNALS THE NATIONAL NOTARY PUBLIC A PUBLICATION OF THE SOCIETY SELLS ITS MEMBERS A COPY OF A DOCUMENTNOTARIZED BY JOHN TROUP OF BOSTON IN 1781 RECORDING WILLIAM COLLINGS'S SALE OF HIS WIFE TO THOMAS SCHOOLER FOR 2 AND SIX BOWLS OF GROG WE HOPED SOME WOULD BUY IT AS GIFTS TO LEND HISTORICAL SIGNIFICANCE TO NOTARIES SAYS MR HINES BUT A FEW HAVE SNICKERED SAYING THEY PLAN TO SEND IT TO THEIR WIVES OR GIRLFRIENDS AS WARNINGS HE ADDS FOUR YEARS AGO THE LOS ANGELES ASSOCIATION BEGAN PICKING A NOTARY OF THE YEAR TO RECOGNIZE THOSE WHO WORK FOR HUMANITY DAYINANDDAYOUT WITHOUT PLAUDITS SAYS CHARLES FAERBER A VICE PRESIDENT OF THE GROUP THIS YEAR MRS ELLINGTON OF TEXAS WAS SELECTED FOR BEING A BEACON OF COMFORT AND GUIDANCE TO THE HUNDREDS OF WORRIED CITIZENS WHO DAILY COURSE THROUGH HER BUILDING BUT EVEN THE MAGIC OF PUBLIC RELATIONS PROBABLY CAN'T RESTORE THE GLORY OF YESTERYEAR DURING THE HOLY ROMAN EMPIRE THE NOTARIUS WAS THE LAW KEEPER AND CHIEF ARCHIVIST OF CHURCH CANONS SAYS LUCIANA DURANTI AN ASSISTANT PROFESSOR OF ARCHIVAL STUDIES AT THE UNIVERSITY OF BRITISH COLUMBIA IN VANCOUVER AFTER A NOTARY SCHOOL WAS OPENED IN ROME IN 1010 AD GRADUATES WERE AMONG THE HIGHEST PAID OF GOVERNMENT OFFICIALS SHE SAYS BUT OVER THE CENTURIES AS KINGS AND DESPOTS WHO HAD HIRED NOTARIES DISAPPEARED AND THE RULE OF LAW EVOLVED THE LEGAL AND OFFICIAL DUTIES OF NOTARIES PASSED TO ATTORNEYS AND OTHER GOVERNMENT OFFICIALS THE NOTARIUS IS NOW LESS THAN A MINOR NABOB MS DURANTI SAYS SEE RELATED LETTER LETTERS TO THE EDITOR AMERICA'S NOTARIES EVER FAITHFUL AND TRUE WSJ JULY 26 1993 9306150117 YY93 MM07 9307260076 930617 POLITICS & POLICY UNDER PEROT GROUP'S HOOD IS FINANCIAL ENGINE EXEMPT FROM REPAIRS HE'S URGING ON THE PARTIES BY JILL ABRAMSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ROSS PEROT IS DEMANDING THAT THE FINANCIAL RULES OF THE POLITICAL GAME BE REFORMED BUT EVEN IF CONGRESS HEEDS HIS CALL IT WON'T AFFECT HOW MR PEROT AND HIS UNITED WE STAND ORGANIZATION RAISE OR SPEND THEIR MONEY SET UP AS A NONPROFIT CORPORATION UNITED WE STAND HAS AN ALTOGETHER DIFFERENT AND FAR MORE FLEXIBLE PLAYBOOK IT CAN TAKE IN UNLIMITED CONTRIBUTIONS FROM MR PEROT OR JUST ABOUT ANY SOURCE INDIVIDUAL OR CORPORATE IT CAN LOBBY IT CAN WITHIN LIMITATIONS PARTICIPATE IN CAMPAIGNS AND IT CAN DO ALL OF THESE THINGS WITHOUT HAVING TO PUBLICLY DISCLOSE ITS FINANCING OR CONTRIBUTORS THE WAY PARTIES CANDIDATES AND EVEN ONE OF MR PEROT'S FAVORITE TARGETS POLITICAL ACTION COMMITTEES MUST FROM ALL APPEARANCES THIS IS A THIRD PARTY OPERATING OUTSIDE THE VERY ELECTION LAWS WHICH RESTRICT THE FINANCING SIGNIFICANTLY OF THE TWO MAJOR POLITICAL PARTIES IT IS COMPETING WITH CHARGES WASHINGTON LAWYER ROBERT BAUER WHO ADVISES THE DEMOCRATIC PARTY ON ELECTION LAWS MR BAUER WORRIES THAT IN CONTEMPLATING CAMPAIGN FINANCE REFORM LEGISLATION THE TWO POLITICAL PARTIES COULD BE PLACING DRASTIC RESTICTIONS ON FUNDRAISING LEAVING MR PEROT AND HIS ORGANIZATION A CLEAR RESTRICTIONSFREE FIELD AS LONG AS PUBLIC EDUCATION AND NOT PARTISAN ELECTIONEERING IS THE PRIMARY MISSION MR PEROT AND UNITED WE STAND CAN BECOME A MULTIMILLIONDOLLAR POLITICAL JUGGERNAUT WHILE OPERATING SECRETLY AND WHOLLY OUTSIDE OF THE FEDERAL ELECTION LAWS UNLIKE OTHER KINDS OF CHARITABLE GROUPS AND NONPROFITS UNITED WE STAND AND MR PEROT ALSO ENJOY GREATER POLITICAL AND LOBBYING FREEDOMS BECAUSE CONTRIBUTIONS TO THE GROUP AREN'T TAXDEDUCTIBLE THEY CAN AND DO KEEP THE SIZE AND MEMBERSHIP OF THEIR ORGANIZATION TO THEMSELVES FOR A TAXEXEMPT ORGANIZATION TO KEEP SECRET THE SOURCE OF FINANCING SEEMS LIKE A PARADOX BECAUSE ALL THESE ORGANIZATIONS ARE DESIGNED TO SUPPORT PUBLIC PURPOSES SAYS ELLEN MILLER OF THE CENTER FOR RESPONSIVE POLITICS WHICH HAS STUDIED THE ROLE OF TAXEXEMPT FOUNDATIONS IN POLITICS SECRECY DEFENDED WE ARE SATISFYING ANY LEGAL OBLIGATIONS THAT APPLY TO US RESPONDS SHARON HOLMAN A SPOKESWOMAN FOR MR PEROT UNITED WE STAND WILL HAVE TO PUBLICLY DISCLOSE SOME FINANCIAL DETAILS IN ITS ANNUAL TAX RETURNS ADDITIONALLY ACCORDING TO CLAYTON MULFORD WHO IS MR PEROT'S SONINLAW ONE OF UNITED WE STAND'S THREE BOARD MEMBERS AND THE LAWYER WHO OVERSEES ITS COMPLIANCE WITH TAX AND ELECTION LAWS THE ORGANIZATION IS CONSIDERING HAVING A PUBLIC AUDIT OF THE ENTITY WHEN IT IS IN THE GROUP'S BEST INTEREST SAYS MR MULFORD IT WILL ALSO RELEASE THE NUMBER OF MEMBERS THE GROUP HAS RECRUITED IN TERMS OF ITS LEGAL MISSION UNITED WE STAND IS EDUCATING THE PUBLIC ALBEIT IN WAYS THAT DOVETAIL NICELY WITH MR PEROT'S OWN POLITICAL PLATFORM SINCE THE CREATION OF UNITED WE STAND AFTER THE NOVEMBER ELECTION MR PEROT HIMSELF HAS PAID FOR THREE INFOMERICALS ON CABLE AND NETWORK TELEVISION THE MOST RECENT WAS A BROADSIDE ATTACK ON THE NORTH AMERICAN FREE TRADE AGREEMENT REPLETE WITH THE TEXAN'S FAMOUS CHARTS THE OTHERS ADDRESSED THE NEED FOR GOVERNMENT REFORM AND SPENDING CUTS THE INFOMERICALS HAVE ALSO BEEN USED TO RECRUIT MEMBERS MR PEROT AND HIS NEW GRASS ROOTS ARMY HAVE STEPPED NEAR THE LINE OF PARTISAN CAMPAIGN ACTIVITIES MOST RECENTLY THEY EMBRACED THE CANDIDACY OF VICTORIOUS TEXAS REPUBLICAN SENATE CANDIDATE KAY BAILEY HUTCHISON THOUGH MR PEROT APPEARED IN PUBLIC WITH HER UNITED WE STAND STOPPED SHORT OF AN OFFICIAL ENDORSEMENT SO AS NOT TO RUN AFOUL OF THE POLITICAL RESTRICTIONS ON NONPROFIT CORPORATIONS IN CALIFORNIA UNITED WE STAND MEMBERS ARE DEBATING WHETHER TO ENDORSE A SLATE OF CANDIDATES IN THE 1994 ELECTIONS AND THE GROUP HAS VOWED TO HELP DEFEAT MEMBERS OF CONGRESS WHO WON'T SUPPORT CAMPAIGN FINANCE REFORM TWO MOVES THAT COULD ATTRACT SCRUTINY FROM THE FEDERAL ELECTION COMMISSION TO RETAIN ITS TAXEXEMPT STATUS UNITED WE STAND DOES HAVE TO LIMIT SOME OF ITS POLITICAL ACTIVITIES AND AVOID OVERT PARTISAN ELECTION ACTIVITES FUNDRAISING FOR POLITICAL CANDIDATES IS ONE PROBLEMATIC AREA PROVIDING RESEARCH AND OTHER RESOURCES DIRECTLY TO CANDIDATES IS ANOTHER IF MR PEROT AND HIS FOLLOWERS RUN AFOUL OF THE FAIRLY ARCANE INTERNAL REVENUE SERVICE REGULATIONS GOVERNING THEIR ACTIVITIES UNITED WE STAND COULD BE FORCED TO REGISTER AS A POLITICAL COMMITTEE WITH THE FEDERAL ELECTION COMMISSION OR TO FORM AN AFFILIATED POLITICAL ACTION COMMITTEE THAT WOULD BRING FAR GREATER FUNDRAISING RESTRICTIONS INCLUDING DISCLOSURE REQUIREMENTS AND LIMITING HOW MUCH MONEY MR PEROT HIMSELF COULD GIVE THE ORGANIZATION THE DALLAS BILLIONAIRE PUMPED MORE THAN 60 MILLION INTO HIS 1992 PRESIDENTIAL CAMPAIGN AND IS SPENDING LAVISHLY TO BUILD UNITED WE STAND SO FAR NONE OF THE 15 MEMBERSHIP CONTRIBUTIONS HAVE BEEN USED TO PAY FOR UNITED WE STAND ACTIVITIES BECAUSE MR PEROT HAS PAID VIRTUALLY ALL THE EXPENSES ACCORDING TO MR MULFORD THAT INCLUDES A HEADQUARTERS IN DALLAS NEAR MR PEROT'S CORPORATE HEADQUARTERS AND PAID FIELD STAFF MEMBERS IN 23 STATES ALL BUT A FEW OF WHOM WERE INVOLVED IN MR PEROT'S 1992 PRESIDENTIAL CAMPAIGN CAMPAIGN VETERANS AT THE DALLAS HEADQUARTERS INCLUDE MS HOLMAN MR MULFORD AND EXECTIVE DIRECTOR DARCY ANDERSON ALTHOUGH MR MULFORD SAYS THERE IS NO LINK BETWEEN MR PEROT'S OLD CAMPAIGN ORGANIZATION AND UNITED WE STAND FIVE STAFF MEMBERS AT UNITED WE STAND ARE WORKING ON CLOSING OUT THE 1992 CAMPAIGN COMMITTEE IN JANUARY AND FEBRUARY THE PEROT '92 COMMITTEE PAID MORE THAN 100000 IN CONSULTING FEES TO UNITED WE STAND TO COVER THE COST OF THEIR SERVICES ALTHOUGH MR PEROT AND THE UNDISCLOSED NUMBER OF 15 DUESPAYERS ARE THE MAJOR SOURCE OF FUNDING FOR UNITED WE STAND THE GROUP ALSO SOLICITS LARGER CONTRIBUTIONS MR MULFORD SAYS A SCREENWRITER IN NEW YORK HAS OFFERED A LARGE DONATION TO COVER THE DUES OF PEOPLE WHO CAN'T AFFORD THE 15 MR MULFORD ALSO NOTES THAT EVEN IF UNITED WE STAND WERE STRUCTURED LIKE A CAMPAIGN COMMITTEE IT WOULDN'T HAVE TO REVEAL MUCH ABOUT ITS MEMBERS ANYWAY SINCE THE ELECTION LAWS ONLY REQUIRE DISCLOSURE OF CONTRIBUTIONS ABOVE 200 MR PEROT'S ORGANIZATION IS BY NO MEANS THE ONLY POLITICAL FORCE OPERATING OUTSIDE THE ELECTION LAWS AS A NONPROFIT OPERATION PAT ROBERTSON'S CHRISTIAN COALITION WHICH HAS PARTICIPATED IN LOCAL ELECTIONS MUCH MORE THAN UNITED WE STAND HAS IS ALSO STRUCTURED AS A NONPROFIT GROUP SO IS JESSE JACKSON'S RAINBOW COALITION WHICH ORGANIZES VOTER REGISTRATION DRIVES INDEED THE TAX AND ELECTION LAWS GOVERNING POLITICAL ACTIVITY WERE PURPOSELY DESIGNED TO ENCOURAGE BROAD PARTICIPATION EXACTLY THE SAME GOAL EMBRACED BY UNITED WE STAND MR MULFORD NOTES WE ARE DOING THINGS THAT COULD BE DETERMINED BROADLY AS POLITICAL BUT WE ARE ALSO EDUCATING HE SAYS ORGANIZING THE LARGE CENTER OF THE COUNTRY IS NOT AN EASY TASK SEE RELATED LETTER LETTERS TO THE EDITOR CHRISTIAN COALITION STRICTLY NONPARTISAN WSJ JULY 26 1993 9306170021 YY93 MM07 9307230026 930618 REVIEW & OUTLOOK EDITORIAL MONIQUE IN TANGLES MONIQUE LANDERS IS A 15YEAROLD HIGH SCHOOL STUDENT WHO ALREADY HAS HER OWN SMALL AFRICAN HAIRBRAIDING BUSINESS THAT IS SHE DID UNTIL SIX WEEKS AGO WHEN THE STATE OF KANSAS SHUT HER DOWN BECAUSE SHE DIDN'T HAVE A COSMETOLOGY LICENSE MONIQUE LEARNED SHE HAD TO CLOSE HER BUSINESS JUST AFTER SHE RETURNED FROM NEW YORK WHERE SHE HAD BEEN HONORED AS ONE OF FIVE OUTSTANDING HIGH SCHOOL ENTREPRENEURS AN OFFICIAL AT THE KANSAS COSMETOLOGY BOARD READ ABOUT HER AWARD AND PROMPTLY DEMANDED THAT SHE DESIST MONIQUE STARTED HER BUSINESS IN WICHITA LAST YEAR WITH THE HELP OF THE NATIONAL FOUNDATION FOR TEACHING ENTREPRENEURSHIP NFTE WAS FOUNDED IN 1987 BY STEVE MARIOTTI A NEW YORK CITY BUSINESSMAN WHO DECIDED AFTER HE WAS MUGGED THAT INNERCITY YOUTHS SHOULD BE GIVEN AN ALTERNATIVE TO LIFE ON THE STREETS HIS PROGRAM TEACHES STUDENTS IN 10 CITIES HOW TO DEVELOP A BUSINESS PLAN AND MARKET A PRODUCT OR SERVICE A REMARKABLE 84 OF GRADUATES REPORT THEY USE THE KNOWLEDGE TO EARN MONEY FOR THEMSELVES MONIQUE STARTED A TOUCH OF CLASS AND BEGAN BRAIDING AND WASHING THE HAIR OF FRIENDS AND FAMILY MEMBERS SHE MADE A PROFIT OF ABOUT 100 A MONTH THIS WAS TOO MUCH FOR THE KANSAS COSMETOLOGY BOARD WHICH WARNED HER IT WAS ILLEGAL FOR HER TO IN ANY WAY TOUCH HAIR FOR PROFIT WITHOUT A LICENSE IF SHE DIDN'T STOP THEY WROTE THE YOUNGSTER SHE WAS SUBJECT TO A FINE OR IMPRISONMENT IN THE COUNTY JAIL OR BOTH NANCY SHOBE THE BOARD'S EXECUTIVE DIRECTOR SAYS MONIQUE SHOULD GO TO A YEARLONG COSMETOLOGY SCHOOL IF SHE WANTS TO BRAID HAIR MONIQUE SAYS FEW SCHOOLS EVEN TEACH BRAIDING AND ANYWAY NONE WILL TAKE HER UNTIL SHE TURNS 17 I NEED TO FINISH SCHOOL FIRST SHE TOLD US THE BOARD WON'T LET ME EARN MY OWN MONEY AND WON'T LET KIDS LIKE ME LEARN HOW TO TAKE CARE OF OURSELVES THE BOARD ACTED AFTER IT RECEIVED COMPLAINTS FROM HAIR SALONS AND COSMETOLOGY SCHOOLS MONIQUE'S CUSTOMERS DIDN'T COMPLAIN IN SHUTTING HER DOWN IT IS DOING WHAT LICENSING BOARDS ROUTINELY DO IMPOSE RIGID AND UNREASONABLE BARRIERS TO NEWCOMERS WHO WANT TO ENTER A BUSINESS LAST YEAR WE REPORTED ON TAALIBDAN UQDAH A WASHINGTON DC HAIRBRAIDER WHO WAS ALMOST SHUT DOWN BECAUSE HE POSED A THREAT TO OTHER SALONS JOHN STOSSEL A REPORTER FOR ABC'S 20/20 SAYS HIS 20 YEARS OF CONSUMER REPORTING HAVE TAUGHT HIM THAT LICENSING BOARD RULES CAN END UP HURTING MORE PEOPLE THAN THEY PROTECT MONIQUE IS ONE OF THE VICTIMS OF THOSE RULES SHE MAINLY WANTS TO BETTER HERSELF ONE OF HER BROTHERS HAS BEEN IN JAIL AND A SISTER HAS BEEN EXPELLED FROM SCHOOL I THINK OWNING YOUR OWN BUSINESS IS A WAY OF BEING FREE SHE SAYS IF MORE KIDS KNEW THEY COULD GROW UP TO BE THEIR OWN BOSS THEY WOULD BE MORE RESPONSIBLE AND CAUSE LESS TROUBLE PERHAPS MONIQUE HAS TECHNICALLY VIOLATED KANSAS'S COSMETOLOGY STATUTE IF SO IT'S TIME IT AND THE LICENSING LAWS IN OTHER STATES THAT REGULATE 500 OCCUPATIONS COVERING 10 OF THE NATION'S WORK FORCE WERE OVERHAULED A VALUABLE PROGRAM SUCH AS NFTE HAS ENOUGH TROUBLE TURNING ATRISK YOUTH AROUND WITHOUT HAVING TO BATTLE PETTY BUREAUCRATS AT THE SAME TIME SEE RELATED LETTER LETTERS TO THE EDITOR FEDS SWOOP DOWN ON LEMONADE RACKET WSJ JULY 14 1993 SEE RELATED LETTERS LETTERS TO THE EDITOR WORK HARD AND PLAY BY THE RULES WSJ JULY 23 1993 9306180095 9307150130 YY93 MM07 9307230019 930615 THE FINAL CHOICE CLINTON PICKS GINSBURG FOR THE SUPREME COURT AFTER TORTUOUS SEARCH AGAIN HIS WAVERING RAISES QUESTIONS ABOUT ABILITY TO MAKE HARD DECISIONS A CENTRIST APPELLATE JUDGE BY PAUL M BARRETT AND JEFFREY H BIRNBAUM STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON FOR WOULDBE SUPREME COURT JUSTICES AS FOR ATTORNEY GENERAL CANDIDATES THE LESSON SEEMS TO BE WHEN BILL CLINTON IS DOING THE PICKING IT'S BETTER TO BE LAST THAN FIRST AFTER WEEKS OF VACILLATION AND HIGHLY PUBLIC CONTEMPLATION OF OTHER CANDIDATES MR CLINTON YESTERDAY NOMINATED RUTH BADER GINSBURG TO FILL THE VACANCY CREATED BY THE RETIREMENT OF JUSTICE BYRON WHITE IN DOING SO HE TAPPED A POLITICALLY MODERATE WELLRESPECTED APPELLATE JUDGE WHO PLAYED A HISTORIC ROLE IN OPENING OPPORTUNITIES FOR AMERICAN WOMEN BUT HE DID SO AT THE EXPENSE OF HIS IMAGE AS A STRONG AND DECISIVE LEADER MR CLINTON OFFERED WORDS OF HIGH PRAISE FOR EACH OF THE TWO MEN HE HAD BEEN ON THE VERGE OF NOMINATING AT VARIOUS TIMES OVER THE PAST TWO WEEKS INTERIOR SECRETARY BRUCE BABBITT AND US COURT OF APPEALS JUDGE STEPHEN BREYER OF BOSTON EITHER ONE WOULD BE HIGHLY QUALIFIED TO SERVE ON THE COURT HE SAID AND THEY MAY WELL FIND THEMSELVES IN THAT POSITION SOMEDAY IN THE FUTURE BUT THE WAY THE TWO MEN WERE SO VISIBLY RAISED UP AND THEN SET DOWN AT THE FIRST SIGN OF POTENTIAL POLITICAL TROUBLE REINFORCES CONCERNS ABOUT THE PRESIDENT'S STICKTOITIVENESS THAT HAVE BEEN FUELED BY SUCH EPISODES AS HIS ABANDONMENT OF HIS CONTROVERSIAL TAX ON THE HEAT CONTENT OF FUELS AND HIS WITHDRAWAL OF LANI GUINIER'S NOMINATION TO HEAD THE JUSTICE DEPARTMENT'S CIVILRIGHTS OFFICE IT CONTRIBUTES TO A PATTERN OF INDECISIVENESS SAYS IRWIN TUBBY HARRISON A DEMOCRATIC POLLSTER THOUGH HE ADDS THAT FOR NOW AT LEAST THE PROBLEM FOR MR CLINTON IS BIGGER INSIDE THE WASHINGTON BELTWAY THAN IN THE COUNTRY AT LARGE THE PRESIDENT'S EVENTUAL CHOICE JUDGE GINSBURG IS A FAR CRY FROM THE SORT OF JUSTICE HE HAS SAID HE WANTED A NATIONALLY KNOWN POLITICAL FIGURE WHO COULD BUILD A NEW MORE PROGRESSIVE CONSENSUS ON THE FRAGMENTED RIGHTLEANING HIGH COURT LAST YEAR DURING PREPARATION FOR A DEBATE AGAINST GEORGE BUSH AND ROSS PEROT CLINTON POLITICAL ADVISER PAUL BEGALA THREW A PRACTICE QUESTION AT THE CANDIDATE WOULDN'T MR CLINTON'S PUBLICLY STATED DESIRE TO APPOINT SOMEONE SUCH AS NEW YORK GOV MARIO CUOMO TO THE SUPREME COURT BE JUST A CRASS POLITICAL MANEUVER TO CLOISTER A POTENTIAL RIVAL NOT SO MR CLINTON RESPONDED HE SPOKE PASSIONATELY ABOUT HOW THE SUPREME COURT THAT DECIDED THE LANDMARK 1954 SCHOOL DESEGREGATION CASE NOT ONLY WAS LED BY FORMER CALIFORNIA GOVERNOR AND VICE PRESIDENTIAL NOMINEE EARL WARREN BUT ALSO INCLUDED NO FEWER THAN THREE FORMER US SENATORS AS WELL AS A BEVY OF FORMER NEW DEAL POLITICAL FIGURES BUT MR CLINTON'S SEARCH FOR A NEWMODEL EARL WARREN WENT AWRY WHEN GOV CUOMO WITHDREW HIS NAME IN APRIL TRIGGERING THE PAINFUL SEARCH PROCESS THAT CULMINATED YESTERDAY IF THERE IS A SILVER LINING FOR THE PRESIDENT IT MAY BE THAT AS WITH HIS EVENTUAL SELECTION OF JANET RENO AS ATTORNEY GENERAL AFTER DROPPING CHOICES ONE AND TWO HE HAS A POLITICAL WINNER IN JUDGE GINSBURG THE 60YEAROLD JURIST IS AT ONCE A HEROINE TO MANY FEMINIST GROUPS AND A RESPECTED CENTRIST ON AN APPEALS COURT SHARPLY SPLIT BETWEEN HER MORELIBERAL FELLOW CARTER APPOINTEES AND CONSERVATIVES NAMED BY RONALD REAGAN AND GEORGE BUSH BUT WHILE JUDGE GINSBURG HAS THE RESPECT OF BOTH CAMPS ON THE WASHINGTON APPELLATE COURT NOTHING SUGGESTS SHE HAS THE ABILITY TO FORGE A NEW CLINTON MAJORITY ON THE HIGH COURT SHE ISN'T KNOWN FOR ASSERTING MUCH LEADERSHIP RATHER THAN COAX COLLEAGUES TO JOIN HER SHE TENDS TO DELIBERATE INDEPENDENTLY AND THEN STICK WITH HER VIEWS WHETHER OR NOT THEY LEAD TO CONSENSUS SHE ALSO HAS A SOMETIMES PEDANTIC CONCERN ABOUT DETAILS AND PROCEDURE EVEN PEOPLE WHO ADMIRE HER COMMONLY DESCRIBE HER AS SCHOOLMARMISH AND HER OPINIONS REVEAL NO BROAD CONSTITUTIONAL PHILOSOPHY BEFORE SHE CAME TO THE APPEALS COURT JUDGE GINSBURG WAS A LEADING LITIGATOR FOR WOMEN'S RIGHTS IN THE 1970S IRONICALLY THOUGH PRESIDENT CLINTON'S FIRST REACTION WHEN HER NAME WAS FIRST SUGGESTED TO HIM WAS ONE OF CONCERN THAT WOMEN'S GROUPS WOULD OBJECT IT WAS MAY 12 AND MR CLINTON WAS ABOARD AIR FORCE ONE ON HIS WAY TO NEW YORK FOR A SPEECH AND POLITICAL FUNDRAISER ALSO ABOARD WAS NEW YORK DEMOCRATIC SEN DANIEL PATRICK MOYNIHAN A STRONG SUPPORTER OF JUDGE GINSBURG THE SENATOR TOLD MR CLINTON OF A LETTER ENDORSING HER FROM MICHAEL SOVERN THE OUTGOING PRESIDENT OF COLUMBIA UNIVERSITY AND FORMER DEAN OF THE LAW SCHOOL WHERE SHE ONCE TAUGHT MIKE SOVERN JUST DOESN'T WRITE LETTERS LIKE THIS THE SENATOR SAID BUT THE PRESIDENT TOLD ASSOCIATES THAT THERE MIGHT BE TROUBLE FROM WOMEN'S GROUPS IF HE SELECTED JUDGE GINSBURG THE REASON WHILE SHE FAVORS ABORTION RIGHTS SHE HAS CRITICIZED THE SWEEPING NATURE OF THE COURT'S REASONING IN THE 1973 LANDMARK ROE VS WADE DECISION THAT FIRST RECOGNIZED A SPECIAL CONSTITUTIONAL RIGHT TO ABORTION ON FURTHER INVESTIGATION HOWEVER THE WHITE HOUSE FOUND THAT SOME ABORTIONRIGHTS ADVOCATES AGREED WITH HER ARGUMENT AND JUDGE GINSBURG WHOSE NAME HAD BEEN ON THE ORIGINAL LIST OF 50 CANDIDATES COMPILED BY ASSOCIATE WHITE HOUSE COUNSEL RONALD KLAIN BACK WHEN JUSTICE WHITE ANNOUNCED HIS RETIREMENT MOVED UP A NOTCH MR KLAIN'S ORIGINAL LIST HAD TOUCHED DEMOCRATIC PARTY POLITICAL BASES BY MENTIONING AN ETHNICALLY DIVERSE GROUP OF CANDIDATES INCLUDING FEDERAL JUDGES AMALYA KEARSE A BLACK WOMAN JOSE CABRANES A HISPANIC AND JUDGE BREYER WHO LIKE JUDGE GINSBURG IS JEWISH WHITE HOUSE OFFICIALS ACKNOWLEDGE THAT ONE FACTOR ALL ALONG WAS THE PRESIDENT'S INTEREST IN APPOINTING A JEW THE SOCALLED JEWISH SEAT ON THE COURT HASN'T BEEN FILLED SINCE ABE FORTAS RESIGNED IN 1969 BUT WITHIN THE WHITE HOUSE THERE WAS A STRONG ASSUMPTION THAT MR CLINTON GIVEN HIS COMMENTS DURING THE CAMPAIGN WOULD ASK GOV CUOMO THE IDEA OF A POLITICIANASJUSTICE WAS FURTHER PUSHED BY CLINTON LEGAL ADVISER WALTER DELLINGER A DUKE UNIVERSITY LAW PROFESSOR WHO FOR SEVERAL YEARS HAS BEEN PEDDLING THE IDEA THAT THE REPUBLICANDOMINATED COURT LACKS FIGURES OF POLITICAL STATURE ON MARCH 29 10 DAYS AFTER JUSTICE WHITE MADE HIS ANNOUNCEMENT THE PRESIDENT PHONED GOV CUOMO TO TELL HIM HE WAS UNDER VERY SERIOUS CONSIDERATION AND TO ASK WHETHER THE WHITE HOUSE STAFF COULD LAUNCH AN INDEPTH BACKGROUND CHECK BUT THREE DAYS LATER WHEN THE PRESIDENT CALLED AGAIN FROM AIR FORCE ONE ON HIS WAY TO AN ENVIRONMENTAL SUMMIT IN OREGON GOV CUOMO SAID HE HAD THOUGHT IT OVER AND DIDN'T WANT TO BE CONSIDERED HE SAID HE WANTED TO STAY IN POLITICS HIS EXPLANATION BAFFLED THE PRESIDENT AND WHITE HOUSE AIDES WHO NEVER FIGURED OUT IF THERE WAS MORE TO GOV CUOMO'S DECISION SOME WHITE HOUSE AIDES LATER TRIED FALSELY TO SPREAD THE WORD THAT MR CUOMO WOULDN'T REALLY HAVE BEEN CHOSEN ANYWAY BUT HIS WITHDRAWAL CLEARLY LEFT THE WHITE HOUSE SCRAMBLING IT DIDN'T HAVE A RUNNERUP CANDIDATE BUT RATHER THAN WORK METHODICALLY TO NARROW HIS LIST MR CLINTON REISSUED HIS GRANDIOSE STANDARD FOR A NOMINEE WILL PEOPLE SAY WOW THAT'S AN INSPIRED CHOICE FOR THE SUPREME COURT' WITHIN THE WHITE HOUSE ONE OF THE WORDS HE LIKED TO USE MOST WAS BIGNESS THE PROCESS WAS FREEFORM WITH THE PRESIDENT PERSONALLY INVOLVED AT EVERY STEP DISCUSSIONS OCCURRED UNPREDICTABLY SOMETIMES WHEN HE HAPPENED TO RUN INTO WHITE HOUSE COUNSEL BERNARD NUSSBAUM OR MR KLAIN IN THE HALLS WHEN HE PERIODICALLY HAD A LATENIGHT YEN TO TALK OVER THE POSSIBILITIES HE WOULD PICK UP THE PHONE AND CALL HIS AIDES BUT THE INITIAL EXHILARATION ABOUT THE OPPORTUNITY TO NAME A JUSTICE GRADUALLY GAVE WAY TO FRUSTRATION AS STAFF MEMBERS REALIZED THAT THE PRESIDENT'S SIGHTS WERE SET ABOVE THE FIELD OF CANDIDATES THE ADMINISTRATION'S LARGER POLITICAL PROBLEMS ALSO BEGAN TO AFFECT THE PROCESS THE GUINIER NOMINATION FIASCO AND ATTACKS FROM CONSERVATIVE DEMOCRATS IN CONGRESS PROMPTED THE WHITE HOUSE TO LAUNCH A MOVE TO THE POLITICAL MIDDLE AND A SEARCH FOR SOMEONE WHO COULD BE EASILY CONFIRMED PREVIOUS PRESIDENTS GENERALLY TRIED TO KEEP THEIR SCREENING PROCESS LOW KEY FOR INSTANCE BEFORE PRESIDENT BUSH NOMINATED DAVID SOUTER AND CLARENCE THOMAS TO THE COURT CONTENDERS WERE DISCREETLY INTERVIEWED AND DECISIONS WERE QUICKLY MADE BUT THE CLINTON PROCESS DRAGGED ON AND ON AND BECAME INCREASINGLY PUBLIC TO BOOT MR CLINTON ASKED HIS EDUCATION SECRETARY RICHARD RILEY A FORMER GOVERNOR OF SOUTH CAROLINA IF HE WANTED THE JOB BUT MR RILEY DEMURRED HE DIDN'T LIKE THE MONASTIC LIFE OF A JUDGE SAYS HIS FATHER EDWARD P RILEY MR CLINTON NEXT TURNED TO MR BABBITT WHO EMPHATICALLY DID WANT THE JOB HE WAS INTENSIVELY INTERVIEWED IN HIS OFFICE A WEEK AGO SUNDAY EVENING AND WHITE HOUSE AIDES BEGAN TO SPREAD THE WORD THAT HE WAS THE LEADING CANDIDATE BUT BY MIDWEEK THE PRESIDENT WAS BEING BUFFETED BY POLITICAL PRESSURES ENVIRONMENTALISTS AND WESTERNSTATE LAW MAKERS COMPLAINED THAT THEY WANTED MR BABBITT TO STAY AT INTERIOR WHERE HE IS HAVING SOME SUCCESS IN BALANCING BUSINESS AND ECOLOGICAL INTERESTS AT THE SAME TIME SOME CONSERVATIVES ALSO VOWED TO ATTACK THE NOMINEE IN AN EFFORT TO MAKE THE CONFIRMATION PROCESS MESSIER THAN THE WHITE HOUSE WANTED WHILE MR BABBITT REMAINED A CONTENDER THE SPOTLIGHT STARTED TO SHIFT TO JUDGE BREYER A WIDELY RESPECTED JUDICIAL CENTRIST AT THE SAME TIME JUDGE GINSBURG WAS SLATED AS A BACKUP TO JUDGE BREYER SHOULD HIS NAME ALSO CREATE PROBLEMS JUDGE BREYER SEEMED TO OFFER THE PROSPECT OF A TROUBLEFREE CONFIRMATION A FORMER STAFFER FOR SEN EDWARD KENNEDY AND A CONSERVATIVE ON SOME BUSINESSREGULATION ISSUES HE IS POPULAR WITH SENATE REPUBLICANS AS WELL AS DEMOCRATS COMING OFF A HOSPITAL BED TO HAVE LUNCH WITH THE PRESIDENT LAST FRIDAY JUDGE BREYER IMPRESSED MR CLINTON AS INTELLIGENT AND CAPABLE BUT THE PRESIDENT DECIDED TO MEET JUDGE GINSBURG AS WELL THE WHITE HOUSE HAD KNOWN FOR FIVE WEEKS THAT JUDGE BREYER HAD FAILED TO PAY SOCIAL SECURITY TAXES FOR A PARTTIME HOUSEKEEPER WHEN WORD OF THAT LEAKED OUT SATURDAY A FEW SENATORS BEGAN TO EXPRESS QUALMS THE WHITE HOUSE INSISTED THAT THE PROBLEM WASN'T DISQUALIFYING AND THAT MR BREYER REMAINED A CONTENDER BUT EVEN THEN ATTENTION WAS SHIFTING TO JUDGE GINSBURG LATE SATURDAY MORNING THE WHITE HOUSE TRACKED HER DOWN AND TOLD HER SHE WOULD MEET WITH THE PRESIDENT WHITE HOUSE AIDES ARRIVED AT THE GINSBURGS' WATERGATE DUPLEX APARTMENT SUNDAY MORNING SHE WORKED DOWNSTAIRS IN THE LIVING ROOM GOING OVER HER CAREER WITH THE STAFFERS WHILE HER HUSBAND MARTIN A PROMINENT TAX LAWYER WORKED WITH ADMINISTRATION ACCOUNTANTS UPSTAIRS GOING OVER FINANCIAL RECORDS THE RECORDS WERE IMPECCABLY ORDERED INCLUDING ALL SOCIAL SECURITY PAYMENTS THIS WAS IMPORTANT THE IMPRESSION I GOT WAS THAT THE WHITE HOUSE WANTED TO SEE THEIR RECORDS INSTANTLY IF THEY COULD NOT PRODUCE THEIR RECORDS INSTANTLY THE POSSIBILITY OF BEING NAMED WOULD BE GREATLY DIMINISHED SAYS STEPHEN HESS A BROOKINGS INSTITUTION POLITICAL ANALYST AND A RELATIVE BY MARRIAGE OF JUDGE GINSBURG AT ABOUT NOON JUDGE GINSBURG WENT TO THE WHITE HOUSE FOR A PRIVATE LUNCH WITH MR CLINTON AFTERWARD SHE RETURNED TO HER APARTMENT TO FINISH THE VETTING WITH MR NUSSBAUM AND CREW MR CLINTON WENT TO THE GOLF COURSE WITH A LOBBYIST JAMES FREE WASHINGTON LAWYER VERNON JORDAN AND MISSOURI DEMOCRATIC REP ALAN WHEAT MR CLINTON THOUGH AN HOUR LATE REVEALED LITTLE TO HIS GOLF MATES ABOUT THE REASON FOR THE DELAY WE TALKED ABOUT GOLF REP WHEAT SAYS IT WAS A SHORT BREAK FROM WHAT APPEARED TO BE A BUSY DAY AFTER NINE HOLES MR CLINTON SAID HE HAD TO GET BACK TO THE WHITE HOUSE MR JORDAN A CONFIDANT FROM THE CAMPAIGN AND TRANSITION ACCOMPANIED HIM AND REMAINED AT THE WHITE HOUSE JUDGE GINSBURG IN THE MEANTIME FINISHED UP WITH THE VETTERS AND WAS TOLD SHE MIGHT KNOW BY ABOUT 5 PM BY THAT TIME THE WHITE HOUSE INSISTS THE PRESIDENT HAD ALL BUT DECIDED IT WOULD BE JUDGE GINSBURG BUT WENT TO A PRESS DINNER AND DIDN'T BEGIN TO MAKE CALLS TO CONGRESSIONAL LEADERS TO TELL THEM OF HIS DECISION UNTIL MUCH LATER AT 11 PM MR NUSSBAUM CALLED AND TOLD THE GINSBURGS NOT TO GO TO SLEEP FINALLY AROUND 1130 THE PRESIDENT CALLED WITH THE DEFINITIVE WORD SHORTLY AFTER MIDNIGHT JUDGE GINSBURG'S ADVOCATE SEN MOYNIHAN CALLED MR HESS AND WOKE HIM UP WITH THE NEWS IT'S DONE THE SENATOR SAID IT'S EPIC THE LONG PROCESS CAME TO AN END WITH MR CLINTON'S FORMAL ROSE GARDEN ANNOUNCEMENT OF JUDGE GINSBURG'S NOMINATION BUT NOT WITHOUT A FINAL SOUR NOTE AFTER THE PRESIDENT AND JUDGE GINSBURG EACH MADE REMARKS A REPORTER ASKED ABOUT A CERTAIN ZIGZAG QUALITY IN THE DECISIONMAKING PROCESS AND THE PRESIDENT EXPLODED IN ANGER I HAVE LONG SINCE GIVEN UP THE THOUGHT THAT I COULD DISABUSE SOME OF YOU TURNING ANY SUBSTANTIVE DECISION INTO ANYTHING BUT POLITICAL PROCESS MR CLINTON SAID HOW YOU COULD ASK A QUESTION LIKE THAT AFTER THE STATEMENT SHE JUST MADE IS BEYOND ME SEE RELATED LETTER LETTERS TO THE EDITOR CLINTON DIDN'T EXPLODE' WSJ JULY 23 1993 9306150032 YY93 MM07 9307230011 930624 WILD WEST LEGACY RUGER GUN OFTEN FIRES IF DROPPED BUT FIRM SEES NO NEED FOR RECALL COMPANY SETTLES HUNDREDS OF LAWSUITS MAINTAINING THE REVOLVERS ARE SAFE 40 YEARS OF INJURIES DEATHS BY ERIK LARSON STAFF REPORTER OF THE WALL STREET JOURNAL EARLY ON JULY 28 1991 OMER GOUNER JR 48 YEARS OLD OF METAIRIE LA WHEELED HIS BICYCLE INTO A BACK ROOM AT THE CONVENIENCE STORE WHERE HE WORKED AN INSTANT LATER HE WAS ON THE GROUND WITH AN IMMENSE HOLE IN HIS LEG FEELING FANTASTIC PAIN ON APRIL 19 1989 GENE LEE OF LOUISVILLE KY LEANED DOWN TO GATHER SOME WORMS FROM UNDER A LOG HE HAD JUST KICKED OVER HE WAS 15 AT THE TIME HE REMEMBERS THE BLAST AND SEEING BLOOD ON HIS SHIRT FOLLOWED BY AN ODD SENSE OF DISORIENTATION I STARTED COUGHING UP A LOT OF BLOOD HE SAYS THAT SCARED ME PRETTY GOOD A DECADE EARLIER ON JULY 27 1977 PAULA KAYE OF TUCSON ARIZ WAS JUST ABOUT TO CLIMB INTO A PICKUP TRUCK WHEN SHE HEARD SOMETHING CLUNK TO THE GROUND SHE WAS 24 YEARS OLD MY FAMILY AND FRIENDS WERE TOLD NOT TO HAVE ANY HOPE SHE SAYS ALTHOUGH THE THREE INCIDENTS SPAN NEARLY 15 YEARS THEY SHARE A COMMON ELEMENT EACH OCCURRED WHEN A REVOLVER MADE BY STURM RUGER & CO OF SOUTHPORT CONN FELL TO THE GROUND AND FIRED OF ITS OWN ACCORD THESE WERE NOT ISOLATED ACCIDENTS THE THREE VICTIMS JOINED MORE THAN 600 OTHER MEN WOMEN AND CHILDREN WOUNDED IN ACCIDENTAL FIRINGS REPORTED TO THE COMPANY AND LINKED TO THE SAME LINE OF GUNS OVER 40 DIED SCORES WERE SEVERELY WOUNDED THE RESULTING LAWSUITS HUNDREDS OF THEM HAVE DOGGED RUGER FOR DECADES THEY CHARGE THAT THE GUNS ARE PRONE TO FIRE WHEN BUMPED OR DROPPED AND THAT RUGER KNEW OF THE HAZARDS BEFORE IT MANUFACTURED THE FIRST ONE IN 1953 RUGER STOPPED MAKING THE GUNS IN 1972 BUT THE LAWSUITS AND ACCIDENTS CONTINUED IN THE EARLY 1980S RUGER FACED AS MANY AS 60 SUCH LAWSUITS AT A TIME IT HAS SETTLED MOST OFTEN THROUGH PRETRIAL AGREEMENTS THAT REQUIRE THE PLAINTIFFS TO KEEP THE AMOUNTS SECRET ONE RECENT SETTLEMENT DISCLOSED IN A COURT ACTION WAS FOR 35 MILLION YET RUGER NEVER RECALLED THE GUNS AT LEAST NOT IN ANY FASHION RESEMBLING RECALLS ORCHESTRATED BY THE CONSUMER PRODUCT SAFETY COMMISSION WHICH REQUIRES THAT COMPANIES CANDIDLY REPORT THE THREAT OF DEATH OR INJURY POSED BY AN ALLEGED DEFECT RUGER DISCLOSED ONLY BARE DETAILS OF THE GUNS' ACCIDENT RECORD IN ITS ROUTINE SHAREHOLDER COMMUNICATIONS RESERVING A FULLER MORE GRAPHIC ACCOUNT FOR ITS FORMAL FILINGS TO THE SECURITIES AND EXCHANGE COMMISSION IT NEVER TOLD CUSTOMERS OF THE MANY INJURIES ASSOCIATED WITH ITS GUNS EVEN IN 1982 WHEN IT OFFERED TO MODIFY THE WEAPONS AT NO CHARGE IT ADVERTISED THE FIX AS A UNIQUE NEW IMPROVEMENT RUGER OFFICIALS REFERRED ALL CALLS FROM THIS NEWSPAPER TO JAMES P DORR A CHICAGO ATTORNEY WHO HAS BEEN LEADING RUGER'S PRODUCTLIABILITY DEFENSE SINCE 1980 THE COMPANY NEVER RECALLED THE GUNS KNOWN COLLECTIVELY AS OLD MODEL SINGLEACTION REVOLVERS BECAUSE THERE IS NOTHING WRONG WITH THEM MR DORR SAYS A RECALL INVOLVES CALLING BACK A PRODUCT WHICH IS DEFECTIVE THE OLD MODEL SINGLEACTION REVOLVER IS NOT DEFECTIVE IT'S SAFE TO USE WHEN IT'S HANDLED PROPERLY THE INSTRUCTION BOOKS THAT ACCOMPANIED THE GUNS OUTLINED SUCH SAFEHANDLING PRACTICES HE SAYS HE ALSO CONTENDS THE ACCIDENT RATE ASSOCIATED WITH THE OLD MODEL LINE DOESN'T SUPPORT DEFECT CLAIMS I DON'T MEAN TO SOUND CALLOUS IN TALKING ABOUT RATES BUT IF YOU LOOK AT IT OBJECTIVELY THE ACCIDENT RATE WITH THIS GUN HAS NOT BEEN BAD ALTHOUGH WILLIAM B RUGER THE COMPANY'S 76YEAROLD FOUNDER AND CHIEF EXECUTIVE OFFICER WOULD NOT AGREE TO BE INTERVIEWED IN A LETTER TO THIS NEWSPAPER DATED JUNE 8 1993 HE WROTE THE SIMPLE FACTS ARE THAT LITERALLY MILLIONS OF USERS HAVE FIRED BILLIONS OF CARTRIDGES THROUGH THESE REVOLVERS IN THE FORTY YEARS SINCE THEIR INTRODUCTION AND ONLY A VERY TINY FRACTION OF FAR LESS THAN 1 PERCENT OF THEM HAVE EVER EXPERIENCED ANY PROBLEMS TO SUGGEST THAT THE REVOLVER THAT IS THE VERY SYMBOL OF THE AMERICAN WEST IS DEFECTIVE AND SHOULD BE RECALLED IS A LUDICROUS NOTION GUNS OF COURSE ARE INHERENTLY DANGEROUS PRODUCTS AND ACCIDENTS CAN OCCUR WITH ANY GUN BUT PLAINTIFFS ALLEGE THAT THE RATE OF ACCIDENTS ASSOCIATED WITH OLD MODEL REVOLVERS IS INORDINATELY HIGH INDEED AS OF SEPTEMBER 1981 THE LATEST DATE FOR WHICH THIS NEWSPAPER FOUND COURT DISCLOSURE OF ACCIDENT RATES FOR ALL RUGER GUNS THE COMPANY'S 15 MILLION OLD MODEL REVOLVERS ACCOUNTED FOR 190 ACCIDENTALDISCHARGE REPORTS ITS 44 MILLION OTHER GUNS SOLD UP TO THAT POINT ACCOUNTED FOR ONLY 43 IN A 1990 DEPOSITION MR RUGER AGREED THAT THE ACCIDENT CLAIMS ASSOCIATED WITH THE OLD MODEL GUNS WERE HIGHER THAN FOR THE COMPANY'S OTHER REVOLVERS ASKED IF THE RATE WAS VASTLY HIGHER HE REPLIED YES THE 40YEAR SAGA OF THE RUGER OLD MODEL IS LITTLE KNOWN BEYOND THE RANKS OF VICTIMS AND THEIR ATTORNEYS AND IN MOST RESPECTS THE COMPANY ENJOYS ROBUST HEALTH DESPITE A POLITICAL ENVIRONMENT INCREASINGLY HOSTILE TO GUNS ITS STOCK LISTED ON THE NEW YORK STOCK EXCHANGE HAS TRADED THIS YEAR AT A FIVEYEAR HIGH ITS BALANCE SHEET REMAINS FREE OF DEBT LAST YEAR ITS NET INCOME ADVANCED 52 TO 222 MILLION ON MAY 14 THE COMPANY TOLD THE SEC IN A REGISTRATION STATEMENT THAT MR RUGER INTENDED TO SELL UP TO TWO MILLION SHARES OR ALMOST HALF OF HIS CURRENT 33 STAKE IN THE COMPANY ESTIMATING THE SALE WOULD BRING HIM AS MUCH AS 47 MILLION THE STOCK CLOSED YESTERDAY AT 2350 THE SALE HAS NOT YET BEGUN MR RUGER IS WIDELY CONSIDERED BY GUN OWNERS AND THE GUN PRESS TO BE A DESIGN AND MARKETING GENIUS ATTORNEYS AND FIREARMS EXPERTS FAMILIAR WITH THE QUIET CONTROVERSY OVER THE OLD MODEL SAY IT HAS REMAINED RUGER'S SECRET LARGELY BECAUSE FIREARMS HAVE ALWAYS BEEN EXEMPT FROM PRODUCTSAFETY REGULATION AND THUS NO AGENCY WAS EMPOWERED TO INVESTIGATE ACCIDENT REPORTS THE FEDERAL BUREAU OF ALCOHOL TOBACCO AND FIREARMS HAS NO AUTHORITY OVER FIREARM DEFECTS AND DESIGN THE CONSUMER PRODUCT SAFETY COMMISSION HAS NONE EITHER IT CAN ORDER THE RECALL OF TOY GUNS JUST NOT THE REAL THING IT'S NOT THE DEFECT THAT'S THE SKELETON IN THE CLOSET SAYS EDWARD J HEIDEN A FORMER OFFICIAL OF THE COMMISSION AND NOW A PRODUCTSAFETY CONSULTANT WHO HAS TESTIFIED AGAINST THE COMPANY IT'S THE WAY IT'S BEEN HANDLED BY RUGER BUT RUGER'S BEHAVIOR OTHERS CAUTION CAN ONLY BE EVALUATED IN THE CONTEXT OF AMERICA'S GUN CULTURE WHICH REVERES THE GUNS OF THE AMERICAN FRONTIER THE OLD MODEL REVOLVERS WERE DELIBERATE VARIATIONS OF THE COLT 1873 PEACEMAKER THE CLASSIC COWBOY SIXSHOOTER SOMETIMES DUBBED THE GUN THAT WON THE WEST IN DEPOSITIONS AND COURT TESTIMONY MR RUGER SAID HE CHOSE NOT TO CORRECT THE MOST PROBLEMATIC ASPECTS OF THE OLDFASHIONED DESIGN IN ORDER TO PRESERVE ITS AUTHENTIC LOOK AN APPELLATE COURT IN KENTUCKY CHIDED THAT SUCH A RATIONALE COULD ALSO BE USED TO JUSTIFY THE REINTRODUCTION OF A HYDROGENFILLED ZEPPELIN EXACTLY LIKE THE HINDENBURG YET MANY FANS OF RUGER'S REVOLVERS REMAIN LOYAL TO THE COMPANY EVEN AFTER EXPERIENCING THEIR OWN ACCIDENTAL FIRINGS SOME OF WHICH RESULTED IN HORRENDOUS INJURIES SEVERAL STILLSATISFIED CUSTOMERS REPORTED TWO ACCIDENTS INVOLVING THEIR OLD MODEL GUNS ONE REPORTED THREE WE ARE VERY FORGIVING WITH FIREARMS MANUFACTURERS WHEREAS WE MIGHT BE FAR LESS FORGIVING OF GENERAL MOTORS FOR HANGING GAS TANKS OUTSIDE THE FRAMES OF THEIR PICKUPS SAYS HAROLD SMITH AN ATTORNEY IN COEUR D'ALENE IDAHO WHO REPRESENTED A PLAINTIFF IN AN OLD MODEL CASE IN 1984 WE WILL FORGIVE BILL RUGER BECAUSE BILL RUGER WAS BUILDING SOMETHING TRADITIONALLY AMERICAN HE WAS COPYING SAM COLT'S DESIGN RUGER'S OLD MODEL GUNS HAVE FALLEN FROM DASHBOARDS SHELVES NIGHT TABLES EVEN A WALL DISPLAY ACCORDING TO RUGER'S RECORDS AND VICTIMS' DEPOSITIONS THEY HAVE STRUCK FLOORS ROCKS AND IN ONE INSTANCE A TOILET SEAT THEY DISCHARGED ON CONTACT FIRING BULLETS INTO BYSTANDERS HUNTERS CHILDREN AND WIVES THE ACCIDENTS ALL HAVE THE SAME QUALITY THIS KIND OF SHOCKING UNEXPECTED SUDDENNESS THIS DISASTROUS EFFECT IN A SEEMINGLY INNOCENT SCENE SAYS WILLIAM BLISS PRESIDENT OF HUMAN FACTORS INC OREGON WIS HIRED BY PLAINTIFFS' ATTORNEYS IN 15 CASES TO EVALUATE THE INSTRUCTION BOOKS THAT ACCOMPANIED THE GUNS IT WOULD BE LIKE ALL OF A SUDDEN BEING ATTACKED BY A KITCHEN KNIFE MS KAYE NOW 39 GOT SHOT JUST BEFORE A TRIP TO A CONVENIENCE STORE THE DRIVER KNOCKED HIS OLD MODEL RUGER OFF THE PASSENGER SEAT AS HE CLEARED A PLACE FOR HER TO SIT THERE WAS A BRIGHT FLASH REMARKABLY SHE FELT LITTLE PAIN EVEN THOUGH A 357 MAGNUM OLD MODEL REVOLVER HAD DISCHARGED A BULLET UPWARD INTO HER VAGINA DESTROYING HER UTERUS MACERATING A DOZEN FEET OF INTESTINE AND SEVERELY DAMAGING A CRUCIAL TRANSABDOMINAL VEIN SHE WALKED A FEW STEPS THEN STRETCHED OUT ON THE GROUND SHE MANAGED TO STAY CALM UNTIL SOMEONE MENTIONED THE CALIBER THEN I GOT SCARED SHE RECALLS BECAUSE I'D BEEN RAISED WITH GUNS I KNEW THE POWER OF A 357 DURING EMERGENCY SURGERY SHE LOST VITAL SIGNS THREE TIMES RUGER PAID HER 500000 IN A PRETRIAL SETTLEMENT RUGER STOPPED DISCLOSING SETTLEMENT AMOUNTS TO THE SEC IN 1984 AS A GENERAL RULE THE SEC DOESN'T REQUIRE SUCH DISCLOSURE ON NOV 11 1983 CARLTON NORRELL ON A WEEKLONG HUNTING TRIP IN COLORADO BEGAN CHANGING A TIRE WHEN A CLOSE FRIEND WILLIAM KERR ACCIDENTALLY DROPPED HIS 41 MAGNUM OLD MODEL REVOLVER ACCORDING TO MR KERR'S DEPOSITION THE BULLET STRUCK MR NORRELL IN THE TEMPLE AND BORED IN A STRAIGHT LINE ACROSS THE FRONT OF HIS SKULL WHERE ARE MY GLASSES MR NORRELL ASKED AFTER HE SLUMPED AGAINST HIS FRIEND'S LEG I DON'T KNOW WHERE YOUR GLASSES ARE BUT YOU WON'T NEED THEM MR KERR REPLIED THIS BULLET HAS JUST BLOWN BOTH YOUR EYES OUT MR NORRELL DIED EIGHT DAYS LATER RUGER SETTLED HIS CASE FOR AN UNDISCLOSED AMOUNT IN 1986 AN AIRPORT BAGGAGE HANDLER DIED WHEN HE MOVED A DUFFEL BAG CONTAINING A LOADED RUGER AND GOT SHOT IN THE HEAD ONE YOUNG MAN WAS KILLED ON THE FIRST DAY OF HIS HONEYMOON AT A REMOTE CABIN IN ALASKA TEN PEOPLE NAMED SMITH GOT SHOT TWO HUNTERS WERE WOUNDED WHEN THE ANTLERS OF THE ANIMALS THEY HAD JUST KILLED BUMPED AGAINST THEIR HOLSTERED RUGERS THESE ACCIDENTS ARE GOING TO KEEP ON HAPPENING SAYS MIKE THOMAS A LUBBOCK TEXAS ATTORNEY WHO REPRESENTED THE VICTIM OF AN AUGUST 1990 ACCIDENT IT'S JUST THE NATURE OF THE BEAST THERE ARE A LOT OF GUNS OUT THERE MORE THAN 15 MILLION OLD MODEL REVOLVERS REMAIN IN THE HANDS OF CONSUMERS NEARLY 14 MILLION HAVE NEVER BEEN RETURNED FOR MODIFICATION IF THE GUNS WERE CARS THE DEBATE OVER THEIR SAFETY WOULD HAVE ENDED LONG AGO CARS WEAR OUT THE USEFUL LIFE OF A GUN HOWEVER CAN EXTEND FOR A HUNDRED YEARSAS WINCHESTER AMMUNITION CO ACKNOWLEDGED IN 1990 WHEN IT RECALLED ITS MODEL 100 RIFLES MADE FROM 1960 TO 1973 TO FIX A DEFECTIVE FIRING PIN RUGER SOLD 84 OF ITS OLD MODEL GUNS DURING THE SAME PERIOD THE FACT THAT THE RIFLES HAD BEEN OUT OF PRODUCTION FOR 17 YEARS DIDN'T MATTER SAYS ART AMBROSI WINCHESTER'S RECALL COORDINATOR WE KNOW THAT THE LIFESPAN OF GUNS IS RELATIVELY LONG AND WE STILL BELIEVED A LOT OF THESE GUNS WOULD BE IN CONSUMERS' HANDS THE COMPANY ORDERED THE RECALL AFTER LEARNING OF A SINGLE NONFATAL INJURY RUGER PRODUCED ITS FIRST OLD MODEL REVOLVERS IN 1953 INITIALLY SELLING THEM FOR AS LITTLE AS 5750 EACH TO CAPITALIZE ON THE NATION'S THENSURGING INTEREST IN THE WILD WEST IN 1952 ALONE HOLLYWOOD RELEASED 40 FEATURELENGTH WESTERNS THE FIRST TV WESTERNS SUCH AS HOPALONG CASSIDY ROY ROGERS AND THE LONE RANGER HAD BY THEN BECOME HUGELY POPULAR AND DOZENS MORE WOULD SOON APPEAR RUGER OFFERED A CLOSE COPY OF THE GUN THE HEROES AND VILLAINS CARRIED BUT AT AN AFFORDABLE PRICE AND WITH CERTAIN UPDATES SUCH AS STRONGER INTERNAL SPRINGS AND BETTER SIGHTS THE GUNS CAME IN THREE BASIC MODELS THE SINGLESIX BLACKHAWK AND BEARCAT RUGER ADVERTISED THE BLACKHAWK AS A FULLY PERFECTED FIREARM BUT GUNS EMBODYING THIS SINGLEACTION DESIGN WERE ANYTHING BUT PERFECT IF YOU DROP ONE AND IT DOESN'T GO OFF YOU'RE LUCKY SAYS ROBERT J BARNES A FORMER FIREARMS ENFORCEMENT OFFICER WITH THE BUREAU OF ALCOHOL TOBACCO AND FIREARMS PEOPLE BUY THESE GUNS BASED ON THEIR TV EDUCATION WHEN YOU DESIGN OR PUT A REPRODUCTION OF A COLT ON THE MARKET IF IT FALLS INTO THE HANDS OF AN INEXPERIENCED SHOOTER AND I WOULD SAY THAT THAT WEAPON IN PARTICULAR APPEALS TO THE INEXPERIENCED SHOOTER THEN YOU HAVE A PROBLEM THE HAZARDS WERE WELL KNOWN EVEN IN THE LATE 19TH CENTURY SO MUCH SO THAT IN 1894 IVER JOHNSON A FIREARMS MANUFACTURER DUMPED THE SINGLEACTION DESIGN ALTOGETHER AND INTRODUCED A REVOLVER SPECIFICALLY BUILT TO AVERT UNPLANNED FIRINGSAND SOLD EIGHT TIMES AS MANY GUNS AS COLT SOLD OF ITS PEACEMAKER IVER JOHNSON'S ADS DECLARED A REVOLVER THAT CAN BE DISCHARGED IN ANY OTHER WAY THAN BY PULLING THE TRIGGER IS A MECHANICAL ABSURDITY AS WELL AS A CONSTANT DANGER WITH A SINGLEACTION REVOLVER THE SHOOTER MUST FIRST COCK THE GUN BY PULLING BACK THE HAMMER WITH HIS THUMB UNLIKE IN A MODERN DOUBLEACTION REVOLVER WHERE ONE PULL OF THE TRIGGER BOTH COCKS THE GUN AND FIRES IT AS THE HAMMER OF A RUGER SINGLEACTION REVOLVER TRAVELS BACKWARD NOTCHES IN ITS BASE MAKE A DISTINCTIVE RATCHET SOUND FAMILIAR TO ANY FAN OF WESTERNS RUGER CALLED THE FIRST NOTCH THE SAFETY NOTCH THE SECOND THE LOADING NOTCH THE LAST IS THE FULLCOCK POSITION CONTEMPORARY COMMON WISDOM HOLDS THAT AN UNCOCKED GUN IS A SAFE GUN CARRYING AN OLD MODEL RUGER FULLY LOADED AND UNCOCKED HOWEVER CAN BE DEADLY THE HAMMER RESTS AGAINST ONE END OF THE FIRING PIN THE OTHER END OF THE PIN TOUCHES THE IGNITER OR PRIMER ON A LIVE CARTRIDGE IN THIS CONDITION MR RUGER TESTIFIED EVEN A NEGLIGIBLE BLOW TO THE HAMMER WILL FIRE THE GUN IN A DEPOSITION HE LIKENED CARRYING THE GUN THIS WAY TO CARRYING A HAND GRENADE THE SAFETY NOTCH PROVIDES LITTLE ADDED PROTECTION EVEN WITH THE HAMMER FIRMLY ENGAGED IN THE SAFETY NOTCH RUGER'S OLD MODEL REVOLVERS CAN STILL BE FIRED BY A HARD PULL ON THE TRIGGER OR BY DROPPING THE GUN ON ITS HAMMER THE LATTER WAS A WELLKNOWN CHARACTERISTIC MR RUGER SAID IN A 1982 DEPOSITION THERE WAS THE UNDERSTANDING FROM 1873 FORWARD THAT A SUFFICIENT DROP WOULD CAUSE THE HAMMER TO DEFEAT THE SAFETY NOTCH YET RUGER NEVER CONDUCTED PREPRODUCTION TESTS TO SEE HOW RESISTANT TO FAILURE THE NOTCH ACTUALLY WAS ACCORDING TO MR RUGER'S DEPOSITIONS MOREOVER THE COMPANY KEPT THE SAFETY GAP BETWEEN THE HAMMER AND FIRING PIN AS SMALL AS POSSIBLE ROUGHLY THE WIDTH OF A PAPERCLIP TO PRESERVE ITS FRONTIER APPEAL THAT'S JUST WHAT WAS WANTED FROM AN APPEARANCE POINT OF VIEW MR RUGER SAID IN A DEPOSITION TO HAVE THE HAMMER POSITIONED FARTHER BACK HE SAID WOULD HAVE BEEN OBJECTIONABLE HE EXPECTED CUSTOMERS TO KNOW THEY SHOULD LOAD A SINGLEACTION REVOLVER WITH ONLY FIVE BULLETS AND KEEP THE EMPTY SIXTH CHAMBER UNDER THE HAMMER IN HIS RECENT LETTER HE WROTE OF COURSE THE OLD MODEL REVOLVERS ARE SAFE TO USE ALL THAT IS REQUIRED IS THAT MODICUM OF KNOWLEDGE ON THE PART OF THE USER NOT TO CARRY THE HAMMER RESTING DOWN ON A LOADED CARTRIDGE ANY SHOOTER SHOULD KNOW THIS AND AS YOU KNOW WE'VE SPECIFICALLY WARNED AGAINST THIS PRACTICE IN OUR INSTRUCTION MANUALS SINCE 1953 BUT AS THE GUNS CHANGED HANDS THE INSTRUCTION BOOKLETS OFTEN GOT LOST MOREOVER SURVIVORS SAY THE PRINCIPLE OF CARRYING FIVE IS FAR FROM OBVIOUS ON SEPT 23 1983 NICK KOOZMIN LOOKED DOWN TO SEE SPURTS OF ARTERIAL BLOOD AS THICK AS HIS THUMB BURSTING FROM THE REMAINS OF HIS KNEE HE CONCEDES HE WAS CARRYING HIS 357 MAGNUM OLD MODEL RUGER FULLY LOADED BUT ASKS WHO WOULD THINK THAT ON A SIXSHOOTER YOU WOULD ONLY USE FIVE BULLETS GENE LEE THE KENTUCKY BOY SHOT WHILE GATHERING WORMS SURVIVED A WOUND TO HIS HEART WHEN THE OLD MODEL RUGER HE HAD BORROWED FROM HIS UNCLE FELL FROM ITS HOLSTER IT'S GOT SIX CHAMBERS IT TAKES SIX BULLETS HE SAYS IT STILL SHOULDN'T GO OFF WHEN IT HITS THE GROUND NO GUN SHOULD RUGER SETTLED BOTH CASES AS ACCIDENT REPORTS RECEIVED BY THE COMPANY ACCUMULATED CARRY FIVE BECAME A KIND OF MANTRA IN RUGER'S DEFENSE STRATEGY FROM 1981 THROUGH 1983 RUGER BROADCAST PUBLICSERVICE TV ADS ON HOW TO HANDLE SINGLEACTION GUNS OF ANY KIND WARNING GUN OWNERS ALWAYS TO KEEP ONE CHAMBER EMPTY IN MAGAZINE ADVERTISEMENTS INCLUDING ONE TITLED THE EMPTY CHAMBER RUGER SHIFTED THE BLAME FOR ACCIDENTS TO CONSUMERS WHILE AT THE SAME TIME NEVER DISCLOSING THE SWELLING ACCIDENT RATE OR EVEN USING THE WORDS INJURY AND DEATH ONE AD DECLARED NOW WITH THE GROWTH OF CONSUMERISM PEOPLE WHO SHOULD KNOW BETTER ARE ACTING AS THOUGH GUNS LIKE ELECTRIC TOASTERS ARE MEANT TO BE FOOLPROOF THERE IS NO SUCH THING AS A FOOLPROOF GUN AT TIMES HOWEVER THE COMPANY ITSELF SEEMED OF TWO MINDS ON THE CARRY FIVE PRINCIPLE INSTRUCTION BOOKS THAT ACCOMPANIED OLD MODEL GUNS PRODUCED BEFORE 1972 SAID THAT UNDER NORMAL CIRCUMSTANCES THE GUN COULD BE CARRIED SAFELY EVEN IF FULLY LOADED PROVIDED THE SAFETY NOTCH WAS ENGAGED BUT THAT MANY PEOPLE PREFER TO LOAD ONLY FIVE ROUNDS IN 1972 THIS SPECIAL NOTE BECAME A SAFETY NOTE WHICH SAID LOAD ONLY FIVE CHAMBERS PLACING THE EMPTY CHAMBER IN ALIGNMENT WITH THE FIRING PIN BUT RUGER'S SERVICE MANAGER THE LATE ROBERT DEARDEN TESTIFIED IN A 1975 KENTUCKY TRIAL IF I WAS IN THE FIELD I WOULD CARRY IT WITH SIX ROUNDS IN IT I PERSONALLY MR RUGER SAID IN A 1985 DEPOSITION THAT HE KNEW SOME PEOPLE WOULD CARRY THE GUN WITH SIX BULLETS IN A 1983 DEPOSITION HE ALSO SAID HE KNEW SOME CUSTOMERS WOULD NOW AND THEN DROP THEIR GUNS HE HIMSELF HE ADDED HAD DROPPED GUNS SOME TIME OR ANOTHER IN A 1990 DEPOSITION HE DENIED DROPPING A GUN BUT CONCEDED THAT ON TWO OCCASIONS HE HAD FIRED GUNS BY ACCIDENT THE COMPANY MADE AT LEAST THREE ATTEMPTS AT MAKING THE OLD MODEL GUNS LESS PRONE TO ACCIDENTAL DISCHARGE ALL THE WHILE DENYING THAT ANYTHING NEEDED CORRECTING MR RUGER TESTIFIED IN 1974 THAT WHILE DESIGNING THE FIRST OLD MODEL REVOLVER HE CONSIDERED INSTALLING AN INERTIA FIRING PIN USED IN OTHER GUNS TO KEEP THE PIN OFF THE CARTRIDGE UNTIL THE TRIGGER WAS PULLED AFTER A FEW HOURS OF EXPERIMENTATION HE DECIDED THE IDEA WOULDN'T WORK IN 1965 HE ASSIGNED A RECENTLY HIRED FIREARMS DESIGNER HENRY INTO TO DEVELOP A SAFETY DEVICE BUT WITHIN THREE MONTHS TOOK HIM OFF THE PROJECT AND ASSIGNED HIM TO BEGIN WORK ON A NEW DOUBLEACTION REVOLVER MR INTO'S IDEAS FOR THE SAFETY DIDN'T SEEM PROMISING MR RUGER SAID IN A 1982 DEPOSITION AT THE SAME TIME HE SAID THERE WAS A TREMENDOUS PRESSURE ON US FROM THE SALES SIDE TO DEVELOP A DOUBLEACTION GUN SO IT WAS A NATURAL DEPLOYMENT OF TALENT TO LET HIM GO TO THAT RUGER'S DOUBLEACTION REVOLVER INTRODUCED IN 1971 CONTAINED A SAFETY MECHANISM DESIGNED TO AVERT ACCIDENTAL FIRINGS THE COMPANY CONTINUED MAKING AND SELLING ITS OLD MODEL GUNS A DIFFERENT KIND OF PRESSURE SOON FORCED THE COMPANY'S ATTENTION BACK TO THE KIND OF DEVICE MR INTO HAD HOPED TO DEVELOP FOR THE SINGLEACTION GUNS FEDERAL REGULATIONS BASED ON THE GUN CONTROL ACT OF 1968 AND ADMINISTERED BY THE TREASURY DEPARTMENT STATED THAT FOREIGNMADE HANDGUNS COULD BE IMPORTED ONLY AFTER PASSING A DROP TEST TO DETERMINE WHETHER THEY WOULD FIRE IF DROPPED RUGER WORRIED THAT THE SAME STANDARD WOULD SOON BE APPLIED TO DOMESTIC GUNS AND CONDUCTED ITS OWN TESTS IN 1969 ACCORDING TO MR DEARDEN THE FORMER SERVICE MANAGER WE KNEW BEFORE WE STARTED THE TEST HE SAID IN A DEPOSITION THAT NO SINGLEACTION GUN WOULD BE ABLE TO STAND THAT TYPE OF PUNISHMENT THE GUN FIRED ON THE SECOND TRY HE SAID MR RUGER ASSIGNED DESIGNER LARRY LARSON TO FIND A WAY TO PASS THE TEST WE WERE NOT TRYING TO PUT A SAFETY ON THE GUN MR LARSON INSISTED IN A DEPOSITION THIS WAS NOT THE OBJECT AT ALL RATHER HE SAID WE WERE TRYING TO FORESEE SOME POSSIBLE LEGISLATION DEALING WITH DROPPING OF A REVOLVER AND HAVING IT DISCHARGE FROM A GIVEN HEIGHT ADDING ANOTHER SAFETY HE ARGUED WOULD DEFEAT THE WHOLE ESTHETICS OF THE GUN'S DESIGN CONGRESS NEVER EXTENDED THE DROP TEST TO DOMESTIC GUNS NONETHELESS MR LARSON DID INDEED DESIGN AN EFFECTIVE SAFETY MECHANISM ONE STRIKINGLY SIMILAR TO THAT INTRODUCED MORE THAN 75 YEARS BEFORE BY IVER JOHNSON RUGER HALTED OLD MODEL PRODUCTION AT THE END OF 1972 AND IN JANUARY 1973 INTRODUCED A LINE OF NEW MODEL SINGLEACTION REVOLVERS WHICH INCORPORATED THE MECHANISM BUT OTHERWISE RETAINED THE WILD WEST LOOK LATER THAT YEAR ONE OF THE COMPANY'S OWN EXPERT WITNESSES ROBERT HILLBERG OF CHESHIRE CONN CITED THE NEW MODEL REVOLVERS AS PROOF THAT HAZARDS ASSOCIATED WITH THE OLD GUNS SHOULD HAVE NEVER EXISTED IN THE FIRST PLACE RUGER HAD ASKED MR HILLBERG TO ANALYZE THE OLD MODEL GUNS FROM A PLAINTIFF'S PERSPECTIVE HIS REVIEW OF THE OLD MODEL LINE WAS SCATHING HE WROTE THIS ARCHAIC DESIGN AT BEST CAN BE DESCRIBED AS AN ACCIDENT WAITING TO HAPPEN THE 15 MILLION OLD MODEL REVOLVERS HOWEVER WERE NOW IN THE HANDS OF SHOOTERS THE FIRST ACCIDENT RECORDED BY RUGER OCCURRED IN 1956 THE FIRST NEGATIVE JURY VERDICT FOR 15000 WAS REACHED IN 1964 IN 1976 AN ALASKA COURT SLAMMED THE COMPANY WITH A 29 MILLION PUNITIVEDAMAGES AWARD THE STATE SUPREME COURT EVENTUALLY REDUCED IT TO 500000 BUT UPHELD THE VERDICT CITING TRIAL EVIDENCE THAT INDICATED THAT TOP OFFICIALS AT RUGER KNEW THAT THE SAFETY AND LOADING NOTCHES OF THEIR SINGLEACTION REVOLVER PRESENTED A DANGER OF ACCIDENTAL DISCHARGE FOR RUGER SUDDENLY THE STAKES HAD GOTTEN A LOT HIGHER IN 1979 IT BEGAN SETTING ASIDE MONEY TO PAY FOR SETTLEMENTS AND JUDGMENTS AN ACCRUAL FUND THAT AS OF LAST YEAR TOTALED 16 MILLION FAR FROM RECALLING THE GUNS THE COMPANY DUG IN AND INTENSIFIED ITS RESISTANCE IN 1980 IT HIRED A CHICAGO LAW FIRM WILDMAN HARROLD ALLEN & DIXON WHICH REPRESENTS MANY DOMESTIC GUN MANUFACTURERS TO COORDINATE ITS DEFENSE ACROSS THE COUNTRY THE FIRM DEPLOYED MR DORR A PARTNER TO THE TASK RUGER'S DEFENSE BECAME A FULLTIME ENDEAVOR FOR MR DORR IN 1981 IN AN SEC FILING THE COMPANY DISCLOSED IT WAS THE TARGET OF 60 SUITS VIRTUALLY ALL ASSOCIATED WITH ITS OLD MODEL SINGLEACTION REVOLVERS A MARCH 1990 FILING CAPTURED THE BROAD SWEEP OF RUGER'S TROUBLES THE FORM 8 DISCLOSURE FILED BY RUGER AS AN AMENDMENT TO ITS 1988 ANNUAL 10K REPORT CONTAINED 66 PAGES OF ONEPARAGRAPH DESCRIPTIONS OF LAWSUITS AND LIST AFTER LIST OF SETTLEMENTS CONNECTED TO OLD MODEL LITIGATION DATING BACK TO 1982 MR DORR CONTENDS THE VOLUME OF SUITS AND SETTLEMENTS PRESENTS A MISLEADING PICTURE IF YOU'RE GOING BACK TO THE 1970S THIS WAS SOMETHING THAT VIRTUALLY ANY INDUSTRY OR COMPANY YOU WANTED TO LOOK AT FOUND DEVELOPING ON THEM HE SAYS RUGER SETTLES MOST CASES HE SAYS BECAUSE THAT IS OFTEN THE MOST COSTEFFECTIVE RESOLUTION WHERE CASES HAVE GONE ALL THE WAY TO A FINAL COURT DECISION HE ADDS RUGER HAS WON MOST BUT ONLY 17 CASES HAVE GONE THAT FAR OF WHICH RUGER WON 12 SOME AFTER APPEALING LOWER COURT VERDICTS AGAINST THE COMPANY MANY OF THE LAWSUITS MR DORR CONTENDS WERE BROUGHT BY A SMALL BAND OF OPPORTUNISTIC ATTORNEYS WHO MADE A CAREER OF PURSUING RUGER INDEED OLD MODEL LITIGATION BECAME A MINOR INDUSTRY ATTORNEYS AND EXPERT WITNESSES ON BOTH SIDES HANDLED DOZENS OF OLD MODEL CASES EACH STANTON BERG A MINNEAPOLIS FIREARMS EXAMINER SAYS PLAINTIFFS HIRED HIM IN 98 CASES THE TOTAL HE SAYS IS EVIDENCE NOT OF A PERSONAL VENDETTA BUT OF THE HIGH RATE OF OLD MODEL ACCIDENTS I HAVE NEVER HAD A SMITH & WESSON DROP CASE HE SAYS SMITH & WESSON CORP MADE SINGLEACTION REVOLVERS IN THE LATE 19TH CENTURY THE GUNS WERE EQUIPPED WITH A REBOUNDING HAMMER THAT AUTOMATICALLY KEPT THE HAMMER OFF THE FIRING PIN THE COMPANY MADE DOUBLEACTION REVOLVERS WITH SOPHISTICATED SAFETY DEVICES FROM THE EARLY 1900S ONWARD GEORGE COLCLOUGH A SMITH & WESSON VICE PRESIDENT SAYS THE COMPANY DOESN'T KEEP A TALLY OF ACCIDENTAL FIRINGS INVOLVING ITS GUNS WE DON'T HAVE ANY STATISTICS HE SAYS BECAUSE IT DOESN'T HAPPEN MR DORR COUNTERS THAT SMITH & WESSON'S EARLY SINGLEACTION REVOLVERS COULD ALSO BE FIRED FROM A BLOW TO THE HAMMER AND THAT ITS DOUBLEACTION GUNS SIMPLY CAN'T BE COMPARED TO RUGER'S OLD MODEL REVOLVERS YOU'RE TALKING ABOUT AN ENTIRELY DIFFERENT MECHANISM YOU'RE TRYING TO COMPARE APPLES AND ORANGES IN 1982 RUGER CAME AS CLOSE AS IT EVER WOULD TO RECALLING ITS OLD MODEL GUNS IT OFFERED TO RETROFIT THEM WITH A DEVICE SIMILAR TO THE ONE INSTALLED IN ITS NEW MODEL GUNS AT NO CHARGE EVEN THOUGH THE RETROFIT ELIMINATED THE DROPPING HAZARD RUGER INSISTED THE PROGRAM WAS BY NO MEANS A RECALL A RECALL WILLIAM RUGER SAID IN A 1985 DEPOSITION REALLY IS OSTENSIBLY TO CORRECT A DEFECT AND WE WEREN'T DOING THAT RATHER HE SAID HE SAW IT AS A MEANS OF ESTABLISHING AN IMMENSE BOND OF GOODWILL WITH RUGER'S CUSTOMERS IN FACT HE SAID IN A 1983 DEPOSITION HE HAD ORIGINALLY PLANNED TO SELL THE RETROFIT AS AN AFTERMARKET ACCESSORY THE OFFER EXCLUDED 200000 COMPACT OLD MODEL GUNS CALLED BEARCATS WHICH WERE TOO SMALL TO ACCOMMODATE THE MODIFICATION RUGER INCLUDED THE BEARCATS IN 1993 RUGER PROMISED TO RETURN THE ORIGINAL PARTS TO GUN OWNERS ONCE THE RETROFIT HAD BEEN ACCOMPLISHED IN BIG BOLD PRINT ITS ADS FOR THE PROGRAM SAID RUGER WANTS TO GIVE YOU AND INSTALL FREE A UNIQUE NEW IMPROVEMENT IN FAR SMALLER PRINT ROUGHLY THE SIZE OF THE TYPE ON THIS PAGE RUGER ASSURED OWNERS THE CONVERSION WOULD NOT AFFECT THE APPEARANCE OF THE GUN AND NOTED THE CHANGE WOULD HELP PREVENT ACCIDENTAL DISCHARGES CAUSED BY A BLOW TO THE HAMMER IF THE USER HAS FAILED TO TAKE THE BASIC SAFETY PRECAUTION OF KEEPING AN EMPTY CHAMBER UNDER THE HAMMER MEANWHILE RUGER'S 1982 10K REPORT TO THE SEC DISCLOSED THAT IT FACED 50 PENDING LAWSUITS ALMOST ALL INVOLVING OLD MODEL REVOLVERS AND HAD SETTLED 20 OTHER OLD MODEL CLAIMS FOR 26 MILLION EQUIVALENT TO 23 OF ITS NET INCOME FOR THE YEAR THE SETTLEMENTS INCLUDED 500000 PAID TO THE HUSBAND OF MARY MCKENNA A CUSTOMER AT A MILWAUKEE SERVICE STATION SHOT DEAD WHEN A RUGER IN A BRIEFCASE FELL FROM A REAR COUNTER DISCHARGED AND FIRED A BULLET INTO HER HEART THROUGH HER BACK THE WHOLE AMBIENCE OF THE AD WAS NOT THAT IT WAS A SAFETY THING SAYS MR HEIDEN THE SAFETY CONSULTANT BUT TO MAKE AN IMPROVEMENT TO AN ALREADY WONDERFUL GUN MR RUGER HIMSELF SAID IN A DEPOSITION THAT PEOPLE READING THE AD WOULD PERCEIVE AN INCIDENTAL SAFETY BENEFIT BUT WOULDN'T HAVE THE IMPRESSION THAT THERE WAS A SAFETY PROBLEM RUGER'S RETROFIT OFFER NONETHELESS BROUGHT THOUSANDS OF RESPONSES INCLUDING MANY LETTERS REPORTING SERIOUS ACCIDENTS THE COMPANY HADN'T KNOWN ABOUT ONE WOMAN IN A LETTER DISCLOSED IN A DEPOSITION DESCRIBED THE ACCIDENTS AND HEARTACHES HER HUSBAND'S OLD MODEL REVOLVER HAD CAUSED HER FAMILY ON NOVEMBER 20TH 1981 SHE WROTE MY 12YEAROLD SON WAS SHOWING IT TO TWO FRIENDS WHEN IT WAS DROPPED ON THE COFFEE TABLE AND DISCHARGED KILLING MY ONLY CHILD ON APRIL 12TH 1982 IT WAS AGAIN DROPPED BY MY HUSBAND AND DISCHARGED WOUNDING HIM IN THE UPPER RIGHT LEG THE WOMAN IDENTIFIED IN COURT RECORDS ONLY AS MRS HARRELL CALLED THE RETROFIT OFFER SMALL COMPENSATION CONSIDERING THE FACT THAT IT WAS MADE UNSAFE AND HAS COST THE LIFE OF MY SON AND WOUNDED MY HUSBAND ACCIDENT VICTIMS AND THEIR ATTORNEYS SAY RUGER NEEDS TO DO MORE TO GET ITS GUNS BACK FOR REPAIR PERHAPS EVEN OFFER CASH BOUNTIES OR AN EXCHANGE OF NEW MODEL GUNS FOR OLD RUGER HAS ACKNOWLEDGED DEFECTS IN THREE OTHER WEAPONS AND RECALLED THEM RUGER'S CRITICS SAY THE COMPANY SHOULD DECLARE A FORMAL EMPHATIC RECALL ALONG THE LINES OF THE 1990 WINCHESTER AD CAMPAIGN WHICH WARNED DO NOT SHOOT YOUR WINCHESTER MODEL 100 RIFLE OR CARBINE THE AD ADVISED OWNERS TO REMOVE THE FIRING PIN FAILURE TO DO SO WILL EXPOSE THE SHOOTER AND BYSTANDER TO POSSIBLE RISK OF PHYSICAL INJURY OR DEATH YOU HAVE TO GIVE PEOPLE THE GORY DETAILS IF YOU WANT TO GET THEM TO RESPOND SAYS MARC SCHOEM DIRECTOR OF THE CONSUMER PRODUCT SAFETY COMMISSION'S DIVISION OF CORRECTIVE ACTIONS RUGER'S RETROFIT ADS MADE NO MENTION OF THE HUNDREDS OF CASUALTIES IN THE COMPANY'S ACCIDENT LOG THE GENERAL ACCOUNTING OFFICE HAD A MORE FUNDAMENTAL PROPOSAL IN A 1991 REPORT ON ACCIDENTAL GUNSHOT DEATHS IT RECOMMENDED THAT CONGRESS BRING REAL GUNS UNDER THE PURVIEW OF THE PRODUCTSAFETY COMMISSION THE COMMISSION'S FOUNDING LEGISLATION PASSED IN 1972 EXCLUDED FIREARMS TO AVOID A POTENTIALLY CRIPPLING BATTLE WITH THE GUN LOBBY ITS AUTHORS RECALL UNDER CURRENT PRODUCTSAFETY LAW ANY COMPANY SUBJECT TO THE COMMISSION'S AUTHORITY MUST REPORT A POSSIBLE DEFECT WHEN IT EXPERIENCES THREE SETTLEMENTS INVOLVING A GIVEN PRODUCT IN A TWOYEAR PERIOD BEGINNING WITH 199192 IN 1991 ALONE RUGER SETTLED 10 OLD MODEL CASES THE COST OF THESE SETTLEMENTS AS WELL AS OF LEGAL FEES AND COSTS ASSOCIATED WITH OTHER PRODUCTLIABILITY CLAIMS TOTALED 4 MILLION IN 1991 IN 1990 RUGER'S PRODUCTLIABILITY SETTLEMENTS AND DEFENSE COSTS TOTALED 63 MILLION IN 1992 35 MILLION MR DORR DECLINES TO BREAK OUT THE COSTS ATTRIBUTED TO OLD MODEL CASES ALONE RUGER PAID THE MONEY FROM ITS ACCRUAL FUND SO FAR RUGER'S RETROFIT CAMPAIGN HAS RESULTED IN THE CONVERSION OF 130573 REVOLVERS ACCORDING TO AN INHOUSE MEMO DATED JAN 8 1993 RUGER'S CRITICS SEE THE RESPONSE AS EVIDENCE THE RETROFIT CAMPAIGN FAILED TO CONVEY THE DANGERS ASSOCIATED WITH OLD MODEL REVOLVERS RUGER IN A MOTION FILED IN A NOWPENDING PHILADELPHIA SUIT CALLED THE RESPONSE OVERWHELMING IN HIS LETTER WILLIAM RUGER DESCRIBED THE RETROFIT PROGRAM AND THE COMPANY'S GUNSAFETY ADVERTISING AS THE MOST EXTENSIVE EVER IN THE FIREARMS INDUSTRY HE WROTE ALL OF THIS HAS HAD THE NET EFFECT THAT ACCIDENTS ARE STEADILY DECREASING DRAMATICALLY AND OUR SINGLEACTION LITIGATION IS AT A 17YEAR LOW THE ACCIDENT RATE AND NUMBER OF LAWSUITS HAVE INDEED FALLEN YET THE GUNS CONTINUE TAKING A TOLL THE GUNS ARE PASSED DOWN THROUGH FAMILIES THEY ARE ADVERTISED AND SOLICITED IN GUN PUBLICATIONS AND ARE BOUGHT SOLD AND TRADED AT THE COUNTRY'S INNUMERABLE WEEKEND GUN SHOWS IF ANYTHING THEY HAVE INCREASED IN VALUE IN LETTERS REQUESTING THE RETROFIT LOYAL OLD MODEL OWNERS DESCRIBED THEIR OWN MISHAPS AS FOOTNOTES TO AN OTHERWISE SATISFYING EXPERIENCE PS WROTE PHILLIP HABERMAN OF SACRAMENTO CALIF I HAVE ONE OF YOUR FINE GUNS THAT DID GO OFF IT THE BULLET WENT THROUGH MY LEG STOMACH AND ARM BILL MILLER OF HIGH POINT NC DESCRIBED HOW HIS OLD MODEL RUGER FELL BETWEEN MY FEET ON THE GROUND DISCHARGED SHOT OFF MY RIGHT TESTICLE AND LEFT AN EIGHT INCH GASH IN MY LEG ASIDE FROM THE PROBLEM I ENCOUNTERED I STILL FEEL THAT YOU MANUFACTURE TOP NOTCH QUALITY PRODUCTS CL KINNEY OF BENTON CITY WASH WROTE THAT HE STILL OWNED THE 357 MAGNUM BLACKHAWK THAT HAD ACCIDENTALLY DISCHARGED AND KILLED HIS OLDER BROTHER 15 YEARS BEFORE HE EXPLAINED HIS REASON FOR WANTING THE RETROFIT I WISH TO GIVE IT TO MY DAUGHTER SEE RELATED LETTERS LETTERS TO THE EDITOR THE GANG THAT COULDN'T SHOOT A RUGER WSJ JULY 23 1993 9306240050 YY93 MM07 9307220039 930628 A COMMON TOUCH DITTOHEADS' ALL OVER MAKE RUSH LIMBAUGH SUPERSTAR OF THE RIGHT SOME TUNE IN FOR THE HUMOR THE SERIOUS ONES THINK HE'S THE VOICE OF REASON PACKING THEM IN AT THE NRA BY ERIC MORGENTHALER STAFF REPORTER OF THE WALL STREET JOURNAL NASHVILLE TENN TO UNDERSTAND WHY A FORMER DISK JOCKEY NAMED RUSH LIMBAUGH HAS BECOME ONE OF THE HOTTEST POLITICAL VOICES IN MEDIA TODAY IT HELPS TO BEGIN OUT HERE IN AMERICA'S GRASS ROOTS WITH A SAMPLING OF DITTOHEADS AS MR LIMBAUGH CALLS FANS DO YOU WANT TO HEAR THE TRUTH DO YOU REALLY WANT TO HEAR THE TRUTH DEMANDS CAROLYN TURNER A PETITE WOMAN IN BLACK AS SHE STANDS IN THE ROAR OF A NATIONAL RIFLE ASSOCIATION RECEPTION IN A LOBBY OF THE OPRYLAND HOTEL BALANCING A GOLD EVENING PURSE AND A GLASS OF PINK WINE AND WEARING A VERY DEFIANT EXPRESSION A MAN NEARBY SPORTS A DAYGLO PINK LAPEL BADGE READING IT'S THE CRIMINAL STUPID WELL MRS TURNER CONTINUES HER EYES BLAZING THE REAL TRUTH IS WHAT YOU ARE GOING TO HEAR WITH RUSH LIMBAUGH THEN SHE AND HER HUSBAND SCOTT WHO HAVE TRAVELED FROM CUMMING GA WHERE SHE'S A BARBER HE'S AN ENGINEER AND BOTH ARE NRA MEMBERS CROWD INTO THE PRESIDENTIAL BALLROOM FOR A BANQUET AND SPEECH BY MR LIMBAUGH HIMSELF WHO HAS FLOWN DOWN FROM NEW YORK WHERE HIS RADIO AND TV SHOWS ORIGINATE I AM SO EXCITED I CAN HARDLY STAND IT SHE SAYS IT ISN'T ENOUGH TO SAY THAT RUSH LIMBAUGH IS A SUPERSTAR ALTHOUGH WITHIN HIS UNIVERSE HE CERTAINLY IS THAT THANKS TO LEGIONS OF LOYALISTS LIKE THE TURNERS HE PERHAPS IS BETTER UNDERSTOOD AS A CULTURAL PHENOMENON MR LIMBAUGH IS A 42YEAROLD CONSERVATIVE TALKSHOW HOST WHOSE SHARPTONGUED TAKE ON THE WORLD HAS MADE HIM IN LESS THAN FIVE YEARS OF SYNDICATION ONE OF THE MOST POPULAR AND CONTROVERSIAL PERSONALITIES IN THE HISTORY OF RADIO HE HAS A HUGELY BESTSELLING BOOK NO 1 THIS WEEK ON THE NEW YORK TIMES BESTSELLER LIST AFTER 41 WEEKS AND HIS SYNDICATED TV PROGRAM IS OFF TO A STRONG START HIS MONTHLY LIMBAUGH LETTER LAUNCHED IN OCTOBER HAS A PAID CIRCULATION OF ABOUT 300000 MR LIMBAUGH MARKED EARTH DAY ON HIS SHOW WITH A TAPE OF A CHAIN SAW CUTTING DOWN A TREE HE SPEAKS OF FEMINAZIS AND THE NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF LIBERAL COLORED PEOPLE HE CALLS THE CLINTON ADMINISTRATION AMERICA'S LATEST HOSTAGE CRISIS WITH THE COUNTRY ITSELF HELD HOSTAGE AND TERMS THE PRESIDENT'S POLICIES THE RAW DEAL HIS CALLERS OFTEN VOICE APPROVAL BY SAYING DITTO OR MEGADITTOS IF THEY REALLY APPROVE GIVING RISE TO THE TERM DITTOHEAD THE DITTOHEADS ALMOST AS MUCH AS MR LIMBAUGH HIMSELF ARE THE HEART OF THE PHENOMENON THEY CAN BE FOUND ACROSS THE FRUITED PLAIN AS MR LIMBAUGH CALLS AMERICA AND TENNESSEE SEEMS AS GOOD A PLACE AS ANY TO CHECK THEM OUT RUSH IS ONESIDED I GUARANTEE YOU BUT HE IS THE RIGHT SIDE SAYS JJ CHRISTMAN AN APPLIANCE REPAIRMAN IN ATHENS A LITTLE TOWN IN EAST TENNESSEE AS HE SIPS COFFEE IN THE CHEROKEE HARDWARE STORE WHERE THE LIMBAUGH SHOW IS PLAYING LIKE BACKGROUND MUSIC I'D VOTE FOR HIM FOR PRESIDENT JOE HUTTON WHO OWNS THE STORE NODS IN ASSENT HE WAS UP UNTIL 1 THAT MORNING WATCHING THE LIMBAUGH TV SHOW THEY TRIED TO SUPPRESS HIM HE SAYS ALLUDING TO MR LIMBAUGH'S WEEHOURS TV SPOT BUT HE IS COMING THROUGH MR LIMBAUGH'S FANS ARE RENOWNED FOR THEIR LOYALTY MANY RADIO STATIONS IN TENNESSEE AND ELSEWHERE REPORT THAT WHEN THEY PREEMPT HIS THREEHOUR MIDDAY SHOW FOR A PRESIDENTIAL PRESS CONFERENCE SAY THEY OFTEN ARE FLOODED WITH CALLS FROM ANGRY LISTENERS CONVINCED THAT MR LIMBAUGH IS BEING CENSORED WHEN MR LIMBAUGH RECENTLY PROMOTED A BAKE SALE IN FORT COLLINS COLO TO RAISE MONEY FOR A LISTENER WHOSE WIFE WOULDN'T LET HIM SPEND THE 2995 FOR A SUBSCRIPTION TO MR LIMBAUGH'S NEWSLETTER SOME 35000 PEOPLE SHOWED UP THE MAJORITY FROM OUT OF STATE ACCORDING TO THE DOWNTOWN BUSINESS ASSOCIATION WHICH COORDINATED THE EVENT MR LIMBAUGH HIMSELF FLEW IN TO JOIN THE FESTIVITIES MR LIMBAUGH'S APPEARANCE AT THE NRA BANQUET HERE IN LATE APRIL WAS SUCH A DRAW THAT THE NRA PROMPTLY SOLD OUT THE 5000 SEATS AT UP TO 125 EACH IT THEN ADDED A BALLROOM WITH VIDEO HOOKUPS FOR ANOTHER 2500 GUESTS AND WHEN THAT SOLD OUT PUT ON YET ANOTHER 2500PERSON BALLROOM SCALPERS WERE REPORTED GETTING 500 FOR TICKETS TO THE LIVE EVENT MR LIMBAUGH SELDOM MAKES SPEECHES THESE DAYS BUT HE EASILY COMMANDS A 30000 FEE RUSH MAKES SENSE HE JUST SPEWS SAYS JERRY BOOGIE GALLANT A CALIFORNIA OILFIELD WORKER IN A COWBOY HAT AND A CORDUROY JACKET SIPPING A BEER AT THE NRA RECEPTION BEFORE MR LIMBAUGH'S SPEECH HE IS ARTICULATE TO THE COMMON MAN LIKE ME MOST OF US OUT THERE ARE WORKING PEOPLE AND WE GET TIRED OF GETTING BLAMED FOR EVERYTHING FOR THREE BLUSTERY HOURS EACH WEEKDAY MR LIMBAUGH TAKES TO THE RADIO AIRWAVES TO RIGHT THAT BALANCE HE TYPICALLY HAS NO GUESTS AND OFTEN USES LISTENERS' PHONE CALLS AS CUES FOR HIS OWN RUMINATIONS THE CONSUMMATE RADIO PERFORMER HE MIXES MUSIC AND MIMICRY WITH PATTER THAT BOUNCES FROM SHRILL TO EASYGOING PEDANTIC TO THOUGHTFUL SELFIMPORTANT TO KIDDING AROUND WHEN I'M HAVING A BAD DAY I COME OUT HERE AND PLAY RUSH AND IT RELIEVES STRESS SAYS DAVID CARMICHAEL AN EXMARINE AND FORMER ACCOUNTANT AS HE TENDS RIBS IN THE PIT OUTSIDE CHATTANOOGA'S SMOKEY'S BARBECUE WHICH HE MANAGES THE PIT RADIO IS TUNED TO THE LIMBAUGH SHOW AS IS ONE IN A SMALL RUSH ROOM OFF THE MAIN DINING ROOM WHERE AS PART OF A PROMOTION WITH THE LOCAL RADIO STATION IT IS PIPED IN FOR LUNCHTIME LISTENING I THINK HE'S FUNNY MR CARMICHAEL SAYS PLUS I THINK HE MAKES A LOT OF SENSE MR LIMBAUGH ENCOURAGES BOTH REACTIONS HE SAYS HE INITIALLY SAW HIS SHOW AS ENTERTAINMENT THEN FOUND HE ALSO HAD STRUCK A POLITICAL CHORD I THINK THE VAST MAJORITY OF PEOPLE IN THIS COUNTRY LIVE THEIR LIVES AS CONSERVATIVES HE SAYS THEY MAY NOT VOTE THAT WAY BUT THEY LIVE THEIR LIVES THAT WAY THEY WANT A GOOD EDUCATION FOR THEIR KIDS THEY DON'T WANT A WHOLE LOT OF GOVERNMENT IN THEIR LIVES THEY WANT PROSPERITY AND CONTENTMENT AND HAPPINESS THEY BASICALLY WANT TO FEEL GOOD ABOUT THEMSELVES MR LIMBAUGH WHO HAS BEEN DIVORCED TWICE CONTINUES BUT WE LIVE IN A SOCIETY WHERE THE DOMINANT MEDIA CULTURE MAKES FUN OF THE THINGS THEY BELIEVE IN GOD AND COUNTRY AND MONOGAMY I'M PERCEIVED AS ONE OF THE FEW NATIONAL VOICES THAT STAND UP FOR WHAT SO MANY PEOPLE FEEL IS NOT REPRESENTED IN THE MEDIA HIS POLITICS AREN'T OUTSIDE THE CONSERVATIVE MAINSTREAM HIS HERO IS RONALD REAGAN BUT HIS DELIVERY OFTEN OBSCURES THAT FACT HE CAREENS THROUGH BOUNDARIES OF GOOD TASTE AND GLEEFULLY PUSHES LIBERALS' HOT BUTTONS I LOVE THE WOMEN'S MOVEMENT HE WRITES ESPECIALLY WHEN I AM WALKING BEHIND IT AFTER PRESIDENT CLINTON RECENTLY ATTACKED MR LIMBAUGH WITH A SUPPOSED JOKE AT A WASHINGTON DINNER THE RADIO HOST RESPONDED WITH HIS OWN BRAND OF HUMOR MR CLINTON SAID THE REASON MR LIMBAUGH HAD DEFENDED ATTORNEY GENERAL JANET RENO'S HANDLING OF THE SHOWDOWN WITH DAVID KORESH'S CULT WAS THAT SHE'D BEEN CRITICIZED BY A BLACK GUY MICHIGAN CONGRESSMAN JOHN CONYERS THE JOKE BOMBED AND MR LIMBAUGH COMPLAINED HE HAD BEEN WRONGLY BRANDED A RACIST PROMPTING THE NEW REPUBLIC TO SNAP IF YOU CAN'T TAKE A JOKE DON'T BE ONE IN A SUBSEQUENT SHOW MR LIMBAUGH AIRED A MOCK TAPE OF PRESIDENT CLINTON SUPPOSEDLY TRYING OUT OTHER JOKES ON HIS WHITE HOUSE STAFF HOW ARE JOHN CONYERS AND DAVID KORESH ALIKE WENT ONE DELIVERED IN A CLINTONLIKE VOICE THEY'RE BOTH BLACK AND GOT BURNED BY JANET RENO BILL LOCKHART PROGRAM DIRECTOR OF CHATTANOOGA'S WGOW SAYS MR LIMBAUGH'S OUTRAGEOUS BEHAVIOR WAS WHAT ATTRACTED HIM TO THE SHOW WHICH HIS STATION PICKED UP IN LATE 1989 AS PART OF A BID TO BOOST RATINGS BY CONVERTING TO A NEWSTALK FORMAT ONE THING THAT REALLY PIQUED MY INTEREST WAS HIS CALLER ABORTIONS HE SAYS REFERRING TO AN ERSTWHILE PRACTICE IN WHICH MR LIMBAUGH WOULD END CALLS FROM DISGRUNTLED LIBERALS WITH THE SOUND OF A WHOOSHING VACUUM CLEANER CHATTANOOGA IS A VERY CONSERVATIVE TOWN AND I KNEW THERE WOULD BE A LOT OF PEOPLE WHO'D FIND THAT OFFENSIVE BUT THAT'S OK BECAUSE I WANTED TO SHAKE THINGS UP THE STRATEGY WORKED THE STATION BUILT ITS DAYTIME PROGRAMMING AROUND MR LIMBAUGH'S SHOW WITH A PRERUSH HOUR FOR INSTANCE FEATURING A LIBERAL COMMENTATOR AND SAW ITS RATINGS CLIMB MR LOCKHART SAYS WGOW WHICH WAS ON THE VERGE OF GOING OUT OF BUSINESS NOW IS A SOLID NUMBER TWO IN THE DAYTIME MARKET IT TARGETS MEN AGES 25 TO 54 BEHIND A COUNTRYMUSIC STATION NOT EVERYONE IS SO AMUSED THE THING ABOUT LIMBAUGH IS THERE IS NOT A LOT OF MIDDLE GROUND PEOPLE EITHER LIKE HIM OR THEY ABSOLUTELY LOATHE HIM SAYS JOHN HOFFMAN PROGRAM DIRECTOR OF MEMPHIS'S WMC WHICH CARRIES THE SHOW THE PEOPLE WHO LOATHE HIM ARE PEOPLE WHO ARE ANGERED ENOUGH BY WHAT HE SAYS THAT THEY CAN'T LOOK PAST IT TO THE HUMOR HE ADDS A LOT OF THE PEOPLE WHO LIKE HIM ARE PEOPLE WHO DON'T TAKE HIM SERIOUSLY AS A COMMENTATOR THEY JUST THINK HE'S A FUNNY SUCKER AND HE IS MANY MINORITIES MISS THE HUMOR MR LIMBAUGH TAKES THE SAME SLEDGEHAMMER TO CIVILRIGHTS GROUPS THAT HE DOES TO OTHER PERCEIVED DEMONS OF THE LEFT HE FREQUENTLY MOCKS THE REV JESSE JACKSON AND WRITES IT IS NEITHER FARFETCHED NOR UNFAIR TO DRAW AN ANALOGY BETWEEN THE CIVIL RIGHTS LEADERSHIP AND THE SOVIET COMMUNIST LEADERSHIP INSOFAR AS EXPLOITATION OF THEIR PEOPLE IS CONCERNED I THINK A LOT OF WHAT HE IS DOING IS MIRRORING THE SPLIT IN SOCIETY TODAY REGARDING RACE RELATIONS SAYS DHYANA ZIEGLER AN AFRICANAMERICAN WHO IS ASSOCIATE PROFESSOR OF BROADCASTING AT THE UNIVERSITY OF TENNESSEE IN KNOXVILLE BUT I ALSO THINK THERE ARE A LOT OF PEOPLE WHO FEEL EXACTLY THE WAY HE DOES BUT DON'T HAVE THE GUTS TO SAY IT MR LIMBAUGH'S DAILY TALKSHOW IS NOW HEARD ON SOME 610 AM STATIONS REACHING AN AUDIENCE OF OVER 16 MILLION PEOPLE AN ACCOMPLISHMENT THAT BROADCASTERS SAY IS WITHOUT PARALLEL IN RECENT DECADES PAUL HARVEY CLAIMS TO BE THE MOST LISTENEDTO MAN IN RADIO WITH ABOUT 1340 STATIONS IN THE US AND ANOTHER 525 ABROAD BUT THE LONGEST OF HIS THREE DAILY PROGRAMS IS ONLY 15 MINUTES ALSO HE ISN'T SYNDICATED AS IS MR LIMBAUGH BUT IS PART OF THE ABC RADIO NETWORK MR LIMBAUGH IS A TOP DRAW IN BIG RADIO MARKETS NEW YORK LOS ANGELES SAN FRANCISCO CHICAGO AS WELL AS SMALL HIS BOOK THE WAY THINGS OUGHT TO BE WAS PUBLISHED IN SEPTEMBER AND NOW HAS 25 MILLION HARDBACK COPIES IN PRINT MAKING IT ONE OF THE BIGGEST SELLING NONFICTION BOOKS EVER MR LIMBAUGH'S COLLABORATOR WAS JOHN FUND AN EDITORIALPAGE WRITER FOR THE WALL STREET JOURNAL A SECOND BOOK SEE I TOLD YOU SO IS DUE THIS FALL AND HIS SYNDICATED TV SHOW WHICH STARTED IN SEPTEMBER WITH REPUBLICAN TV CONSULTANT ROGER AILES AS EXECUTIVE PRODUCER IS NOW CARRIED ON ABOUT 210 STATIONS I'VE BEEN IN BROADCASTING FOR 27 YEARS NOW AND THERE'S NEVER BEEN ANYTHING LIKE RUSH LIMBAUGH SAYS BARRY YOUNG PROGRAM DIRECTOR AND TALKSHOW HOST FOR STATION KFYI WHICH CARRIES THE RADIO SHOW IN PHOENIX I HEAR PEOPLE PREDICT THE LIMBAUGH PHENOMENON WILL BURN OUT HE SAYS BUT I THINK THERE'S EVERY INDICATION HE WILL CONTINUE AS STRONGLY IN THE FUTURE AS HE IS RIGHT NOW HE HAS REALLY CAPTURED THE IMAGINATION SEE RELATED LETTER LETTERS TO THE EDITOR LIMBAUGH'S VITRIOL IS NO LAUGHING MATTER WSJ JULY 22 1993 9306280006 YY93 MM07 9307210119 930623 POLITICS & POLICY GORE GETS EARFUL OF BUREAUCRATIC HORROR STORIES AS HE SHAPES A PLAN TO REINVENT' GOVERNMENT BY JAMES M PERRY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CORDLESS MICROPHONE IN HAND VICE PRESIDENT AL GORE STRIDES BACK AND FORTH IN FRONT OF AN ENTHUSIASTIC AUDIENCE JUST AS IF HE WERE OPRAH OR DONAHUE BUT HERE THE SUBJECT ISN'T SERIAL KILLERS OR SEXCHANGE OPERATIONS IT'S SOMETHING CALLED REINVENTING GOVERNMENT AND THE CLINTON ADMINISTRATION IS SERIOUS ABOUT IT MOST SERIOUS OF ALL IS MR GORE NAMED BY MR CLINTON AS THE HEAD REINVENTOR HE'S HOLDING TOWNHALL MEETINGS IN EVERY MAJOR GOVERNMENT DEPARTMENT COLLECTING IDEAS ON WHAT'S WRONG AND WHAT CAN BE DONE TO FIX IT MORE THAN 200 REINVENTING SPECIALISTS MOST OF THEM CAREER FEDERAL EMPLOYEES ARE TOILING IN TWO DOWNTOWN OFFICES ANALYZING ALL THE DATA THE AGENCIES WITH 800 MORE EMPLOYEES WORKING ON THE PROJECT ARE DOING THEIR SHARE TOO THIS WEEK TOP MANAGERS AT THE LABOR DEPARTMENT HELD A THREEDAY RETREAT TO COME UP WITH IDEAS ON REINVENTING THEIR PART OF THE GOVERNMENT THE GOAL IS TO PRODUCE A FINAL REPORT FREE OF JARGON AND ANALYSIS BY HIGHLY PAID CONSULTANTS IN SEPTEMBER MR GORE'S TOWNHALL MEETING WITH VOLUNTEER BUREAUCRATS FROM THE TREASURY DEPARTMENT IS TYPICAL HE STARTS OFF BY SAYING HE WANTS THEM TO TELL HIM HORROR STORIES ABOUT WHY THE FEDERAL GOVERNMENT IS SO FOSSILIZED THEY CAN HARDLY WAIT TO RESPOND I CAN'T EVEN FIND A STAPLER THAT WORKS IN MY DEPARTMENT SAYS ONE WOMAN WE HAVE A COUPLE OF OLD STAPLERS THAT STILL DO THE JOB AND WE HIDE THEM FROM EACH OTHER IF YOU BLOW A FUSE SAYS A MAINTENANCE WORKER YOU'RE OUT OF BUSINESS FOR DAYS SO IT'S A LOT EASIER TO GO ACROSS THE STREET TO RADIO SHACK AND BUY A NEW FUSE OUT OF YOUR OWN POCKET BUT THE MOST CELEBRATED HORROR STORY OF ALL IS THE ONE MR GORE TELLS HIMSELF AT ALL HIS MEETINGS IT'S ABOUT A LITTLE GREEN STEAM TRAP THAT'S USED TO TAKE DIRT AND OIL OUT OF STEAM LINES IT COSTS ABOUT 100 MR GORE SAYS WHEN IT GOES BAD IT BEGINS TO LEAK IT LEAKS ABOUT 50 WORTH OF STEAM A WEEK MR GORE SAYS A FEDERAL EMPLOYEE CAME TO HIM AND TOLD HIM WHAT HAPPENED WHEN HE TRIED TO REPLACE SEVERAL LEAKY TRAPS HE WAS TOLD THE CENTRAL PROCUREMENT OFFICE HAD BEEN DIRECTED TO BUY IN QUANTITY TO SAVE MONEY TO DO THAT THEY SAVED UP ALL THEIR REQUESTS FOR LEAKY STEAM TRAPS FOR A SOLID YEAR SURE ENOUGH THEY GOT A DISCOUNT THEY BOUGHT EACH 100 TRAP FOR 90 SAVED 10 BUCKS IN THE MEANTIME THOUGH THEY LOST 50 WEEKS OF STEAM 2500 THAT'S RIGHT 2500 TO SAVE 10 IT'S A NICE STORY BUT ROBERT STONE A CAREER DEFENSE DEPARTMENT OFFICIAL HIRED BY MR GORE TO MANAGE THE REINVENTING TEAM CONCEDES THAT NO ONE ORDERED ANYONE TO SAVE UP ALL THOSE REQUESTS FOR NEW STEAM TRAPS THE PROBLEM WAS HE SAYS NO ONE WAS AUTHORIZED TO DO ANYTHING SO PRESUMABLY THE REQUESTS JUST PILED UP IT'S ALSO A POPULAR STORY MR STONE TELLS IT IN A BOOK CALLED REINVENTING GOVERNMENT BY DAVID OSBORNE AND TED GAEBLER IN MR STONE'S VERSION THE LOST STEAM WAS WORTH 3000 MR OSBORNE IS WORKING AS A CONSULTANT WITH THE REINVENTING ORGANIZATION WHICH IS FORMALLY KNOWN AS THE NATIONAL PERFORMANCE REVIEW THE BOOK IS THE ORGANIZATION'S GUIDING LIGHT BUT WHATEVER THE PROVENANCE OF THE ANECDOTE THE POINT IS VALID THE GOVERNMENT'S CENTRALIZED PROCUREMENT PROCESS DOES POSE A PROBLEM MR STONE SAYS THE FINAL REPORT WILL RECOMMEND CHANGES MANAGERS WOULD BE GIVEN CASH TO MAKE THESE DISCRETIONARY PURCHASES HE SAYS THEY COULD GO OUT AND BUY STAPLERS AND FUSES AND EVEN DESKTOP COMPUTERS ON THEIR OWN WITHOUT FILLING OUT HUNDREDS OF PAGES OF DOCUMENTS FOR THE CENTRALIZED PURCHASING OFFICE EMPOWER PEOPLE HE SAYS THAT'S THE ADVICE I'M GETTING IT IS ONE OF MR GORE'S BASIC PRINCIPLES TOO HE SAYS HE WANTS TO INVENT A GOVERNMENT THAT WILL BE DECENTRALIZED THAT WILL USE MARKET PRINCIPLES AND THAT WILL TREAT AMERICANS LIKE CUSTOMERS AGAIN WHAT PRIVATE INDUSTRY HAS DONE IN THE WAY OF TOTAL QUALITY MANAGEMENT HE WANTS TO DO FOR THE FEDERAL GOVERNMENT IT MIGHT EVEN INVOLVE SOMETHING THAT USED TO BE CALLED THE PETTYCASH FUND SOME GOVERNMENT AGENCIES MR STONE NOTES HAVE PETTYCASH FUNDS NOW BUT THE TROUBLE IS HARDLY ANYONE IS EMPOWERED TO USE THE MONEY MR GORE AND HIS GROUP ARE ALSO TAKING ON WHAT TO MANY IS THE COAT OF ARMS OF THE FEDERAL GOVERNMENT IN ACTION MOUNDS OF PAPERWORK IT TOOK ME A WHOLE WEEK TO DO THE PAPERWORK TO MEET THE REQUIREMENTS OF THE PAPERWORK REDUCTION ACT ONE TREASURY EMPLOYEE TOLD MR GORE THE PAPERWORK SAYS MR STONE REALLY IS AWESOME WHEN HE WAS AT THE DEFENSE DEPARTMENT AND WANTED TO MAKE A TRIP HE SAYS HE WAS REQUIRED TO FILL OUT DOZENS OF FORMS AND SEND HIS SECRETARY SCURRYING ALL OVER THE PENTAGON TO GET THEM SIGNED ALL DAY LONG SAYS MR STONE THOUSANDS OF GOVERNMENT SECRETARIES ARE SHUTTLING FROM OFFICE TO OFFICE JUST TO GET PAPERS SIGNED BY FUNCTIONARIES WHY CAN'T THESE SIGNATURES BE DONE ELECTRONICALLY A TREASURY WORKER ASKED AT MR GORE'S TOWN MEETING GOOD QUESTION MR STONE THINKS HE AND HIS REINVENTORS HAVE AN ANSWER THE COMPUTER AS THINGS STAND NOW MOST FEDERAL DEPARTMENTS STILL USE ELECTRIC TYPEWRITERS NEW HIRES SOMETIMES DON'T KNOW WHAT THEY ARE MR STONE POINTS OUT MR STONE WOULD REPLACE THEM ALL WITH COMPUTERS HERE'S WHAT I WOULD DO ABOUT THAT TRIP TO ATLANTA SAYS MR STONE I'D TYPE A LINE TO MY BOSS ON MY PC SAYING I WANTED TO GO TO ATLANTA AT 9 AM ON THURSDAY AND THAT I'D BE BACK AT 5 PM FRIDAY HE'D RESPOND BY COMPUTER THAT IT WAS OK AND THEN I'D CONTACT THE TRAVEL OFFICE BY EMAIL AND THEY'D SEND MY TICKET BACK BY EMAIL I'D ACCOUNT FOR MY EXPENSES ON MY COMPUTER AND HAVE MY BOSS AUTHENTICATE THEM I'D SEND MY VOUCHER ELECTRONICALLY TO THE PAYROLL OFFICE AND THEY WOULD THEN TRANSFER WHAT I WAS OWED ELECTRONICALLY TO MY BANK ACCOUNT MR STONE SAYS HE WOULD LAY DOWN A LAW ANYBODY IN GOVERNMENT WHO WORKS WITH PENCIL AND PAPER IS HEREBY AUTHORIZED TO BUY A DESKTOP COMPUTER IN THE END HE SAYS THE GOVERNMENT WOULD SAVE MONEY HIRING A SECRETARY TO SHUTTLE BACK AND FORTH WITH PAPERWORK PROBABLY COSTS 50000 A YEAR WITH BENEFITS BUYING A PC AND WORKING IT INTO A LOCALAREA NETWORK COSTS LESS THAN 5000 THE SECRETARIES OF COURSE WOULD LOSE THEIR JOBS IN THEORY ANYWAY HE WOULD ALSO ALLOW EMPLOYEES TO BUY STATEOFTHEART EQUIPMENT AS THINGS STAND NOW ONE OF THE TREASURY EMPLOYEES TOLD MR GORE NEW COMPUTER EQUIPMENT ARRIVES JUST ABOUT THE TIME THE EQUIPMENT BECOMES OBSOLETE MR STONE AGREES HE SAYS HE WAS ASSIGNED A NEW COMPUTER AT THE PENTAGON THE DAY THE COMPANY THAT SERVICED THEM WENT OUT OF BUSINESS SEE RELATED LETTER LETTERS TO THE EDITOR REDUCING PAPER CHASE CAN SAVE MILLIONS WSJ JULY 21 1993 9306230104 YY93 MM07 9307210106 930629 REVIEW & OUTLOOK EDITORIAL STOP THE KILLING RUDE SERVICE INEFFICIENCY AND LONG QUEUES ARE ALL GOOD REASONS FOR PRIVATIZING THE US POSTAL SERVICE BUT WE CAN THINK OF A BETTER ONE EMPLOYEES OF FEDERAL EXPRESS AND UPS DON'T GO ON SHOOTING RAMPAGES SERIOUSLY THERE HAVE BEEN 10 INCIDENTS OF MASS KILLINGS BY POSTAL WORKERS IN THE PAST 10 YEARS IN MOST OF THEM THE GUY POPPED HIS CORK AFTER GETTING SACKED OR BEING DENIED A PROMOTION OR GETTING CALLED UP FOR DISCIPLINE A TOTAL OF 34 PEOPLE DIED ON THESE OCCASIONS NOT LONG AGO SHOOTINGS IN MICHIGAN AND CALIFORNIA TOOK THE LIVES OF FOUR PEOPLE AND FIT THE PATTERN ONE GUNMAN WAS ANNOYED TO HAVE BEEN PASSED OVER IN FAVOR OF A FEMALE COWORKER WHILE THE OTHER WAS SEEKING REVENGE AFTER GETTING CANNED THE NEW YORK TIMES RECENTLY LOOKED INTO ALL THIS IN A LONG ARTICLE THE GIST OF WHICH WAS THAT POSTAL EMPLOYEES WORK TOO HARD AND SOMETIMES FLIP OUT WELL ANYBODY WHO HAS EVER TOILED AS A SHIPPING CLERK KNOWS THAT FEDEX AND UPS FOLKS WORK HARD TOO AND UNLIKE THE POST OFFICE THEY CAN BE FIRED FOR INCOMPETENCE OR BECAUSE BUSINESS TURNS BAD POSTAL EMPLOYEES ARE SMOTHERED IN UNHEALTHY AFFECTION BY THREE OF THE WORLD'S MOST INSULAR ANTICOMPETITIVE UNIONS POLITICIANS SELDOM HAVE THE COURAGE TO APPLY A STERN HAND EVEN WHEN VOTERS SCREAM ABOUT HIGHER POSTAL RATES YES SOMETIMES POSTAL WORKERS ARE FIRED THOUGH RARELY AND WHEN THEY ARE IT TRIGGERS A POWERFUL SENSE OF AGGRIEVED ENTITLEMENT THE POST OFFICE IS SUPPOSED TO BE A JOB FOR LIFE WE THINK THAT HAS SOMETHING TO DO WITH THE PERIODIC EXPLOSIONS OF RAGE THE POSTAL SERVICE IS A SPRAWLING OCTOPUS AND NO DOUBT ONE THAT BREEDS MORE THAN ITS SHARE OF APPALLING PETTY LITTLE DESPOTISMS FOR THEIR OWN PHYSICAL AND MENTAL WELLBEING THE PEOPLE OF THE POST OFFICE SHOULD BE SET FREE IN THE PRIVATE SECTOR THEY'D ALL BE BETTER OFF WITH THE BRACING SENSE OF RIGHT REWARDS AND PENALTIES THEY'D GET FROM KNOWING INDIVIDUALLY AND COLLECTIVELY IT'S EITHER DELIVER VALUE OR HANG UP THEIR MAILBAGS SEE RELATED LETTERS REVIEW & OUTLOOK EDITORIAL STOP THE KILLING WSJ JULY 21 1993 9306290137 YY93 MM07 9307210103 930624 CITIES THE TAX BILL'S VICTIMS BY CHARLES W KADLEC THE FINANCE COMMITTEE TAX BILL EXPECTED TO PASS THE SENATE THIS WEEK IS A STEALTH ATTACK ON AMERICA'S OLDEST HIGHCOST CITIES AND THE PEOPLE WHO LIVE WITHIN THEIR BORDERS THE COMMITTEE'S ELIMINATION OF ALL INCENTIVES FOR ENTERPRISE ZONES SHOWS MORE THAN ANY OTHER SINGLE ACTION THE DEMOCRATIC PARTY'S TRUE INDIFFERENCE TO THE PLIGHT OF THEIR MOST LOYAL CONSTITUENTS ESPECIALLY MINORITIES THAT ARE DEPENDENT UPON THE ECONOMIC VITALITY OF THE CITIES IN WHICH THEY LIVE BUT IT IS THE PARTY'S CALL FOR TAXING THE RICH THAT PROVIDES THE CLOAK FOR ITS MOST HARMFUL ANTIURBAN POLICIES SHOCKING AS IT MAY SEEM TO THOSE WHO READ AND HEAR THE DAILY REPORTS ON THE TAX BILL THE PROPOSED TAX INCREASES ON THE RICH ARE NOT TARGETED AT WEALTH AT ALL INSTEAD THE TAX INCREASES ARE TARGETED AT THE CREATION OF WEALTH AS IN THE BILL PASSED BY THE HOUSE TAX RATES IN THE BILL ON THE SENATE FLOOR WOULD INCREASE FOR INDIVIDUALS WITH ANNUAL INCOMES ABOVE 115000 AND COUPLES WITH ANNUAL INCOMES ABOVE 140000 AND IN THE MEASURE BEING DEBATED BY THE SENATE THE CAPITALGAINS TAX RATE WOULD RISE FOR THOSE WITH INCOMES INCLUDING CAPITAL GAINS OF MORE THAN 250000 HITTING ESPECIALLY HARD THOSE WHO MUST SELL A BUSINESS OR A LARGE CONCENTRATED INVESTMENT AFTER A LIFETIME OF WORK AND SAVINGS TO PROVIDE FOR THEIR RETIREMENT THE NORTHEAST AND CALIFORNIA WHAT DOES THIS HAVE TO DO WITH THE PLIGHT OF URBAN AMERICA EVERYTHING FIRST HIGH INCOMES ARE CONCENTRATED IN AMERICA'S OLDEST URBAN AREAS ESPECIALLY IN THE NORTHEAST AND IN CALIFORNIA TWENTYFIVE PERCENT OF THE HOUSEHOLDS IN THE NORTHEAST AND 23 IN THE WEST ARE IN THE TOP QUINTILE OF EARNINGS COMPARED WITH ONLY 17 OF HOUSEHOLDS IN THE SOUTH THE ECONOMIC SLOWDOWN AND LOSS OF JOBS THAT ACCOMPANY ALL TAX INCREASES WOULD BE FELT MST HEAVILY IN THE URBAN CENTERS OF THE NORTHEAST AND WEST SECOND THE HIGHER PERSONAL INCOMETAX RATES WOULD UNDERCUT THE ABILITY OF THESE URBAN CENTERS TO COMPETE FOR THE LOCATION OF ECONOMIC ACTIVITY ALTHOUGH INCOMES ARE HIGHER IN THESE CITIES SO IS THE COST OF LIVING AN INCOME OF 140000 MAY PROVIDE A LIFESTYLE OF THE RICH IN MANY PARTS OF THE COUNTRY BUT IN THE MAJOR URBAN CENTERS OF THE NORTHEAST AND WEST IT'S JUST ENOUGH TO PUT A FAMILY SQUARELY IN THE MIDDLE CLASS A MAJOR REASON IT COSTS MORE TO LIVE IN AMERICA'S OLDER CITIES IS THAT THE PRICE OF FOOD SHELTER AND THE GOODS AND SERVICES OF EVERYDAY LIFE ARE MARKED UP TO DEFRAY THE EXTRA COST OF HIGHER STATE AND LOCAL SALES PROPERTY AND INCOME TAXES IMPOSING A HIGHER FEDERAL TAX RATE ON THE INCOMES NEEDED TO COVER THESE TAXES ADDS AN ADDITIONAL COST OR PENALTY TO DOING BUSINESS IN THE CITIES EMPLOYERS AND EMPLOYEES CAN AVOID THIS PENALTY BY MOVING TO LOWERCOST SUBURBS OR THE NEW CITIES OF THE SOUTH FOR THOSE WHO ARE LEFT BEHIND HOWEVER THE CONSEQUENCES OF THE HIGHER TAX RATES ON THE RICH WOULD BE DEVASTATING A SHRINKING JOB MARKET WOULD LIMIT OPPORTUNITIES FOR UPWARD MOBILITY AND PUT DOWNWARD PRESSURE ON WAGES THE MIGRATION OF BUSINESSES AND PEOPLE ALSO WOULD DEPRESS REALESTATE VALUES THE COMBINATION OF THE LOSS OF JOBS AND A DECLINE IN THE VALUE OF REAL ESTATE WOULD START A DOWNWARD SPIRAL IN CITY TAX REVENUES AGGRAVATING THE FISCAL CRISES OF AMERICA'S MAJOR CITIES AT THE VERY TIME THAT THE NEED FOR WELFARE AND OTHER COMMUNITY SERVICES WOULD BE RISING SHARPLY FINALLY THE SENATE FINANCE COMMITTEE'S PROPOSAL TO RAISE CAPITALGAINS TAX RATES IS ESPECIALLY COUNTERPRODUCTIVE SINCE IT WOULD RAISE LITTLE REVENUE AS INDIVIDUALS SIMPLY POSTPONE THE REALIZATION OF CAPITAL GAINS MOREOVER THE RESULTING REDUCTION IN BOTH THE PRICE OF CAPITAL ASSETS AND THE NUMBER OF TRANSACTIONS WOULD CONTRIBUTE DIRECTLY TO A LOSS OF JOBS IN AMERICA'S FINANCIAL CENTERS CONTRASTING THE CHANGES IN POPULATION OF AMERICA'S MAJOR URBAN CENTERS IN THE 1970S WITH THOSE OF THE 1960S AND 1980S PROVIDES A CLEAR AND PRESENT WARNING OF THE DECLINE THAT AWAITS URBAN AMERICA IF THE HIGHER PERSONAL INCOME AND CAPITALGAINS TAX RATES BECOME LAW DURING THE 1960S AMERICA'S SIX LARGEST CITIES NEW YORK CHICAGO LOS ANGELES PHILADELPHIA DETROIT AND BALTIMORE INCREASED THEIR AGGREGATE POPULATION BY 23000 BUT DURING THE 1970S AS THE CAPITALGAINS TAX RATE WAS RAISED AND INFLATION PUSHED MILLIONS OF MIDDLECLASS AMERICANS INTO THE VERY TAX BRACKETS CALLED FOR IN THE DEMOCRATIC TAX BILL THE POPULATION OF THESE SIX CITIES DECLINED BY 17 MILLION PEOPLE DURING THE 1980S ACROSSTHEBOARD TAXRATE REDUCTIONS AND THE BOOM SET OFF BY THE PROPOSITION 13 TAX CUTS IN CALIFORNIA REVERSED THIS DECLINE THE AGGREGATE POPULATION OF THESE SAME SIX CITIES INCREASED BY 219000 THE AGGREGATE NUMBERS MISS SOME IMPORTANT DIFFERENCES AMONG THE CITIES CHICAGO PHILADELPHIA DETROIT AND BALTIMORE LOST POPULATION IN EACH OF THE THREE DECADES HOWEVER THE RATE OF LOSS MORE THAN DOUBLED DURING THE 1970S AND THEN SLOWED DURING THE 1980S SIMILARLY LOS ANGELES WHICH GAINED POPULATION IN EACH OF THE DECADES EXPERIENCED A DRAMATIC SLOWDOWN IN ITS GROWTH DURING THE HIGHTAXRATE 1970S ONLY TO REACCELERATE DURING THE LOWTAXRATE 1980S AND NEW YORK WHICH HAD GAINED 114000 PEOPLE DURING THE 1960S AND THEN LOST 824000 PEOPLE IN THE 1970S ACTUALLY SAW ITS POPULATION GROW BY 251000 DURING THE 1980S REGARDLESS OF THE PATH OF THE SPECIFIC URBAN AREAS THE HIGHER TAX RATES OF THE 1970S HURT THEIR ECONOMIC PERFORMANCE WHILE THE LOWER TAX RATES OF THE 1980S IMPROVED THEIR RESPECTIVE ABILITY TO COMPETE FOR POPULATION AND ECONOMIC ACTIVITY A SIMILAR STORY CAN BE TOLD ABOUT THE FINANCIAL CONDITIONS OF THESE CITIES FOR EXAMPLE BETWEEN 1970 AND 1980 TOTAL TAX COLLECTIONS IN NEW YORK IN INFLATIONADJUSTED DOLLARS INCREASED BY ONLY 86 LESS THAN 1 A YEAR AS ONE TAX INCREASE AFTER ANOTHER WAS BARELY ENOUGH TO OFFSET A 145 DECLINE IN REALESTATE TAX REVENUES BY CONTRAST BETWEEN 1980 AND 1990 NEW YORK'S INFLATIONADJUSTED TAX REVENUES INCREASED 437 INCLUDING A 30 INCREASE IN REALESTATE TAX REVENUES AS THE CITY'S GROWING ECONOMY GENERATED REVENUES FROM AN EXPANDING HEALTHY TAX BASE AMERICA'S MAJOR CITIES WOULD SUFFER FAR GREATER LOSSES UNDER THE PROPOSED INCREASED INCOMETAX RATES THAN THEY EXPERIENCED IN THE 1970S THE SERVICE SECTOR WHICH IS THE CORE OF THE ECONOMIC BASE OF THE CITIES IS FACING INCREASED COMPETITIVE PRESSURES TO LOWER COSTS AND IMPROVE EFFICIENCY ANY TAX INCREASE NOW ON ITS EMPLOYEES WOULD BOOST DEMANDS FOR WAGE INCREASES UNDERMINING EACH COMPANY'S COMPETITIVE POSITION AND THEREBY ACCENTUATING THE DESIRABILITY OF REDUCING COSTS BY LAYING OFF WORKERS OR MOVING OUT OF THE CITIES MOREOVER MODERN LOWCOST COMMUNICATIONS ESPECIALLY THE UBIQUITOUS FAX AND NETWORKED PERSONAL COMPUTERS MAKE IT FAR EASIER THAN IT WAS 20 YEARS AGO FOR COMPANIES TO OPERATE THEIR BUSINESSES FAR FROM THE COMPLEX STRUCTURE OF FINANCIAL LEGAL ACCOUNTING AND OTHER SUPPORTING SERVICES THAT ARE CLUSTERED IN MAJOR URBAN CENTERS IN 1990 THE DEMOCRATS TARGETED THE RICH WITH A LUXURY TAX ON SUCH EXPENSIVE GOODS AS BOATS AND JEWELRY ASSUMING WRONGLY THAT THE WEALTHY WOULD BEAR THE CONSEQUENCES OF THIS TAX BUT THE ACTUAL CONSEQUENCES WERE BORNE BY THE THOUSANDS OF PEOPLE WHO LOST THEIR JOBS IN THESE INDUSTRIES WHEN THE DEMAND FOR THESE NOWHIGHERTAXED GOODS FELL SHARPLY ONCE AGAIN THE DEMOCRATS ARE TARGETING THE RICH WITH THEIR TAX INCREASES AND ONCE AGAIN THE CONSEQUENCES WOULD BE BORNE BY WORKERS AND THE UNEMPLOYED WHO ARE LEFT BEHIND IN NEW YORK CHICAGO LOS ANGELES AND AMERICA'S OTHER MAJOR URBAN AREAS IS IT TOO MUCH TO HOPE THAT IN HAMMERING OUT THE FINAL TAX BILL MEMBERS OF CONGRESS WILL RECOGNIZE AND STOP THIS INADVERTENT ATTACK ON URBAN AMERICA MR KADLEC IS MANAGING DIRECTOR OF J&W SELIGMAN & CO A NEW YORK INVESTMENT MANAGER SEE RELATED LETTER LETTERS TO THE EDITOR TAX RISE WILL DEEPEN INNER CITIES' DESPAIR WSJ JULY 21 1993 9306240009 YY93 MM07 9307210074 930624 LETTERS TO THE EDITOR HOW THOSE CFCS GET WAY UP THERE RECENTLY A NUMBER OF WELL INFORMED AND THOUGHTFUL PEOPLE HAVE MISTAKENLY COMMENTED PUBLICLY THAT CFCS COULD NOT REACH THE STRATOSPHERE BECAUSE THEY ARE HEAVIER THAN AIR EG LETTERS MAY 7 MERE FACTS DON'T DAUNT GREEN ZEALOTS MANY AGREE WITH THE JOURNAL'S THESIS ABOUT GREEN ZEALOTS IN THE CASE OF CFCS HOWEVER SAMPLES HAVE BEEN COLLECTED FROM THE STRATOSPHERE AND MEASUREMENTS MADE ALTHOUGH CFCS ARE HEAVIER THAN AIR ATMOSPHERIC MIXING TURBULENCE ALLOWS THEM TO RISE ACCORDING TO OSHA IN RESPONSE TO THE SAME QUESTION OSHA ALSO POINTS OUT THAT WHEN ITS SCIENTISTS ARE IN THE ANTARCTIC THEY HAVE ENOUGH OXYGEN TO BREATHE ALTHOUGH THE NEAREST VEGETATION IS ABOUT 1000 MILES AWAY GOOD POINT SEE RELATED LETTER LETTERS TO THE EDITOR CFCS DIFFUSE UPWARD WSJ JULY 21 1993 9306240014 YY93 MM07 9307200128 930623 WORKPLACE FIRMS TRY HARDER BUT OFTEN FAIL TO HELP WORKERS COPE WITH ELDERCARE PROBLEMS BY SUE SHELLENBARGER STAFF REPORTER OF THE WALL STREET JOURNAL JUST OVER THE HORIZON LOOMS A DEMOGRAPHIC TIME BOMB FOR THE NATION'S EMPLOYERS AND NOBODY HAS FIGURED OUT YET HOW TO DEFUSE IT IF YOU WERE TO DRAW A PICTURE OF THIS BOMB STENCILED ON ITS SIDE WOULD BE TWO WORDS ELDER CARE AS THE WORK FORCE AGES AND MORE EMPLOYEES BEGIN CARING FOR ELDERLY PARENTS AND INLAWS RESEARCH SHOWS THESE CARETAKERS EXPERIENCE STRESS AND PRODUCTIVITY LOSSES ON THE JOB BUT ONLY 43 OF 1026 EMPLOYERS SURVEYED IN 1992 BY HEWITT ASSOCIATES LINCOLNSHIRE ILL BENEFITS CONSULTANTS OFFERED ELDERCARE BENEFITS COMPARED WITH 74 OFFERING SOME KIND OF CHILDCARE AID A 1992 SURVEY OF 1004 EMPLOYERS BY THE SOCIETY FOR HUMAN RESOURCE MANAGEMENT ALEXANDRIA VA SHOWED THAT TWOTHIRDS WERE NOT AT ALL INVOLVED IN ELDERCARE SERVICES ONE OF THE MOST SIGNIFICANT REASONS COMPANIES ARE NOT MOVING FASTER ON ELDER CARE IS THAT THEY JUST DON'T KNOW WHAT TO DO SAYS DANA FRIEDMAN COPRESIDENT OF THE FAMILIES AND WORK INSTITUTE A NONPROFIT NEW YORK RESEARCH AND CONSULTING CONCERN WE NEED TO KNOW MORE ABOUT HOW WORKING PEOPLE CARE FOR THEIR ELDERLY FAMILY MEMBERS AMONG OTHER THINGS SHE SAYS MANY EXPERTS BELIEVE THE WORRIES AND DISTRACTIONS CAUSED BY ELDER CARE CAN BE MORE DAMAGING IN THE WORKPLACE THAN CHILDCARE PROBLEMS ROUGHLY ONETHIRD OF EMPLOYED CAREGIVERS LIVE MORE THAN 100 MILES FROM THEIR ELDERS WORSE YET ELDERS' NEEDS OFTEN ERUPT AS CRISES AND THEY CAN BE COMPLEX AND EMOTIONALLY HARROWING WHEN ROBERT PLUMMER'S PHONE RANG AT 1 AM LAST MONTH IN HIS HOME NEAR CHICAGO HE AWOKE TO LEARN THAT HIS 80YEAROLD FATHERINLAW HAD HAD A STROKE IN HIS HOME 250 MILES AWAY IN COLUMBUS IND UNABLE TO USE HIS RIGHT SIDE THE FATHERINLAW HAD BEEN TRYING FOR FIVE HOURS TO GET TO THE PHONE AFTER PERSUADING HIS RELUCTANT RELATIVE TO CALL AN AMBULANCE AND ASK A NEIGHBOR TO CARE FOR HIS BEDRIDDEN MOTHERINLAW MR PLUMMER AND HIS WIFE DROVE TO COLUMBUS THOUGH HIS FATHERINLAW RECOVERED HIS HEALTH PROBLEMS HAVE MEANT MISSED TIME FROM WORK FOR MR PLUMMER WHO ADMINISTERS AMERICAN TELEPHONE & TELEGRAPH CO'S MIDWESTERN EMPLOYEEVOLUNTEERISM EFFORTS AND HIS WIFE A TEACHER OVER THE YEARS MR PLUMMER'S ROLE HAS RANGED FROM HELPING HIS FATHERINLAW COPE WITH CHEST PAIN TO HELPING WITH ESTATE PLANNING SIGNING UP FOR HOME HEALTH AIDES AND PERSUADING HIM TO ENROLL IN MEALS ON WHEELS THE ROLE OF A CAREGIVER FOR THE ELDERLY HE SAYS IS COSTLY AND AWFULLY STRESSFUL IN CARING FOR HIS FATHERINLAW MR PLUMMER SAYS HE WAS GREATLY HELPED BY AT&T'S RESOURCE AND REFERRAL SERVICE A TELEPHONE NETWORK OFFERING INFORMATION ABOUT AVAILABLE ELDERCARE SERVICES AND DESPITE HIS PROBLEMS HE HAS BEEN MORE FORTUNATE THAN MANY OF HIS GENERATION IN A 1992 STUDY OF 305 EMPLOYED CAREGIVERS OF THE ELDERLY BY THE FAMILIES AND WORK INSTITUTE AND THE OLDER WOMEN'S LEAGUE WASHINGTON DC ALMOST ONEFOURTH OF THOSE INTERVIEWED CHANGED THEIR EMPLOYMENT DRASTICALLY AS A RESULT OF THEIR ELDERCARE RESPONSIBILITIES INCLUDING CHANGING JOBS QUITTING OR TAKING SEVERAL PARTTIME JOBS CAREGIVERS TYPICALLY ARE ABSENT 1 1/2 TIMES MORE OFTEN FOR FAMILY REASONS THAN AVERAGE AND PRODUCTIVITY LOSSES FROM ELDER CARE COST EMPLOYERS ABOUT 2500 PER YEAR PER CAREGIVING EMPLOYEE ESTIMATES ANDREW SCHARLACH A PROFESSOR OF AGING AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY YET MANY OF EMPLOYERS' BESTINTENTIONED EFFORTS TO EASE ELDERCARE BURDENS HAVE FALLEN FLAT AN OFFER BY REMINGTON PRODUCTS CO TO PAY HALF THE COST OF RESPITE CARE FOR ELDERLY RELATIVES TO GIVE EMPLOYEES A BREAK WAS CITED AS A MODEL INITIATIVE IN A 1991 FAMILIES AND WORK INSTITUTE PUBLICATION BUT ONLY A FEW EMPLOYEES SIGNED UP AND THE BRIDGEPORT CONN ELECTRICSHAVER MAKER DISCONTINUED THE PROGRAM AFTER ABOUT A YEAR MANY EMPLOYEES APPARENTLY CHOSE TO USE THEIR OWN FAMILIES AS A BACKUP RATHER THAN PAY HALF OF THE 10 TO 15 AN HOUR CHARGED BY VISITING NURSES IT'S A FAILED EXAMPLE PEOPLE CAN LEARN FROM MS FRIEDMAN SAYS REMINGTON OFFICIALS DIDN'T RESPOND TO REPEATED TELEPHONE CALLS ASKING FOR COMMENT INTERGENERATIONAL CENTER THOUGH NEARLY 80 OF COMPANIES START ELDERCARE PROGRAMS PARTLY AS AN OUTGROWTH OF CHILDCARE ASSISTANCE ACCORDING TO A 1992 STUDY BY THE CONFERENCE BOARD A NEW YORK BUSINESSRESEARCH GROUP MOST CHILDCARE IDEAS DON'T TRANSPLANT WELL AS ELDERCARE SOLUTIONS FOR EXAMPLE STRIDE RITE CORP CAMBRIDGE MASS AND LANCASTER LABORATORIES INC LANCASTER PA BEGAN OFFERING INTERGENERATIONAL ONSITE DAY CARE IN RECENT YEARS BUT HAVE SEEN LITTLE EMPLOYEE DEMAND FOR THE ELDERCARE SLOTS ADULT DAY CARE IS STILL A FAIRLY NEW CONCEPT SAYS CAROL MILLER EXECUTIVE VICE PRESIDENT HUMAN RESOURCES FOR LANCASTER BOTH COMPANIES PREDICT GREATER USE OF ELDERCARE FACILITIES IN THE FUTURE OTHERS ARE MORE SKEPTICAL MY MOM DOESN'T WANT TO GO TO WORK WITH ME AND I DON'T SUPPOSE VERY MANY OTHERS DO EITHER SAYS THE UNIVERSITY OF CALIFORNIA'S MR SCHARLACH HERMAN MILLER INC A ZEELAND MICH FURNITURE MAKER HAS A WIDELY PRAISED CASEMANAGEMENT PROGRAM THAT PAYS FOR A TEAM OF SOCIAL WORKERS TO VISIT THE HOME OF AN EMPLOYEE'S ELDERLY RELATIVE SIZE UP THE ELDER'S NEEDS AND HELP SIGN UP FOR NEEDED PROGRAMS WHILE HERMAN MILLER WON'T COMMENT ON THE COST OF THE PROGRAM CASE MANAGERS TYPICALLY CHARGE 60 TO 120 AN HOUR MAKING THEM TOO EXPENSIVE FOR MOST EMPLOYERS THE MOST COMMON ELDERCARE BENEFIT OFFERED BY EMPLOYERS THE DEPENDENTCARE SPENDING ACCOUNT A PRETAX SETASIDE OF THE PORTION OF A PERSON'S PAY THAT WILL BE USED FOR CARING FOR A DEPENDENT IS MOSTLY USELESS FOR THOSE PROVIDING ELDER CARE TAX RULES REQUIRE THAT FOR THE INCOME TO BE TAXEXEMPT THE OLDER RELATIVE MUST SHARE A HOUSEHOLD WITH THE CAREGIVER AND DEPEND ON THE CAREGIVER FOR MORE THAN HALF OF HIS OR HER FINANCIAL SUPPORT ELIMINATING MOST ELDERCARE RELATIONSHIPS USE OF THESE PROGRAMS IS FAIRLY LOW AND I THINK YOU'LL FIND MOST CORPORATIONS IN THE SAME BOAT SAYS DEBORAH STAHL DIRECTOR OF AT&T'S FAMILYCARE DEVELOPMENT FUND AMONG EMPLOYEES THE EMOTIONS RAISED BY ELDER CARE CAN BE TOO HOT TOO HANDLE IN THE WORKPLACE AMERICAN EXPRESS CO TRIED ELDERCARE SUPPORT GROUPS A FEW YEARS AGO BUT THE GATHERINGS FADED AFTER A COUPLE OF SESSIONS BARBARA KATERSKY VICE PRESIDENT EMPLOYEE RELATIONS FOR AMERICAN EXPRESS SAYS SUCH SUPPORT GROUPS CAN RAISE STRONG FEELINGS OF GUILT PAIN OR RESENTMENT THAT ARE NOT SOMETHING PEOPLE FEEL THEY CAN DEAL WITH AT WORK SOME EMPLOYEES RESIST ASKING FOR HELP BECAUSE THEY FEEL GUILTY ABOUT THE LIMITED CARE THEY ARE ABLE TO PROVIDE OTHERS ARE SADDENED BY THE INEVITABLE LOSS THAT ENDS ALL ELDERCARE EXPERIENCES YOU CAN WALK THROUGH CORPORATIONS AND SEE FACES OF A MILLION CHILDREN ON DESKS BUT YOU NEVER SEE A PICTURE OF A MOM AND DAD SAYS BARBARA LEPIS DIRECTOR OF THE PARTNERSHIP FOR ELDERCARE A NEW YORK COLLABORATION PROVIDING EMPLOYEE ELDERCARE SERVICES SUCH ATTITUDES LEAVE EMPLOYERS IN THE DARK IN THE 1992 CONFERENCE BOARD STUDY NEARLY TWOTHIRDS OF 159 LARGE EMPLOYERS SURVEYED SAID THEY DID NOT UNDERSTAND THE EXTENT OF EMPLOYEES' ELDERCARE NEEDS AND MORE THAN 90 SAID THEY BELIEVE THE EFFECT OF CAREGIVING ON PRODUCTIVITY IS UNDERESTIMATED THE PROBLEM IS BOUND TO GROW THE AVERAGE AGE OF EMPLOYEES AT COMPANIES SURVEYED BY THE CONFERENCE BOARD WAS LATE 30S TO EARLY 40S INDICATING THAT THEIR PARENTS ARE PROBABLY IN THEIR MID60S IN FIVE YEARS THE PARENTS WILL REACH THE AGES AT WHICH INFIRMITY AND DEPENDENCY ARE LIKELY TO BEGIN THE REPORT SAYS WHEN BABY BOOMERS ARE IN THEIR EARLY 50S WE WILL START TO SEE THE NUMBERS OF ELDER CAREGIVERS INCREASE DRAMATICALLY MS FRIEAN SAYS AT THAT POINT BABY BOOMERS WILL BE RUNNING CORPORATE AMERICA AND PEOPLE IN POSITIONS OF POWER WILL BE EXPERIENCING ELDERCARE PROBLEMS FIRSTHAND THEN INCREASINGLY SHE PREDICTS COMPANIES WILL BE ABLE TO DO SOMETHING ABOUT IT SEE RELATED LETTER LETTERS TO THE EDITOR ELDER CARE PROVISIONS WSJ JULY 20 1993 9306230122 YY93 MM07 9307200108 930629 REVIEW & OUTLOOK EDITORIAL THE NANOGRAM MAFIA SINCE THE LATE 1970S VON ROLL A SWISS COMPANY HAS BEEN WADING THROUGH AMERICA'S REGULATORY SWAMPS TO BUILD A HIGHTECH WASTE INCINERATOR IN EAST LIVERPOOL OHIO JUST AS THE COMPANY WAS CLOSING IN ON THE FINISH LINE AL GORE GOT INVOLVED ARMED WITH A GRAB BAG OF GREENPEACEINSPIRED INNUENDO AND ALLEGATIONS HE VOWED TO USE EPA TO SHUT THE PLANT DOWN HE FAILED BUT NOW HE'S RESURRECTED THE ISSUE WHICH SEEMS TO BE TURNING INTO AN UNFORTUNATE PARABLE ON THE CLINTON ADMINISTRATION'S STANDARD OPERATING PROCEDURES THOUGH MR GORE HADN'T EVEN TAKEN HIS OATH OF OFFICE YET HIS ORIGINAL ATTACK WAS A SCARY MOMENT FOR THE SWISS THEY'D ALREADY SUNK 170 MILLION INTO THE PLANT AND SPENT A DECADE JUMPING THROUGH EVER LEGAL HOOP IN SIGHT BUT EPA PULLED ITSELF TOGETHER AND GAVE THE COMPANY THE NOD EVIDENTLY BELIEVING IT HAD SOME OBLIGATION TO APPLY THE LAW NOW THAT IT'S FINALLY IN THE DRIVER'S SEAT THE NEW ADMINISTRATION SEEMS TO HAVE A DIFFERENT REGULATORY PHILOSOPHY ONE PERHAPS DISTILLED FROM REPEATED VIEWINGS OF THE GODFATHER IN MAY EPA'S CAROL BROWNER WHO PRESUMABLY HAD RECUSED HERSELF FROM THE VON ROLL MATTER BECAUSE OF HER HUSBAND'S ENVIRONMENTAL ACTIVIST TIES ROLLED OUT PROHIBITIVE NEW RULES FOR FUTURE INCINERATORS LAST WEEK VON ROLL WAS INSTRUCTED BY A GANG OF EPA UNDERLINGS THAT IT SHOULD REQUEST TO HAVE THE NEW RULES APPLIED TO THE EAST LIVERPOOL PLANT OTHERWISE VON ROLL'S LICENSE WOULD BE YANKED PUTTING THE COMPANY OUT OF BUSINESS UNDER A LEGAL THEORY THAT EPA HAS REFUSED TO DISCLOSE THIS AMOUNTS TO A CHOICE OF HEMLOCKS THE NEW STANDARDS ARE UTTERLY UNSUPPORTED AND MAY NOT EVEN BE TECHNICALLY FEASIBLE YET VON ROLL DOUBTS IT CAN AFFORD HOWEVER MANY YEARS OF LITIGATION IT WOULD TAKE TO UNRAVEL EPA'S SECRET LEGAL THEORY IT WON'T SURPRISE ANYBODY THAT DIOXIN THE FAVORITE BUGBEAR OF THE PROFESSIONAL CHEMOPHOBES IS INVOLVED BASED ON VERY LITTLE IN SCIENCE OR LAW EPA HAS DECIDED THAT VON ROLL SHOULDN'T PUT OUT MORE THAN 30 NANOGRAMS A BILLIONTH OF A GRAM PER CUBIC METER OF DRY WASTE IN A TEST BURN VON ROLL PEAKED AT 143 NANOGRAMS AND WAS ALREADY SEEKING PERMISSION TO INSTALL ADDITIONAL CARBON INJECTORS TO TIDY UP ITS EMISSIONS YET EPA'S OWN EXPERTS TOLD A WEST VIRGINIA JUDGE LAST YEAR THAT EMISSIONS AT THESE LEVELS WOULDN'T POSE ANY HEALTH THREAT UP THE ROAD IN COLUMBUS THE LOCAL INCINERATOR HAS BEEN MEASURED PUFFING OUT DIOXINS AT A RATE OF 2500 NANOGRAMS FROM JUST ONE OF ITS FOUR STACKS IN SHORT THE ISSUE HERE ISN'T HUMAN HEALTH BUT MR GORE'S UNWILLINGNESS TO STAND UP TO THE LUNATIC FRINGE HIS PROTEGE MS BROWNER ANNOUNCED HER NEW INCINERATION POLICY JUST ONE DAY AFTER GREENPEACE LED BY EAST LIVERPOOL'S CELEBRITY HOUSEWIFE TERRI SWEARINGEN TIED UP TRAFFIC IN FRONT OF THE WHITE HOUSE WHILE MARTIN SHEEN SANG WE SHALL OVERCOME COLMAN MCCARTHY A PEACEANDJUSTICE COLUMNIST FOR THE WASHINGTON POST WEIGHED IN BY ACCUSING MR GORE OF YODELING LIKE AN APOLOGIST FOR THE SWISS MULTINATIONAL EVERY OTHER WHITE HOUSE HAS LAUGHED OFF GREENPEACE AND ITS ANTICS BUT THE NEW VICE PRESIDENT APPARENTLY TAKES THESE FOLKS SERIOUSLY LAST WEEK MS SWEARINGEN HERSELF WAS TRUCKED IN TO MEET KEITH LAUGHLIN MR GORE'S FULLTIME VON ROLL WATCHER THE NEXT DAY EPA HIT THE COMPANY WITH ITS ULTIMATUM WHEN EPA'S TOUGHMINDED VALDAS ADAMKUS APPROVED VON ROLL'S PERMIT LAST WINTER DESPITE MR GORE'S PREINAUGURAL BREASTBEATING HE TOLD US IT WAS SIMPLY A MATTER OF GOOD LAW AND GOOD POLICY NOW ACCORDING TO VON ROLL ATTORNEY CHUCK WATERMAN THE ATMOSPHERE AROUND EPA SEEMS MORE LIKE SOMETHING FROM A GEORGE RAFT MOVIE THERE'S BEEN A CHANGE OF ADMINISTRATIONS HE DESCRIBES EPA'S DAVID ULLRICH AS TELLING HIM AND VON ROLL ISN'T HIGH ON ANYBODY'S POPULARITY LIST IS THIS WHAT THE FUTURE HOLDS A DRAFT ORDER IS ALREADY BOUNCING AROUND THE WHITE HOUSE THAT WOULD TRANSFER TO MR GORE THE FINAL AUTHORITY TO REVIEW ALL NEW RULEMAKINGS THAT WAS FORMERLY VESTED IN OMB'S BUREAUCRATS IN THIS ATMOSPHERE IT'S NOT AT ALL HARD TO IMAGINE AS THE NEWSLETTER INSIDE THE WHITE HOUSE HAS REPORTED THAT THE ADMINISTRATION WOULD BE THINKING OF OFFERING AUTO MAKERS PROTECTION FROM THE THREAT OF FUEL ECONOMY STANDARDS IF THE COMPANIES PUSHED HARD FOR THE ADMINISTRATION'S CLEAN CAR SHOWPIECE AS WITH THE DRUG COMPANIES THE TECHNIQUE IS TO FIRST PISTOL WHIP A VON ROLL TO GET EVERYONE ELSE'S ATTENTION WE'VE HAD OCCASION TO WONDER BEFORE WHAT THIS ADMINISTRATION MAKES OF ITS RESPONSIBILITIES UNDER THE LAW MS BROWNER SO FAR HASN'T BOTHERED WITH ANY OF THE FORMALITIES THAT USUALLY PRECEDE MAJOR RULEMAKINGS YET IF THE 30NANOGRAM TEST HER UNDERLINGS ARE NOW IMPOSING ON VON ROLL WERE APPLIED NATIONALLY IT WOULD PROBABLY MEAN THE END OF THE AUTO AND STEEL INDUSTRIES AND THE BACKYARD BARBECUE OR ARE THESE SORTS OF HITS JUST FOR COMPANIES SUCH AS VON ROLL THAT PROVOKE MR GORE'S IRE SEE RELATED LETTER LETTERS TO THE EDITOR THE DIOXIN CHASE JUST WASTES MONEY WSJ JULY 20 1993 9306290057 YY93 MM07 9307200107 930622 ENVIRONMENT BY ROBERT TOMSHO WESTERN SHEEP RANCHERS ARE FUMING OVER A DECISION TO HALT FEDERAL AGENTS' KILLING OF COYOTES AND OTHER PREDATORS ON GRAZING LAND LEASED FROM THE BUREAU OF LAND MANAGEMENT IN APRIL BLM ORDERED A MORATORIUM ON ROUTINE PREDATOR CONTROL EFFORTS BY ANIMAL DAMAGE CONTROL AGENTS UNTIL THE AGRICULTURE DEPARTMENT'S ADC FILES UPDATED REPORTS ASSESSING THE ENVIRONMENTAL IMPACT OF ITS WORK IN DOZENS OF BLM DISTRICTS IN 11 STATES THAT PROCESS IS EXPECTED TO TAKE MONTHS TO COMPLETE THE BAN ON ABOUT 100 MILLION FEDERAL ACRES CAME AS RANCHERS WERE STARTING THE SPRING LAMBING SEASON WHEN SLOWMOVING EWES AND THEIR OFFSPRING ARE MOST VULNERABLE ALTHOUGH RANCHERS HAVE HIRED PRIVATE HUNTERS ARMED THEIR HERDERS AND PURCHASED GUARD DOGS THE EFFECTS HAVE BEEN PRETTY DEVASTATING SAYS CAROLYN PASENEAUX DIRECTOR OF THE WYOMING WOOL GROWERS ASSOCIATION THE FULL EFFECTS WON'T BE KNOWN UNTIL LATER THIS SUMMER TO DATE THE ADC HAS FILED SOME UPDATED ASSESSMENTS BUT THOSE HAVE ALREADY BEEN CHALLENGED BY THE HUMANE SOCIETY OF THE US WHOSE INITIAL COMPLAINT TRIGGERED THE BAN THE SOCIETY AND OTHER GROUPS HAVE LONG DENOUNCED THE ADC'S WORK AS CRUEL AND INEFFECTIVE AS WELL AS AN UNWARRANTED USE OF FEDERAL FUNDS TO SUPPORT PRIVATE RANCHERS THE ADC SAYS ITS PROGRAMS DO WORK AND ARE ONLY CONDUCTED AT THE REQUEST OF THE BLM A BLM SPOKESWOMAN SAID AGENTS NEED TO CONDUCT SUCH PROGRAMS BECAUSE WE'VE HAD SOME SITUATIONS WITH PEOPLE TAKING THE LAW INTO THEIR OWN HANDS THE BATTLE WILL PROBABLY CONTINUE LATER THIS SUMMER WHEN RANCHERS MOVE HERDS TO HIGHERELEVATION LAND MUCH OF IT LEASED FROM THE FOREST SERVICE OUR NEXT TARGETS ARE GOING TO BE THE NATIONAL FORESTS SAYS THE HUMANE SOCIETY'S JOHN GRANDY ABOUT A DOZEN YEARS AFTER CONGRESS TURNED THE DISPOSAL OF LOWLEVEL RADIOACTIVE WASTES OVER TO THE STATES NEW SITING EFFORTS CONTINUE TO FOUNDER AND STATES WITHOUT SITES ARE BEGGING FOR BURIAL SPACE FROM THOSE THAT HAVE THEM THE SITUATION IN TEXAS IS INDICATIVE OF THE TURMOIL OVER WHAT TO DO WITH CONTAMINATED TOOLS CLOTHING AND OTHER MATERIALS FROM HOSPITALS UNIVERSITY LABS AND POWER PLANTS IN APRIL CONNECTICUT OFFERED TEXAS 100 MILLION FOR SPACE IN A DISPOSAL FACILITY THAT HAS YET TO BE BUILT OR EVEN CONCLUSIVELY SITED THOUGH A LOCATION IN SPARSELY POPULATED HUDSPETH COUNTY HAS BEEN PROPOSED TEXAS REJECTED CONNECTICUT'S ENTREATIES CLAIMING THE EASTERN STATE'S HEAVY VOLUME WOULD EXCEED A TEXASMANDATED CAP ON OUTOFSTATE WASTES BUT TO AVERT A LEGAL CHALLENGE THAT MIGHT RESULT FROM A TOTAL BAN ON OUTOFSTATE WASTE TEXAS HAS AGREED TO ACCEPT SHIPMENTS FROM VERMONT AND MAINE SMALLER GENERATORS THAT WILL EACH PAY 25 MILLION THE CONFUSION RESULTS IN PART FROM A COMPACT BY SOUTHEASTERN STATES WHICH PLAN TO STOP ACCEPTING OUTOFREGION WASTE NEXT YEAR IN BARNWELL SC THE LAST SITE IN THE NATION TAKING WASTE FROM AROUND THE US THE TEXASVERMONTMAINE COMPACT IS ONE OF THE FEW THAT HAS SETTLED ON A NEW SITE STILL LEGAL CHALLENGES DOOMED AN EARLIER BID TO SITE A FACILITY IN HUDSPETH AND THIS MONTH TWO CITIZENS GROUPS THERE FILED A FEDERAL LAWSUIT SEEKING TO BLOCK THE CURRENT EFFORT WICHITA KANSAS SEEMED TO HAVE A SUPERFUND NIGHTMARE ON ITS HANDS TWO YEARS AGO WHEN A SIXSQUAREMILE AREA OF CONTAMINATION WAS DETECTED BENEATH ITS BUSINESS DISTRICT THOUGH THE CONTAMINATION PRIMARILY INDUSTRIAL DEGREASERS HADN'T CAUSED NOTICEABLE HEALTH PROBLEMS ITS DISCOVERY THREW THE LOCAL ECONOMY INTO A DEEP FREEZE AS LIABILITYLEERY LENDERS STOPPED MAKING LOANS IN THE AREA HALTING HOME SALES BUSINESS EXPANSIONS AND A MAJOR DOWNTOWN REDEVELOPMENT PROGRAM BUT INSTEAD OF WATCHING ITS ECONOMY WITHER WHILE IT WAITED FOR THE ENVIRONMENTAL PROTECTION AGENCY TO BEGIN A CLEANUP WICHITA MOVED ON ITS OWN AIMING TO AVOID THE COSTLY COURT BATTLES OVER LIABILITY THAT HAVE DELAYED MOST SUPERFUND CLEANUPS THE CITY DECLARED IT WOULD ACCEPT FINANCIAL RESPONSIBILITY FOR THE CLEANUP NOW ESTIMATED TO COST 20 MILLION AND SEEK CONTRIBUTIONS FROM POTENTIALLY RESPONSIBLE PARTIES LATER THAT STRATEGY WAS SUPPORTED BY LOCALLY BASED COLEMAN WHICH ACKNOWLEDGED EARLY ON THAT IT WAS RESPONSIBLE FOR SOME OF THE POLLUTION AND THE KANSAS LEGISLATURE WHICH PASSED A BILL ALLOWING THE CITY TO USE AS MUCH AS 20 OF THE PROPERTY TAX REVENUE COLLECTED IN THE CONTAMINATED AREA FOR CLEANUP COSTS MEANWHILE WICHITA ISSUED HUNDREDS OF CERTIFICATES OF RELEASE TO NONPOLLUTING DOWNTOWN PROPERTY OWNERS STATING THAT THE CITY WOULD ASSUME LIABILITY FOR CLEANING UP ANY CONTAMINATION BENEATH THEIR PROPERTY THE MOVE QUICKLY SPURRED THE CITY'S SIX LARGEST BANKS TO RESUME LENDING AND OTHERS FOLLOWED THE CITY GOVERNMENT EXPECTS TO ANNOUNCE ITS OVERALL CLEANUP PLAN LATER THIS SUMMER ALONG WITH A LIST OF POSSIBLE POLLUTERS THAT IT WILL ASK TO CONTRIBUTE MEANWHILE COLEMAN HAS ALREADY INSTALLED PUMPS TO BEGIN CLEANING UP HOT SPOTS DOWNTOWN PROPERTY VALUES ARE CLIMBING AND THE INNOVATIVE STRATEGY HAS WON THE CITY A 100000 AWARD FROM THE FORD FOUNDATION PART OF WHICH WILL BE USED TO PUT TOGETHER A HOWTO MANUAL FOR OTHER LOCAL GOVERNMENTS ENVIRONMENTAL INDUSTRY REVENUES IN THE US HIT 134 BILLION IN 1992 UP 39 FROM 1991 BUT BELOW THE DOUBLEDIGIT GROWTH OF THE LATE 1980S ACCORDING TO ENVIRONMENTAL BUSINESS INTERNATIONAL A TRADE JOURNAL PUBLISHER AMID THE DEBATE OVER THE IMPACT OF A FREE TRADE ACCORD ON THE SOUTHWEST BORDERLANDS REP RON COLEMAN A TEXAS DEMOCRAT HAS PROPOSED CREATING A NEW EPA ENFORCEMENT REGION ALONG THE BORDER NOW DIVIDED BETWEEN DISTANT REGIONAL EPA OFFICES IN DALLAS AND SAN FRANCISCO REP COLEMAN'S BILL SUGGESTS LOCATING ITS HEADQUARTERS ROUGHLY HALFWAY BETWEEN SAN DIEGO AND BROWNSVILLE TEXAS THE INTERIOR DEPARTMENT'S BUREAU OF LAND MANAGEMENT IS RESPONSIBLE FOR FILING THE ENVIRONMENTAL ASSESSMENTS RELATED TO A DISPUTE OVER FEDERAL PREDATOR CONTROL EFFORTS ON BLM LAND IN THE WEST IN YESTERDAY'S ENVIRONMENT COLUMN IT WAS INCORRECTLY STATED THAT THE AGRICULTURE DEPARTMENT'S ANIMAL DAMAGE CONTROL OFFICE MAKES SUCH FILINGS THE ADC DRAFTS PREDATOR CONTROL PLANS THAT THE BLM THEN EVALUATES AS PART OF ITS ENVIRONMENTAL ASSESSMENT SEE RELATED LETTER LETTERS TO THE EDITOR COYOTES ARE SMART ADAPTABLE PLENTIFUL WSJ JULY 20 1993 9306220138 YY93 MM07 9307200015 930625 THE GREAT SATAN WINS ONE BY STEVEN EMERSON THE ARRESTS YESTERDAY IN NEW YORK OF EIGHT MILITANT MUSLIM FUNDAMENTALISTS ON CHARGES OF PLOTTING TO BLOW UP THE UNITED NATIONS TWO TUNNELS UNDER THE HUDSON RIVER AND A FEDERAL OFFICE BUILDING SHOULD LAY TO REST ANY NOTION THAT RADICAL ISLAMIC FUNDAMENTALISM IS ONLY A MIDDLE EAST PROBLEM THE ARRESTS COMING CLOSE ON THE HEELS OF FEBRUARY'S WORLD TRADE CENTER BOMBING SHOW FIRMLY THAT THE FUNDAMENTALIST JIHAD HAS NOW TAKEN AIM AT THE HEART OF THE GREAT SATAN AND WHILE THE LAW ENFORCEMENT OFFICIALS WHO MADE THE ARRESTS YESTERDAY DESERVE CREDIT FOR THEIR BRILLIANT DETECTIVE WORK ULTIMATELY THE PROBLEM CANNOT BE TREATED AS A LAW ENFORCEMENT PROBLEM ONLY THE PROBLEM CAN BE SOLVED ONLY IN THE LARGER CONTEXT OF A COMPREHENSIVE SOLUTION INVOLVING LEGISLATIVE DIPLOMATIC AND INTELLIGENCE AGENCIES THERE ARE IMPORTANT LESSONS FOR THE FUTURE FIRST RADICAL ISLAMIC FUNDAMENTALISM CANNOT BE RECONCILED WITH THE WEST THE HATRED OF THE WEST BY MILITANT ISLAMIC FUNDAMENTALISTS IS NOT TIED TO ANY PARTICULAR ACT OR EVENT RATHER FUNDAMENTALISTS EQUATE THE MERE EXISTENCE OF THE WEST ITS ECONOMIC POLITICAL AND CULTURAL SYSTEMS AS AN INTRINSIC ATTACK ON ISLAM THE SOONER AMERICANS REALIZE THAT NO COMPROMISE OR RECONCILIATION IS POSSIBLE THE SOONER RADICAL FUNDAMENTALISTS WILL REALIZE THAT THE WEST CANNOT BE MANIPULATED A RECENT ARTICLE IN A FUNDAMENTALIST PERIODICAL CALLED KHILAFAH MAGAZINE PUBLISHED IN BRITAIN IS ENTITLED CAPITALISM IT'S A CRIME THE ARTICLE URGES MUSLIMS IN THE WEST TO REJECT CAPITALISM AND NOT TO OBEY WESTERN TREATIES SUCH AS NATO AND CALLS DEMOCRACY A SIN AGAINST ISLAM SHEIK OMAR ABDELRAHMAN THE BLIND MUSLIM CLERIC WHO LIVES IN NEW JERSEY AND IS THE SPIRITUAL MENTOR OF SEVERAL OF THE SUSPECTS IN THE WORLD TRADE CENTER BOMBING ROUTINELY CALLS THE US A DEN OF EVIL AND FORNICATION THE TERMS FOREIGN AND DOMESTIC DO NOT APPLY ONE OF THE POINTS MADE AT THE FBI'S PRESS CONFERENCE YESTERDAY WAS THAT THERE WAS NO EVIDENCE OF FOREIGN INVOLVEMENT FOR ALL PRACTICAL PURPOSES THIS IS A MEANINGLESS STATEMENT MILITANT ISLAMIC FUNDAMENTALISM TRANSCENDS ALL BORDERS INCREASINGLY RADICAL ORGANIZATIONS SUCH AS THE JIHAD GROUP CENTERED AROUND SHEIK ABDELRAHMAN THE PALESTINIAN HAMAS AND THE LEBANESE HEZBOLLAH HAVE ESTABLISHED INFRASTRUCTURES IN THE US GERMANY AND BRITAIN IN ADDITION TO THEIR BASES OF OPERATION THROUGHOUT THE MIDDLE EAST THERE IS NO ONE RINGLEADER OR COUNTRY ORCHESTRATING THE ATTACKS WHILE THERE IS NO DOUBT THAT IRAN AND SUDAN PROVIDE MONEY AND TRAINING TO ISLAMIC FUNDAMENTALISTS IN THE MIDDLE EAST THE EMERGENCE OF FUNDAMENTALIST TERRORIST ATTACKS IN THE WEST IS PART OF THE DECENTRALIZED STRUCTURE IN WHICH FUNDAMENTALISTS SCATTERED AROUND THE WORLD ASSUME THE OBLIGATION TO STRIKE BLOWS AGAINST THE WEST IN THEIR OWN COMMUNITIES THIS MEANS SAYING SOMETHING THAT IS POLITICALLY INCORRECT THAT ALL MILITANT RADICAL FUNDAMENTALISTS ARE POTENTIAL MEMBERS OF THIS LOOSE FEDERATION OF TERRORISTS MEMBERS OF THE ISLAMIC FUNDAMENTALIST NETWORK CANNOT BE CLASSIFIED UNDER ONE NATIONALITY OR POLITICAL ALLEGIANCE THOSE ARRESTED IN THE WORLD TRADE CENTER BOMBING AND THE ABORTED ATTACKS YESTERDAY COME FROM SUDAN EGYPT THE WEST BANK AND GAZA JORDAN AND PAKISTAN NOT INSIGNIFICANTLY THEY ALSO INCLUDE AT LEAST TWO AMERICANS THIS SHOWS THAT IN A SENSE THERE NOW EXISTS AN ISLAMIC INTERNATIONALE SAYS KHALID DURAN A MUSLIM EXPERT ON FUNDAMENTALISM AT THE FREE UNIVERSITY OF BERLIN THESE MILITANTS COLLABORATE WITH ONE ANOTHER THUS PUTTING ASIDE ANY LOCAL CULTURAL AND REGIONAL POLITICAL DIFFERENCES THE POLITICAL AND RELIGIOUS ARMS OF RADICAL ISLAMIC FUNDAMENTALISM ARE ONE AND THE SAME TRADITIONALLY TERRORIST GROUPS HAVE ESTABLISHED SEPARATE CELLS WHOSE ONLY MISSION WAS TO CARRY OUT TERRORISM THIS MADE PENETRATION BY LAWENFORCEMENT AGENCIES RELATIVELY EASY RADICAL ISLAMIC FUNDAMENTALISTS HOWEVER USE THEIR MOSQUES AND THEIR RELIGIOUS LEADERS TO FORM THE NUCLEUS OF THEIR TERRORIST INFRASTRUCTURE MOREOVER THE TRADITIONAL IMMUNITY GIVEN TO RELIGIOUS INSTITUTIONS CAN NO LONGER APPLY IF THE BATTLE AGAINST ISLAMIC FUNDAMENTALIST TERRORISM IS TO BE WON ONE POSITIVE SIGN EMERGED YESTERDAY AFTER THE WORLD TRADE CENTER BOMBING THE FBI REFUSED TO ISSUE AN ARREST WARRANT FOR SHEIK ABDELRAHMAN'S JERSEY CITY HOME THEY SAID THEY WERE NOT INTERESTED IN HIM THE FBI PLANNED TO EXECUTE ONE YESTERDAY THE US NEEDS TO ADOPT A COORDINATED ANTITERRORISM STRATEGY INVOLVING THE ENTIRE WEST AND OUR MANY DOMESTIC LAW ENFORCEMENT AND INTELLIGENCE AGENCIES TODAY COLLABORATION OCCURS ONLY WHEN THERE IS AN IMMEDIATE THREAT OF VIOLENCE AN INTERNATIONAL DATA BASE WHICH DOES NOT NOW EXIST WOULD ALLOW ALL COUNTRIES TO KEEP TABS ON POTENTIAL TERRORISTS AT ALL TIMES CONGRESS SHOULD PASS LEGISLATION INTRODUCED BY REP BENJAMIN GILMAN R NY THAT WOULD COMPUTERIZE THE STATE DEPARTMENT'S CONSULAR AND VISA DATA BASES CONGRESS SHOULD ALSO REJECT THE STATE DEPARTMENT'S PROPOSAL TO DOWNGRADE THE OFFICE OF COUNTERTERRORISM AND CUT THE BUDGET OF VARIOUS ANTITERRORISM PROGRAMS IN THE BUREAU OF DIPLOMATIC SECURITY THE US MUST LEND SUPPORT TO THE OVERWHELMINGLY VAST MAJORITY OF MODERATES IN AMERICA'S MUSLIM COMMUNITY IN THE PAST THE VAST MAJORITY OF LAWABIDING MUSLIM AMERICANS HAVE BEEN INTIMIDATED BY THE FEW MILITANTS IN THEIR RANKS THEY HAVE FEARED TO SPEAK OUT AGAINST TERRORIST ACTS WITH ENOUGH ENCOURAGEMENT FROM OUR PUBLIC OFFICIALS ALONG WITH ASSURANCES OF PHYSICAL PROTECTION THIS TREND COULD BE TURNED AROUND IT TOOK THE FBI 20 YEARS TO INFILTRATE THE MAFIA UNLESS THERE IS AN INTEGRATED APPROACH TO COUNTERACT RADICAL ISLAMIC TERRORISM YESTERDAY'S VICTORY WILL BE SHORTLIVED SO FAR THIS YEAR THE US HAS ONE VICTORY AND ONE FAILURE AGAINST RADICAL ISLAMIC TERRORISTS A 50 SUCCESS RATE ISN'T GOOD ENOUGH MR EMERSON WRITES FREQUENTLY ON TERRORISM JOSEPH BRAUDE PROVIDED RESEARCH FOR THIS ARTICLE SEE RELATED LETTERS LETTERS TO THE EDITOR TRUE ISLAM CONDEMNS TERRORISM WSJ JULY 20 1993 9306250009 YY93 MM07 9307190169 930629 WURST IDEA GERMAN EXAMPLE BAD FOR BILL BY JOHN H FUND IN THE MOVIE THE GRADUATE DUSTIN HOFFMAN'S CHARACTER ATTENDS A PARTY AFTER RETURNING HOME FROM COLLEGE THERE AN OBNOXIOUS OLDER MAN TELLS HIM HE CAN SUM UP WHAT WILL ENSURE HIS SUCCESS IN JUST ONE WORD PLASTICS SIMILARLY WHEN CLINTON POLICY WONKS MUST EXPLAIN WHERE THEIR IDEAS HAVE BEEN TRIED THEY OFTEN FALL BACK ON A ONEWORD MANTRA GERMANY MUCH OF THE CLINTON ADMINISTRATION HAS A QUIET LOVE AFFAIR WITH GERMAN SOCIAL DEMOCRACY GERMANS STILL VERY MUCH BELIEVE THAT GOVERNMENT CAN SOLVE PROBLEMS AND SO DOES BILL CLINTON MANY IDEAS PROPOSED OR FLOATED BY CLINTON OFFICIALS STRONGLY RESEMBLE GERMANY'S SOCIAL MARKET ECONOMY NATIONAL HEALTH CARE BASED ON HUGE INSURANCEPURCHASING COOPERATIVES ENERGY TAXES A GREATER ROLE FOR UNIONS INDUSTRIAL POLICY A VALUEADDED TAX AND STRICT RECYCLING LAWS IT'S SURPRISING HOW MUCH OF THE GERMAN ECONOMIC MODEL CLINTON IS TRYING TO ADOPT SAYS CHRISTIAN TENBROCK US CORRESPONDENT FOR THE GERMAN NEWSPAPER DIE ZEIT HE SHOULDN'T BE SURPRISED MOST POLITICIANS ARE CAPTIVES OF THE IDEAS THEY HAD IN THEIR 20S THEY SELDOM REEVALUATE THEM ONCE IN THE ELECTORAL RAT RACE DURING MR CLINTON'S 196869 SOJOURN IN BRITAIN HIS FIRST TRIP TO THE CONTINENT WAS TO GERMANY AT THE TIME IT ALONG WITH SWEDEN WAS A MODEL WELFARE STATE ITS STRUCTURAL WEAKNESSES REMAINED HIDDEN FOR ANOTHER DECADE SO MR CLINTON BECAME ATTRACTED TO THE UNTROUBLED GERMANY OF HIS YOUTH TODAY HE SPEAKS RUSTY GERMAN WITH HIS DAUGHTER LAST YEAR HE PICKED CHELSEA UP FROM HER REGULAR GERMAN LANGUAGE CAMP IN MINNESOTA LLOYD BENTSEN INTRODUCED ME TO BILL CLINTON AS THE GERMAN FINANCE MINISTER FROM BAVARIA THEREUPON HIS FACE SHONE WITH JOY AND HE SAID HE KNEW BAVARIA VERY WELL ENTHUSED THEO WAIGEL ON GERMAN RADIO WHAT HARDLY ANYONE KNOWS IS THAT CLINTON HAS LEARNED GERMAN INTENSIVELY UNDERSTANDS IT WELL AND EVEN READS DOCUMENTS IN GERMAN BUT HE OBVIOUSLY HASN'T READ RECENT DOCUMENTS ON GERMANY'S ECONOMIC CRISIS LAST YEAR HE CLAIMED AMERICA HAD TO CATCH UP WITH THE HIGHGROWTH ECONOMIES OF EUROPE BUT THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT NOTES THAT IN THE EUROPEAN COMMUNITY THERE HAS BEEN ALMOST NO JOB GROWTH IN THE PRIVATE SECTOR THE FORMER WEST GERMANY HAD 261 MILLION JOBS IN 1970 AND HAD ADDED ONLY 18 MILLION JOBS BY 1990 JOEL KOTKIN A DEMOCRAT WHO HAS WRITTEN ON AMERICA'S ENTREPRENEURIAL CULTURE SAYS LABOR SECRETARY ROBERT REICH AND HEALTHCARE GURU IRA MAGAZINER HAVE A FATAL ATTRACTION FOR HIGHLY STATIST EUROPEAN POLICIES THIS EUROPHILIA IGNORES THE DIFFERENCES BETWEEN THE CONTINENT AND THE US AMERICA ISN'T JUST MINNESOTA AND IOWA IT'S A VERY DIVERSE COUNTRY ILLSUITED TO A TAX AND REGULATORY REGIME THAT TILTS TOWARD JOBLOSING FORTUNE 500 FIRMS NONETHELESS MR REICH HAS PRAISED GERMAN BAILOUTS OF LARGE FIRMS HE ALSO ADMIRES RIGHTLY TO SOME EXTENT GERMAN WORKER TRAINING PROGRAMS THE WAGES ARE HIGHER AND THE SKILLS ARE HIGHER IN GERMANY HE SAYS WE DO HAVE TO THINK ABOUT HOW TO TAKE THE BEST OF THE GERMAN SYSTEM AND COMBINE IT WITH WHAT WE HAVE HERE NORBERT WALTER CHIEF ECONOMIST FOR DEUTSCHE BANK GERMANY'S BIGGEST IS ASTONISHED THAT CLINTON ADVISERS SUCH AS MR REICH AND ALAN BLINDER WANT TO EMULATE GERMANY US ACADEMICS ARE PARTICULARLY FOND OF THE GERMAN MODEL AND THEY ARE DEEPLY TROUBLED WHEN YOU TELL THEM IT DOESN'T WORK ANYMORE MR WALTER COMPARES GERMANY'S CORPORATIST SOCIETY TO A CAR GEARED TO THE AUTOBAHN BUT IT'S IN TROUBLE ON A BUMPY ROAD AND CAN'T ADJUST TO NEW CHALLENGES THE GERMAN MODEL HAS OUTLIVED ITS WELCOME HE SAYS WILFRIED PREWO HEAD OF THE LOWER SAXONY CHAMBER OF COMMERCE WARNS AMERICANS NOT TO CATCH THE GERMAN DISEASE TAXES AND SPENDING GO UP IN PROSPEROUS TIMES BUT DURING RECESSIONS THEY NEVER DECLINE AND MAY EVEN GO UP SPENDING IS RATCHETED UPWARD UNTIL THE OVERALL ECONOMY BECOMES PERMANENTLY WEAK BUT THE CLINTON ADMINISTRATION MAY BE THE CARRIER OF THIS ECONOMIC VERSION OF GERMAN MEASLES TO AMERICA IT HAS BROUGHT GERMAN HEALTHCARE EXPERTS TO WASHINGTON FOR ADVICE MR PREWO SAYS THE CLINTON HEALTHPLAN OUTLINE EERILY RESEMBLES GERMANY'S SYSTEM REGIONAL INSURANCE MONOPOLIES THAT COLLECT TAXES AND BUY HEALTH COVERAGE MR PREWO CAUTIONS GERMANY TOO HAS A HEALTHCARE CRISIS IN FACT ITS OUTLAYS INCREASED FASTER THAN AMERICA'S IN THE 1980S CLINTON DEMOCRATS ALSO SEEM TO PREFER GERMANY'S SOCIAL CONTRACT IN WHICH GROUP RIGHTS SUPERSEDE THOSE OF THE INDIVIDUAL THEY FORGET THAT GERMANY'S SOLIDARITAETSPRINZIP IS THE RESULT OF SUCCESSIVE GENERATIONS HAVING TO SACRIFICE AND REBUILD A SOCIETY THEY MAY FIND MUCH IN THAT CONTRACT THAT'S ADMIRABLE BUT IT SHOULDN'T BE GRAFTED ONTO THE NEW WORLD WHERE IT COULD LEAD TO BALKANIZATION GERMANY HAS SENT AMERICA MANY WORTHWHILE IMPORTS FROM CHRISTMAS TREES TO ROCKET SCIENTISTS AND BMWS I MYSELF HAVE A GERMAN MOTHER LIVED SEVERAL YEARS OF MY YOUTH THERE AND AM A GERMAN IMPORT OF SORTS BUT THERE'S NO BENEFIT IN IMPORTING WORNOUT MODELS OF SOCIAL DEMOCRACY THAT NO LONGER WORK WELL ANYWHERE KEEPING SUCH FLAWED IDEAS AT OCEAN'S LENGTH IS A FORM OF PROTECTIONISM AMERICANS SHOULD ENDORSE THAT'S BECAUSE SUCH IMPORTS WOULD SIGNAL AN END TO AMERICAN EXCEPTIONALISM THE BELIEF THAT SINCE THE US IS THE ONLY NATION FOUNDED ON THE IDEA OF INDIVIDUAL LIBERTY IT SHOULD LARGELY STEER ITS OWN INDEPENDENT COURSE RONALD REAGAN OFTEN SPOKE ABOUT HIS VISION OF AMERICA AS A SHINING CITY ON A HILL INSTEAD THE VISION MANY CLINTONITES HAVE IS ONE OF AMERICANS CLUSTERED AROUND THE BOTTOM OF A GREAT HILL THEIR LIVES GUIDED BY A NEW CLASS OF EXPERTS WHO LOOK FOR INSPIRATION TO THE MODEL CITY ERECTED ABOVE THEM BY THEIR EUROPEAN BETTERS AMERICANS COULD THEN KISS THEIR PROSPERITY AUF WIEDERSEHEN MR FUND IS A JOURNAL EDITORIAL WRITER SEE RELATED LETTER LETTERS TO THE EDITOR WHY NOT EMULATE GERMAN SUCCESS WSJ JULY 19 1993 9306290095 YY93 MM07 9307190109 930621 RETAILING NEW ALLEGATIONS SUGGEST BROADER PATTERN OF SUSPECT PRACTICES AT HOME SHOPPING BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN 1990 AS HOME SHOPPING NETWORK INC RACKED UP 50 MILLION IN SALES OF CELEBRITY COSMETICS AND JEWELRY CHAIRMAN ROY SPEER APPROACHED THE ITEMS' SUPPLIER A SMALL VENDOR THAT USED PHYLLIS DILLER AS ITS UNLIKELY PITCHMAN AND MADE AN ODD PROPOSAL MR SPEER WANTED A 50 STAKE IN THE COMPANY IN EXCHANGE FOR ARRANGING A 10 MILLION LINE OF CREDIT SAYS THE VENDOR LOUIS KNICKERBOCKER HE SAYS HE INITIALLY ACCEPTED THE OVERTURE BUT GOT COLD FEET WHEN MR SPEER SPECIFIED THE TERMS THE STAKE HAD TO BE HIDDEN AFTER MR KNICKERBOCKER DECLINED HE SAYS MR SPEER SUMMARILY CUT OFF ALL ORDERS TO THE COMPANY LAVIE COSMETICS INC AFTER THE VENDOR STARTED SUPPLYING RIVAL QVC NETWORK INC MR SPEER KEPT TRACK OF THE GOINGSON BY LINING UP AN INSIDE SPY LAVIE'S NO 2 EXECUTIVE MR KNICKERBOCKER CHARGES A FORMER HOME SHOPPING EXECUTIVE CONFIRMS THE ACCOUNT AND ADDS THAT IN RETURN HOME SHOPPING SIGNED THE NO 2 EXECUTIVE AS A NEW VENDOR GIVING HIM 200000 IN UPFRONT CREDIT MR KNICKERBOCKER MAY SOON GET TO TELL HIS TALE OF CORPORATE INTRIGUE TO A FEDERAL GRAND JURY IN TAMPA FLA THAT HAS BEEN INVESTIGATING A SNARL OF ALLEGATIONS OF COMMERCIAL BRIBES HIDDEN VENDOR STAKES HUSHMONEY PAYMENTS AND ORGANIZEDCRIME TIES AT HOME SHOPPING THE GRAND JURY HAS ALREADY ATTEMPTED TO SUBPOENA MR KNICKERBOCKER AT AN OLD ADDRESS HE HAS SINCE SUPPLIED HIS NEW ONE HIS ACCOUNT IS PART OF A BODY OF NEW ALLEGATIONS THAT SUGGEST A WIDER PATTERN OF QUESTIONABLE PRACTICES AT HOME SHOPPING THAN WAS PREVIOUSLY THOUGHT THE GRAND JURY LED BY THE US ATTORNEY IN TAMPA HAS JOINED FORCES WITH A SECOND GRAND JURY BASED IN TAMPA THE SECURITIES AND EXCHANGE COMMISSION THE INTERNAL REVENUE SERVICE AND THE FLORIDA DEPARTMENT OF LAW ENFORCEMENT TO INVESTIGATE ACCORDING TO PEOPLE FAMILIAR WITH THE CASE SINCE THE HOME SHOPPING SCANDAL FIRST BROKE EARLIER THIS YEAR NEW REVELATIONS HAVE EMERGED FROM COURT FILES STATE RECORDS AND INTERVIEWS AMONG THEM ROY SPEER'S WIFE LYNNDA SPEER AND HIS CLOSEST ADVISER FRANCIS R SANTANGELO WERE SECRET OWNERS WITH OTHER PARTNERS IN AN OFFSHORE COMPANY THAT BOUGHT IRISH CRYSTAL AND RESOLD IT TO HOME SHOPPING REPORTEDLY AT A BIG MARKUP FEDERAL INVESTIGATORS HAVE IDENTIFIED SOME 20 OFFSHORE COMPANIES THAT THEY BELIEVE ARE IN SOME WAY INVOLVED IN THE SPREADING SCANDAL PEOPLE FAMILIAR WITH THE PROBE SAY MR SPEER APPROACHED A TSHIRT SUPPLIER ABOUT STARTING A TSHIRT VENTURE AND SUGGESTED GIVING HIS SON RICHARD AN OWNERSHIP STAKE SAYS BURTON ZWEIGENHAFT THE SUPPLIER RICHARD SPEER PLAYED A PIVOTOL ROLE IN A SIDE VENTURE SELLING DESERT STORM TSHIRTS THAT LED TO A FRACTIOUS THREEWAY LEGAL BATTLE OVER THE DISAPPEARANCE OF AROUND 1 MILLION IN STATE COURT IN MARYLAND AND FEDERAL COURTS IN NEW YORK THE MONEY STILL HASN'T BEEN ACCOUNTED FOR RICHARD SPEER ISN'T NAMED AS A DEFENDANT A PILLOW SUPPLIER KNOWN AS CALIFORNIA FEATHER & DOWN SET UP A PLANT AND SHIPPING CENTER IN SPARKS NEV IT LEASED THE SPACE FROM CRYSTAL DIAMOND INC A COMPANY THAT ROY SPEER CONTROLS ACCORDING TO NEVADA RECORDS THE VENDOR THEN REAPED MILLIONS OF DOLLARS IN ORDERS FROM HOME SHOPPING EVEN AFTER SOME PRODUCTS FAILED QUALITY TESTS FORMER EXECUTIVES SAY JEFF GOLDMAN OF CALIFORNIA FEATHER WHILE ACKNOWLEDGING THAT HE LEASED THE BUILDING FROM MR SPEER DENIES THERE WAS A CONNECTION BETWEEN THE LEASE AND ORDERS FROM HOME SHOPPING HE DESCRIBES HIS RELATIONSHIP WITH THE COMPANY AS A VERY LEGITIMATE SITUATION ADDING THAT HE IS PAYING MR SPEER A FAIR MARKET VALUE FOR THE SPACE AND THAT HIS PILLOW PRICING IS VERY COMPETITIVE MR GOLDMAN ALSO SAYS ANOTHER PILLOW VENDOR DOES SIGNIFICANT BUSINESS WITH HOME SHOPPING LIBERTY MEDIA CORP WHICH ACQUIRED CONTROL OF HOME SHOPPING FROM MR SPEER LAST DECEMBER SAYS IT CONTINUES TO INVESTIGATE VARIOUS ALLEGATIONS AND DECLINED TO COMMENT FURTHER MR SPEER WHO CONTINUES AS CHAIRMAN OF HOME SHOPPING DECLINED TO COMMENT RICHARD SPEER COULDN'T BE REACHED FOR COMMENT THE SEC AND FEDERAL GRAND JURY BEGAN LOOKING INTO MANY ALLEGATIONS EARLIER THIS YEAR AFTER A FLURRY OF CHARGES AROSE IN LAWSUITS BROUGHT BY FORMER EXECUTIVES VENDORS AND SHAREHOLDERS BUT FLORIDA INVESTIGATORS BEGAN THEIR PROBE MORE THAN A YEAR BEFORE THAT ASKING ABOUT A VARIETY OF THINGS INCLUDING OFFSHORE BANK ACCOUNTS AND THE ACTIVITIES OF MR SPEER'S ADVISER MR SANTANGELO AND HIS ACCOUNTANT RICHARD BAKER SOME LAWSUITS HAVE HINTED AT SECRET STAKES IN SUPPLIERS BUT THE CASE OF LAVIE COSMETICS PROVIDES THE FIRST DETAILED CHARGES THAT MR SPEER DIRECTLY SOUGHT SUCH AN INTEREST MR KNICKERBOCKER A CALIFORNIAN WHO FORMERLY OWNED A RESTAURANT CHAIN SAYS HE INTRODUCED CELEBRITYPRODUCT PROMOTION TO HOME SHOPPING VIEWERS IN 1987 WHEN HE BALKED AT MR SPEER'S PROPOSAL FOR A HIDDEN STAKE HE ASSERTS MR SPEER SUGGESTED PUTTING IT IN THE NAME OF MR SANTANGELO BEFORE LONG MR KNICKERBOCKER WAS OUT AS A VENDOR LATER HE SAYS HE ACCIDENTALLY DISCOVERED THAT HIS EXECUTIVE VICE PRESIDENT PADDY COSTELOE WAS LEAKING INFORMATION TO MR SPEER WHEN MR COSTELOE'S WIFE INADVERTENTLY SENT MR KNICKERBOCKER A FAX INTENDED FOR MR SPEER LAVIE COSMETICS PROMPTLY FIRED MR COSTELOE MR KNICKERBOCKER DIDN'T KNOW THEN HE SAYS THAT MR COSTELOE HAD RECEIVED A 200000 ADVANCE FROM HOME SHOPPING TO LAUNCH HIS OWN SUPPLIER COMPANY OVER THE MOON INC FORMER HOME SHOPPING EXECUTIVES SAY THE PAYMENT WAS EXTREMELY UNUSUAL THE CHANNEL TYPICALLY PAYS 30 TO 45 DAYS AFTER ORDERING ASKED TO COMMENT MR COSTELOE CALLED THE DESCRIPTION OF HIS ROLE IN THE EPISODE RIDICULOUS HE REFUSED FURTHER COMMENT AND HUNG UP THE PHONE HE DIDN'T RESPOND TO SUBSEQUENT MESSAGES THE SETUP UNDER WHICH MR SPEER'S WIFE BECAME PART OWNER OF A HOME SHOPPING SUPPLIER BEGAN IN MID1988 AFTER HOME SHOPPING TRIED TO BUY CRYSTAL FROM WATERFORD/WEDGWOOD IN IRELAND BUT WAS SPURNED BECAUSE OF ITS LOWBROW IMAGE MR SANTANGELO SOUGHT OTHER SUPPLIERS IN IRELAND EVENTUALLY CONTACTING KEVIN B MULCAHY A FORMER NEIGHBOR IN NEW YORK WHO HAD RELOCATED THERE MR MULCAHY LINED UP CRYSTAL SUPPLIERS AND LINKED THEM WITH A COMPANY KNOWN AS SARIDO TRADING LTD HE CONFIRMS IN A PHONE INTERVIEW FROM IRELAND SARIDO ORDERED THE CRYSTAL AND RESOLD IT TO HOME SHOPPING AT ABOVE MARKET VALUE FORMER HOME SHOPPING EXECUTIVES SAY CORPORATE DOCUMENTS SHOW THAT SARIDO WAS SET UP ON THE ISLE OF JERSEY IN 1988 AND ITS SHARES WERE LISTED IN THE NAMES OF NOMINEES WHO REPRESENTED THE ACTUAL OWNERS DOCUMENTS OBTAINED BY THE WALL STREET JOURNAL LIST THE REAL OWNERS AS MRS SPEER MR MULCAHY MR SANTANGELO AND THREE OF MR SANTANGELO'S BUSINESS PARTNERS JOHN CASSIDY AND HIS SON KEVIN AND VINCENT RESTIVO IT ISN'T CLEAR HOW MUCH MONEY SARIDO'S OWNERS POCKETED FOR ACTING AS INTERMEDIARIES IN AN INTERVIEW MRS SPEER SAID SHE KNEW NOTHING ABOUT SARIDO OR ABOUT ANY OF HOME SHOPPING'S OR HER HUSBAND'S BUSINESS AFFAIRS THAT IS SOMETHING THAT ROY DID SHE SAID OF SARIDO FOR THE MOST PART I RUN THE HOUSE AND ROY TAKES CARE OF ALL THE BUSINESS SHE ADDED THAT RICHARD BAKER VERY POSSIBLY COULD HAVE BEEN LISTED AS A NOMINEE SHAREHOLDER IN SARIDO SHE SAID THAT MR BAKER AS THE FAMILY ACCOUNTANT AND A TRUSTEE OF A FAMILY TRUST FOR HER BENEFIT HAD PLAYED SUCH A ROLE IN OTHER COMPANIES MR BAKER DIDN'T RESPOND TO SEVERAL MESSAGES LEFT AT HIS OFFICE SEEKING COMMENT OTHER PEOPLE LISTED AS OWNERS WOULDN'T COMMENT FOR THIS STORY OR COULDN'T BE REACHED FEDERAL AND STATE AUTHORITIES IN PROBING VARIOUS CHARGES ARE BELIEVED TO BE FOCUSING ON THE ROLE PLAYED BY MR SANTANGELO HIS DEALINGS WITH HOME SHOPPING APPEAR TO BE BROADER THAN WAS PREVIOUSLY KNOWN HE INTRODUCED AMGOLD PRODUCTS INC A JEWELRY CONCERN TO HOME SHOPPING NETWORK AMGOLD SOLD THE NETWORK MILLIONS OF DOLLARS IN COLUMBUS COINS THAT WERE A FLOP FORMER HOME SHOPPING EXECUTIVES SAY HOME SHOPPING ADVISERS AND FORMER EXECUTIVES SAY HE TYPICALLY RECEIVED COMMISSIONS FROM BOTH THE NETWORK AND VENDORS HE INTRODUCED BUT THEY DON'T KNOW WHETHER HE RECEIVED COMMISSIONS IN THE CASE OF AMGOLD MR SANTANGELO ALSO WAS A PARTNER IN ANOTHER VENDOR KNOWN AS SANVIR LTD ACCORDING TO HOME SHOPPING ADVISERS AND FORMER EXECUTIVES SANVIR SOLD THE CHANNEL ABOUT 130000 BOTTLES OF PERFUME WHICH HOME SHOPPING SOLD TO ITS VIEWERS AS VANNA WHITEPERFUME AND ELVIS PRESLEY PERFUME AT WHAT FORMER HOME SHOPPING EXECUTIVES SAY WERE PRICES SUBSTANTIALLY HIGHER THAN AVAILABLE FROM OTHER SUPPLIERS AND HE SOLD GOODS TO HOME SHOPPING THROUGH ANOTHER COMPANY IN WHICH HE WAS A PART OWNER PREMIER INTERNATIONAL IMPORTING CO MR SANTANGELO DIDN'T RESPOND TO REPEATED MESSAGES SEEKING COMMENT SEVERAL QUESTIONS WERE SUBMITTED TO HIS ATTORNEY WHO DIDN'T RESPOND AMGOLD'S PART OWNER JUANITA SIEBENBERG SAID THAT SHE KNOWS MR SANTANGELO BUT THAT SHE WASN'T PRIVY TO THE DETAILS OF THE COMPANY'S ARRANGEMENTS WITH HIM SHE SAID HER HUSBAND WHO IS FAMILIAR WITH THE TERMS WAS OUT OF TOWN AND UNAVAILABLE FOR COMMENT SANVIR AND PREMIER INTERNATIONAL COULDN'T BE REACHED FOR COMMENT SEE RELATED LETTER LETTERS TO THE EDITOR NO UNETHICAL DEALINGS WITH HOME SHOPPING WSJ JULY 19 1993 9306210046 YY93 MM07 9307190099 930630 BUTCH & SUNDANCE SHOW DEMOCRATS WHEN TO LEAP CLIFF BY ROBERT L BARTLEY SAN FRANCISCO WHY ARE THEY DOING IT A MEMBER OF A CONSERVATIVE CONGREGATION ASKED PRESIDENT CLINTON'S TAX INCREASES WILL YIELD LESS REVENUE THAN PLANNED AND HIS SPENDING CUTS WILL NEVER MATERIALIZE AS EVERYONE IN THE PEWS UNDERSTOOD EVEN BEFORE THE SERMON THE DEFICIT WILL REMAIN OR EVEN SWELL AND VOTERS WILL REBEL AGAINST TAXES YET THE DEMOCRATS PLUNGE AHEAD WHY GOOD QUESTION THIS PREACHER REPLIED AND MAYBE THE ANSWER IS IN BUTCH CASSIDY AND THE SUNDANCE KID CITED BY THE IRREPRESSIBLE NEWT GINGRICH PAUL NEWMAN AND ROBERT REDFORD LOOK BACK AT THE PINKERTONS POUNDING ACROSS THE PLATEAU AND START TO CLIMB ROCKS OVER AN INCLINE ONLY TO STOP AT A GORGE OVER A RAGING RIVER AS PURSUING GUNMEN TAKE POSITION ON THE RIDGE ABOVE IT LOOKS LIKE THE END NO WE'LL JUMP BUTCH PROPOSES IF THE WATER'S DEEP ENOUGH WE DON'T GET SQUISHED THE POSSE WON'T FOLLOW HE ADDS NO ONE WOULD TAKE THIS JUMP IF HE DIDN'T HAVE TO SUNDANCE I HAVE TO AND I'M NOT GONNA BUTCH WELL WE GOT TO OTHERWISE WE'RE DEAD THEY GRAB ENDS OF A GUN BELT AND CHARGE THE CLIFF LINKED TOGETHER LEAPING SIDEBYSIDE INTO THE RAGING RAPIDS SO THE WHITE HOUSE AND CONGRESSIONAL DEMOCRATS GRAB HANDS AND PLUNGE OVER THE PRECIPICE NO CHOICE RONALD REAGAN'S PINKERTONS HAVE THEM CORNERED THE RIDGE LOOMING BEHIND OF COURSE IS THE DEFICIT BEFORE THE 1980S DEMOCRATS BOOSTED SPENDING AND USED THE DEFICIT TO BLUDGEON FISCALLY RESPONSIBLE REPUBLICANS INTO RAISING TAXES BUT UNDER PRESIDENT REAGAN THE GOP RESIGNED AS THE DEMOCRATS' TAX COLLECTOR HIS TAX CUTS SIMPLY STABILIZED REVENUE AS A PERCENTAGE OF GROSS DOMESTIC PRODUCT BUT SPENDING CONTINUED TO SOAR NOW THAT DEMOCRATS HOLD BOTH THE WHITE HOUSE AND CONGRESS THEY HAVE TO FACE RESPONSIBILITY THEY COULD CHANGE THEIR SPOTS AND CUT SPENDING THEY CAN LET THE DEFICIT CONTINUE TO GROW BUT INTEREST COSTS WILL FURTHER ERODE THEIR ABILITY TO DISPENSE GOODIES OR THEY CAN TRY TO MATCH SPENDING WITH HIGHER REVENUES BY BOOSTING TAXES OVER THE CLIFF NATURALLY THE DEMOCRATS CONTROLLING ALL THE MACHINERY OF GOVERNMENT DEMAND THAT REPUBLICANS TAKE THE HEAT FOR ANY SPENDING CUTS MR CLINTON IS PARTICULARLY UNGRACIOUS ABOUT THIS IGNORING FOR EXAMPLE REP JOHN KASICH'S ENDEAVORS EVEN MORE PERTINENTLY THE DEMOCRATS HAVE FORGOTTEN THEIR ONETIME BUDGET MANTRA DEAD ON ARRIVAL USED TO DISMISS ANY THOUGHT OF SPENDING DISCIPLINE WHEN THE REPUBLICANS RAN OMB AND TREASURY BUT PURSUING REPUBLICANS REMEMBER AND SOLIDLY REFUSE TO GIVE THE FUGITIVES THE LEAST POLITICAL COVER AS THE DEMOCRATS LEAP THE BIG QUESTION IS HOW DEEP IS THE WATER BELOW ECONOMICALLY THEIR BEST HOPE IS THAT FALLING INTEREST RATES OFFSET THE FISCAL DAMAGE WHILE EVEN KEYNESIANS BELIEVE THAT HIGHER TAXES AND SPENDING CUTS ARE AN ECONOMIC DRAG THEY THINK PARING THE DEFICIT WILL KEEP INTEREST RATES HEADED DOWN NOTABLY THIS VIEW PRESUPPOSES THAT THE TAX BOOSTS WILL ACTUALLY PRODUCE ENOUGH REVENUE TO BEND UP THE BOTTOM LINE ON THE CHART WHICH WAS AT ABOUT THE SAME LEVEL WHETHER THE TOP TAX RATE WAS 70 OR 28 POLITICALLY THE DEMOCRATS HOPE TO SHOOT THE TAX RAPIDS IN THE DEEP WATER OF CLASS WARFARE AS PAUL GIGOT HAS REPEATEDLY POINTED OUT CLINTON POLLSTER STANLEY GREENBERG SPELLED IT ALL OUT IN A 1991 ARTICLE IN THE AMERICAN PROSPECT THE REAGAN DEMOCRATS WILL COME BACK TO THE FOLD IF YOU STIR THEIR RESENTMENT AGAINST THE RICH DEMOCRATS PROFESS TO BELIEVE THAT MICHAEL DUKAKIS WOULD HAVE WON IF HE'D STARTED THIS THEME EARLIER SINCE IT PRODUCED HIS SURGE TO A 456 FINISH AND THAT THE CLASSWARFARE THEME ELECTED NEW JERSEY GOV JIM FLORIO AND PENNSYLVANIA SEN HARRIS WOFFORD THE TEXAS SENATE RACE NOT TO MENTION MR CLINTON'S POLL RATINGS SEEMS TO TELL ANOTHER STORY MR FLORIO'S ATTEMPT TO ENACT CLASSWARFARE SPENDING AND TAXES MANAGED TO ELECT A SOLIDLY REPUBLICAN LEGISLATURE THOUGH THE GOP MAY YET SUCCEED IN RESUSCITATING HIM IN ALL THE POLITICAL BET IS THAT THE MIDDLE CLASS CAN BE PERSUADED ONE MORE TIME IT CAN DUCK TAXES ON THE RICH OR ALTERNATIVELY THAT IT WILL BE SO OVERJOYED BY NATIONAL HEALTH CARE IT WILL ANTE UP FROM SHEER GRATITUDE THE ECONOMIC BET ADMITTEDLY CAN TAKE SOME COMFORT FROM THE FINANCIAL MARKETS IF THE BILL IS THAT BAD WHY ARE STOCKS AND BONDS REACHING NEW HIGHS EVEN GRUDGINGLY LIKELY EVERYONE IS TRYING TO CRAM INCOME INTO THE PRESENT TO BEAT FUTURE TAXES AND INTO FINANCIAL ASSETS INSTEAD OF DEPRESSED REAL ESTATE AND THE FEDERAL RESERVE STAVED OFF THE RECENT INFLATION SCARE IF THIS SUCCESS PROVES MORE THAN MOMENTARY THE CLINTON LEAPERS COULD HIT A POOL AROUND THE FED WITH CREDIBLE ZERO INFLATION LONGTERM BOND YIELDS THEORETICALLY WOULD SUBSIDE TO 3 OR SO THEN AGAIN MAYBE STOCKS AND BONDS ARE HOLDING UP BECAUSE MARKETS REALLY BELIEVE THE CLINTON PLAN WILL BREAK THE DEFICIT AND CUT INTEREST RATES BUTCH AND SUNDANCE SURVIVED THE JUMP AFTER ALL THOUGH THEY CAME TO WOE FLEEING THE PINKERTONS TO BOLIVIA PERHAPS THIS IS THE TIME AND PLACE FOR A DESPERATION LEAP WHILE FOLLOWING SENATE PASSAGE OF HIS TAX BILL ON CSPAN THE WHITE HOUSE REPORTS PRESIDENT CLINTON TOOK A MOVIE BREAK WATCHING BUTCH CASSIDY AND THE SUNDANCE KID MR BARTLEY IS EDITOR OF THE JOURNAL SEE RELATED LETTERS LETTERS TO THE EDITOR WASHINGTON'S HOLE IN THE WALL GANG WSJ JULY 19 1993 9306300034 YY93 MM07 9307190078 930623 THE SCREECH OF TIRES MEANS A TASTY MEAL FOR THIS RURAL CHEF TOM SQUIER'S CURBSIDE CUISINE DRAWS FANS WHO HUNGER FOR ONE FROM THE ROAD BY ROBERT TOMSHO STAFF REPORTER OF THE WALL STREET JOURNAL ABERDEEN NC WITH ITS BACK ARCHED AND ITS HEAD COCKED THE BROWN SQUIRREL APPEARS POISED FOR A SCAMPER AS TOM AND FRANCES SQUIER GAZE AT IT THROUGH THE COOL MIST THEY DON'T GET FREEZER BURN IF YOU LEAVE THE FUR ON MR SQUIER EXPLAINS HIS WIFE GLARES INTO THE OPEN FREEZER AT THE CRITTER WHICH LOOKS SURPRISINGLY CHIPPER CONSIDERING THAT HER HUSBAND FOUND IT DEAD ON THE HIGHWAY WHETHER YOU GET IT WITH A GUN OR A GOODYEAR IT'S STILL THE SAME MEAT SAYS MR SQUIER MRS SQUIER SHOULD BE USED TO THIS BY NOW AFTER ALL BEING MARRIED TO A GREEN BERET TURNED BACKWOODS PAUL PRUDHOMME IS NO PICNIC AT LEAST NOT THE USUAL KIND AS THE AUTHOR OF AN OFFBEAT OUTDOORS COLUMN THAT APPEARS IN FIVE AREA NEWSPAPERS MR SQUIER A BRAWNY 45YEAROLD WITH EYEBROWS AS THICK AS SHRUBS IS KNOWN FOR HIS RECIPES FOR CACTUS QUICHE CATTAIL MUFFINS AND CHRISTMAS TREE PINE NEEDLE JELLY A FREQUENT RIBBONWINNER AT STATE FAIRS HE ALSO BREWS A MEAN DANDELION COFFEE SPICES HIS STIRFRY DISHES WITH CRUNCHY CICADAS AND STUNS YELLOWJACKET NESTS WITH A FIRE EXTINGUISHER SO HE CAN HARVEST THE LARVAE FOR SOUP THEN THERE ARE HIS MEAT DISHES MR SQUIER'S SELFPUBLISHED LIVING OFF THE LAND COOKBOOK INCLUDES RECIPES FOR BRAISED PORCUPINE SAUTEED CROW AND BEAVERTAIL STEW AS WELL AS DOWNHOME DISHES LIKE MOM'S BAKED 'COON AND SWEET 'TATERS AND OLD TOUGH RABBIT BAKED IN MILK FOR MORE FORMAL OCCASIONS HE OFFERS ARMADILLO STUFFED WITH WILD RICE MUSKRAT SIMMERED IN SHERRY AND GROUNDHOG BAKED IN SOUR CREAM SPICED MUSTARD AND A BIT OF ROSEMARY THERE'S NOTHING THAT HE WOULDN'T EAT THAT'S NOT POISONOUS MARVELS THOMAS POPE MR SQUIER'S EDITOR AT THE FAYETTEVILLE OBSERVERTIMES IN NORTH CAROLINA WELL ALMOST NOTHING I HAVEN'T EATEN ANY BATS SAYS MR SQUIER AND I PREFER NOT TO EAT KIDNEYS JUST BECAUSE I DON'T LIKE THE SMELL STILL HE PRAISES RATTLESNAKE AS THE OTHER WHITE MEAT AND USES IT TO MAKE CHINESE SNAKE SOUP FAUX SEAFOOD SALAD AND CHICKENFRIED SNAKE IN FACT MR SQUIER RARELY GOES ANYWHERE WITHOUT A COOLER AND A PILLOWCASE FOR SCOOPING THE DEAD REPTILES OFF THE HIGHWAY FANS OF MR SQUIER'S COLUMN REGULARLY SHOW UP AT HIS RURAL HOME WITH DEAD ANIMALS FOUND ON LOCAL ROADS MR SQUIER ADMITS THAT DETERMINING WHETHER A ROADKILL IS FIT FOR THE OVEN CAN BE TRICKY FORGET THE DETAILS HE ADVISES THAT THEY KEEP LONGER IN THE WINTER AND THAT THE FRESHEST ONES ARE THOSE FOUND ON A STRETCH OF HIGHWAY PASSED A FEW HOURS EARLIER MR SQUIER LEARNED ABOUT WILD PLANTS AND GAME AT THE KNEE OF HIS CHEROKEE GRANDFATHER A HUNTER HERBALIST AND CONNOISSEUR OF OPOSSUMS SNAPPING TURTLES AND OTHER ENTREES FORAGED FROM NORTH CAROLINA'S RIVERS SWAMPS AND WOODLANDS AFTER HIGH SCHOOL HE WORKED AS AN ALLIGATOR WRESTLER IN SILVER SPRINGS FLA AND LIVED IN A TREE IN THE NEARBY OCALA NATIONAL FOREST WHERE ARMADILLOS WERE HIS CULINARY MAINSTAY LATER AS A GREEN BERET HE SERVED IN VIETNAM HONDURAS AND SOUTH KOREA GAINING A REPUTATION AS A SOLDIER WHO RELISHED TOASTED BEETLE GRUBS DEEPFRIED ANACONDA AND ALMOST ANYTHING COOKED BY LOCALS FRESH MONKEY AND DOGMEAT STEW HE SAYS ALMOST WISTFULLY RECALLING HIS VIETNAM YEARS IT WAS MORE TASTY THAN THE CANNED STUFF A US ARMY SPECIAL FORCES MASTER SERGEANT AND SENIOR MEDIC HE HAS APPEARED IN MILITARY TRAINING FILMS FORAGING FOR WILD PLANTS FOR FOOD OR MEDICINE AND RECENTLY HE HELPED THE MILITARY DEVISE A COMPUTER PROGRAM FOR IDENTIFYING PLANTS HE ALSO REVISED THE FIELD SURVIVAL MANUAL MR SQUIER DOES FISH AND HUNT BUT TRUE TO HIS INDIAN HERITAGE HE WON'T KILL AN ANIMAL WITHOUT USING ALL OF ITS PARTS A BELIEF THAT HAS SPAWNED RECIPES SUCH AS SCRAMBLED EGGS WITH VENISON BRAINS AND A BULLFROG SOUP THAT USES PARTS MOST COOKS WOULD NEVER DREAM OF WHEN HE ISN'T LOOKING FOR FOOD MR SQUIER REPAIRS THE SHELLS OF INJURED TURTLES WITH EPOXY GLUE AND REGULARLY SCAMPERS ACROSS FOURLANE HIGHWAYS TO RESCUE ANIMALS THAT HE RELEASES IN THE WILD STILL AS HE WRITES IN HIS BOOK IF I CAN'T SAVE THEM I AM GOING TO SAUTE THEM HIS KITCHEN IS THE ROADKILL CAFE' SAYS ROCKY GONZALEZ A CHIEF WARRANT OFFICER AND FELLOW SPECIAL FORCES SURVIVAL TRAINER WHAT'S REALLY AMAZING IS THAT IT IS SO TASTY IT BORDERS ON HAUTE CUISINE OR EVEN HIGHER THAN THAT INDEED MR SQUIER HAS BECOME A HOT ITEM AT HERB FESTIVALS AND WILDFOOD GATHERINGS FROM COLORADO TO CANADA LOCALLY HIS LECTURES AND TASTINGS AT THE WEYMOUTH WOODS SANDHILLS NATURE PRESERVE FREQUENTLY ATTRACT CROWDS OF 100 AND MORE HE HAS GROUPIES SAYS KYM HYRE A WEYMOUTH WOODS RANGER SOME FANS TRAVEL AROUND THE STATE TO HEAR HIS TALKS ABOUT EDIBLE WILD PLANTS AND GAME COOKING OH HE'S REALLY MADE AN IMPRESSION GUSHES LOUISE THOMAS OF WADESBORO NC WHO HAS DEVELOPED A FONDNESS FOR DAY LILIES STUFFED WITH CREAM CHEESE SINCE SHE BEGAN ATTENDING MR SQUIER'S TALKS I'VE NEVER CONSIDERED EATING WEEDS BEFORE ADDS CYNTHIA LITTLE WHOSE GARDEN CLUB RECENTLY FOLLOWED MR SQUIER ON A WEEDEATING TOUR BECAUSE MR SQUIER LOOKS AT DANDELIONS AND CHICKWEEDS THE WAY MOST PEOPLE REGARD ONIONS AND PARSLEY HIS YARD PROBABLY WON'T BE A FEATURED ATTRACTION FOR MS LITTLE'S GARDEN CLUB HE WON'T CUT THE GRASS AND ONLY LETS HIS WIFE MOW PARTS OF THEIR OTHERWISE OVERGROWN FIVEACRE PLOT AND IT TOOK A WHILE FOR HIM TO TRUST ME TO BE OUT HERE ALONE SHE NOTES OF COURSE NOT EVERYONE ADMIRES MR SQUIER'S CULINARY SKILLS LITERARY AGENTS HAVE ADVISED HIM TO DROP THE ROADKILL RECIPES AND LOCALLY SOME NEWSPAPER EDITORS HAVE SPURNED HIS DINNER INVITATIONS AND URGED HIM TO TONE DOWN HIS MORE UNUSUAL RECIPES HE BRINGS IN PICTURES TOO WHICH KIND OF MAKES IT WORSE SAYS JAN HOWARD FOOD EDITOR OF THE MOORE COUNTY CITIZEN NEWSRECORD AT HOME ONE SISTERINLAW BRINGS A COOLER OF FOOD ON VISITS AND IF SOME FAMILY FRIENDS CAN'T PERSUADE MRS SQUIER TO COOK THEY INSIST ON SEEING THE FOOD WRAPPERS BEFORE SITTING DOWN TO DINNER WITH THAT IN MIND MR SQUIER SOMETIMES TRIES TO HELP PEOPLE GET OVER THEIR FOOD PREJUDICES BY READING A LIST OF THE ODD BODY PARTS THAT ARE GROUND INTO MANY OF THE SAUSAGES HOT DOGS AND COLD CUTS FOUND AT THE SUPERMARKET SOMETIMES IT MAKES THEM STOP AND THINK HE SAYS MOST PEOPLE WOULD RATHER HAVE A DEAD SQUIRREL OFF THE ROAD THAN THE LIPS OFF A COW SEE RELATED LETTER LETTERS TO THE EDITOR DEAD MEAT WSJ JULY 19 1993 9306230120 YY93 MM07 9307190071 930629 POLITICS & POLICY CLINTON ADMINISTRATION GEARING UP FOR EFFORT TO STRENGTHEN BARRIERS TO ILLEGAL IMMIGRATION BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON IN SEARCH OF A POLITICAL TARGET HAS FOUND A SURPRISING NEW ONE ILLEGAL IMMIGRANTS IN COMING WEEKS THE PRESIDENT IS EXPECTED TO PROPOSE A NUMBER OF STEPS TO TIGHTEN US BORDERS THEY INCLUDE INCREASING THE BUDGET FOR BORDER CONTROL EFFORTS RESTRICTING FOREIGNERS' ABILITY TO STAY IN THIS COUNTRY UNDER THE GUISE OF SEEKING POLITICAL ASYLUM AND REVAMPING THE ANTIQUATED OPERATIONS OF THE IMMIGRATION SERVICE ALSO ILLEGAL IMMIGRANTS WON'T BE COVERED IN MR CLINTON'S FORTHCOMING HEALTHCARE OVERHAUL PROPOSAL SUCH STEPS ARE UNUSUAL COMING FROM DEMOCRATS WHO TRADITIONALLY HAVE RESISTED MAKING IMMIGRATION AN ISSUE FOR FEAR OF RILING THE CIVILRIGHTS AND ETHNIC GROUPS THAT ARE PART OF THEIR POLITICAL BASE OF SUPPORT BUT THE NEW CLINTON WHITE HOUSE EAGER TO PORTRAY ITSELF AS MORE MODERATE THAN LIBERAL SEES THE ISSUE AS A GOLDEN OPPORTUNITY TO GET OUT IN FRONT OF AN EXPLOSIVE POLITICAL ISSUE RATHER THAN BEING FORCED CONTINUALLY TO REACT TO EVENTS AT THE SAME TIME WHITE HOUSE ADVISERS FIGURE THAT BY DEFINING THE DEBATE IN THEIR OWN TERMS THEY HAVE A CHANCE TO DENY REPUBLICANS THE OPPORTUNITY TO SEIZE THE ISSUE AND USE IT AGAINST THE PRESIDENT AT A LATER DATE MR CLINTON FIRED THE OPENING SALVOS IN THE WHITE HOUSE'S CAMPAIGN TO CAPTURE THE ISSUE AT A RECENT HIGHPROFILE CEREMONY ON THE SOUTH LAWN DECLARING THAT IMMIGRATION MUST BE A PRIORITY FOR THIS ADMINISTRATION HE NAMED AS COMMISSIONER OF THE TROUBLED IMMIGRATION AND NATURALIZATION SERVICE DORIS MEISSNER WHO SERVED AS ACTING COMMISSIONER OF THE SERVICE UNDER RONALD REAGAN AT THE SAME TIME MR CLINTON INITIATED A CRACKDOWN ON THE SMUGGLING OF ILLEGAL ALIENS INTO THE US FEARS ABOUT ILLEGAL IMMIGRATION HAVE BEEN HEIGHTENED RECENTLY WITH THE ARRESTS OF FUNDAMENTALIST MUSLIMS LINKED TO THE WORLD TRADE CENTER BOMBING AND TO A NUMBER OF PLANNED TERRORIST ACTS EVEN THOUGH MOST OF THOSE ARRESTED ENTERED THE US LEGALLY BUT BEYOND FEARS OF TERRORISM ARE ECONOMIC FEARS ESPECIALLY IN THE STATES ON OR NEAR THE MEXICAN BORDER MOST IMPORTANT OF ALL IN THE WHITE HOUSE'S VIEW IS CALIFORNIA A CLINTON STRONGHOLD DURING LAST YEAR'S ELECTION AND A STATE THAT'S VIEWED AS CRITICAL TO THE PRESIDENT'S REELECTION CHANCES IN 1996 IN SOUTHERN CALIFORNIA SAYS DEMOCRATIC REP ANTHONY BEILENSON WHO REPRESENTS A LOS ANGELES DISTRICT IMMIGRATION IS ALL ANYBODY TALKS ABOUT HE ADDS ONLY HALF IN JEST THAT COMPARED WITH FIELDING COMPLAINTS ABOUT ILLEGAL IMMIGRANTS I'D RATHER TALK ABOUT RAISING TAXES ONETHIRD OF THE ANNUAL GROWTH OF THE US POPULATION COMES FROM IMMIGRATION TOTALING ABOUT ONE MILLION PEOPLE AND AT LEAST 20 OF THOSE ARE UNDOCUMENTED ALIENS THE BURDEN OF THESE ILLEGALS ON STATE AND LOCAL GOVERNMENTS IS HUGE IN LOS ANGELES COUNTY ALONE THE ESTIMATED COST OF PROVIDING HEALTH AND OTHER COUNTY SERVICES TO ILLEGALS WAS 400 MILLION LAST YEAR MOREOVER THE SLUGGISHNESS OF THE US ECONOMY OVERALL HAS GIVEN THE ISSUE BITE EVERYWHERE NOT JUST IN STATES WHERE IMMIGRANTS TEND TO CONGREGATE SUCH AS CALIFORNIA TEXAS AND FLORIDA IN DEMOCRATICSPONSORED FOCUS GROUPS IN CHICAGO FOR INSTANCE PEOPLE VOLUNTEERED THAT THEY DIDN'T WANT UNDOCUMENTED ALIENS TO BE COVERED BY THE PRESIDENT'S HEALTHCARE PLAN AND HIGHLY VISIBLE EVENTS LIKE THE WORLD TRADE CENTER BOMBING AND THE SMUGGLING OF CHINESE CITIZENS INTO NEW YORK HAVE CAUSED IMMIGRATION TO RISE IN THE PUBLIC CONSCIOUSNESS IT IS PENETRATING THE AMERICAN PSYCHE SAYS MICHAEL FIX AN IMMIGRATION EXPERT AT THE URBAN INSTITUTE THE WHITE HOUSE HAS BEEN METHODICALLY LAYING THE GROUNDWORK FOR ITS IMMIGRATION OFFENSIVE WITH A MULTIAGENCY TASK FORCE THAT HAS BEEN COLLECTING INFORMATION ON THE ISSUE TAKING SOUNDINGS ON CAPITOL HILL AND MAKING RECOMMENDATIONS TO THE WHITE HOUSE'S DOMESTIC POLICY AND NATIONAL SECURITY COUNCILS PERHAPS MOST IMPORTANT A SINGLE PERSON ATTORNEY GENERAL JANET RENO HAS BEEN PUT IN CHARGE OF THE IMMIGRATION PROJECT WHILE SUCH ORGANIZATIONAL DETAILS MIGHT SEEM ROUTINE THEY HAVEN'T BEEN FOR THE CLINTON WHITE HOUSE FOR MONTHS ALMOST EVERY MAJOR DECISION AND MANY OF THE SMALLER ONES WERE LEFT FOR MR CLINTON TO MAKE PERSONALLY WHICH HAS LENT AN AIR OF IMPROVISATION EVEN TO SOME OF HIS MOST IMPORTANT ACTS ON IMMIGRATION I DON'T THINK THEY PICKED THE ISSUE THE ISSUE PICKED THEM SAYS NEW YORK DEMOCRATIC REP CHARLES SCHUMER WHO SERVES ON THE HOUSE IMMIGRATION SUBCOMMITTEE BUT NOW YOU CAN SEE A DECISIONMAKING PROCESS AND THERE IS ONE PERSON WITH AUTHORITY NOT A 32YEAROLD STAFF PERSON ATTORNEY GENERAL RENO PRIVATELY HAS MET WITH BOTH REPUBLICANS AND DEMOCRATS ON THE HOUSE IMMIGRATION PANEL TELLING THEM THAT SHE WELCOMES OPEN DISCUSSION ABOUT THE ADMINISTRATION'S PLAN THE LAWMAKERS AND HER DEPARTMENT HAVE BEEN SWAPPING INFORMATION EVER SINCE WHITE HOUSE AIDES ALSO SEE IMMIGRATION AS AN OPPORTUNITY FOR MR CLINTON TO DEMONSTRATE HIS INTEREST IN BIPARTISANSHIP A TRAIT THAT HAS BEEN LACKING IN MOST OF HIS LEGISLATIVE ENDEAVORS TO DATE ANYTHING THEY WANT TO DO I'LL WORK WITH IT SAYS REPUBLICAN SEN ALAN SIMPSON OF WYOMING A LEADER ON IMMIGRATION ISSUES THEY NAME IT I'LL PLAY MR CLINTON STILL HAS AMPLE REASON FOR TREADING CAREFULLY ON THE ISSUE OF IMMIGRATION BECAUSE HE HAS BEEN BURNED BY THE ISSUE BEFORE HIS HANDLING OF RIOTING BY CUBAN IMMIGRANTS AT FORT CHAFFEE ARK WAS ONE OF THE ISSUES THAT CONTRIBUTED TO HIS DEFEAT FOR REELECTION AS GOVERNOR OF ARKANSAS IN 1980 AS PRESIDENT HE HAS DRAWN FIRE FOR HIS FLIPFLOP ON WHETHER TO ALLOW HAITIAN REFUGEES TO ENTER THE US AND HAD TO DROP ZOE BAIRD'S NOMINATION TO BE ATTORNEY GENERAL BECAUSE OF HER HIRING OF ILLEGAL ALIENS GIVEN THE DIFFICULT PROBLEMS THAT IMMIGRATION OVERHAUL PRESENTS I GIVE CLINTON HIGH MARKS FOR TAKING ON THE ISSUE SAYS VIN WEBER A FORMER REPUBLICAN CONGRESSMAN FROM MINNESOTA BUT I'M NOT SURE IT'S A POLITICAL WINNER IN THE SHORT TERM SEE RELATED LETTER LETTERS TO THE EDITOR ILLEGAL IMMIGRANTS OVERWHELM CITIES WSJ JULY 19 1993 9306290150 YY93 MM07 9307160132 930623 MARKETING BY LAURA BIRD THIRTY YEARS OF HEAVY BREATHING HAVE GIVEN LAMAZE THE AWARENESS AND GOODWILL THAT COST BRANDNAME ADVERTISERS HUNDREDS OF MILLIONS OF DOLLARS THAT ANYWAY IS THE THEORY BEHIND A MOVE INTO LICENSING BY THE LAMAZE ORGANIZATION ASPO/LAMAZE BASED IN WASHINGTON THE GROUP HAS SIGNED AN AGREEMENT WITH AMI A COMPANY JUST FORMED IN NEW YORK FOR A LINE OF LAMAZE MATERNITY APPAREL AND INFANT ACCESSORIES THE MATERNITY CLOTHES UNDER THE LAMAZE BY AMI LABEL WILL BE THE FIRST OFFSPRING DUE THIS FALL TO GUARD ITS IMAGE ASPO/LAMAZE THE ASPO PART STANDS FOR AMERICAN SOCIETY FOR PSYCHOPROPHYLAXIS IN OBSTETRICS IS TAKING ONLY BABY STEPS TOWARD BECOMING A MARKETING GIANT THE ACCESSORIES WILL ALL BE RELATED TO HEALTH OR SAFETY SAYS AMI CHAIRMAN GREGORY BARANOFF HE INDICATES THAT CAR SEATS FOR INSTANCE WOULD BE APPROPRIATE EVERY YEAR 26 MILLION COUPLES ENROLL IN LAMAZE OR LAMAZELIKE CLASSES IN NATURAL CHILDBIRTH EQUIVALENT TO 95 OF ALL FIRSTTIME PARENTS ABOVE THE POVERTY LINE IN THE US CLASSES CERTIFIED BY THE LAMAZE ORGANIZATION ACCOUNT FOR 60 OF THE TOTAL ASPO/LAMAZE A NONPROFIT GROUP SAYS PROCEEDS FROM THE LICENSING ENTERPRISE WILL BE USED TO PROMOTE ITS CLASSES AND TECHNIQUES AMONG EXPECTANT PARENTS ALMOST ANY MARKETER CAN FIND SOMETHING TO CRITICIZE IN THE CLASSIC CONSUMER FOCUS GROUP NOW ONE CONSULTANT CALLS FOR SCRAPPING THE WHOLE RITUAL IN A FOCUS GROUP A MODERATOR POSES QUESTIONS TO A PANEL OF CONSUMERS WHILE MARKETING AND ADVERTISING MANAGERS SPY FROM BEHIND A ONEWAY MIRROR NAMES OF BRANDS AND COMPANIES ARE SELDOM DISCLOSED QUESTIONS ON UNRELATED TOPICS ARE OFTEN INCLUDED TO THROW PARTICIPANTS OFF THE SCENT SUCH SETUPS DON'T GIVE COMPANIES MUCH MORE THAN LOVE IT OR HATE IT FEEDBACK SAYS MARK SEBELL CHIEF EXECUTIVE OF CREATIVE REALITIES OF BOSTON SO HE HAS CREATED THE COLAB INSTEAD OF EATING TAKEOUT FOOD BEHIND THE MIRROR WHILE A MODERATOR DRONES ON COMPANY OFFICIALS PARTICIPATE IN THE SESSIONS MINGLING WITH CONSUMERS AND A FACILITATOR IN NONLINEAR CONVERSATION ABOUT LIFESTYLES AND PRODUCT IDEAS CREATIVE REALITIES IDENTIFIES THE COMPANY AND THE PROJECT BEING RESEARCHED AND EXECUTIVES JOIN IN SHARING INFORMATION ABOUT PERSONAL PRACTICES AND PREFERENCES THE CLIENTS DON'T WEAR SUITS AND THE SESSIONS OCCUR IN HOTEL SUITES OR OTHER LIVINGROOM SETTINGS MR SEBELL SAYS ABOUT A DOZEN COMPANIES HAVE PARTICIPATED IN COLABS IN THE PAST YEAR RICH PRODUCTS WHICH SELLS FOOD TO RESTAURANTS AND CAFETERIAS RECENTLY USED COLAB SESSIONS WITH FOODSERVICE OPERATORS TO REFINE ITS SALES PITCH FROM A GUT REACTION I'D SAY WE GOT BETTER INFORMATION SAYS KATHLEEN MCCRONE A MARKETING MANAGER FOR THE BUFFALO NY COMPANY I'M NOT SURE RESULTS FROM THE METHOD ARE MEASURABLE BUT WE'VE NEVER BEEN ABLE TO MEASURE WHETHER FOCUS GROUPS WORK EITHER THE COLAB REJECTS THE CONVENTIONAL VIEW THAT CONSUMER RESEARCH SHOULD BE BLIND SO A COMPANY'S REPUTATION WON'T TAINT RESPONSES CLIENTS CAN UNINTENTIONALLY CENSOR AND INFLUENCE THE CONSUMERS WITH LEADING QUESTIONS SAYS TED DUNN TECHNICAL CONSULTING DIRECTOR AT THE ADVERTISING RESEARCH FOUNDATION NEW YORK BUT MR SEBELL SAYS DISCLOSURE DOESN'T AFFECT RESULTS THOUGH PEOPLE IN FOCUS GROUPS CAN'T SEE THROUGH THE OBSERVATION MIRROR HE SAYS THEY PERFORM FOR THE UNSEEN AUDIENCE AFTER YEARS OF STUMBLES HARNESS RACING IS TRYING TO BROADEN ITS APPEAL THE US TROTTING ASSOCIATION MADE A RUN AT OTHER FORMS OF GAMBLING WITH TEST RADIO ADS IN CHICAGO IN RECENT WEEKS IF YOU DON'T MIND BETTING 26 MILLIONTOONE SHOTS THEN PLAY THE LOTTO ONE AD ADVISED BUT IF YOU LIKE TO BET AND WIN I SAY PUT THE ODDS IN YOUR FAVOR GO TO SPORTSMAN'S PARK THE TROTTING GROUP WHICH HASN'T YET ASSESSED THE ADS' IMPACT IS NOW TESTING OTHER ADS IN COLUMBUS OHIO AND SYRACUSE NY HARNESSRACING ATTENDANCE PEAKED AT 281 MILLION IN 1975 WHEN IT RANKED THIRD IN POPULARITY BEHIND MAJOR LEAGUE BASEBALL AND THOROUGHBRED RACING ATTENDANCE PLUNGED TO 162 MILLION LAST YEAR NOW THE SPORT TRAILS NOT JUST BASEBALL AND THOROUGHBREDS BUT ALSO GREYHOUND RACING WALT DISNEY WORLD THE NATIONAL BASKETBALL ASSOCIATION AND PROFESSIONAL WRESTLING OTHER MARKETERS ARE REFOCUSING ON THEIR CORE CUSTOMERS BUT HARNESS RACING IS TAKING THE OPPOSITE TACK ITS APPEAL IS TOO GREAT AMONG TOO FEW JUST 24 OF ALL PEOPLE WHO HAVE EVER BEEN TO A HARNESS RACE ACCOUNT FOR 74 OF THE SPORT'S BUSINESS THEY TEND TO BE RETIRED MEN WITH LESS THAN 50000 IN INCOME NOT EXACTLY A BIG DRAW FOR YOUTH OBSESSED SPONSORS TO ATTRACT NEW YOUNGER PATRONS THE TROTTING ASSOCIATION IS WORKING WITH RACETRACK OWNERS TO IMPROVE FOOD AND AMENITIES DURING A 10DAY GET INTO HARNESS PROMOTION NEXT MONTH RACE TRACKS WILL HOLD CONTESTS THEME RACES AND FANAPPRECIATION DAYS AND ON JULY 17 THE TROTTING GROUP PLANS TO COMBINE WAGERS FROM TRACKS NATIONWIDE GIVING BETTORS THE CHANCE TO WIN A BIG POT TO IMPROVE ITS IMAGE THE HARNESS GROUP IS TAKING LESSPUBLIC STEPS INCLUDING SETTING UP A TOLLFREE HOT LINE TO ACCEPT TIPS ABOUT POSSIBLE RACE FIXING HOW MUCH IS PERCEPTION AND HOW MUCH REALITY IS A MOOT QUESTION BECAUSE WHAT THE PUBLIC PERCEIVES IS REALITY SAYS PHILIP JURSEK MARKETING DIRECTOR AT THE TROTTING GROUP GOLF NUTS CAN PLAY WITH THE PROS IN A FANTASY CAMP FOR GOLFERS HOSTED BY FANTASY GOLF ADVENTURES AT CAESARS PALACE IN LAS VEGAS THIS NOVEMBER THE SIXDAY CAMP COSTS 25000 PER DUFFER BARQ'S THE NEW ORLEANS ROOTBEER MAKER IS GIVING AWAY BARQTOOS REMOVABLE TATTOOS OF RED DEVILS AND UNICORNS AMONG OTHER THINGS ON 12PACKS OF SODA THIS SUMMER THE PROMOTION COINCIDES WITH THE BRAND'S EXPANSION TO CALIFORNIA SEE RELATED LETTER LETTERS TO THE EDITOR THE SPORTING LIFE WSJ JULY 16 1993 9306230069 YY93 MM07 9307160123 930629 MOODY'S STARTS REVIEW OF EDUCATION BONDS NEW YORK MOODY'S INVESTORS SERVICE INC IN THE FIRST OF A SERIES OF REVIEWS OF HIGHEREDUCATIONBOND RATINGS SAID IT UPGRADED FIVE ISSUES DOWNGRADED THREE AND CONFIRMED 11 RATINGS ON BONDS ISSUED BY MASSACHUSETTS SCHOOLS BOSTON UNIVERSITY'S 309 MILLION OF DEBT WAS DOWNGRADED BY THE RATINGS AGENCY TO SINGLEA FROM SINGLEA1 BENTLEY COLLEGE'S 354 MILLION OF DEBT WAS DOWNGRADED TO BAA1 FROM SINGLEA AND WHEATON COLLEGE'S 188 MILLION OF DEBT WAS DOWNGRADED TO SINGLEA FROM DOUBLEA RECEIVING UPGRADES WERE AMHERST COLLEGE BERKLEE COLLEGE OF MUSIC TUFTS UNIVERSITY WELLESLEY COLLEGE AND WILLIAMS COLLEGE MOODY'S SAID MAINTAINING AFFORDABLE TUITION WITH A SHRINKING APPLICANT POOL WAS A MAJOR ISSUE FOR ALL THE INSTITUTIONS THE MASSACHUSETTS REVIEWS COVERED 32 BILLION OF DEBT A SPOKESMAN FOR MOODY'S SAID THAT SIMILAR EDUCATIONBOND REVIEWS ARE UNDER WAY IN CALIFORNIA NORTH CAROLINA AND MINNESOTA MOODY'S INVESTORS SERVICE INC DOWNGRADED 15 MILLION OF DEBT OF WHEATON COLLEGE TO SINGLEA FROM DOUBLEA AN ARTICLE LAST TUESDAY INCORRECTLY SAID 188 MILLION OF DEBT WAS AFFECTED BASED ON INFORMATION SUPPLIED BY MOODY'S THE MOODY'S ANNOUNCEMENT ALSO FAILED TO NOTE THAT SEVERAL RATING CHANGES FOR MASSACHUSETTS COLLEGES REFLECTED A CHANGE IN ITS POLICY CONCERNING COLLATERALIZED BONDS MOODY'S INVESTORS SERVICE INC LOWERED RATINGS ON 14 MILLION OF BENTLEY COLLEGE DEBT TO BAA1 FROM SINGLEA AN ADDITIONAL 28 MILLION OF DEBT CONTINUES TO BE RATED TRIPLEA BECAUSE IT IS INSURED BY THE MUNICIPAL BOND INSURANCE ASSOCIATION MOODY'S ALSO LOWERED RATINGS ON 729 MILLION OF BOSTON UNIVERSITY DEBT TO SINGLEA FROM SINGLEA1 1067 MILLION OF BOSTON UNIVERSITY DEBT THAT IS INSURED IS RATED TRIPLEA AND REMAINING DEBT IS UNRATED BY MOODY'S AN ARTICLE JUNE 29 INCORRECTLY SAID MOODY'S HAD LOWERED RATINGS ON 354 MILLION OF BENTLEY COLLEGE DEBT AND 309 MILLION OF BOSTON UNIVERSITY DEBT BASED ON INFORMATION SUPPLIED BY MOODY'S 9307160092 930624 DANGER INDOCTRINATION DIVERSITY QUOTAS AT NEA SKEWER MAGAZINE BY ROGER KIMBALL LIKE MANY OTHER GOVERNMENTAL AGENCIES THE NATIONAL ENDOWMENT FOR THE ARTS IS AWAITING THE NOMINATION AND APPOINTMENT OF KEY PERSONNEL BUT WE DO NOT HAVE TO WAIT FOR A NEW DIRECTOR OF THE NEA TO KNOW WHAT DIRECTION SUPPORT FOR THE ARTS WILL TAKE IN THE CLINTON ADMINISTRATION IT IS THE SAME DIRECTION IN WHICH THE REST OF THE CLINTON GOVERNMENT IS STUMBLING THE BUZZWORD IS DIVERSITY BUT THE REALITY IS AN EFFORT TO IMPOSE QUOTAS AND POLITICALLY CORRECT THINKING HERE AS ELSEWHERE THE POLITICS OF VIRTUE IS TAKING PRECEDENCE OVER MUNDANE CONSIDERATIONS OF QUALITY HOW DOES IT WORK CONSIDER THE CASE OF THE HUDSON REVIEW NOW CELEBRATING ITS 45TH ANNIVERSARY THE HUDSON REVIEW HAS LONG BEEN RECOGNIZED AS ONE OF THE MOST DISTINGUISHED LITERARY QUARTERLIES IN THE COUNTRY BASED IN NEW YORK CITY IT HAS PUBLISHED WORK BY TS ELIOT WALLACE STEVENS EZRA POUND WH AUDEN AND OTHER GIANTS OF 20THCENTURY LITERATURE IN RECENT YEARS MOST GENERALINTEREST LITERARY MAGAZINES HAVE EITHER EXPIRED OR BECOME PLATFORMS FOR DECONSTRUCTION AND OTHER FORMS OF IDEOLOGICAL PERSIFLAGE THE HUDSON REVIEW IS RARE IN HAVING REMAINED A FORUM FOR INTELLIGENT WELLWRITTEN CRITICISM AND CULTURAL COMMENTARY ON A BROAD SPECTRUM OF TOPICS IN FACT IT BELONGS TO A TINY HANDFUL OF MAGAZINES WHERE THE FIRST CRITERION OF INCLUSION IS LITERARY MERIT LITERARY MERIT WHO STILL CARES ABOUT THAT NOT APPARENTLY THE NEA FOR SEVERAL YEARS THE HUDSON REVIEW HAD APPLIED FOR AND RECEIVED A SMALL GRANT FROM THE ENDOWMENT'S LITERATURE PROGRAM THIS YEAR THE GRANT WAS TURNED DOWN IN RESPONSE TO A REQUEST FROM THE EDITORS THE ENDOWMENT SUPPLIED A SUMMARY OF ITS PANELISTS' COMMENTS ON THE GRANT APPLICATION IT MAKES FOR INTERESTING READING DATED MAY 27 THIS LETTER REPORTS THAT THE PANELISTS EXPRESSED TWO MAIN CONCERNS FIRST IT WAS FELT THAT WRITERS OF COLOR WERE SIGNIFICANTLY UNDERREPRESENTED IN THE HUDSON REVIEW SECOND PANELISTS CRITICIZED AN ARTICLE IN THE SUMMER 1992 ISSUE ABOUT THE BLACK NOVELIST RICHARD WRIGHT AS ISOLATING AND CONDESCENDING THIS CONCERN WAS EXACERBATED THE LETTER CONTINUES WHEN THIS ESSAY WAS COMPARED WITH THE FULSOME ESSAY ON ZOLA IN THE SAME ISSUE LET'S START WITH THE ARTICLE ON WRIGHT ENTITLED PROBLEMATIC TEXTS OF RICHARD WRIGHT THE PIECE IS BY JAMES W TUTTLETON A PROFESSOR OF ENGLISH AT NEW YORK UNIVERSITY AND A WIDELY RECOGNIZED AUTHORITY ON AMERICAN LITERATURE IT IS A REVIEW OF THE NEW LIBRARY OF AMERICA EDITION OF WRIGHT'S WORK FAR FROM BEING ISOLATING AND CONDESCENDING MR TUTTLETON'S ARTICLE IS A CELEBRATION OF WRIGHT HE DESCRIBES THE PUBLICATION OF WRIGHT IN THE LIBRARY OF AMERICA SERIES ALONGSIDE SUCH MASTERS AS HENRY JAMES EDITH WHARTON AND MARK TWAIN AS AN EVENT OF GREAT CULTURAL IMPORTANCE TRUE MR TUTTLETON DOES NOT BELIEVE THAT EVERY ONE OF WRIGHT'S BOOKS WAS AN UNMITIGATED TRIUMPH AND HE CRITICIZES THOSE WORKS THAT IN HIS JUDGMENT ARE LESS THAN FIRSTRATE BUT HE ALSO PRAISES UNCLE TOM'S CHILDREN AS A FULLY ACHIEVED WORK OF FICTION AND NATIVE SON AS A WORK OF HORRIFYING AND SOBERING IMPACT AS IT TURNS OUT HIS MAIN CRITICISM IS RESERVED FOR THE EDITOR OF THE EDITION ARNOLD RAMPERSAD A BLACK LITERARY SCHOLAR AT PRINCETON MR RAMPERSAD CHOSE TO INCLUDE AS PART OF THE TEXTS CERTAIN PASSAGES EG A SCENE FROM NATIVE SON IN WHICH TWO CHARACTERS MASTURBATE IN A MOVIE THEATER THAT WRIGHT HAD DECIDED TO EXCISE NOR WAS MR TUTTLETON ALONE IN HIS CRITICISM IN ITS REVIEW OF THE WRIGHT VOLUMES THE LONDON TIMES LITERARY SUPPLEMENT SUGGESTED THAT MR RAMPERSAD APPEARS TO HAVE OVERSTEPPED HIS BRIEF THE MESSAGE FROM THE NEA'S PANEL IS CLEAR ONLY INSTITUTIONS WAVING THE BANNER OF POLITICAL CORRECTNESS NEED APPLY THE FREEZE ON UNORTHODOX OPINION WORKS IN TWO WAYS FIRST COME THE BEANCOUNTERS AND QUOTAMONGERS HOW MANY BLACKS HISPANICS ASIANS WOMEN AND PEOPLE OF VARYING SEXUAL ORIENTATION DO YOU PUBLISH IF YOU FAIL TO MEET THE ESTABLISHED QUOTA FORGET ABOUT GETTING A GRANT THEN COME THE PCPOLICE EVEN IF YOU HAVE PUBLISHED ARTICLES ABOUT SAY BLACK AUTHORS WERE THE ARTICLES SUFFICIENTLY THAT IS UNEQUIVOCALLY AND UNRESERVEDLY ENTHUSIASTIC AND IF YOU DARED TO CRITICIZE AN AUTHOR OF COLOR SURELY YOU CANNOT HAVE PRAISED A DEAD WHITE EUROPEAN MALE IN THE SAME ISSUE IN FACT THE OFFENDING ARTICLE ABOUT ZOLA IS DESCRIPTIVE AND BIOGRAPHICAL NOT FULSOME BUT WHO PAYS ATTENTION TO SUCH NICETIES NOWADAYS THE NEA RECENTLY ANNOUNCED THAT IT HAD AGREED TO PAY 252000 TO FOUR PERFORMANCE ARTISTS WHOSE GRANTS HAD BEEN TURNED DOWN IN 1990 AMONG THE RECIPIENTS IS KAREN FINLEY WHOSE CONTRIBUTION TO CULTURE INVOLVES SMEARING HERSELF WITH CHOCOLATE AND DELIVERING HARANGUES ABOUT THE DEPREDATIONS OF PATRIARCHAL SOCIETY MS FINLEY IS WHITE AS IT HAPPENS BUT SHE CLEARLY KNOWS BETTER THAN THE EDITORS OF THE HUDSON REVIEW THE SORT OF THING THAT APPEALS TO THE PEER PANELS OF THE NEA NEAR THE END OF THE LETTER DETAILING THE REASONS FOR DENYING A GRANT TO THE HUDSON REVIEW WE READ THAT THE PANELISTS REMAINED CONCERNED THAT THE JOURNAL WAS BECOMING MONOLITHIC AND SELFPERPETUATING YOU MIGHT WELL WONDER AS I DID WHAT INSTITUTION OR INDIVIDUAL DOES NOT SEEK TO BE SELFPERPETUATING PERHAPS THIS MEANS THAT THE PANELISTS WISH THAT THE HUDSON REVIEW WOULD JUST GO AWAY BUT ANYONE ACQUAINTED WITH THE CONTENTS OF THAT DISTINGUISHED JOURNAL KNOWS THAT MONOLITHIC IS ABOUT THE LAST ADJECTIVE ONE WOULD USE TO DESCRIBE IT THAT AND PERHAPS POLITICALLY CORRECT TO LEARN ABOUT THOSE QUALITIES YOU WILL DO MUCH BETTER DEALING WITH THE PROS AT THE NEA AND ELSEWHERE IN THE CLINTON ADMINISTRATION MR KIMBALL IS MANAGING EDITOR OF THE NEW CRITERION SEE RELATED LETTER LETTERS TO THE EDITOR LITERARY FUNDING NO ANTIWHITE BIAS WSJ JULY 16 1993 9306240008 YY93 MM07 9307160125 930510 INTERNATIONAL FOREIGN INVESTORS FLEEING KOREA BLAMING OBSTRUCTIVE REGULATIONS BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL FOREIGN INVESTORS HAVE WITHDRAWN FROM SOUTH KOREA IN TORRENTS OVER THE LAST YEAR CITING CAPRICIOUS AND COMPLEX GOVERNMENT REGULATIONS AND A LACK OF INCENTIVES TO REMAIN IN THE COUNTRY THE VALUE OF NEW FOREIGN INVESTMENT DROPPED 36 TO 855 MILLION IN 1992 FROM THE PREVIOUS YEAR MORE OMINOUSLY THE VALUE OF FUNDS REDEEMED FROM TERMINATED JOINT VENTURES GREW MORE THAN FIVE TIMES TO 369 MILLION FROM 69 MILLION THE EXODUS HAS POTENTIALLY SERIOUS AND LASTING IMPLICATIONS FOR THE SOUTH KOREAN ECONOMY BECAUSE IT INCLUDES THE TYPE OF FOREIGN TECHNOLOGY THE COUNTRY NEEDS TO REMAIN COMPETITIVE OVER THE LAST TWO YEARS SOME OF THE WORLD'S BIGGEST MULTINATIONALS INCLUDING GENERAL MOTORS CORP GOODYEAR TIRE & RUBBER CO AND DUPONT CO HAVE ABANDONED PLANS TO BUILD SOPHISTICATED PRODUCTION FACILITIES IN THE COUNTRY OR TERMINATED JOINT VENTURES THE OUTFLOW COULD MAKE SOUTH KOREA THE FIRST BIG LOSER IN ASIA'S INCREASINGLY COMPETITIVE BIDDING FOR OUTSIDE CAPITAL AND TECHNOLOGY FOREIGN BUSINESSMEN HAVE TOLERATED ITS CONTORTED OPAQUE REGULATIONS ONLY FOR THE SAKE OF A HIGHLY TRAINED EDUCATED WORK FORCE BUT VIABLE ALTERNATIVES ARE APPEARING CHINA FOR EXAMPLE IS AGGRESSIVELY IMPLEMENTING THE TYPE OF REFORMS SOUTH KOREA IS ONLY TALKING ABOUT WITH IMPRESSIVE RESULTS FOREIGN INVESTORS ARE SINKING 30 MILLION TO 50 MILLION IN CHINA DAILY SOME OF IT JERKED OUT OF KOREA ACCORDING TO THE LOCAL CHAPTER OF THE AMERICAN CHAMBER OF COMMERCE WE KEEP TELLING THE KOREAN GOVERNMENT THAT WHILE THEY'RE TALKING THE CLOCK IS TICKING SAYS WILLIAM C OBERLIN AMERICAN CHAMBER OF COMMERCE'S EXECUTIVE VICE PRESIDENT IN THE MEANTIME WHENEVER SOMEBODY MENTIONS CHINA YOU HEAR A BIG SUCKING SOUND SO IT SEEMS DOES THE SOUTH KOREA GOVERNMENT PRESIDENT KIM YOUNG SAM HAS FILLED HIS CABINET WITH REFORMERS WHO ACKNOWLEDGE THAT KOREA'S TECHNOLOGICAL BASE NEEDS REFURBISHMENT MANY ARE WORKING OVERTIME ON A FIVEYEAR PLAN AIMED IN PART AT RECOVERING FOREIGN INVESTMENT BY REMOVING BARRIERS AND OFFERING TAX INCENTIVES FOR HIGHTECH VENTURES MOST ASIAN COUNTRIES ARE FAR MORE ACTIVE OR GENEROUS IN ATTRACTING FOREIGN INVESTMENT SAYS PARK JAE YOON SENIOR SECRETARY TO THE PRESIDENT FOR ECONOMIC AFFAIRS WE WILL BE MORE ACTIVE IN REMOVING REGULATIONS AGAINST ALL FOREIGN INVESTMENT IT'S THE ONLY WAY WE CAN INTRODUCE HIGH TECHNOLOGY MUCH IS RIDING ON THE FIVEYEAR PLAN DUE OUT IN JUNE FOREIGN BUSINESSMEN SAY SOUTH KOREA'S REPUTATION AS A HOSTILE ENVIRONMENT IS SO ENTRENCHED THAT ONLY DRAMATIC REFORMS CAN UPROOT IT THAT PERCEPTION HARDENED LATE LAST YEAR WITH THE APPARENT DEMISE OF WHAT HAD APPEARED TO BE THE KIND OF HIGHTECH PARTNERSHIP THE GOVERNMENT SAYS IT IS TRYING TO PROMOTE ALUMINUM COMPANY OF AMERICA WHICH WAS LOOKING FOR SKILLED LABOR TO MANUFACTURE AIRCRAFT COMPONENTS FOR EXPORT TO ASIA'S GROWING AVIATION MARKET HAD JOINED WITH KOREA'S SAMSUN INDUSTRIAL CO WHICH WANTED TECHNOLOGY IT COULDN'T DEVELOP ON ITS OWN FOR AT LEAST A DECADE ALCOA WAS TO TAKE OVER AND RETOOL AN ALUMINUM EXTRUSION PLANT OWNED BY SAMSUN A MIDSIZED COMPANY KNOWN FOR ITS SOLID GOVERNMENT AND BUSINESS CONTACTS THE TWO COMPANIES AGREED TO COMMIT 37 MILLION TO THE PROJECT WHICH WAS EXPECTED TO GENERATE MORE THAN 100 MILLION IN ITS FIRST FIVE YEARS OF OPERATION THE TALKS QUICKLY RAN INTO TURBULENCE ALCOA WANTED TO BUILD DEFENSERELATED COMPONENTS AS WELL AS COMMERCIAL ONES AND INSISTED ON EQUITY CONTROL OF THE VENTURE THAT OFFENDED KOREA'S MILITARY ESTABLISHMENT WHICH WORRIED THAT A FOREIGNCONTROLLED DEFENSERELATED MANUFACTURER POSED A THREAT TO NATIONAL SECURITY IN LATE 1991 THE GOVERNMENT ISSUED GUIDELINES RESTRICTING PREFERENTIAL TREATMENT FOR DEFENSE CONTRACTORS TO SOUTH KOREANCONTROLLED ENTERPRISES IN ADDITION TO RECEIVING CERTAIN CONCESSIONS DEFENSE COMPANIES WITH PREFERRED STATUS HAVE THE INSIDE TRACK ON GOVERNMENT CONTRACTS ALCOA BALKED THE GOVERNMENT TRIED TO SOOTHE THE US MULTINATIONAL WITH ASSURANCES IT WOULD BE FLEXIBLE ON MATTERS OF EQUITY CONTROL AFTER A FORMAL VENTURE APPLICATION WAS SUBMITTED FOR APPROVAL THAT WASN'T GOOD ENOUGH FOR ALCOA WHICH WAS LOSING INTEREST IN THE VENTURE AT ABOUT THE SAME TIME SAMSUN WAS FOCUSING ON OPPORTUNITIES ELSEWHERE NEGOTIATIONS HALTED SEEMINGLY FOR GOOD IN DECEMBER NEITHER ALCOA NOR SAMSUN WOULD COMMENT ON THE VENTURE FOODPROCESSING GIANT CARGILL CORP HAD A MORE FRUITFUL EXPERIENCE BUT NOT WITHOUT A STRUGGLE ITS APPLICATION TO BUILD A 21 MILLION SOYBEAN PROCESSING PLANT WAS APPROVED THIS YEAR FOUR YEARS AFTER IT WAS FILED CARGILL'S PLAN PLACED IT IN CONFRONTATION WITH SOUTH KOREA'S OLIGOPOLY OF EDIBLE OILS PRODUCERS CARGILL WAS CAST BY THE LOCAL MEDIA AS A THREAT TO KOREAN AGRICULTURE THE GOVERNMENT FEARFUL OF A BACKLASH DRAGGED ITS FEET ON CARGILL'S APPLICATION CARGILL'S QUERIES TO THE GOVERNMENT FOR AN UPDATE WERE MET WITH A ROUTINE RESPONSE THEY KEPT TELLING US IT WAS UNDERGOING INTERADMINISTERIAL CONSIDERATION SAYS LD BENEKE CARGILL'S REPRESENTATIVE DIRECTOR IN SEOUL THERE IS NO MECHANISM THAT IS RECOGNIZED OR ENFORCED TO ALLOW YOU TO FOLLOW PROCEDURES HERE IN MANY CASES THEY HAVE A MAZE OF NONTRANSPARENT REGULATIONS THAT DELAYS PROCESSING THE TRANSPARENT REGULATIONS CAN BE JUST AS OBSTRUCTIVE PARTICULARLY FOR RETAIL COMPANIES THAT RELY ON IMPORTS OF FINISHED GOODS A SHIPMENT OF SHAMPOO FOR EXAMPLE REQUIRES A STAMP OF APPROVAL ON 10 DOCUMENTS FROM FIVE AGENCIES THE PROCESS TAKES ABOUT A MONTH THOSE ARE THE KIND OF REGULATIONS THE KIM ADMINISTRATION SAYS IT IS KEEN TO ELIMINATE SOME CHANGES HAVE BEEN INTRODUCED LAND ACQUISITION HAS BEEN SIMPLIFIED A CRACKDOWN ON COPYRIGHT INFRINGEMENT HAS BEEN PRAISED BY US TRADE OFFICIALS ROYALTY RATES ON FOREIGN INTELLECTUAL PROPERTY SOLD IN KOREA WHICH ONCE HAD TO BE APPROVED BY THE GOVERNMENT IS LEFT TO JOINTVENTURE PARTNERS SUCH PROGRESS HEARTENS FOREIGN INVESTORS BUT HARDLY APPEASES THEM AS THE COMPETITION INTENSIFIES AMONG ASIAN COUNTRIES THEY SAY THE KOREAN GOVERNMENT MUST GO BEYOND ELIMINATING BARRIERS AND START PRODUCING INCENTIVES SEE RELATED LETTER LETTERS TO THE EDITOR DON'T GET US WRONG WE WANT THE BUSINESS WSJ JULY 16 1993 9305100040 YY93 MM07 9307150129 930607 MANAGER'S JOURNAL MANDATED COOPERATION A '90S OXYMORON BY PETE HOEKSTRA OVER THE PAST DECADE COMPANIES LARGE AND SMALL HAVE MOVED VOLUNTARILY TOWARD EMPLOYEE PARTICIPATION PROGRAMS THE OVERWHELMING MAJORITY OF THESE PROGRAMS HAVE SURVIVED AND EVEN FLOURISHED DESPITE RECENT FLUCTUATIONS IN THE ECONOMY HOWEVER JUST AS THEIR TECHNIQUES ARE BECOMING REFINED AND ARE BEING USED BROADLY TO BENEFIT BOTH COMPANIES AND WORKERS EMPLOYEE PARTICIPATION PROGRAMS ARE IN DANGER OF BEING AMBUSHED BY WASHINGTON BUREAUCRATS THOUGH WELLINTENTIONED WASHINGTON INSIDERS LIVE IN A VACUUM FAR REMOVED FROM THE DAILY PRESSURES OF BUSINESS LIFE IT TAKES REALLIFE BUSINESS EXPERIENCE TO KNOW THAT A BIG GOVERNMENT MANDATE IS NOT THE KEY TO IMPROVING COMMUNICATION MORALE PRODUCTIVITY AND PRODUCT QUALITY IN THE WORKPLACE MY PERSONAL EXPERIENCE WITH EMPLOYEE PARTICIPATION WAS AT HERMAN MILLER INC IN ZEELAND MICH WHERE I WORKED FOR 15 YEARS BEFORE COMING TO CONGRESS THIS YEAR HERMAN MILLER A FORTUNE 500 OFFICE FURNITURE MANUFACTURER HAS BEEN RATED AS ONE OF THE TOP 100 COMPANIES TO WORK FOR IN AMERICA ITS METHOD OF EMPLOYEE PARTICIPATION BASED ON THE SCANLON PLAN WAS FIRST ADOPTED IN 1950 AND HAS BEEN MODIFIED OVER THE YEARS TO MEET THE COMPANY'S CHANGING NEEDS UNDER THIS PLAN THE MANAGER MUST NOT BE ONLY A LEADER HE MUST ALSO RECOGNIZE AND FOSTER THE LEADERSHIP ABILITIES OF THE PEOPLE ON HIS TEAM THE SUCCESS OF THE PROGRAM RELIES ON FOUR UNDERLYING PRINCIPLES IDENTITY EMPLOYEES MUST UNDERSTAND THE BUSINESS AND KNOW HOW THEY CAN BE INVOLVED MEANINGFULLY IN MEETING THE COMPANY'S GOALS AND OBJECTIVES PARTICIPATION EMPLOYEES MUST WORK TOGETHER TO ACCOMPLISH THE COMPANY'S GOALS AND OBJECTIVES EQUITY EMPLOYEES MUST REALIZE A FAIR RETURN ON THEIR PERSONAL INVESTMENTS OF TIME AND TALENT COMPETENCE EMPLOYEES MUST COMMIT TO USING THEIR FULL CAPABILITIES TO ENSURE THE SUCCESS OF THE ORGANIZATION AT HERMAN MILLER WE DID AWAY WITH SMALL EXECUTIVE COMMITTEES AND CREATED A LARGE BUSINESS OPERATIONS TEAM COMPOSED OF WORKERS FROM ALL LEVELS OF THE ORGANIZATION TEAMS WERE FORMED ACCORDING TO THE EXPERTISE OF THE PEOPLE INVOLVED NOT BY TITLES OR SENIORITY IN THE EARLY 1980S WE USED CROSSFUNCTIONAL TEAMS IN THE DEVELOPMENT OF PRODUCTS FOR EXAMPLE MARKETERS ENGINEERS PRODUCTION WORKERS AND INDEPENDENT DESIGNERS COLLABORATED IN THE CUSHION DESIGN OF THE EQUA CHAIR THE CHAIR WAS LAUDED BY TIME MAGAZINE AND OTHERS AS ONE OF THE BEST DESIGNS OF THE 1980S AND DEBUTED AS ONE OF HERMAN MILLER'S MOST SUCCESSFUL NEW PRODUCTS AS THIS STRATEGY DEVELOPED IN THE LATE 1980S AND INTO THE 1990S THE COMPANY CONTINUED TO USE CROSSFUNCTIONAL TEAMS AND ADDED THE EXPERTISE OF OUTSIDE VENDORS TO DEVELOP NEW PRODUCT IDEAS ALTHOUGH ALWAYS INVOLVED OUTSIDE VENDORS ARE NOW UTILIZED MUCH EARLIER IN THE PROCESS TO TAKE ADVANTAGE OF A BROADER BASE OF KNOWLEDGE THIS IMPROVES AND SHORTENS THE LEAD TIME IN PRODUCT DEVELOPMENT AND PRODUCT DELIVERY BRINGING VENDORS INTO THE MIX THIS WAY CALLS FOR MORE TRUST COOPERATION AND FLEXIBILITY THAN WAS EVER THOUGHT POSSIBLE IN THE EARLY 1980S AND WAS A DIRECT RESULT OF EXPERIMENTATION BY HERMAN MILLER HOWEVER IF GOVERNMENT MANDATES HAD DIRECTED THE PROCESS WE NEVER WOULD HAVE ARRIVED AT THAT POINT A 1987 SURVEY BY THE GENERAL ACCOUNTING OFFICE AND THE AMERICAN PRODUCTIVITY AND QUALITY CENTER SHOWED THAT MORE THAN 80 OF AMERICA'S LARGEST FIRMS HAVE SOME FORM OF EMPLOYEE INVOLVEMENT ACTIVITY AS HAS BEEN THE CASE AT HERMAN MILLER THE SUCCESS OF THESE PROGRAMS DEPENDS DIRECTLY ON THE FLEXIBILITY OF MANAGEMENT WORKING WITH EMPLOYEES TO DEVELOP THE RIGHT PROGRAM FOR THE RIGHT SITUATION TRUST SHARED ACCOUNTABILITY AND RESPONSIBILITY AND THE COMMITMENT AND LEADERSHIP CAPACITY OF THE EMPLOYEES INVOLVED CANNOT BE MANDATED BY BUREAUCRATS IN WASHINGTON THE FEDERAL GOVERNMENT CAN GET ON BOARD THE EMPLOYEE PARTICIPATION BANDWAGON THAT HAS SO INFLUENCED AMERICAN INDUSTRY AND THE AMERICAN WORKPLACE BUT THERE IS A RIGHT WAY AND A WRONG WAY TO DO SO THE WRONG WAY IS EMBODIED IN A PROPOSAL THAT CONGRESS CONSIDERED LAST YEAR AND THAT REP WILLIAM FORD CHAIRMAN OF THE HOUSE EDUCATION AND LABOR COMMITTEE AND SEN EDWARD KENNEDY HIS SENATE COUNTERPART HAVE RECENTLY REINTRODUCED THE FORDKENNEDY BILL WOULD BRING SWEEPING CHANGES TO THE FEDERAL OCCUPATIONAL SAFETY AND HEALTH ACT ONE OF THE KEY PROVISIONS OF THE BILL WOULD REQUIRE THAT ALL EMPLOYERS WITH MORE THAN 10 EMPLOYEES ESTABLISH SAFETY AND HEALTH COMMITTEES AND MANDATE EMPLOYEE PARTICIPATION THE BILL ALSO SPECIFIES THAT THE EMPLOYEE PARTICIPANTS MUST BE SELECTED SOLELY BY THE EMPLOYEES WITHOUT ANY EMPLOYER INPUT THE US LABOR DEPARTMENT THROUGH THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION WOULD ENFORCE AND REGULATE THESE WORKPLACE ARRANGEMENTS AT HIS CONFIRMATION HEARINGS LABOR SECRETARY ROBERT REICH WHILE NOT ENDORSING THE FORDKENNEDY BILL REFERRED TO THESE MANDATED WORKPLACE COMMITTEES IN POSITIVE TERMS SUBSEQUENTLY HE INDICATED THAT THE ADMINISTRATION SUPPORTS EFFORTS TO MANDATE COOPERATION IN THE WORKPLACE MANDATING A SINGLE METHOD OF SELECTING EMPLOYEE LEADERS IS INCONSISTENT WITH THE VARIETY OF WAYS IN WHICH SUCCESSFUL PROGRAMS HAVE EVOLVED SOMETIMES INTERESTED EMPLOYEES SIMPLY VOLUNTEER AND THE EMPLOYEE TEAM OR COMMITTEE EXPANDS OR CONTRACTS DEPENDING ON THE NUMBER OF INTERESTED AND WILLING VOLUNTEERS SOMETIMES THE EMPLOYER WILL ENCOURAGE ONE OR MORE EMPLOYEES TO TAKE A ROLE BECAUSE OF THEIR PARTICULAR INTEREST IN AN ISSUE SIMILARLY THE NATURE OF THE RESPONSIBILITIES AND DUTIES OF EFFECTIVE EMPLOYEE PARTICIPATION PROGRAMS VARIES AND EVOLVES OVER TIME BEGINNING THAT PROCESS BY IMPOSING A LIST OF REGULATORY RIGHTS AND DUTIES GUARANTEES A LEVEL OF ADVERSARIALNESS THAT WILL RUIN MOST EFFORTS TODAY'S CONGRESSIONAL PROPOSALS ARE 15 TO 20 YEARS BEHIND THE CUTTING EDGE OF TODAY'S MARKETPLACE DO WE WANT GOVERNMENT TO PROMOTE ALREADYOUTDATED IDEAS OR RATHER TO GIVE COMPANIES THE FLEXIBILITY TO EXPERIMENT AND DETERMINE WHAT WORKS BEST FOR THEIR UNIQUE CIRCUMSTANCES MANDATING COOPERATION IS THE WRONG APPROACH THE BEST WORKPLACECOOPERATION AND EMPLOYEE INVOLVEMENT PROGRAMS HAVE EVOLVED OVER TIME FITTING THE PRECISE NEEDS OF INDIVIDUAL COMPANIES IT IS TIME FOR CONGRESS TO REMOVE THE LEGAL BARRIERS AND STEP ASIDE TO ALLOW WORKERS A GREATER VOICE IN COMPANY DECISIONMAKING SIMPLY REMOVING THE DOUBT ABOUT THE LEGALITY OF SUCH PROGRAMS IN A NONUNION SETTING AFTER THE NATIONAL LABOR RELATIONS BOARD'S ELECTROMATION DECISION WOULD ALLOW THE SUCCESSFUL EMPLOYEE PARTICIPATION MOVEMENT TO EXPAND MY COLLEAGUE REP STEVEN GUNDERSON OF WISCONSIN HAS PROPOSED LEGISLATION TO AMEND THE NATIONAL LABOR RELATIONS ACT TO ALLOW REAL LABORMANAGEMENT COOPERATION THROUGH VOLUNTARILY ESTABLISHED WORKER PARTICIPATION PROGRAMS THE STATED GOAL OF THE CLINTON ADMINISTRATION TO INCREASE THE USE OF EMPLOYEE PARTICIPATION PROGRAMS IS ADMIRABLE AND PRACTICAL BUT THE PROPOSED METHOD TO ACHIEVE THAT END WILL NOT GET US THERE UNFORTUNATELY THE PRESIDENT AND SECRETARY REICH APPARENTLY HAVE SUCCUMBED TO THE WASHINGTON MENTALITY WHERE ONE BELIEVES THAT NOTHING GOOD WILL HAPPEN UNLESS BIG BROTHER REGULATES AND CONTROLS IT IN THE CASE OF COOPERATIVE EMPLOYEREMPLOYEE RELATIONS NOTHING WILL KILL THEM FASTER REP HOEKSTRA R MICH IS A MEMBER OF THE HOUSE EDUCATION AND LABOR COMMITTEE SEE RELATED LETTER LETTERS TO THE EDITOR IN MATTERS OF SAFETY WORKERS NEED A SAY WSJ JULY 14 1993 9306070024 YY93 MM07 9307150116 930624 CAPITAL HEARTBREAK JILTED BY THE PRESIDENT NOTQUITE NOMINEES TRY TO PICK UP PIECES IT ISN'T EASY TO BE ZOE BAIRD OR THE OTHER ALSORANS THOUGH SOME LIKE FAME GUINIER'S STANDING OVATION BY ELLEN JOAN POLLOCK STAFF REPORTER OF THE WALL STREET JOURNAL HE DUMPED HER THAT'S HOW LANI GUINIER'S SON BROKE THE NEWS TO HIS KINDERGARTEN CLASSMATES AFTER PRESIDENT CLINTON RESCINDED HER NOMINATION TO THE NATION'S TOP CIVILRIGHTS POST THE SIXYEAROLD'S INSTANT ANALYSIS WAS ABOUT AS TRENCHANT AS ANY INDEED IN THE AFTERMATH OF THE PRESIDENT'S SERIAL ROMANCES WITH WOULDBE APPOINTEES MS GUINIER AND OTHERS IN HER POSITION ARE FACING RECOVERY PERIODS ALTOGETHER CHARACTERISTIC OF THE RECENTLY JILTED LAWYERS IRONICALLY HAVE BEEN HARDEST HIT BY THE SPATE OF BROKEN ENGAGEMENTS BY MR CLINTON A YALE LAW GRADUATE THOSE WHOSE NAMES WERE FLOATED AND THEN WITHDRAWN INCLUDE ZOE BAIRD AND KIMBA WOOD FOR ATTORNEY GENERAL CHARLES RUFF FOR DEPUTY ATTORNEY GENERAL AND STEPHEN BREYER AND BRUCE BABBITT FOR THE SUPREME COURT FOR SHORT PERIODS EACH WAS IDENTIFIED BY THE WHITE HOUSE AS AN ACTUAL OR IMMINENT NOMINEE THEN EACH WAS PUBLICLY REBUFFED OFTEN FOR REASONS THAT REFLECTED BADLY ON THEM NOW WELL INTO THEIR PERSONAL RECOVERIES THEY ARE CONDUCTING POSTMORTEMS WITH FRIENDS DIVING INTO NEW PROJECTS TAKING VACATIONS AND EVEN IN THE CASE OF MS BAIRD AND JUDGE WOOD SEEKING SOLACE FROM EACH OTHER OVER THE PHONE BUT WHEN IT COMES TO REPAIRING EGOS AND CAREERS IT IS CLEAR THAT SOME OF THE CANDIDATES ARE FARING BETTER THAN OTHERS MS BAIRD APPEARS TO BE HURTING THE MOST AS GENERAL COUNSEL OF AETNA LIFE & CASUALTY CO AND A RISING STAR OF THE CORPORATE BAR SHE WAS PRESENTED BY THE WHITE HOUSE IN JANUARY AS A STUNNING SUCCESS STORY THEN SHE WAS UNDONE BY THE REVELATION THAT SHE HAD HIRED AN ILLEGALIMMIGRANT COUPLE TO CARE FOR HER SON AND HADN'T PAID SOCIAL SECURITY TAXES ON THEM AS A CLOSE WASHINGTON FRIEND PUTS IT SHE WENT INTO IT WITH A GOLDEN REPUTATION AND CAME OUT OF IT AS A NAME OF A PROBLEM INDEED THE EXPRESSION A ZOE BAIRD PROBLEM HAS CREATED A POTENTIALLY LONGTERM PROFESSIONAL PROBLEM FOR MS BAIRD THOUGH AETNA GREETED HER RETURN WITH A STATEMENT OF SUPPORT FROM CHAIRMAN RONALD COMPTON THERE WAS GRUMBLING AMONG BOARD MEMBERS THAT HIS WELCOME MAY HAVE BEEN A BIT TOO WARM AT AETNA'S ANNUAL MEETING IN LATE APRIL MS BAIRD SAT THROUGH SEVERAL SPEECHES BY SHAREHOLDERS CRITICAL OF HER CONTINUED EMPLOYMENT ONE SPEAKER RECOMMENDED A PAY CUT MS BAIRD LATER RACED OUT A BACK DOOR TO AVOID QUESTIONS EVERYBODY WANTS TO STAND BY ZOE SAYS A TOP AETNA OFFICIAL WHO ADDS THAT HER SITUATION HAS BEEN DISCUSSED IN AT LEAST ONE BOARD MEETING HOWEVER WHEN THE STUMBLE IS SO PUBLIC AND IT DOESN'T SEEM TO GO AWAY I DON'T THINK IT WILL EVER GO AWAY IS THAT OVER THE LONG TERM IN THE BEST INTERESTS OF AETNA AND IN THE BEST INTEREST OF ZOE AS GENERAL COUNSEL I THINK THAT'S AN OPEN QUESTION IF THE CORPORATE SCENE SEEMS NOT ENTIRELY HOSPITABLE TO MS BAIRD PUBLICSECTOR PROSPECTS APPEAR EVEN LESS PROMISING FOR NOW PRESIDENT CLINTON PROVIDED HER A SMALL CONSOLATION PRIZE BY APPOINTING HER TO HIS FOREIGN INTELLIGENCE ADVISORY BOARD BUT IT MEETS ACROSS THE STREET AND A WORLD AWAY FROM THE CABINET ROOM EVEN MS BAIRD'S HUSBAND HIGHPOWERED YALE LAW SCHOOL PROFESSOR PAUL GEWIRTZ MAY BE TAINTED HE OVERSAW THE COUPLE'S LEGAL WORK CONNECTED WITH THE PROBLEM AND MAY NOW HAVE DIFFICULTY GETTING THE JUDICIAL POST THAT FRIENDS SAY HE DESERVES MS BAIRD'S WASHINGTON PAL SAYS THE WHOLE MATTER HAS FORCED HER TO FOCUS MORE ON SHORTTERM GOALS SHE'S JUST BEEN TRYING TO PUT HER LIFE AND HER CAREER AND HER FAMILY LIFE ON TRACK SAYS THE FRIEND IT'S TAKEN A WHILE TO GET HER SEA LEGS BACK BUT I THINK THAT'S HAPPENED NOW FOR ONE THING MS BAIRD HAS SOLVED HER OWN ZOE BAIRD PROBLEM AT LEAST TEMPORARILY BY IMPORTING HER MOTHER FROM CALIFORNIA TO TAKE CARE OF HER CHILD AMONG THE OTHER REJECTED CANDIDATES WITH A ZOE BAIRD PROBLEM OF ONE SORT OR ANOTHER STEPHEN BREYER WHO JUST MISSED BEING A SUPREME COURT NOMINEE SEEMS TO HAVE EMERGED WITH THE MOST PROMISING FUTURE IN PUBLIC LIFE JUDGE BREYER CHIEF OF THE FEDERAL APPEALS COURT IN BOSTON HAD EMERGED IN NEWS REPORTS AS THE FRONTRUNNER WHILE HE RECUPERATED IN A HOSPITAL AFTER BEING HIT BY A CAR WHILE BICYCLING HE DIDN'T GET TO SEE THE PRESIDENT UNTIL FRIDAY JUNE 11 IN A LUNCH MEETING THAT SUPPORTERS CLAIM HE WASN'T COMPLETELY UP TO PHYSICALLY THAT WEEKEND THE NEWS BROKE THAT HE HAD NOT PAID SOCIAL SECURITY TAXES FOR A HOUSEKEEPER THE MILDEST AND MOST COMMON VERSION OF THE PROBLEM LATE SUNDAY EVENING ONLY AFTER THE BASKETBALL PLAYOFF GAME WAS OVER THE PRESIDENT CALLED JUDGE BREYER TO SAY HE HAD PICKED SOMEONE ELSE AT FIRST JUDGE BREYER SEEMED FRUSTRATED AND I WOULD SAY A LITTLE FRAZZLED SAYS THOMAS SUSMAN A WASHINGTON LAWYER BUT BY 730 MONDAY MORNING THE JUDGE WAS WORKING THE PHONE CALLING SUPPORTERS OFTEN HE FOUND HIMSELF CHEERING THEM UP RATHER THAN VICE VERSA TO MR SUSMAN HE SOUNDED A LOT LESS DEPRESSED THAN HE HAD THE DAY BEFORE HE WAS STILL MAKING CALLS FROM WASHINGTON'S UNION STATION PHONING AMONG OTHERS HARVARD LAW PROFESSOR ALAN DERSHOWITZ LATER THAT MORNING JUST BEFORE HEADING BACK NORTH ON THE METROLINER WHEN ANNOUNCING HIS CHOICE OF RUTH BADER GINSBURG FOR THE SEAT JUDGE BREYER MIGHT HAVE HAD MR CLINTON MENTIONED HIM AS A POSSIBILITY FOR THE NEXT OPENING ON THE COURT AND JUDGE BREYER SEEMS TO BE SATISFIED CHEERFULLY HE DESCRIBES HIS STINT AS A FRONTRUNNER AS LIKE BEING IN THE TRIPLE OVERTIME NOW HE SAYS IT IS BACK TO MY RATHER ANONYMOUS POSITION BUT HIS FRIENDS AREN'T SO SURE MANY WHO HEARD FROM HIM THAT EARLY MORNING SEEM READY FOR THE NEXT FIGHT THIS WILL NOT IN ANY WAY DIMINISH STEVE'S LUSTER PREDICTS MR DERSHOWITZ MS GUINIER FOR HER PART ISN'T WORRYING ABOUT HER PROSPECTS FOR APPOINTMENT TO PUBLIC OFFICE SHE IS TOO BUSY FIGURING OUT HOW BEST TO EXPLOIT HER SUDDEN CELEBRITY IN THE WAKE OF MR CLINTON'S DECISION TO DROP HER BECAUSE OF THEIR IRRECONCILABLE DIFFERENCES ON CIVILRIGHTS STRATEGIES AFTER HER NOMINATION WAS WITHDRAWN ON JUNE 3 A SOMBER DOWNCAST MS GUINIER TOLD A NATIONAL TELEVISION AUDIENCE THAT SHE HAD BEEN MISUNDERSTOOD BY THE PRESIDENT AND THE COUNTRY BUT BY THE TIME THE UNIVERSITY OF PENNSYLVANIA LAW PROFESSOR STEPPED AWAY FROM THE PODIUM SHE HAD BECOME A MEDIA STAR AS WELL AS A NEW HIGHPROFILE HERO TO MANY WHO SHARE HER LEFTOFCENTER VIEWS ON DISCRIMINATION AND VOTERS' RIGHTS THE CHANGE IN HER STATUS WAS INSTANTLY CLEAR WHEN SHE AND HER FAMILY MADE THEIR WAY TO UNION STATION FOR THE TRIP HOME AS SHE STRODE THROUGH THE REFURBISHED TRAIN STATION DINERS AT RESTAURANTS JUMPED TO THEIR FEET AND APPLAUDED AT A NEWSSTAND SHE WAS APPROACHED BY TOURISTS FROM THE MIDWEST NOW THEY TOLD HER THEY HAD A REAL STORY TO TAKE BACK HOME BACK IN PHILADELPHIA HER COLLEAGUES THREW HER A PARTY AND PRESENTED HER WITH AN OVERSIZED PLAYING CARD DEPICTING A QUEEN OF HEARTS TO LANI OUR FAVORITE MISQUOTED QUEEN SAID THE CARD IN A PLAY ON THE DEROGATORY MONIKER QUOTA QUEEN THAT CRITICS HAD BESTOWED ON HER LETTERS CALLS AND SPEAKING REQUESTS POURED IN MS GUINIER AND HER SECRETARY WHO ALSO WORKS FOR TWO OTHER LAW PROFESSORS COULDN'T BEGIN TO KEEP UP WITH THE MAIL BUT ONE DAY HER SECRETARY PLUCKED FROM THE PILE A LETTER THAT TURNED OUT TO BE FROM FORMER PRESIDENT FORD HE WANTED COPIES OF HER CONTROVERSIAL LAW REVIEW ARTICLES MS GUINIER CAN'T HELP LAUGHING WHEN SHE TELLS THE STORY NOW TWO PRESIDENTS WILL HAVE READ MY ARTICLES SHE SAYS SHE SEES TREMENDOUS BENEFITS FROM HER ORDEAL IN SOME UNEXPLAINED WAY IT HAS GIVEN ME THE OPPORTUNITY TO SEEK THE FORUM THAT I WAS DENIED SHE SAID LAST WEEK SHORTLY BEFORE LEAVING FOR A HAWAIIAN VACATION IT COULD ALSO PROVE LUCRATIVE SPEAKING FEES FOR SOMEONE OF HER NEWSWORTHINESS APPROACH 15000 A POP FEDERAL TRIAL JUDGE KIMBA WOOD NOW VACATIONING IN ITALY ALSO SEEMS UNFAZED BY HER BRIEF WASHINGTON TOUR JUDGE WOOD WAS ATTORNEYGENERALINWAITING FOR BARELY A WEEK WHEN SHE HAD TO STEP ASIDE BECAUSE SHE HAD EMPLOYED AN ILLEGAL IMMIGRANT BEFORE IT WAS UNLAWFUL TO DO SO JUDGE WOOD'S PREDICAMENT WAS HARDLY THE SAME AS ZOE BAIRD'S PROBLEM AND GIVEN THAT SHE HADN'T BROKEN ANY LAWS SHE WAS THE OBJECT OF MOSTLY WARM FEELINGS EVEN A TOUCH OF PITY WHEN SHE RETURNED TO THE FEDERAL COURTHOUSE IN MANHATTAN ON MONDAY FEB 8 HER CHAMBERS LOOKED POSITIVELY FUNEREAL AS FLOWER DELIVERIES STREAMED IN FROM DISAPPOINTED SUPPORTERS AND EVEN COURTHOUSE WORKERS AND WHEN SHE WALKED INTO THE JUDGES' DINING ROOM THAT DAY SHE WAS GREETED WITH A STANDING OVATION SEVERAL JUDGES CAME OVER TO HUG HER SHE TOLD ONE FRIEND THAT WHEN THEY STARTED CLAPPING SHE SAID TO HERSELF THIS WAS CRAZY THIS IS A BETTER JOB FOR ME ANYWAY ON HER SECOND DAY BACK JUDGE WOOD WAS SENTENCING A MAN FOR VIOLATING HIS PAROLE AS SHE TYPICALLY DOES IN SUCH CASES SHE WISHED HIM GOOD LUCK OH YOUR HONOR THE YOUNG MAN REPLIED I WISH YOU GOOD LUCK ON A PERSONAL LEVEL THE CONTROVERSY PUT JUDGE WOOD IN THE AWKWARD POSITION OF PUBLICLY DISCLAIMING STATEMENTS MADE ON HER BEHALF BY HER HUSBAND TIME CORRESPONDENT MICHAEL KRAMER WHEN HER SELECTION WAS IN JEOPARDY HE TOLD REPORTERS THAT SHE HAD EXPLAINED THE DETAILS OF THE COUPLE'S BABYSITTING ARRANGEMENT TO WHITE HOUSE HANDLERS YET JUDGE WOOD LATER CONCEDED THAT SHE HADN'T BEEN SUFFICIENTLY EXPLICIT IN ANSWERING THEIR QUESTIONS REMARKABLY SAY THE JUDGE'S FRIENDS SHE DOESN'T SEEM ANGRY ABOUT HER EXPERIENCE SOME FRIENDS WORRY THAT HER CAREER WHICH HAD BEEN BOLSTERED BY HER HANDLING OF THE HIGHPROFILE MICHAEL MILKEN CASE MAY HAVE BEEN DAMAGED AND THAT HER CHANCES FOR APPOINTMENT TO A FEDERAL APPEALS COURT SEAT MAY HAVE BEEN DIMINISHED SOME LAWYERS WHO THINK SHE ULTIMATELY WILL GET SUCH AN APPOINTMENT ARE INFURIATED BY HER LACK OF RANCOR IF YOU'RE NOT ANGRY A COLLEAGUE FROM HER PRIVATE PRACTICE DAYS HAS TOLD THE JUDGE I'LL BE DOUBLY ANGRY FOR YOU RICHARD B SCHMITT IN WASHINGTON AND WADE LAMBERT IN NEW YORK CONTRIBUTED TO THIS ARTICLE SEE RELATED LETTER LETTERS TO THE EDITOR DOUBLE STANDARD WSJ JULY 15 1993 9306240096 YY93 MM07 9307150114 930624 REVIEW & OUTLOOK EDITORIAL INCUMBENTS VS THE PEOPLE POLITICIANS WILL DO ANYTHING TO BLOCK TERM LIMITS LAST WEEK NEW YORK CITY REFUSED TO CERTIFY A PETITION SIGNED BY 64000 VOTERS TO PUT TERM LIMITS FOR CITY OFFICIALS ON THE NOVEMBER BALLOT TERM LIMIT OPPONENTS KNOW THEY LOSE EVERY TIME THE VOTERS DECIDE THE ISSUE SO THEIR ONLY HOPE IS TO RESORT TO LEGAL FLIMFLAMMERY EVEN THOUGH NEW YORK CITY LAW ALLOWS FOR VOTER INITIATIVES CITY CLERK CARLOS CUEVAS CLAIMS THERE IS NO AUTHORITY UNDER STATE CONSTITUTIONAL OR STATUTORY LAW FOR THE LOCAL ADOPTION OF TERM LIMITS THAT WOULD BE NEWS TO OFFICIALS IN SYRACUSE AND UTICA TWO NEW YORK CITIES THAT ALREADY IMPOSE TERM LIMITS ROCHESTER VOTERS GO TO THE POLLS THIS NOVEMBER TO VOTE ON LOCAL TERM LIMITS TERM LIMITS APPEARED ON 14 STATE BALLOTS LAST FALL AND WON EVERYWHERE BUT INCUMBENTBACKED LAWSUITS IN NINE STATES TRIED TO PREVENT VOTERS FROM EVEN DECIDING THE ISSUE AFTER TERM LIMITS WON USUALLY BY 2 TO 1 EIGHT STATE LAWSUITS WERE FILED TO OVERTURN THE VOTER'S VERDICT THE LEGAL ROADBLOCKS THROWN UP IN NEW YORK ARE A DESPERATE ATTEMPT TO PRESERVE ONE OF THE MOST FOSSILIZED POWER STRUCTURES OF ANY US CITY OF THE CITY COUNCIL'S 51 MEMBERS 14 WERE ELECTED IN THE 1970S OR EARLIER THE MOST POWERFUL MEMBERS ARE ALL CAREER POLITICIANS WHO WANT TO PROP UP NEW YORK'S SUFFOCATING BUREAUCRACY NOT OVERHAUL IT THE DISCONNECT BETWEEN THE NEED FOR REFORM IN NEW YORK CITY AND THE FAILURE OF ITS LEADERS TO RESPOND IS SO GREAT THAT MANY DEMOCRATS HAVE CONCLUDED TERM LIMITS ARE NECESSARY CLAIRE SHULMAN THE QUEENS BOROUGH PRESIDENT TRIED UNSUCCESSFULLY TO PUT TERM LIMITS IN THE CITY CHARTER THE LONGER AN OFFICIAL REMAINS IN OFFICE THE MORE POWERFUL HE OR SHE MAY BECOME AND THE TEMPTATION TO ABUSE THIS POLITICAL INFLUENCE GROWS GREATER AND GREATER SHE SAYS BOTH ED KOCH A FORMER MAYOR AND RONNIE ELDRIDGE THE FIERY LIBERAL WHO REPRESENTS MANHATTAN'S UPPER WEST SIDE ON THE COUNCIL BACK TERM LIMITS TERM LIMITS ARE HAVING AN EASIER TIME ACROSS THE HUDSON RIVER IN NEW JERSEY THIS WEEK THE NEW JERSEY ASSEMBLY APPROVED 52 TO 23 A BILL TO LIMIT THE TERMS OF THAT STATE'S MEMBERS OF CONGRESS THE MARGIN IS EXPLAINED BY THE FACT THAT STATE LEGISLATORS WEREN'T COVERED IF THE STATE SENATE GOES ALONG NEXT WEEK NEW JERSEY WILL BECOME THE FIRST STATE TO IMPOSE TERM LIMITS ON CONGRESS WITHOUT A POPULAR VOTE SENATE PRESIDENT DONALD DIFRANCESCO SUPPORTS TERM LIMITS BUT HIS GOP CAUCUS IS UNDER INCREASING PRESSURE FROM THE STATE'S CONGRESSIONAL DELEGATION TO DEEPSIX THE BILL BUT A REJECTION OF TERM LIMITS WOULD MARK THE SECOND TIME NEW JERSEY'S GOP LEGISLATURE HAS VOTED DOWN POLITICAL REFORM IT VOWED TO ENACT LAST YEAR LEGISLATORS RENEGED ON PROMISES TO ALLOW VOTER INITIATIVES ON THE BALLOT TERM LIMIT SUPPORTERS HAVE TO FIGHT A STATETOSTATE BATTLE BECAUSE HOUSE SPEAKER TOM FOLEY REFUSES TO EVEN HOLD A HEARING ON THE ISSUE INSTEAD CONGRESS MAY SOON PASS A CAMPAIGN FINANCE REFORM BILL THAT NOT ONLY SOLIDIFIES INCUMBENTS BUT IS BLATANTLY UNCONSTITUTIONAL TO BOOT LIKE THE ENTRENCHED POLITICAL ELITES OF JAPAN AND ITALY CONGRESS'S BARONS CONTINUE TO RESIST REAL REFORM BUT IN THE END AS IN JAPAN AND ITALY THEY MAY BE FORCED TO CHANGE BY AN OUTRAGED ELECTORATE SEE RELATED LETTER LETTERS TO THE EDITOR REVOLTING DEVELOPMENT WSJ JULY 14 1993 SEE RELATED LETTER LETTERS TO THE EDITOR SOME OF US BACK THE TERM LIMITS BILL WSJ JULY 15 1993 9306240065 YY93 MM07 9307150106 930625 POTOMAC WATCH A SUCKING SOUND FRONTS FOR TEXTILE KING BY PAUL A GIGOT ROSS PEROT LIKES TO DISMISS EVERYONE WHO FAVORS THE NORTH AMERICAN FREE TRADE AGREEMENT AS A GREEDY TOOL OF FOREIGN LOBBYISTS BUT WHAT IF AMERICA'S RICHEST POLITICIAN IS HIMSELF IN BED WITH SOME NOTORIOUS SPECIAL INTERESTS LET'S TAKE A FAMOUS MAN'S ADVICE AND LOOK UNDER THE HOOD JOINING MR PEROT TO PLOT ANTINAFTA STRATEGY HERE RECENTLY WAS RALPH NADER THE TRIAL LAWYERS' BEST FRIEND ALSO ON HAND WERE PEOPLE WITH TIES TO THE AFLCIO WHICH FRETS ABOUT DECLINING UNION POWER BUT MOST REVEALING WAS THE PRESENCE OF JOCK NASH A POLITICAL OPERATIVE FOR ROGER MILLIKEN THE TEXTILE MAGNATE AND RENOWNED PROTECTIONIST NONE OF THESE FOLKS COULD HAVE SELFINTEREST IN MIND COULD THEY MR PEROT'S RICHES LET HIM POSE AS SOMEONE ABOVE PERSONAL GAIN BUT THE ANTINAFTA PLOTTING SHOWS HE HAS FALLEN IN WITH SPECIAL INTERESTS HOPING TO USE THE BILLIONAIRE'S POPULIST IMAGE TO FRONT FOR THEIR OWN PROTECTIONIST AGENDA MR PEROT IN TURN IS USING IDEAS AND INFORMATION FINANCED BY THESE PROTECTIONISTS TO MAKE HIS CASE HIS SELLOUT IS INTELLECTUAL AND POLITICAL THE HUB OF THIS ANTINAFTA CABAL TURNS OUT TO BE MR MILLIKEN HEAD OF MILLIKEN & CO THE CLOSELY HELD SOUTH CAROLINA TEXTILE GIANT FOR YEARS HE WAS A STALWART RIGHTWINGER HELPING BARRY GOLDWATER IN 1964 AND SUPPORTING NATIONAL REVIEW MAGAZINE MR NASH SAYS NOT ONE OF THE 50SOME MILLIKEN PLANTS HAS EVER BEEN UNIONIZED YET IN THE 1970S UNDER THE PRESSURE OF IMPORTS MR MILLIKEN BECAME A TRADE ALLY OF THE GARMENT WORKERS' UNION HE LOBBIED FOR THE 1974 MULTIFIBER AGREEMENT THAT LIMITED APPAREL IMPORTS HAS SINCE FOUGHT FOR EVEN TIGHTER TEXTILE RESTRAINTS AND BACKED PAT BUCHANAN'S PROTECTIONIST CAMPAIGN IN 1992 NO WONDER ECONOMIST WILLIAM CLINE SAYS TEXTILE PROTECTION COSTS AMERICANS 20 BILLION A YEAR IN HIGHER PRICES THE POOR PAY MORE FOR SHIRTS WHILE MILLIKEN & CO PROFITS MR MILLIKEN MAY EVEN DESERVE CREDIT FOR CONVINCING MR PEROT TO OPPOSE NAFTA MR NASH SAYS THE PAIR MET LAST YEAR TO TALK ABOUT THE TREATY AND FRITZ HOLLINGS THE SOUTH CAROLINA SENATOR AND ARDENT PROTECTIONIST HAS BOASTED ON CSPAN THAT HE PLANTED THE IDEA WITH MR PEROT AT A SPRING 1992 MEETING MR HOLLINGS IS AN OLD MILLIKEN PAL AND MR NASH THE MILLIKEN AIDE SAYS THE HOLLINGS STAFF WORKS HANDINGLOVE WITH HIM WHAT'S CERTAIN IS THAT MILLIKEN IS BANKROLLING THE PEOPLE NOW GIVING MR PEROT HIS ANTINAFTA AMMUNITION ONE SUCH IS PAT CHOATE THE TRADE WRITER WHO ACKNOWLEDGES THAT MILLIKEN PROVIDES ABOUT A THIRD OF HIS SMALL THINK TANK'S 350000 ANNUAL BUDGET WHEN REP JIM KOLBE R ARIZ CHALLENGED MR PEROT ON NAFTA'S MERITS IN A RECENT MEETING ON CAPITOL HILL THE TEXAN REPLIED I'LL JUST REFER THAT TO PAT CHOATE YET MR PEROT HARDLY ADVERTISES THIS MILLIKENCHOATE CONNECTION EVEN AS HE DENOUNCES NAFTA PROPONENTS AS TOADIES OF MEXICO MILLIKEN ALSO FINANCES THE INFORMATION SOURCE FOR MR PEROT'S NOWREGULAR DIATRIBES AGAINST FOREIGN LOBBIES MR PEROT GETS HIS FACTS FROM A BELTWAY OUTFIT WITH THE HIGHTONED NAME OF THE CENTER FOR PUBLIC INTEGRITY IT WAS FOUNDED IN 1989 BY CHARLES LEWIS A FORMER PRODUCER FOR 60 MINUTES WHO HAS SINCE BECOME A PROMINENT BELTWAY ETHICIST MR LEWIS ADMITS HIS SHOP WOULDN'T EXIST IF MILLIKEN HADN'T STAKED HIM 25000 IN 1989 AND DRUMMED UP THOUSANDS MORE FROM OTHER TEXTILE MAKERS WE HAD AN EPIPHANY ON THE PHONE HE SAYS NOW OF HIS DECISION TO ACCEPT THE MILLIKEN CASH MR LEWIS HAS SINCE DRAWN DONATIONS FROM UNIONS AND FOUNDATIONS BUT MILLIKEN HAS CHIPPED IN 150000 OVERALL AND HAS HELPED TO SOLICIT MUCH MORE NOTWITHSTANDING THIS ETHICAL GLASS HOUSE MR LEWIS CLAIMS HE DOESN'T BOW TO HIS CONTRIBUTERS BUT HIS FIRST STUDY IN 1990 EXPOSED US TRADE OFFICIALS WHO LEFT THE GOVERNMENT TO WORK FOR FOREIGN INTERESTS IN 1991 HE RIPPED JAPAN ANOTHER MILLIKEN BETE NOIRE AND THIS MAY HIS STUDY ON NAFTA LOBBYING DEVOTED ONLY SIX OF 104 PAGES TO TREATY OPPONENTS SUPPORTERS TOOK THE BIG HIT MR LEWIS'S COVER STORY ON THE SUBJECT IN THE NATION MAGAZINE ENTITLED THE BIG BUY FEATURES A CHAP IN A SOMBRERO CARTING OFF CAPITOL HILL LIBERALS USUALLY DEPLORE ETHNIC STEREOTYPES EXCEPT APPARENTLY WHEN THEY'RE ABOUT FOREIGNERS COMMITTING COMMERCE WOULD MR LEWIS DO A STUDY ABOUT SAY LOBBYING BY US TEXTILE INTERESTS MAYBE WE SHOULD SAYS THE ETHICIST BUT IT'S A LITTLE NARROW A SINGLE INDUSTRY NO DOUBT MR MILLIKEN WOULD AGREE THE NONNARROW POINT HERE IS THAT THE FIGHT OVER SOMETHING AS IMPORTANT AS NAFTA OUGHT TO BE ABOUT THE MERITS ABOUT HOW NAFTA WOULD SLASH MEXICAN TARIFFS THAT ARE NOW TWICE OUR OWN ABOUT HOW HELPING MEXICO PROSPER WILL SLOW THE MEXICAN IMMIGRATION THAT MR PEROT WILL PROBABLY MAKE HIS NEXT BIG ISSUE OPPONENTS LIKE MR PEROT SUSPECT THEY CAN'T WIN ON THE MERITS SO THEY DEMAGOGUE ABOUT FOREIGNERS AND HINT AT CORRUPTION SUCH RHETORIC PLAYS ONLY TOO WELL TO A PUBLIC ALREADY AND OFTEN PROPERLY DISGUSTED WITH WASHINGTON YET WHEN WE LIFT UP THE HOOD THE BANTAM BULLY WHO POSES AS A POPULIST TURNS OUT TO BE JUST ANOTHER FRONT MAN FOR SOME OF THE HOARIEST ELITES AROUND MAYBE THE GIANT SUCKING SOUND YOU HEAR IS ROSS PEROT'S CREDIBILITY VANISHING INTO A BLACK HOLE SEE RELATED LETTERS LETTERS TO THE EDITOR WHY WE FEAR NAFTA WSJ JULY 15 1993 9306250076 YY93 MM07 9307150099 930622 MEDICINE SUITS INVOLVING DEFUNCT BENDECTIN CHILL DEVELOPMENT OF PREGNANCY MEDICATIONS BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL WHEN PHYSICIANS ASK RONALD RUGGIERO'S ADVICE ON TREATING MORNING SICKNESS THE SAN FRANCISCO PHARMACIST AND CLINICAL PROFESSOR GIVES THEM THE RECIPE FOR A BOOTLEG VERSION OF THE ANTINAUSEA DRUG BENDECTIN USING TWO OVERTHECOUNTER PRODUCTS HE WOULD PREFER TO GIVE THEM THE REAL BENDECTIN THE ONLY DRUG APPROVED BY THE FOOD AND DRUG ADMINISTRATION FOR USE AGAINST MORNING SICKNESS BUT MERRELL DOW PHARMACEUTICALS INC STOPPED MAKING IT IN 1983 AFTER A BARRAGE OF LAWSUITS INVOLVING AN ESTIMATED 2000 PLAINTIFFS IMPLICATED THE DRUG AS A CAUSE OF BIRTH DEFECTS THOSE CLAIMS WEREN'T SCIENTIFICALLY PROVED MAINTAIN DR RUGGIERO AND MANY PHYSICIANS WHO RUE THE DRUG'S LOSS THAT NOTHING EVER EMERGED TO REPLACE MERRELL DOW'S DRUG PHYSICIANS SAY SHOWS THE MOST DAMAGING FALLOUT OF THE BENDECTIN AND SIMILAR LAWSUITS DRUG COMPANIES HAVE BEEN SCARED AWAY FROM RESEARCH INTO DRUGS FOR WOMEN'S HEALTH PROBLEMS PARTICULARLY THOSE THAT ARISE DURING PREGNANCY WITHOUT APPROVED PRODUCTS OBSTETRICIANS SAY THEY HAVE TO IMPROVISE WITH UNAPPROVED THERAPIES SUCH CREATIVE DOCTORING HAS CAUGHT THE ATTENTION OF ATTORNEYS ACCORDING TO THE RECORDER A SAN FRANCISCO LEGAL NEWSPAPER THAT REPORTED ON THE BOOTLEG BENDECTIN THERAPY IN APRIL IN ABSOLUTELY EVERY SINGLE ASPECT WE'RE LACKING DRUGS FOR PREGNANCY PROBLEMS SAYS DONNICA L MOORE AN OBSTETRICIANGYNECOLOGIST AND ASSOCIATE DIRECTOR AT SANDOZ PHARMACEUTICALS CORP A UNIT OF SANDOZ AG IN FACT THERE ARE ONLY THREE DRUGS APPROVED FOR COMMON OBSTETRIC USE SAYS WILLIAM F RAYBURN PROFESSOR AND CHIEF OF MATERNAL AND FETAL MEDICINE AT UNIVERSITY OF OKLAHOMA HEALTH SCIENCES CENTER RESEARCH IS ALSO SCARCE ON EXISTING DRUGS FOR HIGH BLOOD PRESSURE ASTHMA INFECTIONS AND OTHER CONDITIONS THAT COMMONLY ARISE OR CONTINUE IN PREGNANCY A 1990 STUDY OF 157 MEDICATIONS FOUND THAT 49 HAD INSUFFICIENT INFORMATION TO DETERMINE WHETHER THEY WERE HARMFUL TO FETUSES AND THE DATA QUALITY FOR MOST OF THE REST WAS ONLY FAIR OBSTETRICIANS ARE OPERATING WITH INCOMPLETE INFORMATION BECAUSE THE COMPLETE STORY ISN'T AVAILABLE SAYS MICHAEL MENNUTI PROFESSOR AND OBGYN DEPARTMENT CHAIRMAN AT THE UNIVERSITY OF PENNSYLVANIA MEDICAL CENTER THE DEARTH OF SAFETY INFORMATION IN PREGNANCY IS TROUBLING TO MANY BECAUSE MOST WOMEN USE DRUGS DURING PREGNANCY A 1986 STUDY BY NEW YORK STATE'S HEALTH DEPARTMENT FOUND THAT 90 OF PREGNANT WOMEN TOOK PRESCRIPTION OR OVERTHECOUNTER MEDICATIONS PREGNANCY IS A PARTICULARLY DAUNTING RESEARCH AREA FOR THE PHARMACEUTICAL COMPANIES BECAUSE DRUGS CAN BOTH CAUSE BIRTH DEFECTS AND BE BLAMED FOR ONES THAT WOULD HAVE OCCURRED ANYWAY ABOUT 3 OF NEWBORNS HAVE CONGENITAL ABNORMALITIES OF WHICH LESS THAN 1 ARE BLAMED ON PRESCRIPTION DRUGS BENDECTIN WAS TAKEN IN 33 MILLION PREGNANCIES OVER 27 YEARS ACCORDING TO THE COMPANY BIRTH DEFECTS THEN WOULD HAVE BEEN EXPECTED IN NEARLY ONE MILLION OF THOSE CHILDREN EVEN IF NONE OF THE MOTHERS TOOK BENDECTIN THAT SORT OF LIABILITY RISK FIGURES INTO PHARMACEUTICAL COMPANIES' RESEARCH DECISIONS SAYS JOHN D SIEGFRIED ASSOCIATE VICE PRESIDENT FOR MEDICAL AFFAIRS AT THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION THE BENDECTIN CASE HE SAYS WAS PARTICULARLY ALARMING BECAUSE SCIENTIFIC STUDIES EXONERATED THE DRUG YET THE COMPANY IS STILL DEFENDING ITSELF IN COURT OF THE APPROXIMATELY 2000 BENDECTIN LAWSUITS FILED AGAINST THE COMPANY SEVERAL HUNDRED WERE DISMISSED OR SETTLEMENTS WERE REACHED FOR NOMINAL AMOUNTS ACCORDING TO A SPOKESMAN FOR MARION MERRELL DOW INC THE COMPANY THAT RESULTED WHEN MERRELL DOW PHARMACEUTICALS INC MERGED WITH MARION LABORATORIES INC IN 1989 THE COMPANY WON JUDGMENTS IN 36 CASES SIX OF WHICH ARE ON APPEAL TWO JUDGMENTS WERE RENDERED AGAINST THE COMPANY BUT ARE BEING APPEALED FEWER THAN 30 CASES ARE PENDING ONE CASE IS CURRENTLY BEFORE THE US SUPREME COURT THE SPOKESMAN FOR MARION MERRELL DOW ACKNOWLEDGES THAT THE COMPANY'S RESEARCH AND DEVELOPMENT EFFORTS DID SHIFT AWAY FROM PRODUCTS IN THE OBGYN AREA AND THE PROSPECT OF LITIGATION WAS ONE FACTOR IN THAT COMPANIES THAT SPECIALIZE IN WOMEN'S HEALTH PRODUCTS AMERICAN HOME PRODUCTS CORP'S WYETHAYERST LABORATORIES UNIT AND JOHNSON & JOHNSON'S ORTHO PHARMACEUTICAL CORP SAY LIABILITY HASN'T AFFECTED THEIR RESEARCH INTO WOMEN'S PRODUCTS A RECENT SURVEY BY THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION HOWEVER FOUND THAT OUT OF 301 DRUGS NOW UNDER DEVELOPMENT FOR WOMEN JUST FOUR ARE FOR PREGNANCY PROBLEMS PHYSICIANS SAY THEY DAILY FACE A HOST OF MEDICAL NEEDS THAT DRUG COMPANIES HAVEN'T ADDRESSED FORCING THEM TO CREATE THEIR OWN SOLUTIONS WHEN MERRELL VOLUNTARILY HALTED BENDECTIN PRODUCTION DR RUGGIERO AND HIS COLLEAGUES IMMEDIATELY BEGAN TO SEARCH FOR A REPLACEMENT HE SAYS AND LEARNED THAT THE DRUG'S INGREDIENTS WERE CONTAINED IN VITAMIN B6 AND UNISOM AN OVERTHECOUNTER SLEEPING AID SOLD BY PFIZER INC MANY OBSTETRICIANS SAY THEY ARE AWARE OF THE UNISOM THERAPY AND SOME RECOMMEND IT OR OTHER OVERTHECOUNTER MEDICATIONS SUCH AS UPJOHN CO'S DRAMAMINE OR PFIZER'S BONINE NOTING THE WARNING ON THE UNISOM PACKAGE AGAINST USE DURING PREGNANCY WASHINGTON DC ATTORNEY BARRY NACE SAYS ANY DOCTOR WHO WOULD PRESCRIBE SOMETHING LIKE THIS IS ASKING FOR A LAWSUIT MR NACE HAS BEEN INVOLVED IN FIVE BENDECTIN CASES INCLUDING THE ONE CURRENTLY BEFORE THE US SUPREME COURT MANY DRUGS FOR NAUSEA AND OTHER ILLNESSES HAVE WARNINGS AGAINST USE IN PREGNANCY BUT PHYSICIANS PRESCRIBE THEM TO PREGNANT WOMEN ANYWAY AND ARE LEGALLY ALLOWED TO DO SO ASTHMA DRUG TERBUTALINE FOR EXAMPLE IS WIDELY USED TO MANAGE PRETERM LABOR BUT ITS MAKERS STRONGLY ADVISE AGAINST SUCH TREATMENT ON THE DRUG'S LABEL THE WARNING IS PUT ON TO DEFEND THE DRUG COMPANIES' BUTTS SAYS DR RUGGIERO NOTING MEDICAL LITERATURE SUPPORTS THE PRACTICE A SPOKESMAN FOR CIBAGEIGY CORP A UNIT OF CIBAGEIGY AG AND A MAKER OF TERBUTALINE SAYS THE WARNING WAS INTENDED TO PRESENT WHAT WE KNOW ABOUT THE SAFETY OF THE DRUG TO PRESCRIBERS DR MOORE OF SANDOZ WAS RECENTLY PUT ON TERBUTALINE TO STOP PRETERM CONTRACTIONS AND SAYS SHE IS COMFORTABLE WITH THE DECISION TO USE THE UNAPPROVED TREATMENT IF WE WERE LIMITED TO APPROVED DRUGS I WOULDN'T HAVE THIS MEDICATION AND I WOULD HAVE A 25WEEKOLD PREMATURE BABY IN INTENSIVE CARE SHE SAYS PRETERM LABOR IS ONE OF THE FEW PREGNANCY CONDITIONS WHERE A DRUG HAS BEEN APPROVED FOR USE BUT DR MOORE SAYS SHE CONSIDERED THE SIDE EFFECTS UNACCEPTABLE STILL NOTING THAT TERBUTALINE GIVES HER CHILLS AND AFFECTS HER SPEECH AND THAT ITS LONGTERM EFFECTS ON THE FETUS ARE UNKNOWN SHE SAYS I WISH THERE WERE MORE TESTING AND MORE DRUGS WITH DIFFERENT OPTIONS AN FDA COMMITTEE RECENTLY RECOMMENDED THAT THE AGENCY URGE TERBUTALINE MAKERS MARION MERRELL DOW AND CIBAGEIGY TO SEEK APPROVAL OF THE DRUG AS A TREATMENT FOR PRETERM LABOR WE WANT LABELING TO BE SPECIFIC TO WHAT A DRUG IS BEING USED FOR SO THERE CAN BE STANDARDS ESTABLISHED SAYS RUTH MERKATZ AN FDA OFFICIAL SPECIALIZING IN WOMEN'S HEALTH ISSUES THE COMPANIES SAY THEY HAVEN'T STUDIED THE DRUG'S USE FOR PRETERM LABOR AND WILL EVALUATE ANY OFFICIAL REQUEST FROM THE FDA WHEN ONE IS MADE THE FDA ITSELF HAS STOOD IN THE WAY OF DRUG TESTING IN WOMEN WITH ITS POLICY EXCLUDING WOMEN IN THEIR CHILDBEARING YEARS FROM PARTICIPATING IN EARLY CLINICAL TRIALS IT PLANS TO REVISE THOSE GUIDELINES THIS SUMMER THE ORIGINAL GOAL OF PROTECTING WOMEN FROM HARM HAS IN MANY WAYS DEPRIVED WOMEN OF ADVANCES SAYS JOHN LARSEN PROFESSOR AND ACTING CHAIRMAN OF OBGYN AT GEORGE WASHINGTON UNIVERSITY MEDICAL CENTER YOU HAVE TO TAKE A LITTLE BIT OF RISK TO ADVANCE SEE RELATED LETTER LETTERS TO THE EDITOR MAKE SOMEONE PAY FOR YOUR MISERY WSJ JULY 15 1993 9306220064 YY93 MM07 9307150095 930622 LAW LEGAL BEAT LAWYERS PLAN TO ACCENTUATE THE POSITIVE BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET JOURNAL THE NATION'S LARGEST LEGAL ORGANIZATION HAS A MESSAGE FOR MOVIE BUFFS LAWYERS AREN'T DINOSAURS AND CERTAINLY NOT DINOSAUR FOOD UPSET THAT LAWYERS HAVEN'T BEEN GETTING A FAIR SHAKE IN THE MEDIA LATELY OFFICIALS OF THE AMERICAN BAR ASSOCIATION LAST WEEK VOTED TO FUND A NEW COMMUNICATIONS PLAN AIMED AT COUNTERING NEGATIVE PUBLIC ATTITUDES ABOUT LAWYERS AND THE JUSTICE SYSTEM THE GROUP PLANS TO SPEND 700000 OVER THE NEXT YEAR TO PAY FOR EVERYTHING FROM A NATIONAL CONFERENCE ON CIVIL JUSTICE TO NEW VIDEO RELEASES TRUMPETING LAWYERS' GOOD DEEDS THE ABA HAS FOR MANY YEARS DONE AN EXTRAORDINARY AMOUNT OF PUBLIC GOOD AND PUBLIC SERVICE SAYS J MICHAEL MCWILLIAMS THE PRESIDENT OF THE ORGANIZATION UNFORTUNATELY IT HAS NOT BEEN VERY GOOD AT LETTING PEOPLE KNOW WHAT IT IS DOING LAWYERS HAVE SUFFERED INDIGNITIES FOR YEARS BUT THE LATEST CAMPAIGN COMES AT A TIME WHEN LAWYERBASHING SEEMS TO BE MORE IN VOGUE THAN EVER IN THE HIT FILM JURASSIC PARK FOR INSTANCE ONE OF THEM IS SWALLOWED BY A HUNGRY DINOSAUR WHILE IN A POPULAR BEER COMMERCIAL THAT AIRED DURING THE NATIONAL BASKETBALL ASSOCIATION PLAYOFFS LAST WEEKEND AN OVERWEIGHT TAX LAWYER IS ROUNDED UP AND HOGTIED AT A RODEO PERSONALLY I WAS SICKENED BY IT SAYS HARRY HATHAWAY A LOS ANGELES BUSINESS LAWYER WHO IS THE DESIGNATED CHAIR OF THE NEW ABA COMMUNICATIONS COMMITTEE CHARGED WITH IMPLEMENTING THE NEW PLANS THE PLANS HAVE BEEN DEBATED FOR MONTHS ALTHOUGH MR HATHAWAY SAYS THE LATEST ADVERSE PUBLICITY WAS CERTAINLY GRIST FOR FURTHER DISCUSSION BY THE ORGANIZATION'S BOARD OF GOVERNORS MEETING IN BALTIMORE LAST WEEK TO CONSIDER THE PLANS HE SAYS THE BOARD ALSO VOTED TO SEND A LETTER TO PHILIP MORRIS COS' MILLER BREWING CO MAKERS OF THE BEER IN THE RODEO AD URGING IT TO BE A LITTLE MORE THOUGHTFUL ABOUT ITS ADS IN THE FUTURE WE NEED TO TELL THE PUBLIC WE ARE NOT ABOUT BAD THINGS WE ARE ABOUT GOOD THINGS HE SAYS IN THE PAST LAWYERS HAVE OFTEN GRITTED THEIR TEETH AT SUCH CHARACTERIZATIONS WITHOUT TAKING ACTION AND SO THE ABA INITIATIVES MODEST BY MANY ADVERTISERS' STANDARDS ARE CONSIDERED UNUSUAL AND SIGNIFICANT FOR ONE THING THE ABA INTENDS TO ENCOURAGE BAR LEADERS AROUND THE COUNTRY TO COMMUNICATE WITH THE LOCAL MEDIA ABOUT CURRENT AFFAIRS WHILE EMPHASIZING LAWYERS' KNOWLEDGE AND USEFULNESS AS PROBLEM SOLVERS IN ADDITION LEGAL EXPERTS WILL BE BROUGHT TOGETHER IN NATIONAL CONFERENCES TO DISCUSS IMPORTANT ISSUES OF THE DAY OTHER IDEAS UNDER CONSIDERATION ARE VIDEOTAPES SHOWING HOW ABA MEMBERS HELP POOR PEOPLE I DON'T EXPECT TO SEE US ON MTV ANYTIME SOON WITH OR WITHOUT THE BOARD OF GOVERNORS PLAYING SAXOPHONES SAYS RICHARD COLLINS AN ABA SPOKESMAN IN CHICAGO HOWEVER I'VE GOT A CHANCE TO BRING US INTO THE LATE 20TH CENTURY A LITTLE MORE EFFECTIVELY A FEW YEARS AGO ACCORDING TO MR COLLINS THE ABA DEVELOPED A PUBLICSERVICE ANNOUNCEMENT FOR LAW DAY MAY 1 THAT DISCUSSED THE VIRTUES OF THE BILL OF RIGHTS IT WAS PICKED UP BY DAN RATHER HE SAYS BUT THE PROGRAM WAS DISBANDED NOW HE SAYS HE WILL BE ABLE TO REVIVE IT ADVERTISING WHILE LEGAL IS STILL ANATHEMA TO MANY LAWYERS AND THE NEW INITIATIVES ALREADY HAVE PROMPTED CONCERN AMONG SOME BAR LEADERS MY POINT HAS BEEN THAT THE EMPHASIS OUGHT TO BE ON IMPROVING DEEDS RATHER THAN WORKING ON IMAGE SAYS JEROME SHESTACK A PHILADELPHIA LAWYER AND ABA GOVERNOR MR SHESTACK HAD RESERVATIONS ABOUT THE PLANS BUT NOW SEES THEM AS CONSTRUCTIVE HE ALSO POINTS OUT THAT THE COST ISN'T MUCH ESPECIALLY COMPARED WITH THE ABA'S PROJECTED 65 MILLION BUDGET FOR NEXT YEAR OTHERS ARE APPARENTLY CONCERNED THAT NO AMOUNT OF MONEY COULD CHANGE HOW THE PUBLIC FEELS ABOUT THE BAR A LOT OF PEOPLE INCLUDING SOME ON OUR OWN BOARD OF GOVERNORS SAID WOW THIS LOOKS LIKE AN IMPOSSIBLE TASK' MR HATHAWAY SAYS YET PROPONENTS STRESS THAT THE CAMPAIGN WILL FOCUS ON STRICTLY SUBSTANTIVE ISSUES RATHER THAN JUST IMAGEBUILDING AND CHANGES WERE MADE IN THE PLANS APPROVED BY THE BOARD LAST WEEK PRINCIPALLY CUTTING BACK THE PROPOSED PAIDADVERTISING PORTION OF THE CAMPAIGN MOREOVER ABA MEMBERS HAVE INDICATED IN A NUMBER OF SURVEYS IN RECENT YEARS THAT THEY CONSIDER BOOSTING THE PROFESSION'S IMAGE A PRIORITY ACCORDING TO SAMUEL S SMITH A MIAMI LAWYER AND ABA GOVERNOR WE ARE A VOLUNTARY ORGANIZATION AND SO WHEN YOU ARE DUESDRIVEN YOU NEED TO LISTEN TO THOSE PEOPLE HE SAYS I THINK ONE OF THE PROBLEMS IS WE ARE STARTING TO REALIZE THAT WE NEED TO TALK A DIFFERENT LANGUAGE TO THE PUBLIC HE ADDS AN INSURER DOESN'T HAVE TO PAY FOR A PATIENT'S HEART TRANSPLANT BECAUSE DOCTORS DIDN'T GET THE INSURANCE COMPANY'S APPROVAL BEFORE PERFORMING THE SURGERY A FEDERAL APPEALS COURT HAS RULED THE DECISION BY THE SEVENTH US CIRCUIT COURT OF APPEALS RULED THAT AS THE PATIENT'S INSURANCE PLAN UNAMBIGUOUSLY STATES NO BENEFITS ARE PAYABLE WITHOUT PRIOR APPROVAL JOEL MICHAELS A LAWYER IN WASHINGTON WHO SPECIALIZES IN HEALTH ISSUES SAYS THE CASE SHOWS THAT COURTS ARE GOING TO GIVE SOME WEIGHT TO THE LANGUAGE AND THE TERMS OF THE POLICY EVEN IF IT MEANS THAT A PATIENT OR HOSPITAL IS ULTIMATELY STUCK WITH THE BILL THE CASE INVOLVED A 44YEAROLD MAN BILLY VIA WHO HAD CORONARY BYPASS SURGERY AT LOYOLA UNIVERSITY MEDICAL CENTER IN CHICAGO AFTER THE SURGERY THE COURT SAID THE DOCTOR HAD TWO OPTIONS LET MR VIA DIE ON THE OPERATING TABLE OR INSERT AN ARTIFICIAL HEART TO PROLONG HIS LIFE UNTIL A HEART DONOR COULD BE LOCATED THE DOCTOR CHOSE TO DO THE IMPLANT AND THEN TRANSPLANTED A HUMAN HEART THE FOLLOWING MONTH MR VIA DIED TWO WEEKS LATER LOYOLA SUED THE INSURER HUMANA INSURANCE CO A UNIT OF HUMANA INC WHEN THE COMPANY REFUSED TO PAY THE MORE THAN 500000 IN EXPENSES ASSOCIATED WITH THE IMPLANT AND SUBSEQUENT TRANSPLANT BUT THE APPEALS COURT THREW OUT THE CLAIM SAYING HUMANA DIDN'T RECEIVE MR VIA'S RECORDS UNTIL AFTER HIS DEATH THE COURT ALSO HELD THAT HUMANA WAS JUSTIFIED IN DETERMINING THAT THE IMPLANT WAS EXPERIMENTAL AND IN DENYING COVERAGE THE SEVENTH CIRCUIT COURT OPINION IS BINDING IN ILLINOIS INDIANA AND WISCONSIN JOHN REIDY A LAWYER FOR LOYOLA SAID HIS CLIENT IS CONSIDERING AN APPEAL A COLLAPSED ELECTRONICS RETAIL CHAIN WON A JURY VERDICT OF 17 MILLION AGAINST COOPERS & LYBRAND THE CHAIN'S FORMER AUDITOR IN STATE COURT IN NEBRASKA COOPERS THE FIFTHBIGGEST US ACCOUNTING FIRM HAS BEEN HIT BY OTHER MAJOR LAWSUITS AND HAS PAID LARGE SETTLEMENTS IN AUDITINGMALPRACTICE CASES OVER THE PAST YEAR INVOLVING THE NOWDEFUNCT MINISCRIBE CORP AND THE PHARMOR INC DRUG STORE CHAIN IN THE NEBRASKA CASE THE MANAGEMENT OF WORLD RADIO LABORATORIES INC WHICH SOUGHT BANKRUPTCYCOURT PROTECTION IN 1989 ACCUSED COOPERS OF FAILING TO ENSURE THAT THE CLOSELY HELD COMPANY HAD A PROPER INTERNAL CONTROL SYSTEM JOE JONES A PARTNER OF THE OMAHA LAW FIRM OF FRASER STRYKER VAUGHN MEUSEY OLSEN BOYER & BLOCH WHICH REPRESENTED THE PLAINTIFF SAID COOPERS OVERLOOKED A DEBT OF 879000 THAT WORLD RADIO OWED TO A LENDER WHEN AUDITING RESULTS FOR THE YEAR ENDED JUNE 2 1984 MR JONES SAID THAT COOPERS'S ALLEGED NEGLIGENCE MADE IT DIFFICULT FOR A SUBSEQUENT ACCOUNTING FIRM TO ISSUE AN AUDITED ANNUAL STATEMENT FOR THE COUNCIL BLUFFS NEB CHAIN COOPERS ATTORNEY MAUREEN MCGRATH WHO WAS COCOUNSEL WITH OMAHA LAW FIRM KUTAK ROCK SAID THE ACCOUNTING FIRM HAS ASKED THAT THE JURY VERDICT BE SET ASIDE BECAUSE SPECULATIVE EVIDENCE ON DAMAGES WAS ADMITTED AT THE FIVEWEEK TRIAL IF THE VERDICT ISN'T SET ASIDE MS MCGRATH SAID COOPERS WILL APPEAL THE DECISION COOPERS ALSO MAINTAINS THAT IT FOLLOWED PROFESSIONAL STANDARDS IN ITS WORK FOR WORLD RADIO AND WASN'T NEGLIGENT AN ILLINOIS RULE BARRING JUDICIAL CANDIDATES FROM TAKING POSITIONS ON ISSUES OR MAKING PROMISES TO VOTERS IN ELECTIONS WAS STRUCK DOWN AS UNCONSTITUTIONAL THE RULE SIMILAR TO THOSE IN SEVERAL OTHER STATES PROHIBITED JUDICIAL CANDIDATES FROM ANNOUNCING THEIR VIEWS ON DISPUTED LEGAL OR POLITICAL ISSUES OR MAKING PLEDGES OR PROMISES OF CONDUCT IN OFFICE BUT THE FEDERAL APPEALS COURT IN CHICAGO SAID THE RULE WAS SO SWEEPING THAT IT DEPRIVED JUDICIAL CANDIDATES OF THE RIGHT TO EXPRESS THEIR VIEWS THE ILLINOIS JUDICIAL INQUIRY BOARD HAD ARGUED THAT THE RULE HAD A PROVISION LIMITING IT TO ISSUES LIKELY TO COME BEFORE THE JUDGE IN HIS JUDICIAL CAPACITY BUT THE APPEALS COURT SAID THE RULE WAS STILL TOO SWEEPING BECAUSE THERE IS ALMOST NO LEGAL OR POLITICAL ISSUE THAT IS UNLIKELY TO COME BEFORE A JUDGE CHICAGO ATTORNEY WILLIAM J HARTE WHO REPRESENTED ONE OF THE JUDICIAL CANDIDATES WHO CHALLENGED THE RESTRICTIONS SAID JUDGES HAD NO IDEA WHAT WAS APPROPRIATE CAMPAIGNING UNDER THE RULE CANDACE J FABRI AN ATTORNEY FOR THE JUDICIAL INQUIRY BOARD SAID THE APPELLATE DECISION CONFLICTS WITH THAT OF THE FEDERAL APPEALS COURT IN PHILADELPHIA TWO YEARS AGO UPHOLDING A SIMILAR RULE THE ILLINOIS BOARD IS CONSIDERING ITS OPTIONS MS FABRI SAID COMPANIES ENTANGLED IN DISPUTES OVER TRADEMARKS FALSE ADVERTISING AND UNFAIR COMPETITION WILL HAVE A NEW WAY TO STAY OUT OF THE COURTHOUSE THIS FALL AN ALTERNATIVE DISPUTE RESOLUTION PROGRAM THAT FOCUSES ON TRADEMARK ISSUES WILL BEGIN OCT 1 IT IS A JOINT VENTURE OF THE INTERNATIONAL TRADEMARK ASSOCIATION A NEW YORK ORGANIZATION OF TRADEMARK OWNERS AND ATTORNEYS AND THE CENTER FOR PUBLIC RESOURCES A NEW YORKBASED ALLIANCE THAT PROMOTES ALTERNATIVE DISPUTE RESOLUTION AND INCLUDES 530 CORPORATE GENERAL COUNSELS THE TWO GROUPS ARE GATHERING A PANEL OF ABOUT TWO DOZEN TOP TRADEMARK LAWYERS TO ACT AS MEDIATORS OR ARBITRATORS IN DISPUTES LENGTHY LITIGATION IS ESPECIALLY PROBLEMATIC IN TRADEMARK DISAGREEMENTS SAID ROBIN ROLFE EXECUTIVE DIRECTOR OF THE TRADEMARK ASSOCIATION BRANDS ARE OFTEN REMOVED FROM STORE SHELVES DURING THE PROTRACTED LITIGATION PROCESS SHE SAID WHICH ADVERSELY AFFECTS THEIR COMPETITIVENESS AND UNDERMINES CONSUMER CONFIDENCE IN THOSE BRANDS NOTED KEENE CORP A FORMER ASBESTOS MANUFACTURER WON A TEMPORARY COURT ORDER FREEING IT FROM PAYING ALMOST ALL COURT JUDGMENTS AGAINST IT US DISTRICT JUDGE JACK B WEINSTEIN SAID HE ISSUED THE ORDER BECAUSE KEENE PRESENTED INITIAL EVIDENCE THAT IT HAS ONLY A LIMITED FUND AVAILABLE TO PAY ALL CURRENT AND FUTURE ASBESTOS VICTIMS BUT JUDGE WEINSTEIN SAID KEENE CAN STILL PAY VICTIMS OF ASBESTOSRELATED DISEASES IF THEY ARE FACING EXTREME HARDSHIP AS A RESULT OF THEIR CONDITION IN RE KEENE CORP US DISTRICT COURT BROOKLYN NY CV932129 EDWARD FELSENTHAL CONTRIBUTED TO THIS COLUMN SEE RELATED LETTER LETTERS TO THE EDITOR MAKE SOMEONE PAY FOR YOUR MISERY WSJ JULY 15 1993 9306220067 YY93 MM07 9307150016 930622 DELIVER US FROM CLINTON'S SCHOOLS BILL BY BRUNO V MANNO IN 1989 GOV BILL CLINTON PLAYED A MAJOR ROLE IN THE BIPARTISAN EFFORT BEGUN BY THE NATION'S GOVERNORS TO REFORM EDUCATION BY DEVELOPING WORLDCLASS VOLUNTARY NATIONAL ACHIEVEMENT STANDARDS THESE STANDARDS WERE TO DEFINE WHAT ALL OUR CHILDREN SHOULD KNOW AND DO AND TESTS WOULD MEASURE WHETHER THE CHILDREN ARE LEARNING TO THOSE STANDARDS IRONICALLY IF PRESIDENT CLINTON'S 420 MILLION GOALS 2000 EDUCATE AMERICA ACT BECOMES LAW EDUCATION REFORM WILL DANGEROUSLY SHIFT FROM A FOCUS ON WHAT OUR CHILDREN LEARN TO WHAT EDUCATION BUREAUCRATS SPEND THE FULL SENATE IS EXPECTED TO CONSIDER THE BILL SOON WHILE THE HOUSE VERSION IS SCHEDULED TO BE VOTED OUT OF THE EDUCATION COMMITTEE TOMORROW GOALS 2000 WOULD SUBVERT EDUCATION REFORM BY PROPOSING SOCALLED VOLUNTARY NATIONAL DELIVERY STANDARDS WHICH WOULD MEASURE WHETHER THERE'S ADEQUATE MONEY PROGRAMS AND OTHER HUMAN AND PHYSICAL RESOURCES IN EVERY SCHOOL EVERY DISTRICT AND EVERY STATE FOR EXAMPLE THEY'D DETERMINE IF A SCHOOL HAS UPTODATE TECHNOLOGY AND TEXTBOOKS OR REASONABLE POLICIES ON CLASS SIZE AND DISCIPLINE IF TEACHERS AND ADMINISTRATORS RECEIVE TOP NOTCH TRAINING OR IF TEACHERS KNOW THE CURRICULUM AND TEACH TO MEET THE NEEDS OF CULTURALLY DIVERSE STUDENTS THE DELIVERY STANDARDS WOULD DESCRIBE RESOURCES WHAT WE PUT INTO THE SYSTEM AND NOT RESULTS WHAT WE EXPECT OUR CHILDREN TO KNOW AND DO THEY'RE STANDARDS FOR SCHOOLS NOT STANDARDS FOR STUDENTS WHAT'S THE PROBLEM WITH DELIVERY STANDARDS FIRST SUPPORTERS BELIEVE THAT UNTIL THEY'RE MET STUDENTS CAN'T BE HELD ACCOUNTABLE FOR LEARNING TO HIGH STANDARDS THAT'S WHY GOALS 2000 MONEY CAN'T BE USED BY STATES AND COMMUNITIES TO CREATE EXAMS THAT DECIDE IF STUDENTS CAN ADVANCE GRADUATE OR BE EMPLOYED THIS APPROACH BLOCKS THE DEVELOPMENT OF A MEANINGFUL NATIONAL TESTING SYSTEM AS SECRETARY OF EDUCATION DICK RILEY ANOTHER FORMER GOVERNOR ADMITS WE ARE NOT PROPOSING IN ANY WAY NATIONAL TESTING FOR INDIVIDUALS SECOND DELIVERY STANDARDS ARE LINKED WITH A STATE'S ELIGIBILITY FOR FEDERAL EDUCATION MONEY GOALS 2000 MONEY WOULD BE WITHHELD FROM STATES AND COMMUNITIES LACKING DELIVERY STANDARDS THAT MIRROR THE VOLUNTARY NATIONAL ONES NOT TO BE OUTDONE BY THE ADMINISTRATION HOUSE EDUCATION COMMITTEE DEMOCRATS GO FURTHER THEY'VE AMENDED THE BILL TO REQUIRE THAT BEFORE STATES RECEIVE ANY FEDERAL EDUCATION MONEY THEY MUST SPECIFY CORRECTIVE ACTIONS THEY'D TAKE IF A SCHOOL FAILS TO MEET DELIVERY STANDARDS REQUIREMENTS THIRD NATIONAL DELIVERY STANDARDS REQUIRE A NATIONAL MECHANISM TO DIRECT DEVELOPMENT AND TO POLICE ENFORCEMENT GOALS 2000 WANTS A NATIONAL EDUCATION STANDARDS AND IMPROVEMENT COUNCIL CHOSEN BY THE PRESIDENT AND DOMINATED BY EDUCATION BUREAUCRATS THUS NESIC WOULD BECOME A POWERFUL NATIONAL SCHOOL BOARD WITH NO REQUIREMENTS FOR BIPARTISANSHIP OR LAY CONTROL OF EDUCATION DEFYING LONGSTANDING AMERICAN TRADITION FOURTH DELIVERY STANDARDS ARE OPPORTUNITIES TO DRAG STATES AND COMMUNITIES INTO COURT TO EQUALIZE RESOURCES AS REP BILL GOODLING R PA SAID AT THE COMMITTEE HEARING ON THE BILL I AGREE WITH THE CONCEPT THAT YOU NEED TO HAVE EQUAL OPPORTUNITY BUT ALL I CAN SEE IS THE TRIPS TO THE COURT LITIGATION IS NOT SOME FARFETCHED IMAGINING AN ALABAMA STATE COURT RULED RECENTLY THAT THE K12 STATE SYSTEM IS UNCONSTITUTIONAL BECAUSE IT DOESN'T PROVIDE STUDENTS WITH AN ADEQUATE EDUCATION JUDGE EUGENE REESE IN A 125PAGE OPINION LISTS CRITERIA SCHOOLS MUST MEET INCLUDING PROVIDING STUDENTS WITH AN OPPORTUNITY TO ATTAIN SUFFICIENT SKILLS TO COMPETE WITH STUDENTS THROUGHOUT THE WORLD AND SUFFICIENT UNDERSTANDING OF THE ARTS TO ENABLE EACH STUDENT TO APPRECIATE HIS OR HER CULTURAL HERITAGE AND THE CULTURAL HERITAGE OF OTHERS HELEN HERSHKOFF A LAWYER FOR THE AMERICAN CIVIL LIBERTIES UNION REPRESENTING THE PLAINTIFFS CALLS THE DECISION A LANDMARK BECAUSE IT RECOGNIZES THAT CHILDREN HAVE A RIGHT NOT ONLY TO AN EQUITABLE EDUCATION BUT ALSO TO AN ADEQUATE EDUCATION ALL THIS LANGUAGE REFLECTS A DELIVERY STANDARDS APPROACH WHILE FORMER GOVS CLINTON AND RILEY HAVE COME OUT FOR DELIVERY STANDARDS AT LEAST TWO OF THEIR FORMER COLLEAGUES ARE IN STRONG OPPOSITION GOVS ROY ROMER D COLO AND CARROLL CAMPBELL R SC WROTE MR RILEY TO SAY THAT GOALS 2000 WOULD CREATE A FEDERAL INTRUSION INTO STATE POLICIES AND GIVE THE DEPARTMENT TOO MUCH CONTROL OVER CURRICULA AND HOW STATES SPEND EDUCATION FUNDS WASHINGTON WILL IMPOSE ON STATES COMMUNITIES AND CLASSROOMS MORE FEDERAL RED TAPE MORE REQUIREMENTS AND MORE DIRECTIVES THROUGH RULES AND REGULATIONS EVEN ALBERT SHANKER PRESIDENT OF THE AMERICAN FEDERATION OF TEACHERS WHILE GENERALLY PRAISING GOALS 2000 THINKS IT WRONG TO PAIR THE DEFINING OF OUTCOMES WITH THE DEFINING OF RESOURCES BECAUSE THOSE ARE TWO DIFFERENT DISCUSSIONS AND ANY NEW COUNCIL DOING THAT WILL BE PARALYZED AND UNLIKELY TO ACHIEVE ITS MISSION OF CERTIFYING WORLDCLASS ACHIEVEMENT STANDARDS FOR STUDENTS BILL CLINTON RAN AS A NEW DEMOCRAT BUT HE'S PICKED UP THE OLD DEMOCRATS' EDUCATION AGENDA MORE GOVERNMENT FROM WASHINGTON AND WITH IT MORE MONEY MORE LAWSUITS AND MORE BUREAUCRACY STRANGLING STATES AND COMMUNITIES IT'S THE MOST AMOUNT OF MONEY FOR THE LEAST AMOUNT OF CHANGE WITH THE MONEY GOING TO THE CROWD THAT CONTROLS THE SCHOOLS AND LIKES THEM THE WAY THEY ARE MR MANNO FORMER US ASSISTANT SECRETARY OF EDUCATION FOR POLICY AND PLANNING IS AN EDUCATION CONSULTANT AT THE WASHINGTON OFFICE OF THE HUDSON INSTITUTE SEE RELATED LETTER LETTERS TO THE EDITOR DON'T DISTORT CLINTON EDUCATION REFORM WSJ JULY 14 1993 9306220068 YY93 MM07 9307150158 930525 MARKETSCAN WHILE MANY COMPETITORS SEE SALES MELT BEN & JERRY'S SCOOPS OUT SOLID GROWTH BY SUEIN L HWANG STAFF REPORTER OF THE WALL STREET JOURNAL HAS DAVID TURNED INTO GOLIATH BEN & JERRY'S HOMEMADE INC THE UPSTART ICECREAM MAKER FAMED FOR FILING AN ANTITRUST SUIT AGAINST GIANT HAAGENDAZS INC IN 1984 IS NOW ABOUT A SPOONFUL BEHIND HAAGENDAZS IN MARKET SHARE AND LAST YEAR SAW SALES INCREASE BY MORE THAN 45 WHILE HAAGENDAZS'S TRADITIONAL LINES REGISTERED A SALES DROP WHAT'S MORE BEN & JERRY'S WHOSE SUIT ACCUSED HAAGENDAZS OF PRESSURING ITS DISTRIBUTORS TO DROP BEN & JERRY'S PRODUCTS HAS ITSELF BLOCKED ITS LARGEST DISTRIBUTORS FROM CARRYING MATTUS' A NEW LOWFAT ICE CREAM PRODUCED BY THE FAMILY THAT BUILT AND LATER SOLD THE HAAGENDAZS EMPIRE DORIS MATTUS HURLEY PRESIDENT OF SEVENMONTHOLD MATTUS GROUP INC SAYS BEN & JERRY'S HAS BASICALLY TOLD DISTRIBUTORS THAT IT DOESN'T WANT THEM CARRYING US SHE NOTES THAT HER COMPANY HAS SUCCEEDED IN GETTING ITS ICE CREAM INTO ONLY 11 STATES SO FAR THEY'VE BASICALLY KEPT US OUT OF THE NEW ENGLAND AREA COMPLETELY WHEN BEN & JERRY'S WAS SMALL AND TRYING TO GET STARTED THEY COMPLAINED THAT THE BIG BOYS WERE PICKING ON THEM NOW THEY'RE THE BIG BOYS PICKING ON US MS HURLEY GRIPES BEN & JERRY'S OFFICIALS SAY NO COERCION IS INVOLVED THE COMPANY SAYS IT HAS PREEXISTING CONTRACTS WITH SOME LARGE DISTRIBUTORS WHO HAVE AGREED VOLUNTARILY NOT TO CARRY OTHER SUPERPREMIUM BRANDS IN EXCHANGE FOR THE SOLE RIGHT TO BEN & JERRY'S BUSINESS IN A GIVEN GEOGRAPHIC AREA MATTUS'S SIMILAR PACKAGING AND PREMIUM PRICE MAKE IT A SERIOUS RIVAL THEY SAY WE'RE NOT OUT TO RESTRICT MATTUS'S ACCESS TO THE MARKETPLACE IN ANY WAY INSISTS FRAN RATHKE BEN & JERRY'S CHIEF FINANCIAL OFFICER BUT EVERY FOOD MANUFACTURER WILL TELL YOU IT'S FIERCELY COMPETITIVE TO GET SHELF SPACE OUT THERE MATTUS' SHE ADDS SHOULD BE ABLE TO FIND OTHER DISTRIBUTORS THE AGREEMENTS THAT NOW BIND DISTRIBUTORS EXCLUSIVELY TO BEN & JERRY'S WEREN'T COMMONPLACE WHEN THE COMPANY TOOK ON HAAGENDAZS IN THAT CASE THE TWO COMPANIES REACHED AN OUTOFCOURT SETTLEMENT BUT TODAY THEY ARE A FIXTURE OF THE ICECREAM BUSINESS INDEED BEN & JERRY'S ISN'T MATTUS'S ONLY PROBLEM HAAGENDAZS IT TURNS OUT IS FREEZING ITS FOUNDING FAMILY OUT OF ITS OWN DISTRIBUTION NETWORK AND BEN & JERRY'S MS RATHKE SAYS THAT IN RECENT MONTHS SMALLER DISTRIBUTORS WHO CARRY BOTH HAAGENDAZS AND BEN & JERRY'S HAVE BEEN UNDER PRESSURE FROM HAAGENDAZS TO DROP BEN & JERRY'S THEY ARE DOING EVERYTHING THEY CAN TO STOP BEN & JERRY'S FROM GROWING SHE SAYS RETORTS A HAAGENDAZS SPOKESMAN YOU DON'T FIND COKE IN PEPSI TRUCKS OUR DISTRIBUTION POLICY IS NO DIFFERENT FROM OTHER NATIONAL BRANDS BEN & JERRY'S TOUGH STANCE UNDERSCORES THE COMPETITIVE JOCKEYING UNDER WAY AS THE MATURING COMPANY EDGES CLOSER TO OVERTAKING HAAGENDAZS AS THE LEADER IN THE SUPERPREMIUM ICECREAM CATEGORY LESS THAN A DECADE AFTER ITS TUSSLE WITH HAAGENDAZS BEN & JERRY HAS COME WITHIN STRIKING DISTANCE OF ITS OLD NEMESIS ACCORDING TO DATA GATHERED BY INFORMATION RESOURCES INC'S INFOSCAN SERVICE SUPERMARKET SALES OF BEN & JERRY'S PRODUCTS GREW 454 TO 1471 MILLION IN THE 52 WEEKS ENDED APRIL 4 SALES OF HAAGENDAZS DROPPED 67 TO 1515 MILLION IN THE SAME PERIOD ALTHOUGH A NEW LINE HAAGENDAZS EXTRAAS CONTRIBUTED AN ADDITIONAL 159 MILLION IN SALES LAST YEAR AMONG OTHER SUPERPREMIUM BRANDS COLOMBO GOURMET ELAN AND FRUSEN GLADJE ALL REGISTERED SALES DECLINES IN THE 52WEEK PERIOD THE GREAT MAJORITY OF SUPERPREMIUM ICECREAM SALES ARE MADE IN SUPERMARKETS HAAGENDAZS FOR EXAMPLE SAYS THAT ONLY 55 OF ITS SALES COMES FROM ITS OWN STORES MUCH OF BEN & JERRY'S STRONG GROWTH HAS RESULTED FROM ITS ABILITY TO DEVELOP SUCCESSFUL NEW FLAVORS A MARKETING EDGE THAT ICE CREAM GURUS TERM THE CHOCOLATECHIPCOOKIEDOUGH PHENOMENON THAT ONE FLAVOR INTRODUCED IN 1991 GENERATED AN ESTIMATED 17 OF BEN & JERRY'S SALES LAST YEAR PROMPTING A FLURRY OF COPYCAT PRODUCTS HAAGENDAZS EXTRAAS FOR EXAMPLE INCLUDES FLAVORS THAT GO WELL BEYOND THE BASICS A CHOCOLATECHIPCOOKIEDOUGH FLAVOR WAS ADDED TO THE LINE IN FEBRUARY THE CUSTOMER IS GETTING A LITTLE BORED WITH VANILLA CHOCOLATE AND STRAWBERRY SAYS AN ICECREAM BUYER FOR ONE LARGE EAST COAST SUPERMARKET CHAIN THEY WANT SOME EXCITEMENT IN THE FREEZER EXECUTIVES AT BEN & JERRY'S SAY THEIR HAAGENDAZS COUNTERPARTS ARE FEELING THE HEAT HAAGENDAZS IS DEFINITELY ON ITS TOES NOW TRYING TO DO STRONGER MARKETING AND ADVERTISING CAMPAIGNS SAYS MS RATHKE AS ICECREAM MAKERS ENTER THEIR PEAK SELLING MONTHS HAAGENDAZS HAS BOOSTED ITS MARKETING BUDGET 30 OVER A YEAR AGO MUCH OF WHICH WILL BE SPENT PROMOTING THE EXTRAAS LINES WE'RE BRINGING IN THE 18TO35 AGE GROUP SAYS MICHAEL PAXTON CHIEF EXECUTIVE OFFICER EXTRAAS ARE NEW AND DIFFERENT AND MAKE THE HAAGENDAZS BRAND MORE APPROACHABLE MR PAXTON BLAMES DECLINING SALES OF THE COMPANY'S TRADITIONAL FLAVORS PARTLY ON CANNIBALIZATION FROM ITS NEW EXTRAAS ICE CREAMS SUCH AS CARROT CAKE PASSION AND TRIPLE BROWNIE OVERLOAD BUT HE CONCEDES THAT THE EXOTIC BLENDS PIONEERED BY BEN & JERRY'S SUCH AS CHERRY GARCIA CHERRIES AND CHOCOLATE CHUNKS IN SWEET CREAM AND CHUNKY MONKEY WALNUTS AND CHOCOLATE IN BANANA ICE CREAM ARE THE KEY TO THE FUTURE WE'RE LOOKING TO SEE CONTINUED GROWTH DRIVEN QUITE FRANKLY BY THE 'MIXIN' SEGMENT WITH ITS ADDED NUTS AND FRUITS HE SAYS IT'S A TOUGH ADMISSION FOR A COMPANY WHOSE BESTSELLING FLAVOR IS STILL VANILLA BUT HAAGENDAZS IS WORKING FEVERISHLY TO APPEAL TO THE TWENTYSOMETHING AUDIENCE THAT BEN & JERRY'S COMMANDS TWO MONTHS AGO IT REPACKAGED ITS FROZENYOGURT LINE AND INTRODUCED THREE EXTRAAS YOGURT FLAVORS LAST WEEK IT ROLLED OUT TWO EXTRAAS ICECREAM BARS ACCORDING TO HAAGENDAZS CONSUMERS AGED 18 TO 24 REPRESENT 3 OF TOTAL ICECREAM CONSUMPTION BUT NEARLY 7 OF HAAGENDAZS CONSUMPTION AND EVEN MORE FOR BEN & JERRY'S BUT CONVERTING DIEHARD BEN & JERRY'S FANS MAY BE A TOUGH SELL FOR HAAGENDAZS I'VE NEVER HAD ANY DESIRE TO GO TO HAAGENDAZS DECLARES ART MURPHY A 28YEAROLD NEW YORK BANKER AND AMATEUR TRIATHLETE WHO EATS THREE TO FOUR PINTS OF BEN & JERRY'S ICE CREAM A WEEK BEN & JERRY'S TENDS TO DRIVE THE NEW FLAVORS EVERYONE ELSE JUST COPIES THEM AND LOTS OF THE HAAGENDAZS FLAVORS ARE KIND OF BORING AS FOR MATTUS' MS HURLEY IS HOPING TO WHIP UP SOME PUBLIC CONTROVERSY OF HER OWN SHE HAS EVEN CONSIDERING AIRING HER GRIEVANCES ON THE HOWARD STERN RADIO SHOW WHERE SHE HAS BEEN A GUEST BEFORE WHATEVER HAPPENS MS HURLEY SEEMS DETERMINED TO SUCCEED WE BUILT HAAGENDAZS'S DISTRIBUTION SYSTEM SHE SAYS IF WE BUILT IT ONCE WE CAN BUILD IT AGAIN THE CREATOR OF HAAGENDAZS HAS DEVELOPED A NEW ICE CREAM BRAND CALLED MATTUS' BUT BEN & JERRY'S AND HAAGENDAZS ARE FREEZING IT OUT OF DISTRIBUTION SEE RELATED LETTER LETTERS TO THE EDITOR HAAGENDAZS SALES WSJ JULY 15 1993 9305250110 YY93 MM07 9307130172 930603 THE PATH TO A ZERO DEFICIT BY PAUL E TSONGAS THE DEFICIT IS NOT BOSNIA THE BUDGET IS NOT A PROBLEM FROM HELL THEY ARE IN FACT A UNIQUE OPPORTUNITY FOR PRESIDENT CLINTON TO FORM A BIPARTISAN CONSENSUS SILENCE HIS CRITICS PUT THE MORE RABID REPUBLICANS ON THE DEFENSIVE AND STEER THIS NATION TOWARD ECONOMIC WELLBEING ALL OF THIS OF COURSE WOULD MAKE THE 1996 REELECTION AN EVENT TO BE RELISHED NOT FEARED INDEED IN THIS CASE GOOD POLICY IS GOOD POLITICS SOUNDS GREAT BUT HOW VERY SIMPLE FORGET WHO AUTHORED WHAT FORGET WHO CRITICIZED WHOM FORGET THAT THERE ARE TWO POLITICAL PARTIES REMEMBER ONLY THAT AMERICANS WANT A SOLUTION TO THE DEFICIT SO THAT THEY AND THEIR CHILDREN CAN HAVE A DECENT FUTURE SUCH A SOLUTION COMES IN FOUR PARTS SOME ASSEMBLY REQUIRED PART ONE PRESIDENT CLINTON WAS RIGHT ON THE NEED FOR MORE TAXES WHILE THE REPUBLICAN RIGHT WILL RANT AND RAVE ABOUT RAISING TAXES THESE ARE THE SAME PEOPLE WHO CONDONED 3 TRILLION OF DEBT IN THE PAST 12 YEARS WITHOUT ANY SENSE OF SHAME OR EMBARRASSMENT THE FACTS ARE UNAVOIDABLE THE DOMESTIC DISCRETIONARY PART OF THE FEDERAL BUDGET OTHER THAN ENTITLEMENTS INTEREST ON THE DEBT AND DEFENSE IS 15 OF THE BUDGET THAT IS LESS THAN THE FEDERAL DEFICIT BY DEFINITION IF YOU BLEW AWAY ALL OF DISCRETIONARY GOVERNMENT YOU WOULD STILL HAVE A DEFICIT THE REPUBLICAN RIGHT AVOIDS THESE FACTS BECAUSE IT IS ADDICTED TO SPENDANDBORROW POLICIES THAT IS MORE GENERATIONALLY IRRESPONSIBLE THAN TAXANDSPEND LIBERAL POLICIES THERE IS HOWEVER A THIRD APPROACH THAT GOES ONE STEP FURTHER TAX AND REDUCE THE DEFICIT HORRORS PEOPLE WHO ARE WELLTODO CAN PAY MORE TAXES AND WILL DO SO BUT ONLY IF THOSE TAXES ARE NOT DIVERTED TO NEW SPENDING EVERYWHERE I TRAVEL IN THIS COUNTRY I HEAR THE SAME REFRAIN I'LL PAY MORE TAXES BUT THEY MUST GO TO REDUCING THE DEFICIT PART TWO SENS JOHN DANFORTH R MO AND DAVID BOREN D OKLA ARE RIGHT THERE MUST BE MORE SPENDING CUTS AND ENTITLEMENTS MUST BE PART OF THE PACKAGE ENTITLEMENT CUTS ARE SEEN AS THE THIRD RAIL OF AMERICAN POLITICS YET NOT TO TOUCH THEM IS TO DOOM AMERICA TO ECONOMIC DECLINE FOR THE VERY SIMPLE REASON THAT THE DEFICIT WILL REMAIN AT THE 200 BILLION TO 400 BILLION LEVEL EACH YEAR AS FAR AS THE EYE CAN CURRENTLY SEE SENS BOREN AND DANFORTH TARGET ENTITLEMENTS BECAUSE AT ALMOST 50 OF THE BUDGET THAT'S WHERE THE MONEY IS THE BORENDANFORTH PROPOSAL DOES NOT AFFECT THE SENIOR CITIZENS MOST IN NEED IT CALLS FOR A 2 DROP IN THE COSTOFLIVING INCREASE FOR FEDERAL AND MILITARY RETIREES AND SOCIAL SECURITY RECIPIENTS BUT ONLY AFTER FULLY INDEXING THE FIRST 600 OF MONTHLY BENEFITS IT ALSO ASKS MORE AFFLUENT RETIREES TO FUND A PORTION OF THEIR MEDICARE COSTS SENIOR CITIZENS ARE PREPARED DESPITE FEARS TO THE CONTRARY TO PARTICIPATE IN DEFICIT REDUCTION FOR TWO SIMPLE REASONS FIRST A PROSPEROUS AMERICA WILL MORE LIKELY ENSURE AVOIDANCE OF FUTURE SOCIAL SECURITY CUTS AND SECOND SENIOR CITIZENS SHOW A DEEPROOTED CONCERN FOR THE FUTURES OF THEIR CHILDREN AND GRANDCHILDREN PART THREE ROSS PEROT WAS RIGHT A GASOLINE TAX IS A WORTHY SUBSTITUTE FOR THE BTU TAX THAT HAS SO MANY PEOPLE UPSET WHILE I WOULD SUPPORT THE BTU TAX I RECOGNIZE THAT YOU CAN GET THE SAME REVENUE STREAM BY ADDING SIX CENTS PER YEAR FOR FIVE YEARS TO THE FEDERAL GASOLINE TAX THAT IS LOWER THAN THE FIVE CENTS A YEAR FOR 10 YEARS PROPOSAL I MADE DURING THE LAST CAMPAIGN AND ROSS PEROT'S 10 CENTS A YEAR FOR FIVE YEARS PLAN THE GASOLINE TAX IS NOT IDEAL BUT NO ENERGY TAX IS IT DOES NOT GO DIRECTLY TO THE COST OF PRODUCTION IN THE PROPORTION THAT A BTU TAX WOULD BUT IT WOULDN'T EVEN BEGIN TO RAISE GASOLINE PUMP PRICES TO THOSE IN JAPAN AND EUROPE AND IT HAS HAD POLITICAL GROUND BROKEN FOR IT ALREADY BY THE TSONGAS AND PEROT PLANS PART FOUR BOB DOLE IS RIGHT THE EASIEST WAY TO CUT THE DEFICIT IS TO GROW THE ECONOMY EVERYONE AGREES THAT INVESTMENT IS THE KEY TO ECONOMIC GROWTH THE SUREST WAY TO CAUSE INVESTMENT IN OUR PLANT AND EQUIPMENT IN OUR RESEARCH AND DEVELOPMENT IN OUR EXISTING COMPANIES AND IN OUR STARTUPS IS A TARGETED CAPITALGAINS TAX CUT FOR SECURITIES HELD FOR THE LONG TERM MORE SPECIFICALLY THERE SHOULD BE NO CAPITAL GAINS TAX FOR SECURITIES HELD FOR FIVE YEARS THIS CHANNELS EQUITY INTO OUR CORPORATE STRUCTURE AND THAT EQUITY IS PATIENT DEMOCRATS DON'T LIKE CAPITALGAINS TAX CUTS BECAUSE TO SUPPORT THE CONCEPT IS TO GIVE UP THE WONDERFUL WEAPON OF CLASS WARFARE REPUBLICANS DON'T LIKE TARGETED CAPITALGAINS TAX CUTS BECAUSE RONALD REAGAN DIDN'T LIKE THEM TO BE RESTRICTED BUT OUR FUTURE LIES IN OUR MANUFACTURING BASESEEDS STARTUPS SMALL MIDSIZE LARGE AND HUGE COMPANIES LET THEM WITHER AND THERE IS NO AMERICA THIS COMBINING OF THESE VARIOUS PROPOSALS PUTTING THE BEST TOGETHER WITH THE BEST ATTRACTS AN IMPRESSIVE ARRAY OF COAUTHORS AND PROVIDES INDEPTH POLITICAL COVERAGE FOR WARY MEMBERS OF CONGRESS BUT WHAT REALLY COUNTS FOR AMERICANS WHO ARE NOT MEMBERS OF THE HOUSE AND SENATE IS THE REALITY THAT THIS MELDING STARTS OUR NATION DOWN THE PATH TO THE ZERO DEFICIT THE BUSH LEGACY OF DEFICITS RISING TO 360 BILLION BY 1998 IS UNSPEAKABLE THE CLINTON AND HOUSE BUDGETS RAMP UP AFTER THE 1996 ELECTION BUT THE MELDING PROPOSAL DESCRIBED HERE STARTS DOWN AND MOST CRITICALLY REMAINS IN A DOWNWARD PATH REACHING A DEFICIT OF 169 BILLION BY 1997 AND 158 BILLION BY 1998 IT IS GOOD POLICY IT IS GOOD POLITICS IT ALLOWS A MEMBER OF CONGRESS TO VOTE FOR SOMETHING WITH BIPARTISAN BIIDEOLOGICAL BLOODLINES IT CAN BE DEFENDED MORE IMPORTANT IT ALLOWS THAT MEMBER OF CONGRESS TO PUT HIS OR HER CHILD TO BED AT NIGHT AND SAY WITH CONVICTION YOUR FUTURE WILL BE PRESERVED MR TSONGAS A 1992 CANDIDATE FOR PRESIDENT IS COCHAIRMAN OF THE CONCORD COALITION A BIPARTISAN ORGANIZATION DEDICATED TO ELIMINATING THE DEFICIT SEE RELATED LETTER LETTERS TO THE EDITOR RAVENOUS GOVERNMENT MAY EAT OUR FUTURE WSJ JULY 13 1993 9306030141 YY93 MM07 9307130143 930623 STEEL RULINGS DUMP ON AMERICA BY JAMES BOVARD THOUSANDS OF AMERICAN MANUFACTURERS WERE TAKEN HOSTAGE BY THE US GOVERNMENT YESTERDAY THE COMMERCE DEPARTMENT ANNOUNCED IT IS IMPOSING DUMPING DUTIES OF UP TO 109 ON STEEL IMPORTS FROM 19 NATIONS AS WELL AS SUBSIDY PENALTIES COUNTERVAILING DUTIES OF UP TO 73 ON STEEL FROM 12 NATIONS AS USUAL THE COMMERCE DEPARTMENT IN THESE CASES FOUND ALL FOREIGN COMPANIES THAT IT INVESTIGATED GUILTY OF UNFAIR TRADE YESTERDAY'S DECISION WAS THE MOST DAMAGING EXAMPLE YET OF THE CLINTON ADMINISTRATION'S PROTECTIONISMBYDEFAULT ONCE DUMPING DUTIES GREATER THAN 15 ARE IMPOSED ON A FOREIGN COMPANY EXPERTS ESTIMATE THAT ITS STEEL IS EFFECTIVELY BARRED FROM THE US MARKET BECAUSE MANY OF THE TYPES AND QUALITIES OF IMPORTED STEEL ARE NOT PRODUCED IN THE US THIS IS A DEVASTATING BLOW TO AMERICAN MANUFACTURERS THE CASES NOW GO TO THE US INTERNATIONAL TRADE COMMISSION WHICH WILL ISSUE A FINAL RULING ON JULY 27 ON WHETHER ALLEGEDLY DUMPED STEEL IMPORTS HAVE INJURED COMPETING US STEELMAKERS COMMERCE'S DUMPING MARGINS WILL EFFECTIVELY EXCLUDE ALMOST ALL FLATROLLED STEEL IMPORTS FROM ARGENTINA AUSTRALIA BRAZIL FINLAND FRANCE JAPAN ITALY MEXICO POLAND ROMANIA SPAIN SWEDEN AND THE UK THE COMMERCE DEPARTMENT CLAIMS THAT THE DUMPING DUTIES ARE NECESSARY BECAUSE ITS ANALYSES SHOWED THAT THE US PRICES OF FOREIGN STEEL PRODUCERS WERE UNFAIRLY LOW BUT MOST OF COMMERCE'S DECISIONS WERE BASED ON A DISREGARD OF THE ACTUAL PRICES OF FOREIGN STEEL INSTEAD FOR MOST CASES COMMERCE RELIED AT LEAST IN PART ON ITS OWN MAKEBELIEVE PRICES SINCE FOREIGN STEEL COMPANIES' PRICES WERE NOT AS HIGH AS COMMERCE'S MAKEBELIEVE PRICES COMMERCE HAS PRONOUNCED ALL THE FOREIGN COMPANIES GUILTY AND SOUGHT TO EXPEL MOST OF THEM FROM THE US MARKET COMMERCE USED TWO TYPES OF MAKEBELIEVE PRICES THE FIRST WAS BASED ON COMMERCE ANALYSTS' RECALCULATING FOREIGN COMPANIES' COST OF PRODUCTION OFTEN ARBITRARILY INCREASING THE COST OF COMPONENTS AND OTHER FACTORS THEN ADDING 8 FOR PROFIT AND 10 FOR ADMINISTRATIVE OVERHEAD THE SECOND METHOD CONSISTED OF INVOKING THE BEST INFORMATION AVAILABLE OFTEN SIMPLY THE ALLEGATIONS MADE BY US STEEL PRODUCERS IN THEIR COMPLAINTS TO COMMERCE EVEN IN CASES WHERE COMMERCE HAD VERIFIED MOST OF THE INFORMATION SUBMITTED BY FOREIGN COMPANIES US BUREAUCRATS FOUND PRETEXTS TO REJECT FOREIGN SUBMISSIONS AND INSTEAD SIMPLY TREATED THE UNSUBSTANTIATED ACCUSATIONS MADE BY AMERICAN COMPANIES AS GOSPEL TRUTH WHILE COMMERCE ANNOUNCED THE DUMPING MARGINS FOR ALL 19 NATIONS YESTERDAY IT POSTPONED THE RELEASE OF THE OFFICIAL DETERMINATIONS FOR SEVEN OF THEM AMONG THE REMAINING 12 10 OF THE PUNITIVE JUDGMENTS WERE BASED AT LEAST IN PART ON BIA SECRETARY OF COMMERCE RON BROWN STATED YESTERDAY INFORMATION USED IN MAKING OUR FINAL DETERMINATIONS WAS VERIFIED AND ALL INTERESTED PARTIES DOMESTIC AND FOREIGN ALIKE WERE ACCORDED AN OPPORTUNITY TO COMMENT BUT MR BROWN'S STATEMENT IS FALSE FOR MOST OF THE BIA DETERMINATIONS COMMERCE DID LITTLE OR NO VERIFICATION OF THE ALLEGATIONS MADE BY US COMPANIES FOR INSTANCE CHRIS STOKES A COUNSEL FOR THE BRAZILIAN COMPANY USIMINAS SAID THAT 90 OF THE MATERIAL INFORMATION SUBMITTED BY MY COMPANY WAS VERIFIED BY THE COMMERCE DEPARTMENT BUT COMMERCE EFFECTIVELY THREW OUT THE THOUSANDS OF PAGES OF INFORMATION AND CONCOCTED DUMPING DUTIES OF UP TO 42 BASED LARGELY ON THE PETITIONERS' UNVERIFIED ALLEGATIONS AND WHILE MR BROWN MET WITH CHIEF EXECUTIVE OFFICERS FROM US STEEL COMPANIES HE REFUSED TO MEET DIRECTLY WITH ANY FOREIGN REPRESENTATIVES IN THIS CASE VICE PRESIDENT AL GORE VISITED WARSAW IN APRIL AND HAILED THE GREEN SHOOTS OF FREE ENTERPRISE SPRINGING UP IN CITIES AND ON THE LAND IN POLAND BUT THE COMMERCE DEPARTMENT YESTERDAY JUDGED AND PENALIZED POLAND AS IF IT WERE STILL A COMMUNIST COUNTRY COMMERCE OFFICIALS USED A TWISTED METHODOLOGY THAT COMPARED POLAND'S US EXPORT PRICES WITH THE ALLEGED COSTS OF PRODUCTION IN THAILAND SOUTH AFRICA AND MALAYSIA COMMERCE THEN REVEALED THAT POLISH STEEL WAS GUILTY OF A DUMPING MARGIN OF 62 COMMERCE ACTIONS HAVE ALREADY SLASHED US STEEL EXPORTS TO MEXICO BY 25000 TONS THIS YEAR SEVERAL LARGE US STEEL MILLS SHIPPED UNFINISHED STEEL SHEET TO MEXICO WHERE IT WAS GALVANIZED AND SHIPPED BACK TO THE US ACCORDING TO THE US CUSTOMS SERVICE MUCH OF THE US STEEL SHIPPED TO MEXICO AND REEXPORTED TO THE US IS MADE IN AMERICA SINCE GALVANIZING ALONE DOES NOT SUBSTANTIALLY TRANSFORM THE STEEL SHEET BUT THE COMMERCE DEPARTMENT DISREGARDED THE CUSTOMS SERVICE INVENTED ITS OWN RULEOFORIGIN FOR STEEL AND IMPOSED A 65 DUMPING PENALTY ONCE COMMERCE IMPOSED A PRELIMINARY HIGH DUMPING MARGIN ON THE REIMPORTS OF AMERICAN STEEL IN JANUARY US EXPORTS OF STEEL SHEET TO MEXICO COLLAPSED SINCE THE MEXICANS WERE EFFECTIVELY PROHIBITED FROM EXPORTING THE FINISHED PRODUCT BACK TO THE US COMMERCE HAS TRAMPLED DUE PROCESS THROUGHOUT THIS INVESTIGATION FOR INSTANCE THE DEPARTMENT RECENTLY MADE RETROACTIVE THE PRELIMINARY PENALTIES IT IMPOSED LATE LAST JANUARY ON SEVERAL COUNTRIES ADDING POTENTIALLY MILLIONS OF DOLLARS OF PENALTIES ON STEEL IMPORTS COMMERCE INVENTED DUMPING MARGINS ABOVE 25 FOR MANY COMPANIES IN ITS PRELIMINARY DUMPING MARGINS ISSUED JAN 27 AND ALLEGED THAT STEEL IMPORTS FROM THOSE COMPANIES HAD INCREASED AT LEAST 15 THE DEPARTMENT THEN JUSTIFIED RETROACTIVE PENALTIES BASED ON IMPUTED KNOWLEDGE THAT IMPORTERS EITHER KNEW OR SHOULD HAVE KNOWN THAT THE IMPORTS WERE BEING SOLD AT LESS THAN FAIR VALUE COMMERCE COMPARED STEEL SHIPMENTS FOR THE SIX MONTHS BEFORE THE ANTIDUMPING PETITIONS WERE FILED LAST JUNE 30 AND THE SIX MONTHS AFTERWARD MOST FOREIGN COMPANIES' STEEL EXPORTS WERE RESTRICTED BY US IMPORT QUOTAS THAT EXPIRED MARCH 30 1992 COMMERCE IS THUS PUNISHING MANY FOREIGN COMPANIES BECAUSE THEIR STEEL EXPORTS INCREASED AFTER THE EXPIRATION OF THE IMPORT QUOTAS COMMERCE EVEN IMPOSED RETROACTIVE PENALTIES ON NATIONS WHOSE EXPORTS WERE A TINY FRACTION OF THE US MARKET EVEN THOUGH POLISH STEEL EXPORTS AMOUNTED TO LESS THAN HALF OF 1 OF US STEEL CONSUMPTION AND WERE DOWN SHARPLY FROM THE PREVIOUS YEAR COMMERCE STILL DECREED THAT THE POLES WERE GUILTY OF A MASSIVE INCREASE IN THEIR STEEL EXPORTS FOREIGN NATIONS ARE ALREADY BEGINNING TO RETALIATE AGAINST THE US BRAZIL HAS SLASHED ITS PURCHASES OF US COAL IN DIRECT RETALIATION FOR THE US ACTION AGAINST BRAZILIAN STEEL IMPORTS JAPANESE STEEL COMPANIES THAT INVESTED BILLIONS OF DOLLARS IN MODERNIZING AND UPGRADING STEEL PLANTS IN THE US ARE ESPECIALLY ANGRY AT WHAT THEY PERCEIVE AS A BETRAYAL BY THEIR AMERICAN JOINTVENTURE PARTNERS AND JAPAN IS REPORTEDLY CONSIDERING SOME TYPE OF RETALIATION THE PUNITIVE DUMPING RATES AND THE LIKELIHOOD OF A DE FACTO EMBARGO ON MANY TYPES AND QUALITIES OF IMPORTED STEEL ARE THE LARGEST TRADE POLICY FAILURE YET FOR THE CLINTON ADMINISTRATION STEELUSING INDUSTRIES EMPLOY 30 TIMES MORE AMERICANS THAN DO DOMESTIC STEEL MANUFACTURERS YET THE COMMERCE DEPARTMENT SEEMS TO CARE ONLY ABOUT STEEL PRODUCERS THIS DUMPING INVESTIGATION WAS CONTROLLED BY CAREER BUREAUCRATS WHO ARE WIDELY PERCEIVED TO BE CAPTURED BY DOMESTIC STEEL PRODUCERS AS ONE HIGHLY RESPECTED TRADE LAWYER OBSERVED THE PEOPLE IN THE CLINTON ADMINISTRATION DON'T UNDERSTAND THAT THE LAW SAYS THAT COMMERCE MUST BE OBJECTIVE IN HOW THEY HANDLE THESE TRADE CASES THE COMMERCE DEPARTMENT APPARENTLY BELIEVES THAT FAIRNESS SHOULD HAVE NOTHING TO DO WITH HOW IT ADMINISTERS AMERICA'S FAIR TRADE LAWS YESTERDAY'S RULING IS FURTHER PROOF THAT THE US DUMPING LAW IS ONE OF THE GREATEST THREATS TO US MANUFACTURING COMPETITIVENESS MR BOVARD WRITES OFTEN ON TRADE SEE RELATED LETTER LETTERS TO THE EDITOR IT WAS OUR DUTY TO IMPOSE DUTIES WSJ JULY 13 1993 9306230127 YY93 MM07 9307130127 930625 LEISURE & ARTS ON SPORTS NINE REASONS IT'S THE HUMBLING GAME' BY FREDERICK C KLEIN LAST WEEK'S US OPEN GOLF TOURNAMENT REMINDED OF AN IMPORTANT BUT SOMETIMES OVERLOOKED FACT ABOUT THE HUMBLING GAME IT'S THAT THERE IS GOLF AND REAL GOLF GOLF IS WHAT THE OPEN CONTESTANTS AS WELL AS AN UNDETERMINED NUMBER OF THE GAME'S LESSERSKILLED PARTICIPANTS PLAY IT IS CHARACTERIZED BY STRICT ADHERENCE TO THE ACTIVITY'S RULES OF WHICH THERE ARE MANY IT ALSO INVOLVES A DEGREE OF SELFPOLICING THAT'S RARE IN MODERNDAY SPORT GOLFERS HAVE BEEN KNOWN TO CALL PENALTIES ON THEMSELVES USUALLY THEY ARE ONLY TOO HAPPY TO TELL YOU ABOUT THIS REAL GOLF IS WHAT EVERYONE ELSE PLAYS IT'S BASED ON THE WELLFOUNDED TENET THAT THE GAME IS DIFFICULT FRUSTRATING AND EXPENSIVE ENOUGH WITHOUT THE ADDITIONAL BURDEN OF A RULEBOOK SO LARGE THAT IT WOULD TAKE AN EXTRA CADDY TO LUG IT AND A COMMITTEE OF LAWYERS PLUS A THEOLOGIAN OR TWO TO INTERPRET IT GOLFERS LOOK DOWN THEIR NOSES AT REAL GOLFERS BELIEVING THEY DEMEAN THE SPORT REALLY HOWEVER REAL GOLFERS HAVE ENRICHED IT THEIR CONTRIBUTIONS INCLUDE THE MULLIGAN THE FREE DRIVE THAT MANY TAKE OFF THE FIRST TEE AFTER AN ESPECIALLY POOR INITIAL EFFORT AND THE 10FOOT GIMME PUTT IT UNDOUBTEDLY WAS A REAL GOLFER WHO INTRODUCED BERMUDA SHORTS TO THE LINKS IF YOU'RE NOT CERTAIN WHETHER YOU ARE OR WOULD BE A GOLFER OR A REAL GOLFER CONSIDER YOUR REACTION TO THE ALLTOOCOMMON EXAMPLE OF A TEE SHOT STRUCK OUT OF BOUNDS THE GOLFER TEES UP ANOTHER BALL HITS IT AND BITING HIS LIP ACCEPTS THE RULEBOOK PENALTY OF STROKE AND DISTANCE MEANING THAT HE IS NOW LYING THREE THE REAL GOLFER TEES UP AND HITS BUT REASONING THAT THE LOSS OF A 2 BALL AND THE EMBARRASSMENT OF LOOKING BAD IN FRONT OF THE OTHER MEMBERS OF HIS FOURSOME ARE AMPLE PUNISHMENT CONSIDERS HIMSELF TO BE LYING TWO INDEED THE QUESTIONS THAT MOST OFTEN SEPARATE GOLFER AND REAL GOLFER PIVOT ON HOW MUCH PUNISHMENT FOR A MISCUE IS SUFFICIENT AS IF PLAYING A GAME IN WHICH THE DIFFERENCE OF A MILLIMETER OR TWO IN THE UNION OF CLUB FACE AND BALL SEPARATES THE BAD SHOTS FROM THE GOOD ISN'T PAINFUL ENOUGH AS YOU MIGHT SUSPECT THERE'S A TRIBUNAL THAT RULES ON THESE MATTERS IT'S COMPOSED OF OFFICIALS OF THE US GOLF ASSOCIATION THE SPORT'S GOVERNING BODY IN THIS LAND AND GREAT BRITAIN'S ROYAL AND ANCIENT GOLF CLUB OF ST ANDREWS SCOTLAND THESE FELLOWS WHOM ONE CAN PICTURE WEARING THEIR WINTER SUITS IN JULY CONVENE PERIODICALLY TO MAKE NEW RULES AND RESPOND TO QUERIES ABOUT EXISTING ONES THE LATEST RESULTS OF THEIR DELIBERATIONS A MERE FRACTION OF THEIR ONGOING EFFORTS HAVE BEEN PUBLISHED IN A 680PAGE 4INCHBY8INCH BOOK TITLED 1993 DECISIONS ON THE RULES OF GOLF IT'S AVAILABLE THROUGH THE USGA IN FAR HILLS NJ OR IN A BOOKSTORE EDITION PUBLISHED BY TRIUMPH BOOKS OF CHICAGO WHILE NOT EXACTLY LIGHT READING IT'S ABOUT AS APT A COMMENTARY ON THE GAME AND THE TIMES AS ONE CAN IMAGINE IT ALSO PROVIDES SEVERAL HUNDRED REASONS FOR BEING A REAL GOLFER HERE ARE SOME EXCERPTS Q A PLAYER STARTS HIS DOWNSWING AND HIS CLUBHEAD SEPARATES FROM ITS SHAFT THE PLAYER CONTINUES HIS STROKE BUT NO CONTACT IS MADE WITH THE BALL DID THE PLAYER MAKE A STROKE Q A BALL IS EMBEDDED IN AN ORANGE LYING UNDER AN ORANGE TREE WHAT IS THE RULING A THE PLAYER MUST PLAY THE BALL AS IT LIES OR DECLARE IT UNPLAYABLE SINCE THE ORANGE WAS ADHERING TO THE BALL IT WAS NOT A LOOSE IMPEDIMENT WHICH IS REMOVABLE WITHOUT PENALTY OUTSIDE A HAZARD Q A HALFEATEN PEAR LIES DIRECTLY IN FRONT OF A BALL IN A BUNKER HAZARD AND THERE IS NO PEAR TREE IN THE VICINITY IS THE PEAR AN OBSTRUCTION DEFINED AS A MANUFACTURED PRODUCT WHICH THE PLAYER COULD REMOVE IN A HAZARD WITHOUT PENALTY OR A LOOSE IMPEDIMENT A NO A PEAR IS A NATURAL OBJECT THE FACT THAT A PEAR HAS BEEN HALFEATEN AND THERE IS NO PEAR TREE IN THE VICINITY DOES NOT ALTER THE STATUS OF THE PEAR Q PLAYER A IS NEARLY STRUCK BY A BALL PLAYED BY A PLAYER IN THE FOLLOWING GROUP IN ANGER A HITS THE BALL BACK TOWARDS THE GROUP HAS A PLAYED A PRACTICE SWING OR A WRONG BALL A NO SIC HOWEVER IN EQUITY A SHOULD INCUR THE GENERAL PENALTY OF LOSS OF HOLE IN MATCH PLAY OR TWO STROKES IN STROKE PLAY Q A AND B HIT THEIR TEE SHOTS INTO THE SAME AREA BOTH BALLS WERE FOUND BUT BECAUSE A AND B WERE PLAYING IDENTICAL BALLS AND NEITHER HAD PUT AN IDENTIFICATION MARK ON HIS BALL THEY COULD NOT DETERMINE WHICH BALL WAS A'S AND WHICH WAS B'S WHAT'S THE RULING A SINCE NEITHER PLAYER COULD IDENTIFY A BALL AS HIS BALL BOTH BALLS WERE LOST AND THUS BOTH PLAYERS WERE PENALIZED Q A TUMBLEWEED BLOWING ACROSS THE COURSE STRIKES A BALL AT REST AND KNOCKS IT INTO THE HOLE WHAT'S THE PROCEDURE A THE BALL MUST BE REPLACED WHERE THE TUMBLEWEED STRUCK IT Q A PLAYER'S BALL ACCIDENTALLY STRIKES HIS CADDY STANDING OUT OF BOUNDS AND COMES TO REST IN BOUNDS WHAT'S THE RULING A IN MATCH PLAY THE PLAYER LOSES THE HOLE IN STROKE PLAY THE PLAYER INCURS A PENALTY OF TWO STROKES AND SINCE THE BALL CAME TO REST IN BOUNDS IT IS IN PLAY Q A PLAYER'S BALL ACCIDENTALLY STRIKES HIS CADDY STANDING OUT OF BOUNDS AND COMES TO REST OUT OF BOUNDS WHAT'S THE RULING A IN MATCH PLAY THE PLAYER LOSES THE HOLE IN STROKE PLAY THE PLAYER INCURS A PENALTY OF TWO STROKES AND SINCE THE BALL LIES OUT OF BOUNDS HE MUST INCUR ANOTHER PENALTY STROKE Q A PLAYER'S SHOT COMES TO REST IN AN AREA CONTAINING HEAVY ROUGH AND A LARGE BURROWINGANIMAL'S HOLE AFTER A SEARCH OF FIVE MINUTES THE LEGAL LIMIT THE REFEREE ADVISES THE PLAYER THERE IS NOT REASONABLE EVIDENCE THAT THE BALL IS LOST IN THE ANIMAL HOLE HE INSTRUCTS THE PLAYER TO RETURN TO THE TEE AND PUT ANOTHER BALL IN PLAY WITH PENALTY AS THE PLAYER IS RETURNING TO THE TEE HIS BALL IS FOUND IN THE ANIMAL HOLE BY SPECTATORS SHOULD THE REFEREE RECALL THE PLAYER AND PERMIT HIM TO PROCEED ON THE GROUNDS THAT THE DECISION IF SUBSEQUENTLY PROVED WRONG IN FACT SHOULD BE IN EQUITY REVERSED A NO WHEN FIVE MINUTES ELAPSED AND THERE WAS NOT REASONABLE EVIDENCE THAT THE BALL WAS LOST IN THE ANIMAL HOLE THE BALL WAS LOST TENNIS ANYONE SEE RELATED LETTER LETTERS TO THE EDITOR THE SAVVY GOLFER KNOWS HIS MULLIGANS WSJ JULY 13 1993 9306250068 YY93 MM07 9307130116 930628 LETTERS TO THE EDITOR A CLOSER LOOK AT AIDS DENTIST YOUR MAY 7 ARTICLE SIXTH PATIENT OF DENTIST WITH AIDS TESTS POSITIVE MISTAKENLY GIVES AN IMPRESSION THAT DR ACER'S PATIENT GROUP IS SUFFERING FROM AN ABOVENORMAL INCIDENCE OF THE HIV VIRUS THE FREQUENCY OF THE HIV VIRUS IN THE GENERAL US POPULATION HAS BEEN REPEATEDLY MEASURED SINCE 1985 AT A STEADY 04 IF DR ACER HAD 2000 PATIENTS THEN THE CENTERS FOR DISEASE CONTROL AND PREVENTION WOULD EXPECT TO FIND EIGHT OF HIS PATIENTS HIVPOSITIVE THE FACT THAT SIX OF HIS PATIENTS HAVE BEEN FOUND TO BE HIVPOSITIVE DOES NOT SEEM TO BE VERY NEWSWORTHY OR STATISTICALLY SIGNIFICANT THE FACT IS THAT NOBODY KNOWS HOW KIMBERLY BERGALIS BECAME INFECTED WITH HIV CERTAINLY DR ACER'S PATIENTS DO NOT EXHIBIT ANY HIGHER THAN NORMAL INCIDENCE OF HIV IT'S INTERESTING TO NOTE HOW ANXIOUS THE MEDIA AND THE GOVERNMENT ARE TO PROVE THAT MS BERGALIS WAS INFECTED BY HER DENTIST DESPITE THE FACT THAT THERE IS NO PROOF AND NO STATISTICS POINTING IN THAT DIRECTION SEE RELATED LETTER LETTERS TO THE EDITOR THE DENTIST AND AIDS SOME COLD HARD FACTS WSJ JULY 13 1993 9306280077 YY93 MM07 9307130112 930624 LEISURE & ARTS A NEW DO FOR AMY IN THE LINE OF DUTY BY AMY GAMERMAN WHAT I DON'T WANT FOR YOU IS THAT YOUR HAIR OVERPOWERS YOU SAID CRISTOPHE RUNNING HIS FINGERS THROUGH MY CURLS AMERICA'S MOST FAMOUS BARBER HAD BARELY BEGUN TO SNIP AND I FELT FABULOUS ALREADY CRISTOPHE HAS BEEN A LITTLE MEDIASHY SINCE WHAT HE CALLS THE RUNWAY THING THE AIR FORCE ONE SCISSOR SESSION THAT MADE MORE WAVES THAN A PRICEY PERM BUT FIVE WEEKS LATER HE WAS EAGER TO DEMONSTRATE JUST WHAT MAKES A CRISTOPHE CUT WORTH ALL THE FUSS WE MET AT THE TEST SALON OF L'OREAL A CRISTOPHE COLLABORATOR CRISTOPHE A 36YEAROLD BELGIAN WITH A CALIFORNIA TAN AND LONG BLONDTINTED LOCKS SHOOK MY HAND STARING AT ME INTENTLY A LONG MOMENT PASSED I JUST WANT TO LOOK AT THIS HE SAID MOVING ME UNDER THE LIGHT HE TOOK FISTFULS OF MY HAIR AND SCRUNCHED IT THOUGHTFULLY THEN HE SAT ME IN FRONT OF A MIRROR AND WHIPPED OFF MY HEADBAND WHICH NOW SEEMED DESTINED TO JOIN HILLARY'S IN HEADBAND HEAVEN WE CONSULTED I WANTED TO KEEP MY HAIR LONG CRISTOPHE WANTED TO CUT IT SHORT BUT HE WANTED ME TO FEEL FABULOUS SO LONG IT WOULD BE LET'S DO IT HE SAID I PUT ON A LAB COAT AND WE HEADED OVER TO THE SINK WHERE CRISTOPHE HIMSELF WASHED MY HAIR A TREAT EVEN THE PRESIDENT HAS YET TO EXPERIENCE AS HE WORKED IN THE SHAMPOO AND CONDITIONER CRISTOPHE BRIEFLY RECAPPED HIS LIFE IN HAIR AS A 13YEAROLD DROPOUT HE GOT A JOB AS AN APPRENTICE IN AN UPSCALE BRUSSELS SALON HE SNIPPED HIS WAY TO THE TOP EVENTUALLY ESTABLISHING A CHAIN OF SALONS BUT IN 1983 HE LEFT IT ALL BEHIND TO PURSUE THE AMERICAN DREAM AND ALL THAT STUFF HE FOUND IT IN LOS ANGELES ACCORDING TO ITS FOUNDER SALON CRISTOPHE IN BEVERLY HILLS IS A MULTIMILLIONDOLLAR BUSINESS HE'LL OPEN A SECOND SALON IN WASHINGTON DC THIS SUMMER WHICH SHOULD ELIMINATE THE NEED FOR THOSE EMBARRASSING CROSSCOUNTRY WHITE HOUSE CALLS CRISTOPHE TOWELED ME OFF AND LED ME BACK TO MY CHAIR HE BEGAN PLUCKING AT STRANDS OF MY HAIR IT'S REALLY LIKE SCULPTING HE SAID SOMETIMES YOU KNOW THE FACE IS EITHER TOO SHORT TOO LONG TOO WIDE TOO NARROW SO I CREATE AN ILLUSION AROUND THE FACE AND WHAT WAS MY WEAKNESS YOU DON'T HAVE A WEAKNESS CRISTOPHE SAID SMOOTHLY IN THE MANNER THAT NO DOUBT HAS ENDEARED HIM TO SUCH CLIENTS AS ROSEANNE ARNOLD AND DUSTIN HOFFMAN THAT'S MY PROBLEM HIS JOB HE SAID WINDING A HANK OF HAIR IN A TOP KNOT WOULD BE TO EMPHASIZE MY CHEEKBONES AND MY EYES HIS SCISSORS BEGAN TO FLASH HE PAUSED CAN I ASK YOU TO UNCROSS YOUR LEGS HE SAID POLITELY IT GIVES YOU DISTORTION OF THE BODY AS HE WORKED HIS WAY AROUND MY HEAD HE MUSED ON SOME OTHER MORE TROUBLING DISTORTIONS I'M SO UPSET HE SAID ALL THEY ARE TALKING ABOUT IS 8 HAIRCUTS 6 HAIRCUTS AND WE CAN DO AS GOOD' AND ALL THAT STUFF AND IT UPSETS ME BECAUSE IT TAKES AWAY FROM THE CREDIBILITY OF THE CRAFT HE'S PROUD TO CALL HIMSELF A BARBER IT MAKES ME SMILE WHEN THERE ARE PEOPLE CALLING THEMSELVES HAIR DESIGNER' HE SAID GIVE ME A BREAK YOU KNOW FEW BARBERS WEAR GOLD NECKLACES AS THICK AS BICYCLE CHAINS BUT THEN AGAIN WHAT BARBER CHARGES 250 THAT'S THE PRICE FOR A WOMAN'S FIRST CRISTOPHE EXPERIENCE FOLLOWUP CALLS COST A MERE 175 MEN'S CUTS COST 150 AND 125 RESPECTIVELY AND HOUSE CALLS ARE 350 AN HOUR TIMED FROM THE MOMENT CRISTOPHE LEAVES THE SALON AS FOR THE COST OF MR CLINTON'S INFAMOUS DO WELL THAT'S A SECRET BETWEEN THE COMMANDER IN CHIEF AND HIS HAIRDRESSER CRISTOPHE HAS A PERSONALSERVICES CONTRACT WITH THE CLINTONS THE TERMS OF WHICH ARE UNDISCLOSED HIS ASSOCIATION WITH THE FIRST FAMILY DATES TO EVEN WAY BEFORE HE WAS PRESIDENT SPECIFICALLY TO LAST JUNE WHEN CRISTOPHE MET MRS CLINTON AT A LADIESONLY HAIR PARTY THROWN BY ACTRESS MARKIE POST MARKIE CALLED ME UP AND YOU KNOW MARKIE IS GREAT HE BEGAN STILL CLIPPING AWAY AND SHE SAYS CRIS I'M GOING TO HAVE A FEW FRIENDS OF MINE HERE I NEED A HAIRCUT AND MY OTHER FRIENDS NEED A HAIRCUT' I SAID SURE NO PROBLEM AND THAT'S WHERE I MET THE FIRST LADY LATER ON HE GAVE MRS CLINTON A DASHING NEW LOOK FOR THE DEMOCRATIC CONVENTION HE IS NOT RESPONSIBLE FOR HER MOST RECENT JUNE CLEAVERSTYLE DO BY 275APOP FREDERIC FEKKAI SINCE THEN HE'S WORKED ON THE ENTIRE FAMILY PAYING REGULAR CALLS TO THE WHITE HOUSE SALON HE HASN'T DROPPED BY LATELY I JUST WANTED TO TRY TO GIVE SOMETHING BACK TO THEM AND TRY TO HELP THEM WHAT WITH THEIR HAIR BUSINESS HE SAID SADLY BUT IT SEEMS TO ME IF IT'S GOING TO HURT THEM THEN I'M GOING TO STEP OUT AND I WON'T DO IT ANYMORE HE WHIPPED OUT HIS BLOWDRYER AND BEGAN PULLING MY HAIR TAUT WITH A BRUSH IN ORDER TO CUT YOUR HAIR PRECISELY ENOUGH I'M GOING TO DO IT STRAIGHT HE EXPLAINED OVER THE NOISE OF THE DRYER PEERING AT HIM THROUGH THE LIMP SHAG NOW FALLING ACROSS MY EYES I ASKED HIM WHAT HAPPENED TO HIS LAST NAME YOU GOTTA GO WITH SOMETHING THAT PEOPLE ARE GONNA REMEMBER HE SAID MY LAST NAME IS SCHATTEMAN WHAT IS THE PURPOSE YOU KNOW CRISTOPHE SCHATTEMAN CRISTOPHE IS ON BEVERLY DRIVE AND THAT'S THE END OF IT THAT'S ABOUT THE ONLY NAME HE'S WILLING TO DROP THESE DAYS HIS RECENT BRUSH WITH NOTORIETY HAS MADE CRISTOPHE RELUCTANT TO DISCUSS HIS CELEBRITY CLIENTS ALTHOUGH WHEN ASKED ABOUT THE JURASSIC PARK PIN ON HIS JEAN JACKET HE CONFESSED THAT HE WAS THE BLOCKBUSTER'S HEAD HAIR CONSULTANT HAIR NOW COVERED THE FLOOR IT WAS TIME TO TURN ME OVER TO MICHAEL BRIMHALL A COLORIST AT NEW YORK'S COPPOLA SALON FOR SOME COPPERYGOLDEN HIGHLIGHTS AND A WASH OF SEMIPERMANENT CHESTNUT COLOR TO ADD SHINE THE COST 200 BUT WHO WAS COUNTING LET'S SAY IF YOU WERE TO SPEND SIX MONTHS IN THE CARIBBEAN THAT'S THE KIND OF COLOR CRISTOPHE INSTRUCTED MR BRIMHALL SPEAKING LIKE ONE WHO KNOWS HE WATCHED CLOSELY AS MR BRIMHALL PAINTED THIN WHITE STREAKS OF DYE ON MY HAIR THEN COVERED THEM WITH SHEETS OF PLASTIC MY HEAD WAS SOON ENCASED IN SOMETHING LIKE SARAN WRAP A SESSION UNDER THE LAMPS AND SEVERAL RINSINGS LATER I WAS RETURNED TO CRISTOPHE WHO SEEING IMPERFECTION PICKED UP HIS SCISSORS ONCE MORE ALL CHATTING STOPPED AS HE WORKED INTENTLY MY HAIRCUT HAD LONG PASSED THE TWOHOUR MARK FINALLY HE PUT DOWN HIS SCISSORS I'M GONNA BLOW IT DRY NOW NATURAL BUT A LITTLE STRAIGHT CAUSE WE GONNA SAVE SOME TIME HE SAID ROLLING MY HAIR OVER THE BRUSH AND BLASTING IT INTO LOOSE WAVES WITH THE DRYER HE SWEPT THE WAVES FROM THE SIDES OF MY FACE THEN SWIRLED THE FRONT THEN RUBBED IN SOME POMADE THEN GAVE IT A SPRITZ OF HAIR SPRAY AND VOILA I FACED THE MIRROR AND SAW A GLAMOROUS PERSON WHO LOOKED SOMETHING LIKE NANCY DREW IF NANCY WERE A TV ANCHORWOMAN CRISTOPHE FROWNED HE STILL WANTED TO CUT MY HAIR SHORT THINK ABOUT IT HE SAID I'LL BE BACK EXACTLY 450 LATER I WALKED BACK INTO MY OFFICE THE RESULTS WERE GRATIFYING ONE OF MY COWORKERS FAILED TO RECOGNIZE ME OTHERS FLOCKED TO ADMIRE MY SOPHISTICATED NEW STYLE BY THE NEXT MORNING MY HEAD WAS ONCE AGAIN A MOP OF CURLS ALTHOUGH VERY STYLISHLY ARRANGED IT'S THE OLD AMY A COLLEAGUE DECLARED OH WELL AS CRISTOPHE HIMSELF SAYS YOU KNOW WHAT IT'S ONLY HAIR SEE RELATED LETTER LETTERS TO THE EDITOR YOU GOT CLIPPED WSJ JULY 13 1993 9306240079 YY93 MM07 9307130018 930628 LEISURE & ARTS TELEVISION THE CRYBABY ADMINISTRATION BY DOROTHY RABINOWITZ THE PRODUCERS OF THE RECENT PBS FILM THE LIFE OF LADY BIRD JOHNSON DOUBTLESS DIDN'T IMAGINE THAT THEIR GENTLE BIOGRAPHY HAD MUCH SHOCK VALUE IF SO THEY IMAGINED WRONG IN FACT LESS THAN A QUARTER OF THE WAY THROUGH IT BECAME CLEAR AT LEAST TO ANY VIEWER ACCUSTOMED TO THE MANNERS MORES AND PSYCHOLOGICAL DISPOSITION OF OUR CURRENT BRAND OF NATIONAL LEADERS THAT THERE WAS SOMETHING DECIDEDLY STRANGE IN THIS PORTRAIT OF THE FORMER FIRST LADY IT WAS HARD TO TELL AT FIRST WHAT THIS STRANGE THING COULD BE TRUE IT WAS CLEAR THAT MRS JOHNSON COULD NOT BE BULLIED INTO BABBLING WHEN CONFRONTED BY A SILENCE EVERY TELEVISION JOURNALIST AND FILMMAKER KNOWS THAT THE WAY TO GET SUBJECTS TO RATTLE ON UNCONTROLLABLY AND INTIMATELY IS TO LET THEM HANG IN SILENCE WHILE THE CAMERA BORES IN CONFRONTED BY THIS UNENDURABLE VACUUM ONLY THE HARDIEST SUBJECTS CAN RESIST GURGLING ON OR REPEATING WHATEVER IT WAS THEY SAID THREE SECONDS BEFORE OR AT THE VERY LEAST DROPPING THEIR EYES LADY BIRD JOHNSON IT WAS SOON CLEAR COULD FINISH A THOUGHT AND LOOK SERENELY INTO THE CAMERA EYE FOR AS LONG AS THE SILENCE LASTED IT TAKES A CERTAIN CENTER OF GRAVITY TO DO THAT STILL THIS WASN'T THE THING THAT WAS SO STRANGE IN THIS FILM THE STRANGENESS HAD TO DO WITH SOMETHING MISSING WHAT WAS MISSING WAS NAMELY ANY HINT OF TEARFULNESS ACCUSTOMED AS WE ALL ARE NOW TO THE SIGHT ON OUR SCREENS OF TEARS STREAMING DOWN THE PRESIDENTIAL FACE AT THE DROP OF A HAT AS WELL AS DOWN THE FACES OF OTHER PUBLIC SERVANTS AND THEIR RELATIVES THIS COULD ONLY COME AS SOMETHING OF A SHOCK A REFRESHING ONE TO BE SURE YES THIS FILM REMINDED US THERE WAS A TIME WHEN OUR NATIONAL LEADERS DID NOT SPEND THEIR TIME BLUBBERING IN PUBLIC AND IT IS WORTH REMEMBERING THAT THERE WAS A TIME WHEN PRESIDENTS AND OTHER POLITICIANS DID NOT GET THEMSELVES ALL CHOKED UP REGULARLY BY THE VISION OF THEMSELVES AS FOUNTS OF BOTTOMLESS COMPASSION OR BY THE IMPULSE TO SHARE PERSONAL TRIALS AND DARK FAMILY MEMORIES THE THOUGHT THAT THERE WAS SUCH A TIME OF COURSE COULD ALMOST ITSELF PROVOKE TEARS FOR ITS LOSS A VIEWER COULD POSITIVELY WEEP IN FACT TO NOTE THAT NOBODY AT ALL CRIED IN THIS FILM LEAST OF ALL ITS SUBJECT THOUGH HERE WAS MRS JOHNSON TALKING ABOUT HER BELOVED FATHER AND HIS GOODNESS ABOUT HER MOTHER WHO DIED WHEN LADY BIRD WAS FIVE ABOUT HER HUSBAND LYNDON AND ABOUT A TOWN CALLED KARKNACK WHERE SHE WAS BORN WITH THE ADVENT OF THE CLINTON ADMINISTRATION SIX MONTHS' WORTH WE HAVE IT IS FAIR TO SAY SEEN MORE TEARS ROLL DOWN THE PRESIDENTIAL CHEEK THAN HAVE EVER BEEN SHED IN PUBLIC BY ALL THE US PRESIDENTS COMBINED AND WE CAN THROW INTO THIS QUANTITY ALL THE PUBLIC TEARS SHED BY FOREIGN LEADERS MAYBE WE SHOULD BE ASKING WHETHER THERE IS SOMETHING ABOUT THE PRESENCE OF TELEVISION CAMERAS THAT PROVOKES TEARS BUT THAT DOESN'T MAKE MUCH SENSE OTHER PRESIDENTS HAVE FACED THEM AND PRESIDENTIAL CANDIDATES TOO OF THE LATTER EDMUND MUSKIE WILL BE REMEMBERED ABOVE ALL FOR THE TEARS HE SHED CAUGHT BY THE CAMERAS WHILE STANDING ATOP A FLATBED TRUCK IN FRONT OF THE OFFICES OF THE MANCHESTER UNION LEADER THOSE TEARS IN DEFENSE OF HIS WIFE WERE SHED IN THE CAMPAIGN OF 1972 AND THEY COST HIM THE PRIMARY CONSIDER WHAT THE 21 YEARS SINCE HAVE WROUGHT PUBLIC WEEPING BY LEADERS AND WOULDBE LEADERS IS NOW A REGULAR EVENT AND EVIDENTLY COSTFREE AMONG OTHER REASONS THE CULTURE IS NOW DRENCHED IN DONAHUE AND OPRAH AND SIMILAR MAUDLIN DAILY CONFESSIONALS TO SAY NOTHING OF THE BIZARRE CREDO THAT HOLDS THE SHARING OF ONE'S INTIMATE FEELINGS WITH 70 MILLION PEOPLE TO BE A SIGN OF HEALTH THAT'S WHY WHEN THE PRESIDENT FALLS TO CRYING ABOUT THIS AND THAT PEOPLE CAN SIMPLY REGARD IT AS JUST ANOTHER SPECTACLE OF SHARING AVAILABLE ON THEIR TV SCREENS EVEN SO THERE WAS SOMETHING ABOUT THE BRIMMING PRESIDENTIAL EYES DURING THE PRESSCONFERENCE ANNOUNCEMENT OF HIS NEW SUPREME COURT NOMINEE THAT STRUCK A GREAT MANY CITIZENS AS STRANGE WHAT ON EARTH WAS THERE IN RUTH BADER GINSBURG'S PASSING REFERENCE TO HER MOTHER WHO DIED YOUNG AND IN HER COMMENT ABOUT THAT HOPEFUL TIME WHEN DAUGHTERS WILL BE CHERISHED AS MUCH AS SONS TO CAUSE MR CLINTON TO WEEP ONE FACT IS BY NOW CLEAR REFERENCE TO A MOTHER ANYONE'S MOTHER CAN SET THE PRESIDENT OFF TALK ABOUT FAMILY AND DISCRIMINATION RUN A CLOSE SECOND THE ENCOUNTER WITH ABC'S BRIT HUME WAS TELLING IN THIS AND A NUMBER OF OTHER REGARDS THE PRESIDENT'S BITTER RESPONSE TO THE QUESTION ABOUT HIS CAPACITY FOR DECISION MAKING SEEMED AT FIRST PUZZLING HE WANTED TO KNOW HOW MR HUME COULD ASK SUCH A QUESTION WHEN HE HAD JUST HEARD MS GINSBURG'S SPEECH THE REAL QUESTION OR MORE PRECISELY THE CRYOFFURY ACTUALLY BEING HURLED AT THE REPORTER WAS HOW CAN YOU ASK ABOUT FAILURES OF LEADERSHIP WHEN YOU'VE JUST SEEN THIS RICH DISPLAY OF GOOD FEELING DEEP FEELING COMPASSION TEARS FOR VICTIMS OF DISCRIMINATION TEARS FOR MOTHERS FOR DAUGHTERS ETC WHAT MORE COULD ANYONE WANT BROTHER ROGER CLINTON APPEARING ON CBS'S EYE TO EYE WITH CONNIE CHUNG NEVER LOOKED SO MUCH LIKE HIS OLDER BROTHER AS WHEN TEARS COURSED DOWN HIS CHEEKS DURING A DISCUSSION OF FAMILY PRESIDENTIAL MOTHER VIRGINIA KELLEY IS THE ONLY ONE APPARENTLY NOT MUCH GIVEN TO WEEPING IN PUBLIC AND WHY SHOULD SHE WHEN SHE HAS TWO STRAPPING SONS TO DO THE FAMILY CRYING NO INQUIRY INTO THE SUBJECT OF POLITICS AND TEARS WOULD BE COMPLETE WITHOUT NOTING THAT THAT FAMOUSLY TOUGH CLINTON STRATEGIST JAMES CARVILLE WAS ALSO MOVED TO TEARS RECENTLY MR CARVILLE'S EYES GOT TO BRIMMING OVER DURING AN INTERVIEW WITH A WASHINGTON POST REPORTER HE WAS IT SEEMS PROFOUNDLY TOUCHED BY A TV TAPE OF HIMSELF DISCOURSING ON HIS CAMPAIGN VICTORIES AND THE AGE AT WHICH HE WON THEM CAN ANYONE IMAGINE A POLITICAL STRATEGIST 30 YEARS AGO ONE OF THE PEOPLE AROUND LYNDON JOHNSON SAY CARRYING ON IN THIS WAY THIRTY YEARS AGO WHEN A PRESIDENT WAS ASSASSINATED THE BEREAVED FAMILY MEMBERS REFUSED TO WEEP IN PUBLIC IN THE '90S IT TAKES ONLY WATCHING THEMSELVES ON TV AND PONDERING THE WONDER OF THEIR ACCOMPLISHMENTS TO MAKE OUR POLITICAL STARS CRY THIS IS ENOUGH TO MAKE THE REST OF US CRY TOO SEE RELATED LETTER LETTERS TO THE EDITOR THERE'S NOTHING LIKE A GOOD CRY WSJ JULY 13 1993 SEE RELATED LETTER LETTERS TO THE EDITOR REMEMBERING LADY BIRD WSJ JULY 15 1993 9306280059 YY93 MM07 9307120162 930618 WHERE DAD BELONGS BY JAY P LEFKOWITZ IT'S 430 IN THE MORNING AND I CAN'T GO BACK TO BED UNTIL TALIA BURPS FOR THE PAST SEVEN WEEKS THIS NIGHTLY RITUAL OF CHANGING FEEDING AND BURPING MY DAUGHTER HAS BEEN THE TOTALITY OF MY EXPERIENCE AS A FATHER I KNOW THIS WILL SOON CHANGE THAT HOURS OF BEDTIME READING TENNIS LESSONS AND SAT PREPARATION LIE BEYOND THE HORIZON BUT RIGHT NOW EVEN TEETHING SEEMS LIGHT YEARS AWAY EVER SINCE TALIA WAS BORN I HAVE THOUGHT ABOUT WHAT IT MEANS TO BE A FATHER SOME FATHERS ARE PROVIDERS OTHERS PROTECTORS SOME COMPANIONS OTHERS COUNSELORS EACH OF THESE ROLES IS IMPORTANT MANY GOOD FATHERS PLAY ALL OF THEM SUNDAY IS MY OWN FIRST FATHER'S DAY YET I HAVE THE STRANGE FEELING THAT I'VE BECOME A FATHER AT THE WRONG TIME FATHERHOOD SEEMS TO HAVE FALLEN OUT OF FASHION MORE THAN ONETHIRD OF ALL THE CHILDREN IN AMERICA APPROXIMATELY 19 MILLION CURRENTLY LIVE APART FROM THEIR BIOLOGICAL FATHERS MOREOVER IT HAS BECOME POLITICALLY INCORRECT EVEN TO USE THE TERMS MOTHERS AND FATHERS LEST WE INSULT THOSE WHO BELIEVE THAT ANY TWO PEOPLE REGARDLESS OF GENDER CAN BE PARENTS TO A THIRD WHEN I'M WITH TALIA I THINK ABOUT FATHERS I'VE KNOWN IN MY PARENTS' HOME WHERE I LIVED UNTIL SHORTLY AFTER MY 17TH BIRTHDAY MY FATHER PLAYED MANY ROLES HE WAS AT TIMES MY PLAYMATE PLAYING CATCH WITH ME IN THE BACKYARD AT TIMES MY TEACHER EDITING MY HIGHSCHOOL BOOK REPORTS AND COLLEGE PAPERS AND AT TIMES MY CONFIDANT LISTENING TO MY FEARS AND INSECURITIES AS I BEGAN TO DATE ABOVE ALL HE WAS MY MODEL THE FIRST REALIZATION OF MY OWN FATHERHOOD CAME A FEW HOURS AFTER TALIA WAS BORN MY WIFE HAD ALREADY FALLEN ASLEEP WHEN ONE OF THE NURSES IN THE MATERNITY WARD ASKED ME TO ACCOMPANY MY DAUGHTER TO THE INTENSIVECARE UNIT BECAUSE SHE WAS IN RESPIRATORY DISTRESS AS THE NURSES HOOKED MY DAUGHTER UP TO VARIOUS MONITORS AND DREW VIALS OF BLOOD I UNDERSTOOD THAT TALIA HAD BECOME MY RESPONSIBILITY THAT SHE WAS DEPENDENT UPON ME HER FATHER THE EMERGENCY PASSED THE NEXT MORNING MY DAUGHTER WAS RETURNED TO THE NURSERY BUT IN THOSE HOURS I REALIZED THAT EVEN THOUGH I HAD SEEN MY DAUGHTER FOR THE FIRST TIME ONLY A FEW SHORT HOURS EARLIER I ALREADY LOVED HER THE THOUGHT OF LOSING HER WAS TERRIFYING WHAT DOES OUR SOCIETY DO TO WEAKEN THIS CONNECTION DESPITE THE EPIDEMIC OF FATHERLESS FAMILIES AND THE RESEARCH CITING ITS DIRE CONSEQUENCES MORE THAN 70 OF JUVENILES IN STATE REFORM INSTITUTIONS COME FROM FATHERLESS HOMES THE SOCIOLOGY OF DYSFUNCTIONAL FAMILIES HAS FOCUSED ALMOST EXCLUSIVELY ON THE ISSUE OF SINGLE MOTHERS TODAY 37 OF ALL NEW BIRTHS IN AMERICA ARE TO UNWED MOTHERS IN THE BLACK COMMUNITY THE ILLEGITIMACY RATE IS 60 MOST OBSERVERS NOW BELIEVE THAT SINGLE MOTHERHOOD IS A BAD IDEA BUT WHILE IT IS APPROPRIATE TO CHASTISE IRRESPONSIBLE MOTHERS IT IS EQUALLY IF NOT MORE IMPORTANT TO REPROACH IRRESPONSIBLE FATHERS PRESIDENT CLINTON IN FACT HAS FOCUSED SOME ATTENTION ON THE ISSUE DURING THE CAMPAIGN HE PLEDGED THAT MAKING DEADBEAT DADS PAY UP WOULD BE A CORNERSTONE OF HIS WELFARE REFORM IF HE KEEPS HIS PROMISE TO PURSUE FATHERS DELINQUENT ON CHILDSUPPORT PAYMENTS THAT'S ALL TO THE GOOD BUT OUR PROBLEM IS A DEEPER ONE STARTING AT BIRTH IN MORE THAN HALF OF OUTOFWEDLOCK BIRTHS PATERNITY IS NEVER ESTABLISHED IN A WAY GOING AFTER DEADBEAT FATHERS IS LIKE TREATING A METASTASIZED TUMOR BY THE TIME THE FATHER IS A DEADBEAT HIS FAMILY HAS ALREADY BEEN SERIOUSLY DAMAGED THERE IS IN FACT SOME MOVEMENT TOWARD MORE FUNDAMENTAL CHANGE DON EBERLY HEAD OF THE COMMONWEALTH FOUNDATION IN PENNSYLVANIA AND A FORMER AIDE TO JACK KEMP AND DAVID BLANKENHORN A NEW YORK COMMUNITY ORGANIZER WHO NOW HEADS THE INSTITUTE FOR AMERICAN VALUES IN NEW YORK ARE IN THE PROCESS OF FOUNDING A NATIONAL ORGANIZATION OF FATHERS THEY SEEK TO RESTORE TO FATHERHOOD A SENSE OF PRIDE DUTY AND REWARD MESSRS EBERLY AND BLANKENHORN PLAN TO CHALLENGE THE IDEA THAT BECOMING A FATHER INVOLVES NOTHING MORE THAN A SEXUAL ACT AS I THINK ABOUT TALIA'S FUTURE I REALIZE THAT REVITALIZING FATHERHOOD IS A HUGE TASK IT INVOLVES CHANGING OUR CULTURE THERE ARE SOME POLICY INITIATIVES THAT WOULD DO GOOD IN THEIR OWN RIGHT AND WOULD SPECIFICALLY ENCOURAGE MORE RESPONSIBLE FATHERHOOD THESE RECOMMENDATIONS ARE INTENDED TO KEEP MORE FATHERS AT HOME GIVE FATHERS A GREATER STAKE IN PARENTING AND REMOVE THE ECONOMIC DISINCENTIVES TO GETTING MARRIED AND HAVING CHILDREN WE SHOULD REFORM DIVORCE LAW BY MAKING DIVORCE MORE DIFFICULT PERHAPS BY ELIMINATING NOFAULT DIVORCES WHEN A COUPLE HAS YOUNG CHILDREN THIS WOULD ADDRESS THE FACT THAT DIVORCE IS NOT SOLELY A MATTER INVOLVING PARENTS IT OFTEN HAS DISASTROUS CONSEQUENCES FOR YOUNG CHILDREN WE SHOULD SUPPORT LAWS THAT MANDATE SPOUSAL NOTIFICATION PRIOR TO ALL ABORTIONS TODAY LAWS IN MOST STATES CONSIDER FETUSES THE PROPERTY OF PREGNANT WOMEN UNFORTUNATELY THIS POSTURE LEADS TO THE VIEW THAT CHILDREN ARE THE SOLE RESPONSIBILITY OF MOTHERS WE SHOULD ELIMINATE THE MARRIAGE PENALTY IN THE TAX CODE AND INCREASE THE TAX EXEMPTION FOR CHILDREN RAISING CHILDREN IN AMERICA TODAY IS CHALLENGING ENOUGH WITHOUT A TAX CODE THAT MAKES IT EVEN MORE DIFFICULT PRESIDENT CLINTON'S TAX PLAN ONLY MAKES THE SITUATION FOR PARENTS WORSE FATHERS AND MOTHERS ARE THE FOUNDATIONS UPON WHICH HEALTHY FAMILIES ARE BUILT HEALTHY FAMILIES ARE A PREREQUISITE FOR A STABLE AND PRODUCTIVE NATION THERE'S MORE TO SAY OF COURSE BUT I HAVE TO STOP NOW I THINK I HEAR TALIA FUSSING MR LEFKOWITZ FORMERLY DIRECTOR OF CABINET AFFAIRS IN THE BUSH WHITE HOUSE IS CONDUCTING A SURVEY OF AMERICA'S SOCIAL ECONOMIC AND CULTURAL TRENDS FOR THE BRADLEY FOUNDATION SEE RELATED LETTERS LETTERS TO THE EDITOR THERE'S NO EASY WAY TO MAKE DAD BEHAVE WSJ JULY 12 1993 9306180097 YY93 MM07 9307120087 930617 PRICING HEALTH CARE AMERICANS DON'T WANT A HEALTHCARE REVOLUTION BY SHEILA LEATHERMAN AMERICA STILL AWAITS THE FORMAL RELEASE OF THE CLINTON ADMINISTRATION'S HEALTHCARE REFORM PROPOSAL BUT POLL RESULTS SHOW THAT IMMEDIATE AND SIGNIFICANT PROGRESS TOWARD FULFILLING AMERICANS' EXPRESSED WISHES IS POSSIBLE WITHOUT A TOTAL TRANSFORMATION OF THE CURRENT HEALTHCARE SYSTEM OUR CENTER'S RECENT COMPARATIVE ANALYSIS OF 29 PUBLICOPINION SURVEYS ON THE SUBJECT ALL CONDUCTED BY LEADING NATIONAL POLLING ORGANIZATIONS AND TAKEN LARGELY OVER THE PAST 24 MONTHS YIELDS SOME INSTRUCTIVE FINDINGS NINE OUT OF 10 AMERICANS BELIEVE OUR HEALTHCARE SYSTEM IS IN CRISIS TODAY BUT THERE MAY BE LESS HERE THAN MEETS THE EYE WHILE THERE IS VERY LITTLE VARIATION IN THIS LEVEL OF CRISISCONSCIOUSNESS BY AGE SEX INCOME OR EVEN BETWEEN INSURED AND UNINSURED IT HAS INCREASED DRAMATICALLY ACROSS ALL CATEGORIES IN RECENT MONTHS SUGGESTING THAT AMERICANS' PERCEPTIONS OF A CRISIS MAY COME MORE FROM THE TONE AND QUANTITY OF POLITICAL DISCOURSE AND MEDIA COVERAGE THAN FROM WHAT THEY EXPERIENCE FIRSTHAND A STRONG MAJORITY ARE SATISFIED WITH THEIR OWN PERSONAL ACCESS TO QUALITY CARE BUT WORRY ABOUT ACCESS FOR OTHERS SEVEN OUT OF 10 AMERICANS SAY THEY ARE VERY OR SOMEWHAT SATISFIED WITH THEIR OWN PRESENT HEALTH INSURANCE COVERAGE AN ALMOST IDENTICAL SHARE PRONOUNCE THEMSELVES VERY OR GENERALLY SATISFIED WITH THE AVAILABILITY OF HEALTH CARE ALTHOUGH SATISFACTION LEVELS INCREASED WITH INCOME EVEN 61 OF THOSE MAKING UNDER 20000 ANNUALLY VOICED SATISFACTION MORE THAN THREE OUT OF FOUR AMERICANS MAINTAIN A RELATIONSHIP WITH A PERSONAL OR FAMILY DOCTOR 70 OF THOSE WITH INCOMES BELOW 20000 EIGHTYTHREE PERCENT RATE THE QUALITY OF THEIR HEALTH CARE AS EXCELLENT 38 OR GOOD 45 BUT SATISFACTION LEVELS PLUMMET WHEN AMERICANS ARE ASKED HOW THEY FEEL ABOUT THE QUALITY OF CARE DELIVERED NATIONWIDE JUST ONE IN THREE REGISTERED VOTERS EXPRESS SATISFACTION WITH THE QUALITY OF HEALTH CARE IN THE COUNTRY AS A WHOLE HIGH COST IS THE CRUX OF PUBLIC CONCERN FOR 79 COST IS THE BIGGEST PROBLEM IN HEALTH CARE GENERALLY AND AN OVERWHELMING MAJORITY THINK THE COST OF HEALTH CARE IN THIS COUNTRY IS MUCH HIGHER 75 OR SLIGHTLY HIGHER 18 THAN IT SHOULD BE WHEN ASKED TO RELATE COST TO THEIR PERSONAL SITUATION THE CRITIQUE IS LESS HARSH 64 SAY THEY ARE NOT SATISFIED WITH THE COST OF THE HEALTH CARE THEY RECEIVE AND 54 AGREE AS A JUNE 1992 POLL PUT IT THAT COST IS THE BIGGEST CONCERN FOR YOUR PERSONAL HEALTH CARE AND THAT OF YOUR FAMILY THERE IS AN OVERWHELMING DEMAND FOR CHANGE BUT LITTLE CONSENSUS ON WHAT FORM IT SHOULD TAKE NINETYFOUR PERCENT SAY THE SYSTEM NEEDS EITHER FUNDAMENTAL CHANGES OR TO BE COMPLETELY REBUILT THERE IS LONGSTANDING AND NEARUNIVERSAL SUPPORT FOR EQUAL ACCESS TO HEALTH CARE REGARDLESS OF ABILITY TO PAY IN FACT WHEN ASKED TO CHOOSE BETWEEN UNIVERSAL ACCESS AND LOWERING COST AS POTENTIALLY CONFLICTING POLICY PRIORITIES TWO OUT OF THREE AMERICANS WOULD SELECT THE FORMER BUT THE STRONG CONSENSUS ON VALUES DOES NOT EXTEND TO WHAT TO DO OR HOW TO PAY FOR IT FOR ONE THING THERE IS NO CLEAR AGREEMENT AS TO CAUSALITY HEALTH INSURERS DOCTORS HOSPITALS AND LAWYERS EACH ARE HELD MOST TO BLAME BY BETWEEN 8 AND 25 OF RESPONDENTS THERE IS PERVASIVE DISAGREEMENT OVER HOW TO PAY FOR REFORM 63 THINK THE FEDERAL GOVERNMENT SHOULD PROVIDE HEALTH CARE TO ALL AMERICANS BUT 52 WOULD BE AGAINST FEDERAL HEALTH INSURANCE IF IT MEANS HIGHER TAXES IN ONE POLL A STRONG 60 THINK GOVERNMENT RATHER THAN THE PRIVATE SECTOR SHOULD HAVE THE PRIMARY ROLE IN PROVIDING HEALTH INSURANCE AND CONTROLLING HEALTH COSTS BUT 51 IN ANOTHER WOULD HAVE MORE CONFIDENCE ENTRUSTING MANAGEMENT OF THE AMERICAN HEALTH CARE SYSTEM TO THE INSURANCE INDUSTRY THAN TO THE FEDERAL GOVERNMENT AND AMERICANS SPLIT IN NEAREQUAL THIRDS WHEN ASKED TO CHOOSE AMONG VERY DIFFERENT POLICY APPROACHES TO HEALTHCARE REFORM MANDATED WORKER COVERAGE THROUGH EMPLOYERS WITH GOVERNMENT COVERAGE OF THE UNINSURED 28 TAX AND OTHER INCENTIVES TO STEER LOW AND MODERATEINCOME CONSUMERS INTO MANAGEDCARE PLANS 33 AND A TAXPAYERFINANCED SINGLE GOVERNMENT PLAN 32 IT WOULD BE EASY FOR THOSE OF US IN THE ARENA OF MANAGED CARE TO SOUND THE CRY FOR A WHOLESALE RESTRUCTURING OF OUR SYSTEM AS THE RESULTING TURMOIL WOULD LIKELY DRIVE MILLIONS MORE AMERICANS INTO MANAGEDCARE SYSTEMS BUT BASED UPON THE PUBLIC'S OWN PERCEPTION OF WHAT'S WRONG WHAT NEEDS TO BE ACCOMPLISHED BY REFORM AND AT WHAT PRICE A HEALTHCARE REVOLUTION COSTING HUNDREDS OF BILLIONS OF DOLLARS MAY NOT HAVE TO BE THE ANSWER AMERICANS INDICATE THAT THEY ARE SATISFIED WITH MUCH ABOUT THEIR OWN INDIVIDUAL HEALTH CARE BUT ARE MOTIVATED TO SUPPORT REFORM BASED ON WORRY ABOUT THE OTHER GUY OR FEAR OF SOMEDAY BECOMING THE OTHER GUY THEREFORE WE MUST CONCENTRATE ON CORRECTING THE DEFICIENCIES OR VULNERABILITIES OF OUR HEALTHCARE SYSTEM WITHOUT JEOPARDIZING THE CHARACTERISTICS THAT ARE WORKING WELL THE RECENT FORAY INTO NATIONAL CHILDHOOD IMMUNIZATION PROVIDES AN OBJECT LESSON IN THE DANGERS OF MISDIAGNOSING THE PROBLEM AND MISAPPLYING THE CURE JUST WEEKS AGO PREPARATIONS WERE UNDER WAY TO SPEND MORE THAN 1 BILLION PURCHASING ENOUGH VACCINE TO IMMUNIZE ALL AMERICAN CHILDREN UNDER THE AGE OF TWO CIRCUMVENTING WORKING PRIVATE SUPPLY CHANNELS IN THE PROCESS ON THE UNTESTED ASSUMPTION THAT THE PROBLEM WAS A VACCINE SHORTAGE IN FACT THE TRUE PROBLEM REMAINS ONE OF CONVINCING PARENTS OF THE IMPORTANCE OF IMMUNIZATIONS AND GETTING CHILDREN TO VACCINATION SITES THE SAME SORT OF ERROR ON A FAR GREATER SCALE COULD OCCUR DURING THE PENDING DEBATE IF WE LOSE SIGHT OF WHAT THE PUBLIC WANTS MOST PREDICTABLE ACCESS TO ESSENTIAL HEALTH CARE AT AN AFFORDABLE COST MEANINGFUL CHANGE TOWARD THIS END CAN AND SHOULD BE STRAIGHTFORWARD INSURANCE REFORM THAT ELIMINATES EXCLUSIONARY UNDERWRITING STANDARDIZED BENEFIT PACKAGES THAT FACILITATE ACCESS TO PREVENTIVE AND NECESSARY MEDICAL CARE EFFECTIVE COSTREDUCTION INCENTIVES FOR PROVIDERS AND CONSUMERS ALIKE AND MALPRACTICE REFORM LET US NOT MAKE THE TASK SO COMPLEX AND COSTLY THAT IT BECOMES INSURMOUNTABLE MS LEATHERMAN IS PRESIDENT OF THE CENTER FOR HEALTH CARE POLICY AND EVALUATION AFFILIATED WITH MINNEAPOLISBASED UNITED HEALTHCARE CORP SEE RELATED LETTER LETTERS TO THE EDITOR ONE FOR ALL AND ALL FOR ONE WSJ JULY 12 1993 9306170035 YY93 MM07 9307120078 930617 GINSBURG'S TROUBLING CONSTITUTION BY ROGER PILON THE EARLY LINE ON PRESIDENT CLINTON'S NOMINATION OF JUDGE RUTH BADER GINSBURG FOR THE SUPREME COURT IS FOCUSING ON HER MARCH 8 MADISON LECTURE AT THE NEW YORK UNIVERSITY SCHOOL OF LAW AND UNDERSTANDABLY SO IT IS A GENERAL STATEMENT OF HER VIEWS ON THE ABORTION ISSUE WHICH HAS DOMINATED THE PAST FEW CONFIRMATION BATTLES AND IT TOUCHES ON DEEPER ISSUES OF JUDICIAL PHILOSOPHY JUDGE GINSBURG'S SUPPORTERS HAVE ALREADY USED THIS SPEECH TO CONFER ON THE NOMINEE THE CHERISHED MODERATE LABEL IS IT DESERVED IN TRUTH JUDGE GINSBURG'S CRITIQUE OF ROE V WADE IS TROUBLING NOT BECAUSE IT IS NOT IN THE MAINSTREAM OF MODERN CONSTITUTIONAL THOUGHT IT IS BUT BECAUSE ITS EXTRAORDINARY RELIANCE ON MODERN EQUALPROTECTION JURISPRUDENCE PLACES IT SQUARELY AT ODDS WITH THE THINKING OF THOSE WHO WROTE AND RATIFIED THE CONSTITUTION BY VIRTUE OF HER MODERN APPROACH THEREFORE JUDGE GINSBURG IS LIKELY TO SAIL RIGHT THROUGH THE CONFIRMATION PROCESS WITHOUT ANYTHING LIKE THE SCRUTINY SHE DESERVES AND WE WILL ALL BE THE POORER FOR IT MORE THAN ONCE JUDGE GINSBURG HAS MADE PLAIN HER VIEW THAT A WOMAN HAS A RIGHT TO AN ABORTION EVEN IF THE JUDGE HAS NOT MADE PLAIN PRECISELY WHERE THAT RIGHT IS TO BE FOUND IN THE CONSTITUTION BUT HER MADISON LECTURE IS MORE A CRITIQUE OF THE COURT'S REASONING THAN OF ITS RESULT THUS IT CAN BE CRITICIZED ON ITS OWN TERMS WITHOUT REACHING THE ABORTION ISSUE ITSELF JUDGE GINSBURG BEGINS HER CRITIQUE BY ASSOCIATING HERSELF WITH JUSTICE OLIVER WENDELL HOLMES'S ADMONITION STRAIGHT OUT OF THE PROGRESSIVE ERA THAT JUDGES PLAY AN INTERDEPENDENT PART IN OUR DEMOCRACY PARTICIPATING IN A DIALOGUE WITH OTHER ORGANS OF GOVERNMENT AND WITH THE PEOPLE AS WELL THUS DISSOCIATING HERSELF IN THIS MADISON LECTURE FROM THE MADISONIAN VIEW THAT JUDGES ARE TO STAND AS INDEPENDENT TRIBUNALS OF JUSTICE AS AN IMPENETRABLE BULWARK AGAINST EVERY ASSUMPTION OF POWER IN THE LEGISLATIVE OR EXECUTIVE JUDGE GINSBURG REFLECTS INSTEAD MR CLINTON'S VIEW THAT WE'RE ALL IN THIS TOGETHER AT THE LEAST THE IMAGE IS CLOSER TO GOOD GOVERNMENT THAN TO THE SEPARATION OF POWERS CONTINUING IN THIS HOLMESIAN VEIN SHE SAYS THAT JUDGES DO AND MUST LEGISLATE ALTHOUGH SHE CAUTIONS AGAIN FOLLOWING HOLMES THAT THEY CAN DO SO ONLY INTERSTITIALLY THUS SHE ESTABLISHES HERSELF AS A JUDICIAL ACTIVIST ALTHOUGH ONE LIMITED TO INTERSTITIAL ACTIVISM SHE IS NOW NICELY POSITIONED TO CRITICIZE THE COURT'S BREATHTAKING DECISION IN ROE WHICH SHE CONTRASTS WITH ITS MORE CAUTIOUS DISPOSITIONS INVOLVING EXPLICITLY SEXBASED CLASSIFICATIONS JUDGE GINSBURG IS CONCERNED THAT DOCTRINAL SHIFTS TOO SWIFTLY SHAPED MAY PROVE UNSTABLE INDEED THE ROE DECISION DISPLACED VIRTUALLY EVERY STATE LAW THEN IN PLACE GENERATING A WELLORGANIZED AND VOCAL RIGHTTOLIFE MOVEMENT THAT RALLIED AND SUCCEEDED FOR A CONSIDERABLE TIME IN TURNING THE LEGISLATIVE TIDE IN THE OPPOSITE DIRECTION A MORE MEASURED DECISION SHE BELIEVES ONE NOT BLANKETING THE SUBJECT BUT SIMPLY OVERTURNING THE TEXAS STATUTE THAT HAD CRIMINALIZED ALL BUT LIFESAVING ABORTIONS MIGHT HAVE SPARED THE NATION ITS 20YEAR CONTROVERSY MODERATE AS THAT REASONING MAY SOUND IT IS DRIVEN BY AN ALL BUT UNCRITICAL APPLICATION OF THE EQUALPROTECTION CLAUSE OF THE 14TH AMENDMENT AND THE EQUALPROTECTION GUARANTEE IMPLICIT IN THE FIFTH AMENDMENT'S DUEPROCESS CLAUSE THE JURISPRUDENTIAL ANALOGUE OF AN EGALITARIANISM THAT HAS DOMINATED THE POLITICS OF THE 20TH CENTURY THUS JUDGE GINSBURG ARGUES THAT THE ROE DECISION MIGHT HAVE BEEN LESS A STORM CENTER HAD IT BOTH HOMED IN MORE PRECISELY ON THE WOMEN'S EQUALITY DIMENSION OF THE ISSUE AND CORRESPONDINGLY ATTEMPTED NOTHING MORE BOLD AT THAT TIME THAN THE MODE OF DECISIONMAKING THE COURT EMPLOYED IN THE 1970S GENDERCLASSIFICATION CASES BY WAY OF EXAMPLE JUDGE GINSBURG TURNS TO A CASE LATER DECLARED MOOT THAT WAS ON THE COURT'S CALENDAR THE VERY TERM ROE WAS DECIDED A CASE THAT COULD HAVE SERVED AS A BRIDGE LINKING REPRODUCTIVE CHOICE TO DISADVANTAGEOUS TREATMENT OF WOMEN ON THE BASIS OF THEIR SEX THE CASE INVOLVED AN AIR FORCE CAPTAIN WHO HAD BROUGHT SUIT WHEN THE SERVICE DISCHARGED HER AFTER SHE BECAME PREGNANT WHILE STATIONED IN VIETNAM POINTING TO THE EQUALPROTECTION GUARANTEE IMPLICIT IN THE FIFTH AMENDMENT THE PLAINTIFF ARGUED THAT THE AIR FORCE RULE DIFFERENTIATED INVIDIOUSLY BY ALLOWING MALES WHO BECAME FATHERS BUT NOT FEMALES WHO BECAME MOTHERS TO REMAIN IN SERVICE JUDGE GINSBURG SUGGESTS THAT HAD THE COURT HEARD THE CASE WITH A FEMALE PRESENCE IN ITS RANKS IT MIGHT HAVE COMPREHENDED AN ARGUMENT OR AT LEAST GLIMPSED A REALITY IT LATER RESISTED THAT DISADVANTAGEOUS TREATMENT OF A WOMAN BECAUSE OF HER PREGNANCY AND REPRODUCTIVE CHOICE IS A PARADIGM CASE OF DISCRIMINATION BECAUSE OF SEX THE ARGUMENT OR REALITY THAT JUDGE GINSBURG HERE ADVANCES IS OF COURSE A CLASSIC NON SEQUITUR DISADVANTAGEOUS TREATMENT OF A WOMAN BECAUSE OF HER PREGNANCY IS TREATMENT BASED AS THE PROPOSITION STATES ON HER PREGNANCY NOT HER SEX OTHERWISE EVERY WOMAN WOULD BE SO TREATED WHICH NOT EVEN JUDGE GINSBURG ASSERTS IT IS TRUE OF COURSE THAT ONLY WOMEN BECOME PREGNANT BUT FROM THAT FACT IT NO MORE FOLLOWS THAT PREGNANCY DISCRIMINATION IS SEX DISCRIMINATION THAN THAT PUNISHMENT FOR HAVING COMMITTED A CRIME IS PUNISHMENT FOR BEING A PERSON IT BEING A FACT ALSO THAT ONLY PEOPLE COMMIT CRIMES IRONICALLY JUDGE GINSBURG'S CONTENTION WOULD COMPEL HER TO THE CONCLUSION THAT PREVENTING A WOMAN FROM HAVING AN ABORTION IN THE NINTH MONTH OF PREGNANCY AMOUNTS TO PROHIBITED SEX DISCRIMINATION NOT EVEN ROE REACHED THAT RESULT IN ATTEMPTING TO RECAST THE ABORTION DEBATE AS A DISCRIMINATION DEBATE JUDGE GINSBURG HAS MADE A MOVE BY NOW ALL TOO FAMILIAR IN AMERICAN LEGAL THOUGHT INDEED AS WE NEAR CENTURY'S END WE ARE FAIRLY AWASH IN THE KIND OF EQUALPROTECTION JURISPRUDENCE ON WHICH SHE HAS MADE HER CAREER SUCH JURISPRUDENCE EXACERBATES THE CLASS TENSIONS THAT ARE JUST BELOW THE SURFACE IN ANY SOCIETY AND DISTRACTS US FROM THE SUBSTANTIVE MORAL AND LEGAL ANALYSIS THAT IS ESSENTIAL TO SERIOUS LEGAL THOUGHT TO TAKE THE ISSUE AT HAND THE ABORTION QUESTION TURNS NOT ON WHETHER ANY PROHIBITION OF ABORTION AMOUNTS TO GENDERBASED DISCRIMINATION AS JUDGE GINSBURG WOULD HAVE IT BUT ON THE QUESTION OF WHETHER A FETUS IS TO BE COUNTED A PERSON AND MORE PRECISELY A PERSON WITH RIGHTS JUDGE GINSBURG'S DISCRIMINATION INQUIRY MAY BE AN INTERESTING SIDEBAR BUT IT IS NOT THE HEART OF THE MATTER WHY THEN HAVE WE BEEN SO DISTRACTED INTO THIS EQUALPROTECTION CHANNEL PART OF THE REASON IS HISTORICAL THE LEGACY OF BOTH JIM CROW AND OFFICIAL DISCRIMINATION AGAINST WOMEN HAS DIRECTED OUR ATTENTION TO ISSUES OF EQUALITY BUT EQUALITY ALONE WILL NOT ADDRESS SUCH PROBLEMS EQUALITY OF WHAT INDEED AS MORE THOUGHTFUL ANALYSTS HAVE LONG KNOWN EQUALPROTECTION ANALYSIS ALONE IS VACUOUS IT CAN JUSTIFY ANYTHING AND NOTHING WHAT IS NEEDED IS A RETURN TO THE KIND OF FIRST PRINCIPLES SUBSTANTIVE PRINCIPLES THAT CHARACTERIZED OUR FOUNDING DEBATES LIFE LIBERTY PROPERTY AND CONTRACT WERE THE BEDROCK OF THOSE PRINCIPLES YET OVER THE PAST 200 YEARS WE HAVE LOST SIGHT OF MUCH OF THAT PREFERRING INSTEAD TO PUT OUR FAITH IN PUBLIC PROGRAMS RATHER THAN PRIVATE EFFORTS NOWHERE MORE SO THAN DURING THE PROGRESSIVE ERA FROM WHICH SO MUCH OF THIS EQUALPROTECTION JURISPRUDENCE STEMS THE RESULT HAS BEEN EVEREXPANDING GOVERNMENT WHICH IS PRECISELY WHAT A CONSTITUTION IS MEANT TO PREVENT YET OUR CONSTITUTION TODAY CANNOT DO THAT BECAUSE WE HAVE STRIPPED IT OF ITS ESSENTIAL SUBSTANTIVE FORCE ESPECIALLY IN THE CASE OF ECONOMIC LIBERTY SUBSTITUTING SUCH CONTORTIONS AS MODERN EQUALPROTECTION JURISPRUDENCE THAT IS THE LEGACY THAT JUDGE GINSBURG AND THE SENATE CONFIRMATION COMMITTEE MUST NOW CONFRONT MR PILON DIRECTS THE CATO INSTITUTE'S CENTER FOR CONSTITUTIONAL STUDIES SEE RELATED LETTER LETTERS TO THE EDITOR WHO'S DESTINY IS IT ANYWAY WSJ JULY 12 1993 9306170073 YY93 MM07 9307120072 930621 SEX PREP NOT SEX ED BY EV KONTOROVICH A RECENT STUDY BY THE RUTGERS CENTER FOR POLICY ANALYSIS AND THE EAGLETON INSTITUTE REVEALS THAT 87 OF NEW JERSEY ADULTS FAVOR SOME SORT OF SEX EDUCATION IN THE STATE'S PUBLIC SCHOOLS THE AUTHORS OF THE REPORT USE THIS STATISTIC TO CALL FOR EARLIER AND MORE NITTYGRITTY SEX EDUCATION PARENTS HOWEVER MAY BE DISMAYED TO LEARN HOW FAR THE FAMILY LIFE PROGRAMS MANDATED BY THE STATE HAVE DRIFTED FROM SEX EDUCATION TOWARD SEX PREPARATION WITNESS THE CLASSES I SAT THROUGH THIS WINTER AS A SENIOR AT WEST WINDSORPLAINSBORO HIGH SCHOOL ACCORDING TO CHRISTINE THOMSON A GYM TEACHER WHO HAS TAUGHT THE SCHOOL'S REQUIRED HEALTH CLASS FOR THE PAST THREE YEARS A HANDSON APPROACH INCREASES ATTENTION LEVELS SHE ASSIGNS GROUPS OF STUDENTS TO STUDY VARIOUS CONTRACEPTIVE TECHNOLOGIES FROM THE FEMALE CONDOM TO THE VASECTOMY I TEACH THE ONES ON THE MARKET AND THE UPANDCOMING METHODS SHE SAYS THIS MIGHT SEEM LIKE A DELICATE SUBJECT FOR A FAMILY NEWSPAPER BUT SINCE IT IS THE KIND OF THING BEING TAUGHT IN AMERICAN HIGH SCHOOLS IT MERITS DESCRIPTION STUDENTS SPEND A FEW DAYS READING INFORMATIONAL PAMPHLETS WHOSE TONE IS EITHER PAINFULLY CUTESY OR MEDICALLY DRY AND OPAQUE WHEN THE STUDENTS HAVE LEARNED THE ADVANTAGES OF EACH METHOD AS WELL AS ITS COST AND WHERE TO BUY IT THEY ARE READY TO ROLL UP THEIR SLEEVES THOSE WHO HAVE RESEARCHED THE CONDOM DEMONSTRATE ITS PROPER USE TO THE CLASS BY PUTTING ONE ON A CLEAR LIFESIZE MODEL OF A PENIS THAT THE LOCAL PLANNED PARENTHOOD CIRCULATES AMONG SCHOOLS FOR SUCH PURPOSES OTHERS SHOW HOW TO INSERT THE FEMININE SPONGE IN A MODEL CERVIX THE GROUP EXPLAINING BIRTHCONTROL PILLS SIMPLY HAS TO HOLD UP THE MONTHLY PACKET AND SAY THEY ARE TAKEN ORALLY MAKING IT THE MOST POPULAR METHOD TO DEMONSTRATE GIRLS ALMOST NEVER VOLUNTEER TO PUT THE CONDOM ON THE MODEL WHILE BOYS ARE EAGER TO DEMONSTRATE ITS PROPER APPLICATION THEY SHY AWAY FROM WETTING THE SPONGE AND INSERTING IT WHEN ON THE DAY OF THE DEMONSTRATIONS THE TEACHER GIVES THE STUDENTS 15 MINUTES AT THE BEGINNING OF CLASS TO FAMILIARIZE THEMSELVES WITH THE MODELS THE BOYS WAIVE THE REHEARSAL WITH THE AIR OF THOSE WHO HAVE HAD PLENTY OF PRACTICE OUTSIDE THE CLASSROOM ONE GIRL ASKS WHAT THE MODEL PENIS IS MADE OF IT'S PLEXIGLAS A STUDENT WHO VOLUNTEERS TO ACTUALLY PUT THE CONDOM ON MAKES A SMALL SHOW HE HOLDS THE PHALLUS BY ITS BASE AND ROLLS THE CONDOM DOWN AS THE CLASS GIGGLES EVERYBODY SEEMS INTERESTED MRS THOMSON SAYS I CAN'T GET THE CLASS THIS INTERESTED WHEN I'M TEACHING THERE WAS ONLY ONE SNAG IN THIS YEAR'S DEMONSTRATIONS AT WEST WINDSORPLAINSBORO THE FIRST CONDOM USED WAS LUBRICATED AND THE JELLY WAS RUBBING OFF ON STUDENTS' HANDS LEAVING THEM FOULSMELLING AND STICKY THEY COMPLAINED AND HALFWAY THROUGH THE DAY A DRY ONE WAS SUBSTITUTED THE USEFULNESS OF CONDOM DRILLS SHOULD BE MEASURED AGAINST THE DIFFICULTY OF THE SKILL BEING TAUGHT IT'S NOT TOUGH SAYS SENIOR DOMINIC RIZZONI WHO PUT A CONDOM ON A PHALLUS IN CLASS THIS JANUARY INDEED THE INSTRUCTIONS FOR CONDOMS AND OTHER DEVICES ARE PRINTED ON THE BACK IN SUCH DETAIL THAT SOME STEPS TAKE CONDOM OFF AFTER USE WERE EVEN SKIPPED IN CLASS THE EASE OF THE WHOLE PROCESS SUGGESTS WHAT COMMON SENSE MIGHT TELL YOU THAT TEENAGERS CONTINUE TO GET PREGNANT BECAUSE THEY CHOOSE NOT TO WEAR CONDOMS A DECISION THEY MAKE FOR REASONS MORE PROFOUND THAN LACK OF MANUAL DEXTERITY AMID ALL THIS HANDSON INSTRUCTION OF COURSE ABSTINENCE WHICH REQUIRES NEITHER A GADGET NOR TRAINING GETS SHORT SHRIFT IT IS MENTIONED ONCE IN A VIDEO BUT IS NOT ASSIGNED FURTHER DISCUSSION OR STUDY MY SEXED EXPERIENCE IS FAR FROM ATYPICAL ACCORDING TO THE EAGLETON SURVEY VIRTUALLY ALL HIGHSCHOOL HEALTH TEACHERS AND MORE THAN HALF OF MIDDLESCHOOL HEALTH TEACHERS INSTRUCT STUDENTS IN CONTRACEPTIVE METHODS CONDOM DRILLS ARE CONDUCTED IN 21 OF NEW JERSEY'S FAMILYLIFE PROGRAMS TO JUDGE BY SEVERAL NEWSPAPER REPORTS STUDENTS ACROSS THE COUNTRY ARE BEING EXPOSED TO CONTRACEPTION KITS WITH MOCK PHALLUSES AND CERVIXES SOME AS EARLY AS THE NINTH GRADE OBVIOUSLY THIS IS AN EXTREMELY MECHANISTIC AND LIMITED VIEW OF SEX IN MY SCHOOL THERE IS LITTLE DIFFERENCE IN TONE BETWEEN OUR SEX EDUCATION CLASSES AND THE DEFENSIVE DRIVING COURSES WE TOOK IN THE 10TH GRADE BOTH ARE SEEN AS NATURAL EVEN UBIQUITOUS ACTIVITIES THAT CAN BE MADE SAFE WITH A FEW POINTERS BUT FOCUSING ON THE PHYSICAL DETAILS OF SEX IS VALUELADEN IN ITSELF AND MISLEADS STUDENTS IT STRIPS AWAY THE ETHICS THAT INFORM HUMAN SEXUALITY SCHOOLS SHOULD NOT PREACH VALUES BUT THERE IS A DIFFERENCE BETWEEN THAT AND POINTING OUT THAT THEY EXIST AND ARE INSEPARABLE FROM SOME ASPECTS OF LIFE PROPONENTS OF GRAPHIC SEXUAL EDUCATION ARGUE THAT EMPHASIZING ABSTINENCE AND OTHER VALUES IS MOOT KIDS WILL BE DOING IT ANYWAY THIS IS A DUBIOUS AND SELFCONFIRMING HYPOTHESIS AND IT CASTS DOUBT ON THE NOBLE GOALS OF EDUCATION GRATIFYING SEXUAL DESIRES IS PERFECTLY NATURAL BUT SO IS ILLITERACY SCHOOLS HAVE NOT YET GIVEN UP ON TEACHING CHILDREN TO READ PERHAPS THEY SHOULD NOT DESPAIR EXPLAINING THAT THERE IS MORE TO SEX THAN KNOWING HOW TO PUT ON A CONDOM MR KONTOROVICH WILL BE A FRESHMAN AT THE UNIVERSITY OF CHICAGO THIS FALL SEE RELATED LETTERS LETTERS TO THE EDITOR SEX IT'S OK ONCE YOU GET USED TO IT WSJ JULY 12 1993 9306210109 YY93 MM07 9307090125 930607 ENTERPRISE GENERAL ATOMICS READY FOR NUCLEAR POWER RESURGENCE ENTREPRENEURS IN OUTOFFAVOR INDUSTRY TOUT ANOTHER BREED OF REACTOR BY JOHN R EMSHWILLER STAFF REPORTER OF THE WALL STREET JOURNAL SAN DIEGO AS UNDERGRADUATES AT YALE IN THE 1950S THE BLUE BROTHERS NEAL AND LINDEN HAD A CRAZY IDEA TO FLY A SMALL PLANE AROUND SOUTH AMERICA BESIDES HAVING NO MONEY AND NO PLANE THEY DIDN'T KNOW HOW TO FLY BUT THEY LEARNED TO FLY AND CONVINCED AN AIRCRAFT MAKER TO DONATE A PLANE THEY LINED UP A FEW THOUSAND DOLLARS IN ADVANCES FROM MAGAZINES THAT WANTED THEIR STORIES AND PHOTOS THEIR 25000MILE 110DAY JOURNEY EARNED THEM A 1957 COVER STORY IN LIFE MAGAZINE TODAY THE BLUES ARE ON AN ENTREPRENEURIAL ODYSSEY THAT IN SOME WAYS MAKES FLYING OVER THE ANDES IN A SINGLEENGINE PLANE LOOK LIKE A STROLL IN THE PARK AS THE OWNERS OF GENERAL ATOMICS HERE THEY ARE TRYING TO SELL NUCLEAR REACTORS WHILE THE TYPICAL ENTREPRENEUR TRIES TO GET INTO A HOT EMERGING AREA SUCH AS BIOTECHNOLOGY THE BLUES ARE SEEKING THEIR FORTUNE IN AN OLD AND OUTOFFAVOR BUSINESS INDEED IT WOULD BE HARD TO FIND AN INDUSTRY MORE OUT OF FAVOR THAN NUCLEAR POWER BECAUSE OF PUBLICSAFETY CONCERNS AND CONSTRUCTION AND OPERATING PROBLEMS AT NUCLEARPOWER PLANTS THIS COUNTRY HASN'T SEEN A NEWREACTOR ORDER FOR NEARLY 20 YEARS EVEN IF DEMAND PICKS UP GENERAL ATOMICS IS COMPETING AGAINST SUCH NUCLEAR GIANTS AS GENERAL ELECTRIC CO AND WESTINGHOUSE ELECTRIC CORP NONE OF THIS FAZES THE BLUES THEY ARGUE THAT GROWING ELECTRICPOWER NEEDS AND THE POLLUTION CAUSED BY FOSSIL FUELS WILL LEAD THE WORLD BACK TO THE ATOM GENERAL ATOMICS PLANS TO BE READY WITH A REACTOR DESIGN THAT EVEN DRAWS GRUDGING PRAISE FROM NUCLEAR CRITICS AS FOR TAKING ON THE NUCLEAR GIANTS THERE WILL ALWAYS BE ROOM FOR THE LITTLE FELLOW IF HE IS RESILIENT AND CREATIVE INSISTS NEAL BLUE GENERAL ATOMICS CHAIRMAN THE BLUES WERE SUCCESSFUL REALESTATE AND ENERGY ENTREPRENEURS IN THE DENVER AREA WHEN THEY PURCHASED GENERAL ATOMICS IN 1986 FROM CHEVRON CORP FOR ABOUT 50 MILLION THEY SINCE HAVE WON TENS OF MILLIONS OF DOLLARS IN FEDERAL CONTRACTS FOR REACTORDEVELOPMENT WORK TO HELP PAY THE BILLS THEY HAVE PUSHED GENERAL ATOMICS INTO NONNUCLEAR AREAS FROM DESIGNING PILOTLESS AIRCRAFT FOR RECONNAISSANCE TO REFURBISHING STREETCARS IN BERLIN THE COMPANY NO LONGER DISCLOSES FINANCIAL DATA BUT AT THE TIME OF THE PURCHASE FROM CHEVRON IT HAD ANNUAL REVENUE OF ABOUT 150 MILLION THE BLUES ARE SCOURING THE GLOBE FOR THEIR FIRST REACTOR ORDER THEY ARE BETTING THEIR NUCLEAR FUTURE ON A REACTOR COOLED BY A PROCESS USING GAS RATHER THAN THE WATERCOOLED PLANTS FAVORED BY THEIR LARGER RIVALS BOTH TYPES HAVE BEEN USED INTERNATIONALLY FOR DECADES WATERCOOLED REACTORS HAVE BEEN MORE POPULAR BECAUSE THEY PRODUCE ELECTRICITY MORE CHEAPLY PARTLY BECAUSE THEY ARE LESS EXPENSIVE TO BUILD BUT GASCOOLED REACTORS HAVE A BIG ADVANTAGE THAT COULD WIN THEM CONVERTS IF YOUR GOAL IS TO HAVE A SIGNIFICANT IMPROVEMENT IN THE SAFETY OF NUCLEAR PLANTS THE GENERAL ATOMICS DESIGN HAS THE MOST PROMISE OF ACHIEVING THAT SAYS ROBERT POLLARD NUCLEARSAFETY ENGINEER AT THE UNION OF CONCERNED SCIENTISTS AN ENVIRONMENTALIST GROUP NONETHELESS MR POLLARD OPPOSES BUILDING MORE NUCLEAR PLANTS BECAUSE OF UNRESOLVED PROBLEMS SUCH AS DISPOSAL OF RADIOACTIVE WASTE GENERAL ATOMICS IS THE ONLY US COMPANY WORKING ON GASCOOLED REACTORS ALTHOUGH ORGANIZATIONS IN OTHER COUNTRIES PARTICULARLY JAPAN ARE DOING RESEARCH THE AMERICAN COMPANY IS TRYING TO ADDRESS THE COST PROBLEM FOR EXAMPLE IT IS PROMOTING ITS REACTOR'S SMALLER MODULAR DESIGN WHICH ALLOWS UTILITIES TO ADD GENERATING CAPACITY IN SMALLER INCREMENTS MORE CLOSELY RELATED TO ELECTRICITYDEMAND GROWTH EACH GENERAL ATOMICS UNIT GENERATES UP TO 300000 KILOWATTS OF ELECTRIC POWER ENOUGH FOR A CITY OF ABOUT 200000 COMPARED WITH TRADITIONAL NUCLEAR REACTORS THAT PRODUCE ONE MILLION KILOWATTS OR MORE BECAUSE OF THE HIGH COST OF UNUSED CAPACITY UTILITIES IN THE FUTURE WILL ADD SMALLER INCREMENTS OF CAPACITY MORE CLOSELY MATCHED TO GROWTH IN DEMAND SAYS DAVID HOFFMAN VICE PRESIDENT FOR NUCLEAR OPERATIONS AT CONSUMERS POWER CO THE JACKSON MICH UTILITY IS ONE OF SEVERAL UTILITIES THAT HAS EXPRESSED A LONGTERM INTEREST IN BUYING GASCOOLED REACTORS SIMULTANEOUSLY IN A BID TO PRODUCE POWER MORE CHEAPLY GENERAL ATOMICS RECENTLY DECIDED TO USE GAS TURBINES INSTEAD OF STEAMDRIVEN ONES DESPITE SUCH EFFORTS THE SCIENTIFIC COMMUNITY REMAINS SKEPTICAL OF THE ECONOMIC VIABILITY OF THE COMPANY'S NUCLEAR PROJECT LAST YEAR A NATIONAL ACADEMY OF SCIENCE STUDY HEADED BY JOHN AHEARNE FORMER CHAIRMAN OF THE US NUCLEAR REGULATORY COMMISSION RATED THE MARKET POTENTIAL OF GENERAL ATOMICS' REACTOR AS LOW AN EVALUATION THE BLUES HEATEDLY DISPUTE THE BLUES ALSO WORRY ABOUT LOSS OF FEDERAL FUNDING THE CLINTON ADMINISTRATION HAS PROPOSED ELIMINATING THE 18 MILLION ALLOCATED FOR RESEARCH AND DEVELOPMENT OF GASCOOLED REACTORS ABOUT 8 MILLION OF WHICH GOES TO GENERAL ATOMICS HOWEVER LINDEN BLUE VICE CHAIRMAN NOTES THAT SUCH CUTS HAVE BEEN PROPOSED NUMEROUS TIMES AND ALWAYS HAVE BEEN RESTORED BY CONGRESS HE PREDICTS THAT WILL HAPPEN THIS YEAR TO BOLSTER ITS CASE THE GENERAL ATOMICS POLITICAL ACTION COMMITTEE DONATED MORE THAN 310000 TO CONGRESSIONAL CANDIDATES IN THE 1992 ELECTION IN THEIR BID FOR FEDERAL FUNDING THIS YEAR THE BLUES ALSO ARE PLAYING A RUSSIAN CARD WHICH THEY ARE TOUTING AS A POTENTIAL BREAKTHROUGH FOR THE GASCOOLED REACTOR THE RUSSIAN GOVERNMENT HAS EXPRESSED EAGERNESS TO BUILD A GENERAL ATOMICS REACTOR IF THE US GOVERNMENT WILL CONTRIBUTE 100 MILLION IN GRANTS OVER FIVE YEARS FOR THE PROJECT THE CLINTON ADMINISTRATION IS CONSIDERING THE REQUEST THE PROJECT WOULD GIVE THE COMPANY THE OPPORTUNITY TO PERFECT THE GASCOOLED REACTOR AND PROVE ITS WORTH IN THE FIELD LINDEN BLUE ARGUES AND THE RUSSIAN PLANT COULD BE BUILT FOR 250 MILLION LESS THAN A QUARTER THE COST OF DOING IT IN THE US HE SAYS IN ADDITION HE SAYS THE PROJECT WOULD KEEP HUNDREDS OF RUSSIAN NUCLEAR SCIENTISTS EMPLOYED AND THAT HE ADDS MEANS THEY WILL BE WORKING FOR US INSTEAD OF SADDAM HUSSEIN SEE RELATED LETTER LETTERS TO THE EDITOR A NUCLEAR REACTOR THAT'S MELTDOWNPROOF WSJ JULY 9 1993 9306070124 YY93 MM07 9307090006 930601 LETTERS TO THE EDITOR COVERT DISCRIMINATION UNCOVERED BY TESTING' REGARDING TO YOUR MAY 14 EDITORIAL DIVERSITY LENDING IT IS CURIOUS TO ME THAT MANY PEOPLE WHO WOULD PROUDLY COUNT THEMSELVES AMONG THE LAW AND ORDER SET ARE LACKING IN ENTHUSIASM WHEN IT COMES TO AGGRESSIVE ENFORCEMENT OF CIVIL RIGHTS LAWS A CASE IN POINT IS THE REACTION BY SOME CONSERVATIVES TO THE USE OF UNDERCOVER TESTERS TO FERRET OUT DISCRIMINATION IN THE JOB MARKET LAST SUMMER THE MASSACHUSETTS COMMISSION AGAINST DISCRIMINATION MCAD SENT MATCHED PAIRS OF TESTERS ONE BLACK AND ONE WHITE TO APPLY FOR JOBS IN THE BOSTON AREA AND RECORD EXACTLY HOW THEY WERE TREATED WHEN THEY APPLIED FOR THOSE JOBS YOUR EDITORIAL WONDERED HOW MUCH REAL DISCRIMINATION SUCH A PROGRAM WOULD REMEDY CONSIDER THE EVIDENCE LAST AUGUST A YOUNG WHITE MAN WALKED INTO THE BROOKS BROTHERS STORE IN THE BACK BAY OF BOSTON TO APPLY FOR A JOB HE WAS INFORMED THAT THERE WAS A POSITION OPEN WAS GIVEN AN APPLICATION TO FILL OUT AND WAS TOLD TO RETURN TO THE STORE WITH A COPY OF HIS RESUME AN HOUR LATER A SECOND YOUNG MAN WHO IS BLACK WALKED INTO THE SAME BROOKS BROTHERS STORE AND ASKED THE SAME MANAGER WHETHER THERE WERE ANY JOB OPENINGS HE WAS TOLD NO THE TWO TESTERS HAD BEEN MATCHED TO BE AS SIMILAR A PAIR OF JOB APPLICANTS AS IS POSSIBLE THEY WERE THE SAME AGE SAME HEIGHT SAME WEIGHT BOTH WERE BRIGHT PERSONABLE WELLGROOMED AND PROFESSIONAL THEY HAD CREDENTIALS AND EXPERIENCE THAT ARE INDISTINGUISHABLE THEY WERE ALIKE IN EVERY IMPORTANT WAY EXCEPT ONE THEIR RACE AND DESPITE THEIR SIMILARITIES DESPITE THE FACT THAT THEY BOTH SPOKE WITH THE SAME MANAGER DESPITE THE FACT THAT THERE REALLY WAS A JOB AVAILABLE THE BLACK TESTER WASN'T EVEN GIVEN THE CHANCE TO APPLY FOR IT THE BLACK APPLICANT IN THIS CASE WASN'T TREATED RUDELY AS A MATTER OF FACT HE HAD NO IDEA THAT ANYTHING UNUSUAL HAD OCCURRED WHEN HE APPLIED FOR THE JOB THE PROGRAM PURPOSEFULLY KEPT THE TESTERS APART FROM EACH OTHER IN ORDER TO AVOID BIASING THE RESULTS THE BLACK TESTER WOULD NEVER EVEN HAVE KNOWN THERE WAS A JOB AVAILABLE MUCH LESS THAT HIS RACE HAD PLAYED A FACTOR IN PREVENTING HIM FROM APPLYING FOR THAT JOB IF YOU MULTIPLY HIS EXPERIENCE TIMES MILLIONS OF BLACK JOB SEEKERS EVERY DAY YOU BEGIN TO GET AT LEAST A PARTIAL EXPLANATION OF WHY THE UNEMPLOYMENT RATE FOR BLACKS IS SO MUCH HIGHER THAN FOR WHITES WITHOUT TESTING MUCH DISCRIMINATION WOULD REMAIN UNDETECTED AND IMPOSSIBLE TO PROSECUTE DISCRIMINATION FOR THE MOST PART IS COVERT AND SECRET IT IS RARE THAT A CASE OF DISCRIMINATION BROUGHT TO A STATE CIVIL RIGHTS AGENCY OR IN THE COURTS INVOLVES THE SMOKING GUN OF DIRECT EVIDENCE EMPLOYERS TODAY ARE USUALLY TOO SOPHISTICATED TO EVER BETRAY WHEN RACE AGE SEX OR ANY OTHER ILLEGAL BIAS INTRUDES ON AN EMPLOYMENT DECISION BASED ON THE EXPERIENCE OF THE TWO TESTERS THE AGENCY BROUGHT A COMPLAINT OF RACE DISCRIMINATION AGAINST BROOKS BROTHERS AND ANOTHER BOSTON RETAILER IN DOING SO THE COMMISSION WAS MERELY CARRYING OUT THE MANDATE IT IS CHARGED WITH ENFORCING THE LAW AS WITH ANY LAW ENFORCEMENT AGENCY MCAD LACKS THE RESOURCES TO POLICE EVERYWHERE ALL OF THE TIME IT'S IMPOSSIBLE FOR THE MCAD TO SCRUTINIZE EVERY WORKPLACE NOR SHOULD IT THE COMMISSION RELIES INSTEAD ON VOLUNTARY COMPLIANCE WITH STATE AND FEDERAL CIVIL RIGHTS LAW AND CREATING A REASONABLE FEAR AMONG EMPLOYERS THAT IF THEY DO BREAK THE LAW THEY WILL BE CAUGHT PROSECUTED AND PENALIZED THAT IS WHAT THIS CASE AND EMPLOYMENT TESTING ARE ABOUT SEE RELATED LETTER LETTERS TO THE EDITOR HYPERBOLE ONLY HURTS FIGHT AGAINST RACISM WSJ JULY 9 1993 9306010051 YY93 MM07 9307090137 930525 SPILT MILK METHODS OF MARKETING INFANT FORMULA LAND ABBOTT IN HOT WATER IT PUSHED BABYFOOD RIVALS TO BAR ADS LIMITING A NEW PLAYER'S CHANCES A BIG ANTITRUST SETTLEMENT BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO LIKE CLOCKWORK ABBOTT LABORATORIES FOR TWO DECADES HAS POSTED 15 PROFIT INCREASES ANNUALLY FOR MUCH OF THAT ACHIEVEMENT CREDIT BABY FORMULA THE CONCOCTION OF MILK AND VITAMINS THAT ABBOTT SELLS AT PRINCELY PHARMACEUTICALLEVEL PRICES ON 18 OCCASIONS FROM 1980 THROUGH THIS YEAR ABBOTT RAISED THE PRICE OF ITS SIMILAC FORMULA BY A TOTAL OF 207 SIX TIMES THE INCREASE IN THE CONSUMER PRICE OF MILK ITS BASIC INGREDIENT BY LAST YEAR THE NATION'S TOP MAKER OF FORMULA WAS SELLING 11 BILLION OF IT ANNUALLY OR 14 OF ITS TOTAL SALES AND ABOUT 16 OF PROFITS BUT ABBOTT'S LUCRATIVE BABYFORMULA PROSPERITY RESULTED FROM A MULTIYEAR OFFENSIVE THAT INCLUDED TALKS WITH OTHER FORMULA MAKERS AND CASH GRANTS TO THE AMERICAN ACADEMY OF PEDIATRICS MEANWHILE ABBOTT'S ROSS LABORATORIES FORMULAMAKING UNIT ALSO ENGAGED IN THE SYSTEMATIC DESTRUCTION OF INTERNAL DOCUMENTS COMPANY AND INDUSTRY RECORDS SHOW THAT ABBOTT PLAYED A CENTRAL ROLE IN PERSUADING RIVALS TO AGREE TO AN INDUSTRY SALES CODE THAT ERECTED A BARRIER TO NEW COMPETITORS BY DISCOURAGING CONSUMER ADVERTISING OF FORMULA US FORMULA COMPANIES ALSO HAVE LAVISHED MILLIONS OF DOLLARS ON PEDIATRICIANS AND THE AMERICAN ACADEMY OF PEDIATRICS WHICH IN TURN HELPED THE COMPANIES SELL THEIR FORMULA THE ACADEMY ISSUED PROCLAMATIONS OPPOSING FORMULA ADVERTISING THOUGH IT DENIES ANY LINK TO ABBOTT'S CONTRIBUTIONS ABBOTT AND SOME OTHER FORMULA MAKERS ALSO PAID FOR DOCTORS' TRIPS TO MEDICAL MEETINGS ACCORDING TO PEOPLE FAMILIAR WITH THESE PRACTICES THIS FORMULA FOR ABBOTT'S SUCCESS HOWEVER COULD POSE A FINANCIAL THREAT TO THE COMPANY FACING FEDERAL ANTITRUST ALLEGATIONS FROM 27 DRUGSTORE AND FOOD CHAINS ALONG WITH CHARGES FROM THE FLORIDA ATTORNEY GENERAL OF BIDRIGGING ABBOTT YESTERDAY SETTLED FOR MORE THAN 140 MILLION THE SETTLEMENT WHOSE PRECISE TERMS WEREN'T DISCLOSED WRAPS UP CONSOLIDATED ANTITRUST LITIGATION IN FEDERAL COURT IN TALLAHASSEE FLA AND HIGHLIGHTS A SERIES OF RECENT CASES ALLEGING ANTITRUST VIOLATIONS IN THE INFANTFORMULA INDUSTRY WHILE ABBOTT DECLINED TO COMMENT FOR THIS ARTICLE IT SAID YESTERDAY THAT IT WAS PLEASED TO CONCLUDE THIS MATTER IT DENIED ANY WRONGDOING AND SAID THAT IT COMPETES RESPONSIBLY AGGRESSIVELY AND COMPLETELY WITHIN THE LAW AND THAT THE SETTLEMENT WILL NOT HAVE AN IMPACT ON REPORTED NET EARNINGS THE COMPANY DECLINED TO ELABORATE ABBOTT STILL FACES ANTITRUST ACTIONS FILED LAST YEAR BY THE FEDERAL TRADE COMMISSION IT FACES NINE STATECOURT LAWSUITS RELATED TO BABYFORMULA PRICING FURTHER FIVE OTHER STATES STILL ARE INVESTIGATING WHETHER ABBOTT VIOLATED ANTITRUST LAWS ABBOTT'S TOP TWO COMPETITORS BRISTOLMYERS SQUIBB CO AND AMERICAN HOME PRODUCTS CORP LAST YEAR SETTLED SIMILAR ANTITRUST CHARGES IN FLORIDA WHILE MAINTAINING THEY HADN'T VIOLATED ANY LAWS TOTAL SETTLEMENT PAYMENTS BY ALL THREE COMPANIES EXCEED 230 MILLION THE STAKES ARE HIGH FOR AMERICAN FAMILIES TOO AT CURRENT PRICES MANY BABIES CONSUME 75 OR MORE OF FORMULA A MONTH A SIGNIFICANT BURDEN FOR MANY FAMILIES FLORIDA'S ATTORNEY GENERAL CALCULATES THAT OF ANY DOLLAR ABBOTT CHARGED WHOLESALE FOR FORMULA IN 1991 ONLY 16 CENTS REPRESENTS ITS COST OF PRODUCTION AND DELIVERY FOR THE MOST PART BABY FORMULA IS PRETTY MUCH THE SAME PEDIATRICNUTRITION EXPERTS AGREE THAT HEALTHY BABIES WHOSE MOTHERS DON'T BREASTFEED THRIVE EQUALLY WELL ON ALL COMMERCIAL BABY FORMULA DESPITE SLIGHT DIFFERENCES IN ADDITIVES LIKE IRON VEGETABLE FATS AND AMINO ACIDS FOR THE HEALTHY BABY PROBABLY ALL THE FORMULAS ARE EQUAL SAYS LAWRENCE GARTNER CHAIRMAN OF PEDIATRICS AT THE UNIVERSITY OF CHICAGO HOSPITALS COMPANIES ATTEMPT TO DIFFERENTIATE THEMSELVES AS UNIQUE BUT WHETHER ANY OF THE DIFFERENCES HAVE ANY EFFECT ON BABIES IS UNPROVEN ABBOTT ENTERED THE BABY NUTRITION BUSINESS IN 1964 PURCHASING FOR 42 MILLION IN STOCK THE COMPANY NOW CALLED ROSS LABORATORIES OF COLUMBUS OHIO ABBOTT BUILT IT TO US INDUSTRY LEADERSHIP BY 1980 THOUGH A DARK CLOUD LOOMED WORD EMERGED THAT NESTLE SA THE WORLD'S LARGEST FOOD COMPANY AND THE LEADING FORMULA SELLER OVERSEAS PLANNED TO JUMP INTO THE US MARKET BUT THE SWISS CONCERN HAD AN ACHILLES HEEL NESTLE HAD BEEN HIT WITH A CONSUMER BOYCOTT OVER THE WAY IT MARKETED INFANT FORMULA TO THIRD WORLD MOTHERS HEALTH PROFESSIONALS CLAIMED IT URGED WOMEN TO GIVE UP BREAST FEEDING WHICH MEDICAL EXPERTS SAY GENERALLY HAS HEALTH ADVANTAGES OVER FORMULA WILLIAM SMART ROSS LABS' PRESIDENT IN THE EARLY 1980S DEVISED THE IDEA OF A FORMULAINDUSTRY CODE OF BEHAVIOR THAT WOULD AMONG OTHER THINGS CONDEMN CONSUMER ADVERTISING ACCORDING TO DEPOSITIONS IN THE FLORIDA LITIGATION THIS PROVISION NOT INCIDENTALLY WOULD HAMPER NESTLE'S ABILITY TO COMPETE IN THE US MARKET BECAUSE THE COMPANY RELIED HEAVILY ON CONSUMER MARKETING ABBOTT DIDN'T NEED TO ADVERTISE BECAUSE OF ITS NETWORK OF SALES REPRESENTATIVES WITH CONTACTS AT HOSPITALS AND WITH DOCTORS ABBOTT HAD CULTIVATED SUCH RELATIONSHIPS OVER DECADES LINKS NESTLE COULDN'T EASILY DUPLICATE THESE MEDICAL SALES METHODS ARE KNOWN AS ETHICAL MARKETING THE ETHICS HAVE BEEN DUBIOUS FORMULA MAKERS INCLUDING ABBOTT HAVE EXTENDED BENEFITS TO MEDICAL STUDENTS AND PEDIATRICIANS THAT INCLUDED SCHOOL LOANS GRANTS PAYMENTS FOR MEDICAL ARTICLES AND TRIPS TO CONFERENCES ACCORDING TO PEOPLE FAMILIAR WITH THESE TACTICS IN TESTIMONY BEFORE JOINT SENATE PANELS IN 1991 JEROME W HOFFMAN ANTITRUST CHIEF IN THE FLORIDA ATTORNEY GENERAL'S OFFICE TOLD OF OUTRIGHT CASH GRANTS OF THOUSANDS OF DOLLARS FROM FORMULA COMPANIES APPARENTLY TO INDUCE PHYSICIANS TO RECOMMEND SPECIFIC PRODUCTS AT THE BIANNUAL MEETINGS OF THE AMERICAN ACADEMY OF PEDIATRICS FORMULA COMPANIES STILL REGULARLY PICK UP THE TAB FOR COCKTAIL RECEPTIONS THEY AWARD RESEARCH MONEY TO PEDIATRICIANS ABBOTT GENERALLY ARGUES IT MARKETS BABY FORMULA THROUGH DOCTORS BECAUSE PHYSICIANS CAN BEST APPRISE A MOTHER OF HER BABY'S NUTRITIONAL NEEDS THE BIG US FORMULA COMPANIES' MARKETING ALSO INCLUDES GIVING AWAY MILLIONS OF DISCHARGE PACKS OF FORMULA TO MOTHERS LEAVING HOSPITALS WITH THEIR INFANTS THE INDUSTRY BESTOWS MAJOR CONTRIBUTIONS ON MANY HOSPITALS TO SNARE THE PRIVILEGE OF GIVING AWAY PRODUCTS THERE AND THAT OF COURSE OFFERS A CHANCE TO ENTICE A NEW CUSTOMER POSSIBLY FOR GENERATIONS IF PARENTS FIND THEIR INFANT THRIVES ON SIMILAC OR BRISTOLMYERS'S ENFAMIL OR AMERICAN HOME'S SMA THEY TEND TO STICK WITH IT NEW COMPETITION COULD THREATEN THIS ARRANGEMENT LAEL F JOHNSON ABBOTT'S GENERAL COUNSEL AND SENIOR VICE PRESIDENT BEGAN IN THE EARLY 1980S TO CONTACT COUNTERPARTS AT BRISTOLMYERS AND AMERICAN HOME PRODUCTS TO PUSH FOR AN ANTIADVERTISING CODE ACCORDING TO A DEPOSITION HE GAVE IN THE FLORIDA LITIGATION EXTENSIVE NEGOTIATIONS INVARIABLY INCLUDING THE THREE FORMULA MAKERS WHO ONCE SHARED ABOUT 98 OF THE US MARKETENSUED AS THE INDUSTRY PREPARED A CODE TO ATTACK CONSUMER ADVERTISING AT A SEPT 2 1983 MEETING AT THE O'HARE HILTON IN CHICAGO MR JOHNSON URGED THE NOADVERTISING CLAUSE ON OTHER MEMBERS OF AN INDUSTRY GROUP CALLED THE INFANT FORMULA COUNCIL A MEMO FROM ONE IFC LAWYER SHOWS MR JOHNSON WAS CONCERNED EVEN THEN ABOUT WHETHER THESE ACTIVITIES MIGHT VIOLATE ANTITRUST LAW THE MEMO BY ATTORNEY STEVEN M KOWAL WHICH WAS ENTERED AS EVIDENCE IN FLORIDA SAYS MR JOHNSON WAS LOOKING FOR CODE LANGUAGE THAT WOULD NOT PRESENT INTOLERABLE ANTITRUST PROBLEMS THE MEMO DESCRIBES MR JOHNSON AS SAYING THAT IF FEDERAL ANTITRUST ENFORCERS OBJECTED TO PORTIONS OF THE CODE COMPANIES WOULD THEN UNILATERALLY ADDRESS THESE AREAS IN UNILATERALLY ADOPTING THEIR OWN CODE ABBOTT DECLINES TO COMMENT ON THE MEMO WHILE THESE TALKS CONTINUED ABBOTT AND THE OTHER MANUFACTURERS REGULARLY RAISED FORMULA PRICES IN WHAT CRITICS DESCRIBE AS LOCKSTEP FASHION COMPANIES WOULD RAISE PRICES WITHIN WEEKS OR OFTEN DAYS OF ONE ANOTHER THE DIFFERENCE AMONG THE THREE COMPANIES IN WHOLESALE PRICE PER CAN OFTEN RANGED FROM ZERO TO THREE CENTS LOCKSTEP PRICING MEANT THERE DIDN'T APPEAR TO BE MUCH COMPETITION IN THE INDUSTRY SAYS STEFAN HARVEY WHO COAUTHORED REPORTS ON PRICING FOR A WASHINGTONBASED NONPROFIT GROUP THE CENTER FOR BUDGET AND POLICY PRIORITIES IN A JANUARY 1985 MEETING AT NEW YORK'S PARK HYATT/UNITED NATIONS PLAZA HOTEL EXECUTIVES FROM ABBOTT AND THE OTHER COMPANIES HAMMERED OUT POINTS OF AGREEMENT OVER LANGUAGE OF AN ANTIADVERTISING CODE ACCORDING TO THOSE FAMILIAR WITH THE MEETING THE FOLLOWING MONTH AT THE SONESTA BEACH RESORT ON KEY BISCAYNE FLA THE FORMULA MAKERS' INDUSTRY COUNCIL APPROVED THE CODE A MEMO BY MR KOWAL THE ATTORNEY SAYS IT WAS MR JOHNSON WHO DEVISED THE INDUSTRY'S RATIONALE FOR THE PROVISION THAT BREASTFEEDING WAS SO IMPORTANT AS TO OUTWEIGH ANY RESTRICTIONS ON COMPETITION HOWEVER IN CONGRESSIONAL TESTIMONY IN 1991 THE FTC'S DEPUTY DIRECTOR OF COMPETITION MARY LOU STEPTOE SAID ABOUT THE FORMULA INDUSTRY THE ANTITRUST LAWS DO PROHIBIT AGREEMENTS AMONG COMPETITORS TO REFRAIN FROM ADVERTISING EVEN WHERE THE COMPETITORS PROFESS LAUDATORY MOTIVES SUCH AS THE PUBLIC HEALTH OR SAFETY AND THE JUSTICE DEPARTMENT TOLD THE INDUSTRY THE CODE MIGHT WELL VIOLATE ANTITRUST LAWS IT WAS AT THIS POINT THAT THE AMERICAN ACADEMY OF PEDIATRICS ENTERED THE PICTURE RESTATING ITS OPPOSITION TO ADVERTISING IT WORRIED THAT ADVERTISING COULD DIMINISH BREASTFEEDING BUT THE ACADEMY MAY NOT HAVE BEEN A DISINTERESTED THIRD PARTY GIVEN THE CONTRIBUTIONS RECEIVED FROM THE FORMULA INDUSTRY TODAY THE FORMULA MAKERS CONTRIBUTE ABOUT 1 MILLION ANNUALLY TO THE ACADEMY ABBOTT IS THE BIGGEST DONOR JAMES E STRAIN THE ACADEMY'S EXECUTIVE DIRECTOR SAYS THE MONEY IS LARGELY USED FOR EDUCATING YOUNG PHYSICIANS DR STRAIN DEFENDS THE ACADEMY AGAINST SUGGESTIONS OF A CONFLICT OF INTEREST THE EDUCATIONAL VALUE OFFSETS ANY QUESTION OF PROPRIETY HE SAYS WE'VE DISCUSSED IT AT LENGTH AND WE'RE NOT THE ONLY PROFESSIONAL SOCIETY THAT TAKES FUNDS THE INDUSTRY INCLUDING ABBOTT ALSO KICKED IN AT LEAST 3 MILLION TOWARD THE 10 MILLION COST OF BUILDING THE ACADEMY'S HEADQUARTERS IN ELK GROVE VILLAGE ILL IN 1983 AND A 1986 INTERNAL MEMO SUGGESTS THE ACADEMY'S FINANCES WERE OF PARAMOUNT CONCERN AS IT CONSIDERED WHETHER TO RENEW ITS PUBLIC STATEMENTS AGAINST ADVERTISING THE AAP DOCUMENT SAYS THE ACADEMY'S EXECUTIVE COMMITTEE AGREED THAT THERE IS A NEED TO MAKE THIS STATEMENT REAFFIRMING THE AAP'S POSITION ON MARKETING BREAST MILK LAY ADVERTISING ETC IF THERE IS A MARKETING WAR THERE MAY BE A SHIFT IN INDUSTRY'S DISTRIBUTION OF FUNDS AND THE AAP MAY HAVE TO CUT BACK ON ANTICIPATED INCOME FROM INDUSTRY DR STRAIN SAYS HOWEVER THERE ISN'T ANY CONNECTION BETWEEN OUR POSITIONS AND CONTRIBUTIONS FROM INDUSTRY BY CONTRAST HARRY JENNISON THE PEDIATRICS ACADEMY'S EXECUTIVE DIRECTOR UNTIL 1986 SAYS I DID NOT REALIZE AT THE TIME HOW MUCH WE WERE BEING BOUGHT OFF NOW THAT I KNOW THE FORMULA COMPANIES WERE TRYING TO MANIPULATE THE ACADEMY I FEEL ABSOLUTELY DUPED FOR A WHILE THERE WAS AT LEAST ONE ADVOCATE WITHIN ABBOTT FOR RESTRAINING PRICES JACK W SCHULER ABBOTT PRESIDENT DURING THE LATE 1980S ARGUED WITH THENCHAIRMAN ROBERT A SCHOELLHORN THAT BURGEONING PRICE INFLATION COULDN'T CONTINUE EVERYBODY KIND OF KNEW FORMULA WAS A GENERIC PRODUCT SAYS MR SCHULER IF IT CAME OUT THAT WE WERE RIPOFF ARTISTS IT WOULD HAVE HURT HE REMEMBERS TELLING MR SCHOELLHORN YOU'RE GOING TO GET CAUGHT EITHER BY PUBLIC OUTRAGE OR OUTRAGE FROM PEDIATRICIANS OR CONSUMERS MR SCHOELLHORN FIRED MR SCHULER A FAVORITE OF THE ABBOTT BOARD MR SCHOELLHORN WHO THEN HIMSELF WAS FORCED OUT BY THE COMPANY'S DIRECTORS DIDN'T RESPOND TO TELEPHONE CALLS BUT UNDER NEW CHAIRMAN DUANE L BURNHAM PRICE INCREASES HAVE CONTINUED UNABATED IN 1988 NESTLE FINALLY ENTERED THE US MARKET FOLLOWING ITS ACQUISITION OF CARNATION IT BEGAN SELLING GOOD START AND GOOD NATURE NOW CALLED FOLLOWUP BRANDS THE FOLLOWING YEAR BRISTOLMYERS TEAMED WITH GERBER PRODUCTS CO BASED IN MICHIGAN TO SELL A GERBER FORMULA BRAND THE NEW PRODUCTS WERE TO BE LARGELY ADVERTISED DIRECTLY TO PARENTS AN AD CAMPAIGN ULTIMATELY WAS LAUNCHED ABBOTT RENEWED ITS ATTACKS ON ADVERTISING RICHARD GAST THEN PRESIDENT OF ROSS LABS BEGAN TO WRITE PEDIATRICIANS ABOUT WHAT HE CALLED A DEVELOPMENT THAT UNDERMINES YOUR CONTROL OVER THE INFANT'S DIET AND HEALTH MR GAST ASKED IS IT AN ANTIQUATED BELIEF THAT OUR ACTIONS SHOULD ALWAYS BE IN THE BEST INTEREST OF THE HEALTH AND NUTRITION OF INFANTS SINCE THEN NESTLE AND GERBER BRANDS HAVE BEEN SLOW TO FIND SUCCESS IN THE US THEY CURRENTLY HOLD ABOUT 5 AND 3 OF THE MARKET RESPECTIVELY ABBOTT DESPITE A TWOPOINT DROP IN THE PAST YEAR HOLDS ABOUT A 51 SHARE OF THE US MARKET FOLLOWED BY BRISTOLMYERS'S 27 AND AMERICAN HOME'S 11 THERE CERTAINLY WAS AN EFFECT OF THE ANTIADVERTISING PUSH AND IT CAUSED THE CARNATION FOLKS TO COME OUT OF THE BLOCKS SLOWER THAN THEY WOULD HAVE SAYS DANIEL LEMAITRE AN INDUSTRY ANALYST WITH COWEN & CO IN BOSTON FOR NESTLE'S PART ALFRED MULTARI INFANT NUTRITION DIRECTOR AT ITS CARNATION UNIT IN GLENDALE CALIF SAYS TO SAY THAT THE ACADEMY'S POSITION AGAINST ADVERTISING WAS DAMAGING TO OUR LAUNCH IS PERHAPS THE BIGGEST UNDERSTATEMENT YOU CAN MAKE NESTLE'S CARNATION FORMULAS THOUGH HAVE BEGUN MAKING INROADS INTO THE LUCRATIVE FEDERAL LOWINCOME PROGRAM FOR WOMEN INFANTS AND CHILDREN WIC WHICH MAKES UP ONETHIRD OF US INDUSTRY SALES BY VOLUME IN FISCAL 1991 THE STATEADMINISTERED PROGRAM SPENT 458 MILLION ON FORMULA ITS LARGEST SINGLE PURCHASE THE WIC PROGRAM HAS GENERALLY BEEN SUCCESSFUL IN DRIVING DOWN PRICES THAT'S BECAUSE MANY STATES NOW JOINTLY BARGAIN FOR FORMULA USING THEIR COMBINED MARKETING MUSCLE TO WIN LOWER PRICES BEFORE JOINING A WESTERNSTATES PURCHASING GROUP OREGON PAID 68 CENTS A CAN FOR POWDERED FORMULA NOW IT PAYS JUST HALF THAT OUR SAVINGS HAVE EXCEEDED 1 MILLION A YEAR SAYS BETSY CLARKE OREGON'S WIC DIRECTOR CARNATION RECENTLY WON ITS FIRST WIC BID TO SUPPLY THE WESTERN STATES BY SUBSTANTIALLY UNDERCUTTING ITS COMPETITION IN PRICE THIS MAY PORTEND A GROWING WIC PRICE WAR AMONG MANUFACTURERS EVEN SO IN AT LEAST FOUR OTHER WIC BIDS IN 1990 IN MONTANA NEVADA WEST VIRGINIA AND IOWA ABBOTT AND BRISTOLMYERS BID EXACTLY THE SAME AMOUNT A REBATE TO THE STATE OF 75 CENTS OFF ITS REGULAR COMMERCIAL PRICE FOR 13OUNCE CANS OF CONCENTRATED MILKBASED FORMULA THERE WERE A NUMBER OF STATES WHERE THE COMPANIES' WIC BIDS DIDN'T MATCH ABBOTT ACTUALLY HAD BEGUN BIDDING 75CENT REBATES IN CONNECTICUT IN 1989 AT THE TIME JOHN KANE THEN PRESIDENT OF ABBOTT'S ROSS LABS UNIT WROTE IN AN INTERNAL MEMO ABOUT BID REBATES THAT COMPETITORS MAY RESPOND TO OUR STRONG CONSISTENT SIGNAL APPARENTLY REFERRING TO THE REPEATED 75CENT BIDS ABBOTT DECLINED COMMENT SHORTLY THEREAFTER A BRISTOLMYERS LETTER PUBLICLY ANNOUNCED IT WOULD BID A 75CENT REBATE IN SEVERAL OTHER STATES A MOVE THE CENTER FOR BUDGET AND POLICY PRIORITIES DESCRIBED AS UNDERMINING THE SEALED BIDDING PROCEDURES BUT DESTRUCTION OF DOCUMENTS AT ABBOTT'S ROSS UNIT COULD POSE AS MANY PROBLEMS AS THESE UNDERLYING EVENTS MANY OF THE DOCUMENTPURGE ORDERS TOOK PLACE AFTER FLORIDA ASSISTANT ATTORNEY GENERAL PATRICIA A CONNERS HAD FILED CIVIL SUBPOENAS KNOWN AS CIVIL INVESTIGATIVE DEMANDS FOR ROSS DOCUMENTS DENYING TALK OF A COVERUP ABBOTT MAINTAINS IT HAD A ROUTINE POLICY OF DISCARDING RECORDS FOR EFFICIENCY'S SAKE BUT SURVIVING DOCUMENTS SUGGEST A FIXATION NOT WITH EFFICIENCY BUT SECRECY BE SENSITIVE TO WHAT YOU PUT IN WRITING WROTE CHARLES F HIMES ROSS LABS' VICE PRESIDENT OF MARKETING AND SALES IN A JULY 1988 MEMO TO ROSS EXECUTIVES ROSS MEETING MINUTES THAT MONTH SHOW THAT MR HIMES EMPHASIZED THE NEED TO PROTECT CONFIDENTIAL INFORMATION FOUR MONTHS LATER HE ENCOURAGED THE OFFICIALS TO GET RID OF UNNECESSARY RECORDS ACCORDING TO MINUTES OF A MEETING AT THE TIME AND AGAIN IN DECEMBER MR HIMES REMINDED OTHERS IN THE ROSS UNIT TO CLEAN OUT YOUR FILES BEFORE YEAR END IN NOVEMBER 1990 DONALD DOTY ROSS LAB'S VICE PRESIDENT SALES WROTE THAT CLEAN FILES REFLECT A CLEAN OPERATION HE ADDED A REFERENCE TO THE WATERGATE TAPES SCANDAL IF ONLY MR NIXON HAD PAID ATTENTION DESPITE ITS TROUBLES ABBOTT DOESN'T SEEM INCLINED TO CHANGE ITS PRICING POLICY LAST MONTH IT AGAIN RAISED THE WHOLESALE PRICE OF A 13OUNCE CAN OF SIMILAC CONCENTRATE TO 226 53 CENTS A CAN MORE THAN NESTLE/CARNATION'S GOOD START FORMULA ANTITRUST OFFICIALS BELIEVE CONSUMER ADVERTISING COULD RESTRAIN PRICE INCREASES DIRECT RESPONSIBLE ADVERTISING SAID FLORIDA ANTITRUST DIRECTOR MR HOFFMAN IN CONGRESSIONAL TESTIMONY CAN BRING WITH IT PRICE COMPETITION THAT HAS BEEN ABSENT FROM THE INDUSTRY FOR ALMOST 20 YEARS SEE RELATED LETTER LETTERS TO THE EDITOR INFANT FORMULA VS BREAST FEEDING WSJ JUNE 11 1993 SEE RELATED LETTER LETTERS TO THE EDITOR DOCTORS AND BABYFORMULA MARKETING WSJ JULY 9 1993 9305250087 9306110172 YY93 MM06 YY93 MM07 9307090132 930511 A PIECE OF HISTORY FIRST WALL STREET FIRM OWNED BY BLACKS SINKS AFTER FOUNDER'S DEATH DANIELS & BELL ENDED UP RUN BY SON A TV ACTOR WHO KNEW LITTLE OF BUSINESS A STEPMOTHER GETS THE BOOT BY CONSTANCE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FIVE YEARS AFTER THE UNTIMELY DEATH OF TRAVERS BELL JR HIS COMPANY WALL STREET'S FIRST BLACKOWNED SECURITIES FIRM MAY BE FACING ITS OWN END DANIELS & BELL INC IS NO CASUALTY OF INDUSTRY CONDITIONS OR THE ECONOMY THESE DAYS IN FACT MANY OF THE MINORITYOWNED BROKERAGE FIRMS THAT FOLLOWED IT TO WALL STREET ARE ENJOYING THEIR BEST RESULTS EVER WHAT HURT DANIELS & BELL WAS A LAPSE ON THE PART OF MR BELL DESPITE A HISTORY OF HEART TROUBLE HE NEGLECTED TO CULTIVATE ANYONE TO SUCCEED HIM AS CHIEF EXECUTIVE WHEN IN 1988 A HEART ATTACK FELLED HIM AT AGE 46 A VACUUM DEVELOPED AT THE HIGHEST LEVEL OF THE FIRM AND INTO THAT VACUUM WALTZED WALL STREET'S UNLIKELIEST EXECUTIVE A 24YEAROLD HOLLYWOOD STAR DARRYL BELL SON OF THE LATE FOUNDER BOASTED A MAJOR ROLE ON THE NBC SITUATION COMEDY A DIFFERENT WORLD BUT HAD NO TRAINING OR EXPERIENCE IN THE BUSINESS WORLD INDEED HE HAD LONG RESISTED HIS FATHER'S INVITATIONS TO JOIN THE FIRM AFTER HIS FATHER'S DEATH HE TOOK CHARGE TOP EXECUTIVES OF DANIELS & BELL FOUND THEMSELVES TAKING ORDERS FROM A NEOPHYTE WHO SPENT HALF HIS TIME IN HOLLYWOOD PUT HIS SISTER AND MOTHER ON THE PAYROLL AND MADE HEAVY USE OF A CORPORATE CREDIT CARD ONCE CHARGING TO IT 32000 WORTH OF CLOTHES FROM BARNEYS NEW YORK BEFORE LONG SOME EXECUTIVES AND CUSTOMERS DEFECTED THE LATE FOUNDER'S WIDOW AND TWO SISTERS SUED DARRYL BELL IN TWO SEPARATE CASES CHARGING HIM WITH MISMANAGEMENT REVENUE PLUMMETED TWO WEEKS AGO A SUPERIOR COURT PROBATE JUDGE IN MORRIS COUNTY NJ RULED THAT MR BELL'S ESTATE WHICH MR BELL HAD VALUED LESS THAN TWO YEARS BEFORE HIS DEATH AT 149 MILLION WAS INSOLVENT THE JUDGE ORDERED THAT DANIELS & BELL ALONG WITH OTHER PROPERTIES IN THE ESTATE BE EITHER TERMINATED OR DISPOSED OF AS SOON AS POSSIBLE TO PAY CREDITORS ALTHOUGH EFFORTS ARE STILL BEING MADE TO SAVE THE FIRM ALL PROCEEDS FROM A SALE WOULD BE LIKELY TO WIND UP IN THE HANDS OF THE INTERNAL REVENUE SERVICE WHICH HAS A 23 MILLION CLAIM AGAINST THE ESTATE SOME SUGGEST THAT NO ONE COULD HAVE REPLACED TRAVERS BELL IF TULLY AT MERRILL LYNCH DIED LIFE FOR MERRILL LYNCH WOULD GO ON SAYS MICHAEL BACKER DARRYL BELL'S ATTORNEY REFERRING TO MERRILL CEO DANIEL TULLY BUT NOT SO FOR A ONEMAN SHOP WHICH IS WHAT DANIELS & BELL REALLY WAS FOR MANY THE SEEMINGLY IMMINENT COLLAPSE OF DANIELS & BELL IS PAINFUL BECAUSE OF THE FIRM'S HISTORICAL SIGNIFICANCE DANIELS & BELL SHOWED THAT THERE WAS A PLACE FOR BLACKS ON WALL STREET SAYS HERBERT N BRITTON A FORMER PARTNER AT DANIELS & BELL WHO NOW RUNS AN INVESTMENT BOUTIQUE THE COMPANY SYMBOLIZED ALL THAT WE FOUGHT FOR DURING THE 1960S BUT ITS FATE IS NOT A RARE OCCURRENCE TOO MANY BUSINESSMEN JUST LEAVE COMPANIES IN THEIR WILLS ALONG WITH THE HEIRLOOM CUFFLINKS RESULTING IN THE DEMISE OF HUNDREDS OF COMPANIES EVERY YEAR SAYS JAMES LEA A PROFESSOR AT THE UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL AND AUTHOR OF A BOOK ABOUT FAMILYOWNED BUSINESSES IN THE LATE 1950S THE CHICAGO STOCK BROKERAGE FIRM OF DEMPSEY & TEGLER WHERE TRAVERS BELL'S FATHER WORKED IN THE OPERATIONS OFFICE HIRED HIM IN THAT FABLED STARTING PLACE THE MAIL ROOM IN AN ARTICLE HE WROTE SIX YEARS AGO FOR INSTITUTIONAL INVESTOR MAGAZINE MR BELL RECALLED THAT ON HIS FIRST DAY THERE THEY GAVE ME A BRIEFCASE AND TOLD ME TO MAKE A DELIVERY I UNZIPPED THE BRIEFCASE LOOKED AT THE RAGGEDY PAPERS IN IT AND I GAVE THEM TO A GUY AND HE GAVE ME A CERTIFIED CHECK FOR 175000 MY EYES WENT BOIING THE FIRST THOUGHT THAT HIT ME WAS THAT THIS GUY WAS PAYING ME FOR PAPER CONVINCED THE SECURITIES BUSINESS WAS THE FAST TRACK TO BIG MONEY MR BELL DROPPED OUT OF COLLEGE AND BECAME A FULLTIME EMPLOYEE RISING QUICKLY FROM MESSENGER TO WIRE OPERATOR TO OPERATIONS CLERK HE OFTEN TOLD FRIENDS THAT HIS BIG BREAK CAME IN 1963 WHEN HE WAS NAMED OPERATIONS MANAGER OF STRAUS BLOSSER & MCDOWELL A ST LOUIS FIRM JUST ACQUIRED BY DEMPSEY & TEGLER BEFORE LONG HOWEVER MR BELL MET WILLIE DANIELS A BLACK STOCKBROKER AT THE NOWEXTINCT BACHE SECURITIES INC AND THEY BEGAN PLANNING TO START THEIR OWN FIRM FROM DAN LUFKIN COFOUNDER OF DONALDSON LUFKIN & JENRETTE SECURITIES CO THE TWO MEN GAINED FINANCIAL BACKING AS WELL AS INTRODUCTIONS THAT LED TO SEVERAL ACCOUNTS WE THOUGHT IT WAS ABOUT TIME TO HAVE A BLACK FIRM THAT WAS A MEMBER OF THE EXCHANGE MR LUFKIN SAYS ADDING THAT MESSRS BELL AND DANIELS LAID OUT A BUSINESS PLAN THAT MADE A LOT OF SENSE THEY COULD SEE ALL OF THE ADVANTAGES TO BEING THE FIRST BLACKOWNED FIRM THEY TARGETED A GROUP OF INVESTORS THAT HAD BEEN PAID LITTLE HEED BY WALL STREET'S MORE PRESTIGIOUS INVESTMENT HOUSES BLACK COLLEGES BLACK CHARITIES AND BLACK BANKS THAT HAD FUNDS TO INVEST AND WOULD BE EAGER TO BUY STOCK FROM A BLACKOWNED FIRM BUT DANIELS & BELL QUICKLY CONCLUDED THAT UNDERWRITING CORPORATE STOCK OFFERINGS WOULD NEVER BE A BOOMING BUSINESS FOR THEM BECAUSE THEY WERE LOCKED OUT OF COUNTRY CLUBS WHERE MANY CORPORATE CHIEFTAINS DID BUSINESS HOWEVER PUBLIC FINANCE WHEREIN INVESTMENT BANKERS UNDERWRITE AND SELL BONDS ISSUED BY CITY AND OTHER GOVERNMENTS WAS MORE PROMISING BECAUSE OF THE ASCENDANCE OF BLACK MAYORS WHO COULD DIRECT WORK THEIR WAY MOREOVER THE FEDERAL GOVERNMENT WAS PRESSURING CITIES TO BUILD AFFORDABLE HOUSING FOR LOW AND MODERATEINCOME RESIDENTS PROJECTS FINANCED WITH MUNICIPAL BONDS DANIELS & BELL'S FIRST BOND UNDERWRITING WAS FOR WHAT IS BELIEVED TO BE THE OLDEST BLACK MUNICIPALITY IN THE NATION MOUND BAYOU MISS A RURAL COMMUNITY FOUNDED BY THE FORMER SLAVES OF JOE DAVIS THE BROTHER OF JEFFERSON DAVIS PRESIDENT OF THE CONFEDERACY THE IDEA WAS TO BRING MUTUAL SUPPORT TO A FLEDGING UNDERWRITER AND A BLACK MUNICIPALITY RECALLS DANIEL MITCHELL A FORMER ASSISTANT TO MOUND BAYOU'S MAYOR THERE WAS AN AFFINITY FROM THERE IT TOOK OFF BY 1987 THE FIRM'S 15TH YEAR IT RANKED 20TH IN THE NATION FOR MUNICIPALBOND UNDERWRITING WAS TRADING STOCKS FOR SUCH CORPORATE GIANTS AS GENERAL MOTORS CORP AND EXXON CORP AND WAS MAKING INROADS IN MONEY MANAGEMENT WINNING CONTRACTS TO MANAGE PENSIONFUND ASSETS FOR WASHINGTON DC AND CHICAGO FOR REASONS THAT AREN'T CLEAR MR DANIELS LEFT THE FIRM SHORTLY AFTER ITS FOUNDING LEAVING MR BELL AS SOLE OWNER EVENTUALLY MR BELL USED THE FIRM TO ACQUIRE OR AMASS OWNERSHIP POSITIONS IN NUMEROUS OTHER BUSINESSES INCLUDING A HARLEM BANK AND A BROOKLYN COMPANY THAT MADE CHOCOLATE CHIPS FOR NABISCO INC HE ALSO BECAME A REGULAR ON THE POLITICAL FUNDRAISING CIRCUIT WHEN LOS ANGELES MAYOR TOM BRADLEY RAN FOR CALIFORNIA GOVERNOR IN 1986 MR BELL WAS HOST OF A DINNER WITH THE HEADS OF 10 WALL STREET INVESTMENT FIRMS NETTING MAYOR BRADLEY'S CAMPAIGN 100000 IN A DAY MR BELL'S CONNECTIONS ENABLED DANIELS & BELL TO PARTICIPATE IN BIGGER AND BIGGER UNDERWRITINGS WITH FIRMS SUCH AS GOLDMAN SACHS & CO AND SOLOMON BROTHERS INC I FOUND HIM A VERY ENGAGING EDUCATED AND WITTY GUY SAYS DAVID CLAPP HEAD OF MUNICIPAL FINANCE AT GOLDMAN SACHS ADD TO THAT HIS DYNAMIC PERSONALITY AND THE FACT THAT HIS FIRM WAS THE FIRST MINORITYOWNED VENTURE ON THE STREET AND YOU CAN SEE WHY SO MANY PEOPLE WERE ROOTING FOR HIM MR BELL'S PERSONAL LIFE WASN'T RUNNING AS SMOOTHLY HOWEVER HE WAS DIVORCED FROM SANDRA BELL HIS FIRST WIFE IN THE LATE 1970S HE CONTINUED LIVING WITH THEIR TWO CHILDREN RHONDA AND DARRYL IN THE FAMILY HOME IN MORRISTOWN NJ WHILE HIS EXWIFE RETURNED TO THE CITY WHERE THEY MET CHICAGO UPON BECOMING AN ADULT RHONDA MOVED TO CHICAGO TOO AS FOR DARRYL MR BELL DREAMED OF SEEING HIM TAKE OVER THE BUSINESS BUT THE YOUNG MAN HAD OTHER PLANS DARRYL ALWAYS WANTED TO BE AN ACTOR SAYS ARTHUR MCCLEARIN DARRYL'S UNCLE AND A FORMER HEAD OF INSTITUTIONAL SALES AT DANIELS & BELL IT REALLY USED TO BOTHER TRAVERS THAT HE COULDN'T GET DARRYL INTERESTED IN THE COMPANY IN TURN DARRYL AND HIS SISTER WERE BOTHERED BY THEIR FATHER'S LOVE LIFE ACCORDING TO RELATIVES THE DIVORCE ANGERED THEM AND THINGS BECAME EVEN MORE STRAINED AFTER MR BELL SIRED A THIRD CHILD OUT OF WEDLOCK AND THEN MARRIED A WOMAN WHOM BY ALL ACCOUNTS HIS OLDEST CHILDREN DIDN'T LIKE LAURA HILL BELL A YOUNG AND GLAMOROUS FASHION MODEL MR BELL AND HIS BRIDE MOVED INTO A LAVISH PARK AVENUE APARTMENT FOURTEEN MONTHS AFTER THEIR WEDDING WHILE HE WAS ALONE THERE ONE NIGHT IN 1988 A HEART ATTACK STRUCK HE HAD SURVIVED SEVERAL BEFORE BUT THIS ONE WAS FATAL IN A PRENUPTIAL AGREEMENT MR BELL HAD VALUED HIS ESTATE AT MORE THAN 14 MILLION BUT NOW ACCOUNTANTS HIRED BY HIS ESTATE CAME UP WITH A MUCH LOWER NUMBER 5 MILLION IN PART BECAUSE THE VALUE OF SOME PROPERTY AND STOCK HOLDINGS HAD DECLINED AND ALSO BECAUSE MR BELL'S COCOLINE CHOCOLATE CO IN BROOKLYN HAD LOST ITS MAJOR ACCOUNT AFTER NABISCO WAS ACQUIRED BY RJ REYNOLDS CO MR BELL'S WILL WAS UNVEILED IN SUPERIOR COURT IN MORRISTOWN IT LEFT HIS ESTATE TO HIS CHILDREN 10 TO THE CHILD BORN OUT OF WEDLOCK 39 TO RHONDA AND 51 TO DARRYL DARRYL AND HIS MOTHER SISTER AND STEPMOTHER DECLINED TO BE INTERVIEWED BUT WHAT HAPPENED NEXT CAN BE DETERMINED FROM COURT DOCUMENTS AND INTERVIEWS WITH OTHER RELATIVES AND WITH LAWYERS AND COMPANY EXECUTIVES AT 24 DARRYL HAD A GREAT JOB PLAYING RON JOHNSON IN A DIFFERENT WORLD A SPINOFF OF THE COSBY SHOW LIKE DARRYL HIMSELF HIS TV CHARACTER A BOASTFUL COLLEGE STUDENT WHOSE IMPETUOUS BEHAVIOR OFTEN LEADS HIM INTO TROUBLE IS THE SON OF A SUCCESSFUL BUSINESSMAN AFTER YEARS OF IGNORING HIS FATHER'S BUSINESS DARRYL SUDDENLY TOOK A GREAT INTEREST IN IT TRAVELING REGULARLY FROM LOS ANGELES TO NEW YORK TO OVERSEE ITS AFFAIRS WHEN HE COULDN'T BE THERE HE AUTHORIZED HIS SISTER RHONDA 26 AT THEIR FATHER'S DEATH TO FLY IN FROM CHICAGO AND RUN THE SHOW THEIR APPEARANCE AT THE FIRM CAUSED FRICTION FROM THE START DARRYL CAME IN WITH NO PREPARATION AND NO EXPERIENCE YET HE AND HIS SISTER FELT THEY COULD COME RIGHT IN AND PLAY WITH THE BIG BOYS OFF THE BAT SAYS CRAIG WALKER TRAVERS BELL'S NEPHEW AND A FORMER MUNICIPAL INVESTMENT BANKER AT DANIELS & BELL MR WALKER NOW AN INVESTMENT BANKER AT PRUDENTIAL SECURITIES INC ADDS I LEFT BECAUSE I COULD NO LONGER WORK CONSTRUCTIVELY WITH RHONDA AND DARRYL THE BELL CHILDREN ALIENATED OTHER EXECUTIVES AS WELL DARRYL AND RHONDA DID NOT SEEM TO HAVE A PERSPECTIVE OR GRIP ON WHAT NEEDED TO BE DONE TO SAVE THE COMPANY SAYS DWIGHT WHITE WHO HAD SUCCEEDED TRAVERS BELL AS THE FIRM'S PRESIDENT WHEN MR WHITE RECOMMENDED INCREASING THE FIRM'S CAPITAL LEVEL AND HIRING MORE PEOPLE TO REASSURE CLIENTS IN THE WAKE OF MR BELL'S DEATH THE BELL CHILDREN REFUSED WHENEVER WE DISAGREED ABOUT AN ISSUE I WOULD HEAR IT'S MY COMPANY' SO I LEFT SAYS MR WHITE A ONETIME PITTSBURGH STEELERS STAR FROM DANIELS & BELL HE WENT TO WR LAZARD & CO A BLACKOWNED INVESTMENT BANKING FIRM TAKING WITH HIM A NUMBER OF CUSTOMERS BESIDES LOSING CLIENTS THROUGH EXECUTIVE DEPARTURES DANIELS & BELL LOST SOME THROUGH ONE OF DARRYL'S MOVES IN INTERVIEWS WITH THE TRADE PRESS HE ABRUPTLY ANNOUNCED THAT DANIELS & BELL WAS PLANNING TO MOVE OUT OF THE MUNICIPALBOND BUSINESS TO CONCENTRATE ON MONEY MANAGEMENT AS IT TURNED OUT MONEY MANAGEMENT NEVER TOOK OFF AND DARRYL'S PROCLAMATION SERIOUSLY UNDERMINED THE FIRM'S CREDIBILITY AS A MUNICIPALBOND UNDERWRITER LAST YEAR THE FIRM PARTICIPATED IN 200 MILLION OF MUNICIPALBOND UNDERWRITINGS DOWN FROM 4 BILLION THE YEAR MR BELL DIED DARRYL BELL TOOK SOME STEPS TO CONTROL EXPENSES INCLUDING FIRING SOME EMPLOYEES HE BELIEVED WERE CHEATING THE FIRM HE ALSO BOOTED HIS STEPMOTHER OUT OF THE PARK AVENUE APARTMENT WHOSE RENT THE COMPANY HAD BEEN PAYING ALTHOUGH DARRYL CALLED THIS A COSTCUTTING STEP LAURA BELL CONTENDS IT WAS A VINDICTIVE MOVE TAKEN BECAUSE DARRYL DIDN'T LIKE HER WHILE CUTTING SOME COSTS DARRYL USED HIS CORPORATE AMERICAN EXPRESS CARD TO PAY FOR CLOTHES JEWELRY EVEN THE RENT FOR HIS LOS ANGELES HOUSE ACCORDING TO COURT TESTIMONY DARRYL BELL'S ATTORNEY MR BACKER SAYS HIS CLIENT REIMBURSED THE ESTATE FOR PERSONAL CHARGES BUT AN ATTORNEY FOR LAURA BELL WHO SUED THE ESTATE OVER A 250000 PAYMENT SHE SAYS SHE NEVER RECEIVED UNDER THE PRENUPTIAL AGREEMENT SAYS HE NEVER REPAID TENS OF THOUSANDS IN PERSONAL EXPENSES MEANWHILE HAVING ALREADY PUT HIS SISTER ON THE PAYROLL HE NOW PLACED HIS MOTHER ON IT PAYING HER A HEFTY SALARY TO HELP RUN DANIELS & BELL AS WELL AS THE ESTATE'S CHOCOLATE COMPANY TODAY THE FIRM IS EKING OUT REVENUE OF ABOUT 1 MILLION A YEAR BY OPERATING AS A TWODOLLAR BROKER OR FREELANCE TRADING FIRM EXECUTING TRADES FOR OTHER STOCK EXCHANGE MEMBERS WHEN THEIR OWN FLOOR BROKERS ARE ESPECIALLY BUSY OF THE 23 PEOPLE WHO WORKED AT THE FIRM WHEN TRAVERS BELL DIED FEWER THAN 10 REMAIN AS FOR TRAVERS BELL'S OTHER BUSINESSES FREEDOM NATIONAL BANK IN WHICH HE WAS THE MAJOR SHAREHOLDER WAS TAKEN OVER BY FEDERAL REGULATORS THREE YEARS AFTER MR BELL'S DEATH AND COCOLINE CHOCOLATE CO ENTERED CHAPTER 11 BANKRUPTCY PROCEEDINGS LAST YEAR MR BELL'S WIDOW LAURA BELL AND TWO OF HIS SISTERS JOANNE WALKER AND KAREN BELL MCCLEARIN FILED SUIT IN SUPERIOR COURT IN NEW JERSEY AGAINST DARRYL BELL AND HIS GRANDFATHER THE COEXECUTOR OF THE WILL ALONG WITH DARRYL THEY CHARGED THAT THE TWO MEN HAD MISMANAGED THE COMPANY AND MISAPPROPRIATED ITS FUNDS AND ASKED THAT NEW EXECUTORS BE NAMED AND THAT DARRYL AND HIS GRANDFATHER REPLENISH 5 MILLION THAT THE WOMEN SAID HAD SOMEHOW DISAPPEARED FROM THE ESTATE BUT JUDGE REGINALD STANTON RULED AGAINST THE WOMEN ATTRIBUTING THE DWINDLING OF THE ESTATE'S ASSETS TO FOOLISHNESS RATHER THAN WRONGDOING AT THE END OF A RECENT SIXMONTH TRIAL TO DETERMINE THE DISPOSITION OF THE ESTATE JUDGE STANTON DETERMINED THAT ITS VALUE HAD FALLEN TO A LITTLE MORE THAN 1 MILLION CONSIDERABLY LESS THAN THE AMOUNT OF ITS LIABILITIES ORDERING THE SALE OF ALL REMAINING ASSETS HE DECLARED THE ESTATE INSOLVENT THIS ESTATE HAS TURNED OUT TO BE A DISASTER JUDGE STANTON SAID IT IS ALL VERY REGRETTABLE DARRYL BELL'S ATTORNEY MR BACKER SAYS DARRYL AND RHONDA HAVE LEARNED THE HARDEST LESSON OF THEIR LIFE HOW HARD IT IS TO HOLD ON TO A FORTUNE MR BACKER SAYS DARRYL IS WORKING ON A PLAN TO SAVE THE COMPANY IF THAT DOESN'T WORK DARRYL BELL COULD FIND HIMSELF WITH EVEN LESS TO DO LAST WEEK NBC CANCELED A DIFFERENT WORLD SEE RELATED LETTER LETTERS TO THE EDITOR UNFAIR LURID ACCOUNT OF A WALL STREET PIONEER WSJ JULY 9 1993 9305110017 YY93 MM07 9307080123 930625 LETTERS TO THE EDITOR HUM A FEW BARS IN ADDITION TO BEING PART OF JAPAN'S FIRST LARGESCALE OVERSEAS MILITARY FORAY SINCE WORLD WAR II IN CAMBODIA SGT HIDEKI YAMAZAKI INTERNATIONAL PAGE JUNE 1 IS MAKING HISTORY WITH THE DISCOVERY OF BEETHOVEN'S PIANO CONCERTO NO 6 HITHERTO THE WORLD OF MUSIC KNEW ONLY FIVE IN AN EFFORT TO ACHIEVE GENDER BALANCE WILL THIS ONE BE NAMED THE EMPRESS SEE RELATED LETTER LETTERS TO THE EDITOR BEETHOVEN'S LATEST WSJ JULY 8 1993 9306250002 YY93 MM07 9307080113 930623 RULE OF LAW IF A GRIZZLY ATTACKS DROP YOUR GUN BY IKE C SUGG THANKS TO THE ENDANGERED SPECIES ACT WE CAN NOW ADD GRIZZLY BEARS TO THE LIST OF THOSE WHO CAN GET AWAY WITH MURDER UNDER OUR CRIMINAL JUSTICE SYSTEM THAT IS EFFECTIVELY THE RULE DECIDED IN US FISH AND WILDLIFE SERVICE V SHULER HANDED DOWN IN MARCH BY AN INTERIOR DEPARTMENT ADMINISTRATIVE LAW JUDGE AND DEFENDED THIS MONTH BY THE DEPARTMENT COUNSEL THE SHULER DECISION ESTABLISHES A CHILLING PRECEDENT IN THE ENDANGERED SPECIES ACT'S LONG HISTORY OF URSINE USURPATIONS IT ALL BEGAN IN 1986 WHEN JOHN SHULER AND HIS WIFE BOUGHT A PIECE OF LAND NEAR DUPUYER MONT STOCKED IT WITH SHEEP AND BEGAN LIFE ON THEIR NEW RANCH IN THE SUMMER OF 1989 THE SHULERS LOST APPROXIMATELY 1200 WORTH OF SHEEP TO URSUS ARCTOS HORRIBILIS MORE COMMONLY KNOWN AS THE GRIZZLY BEAR THE GRIZZLY HAS BEEN LISTED AS THREATENED UNDER THE ENDANGERED SPECIES ACT SICE 1975 THE ACT EXPRESSLY PROHIBITS PRIVATE CITIZENS FROM TAKING LISTED SPECIES ACCORDING TO THE ACT TO TAKE MEANS TO HARM HARASS PURSUE HUNT SHOOT WOUND KILL TRAP CAPTURE OR COLLECT OR TO ATTEMPT TO ENGAGE IN ANY SUCH CONDUCT THUS UNDER THE LAW THE SHULERS COULD DO NOTHING TO STOP THE MARAUDING BEARS MR SHULER DISCOVERED THE FIRST DEAD SHEEP ON AUG 20 REPEATED ATTEMPTS BY THE GOVERNMENT TO STOP THE BEARS RANGING FROM SETTING TRAPS AND AVERSIVE CONDITIONING TO THE USE OF HELICOPTERS FAILED RUNNING OUT OF PATIENCE AND SHEEP MR SHULER SOON HAD MORE THAN HE COULD WELL BEAR ON THE NIGHT OF SEPT 9 HE THOUGHT HE SAW A GRIZZLY RUNNING ALONG THE YARD FENCE PAST HIS LIVING ROOM WINDOW HE RACED BAREFOOT OUT OF THE HOUSE WEARING ONLY HIS UNDERWEAR AND TOTING A RIFLE THREE BEARS CHARGED THROUGH HIS FLOCK SOME 30 FEET AWAY MR SHULER FIRED AT THEM AT WHICH POINT A FOURTH BEAR TAG 53/54 APPEARED FROM THE DARKNESS AND TURNED TO ATTACK HIM MR SHULER SHOT FOR THE THROAT THE NEXT DAY EXPECTING TO FIND A DEAD BEAR MR SHULER INSTEAD FOUND A BEAR STILL VERY MUCH ALIVE IT REARED UP ON ITS HAUNCHES AND HEADED TOWARD MR SHULER WHO FEARING FOR HIS LIFE SHOT IT AFTER FALLING DOWN THE BEAR GOT BACK UP AND WAS SHOT AGAIN SKIDDING INTO THE BRUSH WITHIN 50 FEET OF MR SHULER THE INTERIOR DEPARTMENT ASSESSED MR SHULER A 7000 PENALTY FOR TAKING BEAR 53/54 IN VIOLATION OF THE ENDANGERED SPECIES ACT AT THE HEARING MOUNTAIN STATES LEGAL FOUNDATION WHICH IS REPRESENTING MR SHULER ARGUED THAT TAKING THE BEAR WAS PERMISSIBLE UNDER THE ACT'S SELFDEFENSE CLAUSE THE INTERIOR DEPARTMENT JUDGE HOWEVER RULED THAT MR SHULER WAS NOT ACTUALLY DEFENDING HIS LIFE BUT HIS PROPERTY AN ACT THAT IS NOT PERMITTED UNDER THE ENDANGERED SPECIES ACT THIS IS NOT THE FIRST TIME A MONTANA RANCHER HAS CHALLENGED THE ENDANGERED SPECIES ACT ON SUCH GROUNDS MR SHULER'S ORIGINAL PREDICAMENT EITHER KILL THE BEAR TO PROTECT HIS PROPERTY AND FACE CRIMINAL CHARGES OR ELSE SUFFER UNCOMPENSATED PROPERTY LOSSES WAS IDENTICAL TO THAT OF RICHARD P CHRISTY IN 1982 MR CHRISTY WAS ALSO FINED FOR KILLING A GRIZZLY BEAR IN VIOLATION OF THE ACT BEFORE BEARS DROVE HIM OUT OF THE SHEEPRANCHING BUSINESS MR CHRISTY APPEALED THE INTERIOR DEPARTMENT'S FINE THE NINTH CIRCUIT DENIED HIS CLAIM THAT HE HAD SUFFERED AN UNCONSTITUTIONAL TAKING OF HIS PRIVATE PROPERTY ON THE GROUNDS THAT THE GOVERNMENT IS NOT RESPONSIBLE FOR DAMAGES CAUSED BY WILD ANIMALS BECAUSE IT DOES NOT OWN SUCH ANIMALS MR CHRISTY APPEALED TO THE SUPREME COURT WHICH REFUSED TO HEAR HIS CASE IN DISSENTING FROM THE COURT'S DENIAL OF CERTIORARI JUSTICE BYRON WHITE NOTED THAT A MAN'S RIGHT TO DEFEND HIS PROPERTY HAS LONG BEEN RECOGNIZED AT COMMON LAW HE WROTE PERHAPS A GOVERNMENT EDICT BARRING ONE FROM RESISTING THE LOSS OF HIS PROPERTY IS THE CONSTITUTIONAL EQUIVALENT OF TAKING SUCH PROPERTY IN THE FIRST PLACE JUSTICE WHITE REASONED THAT IF A FEDERAL STATUTE AUTHORIZED PARK RANGERS TO COME AROUND AT NIGHT AND TAKE PETITIONER'S LIVESTOCK TO FEED THE BEARS SUCH A GOVERNMENTAL ACTION WOULD CONSTITUTE A TAKING' HE POSITED AN ANALOGY IF THE GOVERNMENT DECIDED IN LIEU OF THE FOOD STAMP PROGRAM TO ENACT A LAW BARRING GROCERY STORE OWNERS FROM HARASSING HARMING OR PURSUING' PEOPLE WHO WISH TO TAKE FOOD OFF GROCERY STORE SHELVES WITHOUT PAYING FOR IT SUCH A LAW MIGHT WELL BE SUSPECT UNDER THE FIFTH AMENDMENT FOR SIMILAR REASONS THE ESA MAY BE SUSPECT AS APPLIED IN PETITIONER'S CASE MR SHULER'S CASE IS ON APPEAL AT THE INTERIOR DEPARTMENT AND THERE IS A SLIM CHANCE IT COULD EVENTUALLY REACH THE SUPREME COURT WITH JUSTICE WHITE'S RETIREMENT THIS TERM IT IS UNFORTUNATE THAT HE WILL NOT HAVE THE OPPORTUNITY TO ARGUE THESE POINTS AGAIN SHOULD THEY COME BEFORE THE COURT THE ENDANGERED SPECIES ACT IS A CLASSIC EXAMPLE OF A REGULATION THAT HAS IN THE WORDS OF OLIVER WENDELL HOLMES GONE TOO FAR IT VIOLATES WHAT THE SUPREME COURT IN 1960 HELD WAS ONE OF THE PRINCIPAL RATIONALES FOR THE TAKINGS CLAUSE NAMELY TO BAR GOVERNMENT FROM FORCING SOME PEOPLE ALONE TO BEAR PUBLIC BURDENS WHICH IN ALL JUSTICE AND FAIRNESS SHOULD BE BORNE BY THE PUBLIC AS A WHOLE TODAY AMERICANS WHO LIVE IN RURAL AREAS CONSTITUTE A MINORITY THE 90 OF AMERICANS WHO ARE URBANITES MAY WELL PUT A HIGH VALUE ON PROTECTING IMPERILED WILDLIFE BUT UNLIKE MR SHULER THEY DO NOT PAY THE PRICE OF PROVIDING THAT WILDLIFE WITH HABITAT MUCH LESS FEEDING IT WITH THEIR LIVESTOCK THIS IS A BURDEN PLACED ON THE RURAL MINORITY WHOSE PROPERTY OFTEN IS UNFAIRLY TAKEN BY GOVERNMENT TO SATISFY THE AESTHETIC PREFERENCES OF THE URBAN MAJORITY IF THE ENDANGERED SPECIES ACT IS TO REMAIN A VALID PUBLIC POLICY THE PUBLIC AS A WHOLE SHOULD BEAR THE COST OF THE BURDENS IT IMPOSES ON THE RURAL MINORITY MR SUGG IS A FELLOW IN ENVIRONMENTAL STUDIES AT THE COMPETITIVE ENTERPRISE INSTITUTE IN WASHINGTON SEE RELATED LETTERS LETTERS TO THE EDITOR THE BEAR FACTS OF SHEEP RANCHING WSJ JULY 8 1993 9306230097 YY93 MM07 9307080101 930604 THE FIRES NEXT TIME BY MICAH MORRISON FIVE YEARS AGO THIS MONTH A LIGHTNING STRIKE IN A REMOTE STAND OF LODGEPOLE PINE NORTH OF YELLOWSTONE NATIONAL PARK IGNITED THE STORM CREEK FIRE THE EVENT MARKED THE OPENING OF ONE OF THE WORST FIRE SEASONS IN MODERN US HISTORY BUT THE YELLOWSTONE FIRES WERE MORE THAN MERELY BAD BLAZES IN A DRY SEASON THEY WERE A DIRECT RESULT OF ECOSYSTEM MANAGEMENT A POLICY PRESIDENT CLINTON INTERIOR SECRETARY BRUCE BABBITT AND THE ENVIRONMENTAL MOVEMENT NOW WANT TO EXPAND TO VAST AREAS OF THE COUNTRY SINCE THE 1940S SCIENTISTS HAVE BEEN DRAWN TO THE IDEA OF SELFCONTAINED ECOSYSTEMS WHERE NATURE MIGHT FIND ITS OWN BALANCE OF GROWTH AND DECAY IF LEFT ALONE BY MAN IN THE VIEW OF ITS PROPONENTS AN ECOSYSTEM IS A NATURALLY REGULATED ENTITY THAT IS LARGELY INDEPENDENT FOR SCIENTISTS THE STICKING POINT COMES IN DRAWING BOUNDARIES HOW BIG IS AN ECOSYSTEM OPINIONS DIFFER IT COULD BE AS SMALL AS A POND SOME SEE IT AS BIG AS YELLOWSTONE NATIONAL PARK AND THE MULTIMILLIONACRE LAND MASS SURROUNDING IT GREATER YELLOWSTONE ECOSYSTEM OTHERS HAVE SUGGESTED THAT AN ENTIRE CONTINENT OR EVEN THE PLANET ITSELF MIGHT BE SEEN AS AN ECOSYSTEM BY THE LATE 1960S A NEW GENERATION OF ENVIRONMENTALISTS HAD EMBRACED THE ECOSYSTEM IDEA EVEN THOUGH IT WAS STILL BEING DEBATED IN SCIENTIFIC CIRCLES THEY BEGAN MOVING IT INTO THE REALMS OF PUBLIC POLICY AND POPULAR CULTURE NATURAL REGULATION A HANDSOFF ATTITUDE TO WILDLANDS BECAME THE GUIDING TENET FOR MANAGEMENT PRACTICES AT THE NATIONAL PARKS AND PARTS OF OTHER FEDERAL AND STATE LANDS NATURAL PROCESSES SUCH AS LIGHTNINGCAUSED FIRE WOULD BE PRESERVED THE LEOPOLD REPORT THE ECOSYSTEM IDEA BEGAN ITS JOURNEY TO THE CENTER OF WILDLAND POLICY WITH A 1963 REPORT PUBLISHED BY AN INTERIOR DEPARTMENT COMMISSION CHAIRED BY A STARKER LEOPOLD SON OF FAMED CONSERVATIONIST ALDO LEOPOLD SOON THE LEOPOLD REPORT WOULD BECOME FAMOUS AS WELL IT RECOMMENDED THAT THE GOAL OF THE NATIONAL PARKS AND BY EXTENSION ALL WILDLANDS UNDER STATE AND FEDERAL CONTROLSHOULD BE TO CREATE A VIGNETTE OF PRIMITIVE AMERICA FIRE WAS A PART OF PRIMITIVE AMERICA AND ITS ROLE WAS TO BE PRESERVED BY 1972 YELLOWSTONE NATIONAL PARK TAKING THE LEAD IN ECOSYSTEM MANAGEMENT HAD CRAFTED A MAJOR FIREMANAGEMENT PLAN THAT ALLOWED MANY NATURALLY CAUSED FIRES TO BURN THE BASIC TENET OF WILDLAND FIREFIGHTING WAS SHIFTING AWAY FROM A POLICY OF TOTAL FIRE SUPPRESSION REVISED IN 1975 AND 1987 YELLOWSTONE'S OFFICIAL FIRE MANAGEMENT PLAN PLACED VIRTUALLY ALL OF THE PARK IN A NATURAL FIRE ZONE THE PLAN SURVIVES TO THIS DAY ALTHOUGH WITH SIGNIFICANT MODIFICATIONS IN THE WAKE OF THE MASSIVE 1988 BLAZES THE PLAN WAS AND REMAINS VERY MUCH THE CHILD OF THE LEOPOLD REPORT AND THE ECOSYSTEM IDEA ITS PRIMARY OBJECTIVE AS STATED IN THE 1987 REVISION IS TO PERMIT AS MANY LIGHTNINGCAUSED FIRES AS POSSIBLE TO BURN AND BURN THEY DID ON JULY 12 1988 FOR EXAMPLE THE TINY CLOVER FIRE THEN ESTIMATED AT ABOUT 150 ACRES WAS ALLOWED TO BURN IN ACCORDANCE WITH THE PLAN FIRE IS A NATURAL PROCESS NOTED THE YELLOWSTONE FIRE COMMITTEE IN ITS ANALYSIS OF THE FIRE THAT DAY AND THE CLOVER FIRE SHOULD BE ALLOWED TO BURN NATURALLY WITHIN THE PARK BY THE END OF THE SEASON THE BLAZE HAD MERGED WITH THE MIST FIRE AND TRACKED ACROSS 387000 ACRES THE FIRST FIRE OF THE 1988 SEASON STORM CREEK DISCOVERED AS A 10ACRE BLAZE ALSO WAS ALLOWED TO BURN VIRTUALLY UNATTENDED FOR WEEKS BOTH FIRES WERE MONITORED OBSERVED BY FOOT PATROLS PLANES AND FIRE TOWERS BUT NO EARLY ACTION WAS TAKEN AGAINST THEM THE STORM CREEK FIRE LIKE THE CLOVER FIRE WAS TREATED AS A NATURAL PART OF THE ECOSYSTEM THIS WAS THE CASE EVEN THOUGH STORM CREEK WAS BURNING IN THE TERRITORY OF THE MORE TRADITIONAL FOREST SERVICE WHICH TENDED TO OPPOSE THE LETBURN POLICY BUT SINCE STORM CREEK WAS BURNING IN A DESIGNATED WILDERNESS AREA WITHIN THE CUSTER NATIONAL FOREST THE FOREST SERVICE DECIDED TO LET IT CONTINUE BY THE END OF THE SUMMER THE STORM CREEK FIRE HAD NATIONAL FIRE EXPERTS BAFFLED AS IT SWEPT SOUTH OVER 100000 ACRES MOVED INTO YELLOWSTONE NATIONAL PARK AND THREATENED THE TINY MOUNTAIN HAMLETS OF SILVER GATE AND COOKE CITY MONT AT THE SAME TIME THAT THE ECOSYSTEM POLICIES WERE BEING PHASED IN ENVIRONMENTAL THINKERS WERE DEVELOPING A PHILOSOPHY TO ACCOMPANY THEM THEY SAW MODERN INDUSTRIAL MAN AS PART OF THE PROBLEM NOT THE SOLUTION BOTH THE PHILOSOPHY AND THE POLICY ADVOCATED THE WITHDRAWAL OF MANKIND FROM WILDERNESS AREAS SO THAT THE ECOSYSTEM COULD PROPERLY FUNCTION AS THE CONSERVATIONIST ALSTON CHASE SUGGESTED IN HIS GROUNDBREAKING STUDY PLAYING GOD IN YELLOWSTONE THE ECOSYSTEM PARADIGM HAS BECOME A QUASIMYSTICAL IDEA SHIFTING OUT OF THE REALM OF RIGOROUS SCIENTIFIC INQUIRY AND INTO THE CULTURE WITHOUT SERIOUS CHALLENGE IN 1988 YELLOWSTONE PAID THE PRICE FOR ECOSYSTEM MANAGEMENT AS FIRES PLAYED OUT THEIR NATURALLY REGULATING ROLE IN THE ECOSYSTEM THE BLAZES EVENTUALLY COVERED 12 MILLION ACRES COST THE TAXPAYER 120 MILLION AND LED TO THREE DEATHS TODAY THE CLINTON ADMINISTRATION WANTS TO EXTEND THE ECOSYSTEM MODEL AT HOME AND ABROAD THE PRESIDENT HAS SAID THAT HE WILL SIGN THE INTERNATIONAL BIODIVERSITY TREATY TRUMPETED AT LAST YEAR'S EARTH SUMMIT A PACT THAT CALLS FOR THE PROTECTION OF ENTIRE ECOSYSTEMS AND TAKING STEPS TO RESTORE DEGRADED ECOSYSTEMS AT HOME SECRETARY BABBITT HAS SAID HE WILL TAKE AN ECOSYSTEMMANAGEMENT APPROACH TO THE TIMBER CONTROVERSY IN THE PACIFIC NORTHWEST TO DISPUTES OVER DEVELOPMENT IN SOUTHERN CALIFORNIA AND TO THE FLORIDA EVERGLADES WHICH HE CALLED A DYING ECOSYSTEM THE POLITICIANS' WORK IS FUELED BY ACTIVISTS WHO APPROACH THESE ISSUES WITH THE ZEAL OF RELIGIOUS WARRIORS IN 1988 THOMAS MCNAMEE A LEADER OF A GROUP KNOWN AS THE GREATER YELLOWSTONE COALITION WROTE WE'RE ON THE FRONT LINES EVERY DAY BEATING BACK TIMBER SALES HEADING OFF OIL WELLS FIGHTING NEW ROADS WE ARE GOING TO SAVE THE GREATER YELLOWSTONE ECOSYSTEM THE GYC ORIGINALLY DEFINED THE GREATER YELLOWSTONE ECOSYSTEM AS AN AREA OF SIX MILLION ACRES TODAY IT DEFINES IT AS 18 MILLION TO 20 MILLION ACRES IN THE EXPANSIONIST VIEW OF THESE ENVIRONMENTALISTS SALVATION NOW INVOLVES CREATING AN ENORMOUS BIOREGION OF PRESERVED ECOSYSTEMS COVERING PARTS OF FIVE STATES WYOMING MONTANA IDAHO WASHINGTON AND OREGON IT WOULD STRETCH ACROSS AT LEAST 40 MILLION ACRES LINKED BY HUNDREDS OF MILES OF BIOLOGICAL CONNECTING CORRIDORS THE GREATER YELLOWSTONE ECOSYSTEM WOULD BE ONE OF THE ANCHORS TED TURNER WHO HAS A HOME NEAR YELLOWSTONE NATIONAL PARK IS A BACKER OF THE GYC AND THE BIOREGION IDEA FURTHER TO THE SOUTH FROM A BASE IN ARIZONA FORMER EARTH FIRST LEADER DAVID FOREMAN AND OTHERS HAVE MOUNTED THE WILDLANDS PROJECT WHICH CALLS FOR ALLOWING THE RECOVERY OF WHOLE ECOSYSTEMS AND LANDSCAPES IN EVERY REGION OF NORTH AMERICA SECRETARY BABBITT ALONG WITH PRESIDENT CLINTON HAS SAID HE WANTS TO FIND A BALANCE BETWEEN ENVIRONMENTAL AND ECONOMIC CONCERNS TO ACHIEVE THAT BALANCE THE PRESIDENT MUST BEGIN REDEFINING THE ECOSYSTEM PARADIGM ARGUING FOR MANKIND'S PROPER ROLE AS A WISE STEWARD OF THE LAND NOT AS AN ENEMY OF ITS NATURAL FUNCTIONS AND PART OF WISE STEWARDSHIP MEANS SOMETIMES PROTECTING THE FOREST FROM ITS NATURAL ENEMY FIRE WISE USE ALSO MEANS RULING IN FAVOR OF JOBS OVER SPOTTED OWLS IN THE PACIFIC NORTHWEST AND IN FAVOR OF MIDDLECLASS DEVELOPMENT OVER GNATCATCHING BIRDS IN SOUTHERN CALIFORNIA THE PRESIDENT SHOULD START BY DOING TWO THINGS FIRST HE SHOULD INVITE A NEW SET OF FACES IN PARTICULAR CONSERVATIONIST ALSTON CHASE TO MEANINGFUL FORUMS IN WASHINGTON TO OFFER VIEWS ON BOTH THE PROMISES AND PITFALLS OF ECOSYSTEM MANAGEMENT MR CHASE HAS SUFFERED THE WRATH OF THE ENVIRONMENTAL MOVEMENT FOR HIS INDEPENDENT THINKING ON ECOSYSTEMS AND OTHER MATTERS BUT HIS IS A VOICE MR BABBITT NEEDS TO HEAR SECOND THE PRESIDENT SHOULD APPOINT A COMMISSION AIDED BY THE NATIONAL SCIENCE FOUNDATION TO SEPARATE FACT FROM FANCY IN THE ECOSYSTEMMANAGEMENT APPROACH AT YELLOWSTONE IN 1988 THERE WERE NO CHECKS ON THE ECOSYSTEM APPROACH AND HUGE FIRES RACED ACROSS THE LAND UNLESS WE REDEFINE THE ECOSYSTEM MODEL THE FIRES NEXT TIME WILL BE MUCH WORSE MR MORRISON IS SENIOR EDITOR OF INSIGHT MAGAZINE HIS BOOK FIRE IN PARADISE THE YELLOWSTONE FIRES AND THE POLITICS OF ENVIRONMENTALISM WILL BE PUBLISHED BY HARPERCOLLINS IN JULY SEE RELATED LETTER LETTERS TO THE EDITOR WISE STEWARDSHIP' DEVASTATED FORESTS WSJ JULY 8 1993 9306040188 YY93 MM07 9307080029 930629 FOREIGN EXCHANGE DOLLAR ENDS FLAT TO WEAKER IN MARKET DOMINATED MAINLY BY TECHNICAL FACTORS BY RICHARD SCHUMACHER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOLLAR ENDED FLAT TO WEAKER MONDAY IN TRADING DOMINATED LARGELY BY TECHNICAL FACTORS TRADERS SAID THE MARKET IGNORED TOKYO MUNICIPAL ELECTION RESULTS ANNOUNCED SUNDAY NOTING THAT THEY FAILED TO PROVIDE A CLEAR SIGNAL ABOUT THE PROBABLE FATE OF JAPAN'S EMBATTLED LIBERAL DEMOCRATIC PARTY OR LDP LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16960 MARKS DOWN FROM 17055 MARKS LATE FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10625 YEN LITTLE CHANGED FROM 10620 YEN STERLING WAS TRADING AT 14965 UP FROM 14765 ABOUT MIDDAY TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10620 YEN AND AT 16978 MARKS ALTHOUGH THE DOLLAR ENDED ESSENTIALLY FLAT AGAINST THE YEN MONDAY THE US CURRENCY FELL AT THE BEGINNING OF ASIAN TRADING IN WHAT TRADERS SAID WAS A CONTINUED BOUT OF PROFIT TAKING FROM ITS RAPID ASCENT LAST WEEK THE DOLLAR'S SHARP ADVANCE LAST WEEK WAS SPARKED BY THE SPLINTERING OF THE LDP AFTER THE COLLAPSE OF PRIME MINISTER KIICHI MIYAZAWA'S GOVERNMENT TRADERS SAID THERE WAS A SIXYEN MOVE IN A VERY SHORT TIME AND THERE WAS BOUND TO BE SOME PROFIT TAKING SAID JACK GRIFFIN MANAGER OF CORPORATE FOREIGN EXCHANGE AT FUJI BANK LTD THE APPARENT LACK OF PROGRESS IN THE LATEST ROUND OF USJAPANESE TRADE TALKS ALSO PROVIDED A CONTINUED IMPETUS TO BUY YEN MR GRIFFIN SAID TWO DAYS OF TRADE TALKS ENDED IN TOKYO MONDAY WITH OFFICIALS FROM BOTH SIDES SAYING THEY HAD BEEN UNABLE TO ACHIEVE A NEW FRAMEWORK FOR BILATERAL ECONOMIC RELATIONS THE DEVELOPMENT IS LIKELY TO FOCUS NEW ATTENTION ON JAPAN'S GAPING TRADE SURPLUS WITH THE US AND THE APPARENT SUPPORT BY THE CLINTON ADMINISTRATION FOR A STRONG YEN TO RESTRAIN THE SURPLUS PARTICULARLY IF OTHER AVENUES ARE UNAVAILABLE TRADERS SAID BUT WHEN THE DOLLAR FELL BELOW 105 YEN COMING CLOSE TO ITS POSTWORLD WAR II INTRADAY LOW OF 10485 YEN THE BANK OF JAPAN WAS SAID TO HAVE INTERVENED TO STOP THE MOVE THE REPORTS SPARKED NEW DOLLAR BUYING PARTICIPANTS SAID AND THE US CURRENCY ROSE BACK TOWARD THE LEVELS AT WHICH IT HAD ENDED ON FRIDAY TOKYO MUNICIPAL ELECTIONS HELD SUNDAY FAILED TO AFFECT YEN TRADING MONDAY MR GRIFFIN SAID TRADERS SAID THE ELECTION RESULTS WERE DIFFICULT TO INTERPRET AND THIS CONTRIBUTED TO THEIR LACK OF IMPACT ALTHOUGH THE REFORMIST JAPAN NEW PARTY SCORED MAJOR GAINS THE LDP NOT ONLY HELD ITS GROUND BUT PICKED UP TWO ADDITIONAL SEATS IN THE 128MEMBER CITY ASSEMBLY TRADERS HAD SAID THE DOLLAR MIGHT GAIN STRENGTH IF THE TOKYO RESULTS SEEMED TO SUGGEST THE LDP WILL FACE HEAVY LOSSES IN THE NATIONAL ELECTIONS SET FOR JULY 18 BUT ACCORDING TO MR GRIFFIN A CONSENSUS IS EMERGING IN THE MARKET THAT IT DOESN'T MATTER WHO THE POLITICIANS ARE IT'S THE BUREAUCRATS WHO RUN JAPAN AND THEY DON'T GET ELECTED IF THIS VIEW DOES TAKE HOLD IT WILL SERVE TO MUTE THE SENSE OF POLITICAL INSTABILITY THAT LED TO THE DOLLAR'S GAINS ON THE YEN LAST WEEK PLAYERS SAID THE DOLLAR FINISHED LOWER AGAINST MOST EUROPEAN CURRENCIES MONDAY TRADERS SAID WIDESPREAD RUMORS THAT GERMANY'S BUNDESBANK HAD SOLD DOLLARS AROUND 17150 MARKS WERE KEY TO THE US CURRENCY'S DECLINES 9307080017 930621 LAW LEGAL BEAT INHOUSE ATTORNEYS WIN JOB PROTECTION BY AMY STEVENS STAFF REPORTER OF THE WALL STREET JOURNAL INHOUSE LAWYERS IN CALIFORNIA HAVE WON AN UNUSUAL JOB PROTECTION THEY CAN SUE THEIR CLIENTS FOR DISMISSING THEM CORPORATE COUNSEL TYPICALLY ARE TREATED MORE LIKE OUTSIDE COUNSEL WHO CAN BE DISMISSED BY A CLIENT AT WILL THAN LIKE REGULAR EMPLOYEES WHO HAVE WIDERANGING WORKPLACE RIGHTS BUT A CALIFORNIA APPEALS COURT RULED THAT A FORMER ASSOCIATE GENERAL COUNSEL AT GENERAL DYNAMICS CORP CAN SUE FOR WRONGFUL TERMINATION THE LAWYER ALLEGED THAT HE WAS FIRED AFTER QUESTIONING THE LEGALITY OF A COMPANY POLICY THE APPEALS COURT IN SAN BERNARDINO SAID A RULE WHICH MAKES IT SAFER AS A MATTER OF EMPLOYMENT OR FINANCIAL SECURITY FOR AN INHOUSE LAWYER TO OBJECT TO OR REPORT VIOLATIONS OF PUBLIC POLICY SERVES THE PUBLIC INTEREST THE HANDFUL OF COURTS THAT HAVE ADDRESSED THE ISSUE GENERALLY HAVE DECLINED TO MEDDLE WITH THE RIGHT OF A CLIENT TO DISMISS AN ATTORNEY THE ILLINOIS SUPREME COURT FOR INSTANCE RULED IN 1991 THAT LAWYERS DON'T NEED PROTECTION FROM UNFAIR FIRINGS BECAUSE THEY ARE ETHICALLY BOUND TO REPORT A CLIENT'S WRONGDOING THE CALIFORNIA PANEL HOWEVER SAID IN ITS DECISION EARLIER THIS MONTH THAT IT DISAGREED WITH THE ILLINOIS COURT THE ILLINOIS DECISION WOULD APPARENTLY DENY TO ANY ATTORNEY THE RIGHTS PROVIDED BY LAW TO OTHER EMPLOYEES SIMPLY BECAUSE THE STATE HAS IMPOSED ON THE ATTORNEYEMPLOYEE AN ETHICAL OBLIGATION NOT SHARED BY NONATTORNEY EMPLOYEES THE COURT SAID A NEW JERSEY APPEALS COURT IN 1989 RULED SIMILARLY TO THE CALIFORNIA COURT BUT ON THE BASIS OF THAT STATE'S WHISTLEBLOWER LAW WHICH PROTECTS WORKERS WHO REPORT EMPLOYERS' WRONGDOING THE RULE TRADITIONALLY GIVING CLIENTS AN UNFETTERED RIGHT TO FIRE LAWYERS IS ROOTED IN THE IDEA THAT CLIENTS WON'T BE FORTHCOMING WITH ATTORNEYS THEY DISLIKE BUT THE CALIFORNIA COURT SAID THAT THE RULE INVOLVES MORE PERSONAL RIGHTS THAN THOSE AT STAKE WHEN THE CLIENT IS A CORPORATION THE DECISION WAS CLASSIFIED BY THE COURT AS NOT FOR PUBLICATION AS ARE THE MAJORITY OF CALIFORNIA'S APPELLATE DECISIONS MEANING IT CAN'T BE CITED AS PRECEDENT STILL LEGAL SPECIALISTS WHO FOLLOW THE ISSUE SAY THE RULING IS LIKELY TO INFLUENCE OTHER COURTS IN THE CASE ANDREW D ROSE CLAIMED HE WAS FIRED AFTER TELLING HIS SUPERIORS AT A FORMER GENERAL DYNAMICS DIVISION THAT PORTIONS OF PARENT'S PAY POLICY APPEARED TO VIOLATE FEDERAL EMPLOYMENT LAW AND THEN REFUSING TO SIGN OFF ON A LETTER TO THE COMPANY'S AUDITORS INVOLVING THE POLICY HIS LAWYER S MYRON KLARFELD OF SAN DIEGO SAID MR ROSE WAS FACED WITH EITHER DOING WHAT HIS EMPLOYER SAYS HE MUST DO OR HE'S OUT THE DOOR GENERAL DYNAMICS' OUTSIDE LAWYER IN THE CASE JACK H HALGREN SAID MR ROSE DIFFERED WITH THE CLIENT ON LEGAL MATTERS WHICH DID NOT INVOLVE HIS BEING ASKED TO PARTICIPATE IN OR CONDONE ILLEGAL ACTIVITY JUST STRAIGHTFORWARD ISSUES THAT COME UP EVERY DAY HE SAID THE FALLS CHURCH VA AEROSPACE COMPANY IS CONSIDERING ASKING THE STATE SUPREME COURT TO REVIEW THE DECISION THE RULING WAS WIDELY PRAISED BY LAWYERS WHO REPRESENT EMPLOYEES IN WORKPLACE DISPUTES THERE'S NO LEGITIMATE DISTINCTION THAT CAN BE MADE BETWEEN A LAWYER AND ANY OTHER SALARIED EMPLOYEE AND NO LEGITIMATE REASON FOR AN EMPLOYER TO BE ABLE TO HIDE WRONGFUL ACTS BY SAYING A LAWYER IS DIFFERENT FROM EVERYBODY ELSE SAID DAN STORMER A PASADENA EMPLOYMENT ATTORNEY STEPHEN GILLERS A PROFESSOR OF LEGAL ETHICS AT NEW YORK UNIVERSITY LAW SCHOOL SAID THE RULING ENSURES THE FREEDOM OF LAWYERS TO STAND UP TO MISBEHAVIOR BY CORPORATE EXECUTIVES ALTHOUGH THE APPELLATE COURT'S DECISION STRENGTHENED INHOUSE LAWYERS' RIGHTS SOME CORPORATE COUNSEL EXPRESSED CONCERN IT'S BAD FOR COMPANIES BECAUSE YOU CAN'T CRAM A LAWYER DOWN AN UNWILLING CLIENT'S THROAT IN THE WAY THAT YOU DO IF YOU PERMIT WRONGFUL DISCHARGE SUITS SAID PETER ZEUGHAUSER VICE PRESIDENT AND GENERAL COUNSEL OF THE IRVINE CO A NEWPORT BEACH CALIF REALESTATE COMPANY AND IT'S BAD FOR THE PROFESSION BECAUSE IT ENCOURAGES COMPANIES TO LOOK TO OUTSIDE LAWYERS ON SENSITIVE MATTERS THE AMERICAN CORPORATE COUNSEL ASSOCIATION THE INHOUSE BAR ORGANIZATION ADOPTED A POLICY STATEMENT TWO YEARS AGO OPPOSING WRONGFULTERMINATION SUITS BY ITS MEMBERS IN MOST INSTANCES SAYING THERE WAS AMPLE EVIDENCE FOR A JURY TO CONCLUDE ITS BRONCO II WAS UNSAFE A FEDERAL JUDGE UPHELD A 12 MILLION VERDICT AGAINST FORD MOTOR CO THE OPINION BY JUDGE THOMAS J MCAVOY IN BINGHAMTON NY REJECTED FORD'S POSTTRIAL MOTIONS TO OVERTURN THE VERDICT OR GET A NEW TRIAL FORD IS FACING MORE THAN 100 LAWSUITS NATIONWIDE ALLEGING THAT THE BRONCO II'S BOXY DESIGN MAKES IT PRONE TO ROLLOVERS A FORD SPOKESMAN SAID THE COMPANY IS REVIEWING THE OPINION AND CONTEMPLATING AN APPEAL FORD HAS REACHED OUTOFCOURT SETTLEMENTS IN MORE THAN 100 SUCH SUITS TYPICALLY WITH PROVISIONS THAT PROHIBIT PLAINTIFFS FROM DISCUSSING AMOUNTS OR TERMS BUT THE COMPANY ALSO HAS STEADFASTLY DEFENDED THE SAFETY RECORD OF THE VEHICLE WHICH WAS MANUFACTURED BETWEEN 1983 AND 1990 THE BINGHAMTON CASE IS SIGNIFICANT BECAUSE IT IS ONE OF ONLY TWO BRONCO II SUITS THAT HAVE BEEN TRIED AND THE ONLY ONE THAT FORD HAS LOST MOREOVER THE JUDGE RESOLVED SEVERAL ISSUES IN FAVOR OF PLAINTIFFS THAT LIKELY WILL COME UP IN FUTURE LITIGATION ACCORDING TO RUSSELL L COOK JR A HOUSTON LAWYER FOR THE PLAINTIFF AMONG OTHER THINGS JUDGE MCAVOY ALLOWED JURORS TO BE TOLD ABOUT MISSING INTERNAL DOCUMENTS REGARDING THE BRONCO II THAT FORD SAYS IT INADVERTENTLY DESTROYED AND HE LET THEM DRAW THEIR OWN CONCLUSIONS ABOUT WHETHER THE DOCUMENTS MIGHT HAVE BEEN INCRIMINATING ALTHOUGH NOT BINDING ON OTHER COURTS THE DECISION IS THE FIRST TO ADDRESS THAT ISSUE IN BRONCO II LITIGATION AND WILL BE CITED IN OTHER TRIALS MR COOK SAID THE SUIT STEMMED FROM AN ACCIDENT IN WHICH PLAINTIFF NANCY DENNY'S HAND WAS CRUSHED WHEN HER 1988 BRONCO II TIPPED OVER AFTER SHE SWERVED TO AVOID A DEER A JURY IN NOVEMBER AWARDED HER 3 MILLION BUT FOUND HER 60 AT FAULT THUS REDUCING HER AWARD UNDER NEW YORK LAW TO 12 MILLION FORD ARGUED AFTER THE TRIAL THAT THE VERDICT WAS INCONSISTENT BECAUSE THE JURY FOUND THAT THE BRONCO II WAS NOT DEFECTIVE YET DETERMINED THAT FORD BREACHED AN IMPLIED WARRANTY OF SAFETY BY MARKETING IT JUDGE MCAVOY RULED THAT THE TWO CLAIMS PRODUCT DEFECT AND BREACH OF IMPLIED WARRANTY OF SAFETY INVOLVE SEPARATE LEGAL STANDARDS AND THE JURY LOGICALLY COULD HAVE RULED DIFFERENTLY ON EACH A JURY IN BANGOR MAINE AWARDED 960000 TO A POLICE OFFICER WHO HAD BEEN ORDERED BY HIS EMPLOYER TO TAKE AN INTIMATE SEXUALAROUSAL TEST TO KEEP HIS JOB THE JURY FOUND THAT THE CITY OF OLD TOWN NEAR BANGOR VIOLATED OFFICER NORMAN HARRINGTON'S CONSTITUTIONAL RIGHT TO BE FREE FROM UNREASONABLE PHYSICAL INTRUSIONS MR HARRINGTON WAS TOLD TO TAKE THE TEST IN 1988 AFTER AN INVESTIGATION OF CHILD SEXABUSE ALLEGATIONS HAD TURNED UP NO CREDIBLE EVIDENCE AGAINST HIM THE FEDERAL COURT CASE IS ONE OF THE FIRST TO CHALLENGE THE CONSTITUTIONALITY OF REQUIRING A PUBLIC EMPLOYEE TO TAKE THE PENILEPLETHYSMOGRAPH TEST WHICH IS USED NATIONWIDE BY PSYCHOLOGISTS IN EVALUATING CONVICTED SEX OFFENDERS MR HARRINGTON'S SITUATION WAS THE SUBJECT OF A PAGE ONE ARTICLE IN THE WALL STREET JOURNAL IN FEBRUARY THE PLETHYSMOGRAPH MEASURES SEXUAL AROUSAL VIA A NARROW METAL OR RUBBER BAND ATTACHED AROUND THE SUBJECT'S PENIS WHILE THE SUBJECT VIEWS SLIDES OR VIDEOTAPES OF NAKED ADULTS AND CHILDREN THE TEST IS SUPPOSED TO DETECT AMONG OTHER THINGS WHETHER AN INDIVIDUAL IS UNDULY AROUSED BY CHILDREN THE DEVICE IS THOUGHT TO MEASURE SEXUAL DESIRE ACCURATELY BUT ITS MAKERS SAY IT CANNOT DETERMINE WHETHER SOMEONE HAS COMMITTED AN OFFENSE OR IS LIKELY TO THE VERDICT REACHED LATE LAST WEEK AFTER A TWOWEEK TRIAL INCLUDES 950000 IN COMPENSATORY DAMAGES AND 10000 IN PUNITIVE DAMAGES AGAINST CITY MANAGER DAVID COLE PERSONALLY THE JURY FOUND THAT REQUIRING THE TEST VIOLATED MR HARRINGTON'S DUEPROCESS RIGHTS BECAUSE THE DEMAND WAS SHOCKING TO THE CONSCIENCE AND INVOLVED AN UNREASONABLE BODILY SEARCH OLD TOWN CITY COUNCIL CHAIRWOMAN ROBERTA FOWLER SAID THE CITY WAS CONSIDERING WHETHER TO APPEAL MR COLE COULDN'T BE REACHED MR HARRINGTON 46 YEARS OLD TESTIFIED AT THE TRIAL THAT HE BECAME DEPRESSED AND RECLUSIVE AS A RESULT OF THE FALSE ACCUSATIONS AND SUBSEQUENT FIRING IN 1988 HE WAS REINSTATED BY AN ARBITRATOR I EVEN CONTEMPLATED SUICIDE HE SAID ADDING THAT THE EXPERIENCE WAS WORSE THAN SERVING IN VIETNAM VIETNAM WAS PIECE OF CAKE HE SAID IN VIETNAM YOU JUST HAD TO DIE A FEDERAL COURT BOLSTERED THE USE OF TESTERS WHO POSE AS JOB SEEKERS TO BRING CHARGES OF DISCRIMINATION IN EMPLOYMENT THE RULING CAME IN A CASE BROUGHT BY A CIVIL RIGHTS GROUP THAT USED SUCH TESTERS TO ASSESS WHETHER A JOBREFERRAL AGENCY BMC MARKETING CORP DISCRIMINATED AGAINST BLACK APPLICANTS A FEDERAL JUDGE IN WASHINGTON RULED IN FAVOR OF THE GROUP SAYING THE TESTERS HAD LEGAL STANDING TO SUE EVEN THOUGH THEY WERE NOT ACTUALLY SEEKING EMPLOYMENT AND WOULD NOT HAVE ACCEPTED ANY JOBS TO WHICH THE DEFENDANTS REFERRED THEM ALTHOUGH THE US SUPREME COURT HAS GIVEN TESTERS STANDING TO SUE IN HOUSING DISCRIMINATION CASES THE BMC CASE APPARENTLY STAKES OUT NEW GROUND IN EMPLOYMENT CASES THE DISTRICT COURT SAID FEDERAL EMPLOYMENT LAWS ESTABLISH AN ENFORCEABLE RIGHT TO NONDISCRIMINATORY REFERRALS FROM EMPLOYMENT AGENCIES WHICH APPLIES TO TESTERS AS WELL AS INDIVIDUALS WHO ARE SEEKING A JOB IN THE CASE THE FAIR EMPLOYMENT COUNCIL OF GREATER WASHINGTON SENT TWO BLACK TESTERS AND TWO WHITE TESTERS TO BMC IN SEARCH OF JOB REFERRALS THE BLACK TESTERS DIDN'T RECEIVE REFERRALS BUT THE WHITE TESTERS WITH ALLEGEDLY COMPARABLE QUALIFICATIONS DID THE LAWSUIT WILL BE ALLOWED TO PROCEED ON THE QUESTION OF WHETHER ILLEGAL DISCRIMINATION OCCURRED BMC HAS DENIED THE ALLEGATIONS JOHN MULLAN AN ATTORNEY FOR BMC SAID THE COMPANY WOULD APPEAL THE RULING FAIR EMPLOYMENT COUNCIL VS BMC MARKETING CORP US DISTRICT COURT WASHINGTON DC 910989 MILO GEYELIN CONTRIBUTED TO THIS COLUMN TRIALS HAVE BEEN CONCLUDED IN THREE LAWSUITS AGAINST FORD MOTOR CO OVER ALLEGED SAFETY DEFECTS OF THE BRONCO II SPORT UTILITY VEHICLE FORD HAS WON TWO OF THE CASES AND LOST ONE A LEGAL BEAT COLUMN JUNE 21 INCORRECTLY REPORTED THAT THERE HAD BEEN ONLY TWO TRIALS 9307080097 930520 WORKPLACE COLLEGE CLASS OF '93 LEARNS HARD LESSON CAREER PROSPECTS ARE WORST IN DECADES BY JULIE AMPARANO LOPEZ STAFF REPORTER OF THE WALL STREET JOURNAL SYRACUSE NY FORGET THE USUAL GRADUATION CELEBRATION AT SYRACUSE UNIVERSITY'S KAPPA KAPPA GAMMA SORORITY HOUSE THIS MONTH YOU'RE MORE LIKELY TO SEE A CRYING SESSION ONLY SEVEN OF KAPPA'S 31 GRADUATING SENIORS HAVE LANDED JOBS IT'S HARD TO BE HAPPY SAYS MARTHA P NAILER A HUMAN RESOURCES AND MARKETING MAJOR WE DON'T KNOW WHAT IS GOING TO HAPPEN TO US FOR THE TIME BEING MS NAILER IS GOING TO WORK AS A TEMPORARY OFFICE CLERK MOST OTHER JOBLESS GRADUATES AT THE KAPPA HOUSE SIMPLY PLAN TO GO HOME COUNTLESS COLLEGE GRADUATES ACROSS THE COUNTRY ARE HAVING THE SAME EXPERIENCE JOBS ARE SCARCER THAN THEY HAVE BEEN IN YEARS AND THE JOB MARKET HAS BEEN GETTING WORSE FOR SO LONG THAT IT HAS CHANGED THE WAY MANY YOUNG AMERICANS PLAN THEIR CAREERS AND START THEIR ADULT LIVES AT LEAST 35 OF RECENT GRADUATES NOW TAKE JOBS THAT DON'T REQUIRE COLLEGE DEGREES UP FROM ABOUT 15 FIVE YEARS AGO SAYS L PATRICK SCHEETZ DIRECTOR OF MICHIGAN STATE UNIVERSITY'S COLLEGE EMPLOYMENT RESEARCH INSTITUTE SOME GRADUATES ARE OFFERING TO WORK WITHOUT PAY SIMPLY TO GAIN EXPERIENCE THE LUCKY FEW WINNING GOOD JOBS OFTEN SPEND UP TO A YEAR PURSUING POTENTIAL EMPLOYERS THE JOB MARKET FOR RECENT GRADUATES IS THE POOREST SINCE WORLD WAR II SAYS MR SCHEETZ WHO CONDUCTS AN ANNUAL SURVEY OF COLLEGE STUDENTS' PROSPECTS THERE USED TO BE THIS AURA AROUND COLLEGE DEGREES IF YOU GOT ONE IT WAS ALMOST LIKE HAVING A JOB GUARANTEE THAT'S NOT THE CASE ANYMORE AND IT MAY NEVER BE THE CASE AGAIN THE GRAVE SITUATION PARTLY REFLECTS RECESSIONRELATED CORPORATE CUTBACKS DESPITE SIGNS OF ECONOMIC RECOVERY BIG COMPANIES CONTINUE TO DOWNSIZE THIS YEAR'S GRADUATES OFTEN MUST COMPETE WITH STILLUNEMPLOYED GRADUATES FROM LAST YEAR AS WELL AS RECENT LAYOFF VICTIMS WHO FINISHED COLLEGE ONLY A FEW YEARS AGO CHARLES REGAN HAS WITNESSED HIS DAUGHTER MARLENE'S FUTILE JOB HUNT WITH DISMAY MARLENE WHO GRADUATED THIS MONTH FROM INDIANA UNIVERSITY IN BLOOMINGTON KNEW SHE WANTED TO GO INTO RETAILING WHEN SHE STARTED COLLEGE SHE WORKED PARTTIME IN A LOCAL DEPARTMENT STORE AND EACH SUMMER LANDED VARIOUS INTERNSHIPS SHE STILL DOESN'T HAVE A JOB ALTHOUGH SHE HAS A FEW PROSPECTS WHEN MR REGAN GRADUATED IN 1966 STUDENTS COULD TAKE THEIR TIME FIGURING OUT WHAT TO DO WITHOUT JEOPARDIZING THEIR FUTURES A PHILOSOPHY MAJOR HE SAYS HE DIDN'T KNOW WHAT HE WANTED TO BE TWO MONTHS BEFORE COMMENCEMENT TO TEST THE WATERS HE MET WITH RECRUITERS FROM BANKING MANUFACTURING RETAILING AND OTHER INDUSTRIES THEN SIX MONTHS AFTER GRADUATING HE CALLED THE MANUFACTURING RECRUITER AND TOOK A JOB IN PERSONNEL TODAY STUDENTS START OUT COLLEGE ALREADY KNOWING WHAT THEY WANT TO DO SAYS MR REGAN WHO NOW WORKS FOR A CONSULTING FIRM IF THEY DON'T THEY FALL BEHIND THE OTHERS EVERYTHING IS SO TARGETED BUT MANY RECENT GRADUATES HAVE LOWERED THEIR CAREER GOALS THEY ARE WAITING ON TABLES DRIVING TAXIS AND PERFORMING A VARIETY OF OTHER LOWPAID ODD JOBS JT LEE WHO GRADUATES FROM DUKE UNIVERSITY THIS MONTH WITH AN ACCOUNTING DEGREE DELIVERS PIZZA AT NIGHT IN DURHAM NC SO HE CAN CONCENTRATE ON JOB INTERVIEWS AND FREELANCE PROPOSALS DURING THE DAY MR LEE SAYS A LOCAL MOMANDPOP GROCERY STORE RECENTLY HIRED HIM TO HELP DEVELOP A BETTER INVENTORY SYSTEM BUT THAT JOB IS EXPECTED TO LAST ONLY A MONTH IT'S NOT WHAT I ENVISIONED I WOULD BE DOING WHEN I GRADUATED HE SAYS EMILY MILLAR SAYS THAT SHE COULDN'T EVEN FIND A JOB WAITING ON TABLES WHEN SHE GRADUATED IN MAY 1992 WITH A DEGREE IN POLITICAL SCIENCE FROM MACALESTER COLLEGE IN ST PAUL MINN HER FOURYEAR EDUCATION COST 80000 IN DESPERATION THE OAKLAND CALIF RESIDENT BEGAN WRITING TO LAW FIRMS AND OFFERING TO WORK FOR NOTHING AT FIRST I DIDN'T EVEN GET RESPONSES SAYS MS MILLAR I FELT REALLY LOST FINALLY LAST NOVEMBER SAN FRANCISCO LAW FIRM WERNER & ASSOCIATES TOOK HER ON WITHOUT PAY FOR SECRETARIAL WORK LAST DECEMBER SHE ADVANCED TO A PARTTIME SALARIED CLERICAL JOB AND IN JANUARY BECAME A FULLTIME OFFICE MANAGER IF THIS WOULD LAST THE REST OF MY LIFE I WOULD BE REALLY DISAPPOINTED SAYS MS MILLAR WHO LIVES WITH HER GRANDMOTHER AND PLANS TO ATTEND LAW SCHOOL NEXT FALL I EXPECTED MORE WITH A COLLEGE DEGREE RIGHT NOW I CAN'T EVEN AFFORD TO LIVE ON MY OWN SOME COLLEGE GRADUATES ARE TAKING FACTORY JOBS JUST TO GET PAST A MANUFACTURER'S GATE AT EASTMAN KODAK CO'S FILM AND EQUIPMENT FACTORIES IN ROCHESTER NY SO MANY COLLEGE GRADUATES ARE TAKING FACTORY JOBS THAT MUNICIPAL OFFICIALS FEARED HIGH SCHOOL GRADUATES WEREN'T GETTING A FAIR SHOT KODAK HAS PROMISED TO CONSIDER MORE HIGH SCHOOL GRADUATES FOR THOSE POSITIONS MAKING COMPETITION EVEN TOUGHER FOR COLLEGE GRADS WITH COMPETITION FOR JOBS SO FIERCE STUDENTS ARE REALIZING THEY HAVE TO TAKE A DIFFERENT PATH TO GET TO THEIR DREAM JOBS SAYS VICTOR R LINDQUIST DIRECTOR OF PLACEMENT AT NORTHWESTERN UNIVERSITY TEMPORARY AGENCIES OFFER ANOTHER PATH FOR COLLEGE GRADUATES GUIDANCE SERVICES A WALL STREET TEMPORARYSTAFFING AGENCY REPORTS A 30 INCREASE IN THE PAST YEAR IN THE COLLEGE GRADUATES LOOKING FOR TEMPORARY ASSIGNMENTS ONCE INSIDE CORPORATIONS AS TEMPORARY CLERKS JOB HUNTERS CAN PASS OUT RESUMES AND TRY TO IMPRESS POTENTIAL MANAGERS GRADUATES' SUCCESSFUL JOB SEARCHES ARE NOW TAKING LONGER TOO BETWEEN NINE MONTHS AND A YEAR UP FROM ABOUT THREE MONTHS BEFORE IT TOOK LYNDEA DEW A NORTHWESTERN POLITICAL SCIENCE GRADUATE A YEAR TO GET A MANAGEMENTTRAINEE JOB WITH CHASE MANHATTAN BANK IN NEW YORK SHE STARTS NEXT MONTH MS DEW SAYS SHE WROTE LETTERS TO CHASE FOR NEARLY A YEAR SHE SPENT TWO SUMMERS WORKING IN JAPAN WITH COMPUTER COMPANIES AND JUGGLED SCHOOLWORK WITH AN INTERNSHIP AT A CHICAGO BANK IT MAKES ME SO ANGRY WHEN PEOPLE SAY I GOT LUCKY SHE SAYS I WORKED HARD TO GET THIS JOB JOB SEARCHES OFTEN DRAG ON FOR MANY MONTHS BECAUSE MORE GRADUATES ARE APPLYING TO SMALLER COMPANIES WHICH RARELY RECRUIT ON CAMPUS IN 1986 MOST CAMPUSES HAD AN AVERAGE OF 42 CORPORATE RECRUITERS VISIT THEIR CAMPUSES ACCORDING TO THE COLLEGE PLACEMENT COUNCIL IN BETHLEHEM PA THIS YEAR THE NUMBER HAS DWINDLED TO 23 IN AUGUST 1991 DANIEL WALDSTEIN DEAN OF STUDENTS AND DIRECTOR OF CAREER SERVICES AT ILLINOIS INSTITUTE OF TECHNOLOGY SET UP A COMPUTERIZED DATABASE LISTING THOUSANDS OF SMALL ILLINOIS EMPLOYERS FOR STUDENTS TO PERUSE HE ALSO ENCOURAGES STUDENTS TO SCRUTINIZE NEWSPAPERS FOR NEWS OF EMERGING COMPANIES PLANNING TO EXPAND A LOT OF GRUNT DETECTIVE WORK IS REQUIRED TO FIND A JOB THESE DAYS MR WALDSTEIN NOTES ONCEPROMISING FIELDS SUCH AS ACCOUNTING LAW AND RETAILING SHOW SIGNS OF SATURATION DEMAND IS ALSO COOLING FOR GRADUATES WITH DEGREES IN ENGINEERING STANFORD UNIVERSITY ENGINEERING STUDENTS ARE NOW GETTING ONE OR TWO JOB OFFERS A PIECE A FEW YEARS AGO THEY COLLECTED FIVE TO SEVEN OFFERS SAYS RUTH SCHNEIDER DIRECTOR OF CAREER PLANNING AND PLACEMENT NEW HOLDERS OF MASTER'S DEGREES IN BUSINESS ADMINISTRATION ARE ALSO FINDING THE ROAD ROUGH ONCE HEAVILY COURTED BY MAJOR COMPANIES MBAS ARE RESORTING TO GIMMICKS AND HEAVY SELFPROMOTION IN PURSUIT OF JOBS LAST YEAR ABOUT 20 MBA CANDIDATES AT WASHINGTON UNIVERSITY IN ST LOUIS MAILED OUT BASEBALL TRADING CARDS TO 102 MARKETING VICE PRESIDENTS AT MEDIUMSIZE COMPANIES ACROSS THE COUNTRY EACH CARD PICTURED A STUDENT LISTED HIS OR HER ACCOMPLISHMENTS AND GOALS AND INCLUDED A STICK OF BUBBLEGUM SOME FRUSTRATED JOB HUNTERS ARE CHANGING FIELDS JOHN BORGANO WHO GOT A COMMUNICATIONS DEGREE FROM TEMPLE UNIVERSITY THIS MONTH HAS DECIDED TO BECOME A POLICEMAN IN PHOENIX INSTEAD OF GOING INTO PUBLIC RELATIONS WHILE HE DOESN'T NEED HIS DEGREE FOR POLICE WORK HE HOPES IT WILL HELP HIM RISE THROUGH THE RANKS THE DISMAL JOB MARKET IS PROMPTING SOME HIGHSCHOOL STUDENTS TO RECONSIDER PLANS TO ATTEND EXPENSIVE COLLEGES ON A RECENT TOUR OF THE UNIVERSITY OF PENNSYLVANIA JOSEPH DUGAN AND HIS 17YEAROLD DAUGHTER JENNIFER A HIGHSCHOOL JUNIOR EXPRESSED MISGIVINGS ABOUT WHETHER SHE SHOULD SEEK A 100000 IVY LEAGUE EDUCATION SAID MR DUGAN A DENVER BANKER WE HAVE TO DECIDE WHETHER COLLEGE COSTS OUTWEIGH THE REWARDS PARTICULARLY IF JENNIFER HAS TO START AS A SECRETARY FEWER RECRUITERS ON CAMPUS SEE RELATED LETTER LETTERS TO THE EDITOR NOT TO GRADS THE JOBS ARE OUT THERE WSJ JULY 8 1993 9305200125 YY93 MM07 9307070023 930616 REVIEW & OUTLOOK EDITORIAL ASIDES BUMPY FLIGHTS AHEAD THE NINTH CIRCUIT'S GOAHEAD TO SUE AIRLINES FOR BUMPING PASSENGERS IS AN OPPORTUNITY FOR A NICHE TRAVEL AGENCY AIMED AT TRIAL LAWYERS WHILE MOST OF US LOOK FOR THE EMPTIEST FLIGHT IN ORDER TO STRETCH OUT LITIGATORS IN CALIFORNIA AND OTHER WESTERN STATES WILL WANT THE MOST CROWDED CABIN POSSIBLE IN HOPES OF HITTING THE JACKPOT SEE RELATED LETTER LETTERS TO THE EDITOR BUMPED PASSENGERS CAN SUE THE BUMPERS WSJ JULY 7 1993 9306160096 YY93 MM07 9307070010 930617 LETTERS TO THE EDITOR BAD CLIMATE IN OZONE DEBATE WHEN HOLMAN JENKINS JR LABELS AL GORE AS TACTICALLY CYNICAL AL GORE LEADS A PURGE EDITORIAL PAGE MAY 25 HE DRIVES THE NAIL ONLY HALFWAY INTO THE WOOD VICE PRESIDENT GORE AND OTHER ENVIRONMENTAL CELEBRITIES ALSO EXHIBIT PURE CONTEMPT FOR THE INTELLIGENCE OF THE PUBLIC AT LARGE A MORE COMPLETE ACCOUNT OF THE EXCHANGE BETWEEN MR GORE AND RICHARD LINDZEN AN MIT METEOROLOGIST WHO IS A CRITIC OF THE COMPUTER MODELS THAT PREDICT CLIMATIC DISASTER IS ILLUMINATING AT A ROUNDTABLE DISCUSSION ORGANIZED BY MR GORE IN OCTOBER 1991 MR LINDZEN WHO REMAINS A VOCAL CRITIC OF GLOBAL WARMING HYPOTHESES MADE A CONCESSION ABOUT HIS OBJECTIONS TO THE WAY CLIMATE MODELS DEAL WITH WATER VAPOR MR GORE HAD THE TRANSCRIPT OF THAT EXCHANGE READ THAT MR LINDZEN HAD RECANTED HIS HYPOTHESIS OF CLIMATE REGULATION HE THEN SENT THE TRANSCRIPT TO TOM WICKER WHO PUBLISHED MR GORE'S VERSION IN THE NEW YORK TIMES SUBSEQUENTLY MR GORE WROTE IN HIS BESTSELLING EARTH IN THE BALANCE THAT MR LINDZEN PUBLICLY WITHDREW HIS HYPOTHESIS ABOUT HOW WATER VAPOR MIGHT REGULATE TEMPERATURE IN 1991 HE PURPOSELY OR MISTAKENLY CONFUSES WATER VAPOR WITH CLOUDS IN THIS ENTIRE DISCUSSION THEY ARE NOT THE SAME THING BUT MORE IMPORTANTLY HE CITES THE NEW YORK TIMES ARTICLE AS A REFERENCE THUS MR GORE MANAGES TO FABRICATE A SUPPORTING REFERENCE FOR HIS BOOK THAT HE COULD NOT HAVE FOUND OTHERWISE AND SIMULTANEOUSLY WIPES HIS FINGERPRINTS FROM THE WHOLE AFFAIR LIKE MOST CONTEMPTUOUS PEOPLE AL GORE'S CAREFUL CHOREOGRAPHY OF EVIDENCE AND EVENTS SOMETIMES LEAVES HIM IN CHAPTER 3 OF EARTH IN THE BALANCE HE STATES THAT MANKIND DEPENDS CRITICALLY ON THE STABLE CLIMATE WE HAVE ENJOYED OVER THE PAST 10000 YEARS HE PROCEEDS TO LIFT MATERIAL DIRECTLY OUT OF HUBERT LAMB'S WORKS THAT SHOWS EXACTLY THE OPPOSITE THE VARIABILITY OF CLIMATE OVER THIS TIME PERIOD AND HOW IT CAUSED HUMAN MIGRATION AND SUFFERING MOREOVER MR GORE'S CONSTANT FOCUS IS THE DANGER OF GLOBAL WARMING BUT EVERY EXAMPLE HE PRESENTS OF DISASTROUS CLIMATE IN CHAPTER 3 IS OF A CLIMATE TOO COLD NO OPPONENT COULD HAVE MORE NEATLY PUNCTURED HIS THESIS APPARENTLY MR GORE THINKS THAT EVIDENCE HAS NO MEANING BEYOND WHAT HE INTENDS IT TO MEAN MR JENKINS'S VIRULENT ATTACK ON THE VICE PRESIDENT DOES LITTLE TO ADVANCE THE NEED FOR RATIONAL DEBATE ON THE COMPLEX ISSUES POSED BY WELLDOCUMENTED THREATS TO THE GLOBAL ENVIRONMENT THE ARTICLE SERIOUSLY MISREPRESENTS PRESENT UNDERSTANDING OF THE RELEVANT SCIENCE AND IS DEFICIENT IN ITS ACCOUNT OF THE PIVOTAL ROLE MR GORE PLAYED AS SENATOR IN FOCUSING ATTENTION ON THE NEED FOR A POLICY RESPONSE THERE IS NO DISPUTE THAT HUMAN ACTIVITY IS RESPONSIBLE FOR SIGNIFICANT CHANGES IN THE ABUNDANCE OF SEVERAL KEY GREENHOUSE GASES THE ABUNDANCE OF CARBON DIOXIDE IS HIGHER NOW THAN AT ANY TIME SINCE HUMAN BEINGS FIRST WALKED ON OUR PLANET EMISSION OF CARBON DIOXIDE INTO THE ATMOSPHERE ASSOCIATED WITH BURNING OF FOSSIL FUEL IS THE LARGEST AND LEAST APPRECIATED WASTE PRODUCT WE PRODUCE AS AN INDUSTRIAL SOCIETY WITHOUT QUESTION IT HAS THE POTENTIAL TO ALTER CLIMATE AND WEATHER PATTERNS OVER LARGE REGIONS OF THE PLANET MR JENKINS STATES THAT MANY SCIENTISTS NOW REALIZE THAT THEY WERE TAKEN IN BY MEDIA HYPE ON THE SIGNIFICANCE OF THE ISSUE ON THE CONTRARY SEVERAL HUNDRED EXPERTS DRAWN FROM 25 COUNTRIES UNDER THE AEGIS OF THE INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE CONCLUDED THAT UNDER BUSINESS AS USUAL A RATE OF INCREASE OF GLOBAL MEAN TEMPERATURE DURING THE NEXT CENTURY OF ABOUT 03 C PER DECADE IS TO BE EXPECTED NOTING THAT THIS CHANGE WOULD BE GREATER THAN THAT SEEN OVER THE PAST 10000 YEARS THERE IS A HOLE IN THE OZONE THAT AFFECTS 10 OF THE SOUTHERN HEMISPHERE EVERY YEAR IN THE SPRING IT APPEARED FIRST IN THE MID1970S THE RESULT OF REACTIONS TRIGGERED BY INDUSTRIAL CHLORINATED AND BROMINATED CHEMICALS HAD WE MOVED TO ELIMINATE THESE CHEMICALS 30 YEARS AGO THE HOLE NEVER WOULD HAVE APPEARED DESPITE VIGOROUS IF BELATED INTERNATIONAL ACTION THE HOLE IS GUARANTEED TO PERSIST INTO THE 23RD CENTURY MR GORE'S WARNING OF A HOLE OVER KENNEBUNKPORT IS WELLFOUNDED THERE IS EVIDENCE FOR SIGNIFICANT LOSS OF OZONE AT MID LATITUDES OF THE NORTHERN HEMISPHERE AS REPORTED RECENTLY IN SCIENCE APRIL 23 OZONE LEVELS HIT A GLOBAL LOW IN 1992 WILLIAM HAPPER'S CLAIM FOR A DECLINE IN THE ULTRAVIOLET RADIATION HITTING THE EARTH'S SURFACE IS CONTROVERSIAL AND GIVEN LITTLE WEIGHT BY THE KNOWLEDGEABLE SCIENTIFIC COMMUNITY AS CHAIRMAN OF HIS SUBCOMMITTEE MR GORE WAS CREATIVE AND CONSTRUCTIVE IN EXPLORING KEY AREAS OF UNCERTAINTY IN OUR UNDERSTANDING OF THE GLOBAL ENVIRONMENT THE ROUNDTABLE FORMAT HE PIONEERED IS A POWERFUL MECHANISM WITH WHICH TO CONFRONT DIFFICULT AND COMPLEX ISSUES MR JENKINS TO THE CONTRARY IT IS TRUE THAT JAMES HANSEN'S TESTIMONY WAS CENSORED BY THE BUSH ADMINISTRATION SHERWOOD IDSO'S THESIS THAT THE PLANET WOULD BECOME GREENER AND REABSORB THE CARBON DIOXIDE THAT MIGHT OTHERWISE CAUSE GLOBAL WARNING IS BASED ON FAULTY REASONING CONTRADICTED BY INDISPUTABLE FACTS MR GORE'S BOOK WAS WRITTEN BY THE AUTHOR AS INDICATED NOT BY CAROL BROWNER HE IS METICULOUS IN HIS ATTRIBUTIONS AND CHECKED HIS FACTS EXHAUSTIVELY MR JENKINS WOULD DO WELL TO FOLLOW HIS EXAMPLE MR JENKINS REPEATS AN ERROR OF FACT COMMONLY SPREAD BY THE EARTH IN THE BALANCE CROWD WHEN HE DESCRIBES CARBON DIOXIDE PARENTHETICALLY AS THE MAIN GREENHOUSE GAS IN FACT THE MAIN GREENHOUSE GAS FROM THE POINT OF VIEW OF THE PORTION OF THE ELECTROMAGNETIC SPECTRUM IN QUESTION AND THE BIGGEST DRIVING FACTOR IN ANY OF THE COMPUTER MODELS IS NOT CARBON DIOXIDE BUT THE FAR MORE COMMON OXIDE OF HYDROGEN IN THE FORM OF WATER VAPOR THE FACT THAT WATER COVERS MOST OF THE EARTH'S SURFACE AND IS ALSO PRESENT IN VARIOUS FORMS IN CLOUDS IS WHAT HELPS GIVE THE NUMERICAL MODEL BUILDERS THEIR LIFETIME JOB SECURITY SEE RELATED LETTER LETTERS TO THE EDITOR IF YOU DON'T LIKE HOLES DON'T LOOK FOR THEM WSJ JUNE 28 1993 SEE RELATED LETTER LETTERS TO THE EDITOR GREENHOUSE GAS WSJ JULY 7 1993 9306170050 9306280014 YY93 MM06 YY93 MM07 9307070056 930528 SPLIT PERSONALITY SOCIAL RESPONSIBILITY AND NEED FOR LOW COST CLASH AT STRIDE RITE SHOEMAKER DOES GOOD DEEDS BUT CLOSES ITS FACILITIES IN DEPRESSED INNER CITIES MOST JOBS MOVE OVERSEAS BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL CAMBRIDGE MASS AT THE GLEAMING HEADQUARTERS BUILDING OF STRIDE RITE CORP IN BUSTLING KENDALL SQUARE HERE PLAQUES ON THE WALLS HONOR THE SHOE COMPANY FOR ITS GOOD DEEDS IN THE PAST THREE YEARS ALONE STRIDE RITE HAS RECEIVED 14 PUBLICSERVICE AWARDS INCLUDING ONES FROM THE NATIONAL WOMEN'S POLITICAL CAUCUS NORTHEASTERN UNIVERSITY THE NORTHEAST HUMAN RESOURCES ASSOCIATION AND HARVARD UNIVERSITY WHICH PRAISED IT FOR IMPROVING THE QUALITY OF LIFE IN ITS COMMUNITY AND THE NATION WHILE DOING GOOD STRIDE RITE ALSO HAS DONE WELL IT HAS POSTED A PROFIT USUALLY A RECORD FOR THE PAST 32 QUARTERS THIS YEAR ITS SALES ARE EXPECTED TO TOP 625 MILLION MORE THAN DOUBLE THE 1986 LEVEL ITS STOCK HAS INCREASED SIXFOLD SINCE THEN MAKING IT A FAVORITE ON THE NEW YORK STOCK EXCHANGE AND AMONG SOCIALLY CONSCIOUS INVESTORS BUT JUST A FEW MILES AWAY IN BOSTON'S ROUGH INNERCITY ROXBURY NEIGHBORHOOD STANDS ANOTHER STRIDE RITE BUILDING A WEATHERBEATEN REDBRICK STRUCTURE SURROUNDED BY EMPTY LOTS CRUMBLING ROADS AND CHAINLINK FENCES IT ONCE HOUSED CORPORATE HEADQUARTERS AND EMPLOYED 2500 PEOPLE MAKING THE COMPANY'S KEDS SNEAKERS AND SPERRY TOPSIDER SHOES TODAY THE BUILDING IS JUST A DISTRIBUTION CENTER EMPLOYING ONLY 175 WORKERS NEXT YEAR EVEN THEY WILL BE GONE STRIDE RITE PLANS TO CLOSE THE WAREHOUSE AND ANOTHER ONE IN NEW BEDFORD MASS AND MOVE THE OPERATIONS TO KENTUCKY IN ROXBURY SO CLOSE TO CORPORATE HEADQUARTERS BUT YET SO FAR STRIDE RITE'S CITATIONS FOR CORPORATE CITIZENSHIP RING HOLLOW WITH THE LOCAL UNEMPLOYMENT RATE ESTIMATED AT NEARLY 30 THE SOONTOBEJOBLESS WORKERS SEE A BLEAK FUTURE WHERE ARE YOU SUPPOSED TO GO WONDERS MIGUEL BRANDAO A 46YEAROLD CAPE VERDEAN IMMIGRANT WHO HAS WORKED AT THE PLANT 11 YEARS THERE IS NO PLACE TO GO IN NEW BEDFORD WHERE UNEMPLOYMENT RUNS ABOUT 14 OF THE LABOR FORCE STRIDE RITE'S PLAN TO LEAVE STIRS BITTERNESS SINCE THE COMPANY'S ANNOUNCEMENT EARLIER THIS YEAR TWO SUSPICIOUS FIRES HAVE CAUSED PLANT DAMAGE ESTIMATED AT MORE THAN 750000 AND THREE WORKERS ARE UNDER INVESTIGATION AND LAST JUNE STRIDE RITE CLOSED ANOTHER PLANT IN TIPTON MO AND LAID OFF 280 WORKERS THE UNEMPLOYMENT RATE IS GRIM THERE TOO THREE OTHER SHOE COMPANIES ALSO CLOSED NEARBY FACTORIES AT ABOUT THE SAME TIME IDLING 1400 WORKERS ANGIE AND STANLEY SHEWMAKER WHO BOTH WORKED FOR STRIDE RITE IN TIPTON ARE STILL UNEMPLOYED THEY HAVE BEEN IN JOB TRAINING AND IN COUNSELING FOR A MARRIAGE STRAINED BY MONEY WORRIES I'M ALL NERVES MRS SHEWMAKER SAYS I'M ON TRANQUILIZERS I CAN'T SLEEP AT NIGHT IT'S BEEN HARD I'M FIGHTING DEPRESSION ALL THE TIME IN THE PAST DECADE STRIDE RITE HAS PROSPERED PARTLY BY CLOSING 15 FACTORIES MOSTLY IN THE NORTHEAST AND SEVERAL IN DEPRESSED AREAS AND MOVING MOST OF ITS PRODUCTION TO VARIOUS LOWCOST ASIAN COUNTRIES THE COMPANY STILL EMPLOYS 2500 WORKERS IN THE US BUT THAT IS DOWN FROM A PEAK OF ABOUT 6000 SO YETANOTHER DEPARTURE FROM YETANOTHER INNERCITY NEIGHBORHOOD SUCH AS ROXBURY IS HARDLY SURPRISING NEITHER IS THE TRANSFER OF WORK TO THE FAR EAST BUT WHEN THE COMPANY BEHIND THE MOVES IS A STRIDE RITE ONE THAT HAS RECEIVED SO MANY ACCOLADES IT RAISES DIFFICULT QUESTIONS WHAT MAKES A COMPANY SOCIALLY RESPONSIBLE AND HOW FAR CAN SOCIAL RESPONSIBILITY BE EXPECTED TO GO IS IT SUFFICIENT TO DO GOOD DEEDS AS EVERYONE AGREES STRIDE RITE HAS DONE IT HAS CONTRIBUTED 5 OF ITS PRETAX PROFIT TO A FOUNDATION SENT 100000 PAIRS OF SNEAKERS TO STRIFETORN MOZAMBIQUE PAID HARVARD GRADUATE STUDENTS TO WORK IN A CAMBODIAN REFUGEE CAMP GIVEN SCHOLARSHIPS TO INNERCITY YOUTHS PERMITTED EMPLOYEES TO TUTOR DISADVANTAGED CHILDREN ON COMPANY TIME AND BEEN A PIONEER IN SETTING UP ONSITE DAYCARE AND ELDERCARE FACILITIES OR IS SOMETHING MORE BASIC NEEDED SUCH AS PROVIDING JOBS IN DEPRESSED AREAS EVEN AT THE EXPENSE OF PROFITS TO MANY WHO HAVE WATCHED MUCH OF CORPORATE AMERICA LEAVE INNER CITIES THE ANSWER IS CLEAR THE MOST SOCIALLY RESPONSIBLE THING A COMPANY CAN DO IS TO GIVE A PERSON A JOB ARGUES DONALD GILLIS EXECUTIVE DIRECTOR OF BOSTON'S ECONOMIC DEVELOPMENT AND INDUSTRIAL CORP WHICH TRIED TO PERSUADE STRIDE RITE TO STAY ADDS GILDA HAAS AN ECONOMIC AND URBANPLANNING LECTURER AT THE UNIVERSITY OF CALIFORNIA AT LOS ANGELES IT STRIKES ME AS STRANGE THAT WE'RE HAVING THIS CONVERSATION ABOUT INNERCITY JOBS ONLY A YEAR AFTER THE CIVIL UNREST IN SOUTH CENTRAL LOS ANGELES WHAT EXACTLY DID THE CORPORATE SECTOR MEAN WHEN THEY SPOKE OF THE NEED FOR INNERCITY JOBS LAST YEAR AS LOS ANGELES BURNED STRIDE RITE CONTENDS THAT IT HAS BEEN SOCIALLY RESPONSIBLE BUT NEVERTHELESS HAS TO BALANCE THE DEMANDS OF TWO MASTERS SHAREHOLDERS AND SOCIETY IF A COMPANY DOESN'T STAY COMPETITIVE ITS EXECUTIVES CONTEND IT CAN'T GROW IT WOULD PROVIDE EVEN FEWER JOBS IT WOULD EARN TOO LITTLE TO AFFORD ITS COMMUNITY PROGRAMS AND AT WORST IT MIGHT JEOPARDIZE ITS SURVIVAL PUTTING JOBS INTO PLACES WHERE IT DOESN'T MAKE ECONOMIC SENSE CHAIRMAN ERVIN SHAMES SAYS IS A DILUTION OF CORPORATE AND COMMUNITY WEALTH SO EVEN WHILE STRIDE RITE WAS NURTURING SOCIAL PROGRAMS IT SLOWLY AND RELUCTANTLY BEGAN CLOSING PLANTS IN MAINE AND NEW HAMPSHIRE IN THE LATE 1960S AND SHIFTING PRODUCTION OVERSEAS AND AS THE QUALITY AND EFFICIENCY OF FOREIGN WORKERS IMPROVED STRIDE RITE AND ITS COMPETITORS STARTED TO EXPORT JOBS MORE RAPIDLY HIGHERPRICED AMERICAN WORKERS SIMPLY WEREN'T COMPETITIVE EVEN STRIDE RITE'S EFFORTS TO RUN SMALL COSTEFFICIENT FACTORIES IN RURAL NEW ENGLAND FAILED NIKE INC TOO BRIEFLY TRIED RUNNING A FACTORY IN MAINE IN THE LATE 1970S BUT GAVE UP AFTER LOSING MORE THAN 5 MILLION A YEAR ATHLETIC SHOES ARE BEST MADE IN PARTS OF THE WORLD OTHER THAN THE US A NIKE SPOKESMAN SAYS IF THE AIR JORDAN SHOE WERE TO BE MADE IN THE US TODAY IT COULD RETAIL FOR 280 TO 310 A PAIR THE TAIWANMADE SHOE COSTS ABOUT 100 BY THE EARLY 1980S ONLY HALF OF STRIDE RITE'S SHOES WERE USMADE YOU COULD STAY IN THE US IF YOU WERE DOING HIGHEND SHOES A NICHE STRIDE RITE WASN'T IN SAYS MYLES SLOSBERG A DIRECTOR AND FORMER EXECUTIVE VICE PRESIDENT OTHERWISE IT WAS GOING TO BE PRETTY DARN DIFFICULT ONE OF THE COMPANY'S BIGGEST LAYOFFS OF 2500 PEOPLE CAME IN 1984 STRIDE RITE CLOSED THREE PLANTS INCLUDING ITS CHILDREN'S SHOE FACTORY IN ROXBURY AND MOVED THE JOBS OVERSEAS IT HAD TO IT SAYS TO SURVIVE THAT YEAR ITS NET INCOME PLUMMETED 68 TO 54 MILLION FROM 168 MILLION IN 1983THE FIRST DROP IN 13 YEARS IN 1986 THE COMPANY CLOSED TWO MORE MASSACHUSETTS PLANTS IN BROCKTON AND LAWRENCE IT STILL OPERATES TWO FACTORIES IN MISSOURI BUT IT NOW MAKES ONLY 10 OF ITS SHOES IN THE US IT DOESN'T OWN THE OVERSEAS FACTORIES OR DIRECTLY EMPLOY THE WORKERS INSTEAD IT CONTRACTS WITH LOCAL COMPANIES THE LABOR SAVINGS ARE HUGE ANDY LI A TAIWAN CONTRACTOR WHO HAS FOUND SUBCONTRACTORS TO WORK FOR STRIDE RITE SAYS SKILLED WORKERS IN CHINA EARN 100 TO 150 A MONTH WORKING 50 TO 65 HOURS A WEEK UNSKILLED WORKERS PACKERS AND SORTERS GET 50 TO 70 A MONTH BY COMPARISON STRIDE RITE'S US WORKERS AVERAGE 1200 TO 1400 PER MONTH IN WAGES ALONE PLUS MODEST FRINGE BENEFITS IT HAS BECOME VIRTUALLY IMPOSSIBLE TO MANUFACTURE SNEAKERS IN THE US AND STILL BE IN THE COMPETITION SAYS CARL STEIDTMANN CHIEF ECONOMIST AT PRICE WATERHOUSE'S MERCHANDISECONSULTING DIVISION THE OBVIOUS CONSEQUENCE IN MISSOURI SHOEMAKING JOBS DWINDLED TO 8250 LAST YEAR FROM A PEAK OF 25000 IN 1968 EVEN OVERSEAS STRIDE RITE CONTINUES ITS QUEST FOR LABOR BARGAINS IN RECENT YEARS IT HAS SWITCHED FROM FACTORIES IN SOUTH KOREA AS PAY ROSE THERE TO LOWERWAGE INDONESIA AND CHINA IT HAS BECOME SORT OF HOLY GRAIL FOR US MR SLOSBERG SAYS STRIDE RITE ALSO CONTENDS IT HAS LITTLE CHOICE BUT TO PULL ITS DISTRIBUTION CENTERS OUT OF ROXBURY AND NEW BEDFORD IT WAS A DIFFICULT DECISION MR SHAMES SAYS OUR HEARTS SAID STAY' BUT OUR HEADS SAID MOVE' STRIDE RITE WILL SAVE MILLIONS OF DOLLARS HE ADDS BY GOING TO THE MIDWEST WHEN THE COMPANY PROFILED ITS RETAILERS HE SAYS THE AVERAGE CUSTOMER TENDED TO BE IN THE MIDWESTERN OR SOUTHERN PART OF THE NATION MOREOVER THE CENTRAL LOCATION WILL MAKE SHIPPING GENERALLY MORE EFFICIENT NOW MOST STRIDE RITE SHOES ARE SHIPPED FROM THE FAR EAST TO LOS ANGELES AND SEATTLE AND THEN TRUCKED TO BOSTON AND NEW BEDFORD WHERE THEY ARE SORTED AND LABELED AND THEN DISPATCHED TO RETAILERS NATIONWIDE THE NEW DISTRIBUTION CENTER IN LOUISVILLE WILL ELIMINATE 800 TO 1200 MILES ON SOME TRUCK ROUTES SPEEDING DELIVERY BY 2 1/2 TO FOUR DAYS AFTER THE NUMBERS WERE ADDED UP IT WASN'T EVEN A CLOSE DECISION SAYS MR SLOSBERG WHO IS NOW A MASSACHUSETTS ASSISTANT ATTORNEY GENERAL WITHIN STRIDE RITE'S TOP MANAGEMENT HOWEVER THE DECISION HAS CAUSED SOULSEARCHING ARNOLD HIATT A FORMER CHAIRMAN WHO RETIRED LAST YEAR BUT REMAINS A DIRECTOR SAYS I OBJECTED TO THAT DECISION AS MUCH AS I COULD I WAS OVERRULED HE PASSIONATELY ESPOUSED A JEFFERSONIAN VISION LINKING CORPORATE AND SOCIAL RESPONSIBILITY WHEN STRIDE RITE JOINED 54 OTHER COMPANIES TO FORM BUSINESSES FOR SOCIAL RESPONSIBILITY LAST YEAR HE SAID IF YOU'RE PROBUSINESS YOU ALSO HAVE TO BE CONCERNED ABOUT THINGS LIKE JOBS IN THE INNER CITY AND THE 38 MILLION AMERICANS LIVING BELOW THE POVERTY LINE BUT MR HIATT CONCEDES THAT THE ISSUE IS COMPLICATED FOR THREE MONTHS OFFICIALS REVIEWED OFFERS IN CONNECTION WITH THE WAREHOUSE FROM INDIANA OHIO MASSACHUSETTS AND KENTUCKY KENTUCKY WON MAINLY BECAUSE OF A 24 MILLION TAX BREAK OVER 10 YEARS VS A 3 MILLION OFFER FROM MASSACHUSETTS LOWER WAGE RATES ALSO PLAYED A ROLE MR HIATT ACKNOWLEDGES THAT HE HIMSELF MOVED MANY JOBS OUT OF ROXBURY IN HIS 24 YEARS AS A TOP OFFICER TO THE EXTENT THAT YOU CAN STAY IN THE CITY I THINK YOU HAVE TO HE SAYS BUT IF IT'S AT THE EXPENSE OF YOUR BUSINESS I THINK YOU CAN'T FORGET THAT YOUR PRIMARY RESPONSIBILITY IS TO YOUR STOCKHOLDERS IT WAS UNDER MR HIATT A STAUNCH LIBERAL WHO SERVED AS TREASURER FOR SEN EUGENE MCCARTHY'S 1968 PRESIDENTIAL CAMPAIGN THAT STRIDE RITE BECAME KNOWN FOR PROGRESSIVE POLICIES IN 1971 HE OPENED A DAYCARE CENTER AT THE ROXBURY PLANT A MOVE THAT COST SOME MONEY BUT MORE THAN PAID OFF IN GOODWILL IN 1988 ANOTHER DAYCARE CENTER AT THE CAMBRIDGE HEADQUARTERS WAS EXPANDED TO BECOME A WIDELY PRAISED INTERGENERATIONAL CENTER CARING FOR THE AGED AS WELL STRIDE RITE ALSO CONTRIBUTES HEAVILY TO CHARITY IN 1991 ITS BOARD DECIDED TO ALLOT 5 OF PRETAX PROFITS OR ABOUT 5 MILLION LAST YEAR TO THE STRIDE RITE CHARITABLE FOUNDATION PART OF THAT MONEY HELPS 40 INNERCITY STUDENTS ATTEND HARVARD IN RETURN FOR THE 5000AYEAR SCHOLARSHIPS THE STUDENTS SERVE AS MENTORS TO OTHER INNERCITY YOUTHS HELPING THEM WITH SCHOOL WORK AND SPENDING SUMMERS IN HOUSING PROJECTS AFTER GRADUATION THE SCHOLARSHIP RECIPIENTS CAN CONTINUE THEIR PUBLIC SERVICE FOR A YEAR UNDER A FELLOWSHIP OFFERING A 15000 STIPEND ONE STUDENT WHO LAST YEAR WAS HEADED FOR A WALL STREET JOB CHOSE INSTEAD TO WORK IN A NEW YORK HOSPITAL THAT SERVES MANY AIDS PATIENTS STRIDE RITE HAS WON ADMIRERS AMONG MANY BUSINESS CRITICS THE COMPANY IS A CASE STUDY OF GIVING SOMETHING BACK TO THE COMMUNITY SAYS PEGGY CHARREN A CAMBRIDGE RESIDENT WHO FOUNDED ACTION FOR CHILDREN'S TELEVISION WHICH LOBBIES FOR BETTER TV PROGRAMMING FOR KIDS FOR A LONG TIME THE ROXBURY SITE THEN THE COMPANY HEADQUARTERS WAS RELATIVELY UNSCATHED DESPITE THE SHARPLY DETERIORATING NEIGHBORHOOD THEN IN 1981 CAME A STUNNING BLOW STRIDE RITE MOVED ITS OFFICES TO CAMBRIDGE WE HELD OUT AS LONG AS WE COULD MR HIATT SAYS BUT IT BECAME CLEAR THAT PEOPLE THAT HAD THE MORE SKILLED JOBS AT STRIDE RITE WERE COMING FROM OTHER PARTS OF THE CITY AND WERE INCREASINGLY RELUCTANT TO GO INTO ROXBURY ONE DAY A BULLET SMASHED THROUGH HIS WINDOW HE SAYS AND I KNEW IT WAS TIME TO GO TO SOFTEN THE IMPACT ON ROXBURY STRIDE RITE MOVED IN DISTRIBUTION CENTERS FROM ATLANTA AND SALEM NH BUT THE RESPITE WAS BRIEF IN 1984 IT CLOSED THE FACTORY NOW THE DEPARTURE OF THE WAREHOUSE COMPOUNDS ROXBURY'S PROBLEMS AMES DEPARTMENT STORES INC CLOSED ITS ROXBURY STORE IN MARCH AND DIGITAL EQUIPMENT CORP SHUT ITS FACTORY IN THE NEIGHBORHOOD THIS MONTH IT IS VERY DEVASTATING SAYS RODERICK DOWDELL A WORKER AT THE NEARBY COMMON BOSTONIAN RESTAURANT IT IS LIKE BACKTOBACK GRAND SLAMS BY THE OPPOSING TEAM A FEW DOORS FROM STRIDE RITE IN ROXBURY EDWARD WILLIAMS SAYS HIS HAIR SALON IS STRUGGLING WE DID 150 CLIENTS A WEEK NOW I'M LUCKY TO DO 25 HE SAYS IN THE WAKE OF THE CLOSINGS COMMUNITY LEADERS CALLED A HUDDLE SEEKING WAYS TO STIMULATE NEW BUSINESSES AND HOLD ONTO EXISTING ONES BUT ONE RAY OF HOPE A PROPOSED BIOTECHNOLOGY CENTER THAT WILL CREATE 150 JOBS IS LITTLE CONSOLATION TO STRIDE RITE EMPLOYEES MANY SPEAK LITTLE OR NO ENGLISH AND LACK THE SKILLS THAT EVEN ENTRYLEVEL JOBS AT THE CENTER WILL REQUIRE STRIDE RITE EMPLOYEES NEED 3000 WORTH OF EDUCATION TO HAVE HOPE OF GETTING IN THE DOOR SAYS SUE SWARTZ DIRECTOR OF THE BOSTON WORKERS ASSISTANCE CENTER BUT HER PROJECT ALLOWS FOR ONLY HALF THAT HOW CAN I HOPE TO FIND A JOB WONDERS ALBERTO ANDRADE A 60YEAROLD NATIVE OF CAPE VERDE WHOSE EIGHT YEARS AT STRIDE RITE DON'T QUALIFY HIM FOR A PENSION THE TALK OF SCHOOLING DRAWS LOOKS OF AMUSEMENT FROM A FEW WORKERS WITH EIGHT CHILDREN MR BRANDAO A SORTER AT THE WAREHOUSE SAYS HE MUST WORK AN AVERAGE OF 14 HOURS OVERTIME A WEEK TO MAKE ENDS MEET WHO WILL FEED MY CHILDREN HE ASKS IN THICKLY ACCENTED ENGLISH THE APPROXIMATELY 500 EMPLOYEES AT THE ROXBURY AND NEW BEDFORD FACILITIES COULD REQUEST TRANSFERS TO KENTUCKY BUT WOULD COMPETE WITH LOCAL APPLICANTS FOR THE 275 POSITIONS MANY PROBABLY WON'T EVEN TRY WHY WOULD WE WANT TO GO THERE SAYS CAROL PITTA AN INVENTORY CONTROLLER AT NEW BEDFORD THERE WON'T BE A UNION THE PAY WILL BE LESS AND WHAT HAPPENS IF IN TWO MONTHS THEY DON'T WANT YOU WHO'LL PAY MY WAY HOME REALIZING THAT ABOUT 250 COWORKERS WILL SOON FLOOD AN ALREADYTIGHT JOB MARKET TOM CAMARA A SHOP STEWARD IN NEW BEDFORD IS ALREADY POUNDING THE PAVEMENT HE WAS UNEMPLOYED MORE THAN A YEAR BEFORE LANDING A JOB AT STRIDE RITE TWO YEARS AGO WHAT WILL LIFE BE LIKE AFTER STRIDE RITE DON'T KNOW HE SHRUGS ONE THING'S FOR SURE IT'S GOING TO BE TOUGH MR CAMARA WON'T GET MUCH DISAGREEMENT FROM PEOPLE IN TIPTON EVEN THOUGH THE FEDERAL GOVERNMENT OFFERED THEM RETRAINING BECAUSE THE JOBS LOST IN MISSOURI WENT ABROAD NOT ALL THE UNEMPLOYED COULD TAKE ADVANTAGE OF THE PROGRAMS IT COSTS 80 A WEEK FOR A BABY SITTER AND I'M GETTING 175 A WEEK IN UNEMPLOYMENT ASSISTANCE EXPLAINS ANITA BRACHT A FORMER STRIDE RITE EMPLOYEE IN TIPTON WHO HAS FOUR CHILDREN HER HUSBAND DONNY WORKED AT STRIDE RITE TOO AND ALSO IS UNEMPLOYED HE'S TRIED EVERYTHING MRS BRACHT SAYS THE UNION TELLS HIM THERE ARE 500 PEOPLE ON THE WAITING LIST FOR JOBS CONTRACTED BY THE UNION WITH THEIR UNEMPLOYMENT BENEFITS NEARING AN END SHE ADDS I'M ABOUT READY TO PANIC AMONG THE MANY LESSONS LEARNED FROM THE CLOSINGS ONE HAS STRUCK ESPECIALLY CLOSE TO HOME FOR MR BRANDAO IN ROXBURY A 70YEAROLD IRISH IMMIGRANT WHO RENTED A ROOM FROM HIM DIED RECENTLY LEAVING BEHIND A 32YEAROLD MENTALLY DISABLED SON I DON'T HAVE THE HEART TO ASK HIM TO LEAVE HE SAYS WITH THE HELP OF A TRANSLATOR IF I DID I WOULD BE DOING TO HIM WHAT MY COMPANY IS DOING TO ME SEE RELATED LETTER LETTERS TO THE EDITOR MAKING A GOOD PRODUCT IN THE GOOD OLE USA WSJ JULY 7 1993 9305280039 YY93 MM07 9307070006 930517 CORPORATE FOCUS GREAT WESTERN FINANCIAL SEEKS TO CHART A FRESH COURSE NO 2 US THRIFT FACES BURDEN OF SOURED HOME LOANS BLOATED OVERHEAD BY RALPH T KING JR STAFF REPORTER OF THE WALL STREET JOURNAL CHATSWORTH CALIF GREAT WESTERN FINANCIAL CORP IS ADRIFT JUDGING FROM ITS FINANCIAL RESULTS AND THE MAN AT THE HELM IS JAMES MONTGOMERY SOME ANALYSTS THINK MR MONTGOMERY CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE NATION'S SECONDLARGEST THRIFT SINCE 1981 ISN'T PAYING ENOUGH ATTENTION MR MONTGOMERY 58 YEARS OLD AND RECENTLY REMARRIED IS CONSTRUCTING A LOGCABINSTYLE HIDEAWAY NEAR PARK CITY UTAH PLAYS TO A 10 HANDICAP ON THE GOLF COURSE NEAR ANOTHER HOME IN PALM DESERT AND TRAVELS FREQUENTLY TO WASHINGTON TO VISIT REPUBLICAN PALS SUCH AS SEN ROBERT DOLE AND ATTEND BOARD MEETINGS OF A COMPETITOR FEDERAL HOME LOAN MORTGAGE CORP GREAT WESTERN OWNS NOT ONE BUT TWO CORPORATE JETS TO SHUTTLE HIM AROUND HIS ABSENCES ARE NOTED SAYS GARETH PLANK AN ANALYST WITH MABON SECURITIES CORP IN SAN FRANCISCO IN OTHER TROUBLED COMPANIES SENIOR MANAGEMENT IS VISIBLE DOWN IN THE HOLD STABILIZING CARGO YOU DON'T GET THAT SAME SENSE FROM JIM MONTGOMERY DESPITE THESE DISTRACTIONS THE LANKY URBANE MR MONTGOMERY RETAINS THE KEY DECISIONMAKING AND STRATEGYSETTING ROLE AT GREAT WESTERN THOUGH SENIOR MANAGERS RUN DAILY OPERATIONS IT'S NOT EASY TO LET GO HE SAYS EVIDENCE ABOUNDS THAT THE GIANT S&L IS DRIFTING OVER THE PAST FOUR YEARS THE THRIFT'S RETURN ON ASSETS AVERAGED 039 LESS THAN HALF THAT OF THE MOST PROFITABLE WELLRUN LARGE THRIFT GOLDEN WEST FINANCIAL CORP OF OAKLAND CALIF MEANWHILE GREAT WESTERN'S GROWTH HAS STALLED ASSETS CURRENTLY TOTAL 379 BILLION AND SO HAS ITS STOCK PRICE IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE GREAT WESTERN CLOSED AT 1625 UNCHANGED THAT'S DOWN FROM A PEAK OF 24625 IN 1989 BY CONTRAST GOLDEN WEST IS TRADING ABOUT 25 ABOVE ITS 1989 HIGH IN THE FIRST QUARTER GREAT WESTERN'S NET FELL 45 TO 452 MILLION OR 30 CENTS A SHARE FROM 816 MILLION OR 60 CENTS A SHARE A YEAR EARLIER THE YEAREARLIER RESULTS INCLUDED A ONETIME GAIN OF 311 MILLION FOR INCOMETAX ACCOUNTING CHANGES ANALYSTS PRAISE MR MONTGOMERY FOR GUIDING GREAT WESTERN THROUGH THE S&L DEBACLE OF THE 1980S AND FOR POPULARIZING THE ADJUSTABLERATE MORTGAGE IN 1991 HE INTRODUCED AN INDEX FOR ARM LOANS DESIGNED TO APPEAL TO CUSTOMERS IN BOTH CALIFORNIA AND FLORIDA GREAT WESTERN'S STRONGHOLDS BUT AS CALIFORNIA'S BRUTAL REAL ESTATE RECESSION GRINDS ON HE HAS BEEN SLOW TO TIGHTEN UNDERWRITING POLICIES SHED PROBLEM ASSETS AND CUT COSTS HF AHMANSON INC ITS LARGER LOS ANGELES RIVAL AND THE BIGGEST US THRIFT HAS DONE A SOMEWHAT BETTER JOB ON ALL COUNTS FOR EXAMPLE AHMANSON'S SOURED ASSETS HAVE DECLINED IN THE PAST TWO QUARTERS TO 445 OF TOTAL ASSETS WHILE GREAT WESTERN'S CONTINUE TO RISE HITTING 543 IN THE FIRST QUARTER STILL BOTH PALE BESIDE CONSERVATIVE GOLDEN WEST WITH A MERE 138 OF PROBLEM ASSETS GREAT WESTERN'S WOES BOIL DOWN TO HAVING PUT MOST OF ITS EGGS IN A ROTTENEGG BASKET SAYS MONTGOMERY SECURITIES ANALYST JOSEPH JOLSON SOME 88 OF ITS LOANS ARE ON SINGLEFAMILY HOMES BORROWERS CLUSTER AT THE LOWTOMODERATE END OF THE INCOME SCALE AND MOST LIVE IN SOUTHERN CALIFORNIA COMPANY OFFICIALS SAY THIS GROUP HAS BEEN HARDHIT BY THE RECESSION COUPLED WITH MASSIVE LAYOFFS IN THE DEFENSE AEROSPACE AND BANKING INDUSTRIES TO DOMINATE THE LOWEND MARKET GREAT WESTERN OFFERS MORTGAGES WITH LOW DOWN PAYMENTS ABOUT A QUARTER OF ITS HOMELOAN PORTFOLIO AND 10 OF NEW LOANS ARE FOR 90 OF THE PROPERTY'S VALUE THAT MEANS VALUES NEED ONLY DIP 4 TO WIPE OUT THE BORROWER'S INITIAL EQUITY IF SELLING COSTS ARE INCLUDED HOWEVER HOME VALUES IN PARTS OF SOUTHERN CALIFORNIA ARE OFF AS MUCH AS 35 FROM THEIR PEAK A FEW YEARS AGO AS A RESULT THE DEFAULT RATE ON THIS TYPE OF LOAN IS MORE THAN SIX TIMES THAT OF THE STANDARD MORTGAGE REQUIRING A MINIMUM 20 CASH DOWN PAYMENT ACCORDING TO HISTORICAL INDUSTRY DATA COMPILED BY JONATHAN GRAY A SANFORD C BERNSTEIN & CO ANALYST DEFAULTS LOANS MORE THAN 90 DAYS PAST DUE ARE FLOODING INTO GREAT WESTERN AT THE RATE OF 100 MILLION PER MONTH WORSE AS BORROWERS FAIL TO CATCH UP ON PAYMENTS THE THRIFT ENDS UP FORECLOSING ON 55 OF DELINQUENCIES AND THE PERCENTAGE IS STILL GOING UP THE AVERAGE LOANBALANCE LOSS ON A FORECLOSURE IS 16 THE NUMBERS ARE A LITTLE UGLY SAYS CARL GEUTHER CHIEF FINANCIAL OFFICER NOTING THAT ACTUAL LOSSES ARE DIMINISHED BY THE HIGHER INTEREST RATES AND FEES THE THRIFT CHARGES PLUS IN SOME CASES MORTGAGE INSURANCE AHMANSON IN CONTRAST STOPPED MAKING LOW DOWN PAYMENT LOANS ALTOGETHER IN 1988 AHMANSON HAS ALSO BEEN MORE AGGRESSIVE AND INNOVATIVE IN SELLING FORECLOSED HOMES LIQUIDATION THERE IS THE RESPONSIBILITY OF THE BRANCH THAT MADE THE LOAN AND BRANCH MANAGERS ARE PENALIZED AS INVENTORY BUILDS GREAT WESTERN IS CONSIDERING AHMANSON'S APPROACH BUT FOR NOW THAT TASK IS STILL HANDLED BY A CENTRALIZED STAFF WE MOVE SLOWER THAN OTHERS WE TEND TO TEST AND EXAMINE THINGS SAYS MR MONTGOMERY BUT I DON'T THINK WE'RE STODGY IN ANY EVENT GREAT WESTERN HAS DAWDLED IN UNLOADING SICK COMMERCIAL REAL ESTATE WHICH ACCOUNTS FOR 39 OF BAD ASSETS IN 1992'S FOURTH QUARTER THE COMPANY TOOK ITS THIRD BIG WRITEDOWN ON SUCH NONPERFORMERS SINCE 1989 TO ABOUT 60 CENTS ON THE DOLLAR BY ALMOST ANY MEASURE GREAT WESTERN HAS BLOATED OVERHEAD IN THE FIRST QUARTER ITS NONINTEREST EXPENSE CAME TO 607 OF NET INTEREST INCOME AND OTHER INCOME THAT'S ALMOST DOUBLE THE LEVEL AT GOLDEN WEST AND IT EXCEEDS SAN FRANCISCOBASED WELLS FARGO & CO'S 575 IN THE PERIOD TOP EXECUTIVES ARE HIGHLY PAID IN 1992 WHEN THE COMPANY'S NET INCOME PLUNGED 82 MR MONTGOMERY'S TOTAL COMPENSATION WAS UNCHANGED FROM 1991 AT 167 MILLION MR MONTGOMERY COMPARES GREAT WESTERN'S EXPENSES TO THOSE OF A COMMERCIAL BANK RATHER THAN A THRIFT LIKE A BANK HE SAYS IT HAS A LARGE NUMBER OF CHECKING ACCOUNTS AND THESE ARE EXPENSIVE TO ATTRACT AND SERVICE HIS LONGTERM STRATEGY IS TO COMBINE THE BEST OF BOTH WORLDS MAKING LOWRISK LOANS LIKE A THRIFT WHILE TAKING IN HIGHMARGIN DEPOSITS LIKE A BANK PERHAPS CLOSER AT HAND IS CLEAR IMPROVEMENT IN CREDIT QUALITY AND IN THE CALIFORNIA ECONOMY OF WHICH GREAT WESTERN IS A REFLECTION DELINQUENCIES OF 90 DAYS OR LESS FELL 19 IN THE FIRST QUARTER AND NONPERFORMING ASSETS ALSO DECLINED BETWEEN FEBRUARY AND MARCH MR MONTGOMERY ISN'T MAKING ANY TURNAROUND PREDICTIONS THE GAME PLAN IS TO GET CREDITQUALITY CONCERNS BEHIND US HE SAYS SEE RELATED LETTER LETTERS TO THE EDITOR STEERING A FIRM COURSE OVER TROUBLED WATERS WSJ JULY 7 1993 9305170014 YY93 MM07 9307060143 930611 POLITICS & POLICY AMERICANS FEEL FAMILIES AND VALUES ARE ERODING BUT THEY DISAGREE OVER THE CAUSES AND SOLUTIONS BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL SHARON NUTBROWN IS DEEPLY WORRIED ABOUT DISINTEGRATING FAMILIES AND DECLINING VALUES IN AMERICA AND SHE THINKS ECONOMIC PRESSURES ARE TO BLAME A LOT OF IT IS THAT BOTH PARENTS HAVE TO WORK SAYS THE PENNSYLVANIA MOTHER OF TWO A DEMOCRAT A LOT OF IT IS THAT KIDS ARE LEFT HOME A LOT HAROLD PETERSON IS EQUALLY CONVINCED THAT FAMILIES AND VALUES ARE DETERIORATING IN AMERICA BUT DISAGREES COMPLETELY THAT ECONOMICS IS THE ROOT CAUSE IT'S A DECLINE IN MORALS DECLARES THE OKLAHOMA FATHER OF FOUR A REPUBLICAN ECONOMICS IS AN EXCUSE THOSE TWO AMERICANS NEATLY FRAME ONE OF THE COUNTRY'S MOST IMPORTANT TRENDS THERE APPEARS TO BE A GROWING BELIEF ACROSS THE POLITICAL SPECTRUM THAT SOCIAL VALUES ARE ERODING AND THAT THE DECLINE OF THE FAMILY IS AT THE HEART OF THE PROBLEM WHILE THERE SEEMS TO BE AN EMERGING CONSENSUS ON THOSE FUNDAMENTAL POINTS THOUGH THERE'S LITTLE AGREEMENT ON WHAT TO DO ABOUT THE PROBLEM OR WHAT GOVERNMENT ACTIONS MIGHT HELP THAT APPEARS TO BE THE CASE BECAUSE OF A DEEP SPLIT AMONG AMERICANS ON WHETHER TODAY'S SOCIAL PROBLEMS ARE CAUSED BY ECONOMIC STRESSES AND STRAINS THAT TEAR AT THE FABRIC OF THE TRADITIONAL FAMILY STRUCTURE OR BY MORE BASIC CHANGES IN THE SOUL OF THE COUNTRY THOSE CONCLUSIONS EMERGE FROM A SPECIAL NEW WALL STREET JOURNAL/NBC NEWS POLL EXPLORING SOCIAL AND CULTURAL QUESTIONS AS WELL AS FROM INTERVIEWS WITH VOTERS AND POLITICAL LEADERS IN THE POLL AMERICANS EXPRESS DEEP CONCERNS ABOUT A RANGE OF SOCIAL PROBLEMS BUT WHEN ASKED WHETHER THEY THINK THOSE PROBLEMS ARE MAINLY THE RESULT OF A DECLINE IN MORAL VALUES OR OF FINANCIAL PRESSURES AND STRAINS ON FAMILIES AMERICANS SPLIT DOWN THE MIDDLE FINANCIAL PRESSURES ARE CITED BY 45 WHILE 43 CITE A DECLINE IN MORAL VALUES DEMOCRATS LIBERALS AND THOSE WITH CHILDREN UNDER 18 ARE MORE LIKELY TO CITE FINANCIAL PRESSURES WHILE REPUBLICANS CONSERVATIVES AND THOSE WITHOUT CHILDREN ARE MORE LIKELY TO CITE MORAL DECLINE BECAUSE OF THE BASIC SPLIT OVER THE CAUSE OF THE PROBLEM THE GROWING CONCERN ABOUT CULTURAL ISSUES DOESN'T HAVE ANY NEAT PREDICTABLE POLITICAL IMPACT EVEN WITHIN THE PARTIES THE QUESTION OF HOW TO HANDLE THE RISE OF CULTURAL ISSUES IS CREATING SPLITS REPUBLICAN MODERATES ARE FEUDING WITH THE PARTY'S RELIGIOUS RIGHT WING PARTICULARLY ON ABORTION DEMOCRATS ARE SPLIT OVER HOW MUCH RESPONSIBILITY THE GOVERNMENT BEARS FOR SOCIAL PROBLEMS AND HOW MUCH GOVERNMENT SHOULD SEEK TO MAKE INDIVIDUALS PAY A PRICE FOR THEIR OWN ACTIONS IT'S LONG BEEN ASSUMED THAT CULTURALVALUES ISSUES GENERALLY BENEFIT REPUBLICANS WHO MADE A POINT IN LAST YEAR'S CAMPAIGN OF PORTRAYING THEMSELVES AS CHAMPIONS OF TRADITIONAL FAMILY VALUES AND IT'S TRUE THAT EVEN SOME DEMOCRATS SAY THEY TRUST REPUBLICANS MORE ON QUESTIONS OF CULTURAL VALUES YET THE NEW POLL SUGGESTS THAT SOME DEMOCRATIC PROPOSALS FOR STRENGTHENING THE SOCIAL FABRIC ACTUALLY HAVE MORE APPEAL THAN REPUBLICAN APPROACHES FOR INSTANCE WHEN ASKED TO ESTIMATE THE EFFECTIVENESS OF VARIOUS STEPS THE GOVERNMENT MIGHT TAKE TO STRENGTHEN FAMILIES AND FAMILY VALUES 67 THINK IT'S VERY EFFECTIVE TO REQUIRE EMPLOYERS TO ALLOW PARENTS TO TAKE LEAVE FROM WORK TO CARE FOR A NEW BABY OR SICK RELATIVE A MEASURE THAT PRESIDENT BUSH FOUGHT BUT PRESIDENT CLINTON SIGNED INTO LAW AMERICANS VOICE THE NEXTHIGHEST LEVEL OF ENTHUSIASM 64 FOR GOVERNMENT PROGRAMS TO PROVIDE HIGHQUALITY DAY CARE FOR FAMILIES IN WHICH BOTH PARENTS WORK ANOTHER IDEA PUSHED HARDER BY DEMOCRATS MEANWHILE 55 OF AMERICANS AGREE EITHER STRONGLY OR SOMEWHAT WITH THE IDEA OF DISTRIBUTING CONDOMS IN SCHOOLS TO PREVENT DISEASES AND UNWANTED PREGNANCIES AN IDEA ANATHEMA TO SOME CONSERVATIVE REPUBLICANS BUT JUST 30 SAY THEY THINK PASSING TAX INCENTIVES TO HELP MOTHERS OF YOUNG CHILDREN STAY IN THE HOME WOULD BE VERY EFFECTIVE AND ONLY 31 SAY THAT PROHIBITING ABORTION EXCEPT IN THE CASES OF RAPE INCEST OR TO PROTECT THE LIFE OF THE WOMAN WOULD BE VERY EFFECTIVE IN STRENGTHENING FAMILIES AND FAMILY VALUES THOSE TEND TO BE REPUBLICAN APPROACHES WHEN ASKED ABOUT SEVERAL ACTIONS THE GOVERNMENT MIGHT TAKE TO STRENGTHEN FAMILIES AND FAMILY VALUES THE PUBLIC APPEARS TO SHOW STRONGER SUPPORT FOR SOCIAL AND ECONOMIC ASSISTANCE PROGRAMS FOR FAMILIES THAN THEY DO FOR SEVERAL SOCIALLY CONSERVATIVE PROPOSALS SAY DEMOCRATIC POLLSTER PETER HART AND REPUBLICAN POLLSTER ROBERT TEETER WHO JOINTLY CONDUCTED THE JOURNAL/NBC POLL IN SHORT REPUBLICANS SEEM TO HAVE DONE A BETTER JOB OF FOCUSING ATTENTION ON A POTENT ISSUE WHILE DEMOCRATS MAY HAVE DONE A BETTER JOB OF CRAFTING SOME POLITICALLY POPULAR SOLUTIONS WHAT SEEMS BEYOND DISPUTE IS THAT THE LOOSELY CONNECTED WEB OF ISSUES IDENTIFIED AS SOCIAL OR VALUES ISSUES IS BECOMING MORE POLITICALLY POTENT THE TERM SOCIAL ISSUES ONCE REFERRED MAINLY TO FAIRLY NARROW TOPICS SUCH AS ABORTION RIGHTS OR PRAYER IN SCHOOLS NOW THERE SEEMS TO BE A DIFFERENT KIND OF CONCERN GROWING NOT OUT OF NARROW ISSUES BUT OUT OF BROADER FEARS THAT SUCH PROBLEMS AS HIGH MURDER RATES AND PROLIFERATING SINGLEPARENT FAMILIES INDICATE THAT THE SOCIAL ORDER IS FRAYING SUCH FIGURES AS DEMOCRATIC SEN PATRICK MOYNIHAN OF NEW YORK AND REPUBLICAN FORMER EDUCATION SECRETARY WILLIAM BENNETT HAVE BEEN SOUNDING THE ALARM BELL IN RECENT MONTHS THE GENERAL PERCEPTION WHICH IS BORNE OUT BY REALITY IS THAT THINGS ARE GETTING WORSE MAINTAINS MR BENNETT THE RESULT IS THAT EVEN THOSE WHO DEEPLY DISAGREE ABOUT HOW TO HANDLE SOCIAL PROBLEMS ARE COMING TO AGREE ON THE IMPORTANCE OF VALUES ISSUES THE PROBLEMS THAT PARENTS IN PARTICULAR ARE FACING EVERY DAY IN TERMS OF THE KIND OF LIFE THEY'RE ABLE TO BUILD FOR THEIR FAMILY AND THE KIND OF FUTURE THEY WANT THEIR CHIDREN TO HAVE ARE THE MOST POTENT SERIES OF ISSUES OUT THERE TODAY SAYS ARTHUR KROPP PRESIDENT OF PEOPLE FOR THE AMERICAN WAY A LIBERAL GROUP THAT HAS CLASHED WITH THE CHRISTIAN FUNDAMENTALIST MOVEMENT OVER HOW TO TACKLE SOCIAL PROBLEMS INDEED 75 OF AMERICANS IN THE NEW JOURNAL/NBC POLL STRONGLY AGREE WITH THE STATEMENT THAT TRADITIONAL VALUES HAVE GROWN WEAKER AND NEED TO BE STRENGTHENED AMONG REPUBLICANS 82 STRONGLY AGREE WHILE 69 OF DEMOCRATS DO SO IN ROUGHLY EQUAL PERCENTAGES STRONG AGREEMENT IS VOICED BY BLACKS AND WHITES MEN AND WOMEN CATHOLICS AND PROTESTANTS AS A GENERAL PROPOSITION AMERICANS DON'T TEND TO THINK GOVERNMENT INTRUSION INTO PERSONAL LIVES IS THE ANSWER EVEN ON THE EXPLOSIVE ISSUE OF GAYS IN THE MILITARY MANY WHO DON'T APPROVE OF GAY LIFESTYLES DON'T PARTICULARLY WANT THE GOVERNMENT GETTING TOO DEEPLY INVOLVED IN PERSONAL QUESTIONS ROUGHLY HALF OF THOSE SURVEYED AGREE EITHER STRONGLY OR SOMEWHAT WITH THE PROPOSITION THAT HOMOSEXUALITY IS IMMORAL AND 49 SAY THEY OPPOSE ALLOWING OPENLY GAY MEN AND LESBIANS TO SERVE IN THE MILITARY BUT WHEN PRESENTED WITH A COMPROMISE SOLUTION AMERICANS TEND TO ACCEPT IT WHEN ASKED WHETHER GAYS AND LESBIANS SHOULD BE ALLOWED TO SERVE OPENLY IN THE MILITARY AS LONG AS THEY FOLLOW THE SAME RULES OF CONDUCT AS OTHER PERSONNEL WHILE ON BASE 40 AGREE WITH THAT FORMULA AND 38 ACCEPT A SOLUTION UNDER WHICH GAYS AND LESBIANS WOULD BE ALLOWED TO SERVE AS LONG AS THEY KEEP THEIR HOMOSEXUALITY PRIVATE WHILE MILITARY AUTHORITIES WOULDN'T ASK ABOUT SEXUAL ORIENTATION OVERALL 77 AGREE TO SOME DEGREE THAT THE GOVERNMENT SHOULDN'T PASS LAWS REGULATING MORALITY AND HOW PEOPLE LIVE THEIR PRIVATE LIVES AND 63 DISAGREE WITH THE IDEA OF BANNING BOOKS THAT CONTAIN EXTREME IDEAS FROM PUBLIC SCHOOL LIBRARIES INCLUDING 39 WHO SAY THEY STRONGLY DISAGREE WITH THE IDEA BUT IN SOME SPECIFIC AREAS AMERICANS DO SEEM TO WANT THE GOVERNMENT TO ACT MORE THAN HALF SAY THAT PASSING STRICTER LAWS REGULATING VIOLENCE AND SEX ON TELEVISION AND IN THE MOVIES WOULD BE A VERY EFFECTIVE WAY TO STRENGTHEN FAMILIES AND FAMILY VALUES EVEN A COMMERCIAL FOR JEANS INVOLVES SEXUAL OVERTONES COMPLAINS MS NUTBROWN THE PENNSYLVANIA MOTHER IN INTERVIEWS WITH INDIVIDUAL AMERICANS SURVEYED IN THE JOURNAL/NBC POLL MANY ALSO SAY THEY WANT THE WELFARE SYSTEM OVERHAULED TO REDUCE THE NUMBER OF FAMILIES THAT REMAIN ON THE ROLLS FOR YEARS AT A TIME WELFARE REFORM IS SOMETHING NEW THEY SHOULD START ON THAT GET PEOPLE BACK TO WORK SAYS EUGENE HALE A 38YEAROLD NEW YORKER REVAMP THE WHOLE SYSTEM AND START OVER THESE PEOPLE ARE GETTING AWAY WITH MURDER BUT OVERALL AMERICANS SEEM TO BE VAGUELY SEARCHING FOR SOME FORMULA TO RESTORE AN OLDFASHIONED NOTION OF FAMILY THE FAMILY USED TO BE THE CORE OF SOCIETY AND THAT'S NOT THE CASE ANYMORE LAMENTS JACKIE ALEXANDER A BERGEN COUNTY NJ WOMAN WHO HAS JUST GIVEN BIRTH TO HER SECOND CHILD SOME POLITICIANS ARE CLEARLY ABLE TO CAPITALIZE ON THOSE SENTIMENTS FOR INSTANCE MICHAEL FARRIS A CHRISTIAN FUNDAMENTALIST LAWYER JUST WON THE REPUBLICAN NOMINATION FOR LIEUTENANT GOVERNOR IN VIRGINIA IN THE 1980S MR FARRIS DEFENDED A GROUP OF TENNESSEE PARENTS WHO REFUSED TO LET THEIR CHILDREN READ A SERIES OF PUBLICSCHOOL TEXTBOOKS THAT THEY THOUGHT ENCOURAGED NONCHRISTIAN IDEAS HE HIMSELF IS A LEADER OF A NATIONAL HOMESCHOOLING MOVEMENT THESE DAYS SAYS MR FARRIS FAMILIES ARE FEELING THE EFFECTS OF THE COLLAPSE OF A LOT OF THE TRADITIONS AND A LOT OF THE CERTAINTIES THAT WE HAD IN SOCIETY THE WALL STREET JOURNAL/NBC NEWS POLL WAS BASED ON NATIONWIDE TELEPHONE INTERVIEWS OF 1502 ADULTS CONDUCTED SATURDAY THROUGH TUESDAY BY THE POLLING ORGANIZATIONS OF PETER HART AND ROBERT TEETER THE SAMPLE WAS DRAWN FROM 315 RANDOMLY SELECTED GEOGRAPHIC POINTS IN THE CONTINENTAL US EACH REGION WAS REPRESENTED IN PROPORTION TO ITS POPULATION HOUSEHOLDS WERE SELECTED BY A METHOD THAT GAVE ALL TELEPHONE NUMBERS LISTED AND UNLISTED AN EQUAL CHANCE OF BEING INCLUDED ONE ADULT 18 YEARS OR OLDER WAS SELECTED FROM EACH HOUSEHOLD BY A PROCEDURE TO PROVIDE THE CORRECT NUMBER OF MALE AND FEMALE RESPONDENTS THE RESULTS OF THE SURVEY WERE MINIMALLY WEIGHTED BY INCOME EDUCATION AND AGE TO ASSURE THAT THE POLL ACCURATELY REFLECTS REGISTERED VOTERS NATIONWIDE CHANCES ARE 19 OUT OF 20 THAT IF ALL ADULTS WITH TELEPHONES IN THE US HAD BEEN SURVEYED THE FINDINGS WOULD DIFFER FROM THESE POLL RESULTS BY NO MORE THAN 26 PERCENTAGE POINTS IN EITHER DIRECTION A LIMITED NUMBER OF QUESTIONS WERE ASKED OF HALF THE SAMPLE FOR THESE THE MARGIN OF ERROR WAS 37 PERCENTAGE POINTS THE MARGIN FOR ANY SUBGROUP WOULD DEPEND ON THE SIZE OF THAT GROUP ARE SOCIAL AND ECONOMIC PROBLEMS THAT FACE AMERICA MAINLY THE RESULT OF A DECLINE IN MORAL VALUES OR MAINLY THE RESULT OF FINANCIAL PRESSURES AND STRAINS ON THE FAMILY WHICH IS CLOSER TO YOUR POSITION ON ALLOWING GAYS AND LESBIANS IN THE MILTARY SEE RELATED LETTERS LETTERS TO THE EDITOR A GENERATION OF DUMMIES WSJ JULY 6 1993 9306110127 YY93 MM07 9307060091 930611 THE AGE OF IGNORANCE BY HERBERT STEIN I SUPPOSE THAT I AM AS TUNED IN TO THE INFORMATION AGE AS THE NEXT FELLOW I GET THREE DAILY NEWSPAPERS AND SEVERAL MAGAZINES I WATCH ALL THE TALK SHOWS THE NEWS SHOWS THE TELEVISED HEARINGS OF CONGRESSIONAL COMMITTEES AND EVEN ON OCCASION TELEVISED PERFORMANCES OF THE SENATE OR THE HOUSE I HAVE A MODEM AND INSTANT ACCESS TO MILLIONS OF BYTES OF INFORMATION I AM ON THE FREE MAILING LISTS OF INNUMERABLE ORGANIZATIONS KINDLY SEEKING TO ENLIGHTEN ME I WORK AND TALK ALMOST EVERY DAY WITH WELLINFORMED PEOPLE AND YET I AM MORE AND MORE IMPRESSED BY MY IGNORANCE I HAVE THE IMPRESSION THAT THE BODY OF KNOWLEDGE IS THE AREA WITHIN A CIRCLE WHOSE RADIUS IS CONSTANTLY LENGTHENING BUT I AM ON THE CIRCUMFERENCE OF THE CIRCLE WHERE KNOWLEDGE FADES OFF INTO IGNORANCE AND THE LENGTH OF THE CIRCUMFERENCE IS RISING AS THE RADIUS RISES THE MORE I LEARN THE MORE I BECOME AWARE OF HOW MUCH I OUGHT TO KNOW BUT DON'T SO I AM NOT DENYING THAT WE KNOW MORE THAN WE DID A HUNDRED YEARS AGO BUT I DOUBT THAT WE KNOW MORE RELATIVE TO WHAT WE EXPECT AND ARE EXPECTED TO KNOW AFTER MONTHS OF WATCHING MACNEIL/LEHRER I FINALLY LEARNED APPROXIMATELY WHERE BOSNIAHERZEGOVINA IS THAT LIKE GAUL IT IS DIVIDED INTO THREE PARTS AND THAT THERE IS NO I BEFORE THE A IN HERZEGOVINA BUT KNOWING THAT I REALIZED THAT I WOULD HAVE TO KNOW ENORMOUSLY MORE EVEN TO BEGIN TO THINK ABOUT WHAT US POLICY SHOULD BE WHICH IT IS PRESUMABLY MY DUTY AS A CITIZEN TO THINK ABOUT I DIDN'T KNOW HOW TO FIND OUT WHAT I WOULD HAVE NEEDED TO KNOW AND I HAD BARELY SCRATCHED THE SURFACE ON BOSNIAHERZEGOVINA BEFORE I DISCOVERED THAT THERE WAS ANOTHER PLACE KOSOVO WHICH I HAD NEVER EVEN HEARD ABOUT THAT WAS CRITICAL TO THE WHOLE STORY NOW I UNDERSTAND THAT PRESIDENT CLINTON IS TELLING US THAT WE CAN STOP THINKING ABOUT BOSNIAHERZEGOVINA BECAUSE THE QUESTION OF DOING SOMETHING ABOUT IT IS DEAD BUT I DON'T KNOW WHETHER THAT IS WHAT HE MEANS TO TELL US OR WHETHER HE WOULD BE RIGHT TO TELL US THAT EVEN IF I FORGET ABOUT THE BALKANS I HAVE A FULL SLATE OF THINGS THAT AS A RESPONSIBLE CITIZEN I OUGHT TO KNOW ABOUT BUT DON'T I WON'T EVEN MENTION CAMBODIA WHICH ARE THE KHMER ROUGE WILL ALWAYS BE A MYSTERY TO ME AND NOW THAT I MENTION IT I'M NOT SURE WHETHER THEY GO WITH CAMBODIA OR LAOS BUT THERE ARE MANY THINGS CLOSER TO HOME THAT I DON'T KNOW I DON'T KNOW WHETHER THE ISSUE OF GAYS IN THE MILITARY IS LIKE OR UNLIKE THE ISSUE OF BLACKS IN THE MILITARY I DON'T KNOW WHETHER PROF LEONARD JEFFRIES HAS A CONSTITUTIONAL RIGHT TO BE THE HEAD OF A DEPARTMENT AT CITY COLLEGE AND WHETHER A WOMAN HAS A CONSTITUTIONAL RIGHT TO HAVE AN ABORTION I DON'T KNOW WHETHER IF WE STOP GIVING AID TO UNMARRIED WOMEN WHO HAVE CHILDREN THERE WILL BE MORE OR FEWER CHILDREN LIVING IN POVERTY EVEN IN MY OWN FIELD THERE ARE IMPORTANT THINGS I DON'T KNOW I DON'T KNOW WHETHER INCREASING THE BUDGET DEFICIT STIMULATES OR DEPRESSES THE NATIONAL INCOME I DON'T KNOW WHETHER IT IS M2 OR M1 THAT CONTROLS THE LEVEL OF TOTAL SPENDING I DON'T KNOW BY HOW MUCH A 10 INCREASE IN THE TOP RATE OF INDIVIDUAL INCOME TAX WILL RAISE THE REVENUE I DON'T SAY THESE THINGS TO BRAG ABOUT MY IGNORANCE I BELIEVE THAT MOST PEOPLE ARE AS IGNORANT AS I AM ALTHOUGH THEY MAY NOT KNOW IT I AM ALWAYS AMAZED AT THE RESULTS OF PUBLIC OPINION POLLS THE PROPORTION OF PEOPLE WHO ANSWER DON'T KNOW IS USUALLY SOMETHING LIKE 1 WHEN IT REALLY SHOULD BE SOMETHING LIKE 100 I BELIEVE THAT IF YOU ASKED A SAMPLE OF AMERICANS WHAT IS THE TEMPERATURE OF MARS ABOUT 8 WOULD SAY THAT THEY DON'T KNOW THE EXPERTS ON TALK SHOWS ARE EVEN WORSE I HAVE WATCHED THOUSANDS OF HOURS OF TALK SHOWS AND I CAN'T REMEMBER ONE OF THE GUESTS EVER SAYING I DON'T KNOW I UNDERSTAND HOW THAT WORKS THE PRODUCER CALLS UP POTENTIAL GUESTS AND ASKS THEM HOW THEY WOULD ANSWER SAMPLE QUESTIONS ANY WHO SAY I DON'T KNOW ARE NOT INVITED TO APPEAR ON THE SHOW SO WHAT ARE WE TO DO ABOUT THIS IGNORANCE THE FIRST ANSWER TO THAT OF COURSE IS THAT I DON'T KNOW BUT THE SECOND ANSWER IS THAT WE WILL LIVE WITH IT AS WE DO WITH OTHER HUMAN FRAILTIES WHEN I HAD THE HONOR OF BEING A PROFESSOR AT THE UNIVERSITY OF VIRGINIA I WAS PLEASED TO GO AROUND QUOTING THOMAS JEFFERSON'S SAYING WHOEVER EXPECTS TO BE IGNORANT AND FREE IN A STATE OF CIVILIZATION EXPECTS WHAT NEVER WAS AND NEVER WILL BE BUT I NOW SUSPECT THAT OUR PATRON SAINT WAS STRETCHING IT A BIT THERE WE HAVE BEEN LIVING FOR SOME TIME IN IGNORANCE AND FREEDOM INDEED WITH INCREASING FREEDOM SINCE JEFFERSON'S TIME PERHAPS HE WOULD SAY THAT WE HAVE NOT BEEN IN A STATE OF CIVILIZATION BUT THERE MAY BE SOME PRECEPTS FOR HOW TO LIVE WITH OUR IGNORANCE ONE IS DIVERSIFICATION I HAVE LEARNED THAT I DO NOT KNOW HOW TO PICK WINNING STOCKS SO I HAVE CONCLUDED THAT I AM BEST OFF BUYING THE STANDARD & POOR'S 500 WE NEED TO SEEK THE EQUIVALENT IN PUBLIC AFFAIRS WE ARE NOT ABLE TO BUY A PRESIDENTIAL PACKAGE CONSISTING OF 43 CLINTON 38 BUSH AND 19 PEROT BUT WE DO ACHIEVE A CERTAIN KIND OF DIVERSIFICATION BY CHANGING PRESIDENTS AND PARTIES FROM TIME TO TIME ALTHOUGH ALL PRESIDENTS MAKE MISTAKES THEY DON'T ALL MAKE THE SAME MISTAKE AND BY CHANGING PRESIDENTS WE REDUCE THE RISK OF MISTAKES CUMULATING TO CATASTROPHE A SECOND RECOURSE IS SPECIALIZATION ALTHOUGH WE ARE ALL IGNORANT WE ARE NOT ALL EQUALLY IGNORANT ABOUT THE SAME THINGS THEREFORE WE SHOULD TRY TO RELY ON THE PEOPLE WHO ARE BEST INFORMED ABOUT THE QUESTION TO BE ANSWERED THAT IS A MAIN INGREDIENT OF THE CASE FOR FREE MARKETS BY AND LARGE THEY LEAVE DECISIONS TO PEOPLE WHO HAVE THE BEST OPPORTUNITY AND MOTIVATION TO BE INFORMED ABOUT THEM FOR EXAMPLE I BELIEVE THAT I KNOW MORE ABOUT CHOOSING A DOCTOR WHO WILL BE GOOD FOR ME THAN THE SECRETARY OF HEALTH AND HUMAN SERVICES DOES BUT THERE ARE SUBJECTS ON WHICH THE GOVERNMENT IS BETTER INFORMED THAN ANYONE ELSE OR AT LEAST THAN THE AVERAGE CITIZEN WHAT WOULD BE THE COSTS AND BENEFITS OF INTERVENING IN BOSNIAHERZEGOVINA FOR EXAMPLE ON SUCH SUBJECTS THE GOVERNMENT SHOULD PAY ATTENTION TO PUBLIC OPINION BUT SHOULD NOT FOLLOW SLAVISHLY THE UNINFORMED VOICE OF THE MAN IN THE STREET THERE IS PROBABLY VALUE IN FOLLOWING SIMPLE RULES OF POLICY LIKE BALANCE THE BUDGET AT HIGH EMPLOYMENT OR STABILIZE THE RATE OF GROWTH OF THE MONEY SUPPLY OR OLD TAXES ARE GOOD TAXES SUCH RULES ALL HAVE THEIR PROBLEMS BUT THEY DO SAVE EFFORT THAT WOULD BE WASTED IN TRYING TO KNOW THE UNKNOWABLE AND THEY PROVIDE A DEGREE OF PREDICTABILITY IN PUBLIC POLICY TO WHICH PRIVATE PARTIES CAN ADAPT EXPRESSIONS OF DOUBT THE GENTLE READER MAY ASK HOW I HAVE THE NERVE TO WRITE SO MUCH IF I AM SO IGNORANT WELL THERE ARE A FEW THINGS I KNOW THAT MANY OTHER PEOPLE DON'T MAINLY BECAUSE I HAVE BEEN IN THE ECONOMIC POLICY BUSINESS LONGER THAN MOST PEOPLE AND I REMEMBER THE 1947 TAX BILL THAT TRUMAN VETOED AND SUCH THINGS BUT ALSO I FIND THAT MOST OF THE THINGS I WRITE ABOUT THESE DAYS ARE EXPRESSIONS OF DOUBT ABOUT MATTERS ON WHICH OTHER PEOPLE SEEM TO BE SO CERTAIN I BELIEVE THAT IS A SERVICE I WAS IMPRESSED LONG AGO BY THE PROPOSITION IT AIN'T WHAT PEOPLE DON'T KNOW THAT HURTS IT'S THE THINGS THEY KNOW THAT AIN'T SO I HAVE ALWAYS ATTRIBUTED THAT TO ARTEMUS WARD BUT I CAN'T VERIFY THE SOURCE AND SO I DON'T KNOW A FORMER CHAIRMAN OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS MR STEIN IS A MEMBER OF THE JOURNAL'S BOARD OF CONTRIBUTORS AND AN AMERICAN ENTERPRISE INSTITUTE FELLOW SEE RELATED LETTERS LETTERS TO THE EDITOR A GENERATION OF DUMMIES WSJ JULY 6 1993 9306110096 YY93 MM07 9307060150 930518 HOW TO DRAFT A NATIONAL SERVICE PLAN BY NICOLA CLARK PRESIDENT CLINTON IS WINDING UP A WEEKLONG PROMOTIONAL TOUR OF HIS ECONOMIC PLAN AMONG WHAT HE HAS ADVERTISED AS INTERDEPENDENT PROPOSALS IS HIS PLAN FOR A NATIONAL SERVICE CORPS AN IDEA POLLSTERS HAVE FOUND TO BE EXTREMELY POPULAR WITH THE MTV GENERATION MORE THAN 4000 TWENTYSOMETHINGS HAVE ALREADY BESIEGED THE WHITE HOUSE WITH LETTERS VOLUNTEERING TO JOIN A MODEST PILOT CORPS OF 1000 THESE EAGER SOULS WOULD BE PUT TO WORK AS TEACHERS DAYCARE HEALTH AND ENVIRONMENTAL WORKERS IN RETURN FOR COLLEGE TUITION BENEFITS THE IDEA IS TO INCREASE THE CORPS TO 25000 BY NEXT YEAR AND WORK UP TO 150000 BY 1997 AND THE LATEST ESTIMATES PLACE THE COST OF THIS DOMESTIC PEACE CORPS AT ABOUT 95 BILLION THAT PRICE TAG IS STEEP COMPARED WITH THAT OF MR CLINTON'S FAVORITE MODEL COUNTRY GERMANY IN GERMANY 135000 NATIONAL SERVANTS EACH YEAR WORK IN HOSPITALS NURSING HOMES KINDERGARTENS AND OTHER PUBLIC AND NONPROFIT AGENCIES FOR THE BARGAINBASEMENT COST TO TAXPAYERS OF JUST OVER 3 BILLION A YEAR HOW DO THEY DO IT IT'S AN OLD IDEA CALLED THE DRAFT THE US CANADA JAPAN AND BRITAIN ARE THE ONLY MAJOR INDUSTRIAL COUNTRIES WITHOUT A DRAFT OF THE COUNTRIES THAT DO DRAFT MORE THAN THREEFOURTHS HAVE A NATIONAL SERVICE ALTERNATIVE FOR CONSCIENTIOUS OBJECTORS BUT WHILE PETITIONERS FOR NATIONAL SERVICE IN MOST COUNTRIES ARE SUBJECT TO AN INTENSIVE APPEAL PROCESS TO PROVE THEIR MORAL OR RELIGIOUS OBJECTIONS TO MILITARY SERVICE THIS HAS NOT BEEN THE CASE IN GERMANY SINCE 1985 WITH ITS MORE LENIENT POLICY GERMANY HAS BEEN ABLE TO ENTICE 40 OF DRAFTABLE MALES INTO ITS NATIONAL SERVICE CORPS AS AN ALTERNATIVE TO THE MILITARY GERMANS HAVE BECOME HUGELY DEPENDENT UPON THEIR ARMY OF CONSCRIPTED NATIONAL SERVANTS ZIVILDIENSTLEISTENDE OR ZIVIS AS THEY ARE CALLED ARE AGE 18 TO 28 THEY SERVE FOR 15 MONTHS THREE MONTHS LONGER THAN SOLDIERS AND THE GOVERNMENT PAYS THEM A CONSCRIPT'S WAGE THAT STARTS AT ABOUT 850 A DAY ROOM AND BOARD IF A ZIVI NEEDS IT ARE PAID BY THE EMPLOYING INSTITUTION THESE NATIONAL SERVICE CONSCRIPTS CAN BE FOUND WORKING IN THE HOMES OF GERMANY'S ELDERLY AND HANDICAPPED OR IN HOSPITAL EXAMINATION ROOMS MEASURING PATIENTS' TEMPERATURES AND BLOOD PRESSURE THEY ASSIST THE RED CROSS DURING DISASTERS AND KINDERGARTEN TEACHERS IN THEIR CLASSROOMS AND EVEN COUNT GEESE IN THE MARSHES NEAR THE BALTIC COAST ACCORDING TO A RECENT STUDY BY THE GERMAN ARMY'S SOCIAL SCIENCE INSTITUTE EVERY ZIVI HIRED IN PLACE OF A CIVILIAN SAVES AN AVERAGE OF 21000 ANNUALLY AND NOWHERE IS THIS CHEAP LABOR POOL MORE INTENSIVELY USED THAN IN GERMANY'S HEALTHCARE SECTOR MORE THAN HALF THE ZIVIS ARE EMPLOYED IN HEALTHCARERELATED JOBS AND A FULL 30 WORK IN GERMAN HOSPITALS SAVING 1 BILLION ANNUALLY THIS MAY SOUND LIKE A DROP IN THE BUCKET FOR A NEARLY 2 TRILLION ECONOMY BUT THE GERMANS CLEARLY RECOGNIZE THE IMPORTANT ROLE NATIONAL SERVANTS PLAY IN KEEPING THEIR SYSTEM AFLOAT IN ITS MORE THAN 30 YEARS OF EXISTENCE EXPLAINED MINISTER OF WOMEN AND YOUTH ANGELA MERKEL IN 1991 THE NATIONAL SERVICE HAS BECOME AN IMPORTANT AND FULLY LEGITIMIZED COMPONENT OF OUR SOCIAL REALITY IN AN ARTICLE THIS FEBRUARY HEADLINED THE WELFARE STATE CANNOT DO WITHOUT ZIVIS THE POPULAR WEEKLY NEWS MAGAZINE DER SPIEGEL DESCRIBED GERMANY THE HIGHEST LABORCOST COUNTRY IN THE WORLD AS A LOWWAGE COUNTRY WHEN IT COMES TO SOCIAL SERVICES AS ENORMOUS REUNIFICATION COSTS ARE COMPOUNDED BY A DEEPENING RECESSION THE GERMAN GOVERNMENT IS LOOKING FOR ALL THE CHEAP HELP IT CAN GET JUST LAST YEAR MS MERKEL'S MINISTRY WHICH ADMINISTERS THE NATIONAL SERVICE PROGRAM BEGAN AN ACTIVE CAMPAIGN TO ENCOURAGE GERMAN HOSPITALS NURSING HOMES FACILITIES FOR THE HANDICAPPED AND ALSO ORGANIZATIONS THAT ARE PARTICULARLY ACTIVE IN ENVIRONMENTAL PROTECTION TO INVESTIGATE IF PERHAPS THE NUMBER OF POSITIONS FOR ZIVIS COULD BE INCREASED CURRENTLY 94 OF ALL PETITIONERS FOR NATIONAL SERVICE ARE ACCEPTED THIS PARTLY REFLECTS THE NEED TO ABSORB CONSCRIPTS FROM THE NEW EASTERN STATES BUT IT IS CLEAR THAT MANY PRIVATE GERMAN HELP ORGANIZATIONS RECOGNIZE THE BOON OF NATIONAL SERVICE AS WELL FOR EXAMPLE COLOGNEBASED MALTESERHILFEDIENST AN ECUMENICAL HUMANITARIAN AID ORGANIZATION EMPLOYS 3571 ZIVIS WHILE ITS REGULAR STAFF NUMBERS ONLY 1951 A QUARTER OF THE GERMAN RED CROSS IS STAFFED BY NATIONAL SERVANTS GERMANY IS NOT ALONE IN ITS USE OF CONSCRIPTED LABOR IN THE SERVICE OF POLITICALLY POPULAR BUT BUDGETBUSTING GOVERNMENT PROGRAMS THE DANES FOR EXAMPLE DISPATCH THEIR NATIONAL SERVANTS AS CIVILIAN PUBLIC WORKS LABORERS AND FORESTERS FRENCH AND PORTUGUESE ZIVIS ARE FUNNELED TO VARIOUS HUMANITARIAN ORGANIZATIONS OR ARE SENT TO DO DEVELOPMENT WORK IN THEIR FORMER COLONIES AND IN 1992 ANTICIPATING THE EFFECTS OF A RAPIDLY AGING POPULATION ON THEIR HEALTH SYSTEM DOCTORS IN SWITZERLAND ACTUALLY PROPOSED SUPPLEMENTING THE NEWLY INTRODUCED SWISS NATIONAL SERVICE WITH A CORPS DEVOTED TO PROVIDING LOWCOST AMBULATORY CARE FOR THE ELDERLY POLES ALREADY CAN CHOOSE BETWEEN JOINING SUCH A 24MONTH HEALTHCARE SERVICE ALTERNATIVE TO ARMED SERVICE OR AN ENVIRONMENTAL CONSERVATION CORPS MR CLINTON HAS INUNDATED AMERICANS WITH PROPOSALS FOR EXPANDED GOVERNMENT PROGRAMS IN PUBLIC WORKS ENVIRONMENTAL CONSERVATION CHILD CARE HEALTH CARE COMMUNITY POLICING MANY OF WHICH ARE THE KINDS OF THINGS THAT ARE DONE BY EXTREMELY LOWPAID CONSCRIPTED NATIONAL SERVANTS IN OTHER ADVANCED INDUSTRIALIZED COUNTRIES WHY BECAUSE IT'S THE ONLY WAY THESE GOVERNMENTS CAN AFFORD TO MAKE GOOD ON THE GENEROUS WELFARE PROMISES THEY HAVE MADE TO VOTERS WITHOUT BURYING THEIR NATIONS IN DEBT EUROPEAN SOCIETIES YEARS AGO DECIDED FOR BETTER OR WORSE THAT THEY WERE WILLING TO CASH IN SOME OF THE CITIZENRY'S FREEDOM OF CHOICE FOR THE LUXURY OF WELFARE LARGESSE FOR ALL AMERICANS ON THE OTHER HAND HAVE TIME AND AGAIN REFUSED TO MAKE SUCH TRADEOFFS AND YET THE ONLY WAY PRESIDENT CLINTON'S MYRIAD SOCIAL PROGRAMS COULD PRODUCE MEASURABLE RESULTS WOULD BE IF CITIZENS WERE PREPARED NOT ONLY TO FUND THEM WITH HIGHER TAXES BUT PERHAPS ALSO TO ACCEPT SOMETHING AS EXTREME AND UNPOPULAR AS A DRAFT WHAT A TRULY RADICAL IDEA FOR MR CLINTON AND THE ROCKTHEVOTE CROWD MS CLARK WORKS ON THE JOURNAL'S EDITORIAL PAGE SEE RELATED LETTER LETTERS TO THE EDITOR NATIONAL SERVICE CLINTON PLAN CAN WORK WSJ JULY 6 1993 9305180090 YY93 MM07 9307020139 930609 POLITICS & POLICY CLINTON IS FINDING FEW FRIENDS IN MEDIA CIRCLES DESPITE ASSETS THAT NORMALLY APPEAL TO THE PRESS BY JAMES M PERRY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AT ONE TIME OR ANOTHER EVERY PRESIDENT GETS INTO HOT WATER WHEN THAT HAPPENS MOST OF THEM HAVE BEEN ABLE TO TURN TO AT LEAST A HANDFUL OF LOYALISTS IN THE PRESS CORPS TO TELL THEIR SIDE OF THE STORY BILL CLINTON SEEMS ON EARLY EVIDENCE TO BE AN EXCEPTION HE HAS ALMOST NO FRIENDS IN THE MEDIA NO ONE TO PUT A KINDER LIGHT ON WHAT'S HAPPENING IN AND TO THE WHITE HOUSE DURING THESE BUMPY EARLY MONTHS OF HIS ADMINISTRATION IT REMINDS SOME PEOPLE OF AN EARLIER PRESIDENT WHO HAD TROUBLE WITH THE PRESS HE'S THE NEW NIXON ISN'T HE CHORTLES LYN NOFZIGER A ONETIME POLITICAL REPORTER WHO WENT ON TO BECOME RONALD REAGAN'S POLITICAL DIRECTOR IT'S CURIOUS UNLIKE RICHARD NIXON MR CLINTON IS THE KIND OF PRESIDENT THE PRESS IS SUPPOSED TO ADMIRE YOUNG VIGOROUS CHARMING SMART BRIMMING OVER WITH LIBERAL IDEAS ABOUT PUTTING GOVERNMENT TO WORK BUT EVEN DURING THE CAMPAIGN MR CLINTON DIDN'T HAVE A LOT OF FRIENDS IN THE MEDIA ALTHOUGH SEVERAL REPORTERS SIDNEY BLUMENTHAL OF THE NEW REPUBLIC HE'S WITH THE NEW YORKER NOW JOE KLEIN AND ELEANOR CLIFT AT NEWSWEEK AND MICHAEL KRAMER AT TIME AMONG OTHERS WERE SYMPATHETIC NOW PARTLY BECAUSE OF MR CLINTON'S FOOT FAULTS EVEN THOSE REPORTERS WHO ADMIRED HIM HAVE TURNED ON HIM THE REAL FEAR IS A SOFTNESS AT THE CORE OF THE MAN MR KLEIN LAMENTED LAST MONTH MR CLINTON'S CLOSEST PRESS FRIEND WAS TIME'S STROBE TALBOTT BUT HE'S NO HELP NOW HE GOT A STATE DEPARTMENT JOB DEALING WITH RUSSIA MR CLINTON AND HIS ADVISERS SOMETIMES TURN TO VICE PRESIDENT AL GORE FOR ADVICE ON DEALING WITH THE NATIONAL PRESS CORPS AFTER ALL THEY SAY MR GORE WAS ONCE A REPORTER FOR THE NASHVILLE TENNESSEAN MR CLINTON FACES THE UNHAPPY PROSPECT OF JOINING MR NIXON AS THE SECOND PRESIDENT OF THE MODERN MEDIA AGE TO ATTEMPT TO COMMUNICATE WITH THE COUNTRY THROUGH A FILTER OF UNHAPPY AND SOMETIMES OPENLY ADVERSARIAL JOURNALISTS MR CLINTON MAY BE BEGINNING TO ACKNOWLEDGE THE PROBLEM HE HAS NAMED QUASIJOURNALIST DAVID GERGENA TELEVISION COMMENTATOR AND EDITORATLARGE FOR US NEWS & WORLD REPORT AS WHITE HOUSE COUNSELOR MR GERGEN WHO SERVED EARLIER IN REPUBLICAN ADMINISTRATIONS HAS WIDE CONTACTS AMONG THE NATIONAL PRESS CORPS IN ONE OF HIS FIRST ACTS HE REOPENED THE DOOR THAT SEPARATES THE WHITE HOUSE PRESS STAFF FROM THE WORKING REPORTERS MR CLINTON HAS ALSO BEGUN ASKING JOURNALISTS OVER TO THE WHITE HOUSE FOR DINNER SOME OBSERVERS THINK THAT IS WORTH THE EFFORT BUT MAY BE TOO LITTLE TOO LATE IT'S VERY DIFFICULT TO DEVELOP THESE RELATIONSHIPS AFTER YOU HAVE BECOME PRESIDENT SAYS JODY POWELL JIMMY CARTER'S PRESS SECRETARY CLINTON POLITICAL STRATEGIST PAUL BEGALA CONCEDES MR CLINTON CAME TO TOWN WITHOUT A LOT OF PERSONAL RELATIONSHIPS WITH THE POWER ELITES INCLUDING THE PRESS THAT'S PART OF THE REASON HE WAS ELECTED BUT WHILE MR CLINTON IS INEXPERIENCED IN THE WAYS OF WASHINGTON HE SAYS YOUNG REPORTERS COVERING HIM HAVE THEIR OWN PROBLEM THEY LACK HISTORICAL PERSPECTIVE HE ARGUES THAT REPORTERS ARE TRYING TOO HARD TO GET A FIX ON CLINTON TOO QUICKLY AND SHOULD STAND BACK AND TAKE A LONGER LOOK MR BEGALA INSISTS THAT THE RELATIONSHIP BETWEEN MR CLINTON AND HIS PRESS CORPS IS ALREADY IMPROVING JUST WAIT HE SAYS THE NEXT ROUND OF STORIES IS GOING TO BE THE RETURN OF THE COMEBACK KID' BUT EVEN IF HE'S RIGHT THE PUZZLING QUESTION IS WHY IS THERE SUCH A PROBLEM AT ALL THERE ARE ALL KINDS OF EXPLANATIONS SOME HAVING TO DO WITH MR CLINTON AND SOME HAVING TO DO WITH THE PRESS ITSELF MANY CLINTONWATCHERS IN WASHINGTON BELIEVE MR CLINTON'S FEELINGS TOWARD THE PRESS GO BACK TO LAST YEAR'S REPORTING ABOUT HIS VIETNAM DRAFT STATUS AND CABARET SINGER GENNIFER FLOWERS'S ALLEGATIONS THAT SHE AND MR CLINTON HAD BEEN INTIMATE BUT ALMOST SURELY IT GOES BACK FURTHER THAN THAT HE ALWAYS HAD A ROCKY RELATIONSHIP WITH REPORTERS IN ARKANSAS SAYS ERNEST DUMAS FOR YEARS A POLITICAL WRITER AT THE OLD ARKANSAS GAZETTE AND NOW A PROFESSOR AT CENTRAL ARKANSAS UNIVERSITY HE TRIED TO TREAT REPORTERS LIKE EVERYONE ELSE HE WANTED THEM TO BE HIS FRIENDS REMEMBER EVERYTHING IS PERSONAL WITH BILL CLINTON HE NEVER UNDERSTOOD THE ADVERSARIAL RELATIONSHIP BETWEEN POLITICIANS AND THE PRESS HE STILL DOESN'T HE SEEMS TO HAVE BROUGHT THAT FEELING WITH HIM TO WASHINGTON PRESIDENTS USUALLY FIND THEY CAN'T TRUST A NUMBER OF INDIVIDUAL REPORTERS MR CLINTON BY MOST ACCOUNTS DISTRUSTS THE WHOLE KIT AND CABOODLE THOSE WHO HAVE TRAVELED THIS ROAD BEFORE SAY THAT'S A SERIOUS MISTAKE RONALD REAGAN'S WAY THEY SAY WAS FAR BETTER HE'D BEEN IN THE ACTING BUSINESS NOTES REPUBLICAN STRATEGIST JOHN SEARS WHO WORKED FOR HIM HE MADE MOVIES AND HE HAD TO DEAL WITH MOVIE CRITICS HE KNEW THE ONES WHO NAILED HIM FOR ONE MOVIE WOULD BE AROUND TO PRAISE HIM FOR THE NEXT ONE HE THOUGHT ABOUT POLITICAL JOURNALISTS THE SAME WAY OTHER PRESIDENTS ALWAYS HAD THEIR PRESS ALLIES JOHN KENNEDY MAINTAINED TIES TO LOTS OF REPORTERS AND NO ONE HAS WORKED THAT CROWD SO SUCCESSFULLY SINCE LYNDON JOHNSON REMAINED CLOSE TO SOME OF HIS FRIENDS FROM TEXAS GERALD FORD KNEW ALMOST EVERYBODY FROM HIS DAYS AS HOUSE GOP LEADER JIMMY CARTER CAME TO WASHINGTON AS A STRANGER TOO BUT HE HAD DEFENDERS SUCH AS LOS ANGELES TIMES BUREAU CHIEF JACK NELSON GEORGE BUSH WHEN HE WAS VICE PRESIDENT USED TO INVITE THE PRESS CORPS TO HIS RESIDENCE DURING THE CHRISTMAS HOLIDAYS HE FELT BETRAYED BY REPORTERS IN HIS FINAL MONTHS IN OFFICE BUT HE NEVER TURNED ON THE MEDIA AS AN INSTITUTION UNTIL NOW MR NIXON HAS BEEN THE LONE EXCEPTION YOU COULD ALMOST SMELL THE DISLIKE FOR THE PRESS IN THE NIXON WHITE HOUSE SAYS MR NOFZIGER THE FEELING WAS MUTUAL THE PRESS DETESTED RICHARD NIXON SAYS GOP STRATEGIST DOUGLAS BAILEY PUBLISHER OF THE HOTLINE A COMPUTERIZED DAILY NEWSLETTER IT'S NOT QUITE THAT WAY WITH CLINTON THEY DON'T ACTUALLY VIEW HIM AS EVIL THEY VIEW HIM AS ERRORPRONE AND THAT SOME OBSERVERS ARGUE PLAYS INTO ALL THE STRENGTHS AND WEAKNESSES OF WHAT IS ESSENTIALLY A NEW GENERATION OF POLITICAL REPORTERS AND COMMENTATORS IT'S GOTCHA' JOURNALISM THESE DAYS SAYS MR BAILEY THE PRESS THESE DAYS IS FAR MORE JADED FAR MORE CYNICAL NOBODY HERE SEEMS TO BE ENJOYING THEMSELVES VERY MUCH SEE RELATED LETTER LETTERS TO THE EDITOR DON'T BLAME THE MEDIA BILL DID IT TO HIMSELF WSJ JULY 2 1993 9306090130 YY93 MM07 9307020034 930624 REGULATORY CHOKEHOLD FDA RED TAPE DOOMS TRANSPLANT DRUG BY LEONARD G WILSON ANTILYMPHOCYTE GLOBULIN ALG A DRUG USED TO SUPPRESS THE IMMUNE SYSTEM IN KIDNEY TRANSPLANT PATIENTS HAS HAD A LEADING ROLE IN THE IMPROVEMENT OF THE SURVIVAL RATES OF BOTH PATIENTS AND TRANSPLANTED ORGANS THE UNIVERSITY OF MINNESOTA DEVELOPED ALG IN ITS OWN LABS IN 1970 AND HAD BEEN SELLING IT FOR 22 YEARS TO MORE THAN 150 TRANSPLANT CENTERS THROUGHOUT THE US AND CANADA BUT FOR NEARLY A YEAR BECAUSE OF MISGUIDED FOOD AND DRUG ADMINISTRATION ACTION THE SALE AND USE OF THE DRUG HAS BEEN SUSPENDED IN CONTINUING TO DEEM ALG EXPERIMENTAL AND THEN SUSPENDING ITS DISTRIBUTION ON THE GROUNDS OF VIOLATIONS OF ATTENDANT RECORDKEEPING RULES AND THE LIKE THE FDA MAY CLAIM THAT IT DOES NOT KNOW ALG TO BE SAFE AND EFFECTIVE BUT IN MAKING THAT CLAIM IT DECLARES ITS WILLFUL IGNORANCE OF THE MEDICAL AND SCIENTIFIC LITERATURE AND ITS CONTEMPT FOR THE COMMUNITY OF TRANSPLANT SURGEONS AND THEIR COLLECTIVE RECORDED EXPERIENCE WITH ALG DO IGNORANCE AND CONTEMPT PROVIDE A SOUND BASIS FOR A POLICY INTENDED TO PROTECT THE PUBLIC DESPITE ITS WIDESPREAD CLINICAL USE FOR NEARLY A QUARTER CENTURY DESPITE THE RESULTS OF A DOUBLEBLIND CONTROLLED STUDY PUBLISHED IN 1985 SHOWING ALG TO BE SAFE AND EFFECTIVE AND DESPITE THE DRAMATIC SUCCESS AT MANY MEDICAL CENTERS WITH THE SEQUENTIAL USE OF ALG AND ANOTHER DRUG CYCLOSPORINE A ALG HAS REMAINED IN THE EYES OF THE FDA EXPERIMENTAL AS AN EXPERIMENTAL DRUG THE FDA HAS REQUIRED ALG TO BE SOLD AT COST AND IT ALSO HAS REQUIRED DETAILED RECORDS TO BE SUBMITTED FOR EACH PATIENT TO WHOM THE DRUG IS GIVEN AND EVEN MORE BIZARRE THE FDA'S DEMAND THAT THE UNIVERSITY OF MINNESOTA ERECT A LARGE BUILDING SAID TO COST 13 MILLION SO THAT THE DRUG COULD BE PROPERLY MANUFACTURED WHEN THE DEMAND FOR ALG ROSE TO UNEXPECTED LEVELS BECAUSE OF THE REMARKABLE SUCCESS AFTER 1985 OF MULTIPLE DRUG THERAPY THE ALG PROGRAM BEGAN TO BRING IN LARGE REVENUES WHETHER A PORTION OF THOSE REVENUES WERE PROFITS OR NOT REMAINS UNCERTAIN BUT WHAT SEEMS CLEAR IS THAT THE ENORMOUS GROWTH IN DEMAND FOR ALG OVERWHELMED THE UNIVERSITY'S CAPACITY TO DO THE REQUISITE ACCOUNTING FOR THE FDA AND TO ASSEMBLE AND ANALYZE THE RECORDS OF PATIENTS RECEIVING ALG THE HISTORY OF THE EFFORTS OF THE UNIVERSITY OF MINNESOTA TO OBTAIN FDA APPROVAL OF ALG IS OBSCURE ALTHOUGH CHIEF OF SURGERY JOHN NAJARIAN APPLIED FOR PERMISSION TO TEST ALG IN 1970 AND THE DEPARTMENT OF SURGERY BEGAN TO SELL ALG TO OTHER MEDICAL CENTERS IN 1971 DR NAJARIAN DID NOT FORMALLY APPLY TO THE FDA FOR APPROVAL OF ALG UNTIL 1989 NEVERTHELESS ACCORDING TO A CHRONOLOGY PUBLISHED LAST NOVEMBER IN THE MINNEAPOLIS STARTRIBUNE THE FDA WAS AWARE IN 1978 1979 1985 1987 AND 1988 THAT THE UNIVERSITY WAS SELLING ALG IN SEPTEMBER 1988 AT THE REQUEST OF THE FDA THE UNIVERSITY STOPPED THE SALE OF THE DRUG IT DISTRIBUTED IT FREE OF CHARGE UNTIL MAY 1989 WHEN THE FDA APPROVED ITS SALE TO DOCTORS CONDUCTING FORMAL TESTS WHEN THE FDA GAVE THE UNIVERSITY PERMISSION TO SELL THE DRUG TO RESEARCHERS IT REQUIRED THAT THE PRICE BE REDUCED FROM 235 TO 134 A GRAM A PRICE THE FDA BELIEVED REPRESENTED ITS TRUE PRODUCTION COST HOW THE FDA ARRIVED AT THIS PRICE IS UNKNOWN IN JUNE 1992 BEFORE PRODUCTION OF ALG COULD BE STARTED IN THE 13 MILLION FDAMANDATED BUILDING FDA INSPECTORS VISITED THE FACILITY AND FOUND THE ALG PROGRAM IN VIOLATION OF STILL MORE FDA RULES ONE SHIPMENT OF THE DRUGS HAD CAPS THAT FAILED A MINOR PROBLEM QUICKLY CORRECTED AND THE PROGRAM WAS BEHIND IN ITS RECORDKEEPING ON AUG 13 THE FDA HALTED THE SALE AND USE OF ALG UNTIL THESE VIOLATIONS WERE CORRECTED THE SALE AND USE OF ALG REMAINS SUSPENDED AN ACT THAT HAS ALREADY DEPRIVED HUNDREDS OF PATIENTS OF ALG AND THROWN MORE THAN 35 PEOPLE OUT OF WORK THE UNIVERSITY ACKNOWLEDGES THAT IT FAILED TO DO ALL OF THE ARDUOUS PAPERWORK REQUIRED FOR THE APPROVAL OF ALG AND THAT FREQUENTLY LETTERS FROM THE FDA WENT UNANSWERED THE FDA THEREFORE HAD REASON TO BE IRRITATED BUT DID THE FDA'S ANGER AT THE UNIVERSITY OF MINNESOTA JUSTIFY BANNING THE SALE AND USE OF A DRUG THAT HAS PROVED SAFE EFFECTIVE AND EXTREMELY VALUABLE IN THE TREATMENT OF THOUSANDS OF TRANSPLANT PATIENTS OVER MORE THAN 20 YEARS THE ACTION OF THE FDA MUST BE JUDGED BY ITS RESULTS IT HAS TAKEN AWAY FROM TRANSPLANT PATIENTS AN ESSENTIAL COMPONENT OF THE MULTIPLE DRUG THERAPY WITH THE HIGHEST RATES OF PATIENT AND ORGAN SURVIVAL IT IS CONCEIVABLE THAT PATIENTS MAY DIE BECAUSE ALG CANNOT BE MADE AVAILABLE TO THEM THE CONTRAST BETWEEN THE FDA'S VIGILANCE ON ALG AND ITS ACTIONS IN RELATION TO OTHER IMMUNESUPPRESSANT DRUGS IS STRIKING IN 1985 ORTHO PHARMACEUTICAL CO INTRODUCED A NEW DRUG CALLED OKT3 INTENDED TO OVERCOME SOME OF THE LIMITATIONS OF ALG INITIALLY OKT3 WAS USED TO TREAT ONLY SEVERE EPISODES OF KIDNEY REJECTION IT PROVIDED THE SAME DEGREE OF IMMUNE SUPPRESSION AS ALG AND THERE WAS NO SIGNIFICANT DIFFERENCE BETWEEN THE TWO DRUGS IN THE SURVIVAL RATES FOR EITHER PATIENTS OR IMPLANTED ORGANS BUT OKT3 PATIENTS DID SUFFER MORE FREQUENT SIDE EFFECTS INCLUDING FEVER BREATHLESSNESS AND ACUTE RESPIRATORY DISTRESS AND THE TWO DRUGS DIFFERED SIGNIFICANTLY IN COST A FIVEMILLIGRAM DOSE OF OKT3 WAS 400 WHEREAS A ONEGRAM DOSE OF ALG WAS ONLY 134 THE FDA APPROVED OKT3 FOR GENERAL USE IN 1985 AFTER ONLY FOUR YEARS OF CLINICAL TESTING YET IN 1990 TO THE ALARM OF RESEARCHERS A NINEFOLD INCREASE IN THE INCIDENCE OF LYMPHOMA WAS DISCOVERED AMONG PATIENTS TREATED WITH OKT3 WHILE THE FDA CONTINUES TO APPROVE OKT3 FOR GENERAL USE IT DENIES APPROVAL FOR ALG OKT3 IS NOT AN ISOLATED CASE AZATHIOPRINE CYCLOSPORINE A AND ATGAM WERE ALSO APPROVED BY THE FDA AFTER TRIALS ON RELATIVELY SMALL NUMBERS OF PATIENTS EXTENDING OVER RELATIVELY SHORT PERIODS OF TIME ALL FOUR ANTIREJECTION DRUGS ARE PRODUCED BY PHARMACEUTICAL COMPANIES WHICH POSSESS STAFFERS WHO CAN DEVOTE THEIR FULL TIME TO ENSURE THAT THE DETAILED INFORMATION REQUIRED FOR DRUG APPROVAL IS PROVIDED PROMPTLY TO THE FDA ONCE APPROVAL HAS BEEN GRANTED THE FDA BECOMES REMARKABLY TOLERANT OF ANY SHORTCOMINGS IN A DRUG THAT MAY EMERGE FROM FURTHER EXPERIENCE BY AND LARGE THE AGENCY SHOULD BE TOLERANT ANY DRUG THAT IS POWERFUL ENOUGH TO BE EFFECTIVE FOR ONE PURPOSE IS ALMOST BOUND TO HAVE UNDESIRABLE SIDE EFFECTS BUT THE FDA APPROVAL PROCESS HAS BECOME AN EXERCISE OF LEGAL POWER NOT A DECLARATION OF SCIENTIFIC KNOWLEDGE IN ITS DECISION TO BAN THE SALE AND USE OF ALG THE FDA USED ITS POWER IRRESPONSIBLY AND WITHOUT REGARD TO THE NEEDS OF PATIENTS DR WILSON IS CHAIRMAN OF THE HISTORY OF MEDICINE DEPARTMENT AT THE UNIVERSITY OF MINNESOTA MEDICAL SCHOOL SEE RELATED LETTER LETTERS TO THE EDITOR GOOD REASONS BEHIND FDA'S ARDUOUS RULES WSJ JULY 2 1993 SEE RELATED LETTER LETTERS TO THE EDITOR WORKING AT FDA IS SIMPLY DIVINE WSJ JULY 5 1993 9306240041 YY93 MM07 9307020019 930609 RULE OF LAW PRAY IN PEACE BY JAY ALAN SEKULOW IT WAS 1969 THE NATION HAD ALREADY BEEN BLOODIED BY THE ANTIWAR PROTESTS MOST NOTABLY THE RIOTS AT THE 1968 DEMOCRATIC NATIONAL CONVENTION THE CONTROVERSY OVER THE VIETNAM WAR WAS STILL RAGING IN THE STREETS AND ON THE CAMPUSES OF AMERICA AND HAD REACHED INTO OUR PUBLIC HIGH SCHOOLS YET THE SUPREME COURT RULED IN TINKER V DES MOINES THAT STUDENT EXPRESSION AGAINST THE VIETNAM WAR COULD NOT BE QUASHED IN PUBLIC HIGH SCHOOLS THE COURT RULED THAT NEITHER STUDENTS NOR TEACHERS SHED THEIR CONSTITUTIONAL RIGHTS OF FREEDOM OF SPEECH OR EXPRESSION AT THE SCHOOLHOUSE GATE IN 1969 IT WAS THE VIETNAM WAR NOW 24 YEARS LATER THERE'S A NEW STUDENT PROTEST MOVEMENT ABLAZE IN OUR PUBLIC SCHOOLS THIS TIME THE PROTEST IS NOT OVER THE CENSORSHIP OF A POLITICAL MESSAGE RATHER IT IS OVER THE CENSORSHIP OF A SPIRITUAL MESSAGE PRAYER THERE IS TREMENDOUS SUPPORT FOR GRADUATION PRAYER IN THIS COUNTRY IN RECENT WEEKS STUDENTS HAVE WALKED OUT OF SCHOOL IN VIRGINIA PROTESTING A SCHOOL BOARD'S DECISION NOT TO ALLOW STUDENTINITIATED PRAYER ONE YOUNG WOMAN IN GEORGIA INVOKED GOD IN HER SPEECH LAST WEEKEND AT A GRADUATION CEREMONY AGAINST THE ADVICE OF A SCHOOL BOARD ATTORNEY ON MONDAY THE SUPREME COURT AGAIN DECIDED IN FAVOR OF FREE SPEECH IN TWO IMPORTANT CASES BY DECIDING NOT TO HEAR JONES V CLEAR CREEK IN WHICH AN APPEALS COURT PERMITTED A STUDENTLED PRAYER IN A HOUSTONAREA SCHOOL THE COURT CLEARED THE WAY FOR STUDENTLED AND STUDENTINITIATED PRAYER AT GRADUATIONS NATIONWIDE THE COURT ALLOWED THE RELIGIOUS SPEAKER EQUAL STATUS WITH THE POLITICAL SPEAKER THIS EQUAL ACCESS TO THE MARKETPLACE OF IDEAS FOR THE RELIGIOUS SPEAKER IS CERTAINLY CONSTITUTIONAL AND IS LIKELY TO TROUBLE ORGANIZATIONS SUCH AS THE AMERICAN CIVIL LIBERTIES UNION THE ACLU HAS ACCUSED THE AMERICAN CENTER FOR LAW AND JUSTICE FOR WHICH I WORK OF LAUNCHING A CAMPAIGN OF MISINFORMATION AND DELIBERATELY MISCHARACTERIZING THE ISSUE AS A FREESPEECH ISSUE BUT IT IS A FREESPEECH ISSUE STUDENTLED AND STUDENTINITIATED PRAYER IS PROTECTED FREE SPEECH PURE AND SIMPLE MY ORGANIZATION HAS SENT NEARLY 15000 SCHOOL BULLETINS TO PUBLIC SCHOOL ADMINISTRATORS NATIONWIDE TO EDUCATE THEM ABOUT THE CONSTITUTIONAL RIGHTS OF STUDENTS THE BULLETIN OUTLINED OUR LEGAL POSITION WHICH INCLUDES THE JONES CASE IN AN EFFORT TO REMOVE RELIGIOUS SPEECH FROM THE PUBLIC ARENA THE ACLU HAS GONE TO COURT IN SEVERAL STATES TO TRY TO STOP STUDENTINITIATED AND STUDENTLED PRAYER AT GRADUATION THOSE EFFORTS HAVE NOT WORKED IN IDAHO A FEDERAL JUDGE HELD THAT THE PRACTICE OF ALLOWING STUDENTS TO DETERMINE WHETHER OR NOT TO INCLUDE PRAYER IN THEIR GRADUATION CEREMONIES DOES NOT VIOLATE THE ESTABLISHMENT CLAUSE OF THE UNITED STATES CONSTITUTION IN IOWA THE EIGHTH CIRCUIT COURT OF APPEALS REVERSED A LOWER COURT ORDER WHICH HAD PROHIBITED STUDENTLED PRAYER AT GRADUATION AND IN FLORIDA A JUDGE REFUSED TO ISSUE A RESTRAINING ORDER AGAINST STUDENTINITIATED PRAYER AT GRADUATION CEREMONIES IN JACKSONVILLE BY PERMITTING THE JONES DECISION TO STAND THE SUPREME COURT SEES THE DISTINCTION BETWEEN PRAYER BY STATE ACTORS WHICH IS PROHIBITED AS A RESULT OF LAST YEAR'S LEE V WEISMAN DECISION AND STUDENTLED STUDENTINITIATED PRAYER WHILE THE JONES DECISION IS TECHNICALLY VALID ONLY IN THE FIFTH CIRCUIT TEXAS LOUISIANA AND MISSISSIPPI IT IS A FREESPEECH ISSUE THAT CLEARLY APPLIES NATIONWIDE ADVOCATES OF FREE SPEECH RECEIVED AN ADDITIONAL BOOST FROM THE SUPREME COURT IN ITS UNANIMOUS DECISION MONDAY IN LAMB'S CHAPEL V CENTER MORICHES THE CASE CONCERNED A LONG ISLAND NY CHURCH THAT WANTED TO USE THE SCHOOL AFTER HOURS TO SHOW FILMS ON FAMILY VALUES THE COURT'S DECISION WAS STRAIGHTFORWARD UNDER THE FIRST AMENDMENT A SCHOOL DISTRICT CANNOT DISCRIMINATE AGAINST A RELIGIOUS INSTITUTION IF IT PERMITS SECULAR GROUPS TO USE SCHOOL FACILITIES IT MUST TREAT RELIGIOUS GROUPS EQUALLY THE ACLU SUPPORTED THIS POSITION THE SCHOOL DISTRICT ARGUED THAT ITS POLICY OF REFUSING TO ALLOW RELIGIOUS GROUPS ACCESS TO SCHOOL FACILITIES WAS VIEWPOINT NEUTRAL THE COURT DISMISSED THIS PROPOSITION NOTING THAT THE FACT THAT ALL RELIGIOUS GROUPS HAVE BEEN DENIED ACCESS TO SCHOOL PROPERTY DOES NOT JUSTIFY RELIGIOUS DISCRIMINATION SPECIFICALLY THE COURT STATED THE PRINCIPLE THAT HAD EMERGED FROM OUR CASE IS THAT THE FIRST AMENDMENT FORBIDS THE GOVERNMENT TO REGULATE SPEECH IN WAYS THAT FAVOR SOME VIEWPOINTS OR IDEAS AT THE EXPENSE OF OTHERS IN OTHER WORDS IF THE LOYAL ORDER OF ATHEISTS CAN RENT A SCHOOL AUDITORIUM A CHRISTIAN CHURCH SHOULD BE ABLE TO AS WELL BOTH SUPREME COURT DECISIONS REPRESENT MAJOR VICTORIES FOR RELIGIOUS FREEDOM THEY SHOULD SEND A LOUD MESSAGE TO THE NATION THAT RELIGIOUS SPEAKERS HAVE THE SAME ACCESS TO THE MARKETPLACE OF IDEAS IN AMERICA AS DO OTHER SPEAKERS RELIGIOUS SPEECH CANNOT AND SHOULD NOT BE EXCLUDED FROM THAT MARKETPLACE MR SEKULOW IS CHIEF COUNSEL OF THE AMERICAN CENTER FOR LAW AND JUSTICE A PUBLIC INTEREST LAW FIRM IN VIRGINIA BEACH VA HE PRESENTED ORAL ARGUMENTS BEFORE THE SUPREME COURT IN LAMB'S CHAPEL SEE RELATED LETTER LETTERS TO THE EDITOR WE CANNOT IMPOSE PRAYER ON OTHERS WSJ JULY 2 1993 9306090069 YY93 MM07 9307020154 930507 YOUR MONEY MATTERS WEEKEND REPORT BANKS VS BROKERS WHO'S GOT THE BEST FUNDS BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL MUTUAL FUNDS SEEM TO BE CROPPING UP JUST ABOUT EVERYWHERE NOWADAYS BANKS BROKERAGE FIRMS AND MUTUAL FUND COMPANIES ALL HAVE A BLIZZARD OF OFFERINGS AIMED AT SATISFYING INVESTORS' EVERY FINANCIAL DESIRE THE ONLY PROBLEM IS WITH SO MANY CHOICES HOW CAN YOU DECIDE WHERE TO INVEST DOES IT REALLY MAKE A DIFFERENCE WHETHER YOU BUY FUNDS MANAGED BY A BROKERAGE FIRM A BANK OR AN UNAFFILIATED FUND COMPANY A NEW STUDY BY MORNINGSTAR INC A CHICAGO FIRM THAT TRACKS MUTUAL FUNDS SUGGESTS THAT AT LEAST WHEN IT COMES TO LOAD FUNDS THOSE THAT CHARGE SALES COMMISSIONS THERE IS NO REAL DIFFERENCE IN PERFORMANCE AMONG FUNDS SOLD BY BROKERAGE FIRMS AND THOSE SOLD BY BANKS THE PERFORMANCE OF INDIVIDUAL FUNDS AND GROUPS OF FUNDS DOES VARY OF COURSE BUT YOU CAN GET GOOD MONEY MANAGEMENT THROUGH ANY VENUE SAYS DON PHILLIPS PUBLISHER AT MORNINGSTAR SURPRISINGLY PERHAPS BANKMANAGED STOCK FUNDS GAINED 1382 A YEAR ON AVERAGE IN THE FIVE YEARS THROUGH MARCH 31 COMPARED WITH 1122 FOR BROKERMANAGED STOCK FUNDS BROKERRUN FUNDS WON THE HONORS FOR THE BEST 10YEAR PERFORMANCE WITH AN ANNUAL GAIN OF 1345 IN THE MORNINGSTAR STUDY EVEN AFTER DEDUCTING LOADS THE BANKS ARE THE NEW KIDS ON THE BLOCK IN MUTUAL FUND MANAGEMENT NONE OF THE BANKRUN FUNDS HAS A 10YEAR RECORD BUT BANKS HAVE GROWN RAPIDLY IN THE BUSINESS AT THE END OF 1992 BANKS MANAGED 8 OF ALL STOCK BOND AND MONEYMARKET FUND ASSETS UP FROM 2 IN 1987 ACCORDING TO STRATEGIC INSIGHT A NEW YORK CONSULTING FIRM WHEN IT COMES TO BUYING LOAD FUNDS SAYS MR PHILLIPS THE REAL DIFFERENCES ARE IN THE LEVEL OF SERVICE INVESTORS CAN EXPECT BROKERAGE FIRMS AND BANKS EACH HAVE INSTITUTIONAL BIASES STRENGTHS AND SHORTCOMINGS THAT AFFECT THE TYPE ADVICE INVESTORS CAN EXPECT PEOPLE WITH THE TIME AND INCLINATION TO STUDY MUTUAL FUNDS CAN GO TO MANY OF THE FUND COMPANIES UNAFFILIATED WITH EITHER BROKERAGE FIRMS OR BANKS AND BUY MUTUAL FUNDS WITHOUT PAYING A SALES COMMISSION AND NOT PAYING THAT COMMISSION BOOSTS A MUTUAL FUND INVESTOR'S RETURNS BUT MANY INVESTORS FEEL A REAL NEED FOR THE KIND OF GUIDANCE A GOOD FINANCIAL ADVISER CAN PROVIDE THEY WANT HELP NOT ONLY IN PICKING MUTUAL FUNDS BUT IN MAKING SURE THAT THOSE FUNDS FIT INTO THEIR PERSONAL FINANCIAL GOALS INVESTING FOR RETIREMENT IN 20 OR 30 YEARS REQUIRES QUITE DIFFERENT TYPES OF FUNDS THAN THOSE APPROPRIATE FOR A COLLEGE SAVINGS PLAN THAT WILL BE TAPPED IN THREE TO FIVE YEARS MORNINGSTAR CONDUCTED A STUDY OF 1971 STOCK AND BOND FUNDS AT THE REQUEST OF THE WALL STREET JOURNAL LOOKING AT THE RETURNS FOR FUNDS MANAGED AND SOLD THROUGH VARIOUS OUTLETS NOT ONLY FUNDS MANAGED BY BANKS AND BROKERS BUT ALSO THOSE MANAGED BY MUTUAL FUND COMPANIES UNAFFILIATED WITH EITHER THE STUDY CALCULATED TOTAL RETURNS INCLUDING PRICE CHANGE AND REINVESTED DIVIDENDS BEFORE AND AFTER SUBTRACTING LOADS OVER PERIODS OF THREE FIVE AND 10 YEARS THE STUDY FOUND THAT THE TALENT FOR RUNNING MONEY IS FAIRLY EVENLY DISTRIBUTED AMONG THE VARIOUS TYPES OF FUND MANAGERS NO SINGLE TYPE OF FUND MANAGER CONSISTENTLY BEAT OTHER TYPES OF MANAGERS OVER DIFFERENT TIME PERIODS BEFORE SUBTRACTING OUT LOADS ONE EXCEPTION TO THAT PATTERN IS THAT BROKERRUN FUNDS RAN INTO A PARTICULARLY TOUGH STRETCH IN THE LAST THREE AND FIVE YEARS EVEN BEFORE DEDUCTING LOADS FROM RETURNS SOME OF THAT LAG SAYS MORNINGSTAR EDITOR JOHN REKENTHALER MAY BE A RESULT OF BAD TIMING BROKERAGE HOUSES TEND TO BRING OUT FUNDS THAT CAPITALIZE ON THE POPULARITY OF AN INVESTMENT SECTOR THAT'S PEAKING FOR EXAMPLE MR REKENTHALER CITES THE 1990 ROLLOUT OF DEAN WITTER CAPITAL GROWTH WHICH INVESTS IN THE TYPES OF GROWTH STOCKS THAT THRIVED IN THE 1980S AFTER A STRONG 1991 THE FUND LOST MONEY IN 1992 AND HAS SO FAR THIS YEAR THE BANK FUNDS' STERLING FIVEYEAR RESULTS OWE MUCH TO CHASE MANHATTAN'S VISTA MUTUAL FUNDS GROUP THE STANDOUT PERFORMER IN THE GROUP THE TWO VISTA STOCK FUNDS AROUND FOR FIVE YEARS HAD ANNUAL RETURNS AFTER LOADS OF 2825 TAKE OUT THE VISTA FUNDS AND THE BANK FUND GROUPS' RETURNS FALL TO 1241 THE LAGGARDS AMONG BANKRUN STOCK FUNDS IN THE FIVE YEARS WERE CITICORP'S LANDMARK FUNDS WHICH ON AVERAGE GAINED 917 ANNUALLY BANKS SELL A HIGHER PERCENTAGE OF BOND FUNDS THAN BROKERAGE FIRMS A REFLECTION OF THEIR CUSTOMERS' INEXPERIENCE AT INVESTING BOND FUNDS TEND TO HAVE LESS EXTREME SWINGS IN PRICE THAN STOCK FUNDS MOST BANKS DON'T EVEN PERMIT AGGRESSIVE EQUITY FUNDS TO BE SOLD IN THEIR LOBBIES SAYS KENNETH R LEIBLER PRESIDENT OF LIBERTY FINANCIAL COS WHICH BOTH SELLS AND MANAGES MUTUAL FUNDS FOR BANKS MOST OF THESE BANK CUSTOMERS ARE SAVERS MAKING THEIR FIRST INVESTMENT THEY WANT FUNDS ON THE VERY CONSERVATIVE SIDE ALL TOLD BANKS SOLD 23 BILLION IN STOCK AND BOND FUNDS IN THE FIRST HALF OF 1992 ACCORDING TO THE LATEST DATA FROM THE INVESTMENT COMPANY INSTITUTE THE MUTUALFUND TRADE GROUP IN COMPARISON BANKS SOLD 28 BILLION IN MUTUAL FUNDS DURING ALL OF 1991 MOST OF THOSE FUNDS THOUGH AREN'T MANAGED BY THE BANKS INSTEAD THEY ARE RUN BY UNAFFILIATED LOAD COMPANIES PUTNAM INVESTMENTS FOR INSTANCE NOW MAKES 38 OF ITS FUND SALES THROUGH BANKS BROKERAGE FIRMS ALSO SELL FUNDS MANAGED BY SUCH OUTSIDE FUND COMPANIES AS ALLIANCE CAPITAL MANAGEMENT LP AND STATE STREET RESEARCH & MANAGEMENT A SUBSIDIARY OF METROPOLITAN LIFE INSURANCE CO INDEED YOU CAN BUY SOME OF THE SAME FUNDS AT EITHER A BANK OR A BROKERAGE FIRM AMONG UNAFFILIATED LOADFUND MANAGERS SMALL FUND GROUPS TURNED IN THE BEST AND WORST RETURNS OVER FIVE YEARS MORNINGSTAR'S MR PHILLIPS POINTS OUT THE SMALLNUMBERS EFFECT WHEREBY SMALL GROUPS HAVE A GREATER CHANCE OF TURNING IN VERY HIGH OR VERY LOW RETURNS COMPARED WITH RETURNS AT LARGE GROUPS OF FUNDS KAUFMANN FUND GAINED 3045 ANNUALLY FOR THE TOP RETURN AMONG STOCK FUNDS PROGRESSIVE PORTFOLIO SERIES LOST 25 A YEAR IN THE PERIOD TRAILING THE REST BUT MOST OF THE FUNDS YOU WILL HEAR ABOUT FROM A BROKER ARE THE FUNDS MANAGED BY THE BROKER'S EMPLOYER BROKERS AT DEAN WITTER DISCOVER & CO PAINEWEBBER GROUP PRUDENTIAL INSURANCE CO'S PRUDENTIAL SECURITIES AND MANY OTHER FIRMS GET PAID HIGHER COMMISSIONS FOR SELLING INHOUSE FUNDS WHETHER OR NOT THE INHOUSE FUNDS ARE BETTER FOR THE INVESTOR AT DEAN WITTER ABOUT 60 OF THE FUNDS SOLD ARE MANAGED INHOUSE A SPOKESMAN SAYS A DEAN WITTER INHOUSE COMMUNICATION MADE PUBLIC A COUPLE OF YEARS AGO MENTIONED A TARGET OF 75 INHOUSE FUND SALES BUT WE HAVEN'T HIT THE TARGET THE SPOKESMAN SAYS MANY OTHER FIRMS SAY THAT INHOUSE FUNDS REPRESENT ABOUT HALF OF THEIR MUTUAL FUND SALES THE BROKERAGE FIRMS CONTACTED BY THIS REPORTER ALL DENIED HAVING QUOTAS FOR INHOUSE FUND SALES SHEARSON LEHMAN BROTHERS CURRENTLY PART OF AMERICAN EXPRESS BUT SOON TO BE ACQUIRED BY PRIMERICA CORP AND MERRILL LYNCH DON'T PAY BROKERS ANY EXTRA COMMISSIONS FOR SELLING INHOUSE FUNDS YET HALF OF THEIR FUND SALES ARE FROM INHOUSE FUNDS AS A RESULT OF HEAVY INTERNAL MARKETING AND IN SOME CASES HIGHER COMPENSATION TO BRANCH MANAGERS FOR MORE PROFITABLE SALES OF THE HOUSE BRAND BIG BROKERAGE FIRMS PROVIDE THEIR BROKERS WITH MORE RIGOROUS TRAINING IN MUTUAL FUNDS AS WELL AS MORE EXTENSIVE SUPPORT THAN THE BROKER SITTING IN A BANK LOBBY GETS MOST OBSERVERS SAY ONE BIG BENEFIT GOOD BROKERS CAN PROVIDE THE GUIDANCE NEEDED TO KEEP CLIENTS FROM SHOOTING THEMSELVES IN THE FOOT BY SELLING NEAR THE BOTTOM OF A BEAR MARKET AMONG BROKERMANAGED STOCK FUNDS IN THE FIVE YEARS THROUGH MARCH 31 THE SKYLINE FUNDS AFFILIATED WITH MESIROW FINANCIAL HAD THE BEST PERFORMANCE WITH A GAIN OF 1656 A YEAR AFTER LOADS SOME OF THE SKYLINE FUNDS HAVE DROPPED THEIR LOADS AND ONE OF THEM IS NOW CLOSED TO NEW INVESTORS AMONG THE BIGGER BROKERRUN FUND GROUPS PAINEWEBBER DID BEST OVER THE FIVE YEARS WITH A 1264 ANNUAL RETURN THE LAGGARD OVER FIVE YEARS WAS THE 933 ANNUAL RETURN FOR MERRILL LYNCH FUNDS NA=NOT APPLICABLE GROUP IS TOO NEW SEE RELATED LETTER LETTERS TO THE EDITOR OUR LANDMARK FUNDS PROVE THEIR WORTH WSJ JULY 2 1993 9305070062 YY93 MM07 9307020105 930527 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE BANK OF ENGLAND SAID IT HAD AVERTED A LIQUIDITY CRISIS BUT AT A POSSIBLE COST OF AS MUCH AS 115 MILLION 1776 MILLION SPENT TO PROP UP SMALL BANKS DURING THE PAST TWO YEARS THE CENTRAL BANK CONFIRMED IN ITS REPORT FOR THE YEAR ENDED FEB 28 THAT IT MOUNTED THE RESCUE OPERATION FOLLOWING A FUNDING SQUEEZE ON SMALL BANKS AFTER ONE INSTITUTION COLLAPSED IN JUNE 1990 MANY OF THE BANKS RELIED ON WHOLESALE MONEY MARKETS FOR A LARGE PART OF THEIR FUNDING AND THE SQUEEZE WORSENED AFTER ANOTHER BANK CLOSURE IN JULY 1991 AS DEPOSITORS SOUGHT TO PLACE FUNDS WITH LARGER BANKS THE CENTRAL BANK DIDN'T IDENTIFY THE INSTITUTIONS RESCUED OR THE EXTENT OF ITS OPERATION THOUGH IT SAID AS MANY AS 40 SMALL BANKS HAD BEEN UNDER CLOSE REVIEW THE THREAT OF A CRISIS DISAPPEARED LAST OCTOBER BANK OFFICIALS SAID IN ITS FISCAL 1992 AND 1993 ACCOUNTS THE CENTRAL BANK SET ASIDE THE 115 MILLION FOR PROVISIONS AGAINST POTENTIAL LOSSES OF THE BANKS HELPED SOME COLLAPSED SOME RECOVERED AND OTHERS REMAIN IN BUSINESS UNDER CLOSE SUPERVISION BULGARIA'S NUCLEAR POWER PLANT WILL RECEIVE FINANCIAL AID FROM A FUND SET UP BY 24 INDUSTRIALIZED NATIONS TO IMPROVE NUCLEAR SAFETY IN EASTERN EUROPE THE SOVIETDESIGNED REACTORS IN KOZLODUI 125 MILES NORTH OF SOFIA WILL GET 20 MILLION EUROPEAN CURRENCY UNITS 241 MILLION FROM THE FUND WHICH TOTALS 115 MILLION ECUS DONOR COUNTRIES INCLUDE THE US JAPAN GERMANY BRITAIN FRANCE AND CANADA BULGARIA'S SIXREACTOR PLANT GENERATES 40 OF THE COUNTRY'S ELECTRICITY BUT FREQUENT MALFUNCTIONS HAVE FORCED SHUTDOWNS CHINA WILL AUCTION COPYRIGHTS OF WORKS BY CONTEMPORARY CHINESE AUTHORS SEPT 8 IN THE SOUTHERN ECONOMIC ZONE OF SHENZHEN THE AUCTION SAID TO BE THE FIRST OF ITS KIND IN THE COUNTRY WILL BE OPEN TO CHINESE AND FOREIGNERS IT WILL INCLUDE WORKS BY DOZENS OF WRITERS INCLUDING A FORMER CULTURE MINISTER WANG MENG AND THE ACTRESS LIU XIAOQING WHO WILL OFFER THE RIGHTS TO HER BOOK FROM MOVIE STAR TO LADY MILLIONAIRE ECUADORANS BEGAN A GENERAL STRIKE THE SECOND IN EIGHT MONTHS TO PROTEST GOVERNMENT ECONOMIC REFORMS PARALYZING URBAN TRANSPORTATION AND CAUSING A NATIONWIDE SLOWDOWN SECURITY FORCES DISPERSED PROTESTERS IN QUITO THE CAPITAL AND OTHER CITIES OPERATIONS WERE NORMAL FOR BANKS AND FINANCIAL MARKETS IN QUITO AND THE PORT IN GUAYAQUIL BUT MOST FACTORIES AND SCHOOLS WERE CLOSED THE UNITED WORKERS FRONT ECUADOR'S LARGEST LABOR FEDERATION CALLED THE STRIKE TO PROTEST PRIVATIZATION PLANS AND UTILITY RATE INCREASES BRITISH COAL WON A COURT ORDER ALLOWING THE STATEOWNED FIRM TO CLOSE 10 OF THE 31 UNPROFITABLE MINES IT SOUGHT TO SHUT LAST FALL IN A MOVE THAT AROUSED NATIONAL OUTRAGE WORKERS ACCUSED THE GOVERNMENT OF TRYING TO KILL THE BUSINESS THAT FUELED THE INDUSTRIAL REVOLUTION BUT BRITISH COAL SAID IT NEEDED TO SHRINK ITS OPERATIONS BECAUSE OF A COAL GLUT LAST DECEMBER A COURT BLOCKED SHUTTING THE FIRST 10 MINES SAYING BRITISH COAL HADN'T CONSULTED PROPERLY WITH ITS WORKERS THE COMPANY THIS MONTH SAID IT HAD TAKEN ALL STEPS NEEDED TO CLOSE THESE PITS THE COURT AGREED A POWER SHORTAGE IN THE PHILIPPINES AND A FLOOD OF NEW GRADUATES INTO MANILA'S TIGHT LABOR MARKET DROVE THE CAPITAL'S UNEMPLOYMENT RATE UP TO 186 LAST MONTH FROM 145 IN JANUARY THE TOTAL NUMBER OF JOBLESS PEOPLE BALLOONED 33 TO 657000 FROM 495000 DAILY POWER OUTAGES AS LONG AS 10 HOURS HAVE FORCED ENERGYINTENSIVE INDUSTRIES TO SHORTEN SHIFTS AND LAY OFF THOUSANDS OF WORKERS THE EUROPEAN COMMUNITY COMMISSION PROPOSED A CAMPAIGN TO BATTLE UNEMPLOYMENT WHICH AVERAGES 103 IN THE 12NATION TRADE BLOC AND COULD BREAK THE 1985 RECORD OF 108 BY THE END OF NEXT YEAR OF THE 174 MILLION JOBLESS PEOPLE IN THE EC ALMOST HALF HAVEN'T WORKED FOR MORE THAN A YEAR THE PLAN URGES EC STATES TO COMMIT THEMSELVES TO POLICIES TO BOOST JOB CREATION OVER THE NEXT 18 MONTHS THE EC SOCIAL AFFAIRS COMMISSIONER PADRAIGH FLYNN UNVEILED GUIDELINES HE SAID COULD PROMPT THE MEMBER STATES TO PURSUE SHORTER WORKING HOURS TO LET MORE PEOPLE WORK AND SHARE JOBS TRAINING PROGRAMS FOR THE UNEMPLOYED TO CREATE A MORE MARKETFLEXIBLE WORK FORCE CUTS IN EMPLOYERS' SOCIAL SECURITY CONTRIBUTIONS WHICH CAN EXCEED 20 OF BASE SALARIES TO MAKE STAFF EXPANSIONS LESS EXPENSIVE AND ENCOURAGE HIRING AND FORMING NEW JOB AREAS SUCH AS ENVIRONMENTAL INDUSTRIES EC EMPLOYMENT MINISTERS WILL DISCUSS THE REPORT TUESDAY THE SAUDI MULTIMILLIONAIRE ADNAN KHASHOGGI REPORTED THAT HIS DAUGHTERINLAW'S JEWELS VALUED AT 3 MILLION WERE STOLEN FROM HIS FRENCH RIVIERA APARTMENT BARON TREVOR 64 YEARS OLD MADE HIS MAIDEN SPEECH IN BRITAIN'S HOUSE OF LORDS WHICH HE ENTERED IN 1950 SAYING HE HAD INTENDED TO SPEAK ONLY WHEN HE HAD SOMETHING TO SAY HE FINALLY DID AFTER 43 YEARS BECAUSE POLICE OVERSIGHT PROPOSALS BEING DEBATED AFFECTED HIS CONSTITUENCY SEE RELATED LETTER LETTERS TO THE EDITOR PUBLIC BAMBOOZLED BY CENTRAL BANKERS WSJ JULY 2 1993 9305270005 YY93 MM07 9307020050 930524 LAW LEGAL BEAT JUDGE CLEARS WAY FOR STUDENTS TO CONDUCT GRADUATION PRAYER BY ARTHUR S HAYES STAFF REPORTER OF THE WALL STREET JOURNAL HIGH SCHOOL GRADUATION CEREMONIES CAN INCLUDE A PUBLIC PRAYER AS LONG AS IT IS INITIATED PLANNED AND DELIVERED BY STUDENTS A FEDERAL JUDGE RULED THE DECISION CLEARS THE WAY FOR SENIORS IN A PREDOMINATELY MORMON SCHOOL DISTRICT IN GRANGEVILLE IDAHO TO CONDUCT A PRAYER AT THEIR GRADUATION THIS WEEK THE RULING BY THE JUDGE IN BOISE IDAHO IS THE SECOND FEDERAL COURT DECISION IN RECENT MONTHS ALLOWING STUDENTINITIATED GRADUATION PRAYERS LATE LAST YEAR THE FIFTH US CIRCUIT COURT OF APPEALS IN NEW ORLEANS RULED THAT A SCHOOL DISTRICT NEAR HOUSTON COULD PERMIT NONSECTARIAN NONPROSELYTIZING STUDENTRUN PRAYERS THE US SUPREME COURT HAS AGREED TO REVIEW THE FIFTH CIRCUIT DECISION WHICH APPLIES TO TEXAS MISSISSIPPI AND LOUISIANA ACROSS THE COUNTRY HIGH SCHOOL STUDENTS ARE BEING ENCOURAGED BY SCHOOLPRAYER ADVOCATES MOST NOTABLY REV PAT ROBERTSON'S AMERICAN CENTER FOR LAW AND JUSTICE IN VIRGINIA BEACH VA TO ARGUE THAT THEY HAVE THE RIGHT TO DECIDE WHETHER TO DELIVER PUBLIC PRAYERS AT COMMENCEMENT CEREMONIES THE CENTER FILED A BRIEF IN THE IDAHO CASE SUPPORTING THE GRANGEVILLE SCHOOL DISTRICT AND A MAJORITY OF THE GRADUATING SENIORS WHO WERE NAMED AS DEFENDANTS IN THE SUIT LAST YEAR THE US SUPREME COURT RULED THAT CLERGY INVITED BY SCHOOL OFFICIALS COULDN'T DELIVER GRADUATION PRAYERS BECAUSE SUCH SCHOOLINITIATED ACTIONS VIOLATE THE FIRST AMENDMENT'S BAN ON GOVERNMENT ENDORSEMENT OF RELIGION BUT THAT DECISION DIDN'T CLOSE THE DOOR ON STUDENTLED PRAYER SAID KIRTLAN NAYLOR AN ATTORNEY AT BOISE LAW FIRM IMHOFF & LYNCH FOR THE GRANGEVILLE SCHOOL DISTRICT THE PRAYER ADVOCATES ARGUE THAT WHEN STUDENTS ACT INDEPENDENTLY OF THE SCHOOL DISTRICT THERE IS NO STATE ACTION AND AS A RESULT NO ENTANGLEMENT BETWEEN CHURCH AND STATE THEY SAY THE COURTS MUST ALSO CONSIDER THE STUDENTS' FREESPEECH RIGHTS WHICH THEY CONTEND OUTWEIGH CHURCHANDSTATE CONCERNS SOME SCHOOL BOARDS FAVOR A STUDENTINITIATED GRADUATION PRAYER BECAUSE IT ALLOWS THEM TO TAKE A NEUTRAL POSITION IN THESE OFTEN BITTER DISPUTES THE GRANGEVILLE SCHOOL DISTRICT HAD ADOPTED A POLICY THAT DIDN'T MENTION PRAYER SPECIFICALLY BUT WHICH ALLOWED THE STUDENTS TO VOTE ON WHAT THEY WANTED TO DO AT GRADUATION A MOTHER AND HER THREE CHILDREN SUED TO CHALLENGE THE PRAYER ARGUING THAT THERE WAS STATE ACTION BECAUSE THE DISTRICT AUTHORIZED THE STUDENTS TO VOTE AND SUPERVISED THE CEREMONY BUT US DISTRICT JUDGE HAROLD L RYAN SAID IN HIS DECISION THAT THE FACULTY AND ADMINISTRATORS HAVE LITTLE OR NO INVOLVEMENT IN THE VOTING PROCESS AND THAT THE SUPREME COURT IS WILLING TO TOLERATE SOME PRAYER AT GRADUATION CEREMONIES STEPHEN PEVAR AN ATTORNEY WITH THE AMERICAN CIVIL LIBERTIES UNION IN DENVER WHICH IS REPRESENTING THE PLAINTIFFS SAID HE WILL APPEAL JUDGE RYAN'S DECISION HE ALSO PLANS TO FILE A SIMILAR CHALLENGE IN STATE COURT MR PEVAR SAID THE CHURCHANDSTATE CLAUSE IN IDAHO'S CONSTITUTION IS MUCH MORE EXPANSIVE AND SPECIFIC THAN ITS COUNTERPART IN THE FEDERAL CONSTITUTION WATERHEATER MAKERS SAY THEY INCREASINGLY ARE BEING SUED IN ACCIDENTS INVOLVING SCALDING BATHS IN MANY OF THE CASES PLAINTIFFS CONTEND THAT MANUFACTURERS SHOULD BE LIABLE AUTOMATICALLY FOR ANY INJURIES CAUSED BY THE HEATERS ON THE THEORY THAT THE DEVICES ARE UNREASONABLY DANGEROUS PRODUCTS UNDER THIS SOCALLED STRICTLIABILITY APPROACH MANUFACTURERS COULD BE LIABLE EVEN IF THE HEATER WASN'T DESIGNED NEGLIGENTLY THE COURTS HAVEN'T YET RESOLVED WHETHER WATER HEATERS FALL INTO THIS CATEGORY IT'S DANGEROUS EQUIPMENT THAT'S OUT THERE SAYS NANCY HIRSCH A CHICAGO LAWYER REPRESENTING THE PLAINTIFF IN A SCALDING SUIT AGAINST MANUFACTURER STATE INDUSTRIES INC PEOPLE ARE GETTING BURNED LEFT AND RIGHT MS HIRSCH'S CASE ALLEGES THAT STATE INDUSTRIES ASHLAND CITY TENN IS STRICTLY LIABLE FOR THE INJURIES OF A SMALL GIRL WHO RECEIVED BURNS ON 80 OF HER BODY WHEN SHE CLIMBED INTO AN EXCESSIVELY HOT BATH BATH WATER CAN BURN HUMAN SKIN SAYS MS HIRSCH THAT CERTAINLY SEEMS LIKE AN UNREASONABLY DANGEROUS CONDITION THE CASE IS PENDING IN STATE COURT IN CHICAGO LAWYERS FOR MANUFACTURERS SAY THE PLAINTIFFS ARE FREQUENTLY TO BLAME FOR THEIR BATHING ACCIDENTS A LITTLE DIP OF THE TOE FIRST BEFORE YOU GO SITTING IN IT I THINK IS A PRETTY TELLING SIGN OF WHETHER YOU WANT TO GET IN THERE OR NOT SAYS GLENN RONALDSON AN ATTORNEY AT THE CHICAGO LAW FIRM POPE & JOHN WHICH REPRESENTS STATE INDUSTRIES WHO'S NEWS MICHAEL ROSTER MANAGING PARTNER OF LAW FIRM MORRISON & FOERSTER'S LOS ANGELES OFFICE WILL BECOME GENERAL COUNSEL AT STANFORD UNIVERSITY THE US SUPREME COURT HAS BEEN ASKED TO REVIEW A LOWERCOURT DECISION THAT ALLOWED STUDENTRUN PRAYERS AT HIGHSCHOOL GRADUATION CEREMONIES IN THE MAY 24 LEGAL BEAT COLUMN IT WAS INCORRECTLY STATED THAT THE HIGH COURT HAD AGREED TO REVIEW THE CASE SEE RELATED LETTER LETTERS TO THE EDITOR LIVING DANGEROUSLY WSJ JULY 2 1993 9306010033 YY93 MM07 9307010180 930609 PARIAH IN THE SOUTH WILLIAM T SHERMAN IS GETTING A MAKEOVER THE MAN WHO BURNED ATLANTA HAD MANY FINE QUALITIES CIVIL WAR HISTORY REVISED BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA WAR IS HELL WILLIAM TECUMSEH SHERMAN SAID BUT WHAT'S REALLY HELL IS TRYING TO CONVINCE SOUTHERNERS THAT GEN SHERMAN WASN'T SUCH A BAD GUY AFTER ALL IN THESE PARTS GEN SHERMAN IS ABOUT AS POPULAR AS LUCIFER HIS SOLDIERS ON THEIR MARCH TO THE SEA WERE KNOWN FOR MURDERING LIVESTOCK AND LETTING WOMEN AND CHILDREN STARVE THEY SHELLED THE STATE CAPITOL BUILDING IN COLUMBIA SC EVEN AFTER THE TOWN SURRENDERED LOCAL HISTORIANS SAY THEY STOLE HEIRLOOMS AND REVERSED FAMILY FORTUNES AND GEN SHERMAN BURNED ATLANTA IN SOME CIRCLES HE IS STILL ATTILA THE YANKEE OR THAT REDHEADED DEMON YET GEN SHERMAN IS GETTING AN IMAGE MAKEOVER THESE DAYS HISTORIANS ARE TELLING CIVIL WAR CLUBS THE UNION GENERAL WASN'T JUST A COLDHEARTED PYROMANIAC AND SHERMAN SYMPATHIZERS ARE PREPARING A HUMANIZING NOVEL AND A SCREENPLAY OHIO TROUPES RECENTLY PERFORMED A CHORAL WORK SHERMAN FORCED TO WAR AND A BALLET THAT HAS HIM GRIEVING OVER HIS SON'S DEATH HELPING TO FIND HOMES FOR ORPHANS EXPRESSING AFFECTION FOR HIS TROOPS I GET THE IMPRESSION THOSE 60000 GUYS REALLY DID LOVE HIM SAYS THE BALLET'S CREATOR LIZ LERMAN AND A NEW BOOK SHERMAN A SOLDIER'S PASSION FOR ORDER SAYS THE GENERAL HATED BLOODSHED AND PUNISHED SOUTHERN CIVILIANS ONLY BECAUSE HE THOUGHT IT WOULD END THE WAR FASTER THE BOOK SAYS THAT GEN SHERMAN GOT BLAMED FOR A LOT OF BURNING THAT WAS ACTUALLY DONE BY RETREATING CONFEDERATES AND THAT HE WAS POLITE ABOUT HIS PLUNDERING WHEN HE COVETED SOME SIR WALTER SCOTT NOVELS HE HAD FOUND IN A CHARLESTON SC HOME HE TOOK THEM BUT ONLY AFTER PROMISING TO REPLACE THEM WITH OTHER BOOKS I AM NOT THE HEARTLESS BOAR I AM OFTEN REPRESENTED GEN SHERMAN HIMSELF PROTESTED IN A LETTER TO A CRITIC BEFORE MARCHING TO SAVANNAH A CITY HE ENDED UP SPARING JOHN F MARSZALEK AUTHOR OF THE SHERMAN BOOK AGREES SAYING THE GENERAL DESERVED RESPECT ADMIRATION AND ALLEGIANCE BUT UNRECONSTRUCTED SOUTHERNERS COULDN'T AGREE LESS SHERMAN IS THE GREATEST ARGUMENT FOR HELL BECAUSE IF THERE IS NO HELL WHERE IS WILLIAM T SHERMAN SAYS GORDON COTTON DIRECTOR OF THE OLD COURT HOUSE MUSEUM IN VICKSBURG MISS JAMES W THOMPSON A CIVIL WAR BUFF IN JACKSON MISS CALLS GEN SHERMAN AN ABSOLUTE BARBARIAN AND SAYS IT'S A DISGRACE THAT DR MARSZALEK TEACHES HISTORY AT MISSISSIPPI STATE UNIVERSITY TOM WATSON BROWN AN ATLANTA ATTORNEY SAYS THAT GEN SHERMAN WAS A WAR CRIMINAL AND THAT HIS DEFENDERS PROBABLY HAVE A STREAK OF HOOLIGANISM IN THEM TOO BRIGANDAGE VANDALISM IRONICALLY GEN SHERMAN ACTUALLY LOVED THE SOUTH EVEN THOUGH HE WAS A NATIVE OF LANCASTER OHIO HE HAD RUBBED SHOULDERS WITH MANY FUTURE CONFEDERATES AT WEST POINT BEFORE THE WAR HE HAD SIPPED TEA WITH SOUTHERNERS WHILE STATIONED AT FORTS IN FLORIDA AND SOUTH CAROLINA AFTER UNSUCCESSFUL STINTS AS A BANKER AND A LAWYER HE HELPED START THE MILITARY SCHOOL THAT LATER BECAME LOUISIANA STATE UNIVERSITY AND HE HOPED ULTIMATELY TO SETTLE IN THE STATE WITH HIS FAMILY WHEN SOUTH CAROLINA SECEDED GEN SHERMAN BURST INTO TEARS ACCORDING TO ONE WITNESS THE SOUTH ITSELF WASN'T ALWAYS SO HOSTILE TO GEN SHERMAN EITHER AFTER ALL HE HAD SOUGHT EASY SURRENDER TERMS HE SAW NOTHING WRONG WITH SLAVERY AND THOUGHT THE SOUTH SHOULD RETURN TO BUSINESS AS USUAL AFTER THE WAR LARGE CROWDS WELCOMED THE GENERAL IN TENNESSEE GEORGIA AND LOUISIANA WHERE HE WAS TOASTED WITH CHAMPAGNE DURING MARDI GRAS AND CONFEDERATE GEN JOSEPH E JOHNSTON LIKED HIS WARTIME NEMESIS ENOUGH TO MARCH IN HIS FUNERAL IT WAS THERE THAT GEN JOHNSTON CONTRACTED PNEUMONIA HE DIED SOON THEREAFTER BUT AS SOUTHERNERS FELT THE INCREASING STING OF RECONSTRUCTION THEY FOUND GEN SHERMAN A PERFECT SCAPEGOAT PEOPLE KNEW SHERMAN THEY KNEW WHAT HE LOOKED LIKE SAYS CHARLES EDMUND VETTER A SOCIOLOGIST AT CENTENARY COLLEGE IN SHREVEPORT LA WHO WROTE A SYMPATHETIC BOOK ABOUT THE GENERAL LAST YEAR WITH HIS SCOWL DISHEVELED HAIR OPEN COAT AND THE SCAR ON HIS CHEEK FROM A CHILDHOOD FALL OFF A HORSE THE GENERAL LOOKED A LITTLE BIT WACKO DR VETTER SAYS AND IN FACT NORTHERN NEWSPAPERS HAD AT ONE POINT LABELED GEN SHERMAN INSANE SHERMANBASHING GAINED STRENGTH OVER THE YEARS IN 1908 THE GOVERNOR OF SOUTH CAROLINA REFUSED TO APPROVE A NEW US HISTORY TEXTBOOK UNTIL THE AUTHOR SQUARELY BLAMED GEN SHERMAN'S TROOPS FOR BURNING COLUMBIA SOME HISTORIANS BELIEVE WIND WHISKEY AND CONFEDERATE COTTONBURNING DESERVE AT LEAST EQUAL BLAME MORE RECENTLY ATLANTANS HAVE BEEN BLAMING GEN SHERMAN FOR THE CITY'S SHORTAGE OF HISTORICAL SITES EVEN THOUGH REALESTATE DEVELOPERS HAVE TORN DOWN AND REBUILT MOST OF THE CITY MANY TIMES SINCE THE WAR AND DR MARSZALEK A NATIVE OF BUFFALO NY SAYS HE OFTEN IS ACCOSTED BY SOUTHERNERS WHO CLAIM GEN SHERMAN BURNED THEIR GREATGRANDFATHER'S BARN THOUGH THE MALIGNED GENERAL'S ARMY DIDN'T GET WITHIN 100 MILES OF THE PLACE ON THE OTHER HAND GEN SHERMAN HAS GROUPIES TOO SHARON MOODY A NATIVE OF UPSTATE NEW YORK WHO IS NOW A MARKET RESEARCHER IN MATTHEWS NC RECENTLY HAD A SHERMAN FIGURINE MADE FOR HER FIVEFOOTHIGH VERSION OF THE NEW YORK TOWN HOUSE WHERE GEN SHERMAN SPENT HIS FINAL YEARS THE DISPLAY INCLUDES SMALL REPLICAS OF THE GENERAL'S FAVORITE FOOD SPONGECAKE AND DRINK BOURBON AND WATER MS MOODY WHOSE LICENSE PLATE CUMP HONORS WILLIAM TECUMSEH HAS AN OLD PHOTO OF GEN SHERMAN IN WHICH SHE OBSERVES HE'S JUST ON THE VERGE OF SMILING REDBEARDED JOHN GOODE LIKES TO PORTRAY GEN SHERMAN AT ANNUAL CONFEDERATESURRENDER REENACTMENTS IN NORTH CAROLINA EVEN THOUGH ELDERLY SOUTHERN LADIES CUSS ME LIKE A SAILOR WOULDN'T DARE TO AND STAN SCHIRMACHER A RETIRED SCHOOLTEACHER IN ARIZONA STARTED SONS OF SHERMAN'S MARCH TO THE SEA BECAUSE HIS GRANDFATHER WAS GEN SHERMAN'S DRUMMER BOY AFTER GETTING A FEW ANGRY LETTERS MR SCHIRMACHER GAVE HIS CLUB AN ALIAS CIVIL WAR SHACK FOR USE BELOW THE MASONDIXON LINE THE SOUTH MAY ULTIMATELY SURRENDER TO THE KINDER VIEW OF GEN SHERMAN MISSISSIPPI STATE WHICH WAS FOUNDED BY A CONFEDERATE GENERAL HAS DISTRIBUTED COPIES OF DR MARSZALEK'S BOOK AS THANKYOU PRESENTS TO MISSISSIPPI POLITICIANS TRUE THE YELLOW RIVER GAME RANCH A PETTING ZOO OF SORTS OUTSIDE ATLANTA STILL HAS A SKUNK RESIDING IN A TWOFOOT MANSION LABELED GEN SHERMAN'S HEADQUARTERS BUT MANAGER ARTHUR RILLING A TEXAN COULD TELL THAT TIMES ARE CHANGING WHEN HE RECENTLY HEARD A SCHOOLTEACHER EXPLAIN TO HER CLASS THAT THE SKUNK'S NAMESAKE WAS A CONFEDERATE GENERAL SEE RELATED LETTER LETTERS TO THE EDITOR HE WAS A LOT OF THINGS BUT HE WASN'T CRAZY WSJ JULY 1 1993 9306090071 YY93 MM07 9307010178 930625 SHORT INTEREST HIGHLIGHTS NASDAQ ISSUES THE SHORT INTEREST RATIO IS THE NUMBER OF DAYS IT WOULD TAKE TO COVER THE SHORT INTEREST IF TRADING CONTINUED AT THE AVERAGE DAILY VOLUME FOR THE MONTH 9307010112 930614 REVIEW & OUTLOOK EDITORIAL ANIMAL FARMS SOME THOUGHTS ON PIGS CONTRARY TO COMMON PERCEPTION PIGS ARE INTELLIGENT SENSITIVE AND CLEAN ANIMALS PIGS NATURALLY LIVE IN GROUPS AND ARE GOVERNED BY A WELLDEFINED SOCIAL ORDER IN THE EVENING GROUP MEMBERS WILL PREPARE A COMMUNAL NEST FROM BRANCHES AND GRASS IN WHICH THEY WILL SPEND THE NIGHT NOTED ETHOLOGIST DR ALEX STOLBA OBSERVED THAT DOMESTIC PIGS LIVING IN A NATURAL ENVIRONMENT SPEND 31 OF THE DAY GRAZING 21 OF THE DAY ROOTING AND 23 OF THE DAY INTERACTING WITH THE ENVIRONMENT IN OTHER WAYS NOW SOME FOLKS RESIDING AT DESKS IN AIRCOOLED OFFICES OVER BREAKFAST IN THE SUBURBS OR COMMUTING THE RAILS INTO A CITY JOB MIGHT FIND THESE THOUGHTS ON HOGS WELL INTERESTING HOG FARMERS ON THE OTHER HAND WILL LIKELY CHUCKLE A BIT OVER THAT PASSAGE QUOTED FROM A PUBLICATION OF THE HUMANE FARMING ASSOCIATION LOCATED IN THE SAN FRANCISCO BAY AREA ALAS WHEN IT COMES TO THE AFFAIRS OF ANIMALS AS WITH THE ENVIRONMENT THE PEOPLE WHO ACTUALLY KNOW SOMETHING ABOUT A SUBJECT OFTEN END UP ON THE LOSING SIDE HERE EMOTIONS HAVE CLOUT THE HOG FARMERS FOR INSTANCE MIGHT CONSIDER THAT AFTER THE HUMANE FARMING ASSOCIATION BEGAN ADVERTISING THE ALLEGED CRUELTY OF CONFINEMENT FOR CALVES IN THEIR CAGES VEAL SLAUGHTERS IN THE US FELL BY HALF IN SEVEN YEARS OTHER FACTORS INCLUDING A DESIRE TO FATTEN THE CALVES FOR LATER BEEF PRODUCTION PLAYED A PART THE GROUP HAS TRAINED ITS PUBLICITY SIGHTS ON THE PORK INDUSTRY ON SIMILAR GROUNDS BEHIND THE ANIMAL RIGHTS OR AT LEAST HUMANENESS CAMPAIGN IS AN EFFORT TO THWART FACTORY FARMING THE CONSOLIDATION OF HOG RAISING INTO A MASSSCALE EFFICIENT INDUSTRY SUCH AS POULTRY HAS BECOME LIKE POULTRY THE INDUSTRY HAS BECOME CENTERED IN THE SOUTH BESIDES ARKANSASBASED TYSON FOODS THE OTHER TOP FOUR PIGGY BIGGIES ARE IN NORTH CAROLINA IN ADDITION TO APPEALING FOR SYMPATHY FOR THE BEASTS THE OPPONENTS OF FACTORY FARMING TRY TO INSTILL A FEAR FOR THE SAFETY OF THESE FOODS BY CITING INSTANCES OF UNSANITARY CONDITIONS AND NOTING THE EXTENT OF ANTIBIOTIC AND OTHER INJECTIONS IN MEAT RAISING THE MOVEMENT HAS ACHIEVED SOME SUCCESS IN EUROPE SWEDISH LAW REQUIRES THAT FARM ANIMALS BE ALLOWED TO PERFORM AU NATUREL DOUBTLESS THE FOLKS IN SAN FRANCISCO WOULD LIKE TO SEE SIMILARLY GAMEY LEGISLATION IN THE US TO A GREAT EXTENT THE ATTACK ON FACTORY FARMING IS ALL ABOUT SIZE AND SCALE THIS IS MADE CLEAR IN HUMANE FARMING MATERIAL THAT TIES IN THE USE OF PORK GROWTH HORMONES TO BOVINE SOMATOTROPIN AN INDUCER OF GREATER MILK PRODUCTION THAT IS BEING HELD UP BY ANTITECHNOLOGISTS BOTH ARE SEEN AS THREATS TO THE FAMILY FARMER THE CASE OF VEAL ASIDE ITS MARKET HAS BEATEN NEARLY A COMPLETE RETREAT UPSCALE OUT OF GROCERIES INTO RESTAURANTS IT IS UNLIKELY THAT THE SAN FRANCISCO CROWD IS GOING TO BRING HOME THE BACON THIS TIME AS FONDLY AS FAMILY FARMS ARE RECALLED THE SIMPLE FACT IS THAT MASS PRODUCTION AND INTEGRATION OF PROCESSES IN THE MODERN AGRICULTURAL CORPORATION IS LOWERING PRICES AND BOOSTING THE CHOICES TO CONSUMERS BUYING HABITS IN THE MARKET RESPOND ACCORDINGLY CONSIDER POULTRY FROM 1960 TO 1990 RETAIL PRICES OF BROILERS AND TURKEYS FELL IN REAL TERMS BY 3 ANNUALLY AND CONSUMPTION ROSE BY MORE THAN 3 A YEAR THE SAME IS BEGINNING TO OCCUR IN PORK THE OTHER WHITE MEAT CATTLE MEANWHILE RESIST SUCH INTENSIFIED PRODUCTION AND REAL BEEF PRICES HAVEN'T SHOWN A SIMILAR DECLINE AS TO THE FEARMONGERING ACCORDING TO DEAN CLIVER A UNIVERSITY OF WISCONSIN FOODBORNE DISEASE SPECIALIST OF 31 YEARS THERE IS EVERY REASON TO THINK THE AVERAGE CONSUMER HAS ACCESS TO A MORE HEALTHFUL DIET THAN EVER AS IN SO MANY AREAS OF SCIENCE THE HEIGHTENED SENSE OF RISK IS USUALLY A FUNCTION OF IMPROVED METHODS OF MEASUREMENT AND AILMENT ANALYSIS SURELY IMPROPER TREATMENT OF FARM ANIMALS GOES ON TODAY AS IT HAS IN THE PAST AND MONITORING AND ENFORCEMENT CAN PROTECT LIVESTOCK AS WELL AS HUMAN HEALTH BUT THE FACT REMAINS THAT NEW PROCESSES AND ORGANIZATIONAL STRUCTURES ARE PUTTING MORE MEAT ON AMERICA'S TABLE IT MAY NOT BE TO EVERYONE'S TASTE BUT IT OFTEN SUPPLIES PROTEINS THAT OTHERWISE WOULD BE MISSING FROM TOO MANY DIETS AND IT SATISFIES PUBLIC WANTS UNTIL SUCH TIME AS TEARJERKING ADS MANAGE TO CHANGE THOSE DESIRES OR UNTIL SOME PEOPLE ESTABLISH THEMSELVES AND THEIR MORALITY AS MORE EQUAL THAN THE REST OF AMERICA TO BORROW FROM GEORGE ORWELL'S BARNYARD ALLEGORY SMART AND SENSITIVE PIGS WILL HAVE TO MAKE DO WITH LESS COMMUNING WITH NATURE SEE RELATED LETTERS LETTERS TO THE EDITOR YOUR DINNER LED A HORRIBLE LIFE WSJ JULY 1 1993 9306140086 YY93 MM07 9307010082 930629 WHO'S NEWS STOREHOUSE APPOINTS CARLTON'S EDELMAN TO BE CHIEF EXECUTIVE LONDON STOREHOUSE PLC APPOINTED KEITH EDELMAN THE CURRENT MANAGING DIRECTOR OF CARLTON COMMUNICATIONS PLC AS CHIEF EXECUTIVE OFFICER MR EDELMAN WHO WILL BEGIN AT THE UK RETAILER ON AUG 23 SUCCEEDS DAVID DWORKIN WHO RESIGNED FROM STOREHOUSE IN FEBRUARY TO JOIN LOS ANGELESBASED DEPARTMENTSTORE CHAIN CARTER HAWLEY HALE STORES INC THE 42YEAROLD MR EDELMAN HAS BEEN MANAGING DIRECTOR OF CARLTON SINCE 1991 PREVIOUSLY HE WAS A DIRECTOR OF UK LEISURE GROUP LADBROKE GROUP PLC WHERE HE WAS CHAIRMAN OF TEXAS HOMECARE A HOMEIMPROVEMENT STORE CHAIN MR EDELMAN ALSO WILL BECOME CHIEF EXECUTIVE OF BHS DEPARTMENT STORES WHICH IS STOREHOUSE'S MAIN OPERATING DIVISION SINCE THE DISPOSALS THIS YEAR OF THE HABITAT AND CONRAN'S HOMEFURNISHINGS CHAINS AND RICHARDS WOMENSWEAR CHAINS STOREHOUSE ALSO OWNS MOTHERCARE A CHAIN OF STORES FOR NEW PARENTS AND BLAZER MENSWEAR STORES 9307010166 930524 WHY MS BRICKMAN OF SARAH LAWRENCE NOW RALLIES WORKERS NEW BREED OF LABOR ORGANIZER IS YOUNG MOSTLY FEMALE AND UNIONS' BEST HOPE BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL CANTON OHIO RACHEL BRICKMAN REMEMBERS WAITING TABLES AT A COUNTRY CLUB ONE SUMMER I NEVER GOT TREATED WORSE IN MY LIFE SHE SAYS NOW MS BRICKMAN IS TRYING TO IMPROVE THE LOT OF THE WORKING CLASS THREE YEARS AFTER GRADUATING FROM SARAH LAWRENCE COLLEGE SHE IS A UNION ORGANIZER EARLIER THIS YEAR SHE SUCCEEDED IN ORGANIZING WORKERS AT ST LUKE LUTHERAN HOME HERE AFTER TWO PRIOR EFFORTS BY OTHERS TO UNIONIZE THE 226 EMPLOYEES HAD FAILED NOW SHE IS BATTLING TO UNIONIZE WORKERS AT THE CHAPEL HILL COMMUNITY HOME IN NEARBY CANAL FULTON PRODDED CAJOLED AND PUSHED BY MS BRICKMAN THE WORKERS ARE PREPARING TO VOTE ON WHETHER TO JOIN THE SERVICE EMPLOYEES INTERNATIONAL UNION'S DISTRICT 1199 IF THEY VOTE YES IT WILL MARK THE 10TH CONSECUTIVE VICTORY IN THE 24YEAROLD MS BRICKMAN'S PERFECT RECORD PART HARDLINER PART SOUNDING BOARD PART PERPETUALMOTION MACHINE SHE IS A LONG WAY FROM PRESTIGIOUS SARAH LAWRENCE IN SUBURBAN NEW YORK WHERE SHE WAS A PHILOSOPHY MAJOR WITH TRAINING IN MODERN DANCE TO RECRUIT LATESHIFT WORKERS SHE OFTEN SPENDS THE NIGHT DRIVING AROUND BAD NEIGHBORHOODS IN HER RED DODGE SHADOW UNION ORGANIZING SHE SAYS IS A REAL TANGIBLE WAY TO CHANGE PEOPLES' LIVES MS BRICKMAN IS IN THE FOREFRONT OF A UNION REJUVENATION THAT MIGHT BE CALLED NORMA RAE GOES TO COLLEGE KATHERINE KIRSCH A 1992 BARNARD COLLEGE GRAD HEADED FOR NEVADA TO BRING CASINO WORKERS INTO THE UNITED STEELWORKERS' UNION INGRID NAVA A FORMER STANFORD UNIVERSITY STUDENTBODY PRESIDENT IS ORGANIZING HEALTHCARE WORKERS IN CALIFORNIA AND MEGAN PARKE MS BRICKMAN'S COLLEGE ROOMMATE IS UNIONIZING EXPLOSIVESFACTORY WORKERS IN SOUTHERN ILLINOIS THE NEW BREED IS BRINGING A NEW LOOK AND ATTITUDE TO UNION ORGANIZING MS BRICKMAN CERTAINLY DOESN'T FIT THE MOLD OF A STEREOTYPICAL UNION ORGANIZER SAYS ROGER KING A PARTNER AT JONES DAY REAVIS & POGUE IN COLUMBUS OHIO WHO IS CURRENTLY BATTLING HER SAYS MS BRICKMAN'S BOSS TOM WOODRUFF I THINK IT DRIVES MANAGEMENT NUTS THEY'RE MUCH MORE USED TO DEALING WITH WHITE MALES LIKE THEMSELVES UNIONS ARE LONGING FOR A SIGN OF HOPE AFTER YEARS IN WHICH ORGANIZED LABOR HAS SHRIVELED TO 115 OF THE NONGOVERNMENT WORK FORCE FROM NEARLY 17 A DECADE AGO THEY SEE THAT HOPE IN DOZENS OF THE BRIGHT YOUNG STUDENTS MOSTLY WOMEN COMING OUT OF HARVARD YALE AND OTHER TOPTIER SCHOOLS WHO AREN'T HEADING FOR LAW SCHOOL WALL STREET OR CORPORATE AMERICA INSTEAD THEY ARE LOOKING FOR A CAUSE AND ORGANIZED LABOR IS TO THEM WHAT THE PEACE CORPS WAS TO THE IDEALISTS OF THE 1960S LIKE MS BRICKMAN MANY WERE RECRUITED BY THE ORGANIZING INSTITUTE WHICH WAS QUIETLY BEGUN THREE YEARS AGO BY THE AFLCIO AND 14 UNIONS TO REVAMP THE WAY LABOR TRAINS THE PEOPLE WHO BRING IN NEW MEMBERS AND NEW DUES ALONGSIDE THE STEELWORKERS AND CARPENTERS INCREASINGLY ARE SMART COLLEGE KIDS COVETED BY CORPORATE AMERICA IT IS PAYING OFF THE NUMBER OF TRAINEES WILL GROW TO ABOUT 150 THIS YEAR FROM 25 IN 1990 CAMPUS RECRUITING HAS MUSHROOMED TO ABOUT 300 SCHOOLS WITH A FOCUS ON IVY LEAGUE AND MINORITYDOMINATED COLLEGES EVERY SUCCESSFUL SOCIAL MOVEMENT IN HISTORY INCLUDING THE CIVILRIGHTS MOVEMENT WAS RUN BY YOUNG PEOPLE SAYS RICHARD BENSINGER THE ORGANIZING INSTITUTE'S EXECUTIVE DIRECTOR IF THE LABOR MOVEMENT IS GOING TO SUCCEED AND GROW AGAIN THEY NEED TO BE A BIG PART OF IT FOR MS BRICKMAN THE UNION MOVEMENT IS A WAY TO CHANNEL HER ANGER AND IDEALISM GROWING UP IN MICHIGAN MS BRICKMAN WAS THE OLDEST DAUGHTER IN A FAMILY IN WHICH THE FATHER WAS A SOCIALPSYCHOLOGY PROFESSOR AND HER MOTHER A CATTLE FARMER SHE DECIDED IN HIGH SCHOOL TO LEAVE HER TWOSTOPLIGHT TOWN OF DEXTER AT SCHOOL SHE WAS BANISHED FROM A LITERATURE CLASS FOR PROTESTING AN ASSIGNMENT TO READ THE CLIFFS NOTES FOR THE SCARLET LETTER INSTEAD OF THE BOOK ITSELF AT SARAH LAWRENCE SHE RAN THROUGH A HOST OF LIBERAL CAUSES FROM WOMEN'S RIGHTS TO ABORTION ISSUES THEN WALKING TO HER SENIORYEAR JOB AT THE NEW YORK STATE ATTORNEY GENERAL'S OFFICE SHE PASSED PICKETS AT NYNEX CORP SOON MS BRICKMAN WAS ORGANIZING SARAH LAWRENCE STUDENTS TO HELP THE STRIKERS IN ONE EARLY EFFORT SHE URGED FELLOW STUDENTS TO WAIT FOR THE CONCLUSION OF THE NYNEX WALKOUT BEFORE PUTTING IN PHONES COLLEGIANS WITHOUT PHONES IT FAILED MISERABLY BUT LATER THAT YEAR IN SUPPORT OF THE MACHINISTS' UNION STRIKING EASTERN AIRLINES MS BRICKMAN LED 50 OF HER COMPATRIOTS IN A MARCH ON LA GUARDIA AIRPORT I REALIZED YOU COULD GET STUDENTS INVOLVED IF YOU SHOWED IT AS A FUN CONFRONTATION WITH AUTHORITY SHE RECALLS NOW SHE IS USING BOTH FUN AND CONFRONTATION IN HER 21000AYEAR JOB TO PERSUADE OHIO HEALTHCARE WORKERS TO JOIN THE SERVICEEMPLOYEES UNION IN 1991 ALONE SHE SPENT 260 NIGHTS IN MOTELS HER CAR HAS A TWOFOOT CRACK IN THE WINDSHIELD AND 87000 MILES ON ITS ENGINE AND HER GRANDFATHER A RETIRED PALEONTOLOGIST WONDERS WHEN SHE IS GOING TO STOP WORKING FOR WHAT MANY CONSIDER THAT DINOSAUR OF AMERICAN WORK FORCE UNIONS AND GO TO LAW SCHOOL BUT MS BRICKMAN SAYS HER CAREER IS NO FAD SHE SAYS SHE HOPES TO BE ORGANIZING OR TRAINING ORGANIZERS 20 YEARS FROM NOW FOR NOW THOUGH SHE WANTS TO ADD TO THE 1200 NEW MEMBERS SHE ALREADY HAS BROUGHT TO THE SERVICEEMPLOYEES UNION SHE SUCCEEDS UNION OFFICIALS AND WORKERS SAY PARTLY BECAUSE HER REMARKABLE ENERGY LEVEL LETS HER MEET WORKERS HEADING FOR THEIR JOBS AT 5 AM WRITE PAMPHLETS AT 7 MAKE HOME VISITS TO WORKERS THE REST OF THE MORNING SKIP LUNCH TO MAKE PHONE CALLS HOLD AFTERNOON GROUP MEETINGS PASS OUT THE LEAFLETS IN THE EARLY EVENING AND THEN WAIT IN ALLEYS BEHIND NURSING HOMES TO MEET WORKERS ENDING THEIR SHIFT AT 10 PM SHE'S THE ONE WHO HOLDS ALL THE PIECES TOGETHER SAYS DEAN DUDASH A NURSING AIDE AT ST LUKE THE HOME ORGANIZED EARLIER THIS YEAR SHE DOESN'T DUCK CONFRONTATION ARGUING THAT COMPROMISE DOESN'T HAVE ANY ROLE IN ORGANIZING BUT ALSO APPLIES A LIGHT TOUCH AT TIMES ONE WAY IS HAVING WORKERS POST ON BULLETIN BOARDS FLIERS CRITICIZING MANAGEMENT WE CAN HAVE SOME FUN WE PUT 'EM UP THEY TAKE 'EM DOWN WORKERS LOVE THAT SHE SAYS HER CURRENT CAMPAIGN IS AGAINST THE CHAPEL HILL COMMUNITY HOME A MODERN NURSING HOME IN THE RURAL TOWN OF CANAL FULTON ABOUT 15 MILES FROM HERE IN FEBRUARY 70 OF THE ROUGHLY 150 WORKERS SIGNED CARDS IN FAVOR OF THE UNION BUT LABOR LAW DICTATES THAT UNIONS MUST WIN TWO VOTES TO REPRESENT WORKERS ONE TO HOLD THE ELECTION AND ANOTHER TO VOTE THE UNION IN THE FINAL BALLOT WILL PROBABLY BE HELD NEXT MONTH SO MS BRICKMAN IS TRYING TO HOLD HER SUPPORT TOGETHER AT A LOCAL VFW POST SHE LOOKS LIKE A COLLEGE SEMINAR LEADER HANDS ON KNEES IN THE MIDDLE OF A HORSESHOE OF TABLES LET'S GO AROUND THE TABLE AND TELL WHY WE WANT THE UNION MS BRICKMAN INSTRUCTS THE GROUP OF 15 MOSTLY MIDDLEAGED WORKERS I WAS HURT ON THE JOB THREE YEARS AGO AND I WAS DISCIPLINED FOR IT SAYS BETTY ISAACS A NURSING AIDE I DON'T WANT TO BE TREATED LIKE A CHILD SAYS ANOTHER WOMAN ADDS COOK SANDY DORKOFF I JUST WANT RESPECT FOR THE JOB I DO MS BRICKMAN SMILES YOU'RE AN IMPRESSIVE GROUP SHE SAYS CHAPEL HILL'S LAWYER MR KING SAYS DISCIPLINARY MOVES BY THE COMPANY WERE RELATIVELY MINOR MATTERS THAT ARE BEING USED BY THE UNION IN THE MIDDLE OF A CAMPAIGN THE PEOPLE IN QUESTION WERE TREATED EXACTLY THE SAME AS OTHER EMPLOYEES IN SIMILAR SITUATIONS THE GROUP ASSIGNS TASKS SOME WOMEN WILL MAKE TELEPHONE CALLS OTHERS WILL TAKE COLLEAGUES FOR COFFEE AND TALK AT A HARDEE'S RESTAURANT MS BRICKMAN AGREES TO HAND OUT LEAFLETS AT 5 AM THE NEXT WEDNESDAY THEY GET A KICK OUT OF IT WHEN I AGREE TO WORK AT 5 SHE SAYS SEE RELATED LETTERS LETTERS TO THE EDITOR OUTDATED IDEALISM OF A RABBLEROUSER WSJ JULY 1 1993 9305240166 YY93 MM07 9306300197 930630 MARKETING & MEDIA FORBES TO LAUNCH QUARTERLY JOURNAL OF MEDIA CRITICISM BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FORBES INC IS LAUNCHING A NEW QUARTERLY MAGAZINE OF MEDIA CRITICISM IN OCTOBER THAT IT CLAIMS WILL IF CALLED FOR BITE THE HAND THAT FEEDS IT THE FORBES MEDIAGUIDE QUARTERLY IS A SPINOFF OF THE ANNUAL MEDIA GUIDE A RANKING OF BUSINESS AND ECONOMIC JOURNALISTS THAT FORBES ACQUIRED FROM POLYCONOMICS INC LAST AUGUST TERRY EASTLAND EXECUTIVE EDITOR OF THE QUARTERLY SAID THE NEW MAGAZINE WHICH WILL CRITICIZE PRINT AND BROADCAST MEDIA WILL NOT SPARE FORBES WITHERING CRITIQUES IF THEY ARE JUSTIFIED IN AN UNUSUAL EDITORIAL POLICY THE NEW QUARTERLY WILL ALSO RELY ON ARTICLES AND ESSAYS FROM WRITERS WHO ALREADY COVER THE MEDIA INCLUDING FORBES FOR OTHER PUBLICATIONS SUCH AS HOWARD KURTZ MEDIA REPORTER FOR THE WASHINGTON POST MR KURTZ WILL WRITE ABOUT PRINT AND TV COVERAGE OF PRESIDENTIAL NOMINATIONS FOR THE FIRST ISSUE MR KURTZ A SHARPEYED OBSERVER OF THE PRESS SEES NO CONFLICT OF INTEREST IN BEING PAID TO WRITE FOR THE MEDIAGUIDE AND HIS ROLE OF REPORTING ON THE MEDIA INCLUDING FORBES IT'S ABSOLUTELY LUDICROUS TO SUGGEST A MEDIA REPORTER CAN'T WRITE AN OCCASIONAL FREELANCE PIECE ESPECIALLY WHEN I HAVE CONSISTENTLY BEEN TOUGH ON THE WASHINGTON POST WHO AFTER ALL PAYS MY SALARY HE SAID MR KURTZ CLEARS ANY FREELANCE STORY FIRST WITH POST EDITORS MR EASTLAND THE FORMER PRESS COLUMNIST FOR THE AMERICAN SPECTATOR AND A RESIDENT FELLOW AT THE ETHICS AND PUBLIC POLICY CENTER IN WASHINGTON DC DESCRIBES HIMSELF PERSONALLY AS A POLITICAL CONSERVATIVE HOWEVER HE SAID THE MEDIAGUIDE WON'T ATTEMPT TO GRIND A POLITICAL AX OR FURTHER A POLITICAL AGENDA MR EASTLAND PROMISES SIX TO EIGHT PIECES PER ISSUE EACH AT LENGTHS BETWEEN 3000 AND 4000 WORDS PLUS AS MANY AS 12 DEPARTMENTS DESPITE SUCH WORDINESS HE INSISTS THE MAGAZINE WILL BE WRITTEN FOR THE MEDIA CONSUMER NOT FOR JOURNALISTS OUR FOCUS IS ON THE PRODUCT OF JOURNALISM NOT THE BUSINESS OF JOURNALISM 9306300196 930630 MARKETING & MEDIA FCC GRANTS WAIVER FOR MURDOCH TO OWN THE NEW YORK POST WASHINGTON THE FEDERAL COMMUNICATIONS COMMISSION VOTED 21 TO GRANT RUPERT MURDOCH PERMISSION TO OWN BOTH THE NEW YORK POST AND NEW YORK TELEVISION STATION WNYW THE FOX TELEVISION STATIONS INC UNIT OF MR MURDOCH'S NEWS CORP WHICH OWNS WNYW CHANNEL 5 APPLIED IN MARCH FOR A PERMANENT WAIVER OF THE FCC'S RULE THAT BARS OWNERSHIP OF BOTH A BROADCAST STATION AND A NEWSPAPER IN THE SAME MARKET SINCE THEN MR MURDOCH HAS BEEN OPERATING THE NEWSPAPER WHICH IS IN BANKRUPTCY PROCEEDINGS UNDER A TEMPORARY WAIVER MR MURDOCH FACES OTHER HURDLES IN ACQUIRING THE PAPER THE FEDERAL BANKRUPTCY COURT IN MANHATTAN MUST RULE ON WHETHER MR MURDOCH CAN BUY BACK THE PAPER WHICH HE WAS FORCED BY CONGRESS TO SELL AFTER ACQUIRING WNYW IN 1986 AND HE MUST WORK OUT AGREEMENTS WITH THE NEW YORK POST'S UNIONS FCC CHAIRMAN JAMES QUELLO AND COMMISSIONER ERVIN DUGGAN VOTED TO GRANT THE WAIVER WHILE COMMISSIONER ANDREW BARRETT DISSENTED SAYING THE DECISION WAS PREMATURE AMONG OTHER THINGS MR BARRETT SAID IN A STATEMENT THAT UNTIL THE BANKRUPTCY COURT COMPLETES ITS WORK I BELIEVE THE COMMISSION SHOULD ONLY CONFIRM THAT FOX IS ELIGIBLE FOR A TEMPORARY WAIVER THAT WOULD EXPIRE IN A YEAR OR AT THE TIME OF WNYW'S LICENSE RENEWAL WHICHEVER IS LONGER MR BARRETT ALSO QUESTIONED JUST HOW MUCH THE WAIVER CONTRIBUTES TO THE DIVERSITY IN MEDIA VOICES IN NEW YORK THE COMMISSION HE SAID SHOULD HAVE HELD A HEARING INTO QUESTIONS OF FACT LAW AND POLICY BEFORE GRANTING THE WAIVER ANOTHER CONTENDER FOR THE POST CHAMPION HOLDING CO YESTERDAY WITHDREW FROM THE BIDDING SAYING THAT NEW FINANCIAL INFORMATION FROM THE POST RAISED QUESTIONS ABOUT THE NEWSPAPER'S VIABILITY THE FCC'S DECISION IS CERTAIN TO BE APPEALED BY HISPANIC GROUPS THAT OPPOSED THE WAIVER CONTENDING THAT FOX AND MR MURDOCH HAVE SHOWN A PATTERN OF MISCONDUCT AND THAT OWNERSHIP OF BOTH THE POST AND WNYWTV WOULD LEAD TO UNJUSTIFIABLE CONCENTRATION OF MEDIA OWNERSHIP 9306300195 930630 WHO'S NEWS ARK RESTAURANTS CORP ARK RESTAURANTS CORP NEW YORK JANE FINCKE ELLIS 36 YEARS OLD WAS NAMED VICE PRESIDENT OF DEVELOPMENT AND A DIRECTOR AT THIS RESTAURANT OPERATOR MS ELLIS WHOSE POSITION IS NEWLY CREATED HAD BEEN VICE PRESIDENT RETAIL AT ROCKEFELLER CENTER MANAGEMENT CORP A MEMBER OF ROCKEFELLER GROUP INC IN NEW YORK HER ELECTION INCREASES THE BOARD TO EIGHT MEMBERS 9306300194 930630 WHO'S NEWS ROYAL BANK OF CANADA ROYAL BANK OF CANADA MONTREAL ANTHONY A WEBB 50 YEARS OLD WAS SELECTED TO BECOME PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE ROYAL TRUST GROUP OF FINANCIAL SERVICES COMPANIES THAT IS BEING ACQUIRED BY ROYAL BANK MR WEBB FORMERLY THE BANK'S SENIOR VICE PRESIDENT PERSONAL FINANCIAL SERVICES CURRENTLY HEADS ROYAL BANK'S TRANSITION TEAM PLANNING THE INTEGRATION OF THE ROYAL TRUST OPERATIONS MR WEBB'S APPOINTMENT MUST BE APPROVED BY A NEW BOARD THAT ROYAL BANK WILL SELECT TO OVERSEE THE ROYAL TRUST OPERATIONS ROYAL BANK HAS AGREED TO ACQUIRE ALL THE OPERATIONS AND MOST OF THE LOAN PORTFOLIO OF TORONTO'S GENTRA INC FORMERLY NAMED ROYAL TRUSTCO LTD IN A TRANSACTION VALUED AT ABOUT 165 BILLION CANADIAN DOLLARS US129 BILLION THE SALE IS EXPECTED TO CLOSE BY SEPTEMBER SUBJECT TO REGULATORY AND OTHER APPROVALS 9306300193 930630 WHO'S NEWS UGI CORP UGI CORP VALLEY FORGE PA ANNE POL 46 YEARS OLD WAS NAMED A DIRECTOR OF THIS GAS AND ELECTRIC UTILITY AND NATIONAL MARKETER OF PROPANE MS POL WHO IS VICE PRESIDENT OF NEW PRODUCT PROGRAMS FOR PITNEY BOWES MAILING SYSTEMS A UNIT OF PITNEY BOWES INC INCREASES BOARD MEMBERSHIP TO NINE 9306300192 930630 WHO'S NEWS OWENSCORNING NAMES DEVONSHIRE ITS FINANCIAL CHIEF BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL OWENSCORNING FIBERGLAS CORP NAMED DAVID W DEVONSHIRE TO BE SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER IN A MOVE THAT SIGNALS THE TOLEDO OHIOBASED CONCERN'S GROWING EMPHASIS ON INTERNATIONAL SALES MR DEVONSHIRE 48 YEARS OLD WILL LEAVE HIS POST AS VICE PRESIDENT OF FINANCE AT HONEYWELL INC JULY 19 AT HONEYWELL MR DEVONSHIRE HAS REPORTED TO THE CHIEF FINANCIAL OFFICER IN AN INTERVIEW HE SAID HE WAS PROMPTED TO CONSIDER LEAVING THE MINNEAPOLIS COMPANY WHEN HE WAS PASSED OVER FOR PROMOTION TO THE TOP FINANCE JOB IN APRIL AT OWENSCORNING MR DEVONSHIRE SUCCEEDS PAULA HJ CHOLMONDELEY WHO HAS BEEN ACTING FINANCE CHIEF SINCE DECEMBER 1992 AND WHO CONTINUES AS VICE PRESIDENT OF BUSINESS DEVELOPMENT AND GLOBAL SOURCING MR DEVONSHIRE WAS HIRED AS HONEYWELL'S CONTROLLER IN 1990 BY THENFINANCE CHIEF CHRISTOPHER STEFFEN A HARDCHARGING TURNAROUND EXPERT MR STEFFEN'S AGGRESSIVE STYLE GRABBED HEADLINES EARLIER THIS YEAR WHEN HE RESIGNED FROM EASTMAN KODAK CO AFTER ONLY 10 WEEKS ON THE JOB MR DEVONSHIRE WAS PROMOTED BY MR STEFFEN AND LIKE HIS MENTOR HE HAS A SHARP COSTCUTTING PENCIL SAYS ROBERT DAMON MANAGING DIRECTOR OF SPENCERSTUART THE EXECUTIVE RECRUITING FIRM THAT PLACED HIM MR DEVONSHIRE WILL REPORT TO OWENSCORNING'S CHIEF EXECUTIVE OFFICER GLEN HINER WHO WAS ON VACATION YESTERDAY AND COULDN'T BE REACHED BRADFORD OELMAN VICE PRESIDENT OF CORPORATE RELATIONS SAID MR DEVONSHIRE BEAT OUT OTHER CANDIDATES BECAUSE OF HIS BACKGROUND IN INTERNATIONAL FINANCE AT BOTH HONEYWELL AND EARLIER AT BAXTER INTERNATIONAL INC HE OVERSAW FOREIGN FINANCE OPERATIONS OWENSCORNING A BUILDING MATERIALS MAKER RECEIVES 25 TO 30 OF ITS 3 BILLION IN ANNUAL REVENUE FROM INTERNATIONAL SALES SECURITIES ANALYSTS SAID THAT PERCENTAGE IS EXPECTED TO GROW 9306300191 930630 RAYTHEON CUTS WORK FORCE LEXINGTON MASS RAYTHEON CO SAID IT LAID OFF 674 WORKERS MOSTLY IN ITS MISSILE SYSTEMS DIVISION IN MASSACHUSETTS A SPOKESMAN CITED CUTBACKS IN MILITARY SPENDING FOR THE LAYOFFS WHICH AMOUNTED TO 11 OF THE COMPANY'S WORK FORCE OF 61900 AT THE START OF THE MONTH RAYTHEON MAKES MISSILES INCLUDING THE PATRIOT AIRDEFENSE MISSILE IT ALSO MAKES APPLIANCES AND SMALL AIRCRAFT AND PROVIDES CONSTRUCTION AND ENVIRONMENTAL SERVICES 9306300190 930630 WHO'S NEWS AMERICAN MEDICAL ALERT CORP AMERICAN MEDICAL ALERT CORP OCEANSIDE NY JOHN H ROGERS 46 YEARS OLD WAS NAMED VICE PRESIDENT OF OPERATIONS A NEW POSITION AT THIS DEVELOPER OF TWOWAY VOICE COMMUNICATION DEVICES FOR EMERGENCY RESPONSE ASSISTANCE MR ROGERS HAD BEEN OPERATIONS MANAGER 9306300189 930630 INTERNATIONAL CHALLENGE BANK TO BUY SOME AUSTRALIAN ASSETS OF NATWEST SUBSIDIARY SPECIAL TO THE WALL STREET JOURNAL PERTH AUSTRALIA CHALLENGE BANK LTD AGREED TO ACQUIRE CERTAIN RETAIL AND BUSINESS BANKING ASSETS FROM NATWEST AUSTRALIA BANK LTD A UNIT OF NATIONAL WESTMINSTER BANK PLC OF BRITAIN A PRICE FOR THE TRANSACTION WASN'T DISCLOSED THE AGREEMENT WILL TRANSFER TO CHALLENGE 180 MILLION AUSTRALIAN DOLLARS US1202 MILLION OF ASSETS IN THE STATE OF WESTERN AUSTRALIA AND A120 MILLION OF ASSETS IN THE STATE OF SOUTH AUSTRALIA MEANTIME NATWEST SAID IT IS REVIEWING FOR POSSIBLE SALE ALL OF ITS AUSTRALIAN RETAIL BANKING OPERATIONS THE REVIEW WAS PROMPTED BY CONCERNS OVER WHETHER IT COULD BECOME A MAJOR BANK IN THE COUNTRY NATWEST AUSTRALIA BANK SAID THE SALE OF THE ASSETS CONTINUES A RESTRUCTURING OF THE BANK THAT IS AIMED AT FOCUSING ACTIVITIES ON WHOLESALE AND INVESTMENT BANKING COMPLETION OF THE TRANSACTION IS SUBJECT TO A DUE DILIGENCE REVIEW OF THE ASSETS CHALLENGE SAID TONY HOWARTH MANAGING DIRECTOR OF CHALLENGE SAID THE ACQUISITION FITS THE BANK'S STRATEGIC OBJECTIVE IN THE TWO STATES 9306300188 930630 CARGILL UNIT SETS EXPANSION MINNEAPOLIS NORTH STAR STEEL CO A UNIT OF CLOSELY HELD CARGILL INC SAID IT WILL MORE THAN DOUBLE ANNUAL PRODUCTION AT ITS MINIMILL IN ST PAUL MINN TO 650000 TONS FROM 300000 THE 40 MILLION EXPANSION WILL TAKE TWO YEARS AND INCLUDE A NEW FURNACE NORTH STAR'S MOVE MARKS THE LATEST EXPANSION FOR THE FASTGROWING STEEL MINIMILLS THE COMPANY ALSO SAID RECENTLY THAT IT WOULD BUILD A NEW MILL IN THE SOUTHWEST THE ST PAUL MILL MAKES STEEL BARS 9306300187 930630 CANADIAN BANKRUPTCIES DROP OTTAWA CANADIAN BANKRUPTCIES TOTALED 5356 IN MAY A 10 DECLINE FROM 5968 A YEAR EARLIER THE FEDERAL CONSUMER AND CORPORATE AFFAIRS DEPARTMENT SAID FOR JANUARY THROUGH MAY BANKRUPTCIES TOTALED 29189 AN 11 DECLINE FROM 32877 A YEAR EARLIER THE MAY FIGURE INCLUDED 4411 BANKRUPTCIES BY INDIVIDUALS A 98 DECLINE FROM 4891 A YEAR EARLIER AND 945 BUSINESS BANKRUPTCIES A 12 DECLINE FROM 1077 9306300186 930630 AMOCO UNIT TO REDEEM DEBT CHICAGO AMOCO CO A UNIT OF AMOCO CORP AN OIL CONCERN SAID IT WILL REDEEM ON JULY 30 729 MILLION PRINCIPAL AMOUNT OF ITS 6 DEBENTURES DUE JAN 15 1998 THE REDEMPTION PRICE WILL BE 100 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST 9306300185 930630 ECONOMY US CONSUMERS SHOW DECLINE IN CONFIDENCE JUNE GAUGE IS OFF 3 POINTS TO EIGHTMONTH LOW LEADING INDICATORS FALL BY COLLEEN AE SLEVIN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONSUMER CONFIDENCE CONTINUED TO FALTER THIS MONTH RAISING CONCERN ABOUT HOW MUCH AMERICANS' SPENDING CAN INCREASE IF THEIR MOOD IS DOWN IN THE DUMPS THE CONFERENCE BOARD SAID ITS CONSUMER CONFIDENCE INDEX DROPPED THREE POINTS TO 589 IN JUNE THE LOWEST READING IN EIGHT MONTHS MORE RESPONDENTS BELIEVED THAT BUSINESS CONDITIONS WERE BAD THIS MONTH THAN LAST AND 41 SAID JOBS WERE HARD TO GET BUSINESSES AND CONSUMERS ARE LOCKED TOGETHER IN A SLOWMOVING MINUET SAID CHARLES RENFO CHIEF ECONOMIST AT ALPHAMETRICS CORP IN BALA CYNWYD PA AND IT DOESN'T LOOK AS IF THE CONSUMER IS LIKELY TO PICK UP THE TEMPO SIGNIFICANTLY SEPARATELY THE COMMERCE DEPARTMENT SAID ITS GUIDELINE OF FUTURE ECONOMIC HEALTH DROPPED 03 IN MAY THE DECLINE IN THE INDEX OF LEADING INDICATORS FOLLOWS GROWTH OF 02 IN APRIL AND A 1 DROP IN MARCH SIX OF THE 11 INDICATORS THAT MAKE UP THE INDEX CAUSED IT TO DROP THEY WERE CONSUMER EXPECTATIONS CHANGE IN MANUFACTURERS' UNFILLED ORDERS OF DURABLE GOODS MANUFACTURERS' NEW ORDERS FOR CONSUMER GOODS AVERAGE WEEKLY CLAIMS FOR STATE UNEMPLOYMENT BENEFITS THE CHANGE IN SENSITIVE MATERIAL PRICES AND DELIVERY DELAYS FOUR INDICATORS HELPED THE LEADING INDEX THE MONEY SUPPLY CONTRACTS AND ORDERS FOR PLANT EQUIPMENT BUILDING PERMITS AND STOCK PRICES THE AVERAGE WORKWEEK WAS UNCHANGED WE HAVE AN ECONOMY THAT IS TRYING TO EXPAND BUT STILL CONFRONTS A CONSUMER THAT IS EXTREMELY UNCERTAIN SAID DONALD RATAJCZAK DIRECTOR OF THE ECONOMIC FORECASTING CENTER AT GEORGIA STATE UNIVERSITY MR RATAJCZAK ATTRIBUTED THIS UNCERTAINTY IN PART TO THE CONCERN ABOUT THE INABILITY OF MANY UNEMPLOYED MIDDLE MANAGERS PUSHED OUT OF BUSINESSES AS A RESULT OF RESTRUCTURING TO FIND SIMILAR NEW JOBS THIS CLIMATE MAKES IT DIFFICULT FOR CONSUMERS TO MAKE BIG DECISIONS IN WHAT TO BUY HE SAID IN ANOTHER PIECE OF DISCONCERTING ECONOMIC NEWS SALES OF NEW HOUSES DROPPED 21 IN MAY ACCORDING TO THE COMMERCE DEPARTMENT DESPITE FAVORABLE INTEREST RATES FOR HOME BUYERS BUT ANALYSTS VIEWED THE PLUNGE AS A CORRECTION AFTER A 21 RISE IN APRIL RATHER THAN A SIGN THAT THE HOUSING MARKET IS DETERIORATING THE DROP WAS MOSTLY A CORRECTION BACK TO NORMAL LEVELS SAID MICHAEL CARLINER OF THE NATIONAL ASSOCIATION OF HOME BUILDERS ACCORDING TO MR CARLINER THE LARGE INCREASE IN SALES RECORDED IN APRIL WAS DUE IN PART TO THE INJECTION OF BUYERS WHO DEFERRED THEIR PURCHASES DURING THE PREVIOUS MONTHS BECAUSE OF BAD WEATHER BUT HE ADDED THAT HIGHER LUMBER PRICES HAVE DONE THEIR PART IN LOWERING NEW HOME SALES AS WELL THE FIGURES IN ALL THE REPORTS ARE ADJUSTED FOR SEASONAL VARIATIONS HERE ARE THE NET CONTRIBUTIONS OF THE COMPONENTS OF THE COMMERCE DEPARTMENT'S INDEX OF LEADING INDICATORS THE SEASONALLY ADJUSTED INDEX NUMBERS 1982=100 FOR MAY AND THE CHANGE FROM APRIL ARE THE RATIO OF COINCIDENT TO LAGGING INDICATORS WAS 120 UNCHANGED FROM 120 IN APRIL 9306300184 930630 TECHNOLOGY ALAMAR SIGNS PACT WITH IWAKI SACRAMENTO CALIF ALAMAR BIOSCIENCES INC SAID IT SIGNED A DISTRIBUTION AGREEMENT WITH TOKYO'S IWAKI & CO UNDER THE AGREEMENT IWAKI WILL DISTRIBUTE ALAMAR'S NONTOXIC RESEARCH INDICATOR DYE IN JAPAN THE DYE IS USED IN DIAGNOSTIC TESTING OF PHARMACEUTICALS HOUSEHOLD CLEANERS AND PERSONAL HYGIENE PRODUCTS 9306300183 930630 WHO'S NEWS PHOENIX TECHNOLOGIES LTD PHOENIX TECHNOLOGIES LTD NORWOOD MASS ANTHONY P MORRIS WAS ELECTED A DIRECTOR BOOSTING THE BOARD TO SEVEN MEMBERS PHOENIX A MAKER OF PERSONAL COMPUTER COMPATIBILITY SOFTWARE SAID THAT MR MORRIS IS A PRINCIPAL OF MORRIS & ASSOCIATES A MANAGEMENT CONSULTING AND FINANCIAL ADVISORY FIRM FOR THE PC INDUSTRY 9306300182 930630 WHO'S NEWS INTERNATIONAL BUSINESS MACHINES CORP INTERNATIONAL BUSINESS MACHINES CORP ARMONK NY HELMUT SIHLER 63 YEARS OLD RETIRED FROM THE COMPUTER COMPANY'S BOARD MR SIHLER A FORMER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF GERMANY'S HENKEL KGAA HAS SERVED ON THE BOARD SINCE 1989 HIS DEPARTURE LEAVES 17 IBM BOARD MEMBERS IBM DIDN'T NAME A SUCCESSOR 9306300181 930630 WHO'S NEWS LIPOSOME CO LIPOSOME CO PRINCETON NJ EDWARD G SILVERMAN 40 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT STRATEGIC OPERATIONS AND CHARLES L WILLIAMS 52 WAS NAMED VICE PRESIDENT MANUFACTURING OPERATIONS AT THIS DEVELOPER OF LIPOSOME AND LIPIDBASED PHARMACEUTICALS BOTH POSITIONS ARE NEWLY CREATED MR SILVERMAN HAD BEEN VICE PRESIDENT STRATEGIC PLANNING AND BUSINESS DEVELOPMENT MR WILLIAMS HAD BEEN EXECUTIVE DIRECTOR FOR MANUFACTURING 9306300180 930630 WORLD MARKETS TOKYO SHARES DIVE AS BRIBERY SCANDAL SHAKES INVESTORS SLASHES VOLUME LONDON PRICES DROP A WALL STREET JOURNAL NEWS ROUNDUP TOKYO EQUITIES FELL SHARPLY AND BROADLY TUESDAY AS FRAGILE MARKET SENTIMENT WAS SHAKEN BY AN UNFOLDING BRIBERY SCANDAL IN THE CONSTRUCTION INDUSTRY AND VOLUME HIT ITS LOWEST LEVEL IN FOUR MONTHS LONDON STOCKS DROPPED AS INVESTORS RETREATED AHEAD OF THIS WEEK'S BRITISH GOVERNMENTBOND AUCTION AND GERMAN CENTRAL BANK MEETING ON INTEREST RATES WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10634 DOWN 054 REFLECTING DROPS IN THE AMERICAS AND ASIA/PACIFIC MARKETS AND INCREASES IN EUROPEAN MARKETS ADVANCED TECHNOLOGY/MEDICAL DEVICES STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 6409 UP 236 OR 38 WITH MEDTRONIC OF THE US POSTING A 59 GAIN IN ITS LOCAL CURRENCY HEAVY CONSTRUCTION STOCKS TRAILED AT 8621 DOWN 261 OR 29 WITH HAZAMA OF JAPAN SLIDING 91 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH JUMPED 22719 POINTS MONDAY SLUMPED 34334 OR 17 TO 1954342 WHICH ALSO WAS THE INTRADAY LOW ON WEDNESDAY THE NIKKEI ROSE 5250 POINTS TO CLOSE THE MORNING SESSION AT 1959592 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 220 MILLION SHARES DOWN FROM 2342 MILLION SHARES ON MONDAY AND THE LIGHTEST TURNOVER SINCE MARCH 1 LOSERS SWAMPED GAINERS 772252 MOST OF THE TOKYO LOSSES OCCURRED IN THE SESSION'S FINAL HOUR WHEN NEWS REPORTS DETAILED THE ARRESTS OF TOP OFFICIALS OF THE CONTRACTING COMPANIES SHIMIZU HAZAMA NISHIMATSU CONSTRUCTION AND MITSUI CONSTRUCTION THE COMPANIES ALLEGEDLY GAVE CASH BRIBES TO SENDAI MAYOR TORU ISHII WHO ALSO WAS TAKEN INTO CUSTODY THE ARRESTS CAME AS SENSITIVE TALKS WITH THE US ON THE CONSTRUCTION INDUSTRY ARE COMING TO A HEAD SHIMIZU PLUNGED 50 YEN OR 57 TO 820 YEN 772 HAZAMA PLUMMETED 51 OR 91 TO 511 NISHIMATSU SHED 80 OR 73 TO 1010 AND MITSUI DIVED 34 OR 63 TO 505 IN THEIR WAKE OTHER CONTRACTORS LOGGED SMALLER LOSSES AFTER CLIMBING TO ITS HIGH AT THE OPENING THE NIKKEI DROPPED BEFORE RECOVERING LATER IN THE MORNING AND WAFFLING NEAR DAYEARLIER LEVELS UNTIL THE LATE SLIDE BEGAN IN ADDITION TO THE CONSTRUCTION SCANDAL NEW ECONOMIC DATA DIDN'T FAVOR THE MARKET JAPAN'S SEASONALLY ADJUSTED JOBLESS RATE ROSE 02 PERCENTAGE POINT TO 25 OF THE LABOR FORCE IN MAY THE HIGHEST LEVEL IN ALMOST FIVE YEARS AND SEASONALLY ADJUSTED PRODUCTION AT JAPANESE FACTORIES AND MINES PLUNGED 24 BANKING SHARES LOST GROUND AFTER RISING THE PREVIOUS DAY ON SPECULATION ABOUT A POTENTIAL JAPANESE INTERESTRATE CUT IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 110 POINTS TO 28860 NEAR THE DAY'S LOW OF 28831 THE FT 30STOCK INDEX DECLINED 53 POINTS TO 22630 VOLUME WAS A MODERATE 562 MILLION SHARES COMPARED WITH 500 MILLION SHARES A DAY EARLIER MANY INVESTORS SAT OUT THE SESSION AHEAD OF TODAY'S RECORD FUNDRAISING EXERCISE BY THE BRITISH GOVERNMENT MARKET PARTICIPANTS WERE CONCERNED THAT THE 325 BILLION 486 BILLION OF 10YEAR GILTS OR GOVERNMENT BONDS TO BE AUCTIONED MIGHT NOT GARNER MUCH INTEREST UNLIKE RECENT AUCTIONS WHICH ALLOWED INSTALLMENT PAYMENTS THE GOVERNMENT IS ASKING FOR SETTLEMENT OF THE FULL PRICE ANOTHER MARKET HURDLE LOOMS TOMORROW WHEN GERMANY'S CENTRAL BANK MAY CONSIDER CUTTING INTEREST RATES BUT THE LONDON MARKET WAS PREPARING FOR DISAPPOINTMENT FINALLY THE POUND'S STRENGTH BEGAN TO WORRY INVESTORS THOUGH A STRONG CURRENCY IMPROVES THE CLIMATE TO CUT LENDING RATES IT ALSO COULD HURT EXPORTS AS THE COUNTRY EMERGES FROM RECESSION IN FRANKFURT SHARE PRICES WERE MIXED THE DAX 30STOCK INDEX INCHED UP 113 POINTS TO 170833 WITH 14 OF THE ISSUES ADVANCING AND 15 RETREATING BUT THE INDEX MANAGED TO STAY ABOVE 1700 AFTER RISING THROUGH THAT LEVEL THE PREVIOUS DAY THOUGH INVESTORS WERE IN AN UNCERTAIN MOOD PARTLY BECAUSE OF A WEAKER DOLLAR THAT STOPPED A WEEKLONG RALLY IN CHEMICAL SHARES PARIS PRICES FELL IN A CORRECTION FOLLOWING A BULLISH PERIOD THE RALLY HAD BEEN EXPECTED TO LOSE STEAM ONCE STRONG DERIVATIVEBASED ACTIVITY SLOWED DOWN BUT DROPPING STOCK PRICES SPARKED LOTS OF SELL ORDERS BY SMALLER INVESTORS WHO GOT NERVOUS AMSTERDAM STOCKS WEAKENED PULLED LOWER BY A WEAKER DOLLAR AND BY PROFITTAKING FOLLOWING RECENT GAINS MILAN SHARES ALSO DROPPED IN VOLATILE TRADING AS THE MARKET AWAITED NEWS ON CORPORATE DEVELOPMENTS AND TALKS BETWEEN UNIONS AND EMPLOYERS ON A PAYSETTING ACCORD VIEWED AS ESSENTIAL TO BRAKE LABOR COSTS AND INFLATION AND ALLOW FURTHER CUTS IN INTEREST RATES IN MADRID EQUITIES EASED DROPPING LATE IN THE SESSION PARTLY BECAUSE OF A WEAK OPENING ON WALL STREET AS WELL AS UNCERTAIN PROSPECTS FOR SPANISH AND EUROPEAN RATE CUTS AND EFFORTS TO FORM A SPANISH COALITION GOVERNMENT IN SYDNEY SHARES ENDED MOSTLY HIGHER BUT INSTITUTIONAL INVESTORS' REWEIGHTING OF PORTFOLIOS DEPRESSED SOME LARGER BLUE CHIPS HONG KONG STOCKS SLID AS MOST PARTICIPANTS REMAINED CAUTIOUS PARTICULARLY ABOUT BLUE CHIPS BEFORE HONG KONG GOV CHRIS PATTEN'S VISIT TO BRITAIN WHERE HE IS EXPECTED TO DISCUSS HIS NEXT STEP IN NEGOTIATIONS WITH CHINA ON ELECTORAL REFORM IN THE COLONY SINGAPORE PRICES CLIMBED ON CONTINUED BARGAINHUNTING AFTER LAST WEEK'S DIVE TAIPEI EQUITIES ROSE LIFTED IN THE FINAL HALF HOUR TO REBOUND FROM EARLIER LOSSES MANILA SHARES ADVANCED ON INSTITUTIONAL BUYING SEOUL STOCKS SHOT UP IN A TECHNICAL RESPONSE TO THE JAPANESE YEN'S STRENGTH AND A COMING ANNOUNCEMENT BY SOUTH KOREA OF A NEW FIVEYEAR ECONOMIC PLAN AMONG CORPORATE DEVELOPMENTS IN TOKYO BRIDGESTONE SKIDDED 50 YEN OR 39 TO 1240 YEN 1168 THE TIRE MAKER CUT ITS FORECAST FOR 1993 UNCONSOLIDATED PRETAX EARNINGS BY 32 TO 40 BILLION YEN 3768 MILLION BLAMING WEAK DEMAND IN JAPAN AND THE YEN'S APPRECIATION WHICH LOWERED RETURNS FROM FOREIGN CURRENCYDENOMINATED EXPORTS IN 1992 BRIDGESTONE HAD PRETAX PROFIT OF 689 BILLION YEN OFF 42 FROM A YEAR EARLIER KAWASAKI STEEL SLIPPED 3 TO 355 CONSOLIDATED PRETAX PROFIT FOR THE YEAR ENDED MARCH 31 DROPPED 70 TO 1614 BILLION YEN AND THE COMPANY POSTED A NET LOSS OF 3004 BILLION YEN COMPARED WITH YEAREARLIER NET INCOME OF 144 BILLION YEN IN HONG KONG TELEVISION BROADCASTS FELL 30 CENTS TO 2050 HONG KONG DOLLARS US265 AFTER RUPERT MURDOCH'S NEWS CORP SAID IT NEEDED MORE TIME TO RECONSIDER ITS PROPOSED BID TO BUY 22 OF THE BROADCASTER FROM ITS CONTROLLING SHAREHOLDERS HERE ARE PRICE TRENDS ON THE WORLD'S MAJOR STOCK MARKETS AS CALCULATED BY MORGAN STANLEY CAPITAL INTERNATIONAL PERSPECTIVE GENEVA TO MAKE THEM DIRECTLY COMPARABLE EACH INDEX CALCULATED IN LOCAL CURRENCIES IS BASED ON THE CLOSE OF 1969 EQUALING 100 THE PERCENTAGE CHANGE IS SINCE YEAREND 9306300179 930630 ECONOMY RECORD RAINS CONTINUE TO SOAK MIDWEST AS PLANTINGS OF CORN AND SOYBEANS LAG BY RICHARD GIBSON AND SCOTT KILMAN STAFF REPORTERS OF THE WALL STREET JOURNAL RECORD RAINS CONTINUE TO DRENCH THE NATION'S BREADBASKET BUT IT'S TOO EARLY TO SAY WHETHER CONSUMERS WILL BE SOAKED WITH HIGHER FOOD PRICES AT THE CHECKOUT COUNTER PLANTINGS OF CORN AND SOYBEANS LAG ACROSS MUCH OF THE MIDWEST AND LONG STRETCHES OF THE SWOLLEN MISSISSIPPI RIVER ARE CLOSED TO BARGE SHIPMENTS OF IMPORTANT FEED GRAINS SOME FARMERS DESPERATE TO GET THEIR CROPS IN ARE RESORTING TO DROPPING SEEDS FROM PLANES USED FOR CROPDUSTING AND GRAIN COMMODITIES PRICES ARE CREEPING UP ECONOMISTS WITH EYES SKYWARD SPOKE WITH CROSSED FINGERS YESTERDAY ABOUT PROSPECTS OF WIDESPREAD FOOD INFLATION SOME SAID THAT WHILE A LITTLE MORE RAIN WOULD PUSH UP THEIR ESTIMATES A CONVERGENCE OF GOOD GROWING WEATHER AND WEAK EXPORT DEMAND COULD PREVENT A WIDESPREAD PRICE INCREASE WHILE THE WEATHER IS PUTTING PRESSURE ON CORN AND SOYBEAN PRICES IT'S TOO EARLY TO SAY IF IT WILL BECOME SOMETHING MEASUREABLE IN TERMS OF FOOD PRICES POTENTIALLY IT MIGHT SAID EDWARD LOTTERMAN AGRICULTURAL ECONOMIST AT THE FEDERAL RESERVE BANK OF MINNEAPOLIS OTHERS ECHOED HIS CONCERN THERE'S NOT MUCH ROOM FOR ERROR SAYS LARRY WIPF DIRECTOR OF REGIONAL ECONOMICS FOR NORWEST CORP A LARGE MINNEAPOLIS COMPANY WITH BANKS SPREAD ACROSS MUCH OF THE NORTHERN US PERHAPS THE LEADING INDICATOR NOW IS SOYBEAN PRICES SOYBEAN MEAL IS AN IMPORTANT FEED COMPONENT FOR POULTRY AND TO A LESSER DEGREE HOGS ALREADY BEAN PRICES HAVE JUMPED ABOUT 8 SINCE JUNE 1 AND SOME GRAIN ANALYSTS ARE PREDICTING THAT A BUSHEL MIGHT FETCH 7 IF THE WEATHER DOESN'T BREAK SOON CENTRAL ILLINOIS FARMERS ARE GETTING ABOUT 620 FOR A BUSHEL OF SOYBEANS NOW CORN PRICES ALSO ARE EDGING UP PRODUCERS TYPICALLY LIQUIDATE THEIR HERDS WHEN FEED PRICES SOAR CAUSING MEAT PRICES TO PLUMMET IN THE SHORT TERM AND THEN RISE SHARPLY AS SUPPLIES DWINDLE A FEW ECONOMISTS ARE RATCHETING UP THEIR FOODPRICE EXPECTATIONS AS WET WEATHER CONTINUES PAUL PRENTICE PRESIDENT OF FARM SECTOR ECONOMICS INC COLORADO SPRINGS COLO SAYS HE IS FORECASTING FOOD PRICES TO CLIMB 25 THIS YEAR GENERAL INFLATION IS RUNNING ABOUT 3 TO 35 SO FAR FOOD INFLATION HAS BEEN ALMOST DORMANT FOR MONTHS PARTLY BECAUSE OF THE DEPRESSED ECONOMY AND CONSUMER UNWILLINGNESS TO SPLURGE AT THE GROCERY STORE CONSUMERS HAVE BEEN BUYING DOWN SAYS RALPH PARLETT AN AGRICULTURE DEPARTMENT ECONOMIST EVEN WITH THE ECONOMIC PICKUP THERE HAS BEEN A LAG IN DEMAND IN GROCERY STORES FOOD PROCESSORS YESTERDAY HEDGED ON WHETHER THEY WILL BE SQUEEZED ON SUPPLIES AND PASS ON PRICE INCREASES TO CONSUMERS THE DEMAND SIDE IS VERY SOFT SAID A PROCUREMENT MANAGER FOR A LARGER MIDWESTERN FOOD PROCESSOR WHO ASKED NOT TO BE IDENTIFIED ON THE SUPPLY SIDE HE SAID THE WHEAT CROP LOOKS VERY GOOD AND WHILE CORN AND BEANS WON'T BE AS GOOD AS WE THOUGHT WE HAVE BIGGER CARRYOVERS FROM LAST YEAR THOSE INVENTORIES WILL HELP KEEP PRICES DOWN BUT WHILE FEED GRAINS HAVE BEEN HARDESTHIT OTHER CROPS ARE UNSCATHED A SPOKESMAN FOR HJ HEINZ CO NOTES THAT TOMATOES AND CUCUMBERS IN MICHIGAN AND OHIO WHICH HAVEN'T BEEN DRENCHED LIKE STATES FURTHER WEST ARE DOING NICELY WE'RE LOOKING FOR A NORMAL HARVEST SEASON HE SAYS THAT'S LITTLE CONSOLATION FOR THOSE LIKE VAREL BAILEY AN ANITA IOWA FARMER WHO EXPECTS HIS YIELDS TO FALL 15 FROM LAST YEAR I'VE NEVER SEEN SO MANY WET SPOTS HE SAYS TODAY US AGRICULTURE SECRETARY MIKE ESPY IS TO TAKE A WHIRLWIND AERIAL TOUR OF SEVERAL HARDHIT MIDWESTERN STATES TO VIEW WHAT HE ALREADY IS CALLING THE DEVASTATION AFTERWARD PRESUMABLY HE WILL RECOMMEND WHAT MEASURES THE GOVERNMENT MIGHT TAKE TO ALLEVIATE IT AND HELP FARMERS SUCH AS MR BAILEY MR ESPY IS TO VISIT PARTS OF IOWA MINNESOTA SOUTH DAKOTA AND WISCONSIN SOIL IN SOME PARTS OF THE MIDWEST IS THE SOGGIEST ON RECORD PETER LEAVITT EXECUTIVE VICE PRESIDENT OF WEATHER SERVICES CORP BEDFORD MASS SAYS IOWA RECEIVED 273 INCHES OF PRECIPITATION SINCE NOVEMBER MAKING IT THE STATE'S WETTEST EIGHTMONTH PERIOD EVER MOST OF THE US CORN CROP WAS PLANTED SEVERAL WEEKS LATE AS A RESULT DANIEL W BASSE RESEARCH DIRECTOR AT AGRESOURCE CO CHICAGO IS FORECASTING A HARVEST PERHAPS 17 BELOW NORMAL TO 79 BILLION BUSHELS COMPARED WITH LAST YEAR'S RECORD HARVEST OF 95 BILLION BUSHELS SOYBEANS NORMALLY HAVE BEEN COMPLETELY PLANTED BY NOW BUT SOME FARMERS ARE STILL STRUGGLING TO PLANT AND REPLANT ABOUT FOUR MILLION ACRES CROP EXPERTS SAY AFTER JULY 1 THE POTENTIAL YIELD OF A SOYBEAN PLANT USUALLY FALLS 30 OR SO AS GROWING TIME RUNS OUT I THINK SOYMEAL BUYERS ARE BUSY HEDGING SAYS JOHN MCMILLIN FOOD ANALYST FOR PRUDENTIAL SECURITIES 9306300178 930630 BUSINESS BRIEF CRYOMEDICAL SCIENCES INC ORDER OF A SURGERY SYSTEM SENDS STOCK PRICE SOARING CRYOMEDICAL SCIENCES INC ROCKVILLE MD SAID IT RECEIVED AN 85 MILLION PURCHASE ORDER OF A MINIMAL SURGERY SYSTEM THAT SENT ITS STOCK SOARING IN OVERTHECOUNTER TRADING THE ORDER FROM US MEDICAL CORP CINCINNATI REPRESENTS MORE THAN THE COMPANY'S EXPECTED 5 MILLION TO 6 MILLION IN SALES FOR THE YEAR ENDING TODAY ON MONDAY PRIOR TO THE ANNOUNCEMENT CRYOMEDICAL SHARES CLIMBED 1375 OR 44 TO 450 THE SHARES GAINED A FURTHER 1125 YESTERDAY TO CLOSE AT 5625 OVER THE COMING FISCAL YEAR US MEDICAL WILL PURCHASE 36 MEDICAL SYSTEMS AND 10000 DISPOSABLE SURGICAL PROBES THAT USE EXTREMELY COLD TEMPERATURES TO DESTROY CANCEROUS TISSUES THE CMS ACCUPROBE SYSTEM ALLOWS FOR MINIMALLY INVASIVE SURGERY BY LITERALLY FREEZING CANCEROUS TISSUE IN THE PROSTATE OR LIVER AREA 9306300177 930630 TREASURY WILL RAISE 500 MILLION IN CASH WITH OFFERING OF BILLS WASHINGTON THE TREASURY PLANS TO RAISE 500 MILLION IN NEW CASH WITH THE SALE TUESDAY OF ABOUT 244 BILLION IN SHORTTERM BILLS TO REDEEM 2389 BILLION IN MATURING BILLS THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK BILLS MATURING OCT 7 1993 AND 26WEEK BILLS MATURING JAN 6 1994 THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794F90 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794H31 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EASTERN TIME ON TUESDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EDT 9306300176 930630 ASARCO WORKERS APPROVE PACT NEW YORK ASARCO INC SAID THAT 893 UNION EMPLOYEES AT THE RAY MINE IN ARIZONA RATIFIED A NEW THREEYEAR AGREEMENT THAT EXPIRES JUNE 30 1996 THE EMPLOYEES ARE REPRESENTED BY VARIOUS UNIONS THE MINING CONCERN SAID THE PACT PROVIDES FOR INCREASES IN HOURLY WAGES TOTALING 130 OVER THE THREEYEAR TERM ALONG WITH IMPROVEMENTS IN PENSION BENEFITS LIFE INSURANCE AND SICKNESS AND ACCIDENT BENEFITS THE COMPANY ALSO SAID THAT A PREFERREDPROVIDER NETWORK WAS ADDED TO ITS HEALTH BENEFIT PLAN 9306300175 930630 VERIFONE AND GEMPLUS VENTURE REDWOOD CITY CALIF VERIFONE INC SAID IT FORMED A JOINT VENTURE WITH GEMPLUS SCA TO DEVELOP AND MARKET CARDS WITH STORED VALUE THAT CAN BE USED IN PLACE OF CASH TERMS WEREN'T DISCLOSED VERIFONE IS A MAKER OF PAYMENT PROCESSING SYSTEMS GEMPLUS BASED IN GEMENOS FRANCE IS A MAKER OF SOCALLED SMART CARDS CREDIT CARDSIZED CARDS CONTAINING MICROPROCESSOR CHIPS THAT ARE USED FOR BANKING HEALTH CARE TELEPHONES AND OTHER SERVICES THE JOINT VENTURE CALLED VERIGEM WILL PURSUE PARTNERSHIPS WITH FINANCIAL INSTITUTIONS LARGE RETAIL CHAINS AND OTHERS INTERESTED IN AUTOMATING CASH TRANSACTIONS 9306300174 930630 MARKETING & MEDIA AMERICAN BRANDS AND BAT TO SWAP CIGARETTE BRANDS BY CHARLES FLEMING STAFF REPORTER OF THE WALL STREET JOURNAL BRITAIN'S BA T INDUSTRIES PLC AND AMERICAN BRANDS INC OF THE US SAID THEY WOULD SWAP SOME CIGARETTE BRANDS IN EUROPE SO EACH COMPANY COULD CONCENTRATE ON MARKETING FEWER BRANDS BA T SAID THAT IT WOULD ACQUIRE AMERICAN BRANDS' LUCKY STRIKE AND PALL MALL BRANDS IN FRANCE AND CERTAIN OTHER SMALL MARKETS SUCH AS PART OF THE BENELUX COUNTRIES THE DEAL ALSO INCLUDES ALGERIA AND CUBA IN EXCHANGE AMERICAN BRANDS WILL TAKE THE BENSON & HEDGES BRAND ACROSS EUROPE AMERICAN BRANDS ALSO WILL MAKE A CASH PAYMENT TO BA T EXPECTED TO TOTAL ABOUT 135 MILLION 2018 MILLION UNTIL NOW BOTH COMPANIES HAVE BEEN CONSTRAINED IN THEIR MARKETING EFFORTS BY THEIR PATCHY COVERAGE OF EUROPE AMERICAN BRANDS ALREADY OWNED B&H IN BRITAIN AND IRELAND BUT NOT IN THE REST OF EUROPE WHILE BA T HAS HAD LUCKY STRIKE AND PALL MALL IN EVERY MAJOR EUROPEAN MARKET EXCEPT FRANCE LUCKY STRIKE AND PALL MALL ARE MARKETED BY FRENCH STATEOWNED CIGARETTE PRODUCER SEITA AND THAT ARRANGEMENT WILL CONTINUE UNDER THE BRANDS' NEW OWNERSHIP UNDER THE ARRANGEMENT BA T WILL RETAIN DUTYFREE SALES FOR B&H IN EUROPE AT LEAST UNTIL 1999 WHEN CURRENT EUROPEAN COMMUNITY RULES ON DUTYFREE CONCESSIONS WILL BE REVIEWED AS PART OF THE DEAL AMERICAN BRANDS WILL PAY 70 MILLION TO BA T PLUS AN ADDITIONAL AMOUNT OVER 10 YEARS RELATING TO FUTURE B&H SALES THE TOTAL IS LIKELY TO BE ABOUT 135 MILLION BA T SAID THIS SWAP MAKES SENSE BECAUSE IT GIVES BOTH SIDES THE OPPORTUNITY FOR A SINGLE PANEUROPEAN MARKETING APPROACH FOR THEIR BRANDS SAID ROLAND BLIGH HEAD OF PUBLIC AFFAIRS FOR GALLAHER LTD AMERICAN BRANDS' EUROPEAN SUBSIDIARY AMERICAN BRANDS HAS BEEN AGGRESSIVELY MARKETING B&H IN BRITAIN THE MANAGING DIRECTOR OF BAT'S TOBACCO BUSINESS ULRICH HERTER SAID HIS GROUP WILL BE ABLE TO BUILD ON LUCKY STRIKE'S RECENT SUCCESS IN EUROPE BY UNIFYING ITS MARKETING STRATEGY ON A SEPARATE MATTER BA T WARNED THAT THE US CIGARETTE PRICE WAR PROMPTED BY PHILIP MORRIS CO'S PRICE CUTS ON ITS MAIN CIGARETTE BRANDS COULD HURT BAT'S US TOBACCO SUBSIDIARY THE PRICE WAR WILL CLEARLY HAVE AN IMPACT ON BROWN & WILLIAMSON'S PROFITS THE STATEMENT SAID THE STATEMENT PROMPTED A DROP IN BA T SHARES WHICH ENDED SEVEN PENCE LOWER AT 4215 PENCE IN LONDON YESTERDAY 9306300173 930630 PACIFIC G&E PLANS REDEMPTIONS SAN FRANCISCO PACIFIC GAS & ELECTRIC CO SAID IT PLANS TO REDEEM SEVEN SERIES OF FIRST MORTGAGE BONDS TOTALING 13 BILLION AND THREE SERIES OF PREFERRED STOCK TOTALING 149 MILLION BONDHOLDERS WILL RECEIVE THE FOLLOWING AMOUNTS PLUS ACCRUED INTEREST FOR EACH 1000 PRINCIPAL AMOUNT SERIES 76A 101020 SERIES 86C 103970 SERIES 86D 1000 SERIES 86E 103390 SERIES 86F 1033 SERIES 86G 1000 SERIES 86I 103530 HOLDERS OF EACH OF PG&E'S 48 MILLION SHARES OUTSTANDING OF 9 SERIES L 25 930 SERIES V 25 AND 1017 SERIES 100 REDEEMABLE FIRST PREFERRED STOCK WILL RECEIVE THE FOLLOWING AMOUNTS PLUS ACCRUED DIVIDENDS 9 SERIES L 27875 930 SERIES V 2775 1017 SERIES 100 10482 THE UTILITY COMPANY SAID REDEMPTION OF THE FIRST MORTAGE BONDS AND PREFERRED STOCK WOULD LOWER ITS ANNUAL FINANCING COSTS BY A TOTAL OF 35 MILLION THE REDEMPTIONS ARE EXPECTED TO BEGIN NEXT MONTH AND CONTINUE THROUGH SEPT 1 9306300172 930630 YIELDS ON CDS IN WEEK SHOWED LITTLE CHANGE NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS WERE LITTLE CHANGED IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS REMAINED AT 273 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS EASED TO 480 FROM 481 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS SLIPPED TO 310 FROM 318 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD SLIPPED TO 460 FROM 465 THE SURVEY SAID ON LARGE DENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 AND MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE CREPT UP TO 284 FROM 283 ON FIVEYEAR JUMBOS THE AVERAGE EASED TO 484 FROM 487 ACCORDING TO BANXQUOTE 9306300171 930630 BLACK & DECKER LAUNCHES LINE TOWSON MD BLACK & DECKER CORP LAUNCHED A LINE OF POWER TOOLS AIMED AT MORE SERIOUS DOITYOURSELF TYPES THE 18TOOL QUANTUM LINE WILL FEATURE PRODUCTS FOR 59 TO 119 A HIGHEREND DEWALT LINE OF POWER TOOLS INTRODUCED LESS THAN TWO YEARS AGO FOR TRADE WORKERS AND PROFESSIONALS IS EXPECTED TO GENERATE 200 MILLION IN DOMESTIC SALES THIS YEAR THE COMPANY SAID 9306300170 930630 NEW YORK POWER AUTHORITY NEW YORK THE NEW YORK POWER AUTHORITY SAID IT WILL CUT ABOUT 400 JOBS DURING THE NEXT THREE WEEKS IN ORDER TO REDUCE OPERATIONAL COSTS THE POWER AUTHORITY WHICH OWNS AND OPERATES NUCLEAR AND HYDROELECTRIC POWER PLANTS IN THE STATE SAID THE CUTS WOULD INCLUDE SOME 200 LAYOFFS FROM ITS PERMANENT STAFF OF ABOUT 3500 FULLTIME EMPLOYEES THE REMAINING JOB CUTS WOULD COME FROM CONSULTANTS CONTRACTORS AND THROUGH ATTRITION PRETTY MUCH ACROSS THE BOARD A SPOKESMAN SAID IN 1992 THE POWER AUTHORITY HAD ABOUT 13 BILLION IN OPERATING REVENUE PRIMARILY FROM ELECTRICITY SALES 9306300169 930630 COMPUTER SCIENCES GETS CONTRACT EL SEGUNDO CALIF COMPUTER SCIENCES CORP SAID IT RECEIVED A SIXYEAR CONTRACT FROM THE DEFENSE DEPARTMENT VALUED AT AS MUCH AS 768 MILLION IF ALL OPTIONS ARE EXERCISED THE PACT COMBINES EIGHT SEPARATE CONTRACTS FROM VARIOUS CONTRACTORS INCLUDING TWO AWARDED TO COMPUTER SCIENCES IN 1989 AND 1990 COMPUTER SCIENCES SAID REVENUE FROM THE CONTRACT WOULD BE SPREAD PRETTY EVENLY ACROSS THE SIXYEAR TERM THE COMPUTERSERVICES CONCERN SAID THE CONTRACT WORK INVOLVES IMPLEMENTATION OF A MAJOR GLOBAL TELECOMMUNICATIONS SYSTEM ABOUT 225 SCIENTISTS ENGINEERS AND OTHER EMPLOYEES WILL BE ASSIGNED FULL TIME TO THE PROJECT THE COMPANY SAID 9306300168 930630 FREEPORTMCMORAN RESOURCE NEW ORLEANS FREEPORTMCMORAN RESOURCE PARTNERS LTD SAID IT AGREED TO SELL ITS STAKE IN CROP PRODUCTION SERVICES INC FOR 14 MILLION FREEPORT IS SELLING ITS 33 1/3 EQUITY INTEREST IN CROP PRODUCTION A RETAILER OF FERTILIZERS AND AGRICULTURAL CHEMICALS AND PRODUCTS TO THE US UNIT OF COMINCO FERTILIZERS INC OF CANADA THE SALE EXPECTED TO CLOSE BY JULY 31 IS SUBJECT TO CERTAIN CONDITIONS AND REGULATORY APPROVALS FREEPORT EXPECTS TO USE THE PROCEEDS FROM THE TRANSACTION FOR QUARTERLY CASH DISTRIBUTIONS TO ITS UNITHOLDERS 9306300167 930630 WHO'S NEWS ETHYL CORP ETHYL CORP RICHMOND VA DICK BETLEM 54 YEARS OLD WAS NAMED DIVISIONAL VICE PRESIDENT INTERNATIONAL FOR THE CHEMICALS GROUP OF THIS CHEMICALS COMPANY MR BETLEM WHO WILL BE BASED IN BRUSSELS HAD BEEN VICE PRESIDENT OF IMAGE SYSTEMS AT DUPONT CO AND CHIEF EXECUTIVE OFFICER OF PHILIPS & DUPONT OPTICAL CO A JOINT VENTURE WITH PHILIPS ELECTRONICS NV 9306300166 930630 WHO'S NEWS MERCK & CO MERCK & CO WHITEHOUSE STATION NJ PAUL D COTTONE WAS NAMED VICE PRESIDENT OF US OPERATIONS AND JAMES H WAKELIN III WAS NAMED VICE PRESIDENT OF MARKETING AT MERCK AGVET THE ANIMALHEALTH AND CROPPROTECTION DIVISION OF THIS PHARMACEUTICAL CONCERN MR COTTONE 45 YEARS OLD HAD BEEN EXECUTIVE DIRECTOR OF INTERNATIONAL OPERATIONS FOR MERCK AGVET'S CANJA REGION WHICH COMPRISES CANADA AUSTRALIA NEW ZEALAND AND JAPAN HE SUCCEEDS E DONALD GRIFFIN 54 WHO RETIRED JUNE 1 MR WAKELIN 50 HAD BEEN VICE PRESIDENT OF BUSINESS AFFAIRS FOR MERCK AGVET HE SUCCEEDS ANTHONY VISCUSI 60 WHO RETIRED JUNE 1 9306300165 930630 CONFEREES SET MODEST FUNDING INCREASE FOR SUMMER JOBS SMALLBUSINESS LOANS BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A HOUSESENATE CONFERENCE AGREED TO MODEST FUNDING INCREASES FOR SUMMERJOB AND SMALLBUSINESSLOAN PROGRAMS AS PART OF A SUPPLEMENTAL SPENDING BILL CONTAINING REMNANTS OF PRESIDENT CLINTON'S ONCE AMBITIOUS ECONOMIC STIMULUS PLAN TALKS WILL CONTINUE TODAY BUT UNDER A DEMOCRATICBACKED PROPOSAL OUTLINED LAST NIGHT AN ESTIMATED 220 MILLION WOULD BE ADDED TO THIS YEAR'S BUDGET FOR YOUTH EMPLOYMENT PROGRAMS INCLUDING 170 MILLION FOR SUMMER JOBS FOR TEENAGERS AND ANOTHER 50 MILLION FOR AN EXPANDED TRAINING PROGRAM FOR PEOPLE UP TO 30 YEARS OLD WITHIN THE SMALL BUSINESS ADMINISTRATION 175 MILLION WOULD BE PROVIDED TO REPLENISH THE GOVERNMENT'S CREDIT PROGRAM AND THE ADDED SUBSIDIES ARE ESTIMATED TO BE SUFFICIENT TO SUPPORT AS MUCH AS 32 BILLION IN LOAN GUARANTEES HOUSE NEGOTIATORS ABANDONED ANY HOPE OF SALVAGING 290 MILLION FOR WASTEWATER PROJECTS SOUGHT BY THE PRESIDENT THE SCRAMBLE FOR FUNDS WAS WELL ILLUSTRATED BY A SKIRMISH IN WHICH LAWMAKERS FOUND 5 MILLION FOR AMERICAN INDIAN EDUCATION PROGRAMS BY RAIDING FUNDS FOR A SCHOLARSHIP FOUNDATION IN HONOR OF THEIR FORMER COLLEAGUE ARIZONA DEMOCRAT MORRIS UDALL THE 220 MILLION FOR YOUTH EMPLOYMENT IS 100 MILLION LESS THAN THE ADMINISTRATION'S SCALEDBACK REQUEST AND LESS THAN A QUARTER OF THE PRESIDENT'S PROPOSAL EARLIER THIS YEAR WITH SUMMER ALREADY UNDER WAY THE BELATED 220 MILLION HAS BEEN DUBBED THE INDIAN SUMMER JOBS PACKAGE BY SOME BUT THE LEGISLATION HAS TAKEN ON A GREATER POLITICAL IMPORTANCE FOR BLACK LEGISLATORS WHOSE SUPPORT IS NEEDED FOR MR CLINTON'S ECONOMIC PROGRAM REP MAXINE WATERS D CALIF HAD PRESSED HARD FOR THE EXPANDED TRAINING PROGRAM AND MINDFUL OF THE COMING SHOWDOWN OVER THE ADMINISTRATION TAX BILL THE HOUSE LEADERSHIP HELPED HER OVERCOME RESISTANCE IN THE APPROPRIATIONS COMMITTEES CAUGHT IN THE MIDDLE WAS HOUSE APPROPRIATIONS COMMITTEE CHAIRMAN WILLIAM NATCHER A KENTUCKY DEMOCRAT WHO IS A PURIST ON PROCEDURE AND HAD TO GO AGAINST HIS CUSTOMARY PRACTICE AND SUPPORT WHAT AMOUNTED TO NONBUDGETARY LEGISLATION ON AN APPROPRIATIONS BILL ADDING TO HIS DIFFICULTIES WAS THE FACT THAT DEMOCRATS WERE TRYING TO FEND OFF A NETTLESOME AMENDMENT PRESSURING STATES TO IMPLEMENT SOCALLED WORKFARE PROGRAMS FOR POOR PEOPLE HAVING AGREED TO REP WATERS'S LANGUAGE MADE IT HARDER TO ARGUE ON PROCEDURAL GROUNDS AGAINST THE SENATE PROVISION THE TALKS CAME AS THE FULL HOUSE VOTED 313110 FOR AN 879 BILLION FISCAL 1994 BILL THAT IS A CASE STUDY OF HOW BUDGET PRESSURES ARE FORCING REDUCTIONS FROM THE ADMINISTRATION'S LONGERTERM INVESTMENT AGENDA BEYOND THIS YEAR FUNDING FOR THE REDESIGNED SPACE STATION SURVIVED INTACT BUT THE MEASURE COULD SOUND THE DEATH KNELL FOR SUCH POLITICAL LANDMARKS AS THE SELECTIVE SERVICE AND THE MULTIBILLIONDOLLAR ADVANCED SOLID ROCKET MOTOR PROGRAM FOR THE SPACE SHUTTLE ON A LOPSIDED 37343 ROLL CALL YESTERDAY THE HOUSE SIGNALED ITS DETERMINATION TO END THE ROCKET PROGRAM WHICH HAS COST THE GOVERNMENT NEARLY 2 BILLION WHILE ENJOYING THE POLITICAL PROTECTION OF A REMARKABLE ALLIANCE OF SOUTHERN DEMOCRATS AND REPUBLICANS AMID LAST YEAR'S PRESIDENTIAL CAMPAIGN THE BUSH ADMINISTRATION CAME TO THE PROJECT'S ASSISTANCE FOR FEAR OF OFFENDING MISSISSIPPI CONSERVATIVES AND THOUGH MOST OFTEN TIED TO FORMER APPROPRIATIONS COMMITTEE CHAIRMAN JAMIE WHITTEN D MISS THE PROGRAM HAS EMPLOYED HUNDREDS OF WORKERS IN TENNESSEE THE HOME STATE OF VICE PRESIDENT AL GORE APART FROM THE SPACE PROGRAM THE UNDERLYING BILL INCLUDES AN ARRAY OF FEDERAL HOUSING ENVIRONMENTAL VETERANS AND SCIENCE PROGRAMS WITH THE MIX OF INTERESTS ADDING TO THE COMPETITION FOR FUNDS DISCRETIONARY SPENDING WOULD GROW BY 225 BILLION FROM THE CURRENT BUDGET YEAR ENDING SEPT 30 BUT THIS IS LESS THAN TWOTHIRDS OF THE PRESIDENT'S REQUEST AND INCLUDES NO MONEY FOR HIS NATIONAL SERVICE INITIATIVE TO HELP STUDENTS PAY FOR COLLEGE FOR EXAMPLE THE ADMINISTRATION HAD HOPED TO FINANCE ITS NEW INVESTMENTS BY SHIFTING MONEY FROM THE MILITARY BUT THIS TRANSITION ISN'T WITHOUT STRAINS OF ITS OWN THE PENTAGON IS SEEKING AN ADDITIONAL 700 MILLION TO MEET COMMITMENTS ON BASE CLOSINGS THAT PROMISE LONGTERM SAVINGS AND WASHINGTON MAY OWE AS MUCH AS 1 BILLION NEXT YEAR TO MEET US COMMITMENTS TO UNITED NATION'S PEACEKEEPING FORCES AROUND THE WORLD FOR COMMITTEES HARDENED TO THE COSTS OF THE COLD WAR AND THEIR OWN TURF BOUNDARIES IN THE BUDGET BATTLES THE RESULT IS DISORIENTING TO MEMBERS WHO ENGAGED IN SPIRITED EXCHANGES IN THE HOUSESENATE TALKS LAST NIGHT PENTAGON BACKERS ALREADY FACING CUTS ALL BUT THREATENED TO TAKE AWAY COAST GUARD FUNDS IF THEY COULDN'T GET SOME BREAK ON ABSORBING THE COSTS OF THE US MISSION TO SOMALIA AND THE UNPAID PEACEKEEPING BILLS TO THE UN COULD HAVE A SPILLOVER EFFECT ON THE STATE DEPARTMENT'S BUDGET SOMETHING HAS TO BE DONE TO STOP THIS PEACEKEEPING ESCALATION COMPLAINED REP NEAL SMITH D IOWA 9306300164 930630 KEYCORP'S OFFER FOR EVERGREEN TERMS OF THE OFFER WHICH WAS MADE EARLIER THIS MONTH WEREN'T DISCLOSED EVERGREEN BANCORP GLENS FALLS NY IS A BANK HOLDING COMPANY WITH 900 MILLION IN ASSETS KEYCORP WITH OVER 30 BILLION IN ASSETS IS A MULTIREGIONAL BANK HOLDING COMPANY WITH OPERATIONS IN THE NORTHEAST AND NORTHWEST 9306300163 930630 WHO'S NEWS PRIMERICA CORP PRIMERICA CORP NEW YORK ROBERT B WILLUMSTAD 47 YEARS OLD WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OF COMMERCIAL CREDIT CO A UNIT OF THIS FINANCIAL SERVICES CONCERN MR WILLUMSTAD WHO HAD BEEN PRESIDENT OF THE CONSUMER FINANCE UNIT SUCCEEDS ROBERT I LIPP 55 WHO WAS RECENTLY NAMED GROUP CHIEF EXECUTIVE OF THE PARENT MARGE MAGNER 44 WAS NAMED PRESIDENT AND CHIEF ADMINISTRATIVE OFFICER OF THE UNIT SUCCEEDING MR WILLUMSTAD MS MAGNER HAD BEEN AN EXECUTIVE VICE PRESIDENT OF THE UNIT 9306300162 930630 WHO'S NEWS CARGILL INC CARGILL INC MINNEAPOLIS GERALD M MITCHELL EXECUTIVE VICE PRESIDENT WAS NAMED VICE CHAIRMAN OF THIS CLOSELY HELD COMMODITY PROCESSING CONCERN MR MITCHELL 63 SUCCEEDS WILLIAM R PEARCE WHO RETIRED JUNE 10 ERNEST S MICEK FOOD SECTOR PRESIDENT WAS NAMED TO THE ADDED POST OF EXECUTIVE VICE PRESIDENT MR MICEK 57 WAS ELECTED A CARGILL DIRECTOR EARLIER IN JUNE ROBERT L LUMPKINS 49YEAROLD CHIEF FINANCIAL OFFICER AND TREASURER WAS NAMED TO THE ADDED POST OF CORPORATE SENIOR VICE PRESIDENT DAVID W RAISBECK 43YEAROLD FINANCIAL MARKETS DIVISION PRESIDENT WAS NAMED PRESIDENT OF CARGILL'S TRADING SECTOR 9306300161 930630 AT&T INTRODUCES FAX SERVICE NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO INTRODUCED AN INTERNATIONAL FAX SERVICE THAT IT SAID ELIMINATES COMMON FAXING PROBLEMS SUCH AS MISSING LINES AND INCOMPLETE MESSAGE TRANSMISSIONS THE AT&T INTERNATIONAL ADVANCED FAX SERVICE USES SPECIALLY DESIGNATED DIGITAL CIRCUITS FOR TRANSMISSION AND WILL BE JOINTLY OFFERED WITH TELECOMMUNICATIONS COMPANIES IN THE COUNTRIES WHERE IT IS AVAILABLE AT&T SAID THE SERVICE CURRENTLY IS OFFERED BETWEEN THE US AND THE PHILIPPINES AND WILL BE EXTENDED TO OTHER COUNTRIES LATER THIS YEAR 9306300160 930630 ECONOMY BUSINESS SCALES BACK SPENDING PLANS AMID QUESTIONS ON CLINTON'S PROGRAM BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL BUSINESSES ARE CONTINUING TO SCALE BACK CAPITALSPENDING PLANS AMID UNCERTAINTY AND DISSATISFACTION OVER PRESIDENT CLINTON'S ECONOMIC PROGRAM TWO NEW SURVEYS TAKEN IN RECENT WEEKS SHOW IN ONE SURVEY BY MANAGEMENT CONSULTANT AT KEARNEY INC 100 MIDSIZE AND LARGE COMPANIES PLAN ON AVERAGE TO INCREASE CAPITAL SPENDING AT A SLOWER PACE IN THE COMING QUARTER THAN CURRENTLY THE VAST MAJORITY 85 OF THE CHIEF FINANCIAL OFFICERS SURVEYED SAID THEY WERE DISSATISFIED WITH THE PRESIDENT'S ECONOMIC LEADERSHIP THE KEARNEY SURVEY AND ANOTHER BY CAHNERS ECONOMICS THE CONSULTING ARM OF CAHNERS PUBLISHING CO ARE FRESH SIGNS OF A PULLBACK IN CAPITAL SPENDING THAT WAS FIRST DETECTED IN A COMMERCE DEPARTMENT SURVEY TAKEN IN LATE APRIL AND EARLY MAY THERE'S A DIRECT RELATIONSHIP BETWEEN THE DISAPPOINTMENT AND SPENDING PLANS SAID PATRICK BYRNE HEAD OF NORTH AMERICAN CONSULTING FOR KEARNEY OTHER THAN PRODUCTIVITY ENHANCEMENTS THEY KNOW WILL HAVE AN IMPACT FIRMS WE DEAL WITH ARE IN A STATE OF PARALYSIS OVER SPENDING TO INCREASE REVENUES HE ADDED THE CAHNERS SURVEY FOUND MORE THAN HALF OF 400 MANUFACTURING COMPANIES CITING UNCERTAINTY OVER TAX AND REGULATORY IMPLICATIONS OF THE CLINTON ECONOMIC PLAN AS THE MAIN CAUSE OF THE NATION'S ECONOMIC MALAISE THE WAITANDSEE ATTITUDE IS STIFLING BUSINESS ACTIVITY SAID DARYL DELANO THE FIRM'S SENIOR ECONOMIST HE NOTED THAT IN JANUARY THE SURVEY SHOWED 373 OF THE COMPANIES PLANNING TO INCREASE CAPITAL SPENDING THIS YEAR BUT IN THE MOST RECENT SURVEY THIS MONTH ONLY 313 SAID THAT WOULD BE THE CASE WHEN YOU'RE IN AN AREA WHERE IT'S UNCERTAIN WHETHER AN INVESTMENT DECISION WILL PAY OFF YOU LOOK TWICE BEFORE MAKING ANY DECISIONS SAID THE CHIEF FINANCIAL OFFICER OF A MAJOR CONSUMER PRODUCTS COMPANY WHO REQUESTED ANONYMITY HE ADDED THAT WE'RE A JOB CREATOR IN THE UNITED STATES BUT WE'D BE TEMPTED TO INVEST MORE OVERSEAS IF THE TAX BILL AS PROPOSED IS ENACTED THAT IS BECAUSE UNDER THE PROPOSAL THE EARNINGS OF A FOREIGN SUBSIDIARY COULD BECOME SUBJECT TO US TAXES IF THE COMPANY DOESN'T MAINTAIN A SUFFICIENT PROPORTION OF ITS INVESTMENTS IN ITS ACTIVE BUSINESS OPERATIONS SUCH AS A FACTORY OVERSEAS NEAL SOSS CHIEF ECONOMIST OF FIRST BOSTON CORP SAYS UNCERTAINTY OVER HEALTHCARE REVISION IS HAVING A BROAD IMPACT ON BOTH CAPITAL SPENDING AND THE ECONOMY HE NOTES THAT HEALTH CARE ACCOUNTS FOR ONESEVENTH OF THE ECONOMY EVEN AFTER THE OVERHAUL PACKAGE BECOMES CLEAR NEW CONCERNS ABOUT FUTURE REVENUE PROSPECTS FOR INSTANCE COULD RESULT IN MORE HOSPITAL MERGERS WHICH MEANS THEY DON'T NEED AS MUCH NEW EQUIPMENT OR AS MANY PERSONNEL AND IF A PAYROLL TAX IS LEVIED ON ALL COMPANIES TO HELP PAY FOR THEIR WORKERS' HEALTH COVERAGE THEY MAY DECIDE TO PUT THEIR NEXT FACTORY IN A FOREIGN COUNTRY WHERE THEY DON'T HAVE A PAYROLL TAX HE ADDS BUSINESS EXECUTIVES IN THE KEARNEY SURVEY STRONGLY OPPOSE THE PRESIDENT'S ECONOMIC PACKAGE SAYS BILL DESAUTELLE OF KAMAN CORP BECAUSE THERE AREN'T ENOUGH INCENTIVES TO INVEST AND SAVE WE'RE NOT GOING TO TAX OUR WAY TO PROSPERITY SAYS THE CHIEF INVESTMENT OFFICER OF THE BLOOMFIELD CONN COMPANY WHICH HAS INTERESTS IN DEFENSE TECHNOLOGY AND INDUSTRIALPARTS DISTRIBUTION AND WHICH LOGS 800 MILLION IN ANNUAL SALES THOMAS FETZNER CONTROLLER OF ONEIDA LTD BASED IN ONEIDA NY BELIEVES PRESIDENT CLINTON'S ECONOMIC PLAN COULD HELP CAPITAL SPENDING ULTIMATELY HOWEVER BECAUSE OF ITS EMPHASIS ON REDUCING THE BUDGET DEFICIT A LOWER DEFICIT HE NOTED WILL HELP KEEP INTEREST RATES LOW WHICH MIGHT LEAD MORE PEOPLE TO OPEN RESTAURANTS A PRINCIPAL BUYER OF THE COMPANY'S TABLEWARE PRODUCTS DESPITE THE CAUTION OVER CAPITAL SPENDING COMPANIES IN THE KEARNEY SURVEY SEE SALES PROFITS AND CASH FLOW EXPANDING IN THE THIRD QUARTER AT A FASTER YEARTOYEAR PACE THAN THEY DID IN THE SECOND QUARTER AVERAGE PROFITS FOR INSTANCE ARE SEEN GROWING 122 FROM THE THIRD QUARTER OF 1992 AHEAD OF THE SECOND QUARTER'S 81 GAIN FROM A YEAR AGO EVEN SO INVENTORY BUILDUP IS EXPECTED TO SHOW ONLY A MARGINAL INCREASE IN THE THIRD QUARTER AND EMPLOYMENT IS SEEN GROWING ONLY 04 FROM A YEAR EARLIER ABOUT THE SAME AS IN THE SECOND QUARTER 9306300159 930630 MOBIL TESTS WELL IN NORTH SEA FAIRFAX VA MOBIL CORP SAID AN APPRAISAL WELL IT DRILLED IN THE UK NORTH SEA TESTED SIGNIFICANT VOLUMES OF NATURAL GAS AND CONDENSATE FROM THE SAME GEOLOGICAL ZONE AS THE PROLIFIC BERYL FIELD MOBIL SAID A TEST OF THE APPRAISAL WELL DRILLED ON BLOCK 9/19 FLOWED AT A RATE OF 28 MILLION CUBIC FEET OF NATURAL GAS A DAY WITH 1636 BARRELS OF CONDENSATE THROUGH A 40/64INCH CHOKE THE WELL WAS DRILLED TO A DEPTH OF 13060 FEET MOBIL NORTH SEA LTD REPSOL EXPLORATION UK LTD AND DUPONT CO'S CONOCO UK UNIT EACH HAVE A 333 STAKE IN THE WELL 9306300158 930630 WHO'S NEWS SEARS ROEBUCK & CO SEARS ROEBUCK & CO CHICAGO GERALD E BULDAK 48 YEARS OLD DIRECTOR OF EXTERNAL COMMUNICATIONS SINCE 1990 WAS APPOINTED VICE PRESIDENT OF PUBLIC AFFAIRS OF THIS GENERAL MERCHANDISING INSURANCE REAL ESTATE AND BROKERAGE SERVICES CONCERN HE SUCCEEDS CHARLES J RUDER 55 WHO EARLIER ANNOUNCED PLANS TO RETIRE LATER THIS YEAR 9306300157 930630 BUSINESS BRIEF GENERAL MILLS STEPS UP ORIENTAL DINING PLANS INCREASES ITS DIVIDEND MINNEAPOLIS GENERAL MILLS INC ENTHUSIASTIC ABOUT RESULTS FROM ITS ORIENTAL CASUALDINING EXPERIMENT IS TURNING WHAT WAS TO BE A SLOW ROLLOUT INTO A RAPID EXPANSION THE COMPANY ALSO REPORTED IMPROVED SALES AND EARNINGS BEFORE CHARGES FOR THE FISCAL FOURTH QUARTER AND ANNOUNCED A FIVECENT QUARTERLY DIVIDEND BOOST ON THE BASIS OF FIVE CHINA COAST RESTAURANTS IN FLORIDA AND INDIANA GENERAL MILLS'S BOARD APPROVED ADDING 30 MORE UNITS IN FISCAL 1994 WHICH ENDS NEXT MAY INITIALLY THE COMPANY HAD PLANNED TO OPEN THREE MORE UNITS IN THE DALLASFORT WORTH MARKET THIS SUMMER BUT THE POSITIVE PERFORMANCE OF TWO RECENT INDIANAPOLIS STORES AS WELL AS THOSE IN THE ORLANDO MARKET LED TO THE ACCELERATED EXPANSION FOUR UNITS ALREADY ARE BEING BUILT IN THE CLEVELAND COLUMBUS DAYTON AND YOUNGSTOWN MARKETS IN OHIO AND WILL OPEN BY YEAR END THE COMPANY SAID NEARTERM EXPANSION WILL OCCUR IN THE SOUTHEAST SOUTHWEST AND MIDWEST IT ADDED GENERAL MILLS ALREADY IS THE NATION'S LARGEST OPERATOR OF CASUALDINING RESTAURANTS WITH ITS RED LOBSTER SEAFOOD AND OLIVE GARDEN ITALIAN CHAINS CHINA COAST GIVES IT A LONGSOUGHT THIRD MENU CONCEPT AND NEW REVENUE PRODUCER PREVIOUSLY THE COMPANY HAD TRIED MEXICAN HEALTHFOOD STEAK HOUSE AND PIESHOP FORMATS THE COMPANY REPORTED FOURTHQUARTER EARNINGS OF 675 MILLION OR 42 CENTS A SHARE COMPARED WITH 931 MILLION OR 56 CENTS A SHARE A YEAR EARLIER THIS YEAR'S FIGURES INCLUDE AN AFTERTAX CHARGE OF 47 MILLION EQUAL TO 29 CENTS A SHARE FOR PREVIOUSLY ANNOUNCED RESTAURANT CLOSINGS AND OTHER RESTRUCTURING MOVES SALES IN THE QUARTER ENDED MAY 30 WERE VIRTUALLY UNCHANGED AT 2 BILLION WITH 64 COMING FROM CONSUMER FOODS AND 36 FROM RESTAURANTS FOR THE FULL YEAR GENERAL MILLS EARNED 5061 MILLION OR 310 A SHARE COMPARED WITH 4956 MILLION OR 299 A SHARE SALES TOTALED 81 BILLION UP 46 FROM 77 BILLION PREVIOUSLY AND UP 9 EXCLUDING REVENUES FROM BUSINESSES SOLD OR DECONSOLIDATED DIRECTORS INCREASED THE QUARTERLY DIVIDEND TO 47 CENTS FROM 42 CENTS PAYABLE AUG 2 TO STOCK OF RECORD JULY 9 IN LATE NEW YORK STOCK EXCHANGE TRADING GENERAL MILLS WAS QUOTED AT 6625 UP 875 CENTS 9306300156 930630 NUWEST CAN'T PAY NOTE ASKS FOR WAIVER OF DEFAULT PROVISIONS A WALL STREET JOURNAL NEWS ROUNDUP NUWEST INDUSTRIES INC SAID THAT IT WOULD NOT BE ABLE TO MAKE A 21 MILLION DEBT PAYMENT DUE TOMORROW AND THAT IT HAD ASKED LENDERS TO WAIVE CERTAIN DEFAULT PROVISIONS IN ITS LENDING AGREEMENTS THE ENGLEWOOD COLO FERTILIZER MANUFACTURER WHICH HAS BEEN TRYING TO REFINANCE ABOUT 557 MILLION IN LONGTERM DEBT ALSO SAID THAT IT HAD ACCEPTED A NONBINDING PROPOSAL FROM NETWORK COMPANY II LTD A NEW YORK INVESTMENT MANAGEMENT CONCERN TO BUY AN UNSPECIFIED AMOUNT OF NEWLY ISSUED NUWEST SUBORDINATED DEBT DISCUSSIONS ON TERMS ARE CONTINUING BUT THE COMPANY SAID IT WOULD USE THE PROCEEDS FOR CAPITAL PROJECTS AND WORKING CAPITAL THE COMPANY ALSO SAID THAT ITS PRINCIPAL SHAREHOLDER AND SOME AFFILIATES HAVE AGREED TO EXCHANGE CERTAIN EXISTING DEBTS THAT THEY HOLD FOR AN EQUAL PRINCIPAL AMOUNT OF THE NEWLY ISSUED DEBT THE COMPANY SAID THE NEWLY ISSUED DEBT WOULD CONTAIN CERTAIN FEATURES THAT WOULD RESULT IN SUBSTANTIAL DILUTION OF THE STAKES HELD BY CURRENT SHAREHOLDERS WHO WOULD HAVE TO APPROVE ANY AGREEMENT WITH NETWORK THE COMPANY HAS ABOUT 15 MILLION SHARES OUTSTANDING BATTERED BY DECLINING FERTILIZER PRICES NUWEST HAS SAID IT MIGHT HAVE TO SEEK BANKRUPTCYLAW PROTECTION IF IT CANNOT RESTRUCTURE ITS FINANCES FOR THE NINE MONTHS ENDED MARCH 31 NUWEST REPORTED A NET LOSS OF 45 MILLION OR 46 CENTS A SHARE COMPARED WITH A NET LOSS OF 39 MILLION OR 42 CENTS A SHARE IN THE YEARAGO PERIOD SALES FELL 10 TO 64 MILLION FROM 711 MILLION 9306300155 930630 WHO'S NEWS ENCYCLOPEDIA BRITANNICA INC ENCYCLOPAEDIA BRITANNICA INC CHICAGO PETER NORTON 64 YEARS OLD AND CURRENTLY PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED TO THE ADDITIONAL POSTS OF CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE REFERENCE BOOK AND INFORMATION SERVICES CONCERN EFFECTIVE SEPT 1 IN HIS NEW POSITIONS HE SUCCEEDS 85YEAROLD ROBERT P GWINN WHO IS RETIRING AND WILL BECOME CHAIRMAN EMERITUS ENCYCLOPAEDIA BRITANNICA INC'S PRESIDENT AND CHIEF OPERATING OFFICER PETER NORTON WILL ASSUME ON SEPT 1 THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER BUT NOT THE CHAIRMAN'S ROLE NO SUCCESSOR TO THAT POST WHICH WILL BE VACATED BY THE RETIREMENT OF ROBERT P GWINN HAS BEEN NAMED AN ITEM IN YESTERDAY'S WHO'S NEWS COLUMN SAID THAT MR NORTON WOULD ASSUME BOTH DUTIES 9306300154 930630 NEW JERSEY TAX RISE COULD HIT COMMUTERS TRENTON NJ NEW JERSEY GOV JIM FLORIO IS EXPECTED TO SIGN LEGISLATION THAT WOULD RAISE BY ABOUT 27 MILLION THE INCOME TAXES PAID BY NEW YORKERS WORKING IN NEW JERSEY AN ESTIMATED 100000 SUCH WORKERS CURRENTLY PAY TAXES ONLY ON INCOME EARNED IN NEW JERSEY UNDER THE BILL NEW JERSEY WOULD DETERMINE A COMMUTER'S TAX BRACKET BY THE FULL FAMILY INCOME REGARDLESS OF WHERE IT WAS EARNED THE HIGHER RATE WOULD BE APPLIED TO THE PORTION OF INCOME EARNED IN NEW JERSEY THE MEASURE APPROVED UNANIMOUSLY BY THE STATE SENATE ON MONDAY USES THE METHOD ADOPTED BY NEW YORK FOR NEW JERSEY COMMUTERS FIVE YEARS AGO GOV FLORIO HAS 45 DAYS TO SIGN THE BILL THE US SUPREME COURT LAST WEEK DECLINED TO HEAR AN APPEAL CONTESTING NEW YORK'S TAX RULE 9306300153 930630 INTERNATIONAL PROCORDIA FINNISH GROUP PACT STOCKHOLM FINNISH CONSUMER PRODUCTS GROUP HUHTAMAEKI OY SAID IT WILL BUY THE EUROPEAN CONFECTIONERY OPERATIONS OF SWEDISH FOOD AND DRUG GROUP PROCORDIA AB FOR 900 MILLION KRONOR 1155 MILLION AS PART OF AN EXTENSIVE AGREEMENT BETWEEN THE TWO GROUPS PROCORDIA'S CONFECTIONERY OPERATIONS IN THE US AREN'T AFFECTED BY THE SALE SAID THE SWEDISH GROUP PROCORDIA WILL ALSO BUY THREE MILLION NEW HUHTAMAEKI SHARES FOR 900 MILLION KRONOR EQUIVALENT TO A 109 STAKE IN THE FINNISH GROUP IT SAID AS PART OF THE PLAN PROCORDIA'S PHARMACEUTICAL UNIT KABI PHARMACIA AB AND HUHTAMAEKI'S LEIRAS DIVISION WILL ESTABLISH A JOINT VENTURE FOR MARKETING GYNECOLOGICAL PRODUCTS IN EUROPE 9306300152 930630 ROCHESTER TELEPHONE REFUNDS ROCHESTER NY ROCHESTER TELEPHONE CORP SAID IT WILL REFUND 15 MILLION TO ITS CUSTOMERS UNDER TERMS OF ITS 1990 INCENTIVE RATE AGREEMENT WITH THE NEW YORK STATE PUBLIC SERVICE COMMISSION UNDER TERMS THE COMPANY AGREED TO SHARE WITH CUSTOMERS A PORTION OF ITS 1991 AND 1992 EARNINGS OVER A SPECIFIED RATE OF RETURN THE AVERAGE REFUND WILL BE 260 FOR RESIDENTIAL ACCOUNTS AND 1380 FOR BUSINESS ACCOUNTS THE REFUNDS WILL BE MADE IN THE FORM OF CREDIT ON JULY AND AUGUST TELEPHONE BILLS 9306300151 930630 CSX UNIT FILES TO REFLAG SHIPS IN BID TO PROD US BY DANIEL MACHALABA STAFF REPORTER OF THE WALL STREET JOURNAL SEALAND SERVICE INC OWNER OF THE LARGEST CONTAINER SHIP FLEET FLYING THE US FLAG THREATENED TO HAUL DOWN THAT FLAG ON 13 OF ITS SHIPS AND REREGISTER THEM IN THE MARSHALL ISLANDS THE MOVE MAY SIGNAL THE BEGINNING OF AN EXODUS OF US SHIPS TO FOREIGN FLAGS AMERICAN PRESIDENT COS AN OAKLAND CALIF SHIP OPERATOR SAID IT IS PREPARING APPLICATIONS TO OPERATE SIX NEW CONTAINER SHIPS TO BE DELIVERED IN 1995 UNDER A FOREIGNFLAG REGISTRY AMERICAN PRESIDENT ALSO PLANS TO ASK THE US MARITIME ADMINISTRATION FOR PERMISSION TO REFLAG SEVEN OF THE 15 CONTAINER SHIPS IN ITS PACIFIC FLEET THE REFLAGGING PROPOSALS ARE DESIGNED TO PROD THE CLINTON ADMINISTRATION INTO SUPPORTING A PACKAGE OF MARITIME SUBSIDIES AND REGULATORY REFORMS US FLAG SHIP COMPANIES AND MARITIME UNIONS HAVE LOBBIED FOR THE MARITIME REFORM PACKAGE WHICH IS STALLED FOR LACK OF FUNDING AS VITAL TO THE SURVIVAL OF THE NATION'S REMAINING MERCHANT FLEET BY SOME ESTIMATES A TOTAL OF ABOUT 80 CONTAINER SHIPS FLYING THE US FLAG AND ENGAGED IN INTERNATIONAL TRADE ULTIMATELY COULD BE AT RISK OF REFLAGGING SEALAND'S PARENT COMPANY CSX CORP OF RICHMOND VA SAID IT FILED APPLICATIONS YESTERDAY WITH THE MARITIME AGENCY TO REREGISTER 13 OF ITS 41 US FLAG SHIPS WE HOPE THE REFLAGGING APPLICATION PUTS PRESSURE ON THE ADMINISTRATION TO SUPPORT A MARITIME REFORM PROGRAM SAID MARK ARON CSX SENIOR VICE PRESIDENT LAW AND PUBLIC AFFAIRS BUT IF THE ADMINISTRATION DOESN'T CHANGE ITS MIND SEALAND IS FULLY READY TO REFLAG THESE SHIPS AND CONSIDER REFLAGGING THE REST OF ITS SHIPS INVOLVED IN INTERNATIONAL COMMERCE MR ARON SAID SEALAND WOULD SAVE ABOUT 3 MILLION A SHIP EACH YEAR BY OPERATING UNDER A FOREIGN FLAG HOWEVER A SEALAND SPOKESMAN SAID THE SAVINGS IN THE FIRST YEAR WOULD BE REDUCED BY 1 MILLION BECAUSE OF THE COST OF LABOR BUYOUTS ON EACH SHIP SOME 500 TO 600 JOBS WOULD BE LOST AS A RESULT OF THE REFLAGGING PLAN SOME ANALYSTS WELCOMED THE REFLAGGING MOVE BY CSX IT'S A BIG PLUS FOR SEALAND GIVEN ITS SLIM PROFIT MARGINS BUT IN THE OVERALL CONTEXT OF CSX IT HAS A MORE MODEST IMPACT SAID MICHAEL LLOYD AN ANALYST AT NATWEST SECURITIES CORP LAST YEAR SEALAND'S OPERATING PROFIT WAS 151 MILLION ON REVENUE OF 315 BILLION CSX EARNED 470 MILLION OR 457 A SHARE IN 1992 EXCLUDING A PRODUCTIVITY CHARGE ON REVENUE OF 873 BILLION NEVERTHELESS THE MOVE TRIGGERED NEW WORRIES ABOUT FURTHER DECLINES IN THE WITHERED US MERCHANT FLEET IT IS A TRAGIC ANNOUNCEMENT SAID HENRY MARCUS A PROFESSOR OF MARINE SYSTEMS AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY WE ARE LOSING AN IMPORTANT INDUSTRY AND ONCE IT IS LOST IT WOULD BE NEXT TO IMPOSSIBLE TO RECREATE SEALAND SAID AN AGREEMENT BETWEEN THE US AND THE MARSHALL ISLANDS PROVIDES THAT CONTROL OF VESSELS REGISTERED IN THE MARSHALL ISLANDS CAN BE ASSUMED BY THE US GOVERNMENT IN THE EVENT OF A NATIONAL SECURITY EMERGENCY 9306300150 930630 IBMMETROMEDIA SLATE VENTURE NEW YORK IBM KIOSK SOLUTIONS AND MUZE INC AN AFFILIATE OF METROMEDIA CO ANNOUNCED AN AGREEMENT TO DESIGN AND MANUFACTURE INSTORE MUSICINFORMATIONRETRIEVAL SYSTEMS IBM KIOSK IS A UNIT OF INTERNATIONAL BUSINESS MACHINES CORP'S FIREWORKS PARTNERS A MULTIMEDIA APPLICATIONS AND SERVICES DIVISION METROMEDIA IS THE LARGE BUSINESS EMPIRE OF INVESTOR JOHN KLUGE THE TOUCHSCREEN KIOSK ALLOWS CUSTOMERS TO SEARCH FOR A RECORDING BY PROVIDING AN ARTIST'S NAME SONG ALBUM TITLE OR MUSIC CATEGORY THE KIOSK PRINTS OUT THE INFORMATION NEEDED TO BUY OR ORDER THE SELECTION IBM KIOSK WILL PROVIDE HARDWARE FOR MUZE'S INFORMATIONRETRIEVAL NETWORK WHICH HAS MORE THAN 300 KIOSKS IN STORES NATIONWIDE 9306300149 930630 BUSINESS BRIEF ITEL CORP FIRM PLANS PUBLIC OFFERING OF 35 TO 45 ANTEC STAKE ITEL CORP CHICAGO SAID IT INTENDS TO TAKE ITS ANTEC UNIT PUBLIC THROUGH AN OFFERING OF AS MUCH AS A 45 STAKE WHICH WOULD YIELD PROCEEDS OF AS MUCH AS 125 MILLION ITEL A HOLDING COMPANY IN WHICH CHAIRMAN SAM ZELL HOLDS THE BIGGEST STAKE SAID IT INTENDS TO FILE A REGISTRATION WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN ANTEC OFFERING ANTEC MAKES PRODUCTS USED IN CABLE TV AND OTHER TELECOMMUNICATIONS IT HAD OPERATING INCOME LAST YEAR OF 121 MILLION ON SALES OF 301 MILLION IN THE OFFERING ANTEC AND PARENT ITEL WILL SELL SHARES TOTALING AN EXPECTED 35 TO 45 STAKE WITH BOTH COMPANIES USING THE AGGREGATE 100 MILLION TO 125 MILLION IN PROCEEDS TO PAY DOWN DEBT 9306300148 930630 FED WEIGHS CHARGING FOR ANNUAL EXAMS AT FOREIGN BANKS WASHINGTON THE FEDERAL RESERVE BOARD IS TAKING THE FIRST STEP TOWARD CHARGING FOREIGN BANKS FOR ONSITE EXAMINATIONS EVEN THOUGH IT HAS RESERVATIONS ABOUT THE REQUIREMENT A 1991 LAW TIGHTENED THE REGULATION OF FOREIGN BANKS IN THE US AND ORDERED THE FED TO CHARGE FOREIGN BANKS FOR ANNUAL INSPECTIONS LAST MONTH HOUSE BANKING COMMITTEE CHAIRMAN HENRY GONZALEZ COMPLAINED IN A LETTER TO FED CHAIRMAN ALAN GREENSPAN THAT THE FED WAS LOSING MILLIONS OF DOLLARS ANNUALLY BECAUSE IT HADN'T STARTED IMPOSING THE FEE MR GREENSPAN RESPONDED BY WRITING THE TEXAS DEMOCRAT THAT THE FED SOON WILL ASK FOR PUBLIC COMMENT ON A PROPOSED METHODOLOGY FOR ASSESSING EXAMINATIONS COSTS HE STRESSED HOWEVER THAT THE BOARD HAS SERIOUS CONCERNS ABOUT CHARGING FOREIGN BANKS BUT NOT DOMESTIC BANKS FOR EXAMINATIONS DISPARATE ASSESSMENT REQUIREMENTS FOR FOREIGN BANKS MAY HAVE REPERCUSSIONS FOR THE INTERNATIONAL POSITION OF US BANKS MR GREENSPAN SAID HE SAID THEY COULD COMPLICATE EFFORTS TO REACH A WORLDWIDE TRADE PACT THAT OPENS FOREIGN MARKETS TO US FINANCIAL SERVICES FIRMS AND HE ASKED CONGRESS TO PASS A LAW THAT TREATS US AND FOREIGN BANKS THE SAME THIS YEAR THE CLINTON ADMINISTRATION PROPOSED TO REQUIRE THE FEDERAL DEPOSIT INSURANCE CORP TO IMPOSE EXAMINATION FEES ON THE BANKS IT REGULATES THE ADMINISTRATION ASSUMED THAT THE FED ALSO WOULD IMPOSE EXAMINATION FEES ON DOMESTIC BANKS BUT THE BANKING INDUSTRY LOBBIED HARD AGAINST THE PROPOSED FDIC CHARGE AND CONGRESS KILLED THE FEE 9306300147 930630 WHO'S NEWS ATLANTIC RICHFIELD CO ATLANTIC RICHFIELD CO LOS ANGELES WILLIAM E WADE JR 50YEAROLD EXECUTIVE VICE PRESIDENT WAS ELECTED A DIRECTOR OF THIS OIL GAS AND MINERAL CONCERN HE FILLS ONE OF THREE VACANCIES ON THE 17MEMBER BOARD CREATED BY THE RETIREMENTS OF DONALD M KENDALL 72 JAMES S MORRISON 63 AND ROBERT E WYCOFF 62 THE COMPANY ALSO SAID TERRY G DALLAS WAS ELECTED VICE PRESIDENT OF CORPORATE PLANNING SUCCEEDING DAN F SMITH WHO RECENTLY WAS ELECTED EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THE LYONDELL PETROCHEMICAL CO SUBSIDIARY MR DALLAS 42 WAS ASSISTANT TREASURER FOR CORPORATE FINANCE WITH ARCO 9306300146 930630 THE OWNERS SHOULD HAVE REALIZED THE CRITTERS COULD GO HOG WILD BY WENDY BOUNDS STAFF REPORTER OF THE WALL STREET JOURNAL AMANDA'S OWNERS SUSPECTED THEY HAD A PROBLEM WHEN ONE MORNING THEY FOUND THE JEALOUS POTBELLIED PIG WITH HER MOUTH CLAMPED FIRMLY AROUND THE FOOT OF THEIR FOURMONTHOLD SON THE PIG HAD TO GO BUT WHERE AMANDA'S OWNER LISA WHITE OF MANCHESTER CONN LOOKED NO FURTHER THAN CHARLES TOWN WVA HOME OF PIGS THE POTBELLIED PIG INTEREST GROUP AND SHELTER A SANCTUARY FOR POTBELLIED PIGS PIGS GET BORED VERY EASILY AND DON'T LIKE TO BE ALONE SO THEY FIND WAYS TO OCCUPY THEMSELVES SAYS DALE RIFFLE COOWNER OF PIGS WE HAVE FOUND THAT IF YOU GIVE THEM AN OUTSIDE AREA AND COMPANION THE WHOLE AGGRESSION STOPS MR RIFFLE ADDS PIGS ARE VERY TERRITORIAL AND IF YOU HAVE A PIG IN THE HOUSE IT GROWS UP WITH THE FAMILY AND EACH MEMBER HAS A PLACE IN THE PIG'S PECKING ORDER IF SOMEONE NEW ENTERS THE HOME WHO DOESN'T HAVE A PLACE IN THE PECKING ORDER THE PIG MUST FIGHT THEM THIS USUALLY BEGINS WITH A PIG CHARGING OVER WITH ITS MOUTH OPEN STOPPING IN FRONT OF THE PERSON AND SNAPPING I GUESS THEY ARE TRYING TO INTIMIDATE YOU HE SAYS IT CAN BE A PROBLEM AT PARTIES MR RIFFLE BEGAN CONTEMPLATING THE SANCTUARY THREE YEARS AGO WHEN HE REALIZED THAT SOME OF THE 200000 PIG OWNERS ACROSS THE NATION WERE DECIDING THAT THE PET OF THE '80S HAD BECOME THE PEST OF THE '90S CONCERNED MR RIFFLE SOLD HIS 2500SQUAREFOOT HOME ON CHESAPEAKE BAY AND MOVED TO A 30BY60SQUAREFOOT STEEL BARN IN THE WOODS MOST OF HIS ANNUAL 25000 SALARY AT A NONPROFIT ENVIRONMENTAL GROUP GOES TO THE SANCTUARY IN ADDITION HIS FRIEND AND BUSINESS PARTNER JIM BREWER PAYS LIVING EXPENSES AND OTHER BILLS THE SANCTUARY WHICH ALSO DEPENDS HEAVILY ON DONATIONS IS HOME TO ABOUT 50 PIGS MOLLY MISSY PIGGY LYNN DAISY MAE AND ZIGGY TO NAME A FEW THE SANCTUARY'S MOST RECENT ADDITION JETHRO HAD BEEN THE SUBJECT OF A DIVORCING COUPLE'S CUSTODY BATTLE AN IRRITATED JUDGE DEEMED NEITHER SPOUSE A FIT PARENT AND SENT THE PIG TO A HUMANE SOCIETY THAT JUST DIDN'T WORK OUT IT SEEMS THE SOCIETY DIRECTOR WANTED TO FEED JETHRO AN APPLE AND MAKE FRIENDS MR RIFFLE SAYS BUT SHE NOTICED THE FAT WRINKLES OVER HIS EYES AND STARTED POKING AT THEM THE PIG BIT HER THAT'S WHEN JETHRO CAME TO US 9306300145 930630 HIGHER NATURAL GAS PRICES MAY BOOST EXPLORATION PROFITS FOR US PRODUCERS BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON THE OIL INDUSTRY EXODUS FROM THE US HAS LEFT LEANER DOMESTIC COMPANIES THAT ARE POISED TO BENEFIT FROM THE SURGE IN NATURAL GAS PRICES THIS YEAR ACCORDING TO THE ACCOUNTING FIRM ARTHUR ANDERSEN & CO IN ITS ANNUAL ENERGY SURVEY THE FIRM SAID THAT WHILE EXPLORATION AND DEVELOPMENT SPENDING IN THE US PLUNGED 27 TO 13 BILLION LAST YEAR THE LOWEST LEVEL IN MORE THAN A DECADE IT MAY REPRESENT THE BOTTOM OF THE INDUSTRY'S SEVERE DECLINE HIGHER NATURAL GAS PRICES WILL BOOST PROFITABILITY OF DOMESTIC PRODUCERS AS WELL AS THE COMPANIES THAT PROVIDE EQUIPMENT AND SERVICES TO DRILL NEW WELLS ARTHUR ANDERSEN SAID THE OIL AND GAS INDUSTRY ALSO DODGED A BULLET IN WASHINGTON WHERE IT APPEARS THAT THE BROADBASED ENERGY TAX PROPOSED BY THE CLINTON ADMINISTRATION WILL WIND UP BEING MUCH MORE NARROW THE US OIL AND GAS INDUSTRY REACHED NEW LOWS IN 1992 BUT THE INDUSTRY IS POISED FOR A RECOVERY SAID VICTOR BURK MANAGING DIRECTOR OF ARTHUR ANDERSEN'S OIL AND GAS DIVISION A LOT OF COMPANIES ARE LOOKING AT INCREASING THEIR EXPLORATION AND DEVELOPMENT SPENDING THIS YEAR IN THE PAST 10 WEEKS THE NUMBER OF RIGS DRILLING WELLS IN THE US HAS CLIMBED 16 TO 702 ACCORDING TO BAKER HUGHES INC AN OIL SERVICE COMPANY IN HOUSTON THE COMPANY PREDICTS THE RIG COUNT WILL AVERAGE 783 FOR THE YEAR WHICH WOULD REQUIRE MORE THAN 900 RIGS TO BE RUNNING LATER THIS YEAR THE HARSH LONGTERM DECLINE IN INDUSTRY EMPLOYMENT MAY ALSO HAVE HIT BOTTOM MR BURK SAID LAST YEAR ABOUT 50000 EXPLORATION AND PRODUCTION JOBS DISAPPEARED CONTINUING A 10YEAR TREND IN WHICH EMPLOYMENT SHRANK FROM 700000 OIL WORKERS IN 1982 TO AROUND 350000 IN 1992 ACCORDING TO THE BUREAU OF LABOR STATISTICS HOWEVER MR BURK DOESN'T EXPECT ANY SIGNIFICANT INCREASE IN HIRING BECAUSE THE COMPANIES THAT SURVIVED THE DOWNTURN LEARNED TO OPERATE WITH FEWER PEOPLE HE ALSO SAID THAT THE RECOVERY WILL BE MODEST BY HISTORICAL STANDARDS AND THAT A NEW ERA OF REDUCED ACTIVITY MAY BECOME PERMANENT FOR INSTANCE WHILE THE RIG COUNT HAS CLIMBED THIS YEAR NO ONE EXPECTS IT TO COME CLOSE TO JUMPING ABOVE 4000 AS IT DID IN 1981 THE CATALYST FOR THE RECOVERY HAS BEEN NATURAL GAS PRICES WHICH HAVE REMAINED ABOVE 2 PER THOUSAND CUBIC FEET FOR MOST OF THE YEAR AT ONE POINT LAST YEAR THEY PLUNGED BELOW 1 NATURAL GAS PRODUCERS ARE BEGINNING TO SEE STABLE PRICES FOR THE FIRST TIME IN YEARS ENABLING THEM TO PLAN EXPLORATION AND DEVELOPMENT PROJECTS MR BURK SAID IN ADDITION THE PRICE IS HIGH ENOUGH FOR MANY PRODUCERS TO NOT ONLY RECOVER THEIR COSTS BUT ALSO ACHIEVE ACCEPTABLE RETURNS ON THEIR DRILLING INVESTMENTS THE ACCOUNTING FIRM SAID IN ITS STUDY OF 234 OIL COMPANIES AROUND THE WORLD ARTHUR ANDERSEN FOUND THAT 1992 EXPLORATION AND DEVELOPMENT SPENDING OUTSIDE THE US SLID 7 TO 308 BILLION ALTHOUGH MR BURK DOESN'T BELIEVE THE DROP REFLECTS A FUNDAMENTAL CHANGE IN THE THRUST OVERSEAS SINCE 1988 OIL COMPANIES HAVE SPENT 526 BILLION MORE ON EXPLORATION AND DEVELOPMENT OUTSIDE THE US THAN WITHIN THE US AND THE GAP HAS WIDENED EACH YEAR 9306300144 930630 UNION BANK SELLS ASSETS SAN FRANCISCO UNION BANK SAID IT COMPLETED THE SALE OF ABOUT 75 MILLION OF UNDERPERFORMING COMMERCIAL REAL ESTATE ASSETS MOSTLY IN SOUTHERN CALIFORNIA BUYERS WEREN'T DISCLOSED THE COMPANY SAID IN APRIL THAT IT RECLASSIFIED ABOUT 80 MILLION OF CALIFORNIA REAL ESTATE AS ASSETS HELD FOR SALE THAT MOVE RESULTED IN A 64 MILLION CHARGE AGAINST FIRSTQUARTER EARNINGS A 1 MILLION CHARGE AGAINST ITS LOANLOSS RESERVE AND A 775 MILLION REDUCTION IN NONPERFORMING ASSETS FOLLOWING THE SALE UNION SAID ITS REMAINING BOOK BALANCE OF ASSETS HELD FOR SALE IS 76 MILLION UNION SAID IT WILL CONTINUE TO PURSUE THE SALE OF UNDERPERFORMING ASSETS UNION IS 761OWNED BY BANK OF TOKYO LTD 9306300143 930630 BUSINESS BRIEF LONE STAR INDUSTRIES INC NEW REORGANIZATION PLAN PAYS MORE TO SOME CREDITORS LONE STAR INDUSTRIES INC STAMFORD CONN SAID IT FILED AN AMENDED PLAN OF REORGANIZATION THAT AMONG OTHER THINGS INCREASES PROPOSED PAYMENTS TO UNSECURED CREDITORS TWO OF LONE STAR'S NINE DIRECTORS OPPOSED THE PLAN WHILE ONE ABSTAINED THE SAME THREE DIRECTORS OBJECTED TO THE PREVIOUS PLAN SAYING UNSECURED CREDITORS WERE BENEFITING UNFAIRLY THE LATEST TERMS CALL FOR THOSE CREDITORS TO RECEIVE ABOUT 85 OF THE REORGANIZED COMPANY'S COMMON EQUITY COMPARED WITH 76 PREVIOUSLY AND THE PLAN WOULD BOOST RECOVERY TO 82 TO 96 FROM THE PREVIOUS 80 TO 93 PREFERRED SHAREHOLDERS WOULD RECEIVE A SMALLER INTEREST IN THE REORGANIZED COMPANY UNDER THE NEW PLAN THE CONSTRUCTION MATERIALS COMPANY SAID NONE OF THE OFFICIAL COMMITTEES ASSOCIATED WITH ITS REORGANIZATION HAS AGREED TO THE NEW PLAN 9306300142 930630 INTERNATIONAL BRIBERY SCANDAL IN JAPAN LEADS TO MORE ARRESTS ALLEGATIONS AGAINST MAYOR CONSTRUCTION OFFICIALS MAY FUEL LDP REVOLT BY MASAYOSHI KANABAYASHI STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO PROSECUTORS ARRESTED EXECUTIVES OF FOUR MAJOR JAPANESE CONTRACTORS AND THE MAYOR OF A BIG CITY ON SUSPICION OF BRIBERY IN THE LATEST CRACKDOWN ON THE CLUBBY TIES BETWEEN JAPAN'S CONSTRUCTION INDUSTRY AND POLITICIANS THE ARRESTS ARE MORE BAD NEWS FOR THE RULING LIBERAL DEMOCRATIC PARTY WHICH HAS BEEN ROCKED BY ALLEGATIONS OF PAYOFFS TO A FORMER TOP PARTY OFFICIAL BY CONTRACTORS THAT SCANDAL HELPED SPARK A REVOLT IN THE LDP THAT LED TO THE DISSOLUTION OF PARLIAMENT THIS MONTH A PERSON AT THE PROSECUTOR'S OFFICE SAID THE INCRIMINATING EVIDENCE AGAINST SENDAI MAYOR TORU ISHII WAS FOUND IN BOXES OF DOCUMENTS SEIZED IN MARCH AFTER THE ARREST OF LDP POWER BROKER SHIN KANEMARU ON SUSPICION OF TAX EVASION MR KANEMARU HIMSELF REPORTEDLY RECEIVED LARGE ILLEGAL DONATIONS FROM CONTRACTORS MR ISHII THOUGH ELECTED AS AN INDEPENDENT IS SAID TO HAVE CLOSE TIES TO REGIONAL LDP OFFICIALS HIS ARREST RAISES THE POSSIBILITY THAT THE KANEMARU INVESTIGATION WILL LEAD TO CHARGES AGAINST OTHER POLITICIANS THE RAID ALSO GIVES WEIGHT TO THE US GOVERNMENT'S CONTENTION THAT RELATIONSHIPS WITHIN JAPAN'S PUBLICWORKS MARKET EFFECTIVELY CLOSE IT TO US CONTRACTORS THE CONTRACTORS ARE SUSPECTED OF PAYING MAYOR ISHII 100 MILLION YEN 941900 AT THE CURRENT EXCHANGE RATE IN APRIL 1992 FOR FAVORS PROVIDED IN VARIOUS PUBLICWORKS PROJECTS AND IN HOPES OF RECEIVING SIMILAR ADDITIONAL FAVORS IN THE FUTURE THE TOKYO PROSECUTOR'S OFFICE SAID MR ISHII A FORMER CAREER BUREAUCRAT IN THE MINISTRY OF HOME AFFAIRS WON HIS THIRD TERM AS MAYOR OF SENDAI JAPAN'S 12TH LARGEST CITY IN NOVEMBER THE CONTRACTORS ARRESTED WERE SHIGERU HONDA CHAIRMAN OF HAZAMA CORP AND AKIRA KAGAMI HAZAMA'S PRESIDENT AND KENICHI TAKAHASHI HAZAMA'S MANAGING DIRECTOR ALSO DETAINED WERE VICE PRESIDENTS OF THREE OTHER FIRMS MITSUI CONSTRUCTION CO NISHIMATSU CONSTRUCTION CO AND SHIMIZU CORP JAPAN'S LARGEST GENERAL CONTRACTOR MAYOR ISHII'S SONINLAW AND A FRIEND OF THE MAYOR WERE ALSO ARRESTED A CONSTRUCTION MINISTRY OFFICIAL SAID THAT BECAUSE OF THE ARRESTS THE MINISTRY HAS DECIDED TO REMOVE THE FOUR CONTRACTORS FROM THE LIST OF QUALIFIED BIDDERS FOR A PERIOD OF TIME TO BE DETERMINED LATER TODAY NEWS OF THE ARRESTS SENT JAPANESE STOCKS TUMBLING WITH THE NIKKEI STOCK AVERAGE CLOSING TUESDAY AT 19543 DOWN 343 POINTS 9306300141 930630 NORTHWEST GETS BANK APPROVAL TO DEFER LOAN BUT SUPPLIERS HAVE YET TO AGREE TO THEIR PART OF RESTRUCTURING PLAN BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL NORTHWEST AIRLINES RECEIVED APPROVAL FROM A GROUP OF BANKS TO DEFER TO 1997 MOST OF THE PAYMENTS ON A 129 BILLION LOAN BUT SUPPLIERS HAVE YET TO AGREE TO THEIR PART OF THE AIRLINE'S RESTRUCTURING PLAN MEANWHILE IT WAS LEARNED THAT NORTHWEST THE ST PAUL MINN UNIT OF WINGS HOLDINGS INC HAS FROM 250 MILLION TO 270 MILLION IN CASH ON HAND THAT DOESN'T INCLUDE PROCEEDS FROM TICKET SALES SPARKED BY FARE CUTS THAT STARTED JUNE 18 AND THAT THE AIRLINE SAID YESTERDAY IT WOULD EXTEND THROUGH FRIDAY WHILE THAT'S LIKELY ENOUGH CASH TO LAST THROUGH THE END OF THIS YEAR IT'S NOT CONSIDERED A LARGE CUSHION IN THE VOLATILE AIRLINE BUSINESS IN ADDITION NORTHWEST FACES 650 MILLION IN DEBT PAYMENTS IN JANUARY ALONE THE CARRIER HAS TOLD ITS LABOR UNIONS IT WILL FILE FOR BANKRUPTCYLAW PROTECTION FROM CREDITORS SOONER IF IT CAN'T GET CONCESSIONS FROM BOTH WORKERS AND LENDERS WHILE THE UNIONS WERE ORIGINALLY GIVEN A DEADLINE OF YESTERDAY A FILING THIS WEEK IS NOW CONSIDERED UNLIKELY THE AIRLINE IS ENGAGED IN TWO DELICATE SETS OF NEGOTIATIONS WITH ITS THREE MAIN UNIONS ON ONE SIDE AND DIVERSE GROUPS OF LENDERS ON THE OTHER THE SUCCESS OF EACH DEAL DEPENDS ON THE SUCCESS OF THE OTHERS BECAUSE NEITHER LENDERS NOR UNIONS WILL SACRIFICE ALONE INDEED THE PILOTS UNION ON WHICH NORTHWEST IS FOCUSING THIS WEEK HAS SOUGHT AN EVEN GREATER RESTRUCTURING OF NORTHWEST'S DEBT THAN THE COMPANY IS PROPOSING AN INDIVIDUAL FAMILIAR WITH THE NEGOTIATIONS WITH THE LENDERS SAID THAT 90 OF THE HOLDERS OF THE 129 BILLION BANK TERM LOAN HAVE AGREED TO DEFERRALS CALLING FOR LOWER PAYMENTS FROM 1994 THROUGH 1996 AND A FINAL PAYMENT OF 900 MILLION IN 1997 THE BANK TERM LOAN ORIGINALLY WAS DUE IN 1994 THROUGH 1996 WHILE APPROVAL BY MORE THAN TWOTHIRDS OF THE BANKS WAS NEEDED FOR THAT PART OF THE FINANCIAL RESTRUCTURING DEFERRING THE AIRLINE'S 600 MILLION REVOLVING CREDIT REQUIRES 100 APPROVAL THE INDIVIDUAL SAID NORTHWEST HAS NEARLY 90 APPROVAL TO EXTEND THE REVOLVING CREDIT TO 1997 FROM 1994 BUT BECAUSE THE REMAINDER HAVE SAID NO OR NOT VOTED IT COULD TAKE TWO MORE MONTHS OF NEGOTIATING TO REACH 100 BECAUSE NORTHWEST HAS ONLY TOLD THE UNIONS IT WILL USE ITS BEST EFFORTS FAILURE TO SECURE APPROVAL ISN'T LIKELY TO KILL OTHER AGREEMENTS IN ADDITION UNITED TECHNOLOGIES AND AIRBUS HAVE YET TO AGREE TO PUSH BACK PAYMENTS ON SOME 840 MILLION IN LOANS AND CREDITS BEYOND THE YEAR 1997 THE INDIVIDUAL CLOSE TO THE NEGOTIATIONS SAID THOSE TWO SUPPLIERS ARE HOLDING OUT FOR A BETTER DEAL AS NORTHWEST SEEKS TO POSTPONE DELIVERIES OF JETS AND ENGINES ENGINEBUILDER PRATT & WHITNEY DECLINED TO COMMENT PRATT ENGINES POWER ABOUT 90 OF NORTHWEST'S FLEET THE ENGINE SUPPLIER IS THOUGHT TO PREFER HELPING THE AIRLINE STAY OUT OF BANKRUPTCY PROCEEDINGS BUT WANTS TO GET A FEE OF MORE THAN 100 MILLION FOR ITS TROUBLE OFFICIALS OF AIRBUS INDUSTRIE HAD NO COMMENT HOWEVER A SOURCE FAMILIAR WITH THE EUROPEAN AIRCRAFT CONSORTIUM'S LOANS TO NORTHWEST SAID THAT THERE ARE NO REAL MAJOR DIFFERENCES THAT COULDN'T BE RESOLVED THE ISSUES AREN'T THAT HUGE OR DIFFICULT IN EXTENDING ITS FARE CUTS NORTHWEST SAID THAT RESPONSE TO THE PROMOTION HAS BEEN EXCELLENT AMONG OTHER RESTRICTIONS PASSENGERS MUST BUY THE NONREFUNDABLE TICKETS AT LEAST SEVEN DAYS IN ADVANCE AMR CORP'S AMERICAN AIRLINES SAID IT WOULD MATCH THE EXTENSION AND OTHER CARRIERS ARE EXPECTED TO DO THE SAME SUSAN CAREY CONTRIBUTED TO THIS ARTICLE 9306300140 930630 BUSINESS BRIEF PHILIP MORRIS COS TOBACCO CONCERN WILL BUY 49 STAKE IN RUSSIAN FACTORY PHILIP MORRIS COS NEW YORK AGREED TO BUY A 49 HOLDING IN A TOBACCO FACTORY IN SOUTHERN RUSSIA FOR 60 MILLION THE COMPANY HAD BEEN NEGOTIATING SINCE LAST YEAR TO BUY A STAKE IN THE KRASNODAR TOBACCO FACTORY FROM THE REGIONAL STATE PROPERTY FUND UNDER THE AGREEMENT THE COMPANY SAID IT WILL INCREASE ITS OWNERSHIP TO A MAJORITY THROUGH CAPITAL INVESTMENT THE COMPANY PLANS TO RENOVATE THE FACTORY INCREASE CAPACITY SIGNIFICANTLY AND INSTALL MODERN TECHNOLOGY AND PHILIP MORRIS WILL BEGIN PRODUCING ITS OWN BRANDS AT THE PLANT INCLUDING MARLBORO PHILIP MORRIS AND OTHER TOBACCO COMPANIES ARE EXPANDING AGGRESSIVELY INTO EAST EUROPE AND THE FORMER SOVIET UNION TO TAKE ADVANTAGE OF THE DEMAND FOR HIGHERQUALITY CONSUMER GOODS 9306300139 930630 WHO'S NEWS KEYCORP KEYCORP ALBANY NY DEBORAH L BEVIER 42 YEARS OLD WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF KEY BANK OF WASHINGTON A UNIT OF THIS BANK HOLDING COMPANY MS BEVIER SUCCEEDS HANS J HARJO WHO RESIGNED KEY BANK OF WASHINGTON HAS MORE THAN 6 BILLION IN ASSETS FREDERICK E WOLFERT 39 WAS NAMED CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE KEY BANK USA UNIT SUCCEEDING MS BEVIER HE REMAINS PRESIDENT OF THE KEYCORP LEASING LTD UNIT 9306300138 930630 BUSINESS BRIEF NOBLE DRILLING CORP PURCHASE OF 9 DRILLING RIGS FROM WESTERN CO IS SLATED NOBLE DRILLING CORP OF HOUSTON SAID IT AGREED TO BUY NINE OFFSHORE DRILLING RIGS FROM WESTERN CO OF NORTH AMERICA FOR 150 MILLION THE TRANSACTION EXPECTED TO CLOSE BY OCT 15 WILL INCREASE NOBLE'S DRILLING FLEET TO 32 RIGS INCLUDED IN THE AGREEMENT STILL SUBJECT TO CONDITIONS AND APPROVALS ARE CONTRACTS RELATING TO THE RIGS BEING ACQUIRED NOBLE A DRILLING CONTRACTOR EXPECTS TO FINANCE THE PURCHASE FROM CASH RAISED IN A PUBLIC OFFERING OF SECURITIES SOON TO BE REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION WESTERN CO AN OIL FIELD SERVICE CONCERN IN HOUSTON SAID IT WILL USE PROCEEDS FROM THE SALE FOR FURTHER EXPANSION IN THE PRESSURE PUMPING BUSINESS AND FOR ACQUISITIONS OF OTHER OIL SERVICE BUSINESSES 9306300137 930630 PEPPERAND SALT WAS THE COMMUNIST'S BATTLE CRY YOU WANT TO KNOW WHY THEY'D RATHER BE FED THAN RED AS THROUGH MY YEARS I WEND I'LL EVER COMPREHEND 9306300136 930630 INSIDER TRADING SPOTLIGHT NOTE SHOWS PURCHASES AND SALES BY MOST OFFICERS AND DIRECTORS WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED W1000 OR MORE CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9306300135 930630 ENTERPRISE CLINTON BRAVES SMALLBUSINESS LION'S DEN' BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AS PRESIDENT CLINTON MOVED TO MEND FENCES WITH HIS MAJOR SMALLBUSINESS FOE HE MAY HAVE ALIENATED SOME SMALLBUSINESS FRIENDS IN THE PROCESS IN A SPEECH HERE YESTERDAY MR CLINTON TOOK HIS CASE FOR THE BUDGET BILL AND HEALTHCARE REFORM DIRECTLY TO ONE OF THE MOST AGGRESSIVE OPPONENTS OF HIS PROPOSALS THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS THE NFIB THE LARGEST GROUP REPRESENTING SMALL BUSINESS CONTENDS THAT THE PRESIDENT'S PROPOSED TAX INCREASES AND MANDATED HEALTH COVERAGE WOULD BE TOO COSTLY FOR ITS MEMBERS THE PRESIDENT DIDN'T PROPOSE ANY SUBSTANTIVE CHANGES IN EITHER PROPOSAL AND MANY SMALL BUSINESS OWNERS ATTENDING THE MEETING REMAINED SKEPTICAL AFTER HEARING THE SPEECH BUT NFIB OFFICIALS WHO EARLIER HAD REFUSED TO ATTEND PUBLIC HEARINGS BY THE WHITE HOUSE HEALTHCARE TASK FORCE DID AGREE TO MEET WITH ADMINISTRATION OFFICIALS ON THE HEALTHCARE ISSUE AND THE PRESIDENT WON HIS WARMEST APPLAUSE AT THE MEETING WHEN HE TOLD SMALL BUSINESS ADMINISTRATION CHIEF ERSKINE BOWLES TO WORK WITH THE NFIB TO BRING IN A GROUP OF SMALL BUSINESS OWNERS TO MEET WITH HIM REGULARLY AT THE WHITE HOUSE YESTERDAY'S SPEECH IN THE LION'S DEN WAS PART OF A STRATEGY BY WHITE HOUSE OFFICIALS TO TRY TO WIN SUPPORT FROM THE SMALL BUSINESS COMMUNITY DESPITE THE NFIB'S RESISTANCE HOUSE SMALL BUSINESS COMMITTEE CHAIRMAN JOHN LAFALCE A NEW YORK DEMOCRAT SAYS HE AGREES WITH THE STRATEGY IF I CAN'T HAVE NFIB AS MY ALLY I'D DO MY BEST TO NEUTRALIZE THEM CLINTON ADVISER ALEXIS HERMAN MADE THE FIRST APPROACH TO FEDERATION OFFICIALS LAST WEEK INVITING THEM TO THE WHITE HOUSE AND ARRANGING FOR A BRIEF MEETING AMONG PRESIDENT CLINTON NFIB PRESIDENT JACKSON FARIS AND THE GROUP'S CHIEF LOBBYIST JOHN MOTLEY BUT THAT MEETING AND MR CLINTON'S SPEECH RUFFLED THE FEATHERS OF NATIONAL SMALL BUSINESS UNITED A GROUP THAT HAS BEEN MORE COOPERATIVE WITH THE PRESIDENT THAN HAS THE NFIB THERE ARE OTHER GROUPS THAT DON'T REGULARLY DO AN INYOURFACE' WITH HIM SAYS TOM CATOR A LOBBYIST WHO REPRESENTS NSBU AND OTHER ORGANIZATIONS NSBU VICE PRESIDENT JOHN GALLES COMPLAINS THAT THE PRESIDENT HASN'T SHOWN THE SAME ATTENTION TO PEOPLE WHO HAVE SUPPORTED HIM THE PRESIDENT'S BUDGET PLAN MEANWHILE NEEDS ALL THE SUPPORT IT CAN MUSTER AS CONGRESSIONAL CONFEREES TRY TO MERGE SEPARATE VERSIONS OF THE BILL PASSED BY THE HOUSE AND SENATE TAX INCENTIVES FOR SMALL FIRMS ARE EXPECTED TO BE A STICKING POINT AGAIN IN THE HOUSESENATE CONFERENCE ALTHOUGH MR CLINTON ARGUED YESTERDAY THAT HIS BUDGET PLAN'S DEFICIT REDUCTION WOULD AID THE ECONOMY AND SMALL BUSINESS IN THE LONG RUN HIS PROPOSALS HAVE RUN INTO OPPOSITION FROM BUSINESS OWNERS THE FEDERATION HAS OPPOSED THE CLINTON BUDGET FROM THE START SAYING IT CONTAINS TOO MANY TAX INCREASES WITH TOO FEW SPENDING CUTS IN HIS SPEECH THE PRESIDENT FOCUSED ON HIS SMALLBUSINESS TAX INCENTIVES BOTH THE HOUSE AND SENATE APPROVED AN INCREASE IN THE AMOUNT OF CAPITAL EXPENSES SMALL FIRMS CAN WRITE OFF FROM THEIR TAXABLE INCOME IN THE FIRST YEAR MR CLINTON PRESSED HARD FOR THE HOUSE VERSION WHICH WOULD INCREASE THE WRITEOFF TO 25000 FROM 10000 THE SENATE MEASURE PROVIDES FOR AN INCREASE TO ONLY 20500 ANNUALLY A CUT IN THE CAPITAL GAINS TAX WHICH WOULD BENEFIT MIDSIZE CONCERNS IS INCLUDED ONLY IN THE HOUSE BILL THE SENATE MEASURE WOULD IMPOSE A 10 SURCHARGE ON CAPITAL GAINS AN ACTION PRESIDENT CLINTON SAID IN HIS SPEECH IS NOT WELLADVISED THE SPEECH WON'T CHANGE NFIB'S OPPOSITION TO THE BUDGET BILL OR MANDATED HEALTH CARE THE FEDERATION'S MR MOTLEY SAID BUT MR CLINTON CLEARLY MADE HEADWAY WITH SOME NFIB MEMBERS ISHMAEL PEREZ OWNER OF CALIFORNIA BRAKE & CLUTCH INC AN AUTO REPAIR SHOP WITH STORES IN OAKLAND SAN FRANCISCO AND HAYWARD CALIF SAID HE WAS VERY SKEPTICAL OF THE PRESIDENT'S PLANS BEFORE THE SPEECH I'M IMPRESSED MR PEREZ A REPUBLICAN SAID AFTER THE TALK HE MADE MORE SENSE ON HEALTH CARE THAN WHAT I'D HEARD BEFORE NONETHELESS THE PRESIDENT'S RECEPTION DIDN'T MATCH THAT GIVEN TO GOP SENATE LEADER BOB DOLE OF KANSAS WHEN HE ARRIVED AS MR CLINTON WAS STILL SHAKING HANDS CHEERS AND WILD APPLAUSE GREETED SEN DOLE 9306300134 930630 LEISURE & ARTS BOOKJAM THREE WRITERS ONE TOPIC BY ANNE S LEWIS AUSTIN TEXAS BACK IN THE SPRING OF 1987 TEXAS WRITER ELIZABETH CROOK HAD TWO BALLS IN THE AIR HER FIRST BOOK THE RAVEN'S BRIDE ABOUT SAM HOUSTON'S 11WEEK MARRIAGE TO ELIZA ALLEN WAS FINISHED BUT NEEDED A PUBLISHER MEANWHILE SHE WAS WORKING ON ANOTHER ONE A NOVEL BASED ON THE TEXAS REVOLUTION OF 1836 WHEN TEXAS MONTHLY PRESS EXPRESSED INTEREST IN THE RAVEN'S BRIDE MS CROOK MET WITH ONE OF ITS EDITORS STEPHEN HARRIGAN OVER LUNCH HERE MR HARRIGAN HAPPENED TO MENTION THAT HE HIMSELF HAD A HISTORICAL NOVEL IN THE WORKS SOMETHING ABOUT THE TEXAS REVOLUTION OF 1836 MS CROOK RECALLS VIVIDLY THE PANIC THE SURGE OF AUTHORIAL TERRITORIALITY THIS MAN WAS WRITING MY BOOK WHEN SHE RECOVERED SUFFICIENTLY TO SPUTTER OUT HER OWN IDENTICAL PROJECT IT WAS MR HARRIGAN'S TURN TO EXPERIENCE THE SHEER TERROR OF HAVING YOUR SUBJECT MATTER POACHED UPON AN AWKWARD SILENCE HOVERED OVER THE LUNCH TABLE THEN WE STARTED LAYING DIBS ON DIFFERENT BATTLES MS CROOK REMEMBERS STEVE PROMISED NOT TO WRITE ABOUT THE MASSACRE AT GOLIAD IF I WOULDN'T WRITE ABOUT THE ALAMO AND IT WAS SETTLED JUST LIKE THAT LITTLE DID THESE TWO AUSTIN WRITERS KNOW THAT JEFF LONG A BOULDER COLO WRITER WHOM MS CROOK HAD MET WHILE RESEARCHING HER FIRST BOOK HAD RECENTLY EMBARKED UPON WHAT ELSE A NOVEL ABOUT THE TEXAS REVOLUTION OF 1836 LUCKILY HE'D SETTLED ON THE REMAINING SIGNIFICANT BATTLE SITE SAN JACINTO SURPRISINGLY MS CROOK'S FRIENDSHIP WITH MR LONG FLOURISHED AS DID HER NEW ASSOCIATION WITH MR HARRIGAN EVEN THOUGH SHE LATER CHANGED PUBLISHERS FITTINGLY THE TWO MEN MET AT HER BOOK SIGNING IN NEW YORK WHEN THE RAVEN'S BRIDE DOUBLEDAY FINALLY CAME OUT IN 1991 AND THEY LIKED EACH OTHER SO NOW THERE WERE THREE FRIENDS WORKING IN TWO CITIES ON THE SAME SUBJECT EACH REEXAMINING THROUGH PERSONAL PRISMS AND WITH VERY DIFFERENT AGENDAS THE MYTHOLOGY SURROUNDING TEXAS FIGHT FOR INDEPENDENCE FROM MEXICO IT WAS BY ANY MEASURE AN UNUSUAL SITUATION AND A POTENTIALLY PERILOUS ONE AFTER ALL IT IS EVERY NOVELIST'S WORST NIGHTMARE TO DISCOVER THAT SOMEONE ELSE IS WRITING HIS BOOK BUT NOW THESE WRITERS WERE FRIENDS AND THE QUESTION BECAME HOW DO FRIENDS PROCEED TO WORK ON THREE PARALLEL PROJECTS EACH COULD HAVE WORKED IN ISOLATION OUTWARDLY CONVIVIAL BUT INWARDLY ANXIOUS FRETTING ABOUT THE IMPACT THAT THE OTHER TWO BOOKS WOULD HAVE ON HIS OR HER OWN MARKET SHARE INSTEAD THEY DECIDED TO COLLABORATE SHARE THEIR NEUROSES AND THEIR IDEAS AND HAVE SOME FUN TOO WHY NOT MR HARRIGAN SUGGESTED SHARE A FEW CHARACTERS TO TITILLATE AND REWARD ANYONE WHO READ ALL THREE BOOKS SO FOR EXAMPLE ONE OF MS CROOK'S MAIN CHARACTERS MAKES A CAMEO APPEARANCE IN MR LONG'S BOOK AND WILL ALSO APPEAR IN MR HARRIGAN'S AND THOUGH MR HARRIGAN'S BOOK IS NOT YET FINISHED ONE OF HIS PRIMARY CHARACTERS HAS ALREADY APPEARED IN PRINT IN MR LONG'S JUST PUBLISHED NOVEL EMPIRE OF BONES WILLIAM MORROW 265 PAGES 22 MR HARRIGAN SAYS HE DOESN'T MIND TRUE WE HAVE A FEW CHARACTERS IN COMMON BUT WHEN THOSE CHARACTERS WANDER FROM ONE BOOK TO ANOTHER THEY ENTER COMPLETELY DIFFERENT LANDSCAPES INDEED MR HARRIGAN'S AND MS CROOK'S BOOKS ARE ALMOST CERTAIN TO GIVE A VERY DIFFERENT VIEW OF THE 1836 REBELLION THAN MR LONG'S HE IS THE POLITICAL REVISIONIST OF THE GROUP THIS WAS ALREADY CLEAR FROM HIS HIGHLY CONTROVERSIAL EARLIER NONFICTION BOOK ABOUT TEXAS HISTORY DUEL OF EAGLES CONTRARY TO WHAT TEXAS SCHOOLCHILDREN MAY LEARN MR LONG VIEWS TEXAS' STRUGGLE WITH MEXICO AS NO NOBLE BID FOR FREEDOM BUT RATHER A BALD ATTEMPT AT LAND THEFT THUS THE BATTLE AT SAN JACINTO GENERALLY REGARDED AS A HOLY BATTLE OF REDEMPTION FOR TEXAS IS DEPICTED IN EMPIRE OF BONES AS A MASSACRE WAGED NOT BY HEROES AND MARTYRS BUT BY A GREEDY HORDE OF LAND THIEVES MR HARRIGAN PREFERS TO SIDESTEP SUCH POLITICAL JUDGMENTS A DIVERSE WRITER WHOSE MOST RECENT BOOK WAS WATER AND LIGHT A PERSONAL INVESTIGATION OF SCUBA DIVING MR HARRIGAN WILL NOT BE GIVING HOUGHTON MIFFLIN A MANUSCRIPT THAT WILL TROUBLE ANY AUSTIN NEIGHBORS WHO REMEMBER THE ALAMO WITH PRIDE HE CALLS HIMSELF A CASUALTY OF THE FESS PARKER VERSION OF THE DAVY CROCKETT LEGEND AND IS WRITING ABOUT THE ALAMO BECAUSE HE'S SPENT A LIFETIME TRYING TO CONJURE UP THIS PLACE THAT HAS ALWAYS SEEMED THE ESSENCE OF ANTIQUITY AND MYSTERY MS CROOK'S PROMISED LANDS CENTERS ON THE EXPERIENCES OF HISPANIC TEXANS AT THE MASSACRE AT GOLIAD AND WILL BE PUBLISHED BY DOUBLEDAY NEXT YEAR SHE PUTS HERSELF SOMEWHERE BETWEEN MR HARRIGAN'S DETACHMENT AND MR LONG'S POLEMICAL STANCE I PREFER TO TELL THE STORY AND LET THE THEMES PERCOLATE UP THROUGH THE CHARACTERS SHE EXPLAINS MS CROOK MR LONG AND MR HARRIGAN SHARE AN OBSESSION WITH THE DETAILS OF EVERYDAY LIFE IN TEXAS IN 1836 DID PEOPLE USE SHOELACES WHAT DID THEY USE TO CLEAN THEIR TEETH ANSWERS MUST BE PAINSTAKINGLY CULLED FROM ACADEMIC JOURNALS DIARIES PERSONAL HISTORIES AND OTHER PRIMARY SOURCES HOUSED IN ARCHIVES AROUND THE STATE MR LONG FILLED 10000 INDEX CARDS WITH HISTORICAL ARCANA FOR DUEL OF EAGLES IT MADE SENSE THAT THE THREE WOULD POOL THEIR VOLUMINOUS FILES AND LOOK OVER EACH OTHER'S SHOULDERS IN AN INFORMAL THREEWAY EDITING NETWORK THEIR COMMENTS WERE ALWAYS DIFFERENT MS CROOK OBSERVES JEFF IS MORE CAUSEORIENTED HE WANTS TO CHANGE THINGS THROUGH HIS BOOKS REWRITE THE TEXAS MYTH HE WANTED ME TO CHANGE THE ENDING OF MY BOOK TO HAVE MORE OF A POLITICAL IMPACT MR LONG LAUGHS AS HE RECALLS MS CROOK'S DISCOMFORT EACH TIME HE PORTRAYED HER HERO SAM HOUSTON IN A LESSTHANFLATTERING LIGHT REVEALING FOR EXAMPLE HIS OPIUM ADDICTION AND THAT HE WORE A GIRDLE SHE FELT IT WAS OK TO MAKE HOUSTON LOOK BAD JUST NOT SILLY HE SAYS MS CROOK WAS HOWEVER OPEN TO SUGGESTIONS EVEN TO THE POINT OF ACCEPTING ACTUAL LANGUAGE FROM MR HARRIGAN WHEN SHE HIT A ROUGH SPOT IN HER STORY WHEN IT WAS TIME TO KILL OFF ONE OF HER FAVORITE FEMALE CHARACTERS SHE WAS TOO ATTACHED TO THE WOMAN TO COMMIT THE MURDER HERSELF AT FIRST SHE LAUGHED WHEN MR HARRIGAN OFFERED TO WRITE THE SCENE FOR HER BUT LATER SHE ACCEPTED I WROTE THE LEADUP AND THEN WENT OUT FOR A JOG SHE RECALLS WHEN I GOT HOME THERE WAS THE DEATH SCENE ON MY FAX MACHINE I READ IT AND WEPT I FELT LIKE I'D LET SOMEONE ELSE TAKE MY DOG TO THE VET TO BE PUT TO SLEEP I MADE SOME CHANGES BUT THE SCENE WAS DEFINITELY BETTER FOR THE OBJECTIVITY STEVE BROUGHT TO IT SO WILL THIS FRIENDSHIPCUMLITERARY COLLABORATION SURVIVE THE PUBLICATION OF ALL THREE NOVELS SURE MR HARRIGAN SAYS SO LONG AS WE DON'T REVIEW EACH OTHER'S BOOKS MS LEWIS IS A WRITER IN AUSTIN 9306300133 930630 BUSINESS BRIEF PEPSICO INC UNIT FORMS JOINT VENTURE WITH CHINA'S ASIA BEVERAGE PEPSICOLA INTERNATIONAL A UNIT OF PEPSICO INC HAS SIGNED AN AGREEMENT WITH ASIA BEVERAGE CO TO MAKE AND DISTRIBUTE A LINE OF SOFT DRINKS THROUGHOUT CHINA THE JOINT VENTURE HAS A CAPITALIZATION OF 125 MILLION WITH PEPSI HOLDING A 60 STAKE AND ASIA BEVERAGE OWNING 40 THE NAME OF THE NEW COMPANY IS THE PEPSI & ASIA BEVERAGE CO FOR NOW THE JOINT VENTURE WILL DISTRIBUTE ONLY SOFT DRINKS MADE BY ASIA BEVERAGE BASED IN GUANGZHOU CHINA SAID KEN ROSS A PEPSICOLA SPOKESMAN BUT THE ARRANGEMENT WILL GIVE PEPSI A FUTURE POINT OF ENTRY INTO THE NATIONAL CHINESE MARKET FOR PEPSI PRODUCTS HE SAID PERCAPITA CONSUMPTION FOR ALL SOFT DRINK BRANDS IN CHINA IS ABOUT 13 SERVINGS ANNUALLY COMPARED WITH 750 SERVINGS PER PERSON IN THE US ACCORDING TO PEPSI PEPSICOLA INTERNATIONAL CURRENTLY OPERATES SEVEN COOPERATIVE BOTTLING PLANTS AND TWO CONCENTRATE PLANTS IN CHINA 9306300132 930630 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN AMERICAN CARS AND MINIVANS WILL GO ON SALE FOR THE FIRST TIME TO THE CHINESE PUBLIC IN AUGUST THE PEOPLE'S DAILY SAID A CHINESE DELEGATION BOUGHT THE 14447 VEHICLES IN APRIL FOR ABOUT 160 MILLION FROM GENERAL MOTORS CORP FORD MOTOR CO AND CHRYSLER CORP BEIJING FOR THREE YEARS HAS TRIED TO BOOST PURCHASES FROM THE US IN RESPONSE TO COMPLAINTS ABOUT CHINA'S GROWING TRADE SURPLUS FOREIGN VEHICLES HAVE BEEN ALLOCATED TO STATE AGENCIES AND ENTERPRISES DEMAND FOR AUTOS EXCEEDS CHINA'S DOMESTIC SUPPLY THE PUBLIC SALE WHICH BARS MIDDLEMEN AND RETAILERS WILL BE HELD AT 104 OUTLETS PRICES WEREN'T SPECIFIED IN JAPAN ONLY 42 OF AUTO DEALERS WANT TO SELL US CARS A FAIR TRADE COMMISSION SURVEY FOUND RESPONDENTS CITED HIGH PRICES FOR FOREIGN CARS AND INADEQUATE PARTS SUPPLIES AND REPAIR SERVICES UNEMPLOYMENT IN JAPAN ROSE TO 25 IN MAY THE HIGHEST LEVEL SINCE SEPTEMBER 1988 THE RATE IN APRIL WAS 23 FOR EVERY 100 JOB APPLICANTS 81 RECEIVED OFFERS DOWN FROM 84 IN APRIL CONTINUING A DECLINE THAT BEGAN IN MARCH 1991 JAPAN CITED THE YEN'S APPRECIATION AGAINST OTHER CURRENCIES AS A FACTOR BOOSTING COMPANIES' WORRIES ABOUT ECONOMIC RECOVERY THE UNEMPLOYMENT RATE HIT A RECORD HIGH OF 31 IN 1987 IN THE WAKE OF A RECESSION CAUSED PARTLY BY THE YEN'S SHARP RISE WHICH MAKES JAPANESE EXPORTS MORE EXPENSIVE BULGARIA SAID IT WOULD STOP MAKING INTEREST PAYMENTS ON ITS DEBT TO FOREIGN BANKS THE GOVERNMENT SAID IT WOULD RESUME PAYMENTS ONLY IF FOREIGN CREDITORS TAKE INTO CONSIDERATION BULGARIA'S LOSSES FROM ENFORCING INTERNATIONAL SANCTIONS AGAINST YUGOSLAVIA BULGARIA CLAIMS LOST BUSINESS AND TRADE TOTALING 18 BILLION BECAUSE OF THE SANCTIONS BULGARIA'S FOREIGN DEBT AT THE END OF 1992 TOTALED 1295 BILLION INCLUDING 927 BILLION OWED TO MORE THAN 300 COMMERCIAL BANKS AND 368 BILLION TO GOVERNMENTS BULGARIA RESUMED DEBT PAYMENTS IN 1992 AFTER A LAPSE OF MORE THAN TWO YEARS A POOR SUGAR HARVEST AND INSUFFICIENT REFINING CAPACITY WILL LEAVE CUBA 500 MILLION POORER PRESIDENT FIDEL CASTRO TOLD PARLIAMENT IN A SESSION ON THE FINANCIALLY REELING ISLAND'S ENERGY CRISIS BECAUSE OF BAD WEATHER AND A LACK OF FERTILIZER AND FUEL AMONG OTHER PROBLEMS THE 199293 HARVEST OF CUBA'S MAIN EXPORT COULD DROP 40 TO 42 MILLION TONS FROM A YEAR EARLIER ABOUT 7 MILLION TONS OF HARVESTED SUGAR CANE CAN'T BE REFINED REPRESENTING THE LOSS OF 900000 TONS OF SUGAR VALUED AT 200 MILLION THIS WILL REDUCE HARDCURRENCY EARNINGS AND WORSEN THE SCARCITY OF RATIONED FOOD AND OTHER NECESSITIES SOUTH KOREA UNVEILED A TIMETABLE FOR FREEING ITS EXCHANGERATE SYSTEM THE THIRD AND FINAL STAGE IN OPENING ITS FINANCIAL MARKETS TO APPROACH GLOBAL COMPETITIVE STANDARDS BY 1997 IN LIFTING BARRIERS TO MONEY TRANSFERS AND FOREIGN EXCHANGE THE GOVERNMENT STARTING OCT 1 WILL WIDEN THE RANGE OF EXCHANGERATE FLUCTUATIONS ALLOWED AND IN 1996 LAUNCH A FREEFLOATING SYSTEM USED IN INDUSTRIALIZED COUNTRIES LIBERALIZING FOREIGNCURRENCY DEPOSITS AND SETTLEMENT OF TRADE ACCOUNTS ARE AMONG OTHER WIDERANGING MEASURES PLANNED NEW METEOROLOGICAL CODES FOR AVIATION TO TAKE EFFECT GLOBALLY TOMORROW WILL IMPROVE ACCURACY OF WEATHER FORECASTS AND BOOST FLIGHT SAFETY AND OPERATING ECONOMY A UNITED NATIONS AGENCY IN GENEVA SAID THE CODES FOR THE FIRST TIME WILL BE UNIVERSAL PROVIDING UNIFORMITY FOR PILOTS AIRTRAFFIC CONTROLLERS FLIGHT DISPATCHERS AND WEATHER FORECASTERS THE WORLD METEOROLOGICAL ORGANIZATION SAID AIRLINES MAY BENEFIT FROM THE CODES AND THE MORE PRECISE WEATHER DATA THAT CAN HELP PILOTS ECONOMIZE ON FUEL AND AVOID COSTLY DIVERSIONS OF AIRCRAFT GERMANY'S NATIONAL RAILWAYS WILL CUT ALMOST 90000 OR 23 OF THEIR JOBS BY 1998 THE TWO REGIONAL SYSTEMS ARE TO BE PRIVATIZED NEXT YEAR IN A NEW COMBINED COMPANY NAMED BAHN AG THE BUNDESBAHN THE WESTERN GERMAN RAIL ENTERPRISE HAS 223000 WORKERS AND THE REICHSBAHN THE EASTERN REGION'S SYSTEM HAS 167000 THIS YEAR THE REICHSBAHN WILL CUT ABOUT 20000 JOBS TO SHRINK A SURPLUS THAT RESULTED FROM TECHNOLOGICAL IMPROVEMENTS MADE SINCE GERMAN REUNIFICATION THE OTHER 70000 REDUCTIONS ARE TO BE ACHIEVED THROUGH ATTRITION RAILWAY EMPLOYEES MAY BE OFFERED AN OPTION TO RETIRE AT AGE 55 IN A PLAN SIMILAR TO ONE OFFERED BY GERMANY'S POST OFFICE WITH FULL BENEFITS AND A ONETIME PAYMENT OF AS MUCH AS 8000 MARKS 4710 WITH THE GERMAN ECONOMY STRUGGLING IN RECESSION THE RAILWAY UNION SAID IT WOULDN'T ACCEPT MASS LAYOFFS OR A SWEEPING EARLYRETIREMENT PROGRAM BUT THE CIVIL SERVICE UNION WELCOMED THE LATTER VIETNAM'S FIRSTHALF RICE EXPORTS ROSE 30 FROM A YEAR EARLIER TO 780000 METRIC TONS THE COUNTRY HAS BEEN THE WORLD'S THIRDLARGEST RICE EXPORTER AFTER THAILAND AND THE US SINCE 1989 LONDON OBSERVED THE CENTENNIAL OF THE STATUE OF EROS THE GREEK GOD OF LOVE IN PICCADILLY CIRCUS THE FIGURE A WINGED ARCHER WAS UNVEILED IN THE BRITISH CAPITAL ON JUNE 29 1893 IN HONOR OF THE EARL OF SHAFTESBURY A REFORMER WHO OPPOSED CHILD LABOR AND WAS NAMED ANGEL OF CHRISTIAN CHARITY 9306300131 930630 BUSINESS BRIEF ANADARKO PETROLEUM CORP SECONDQUARTER EARNINGS PUT IN MIDDLE OF ESTIMATES ANADARKO PETROLEUM CORP EXPECTS TO REPORT SECONDQUARTER NET INCOME IN THE MIDDLE OF ANALYSTS' ESTIMATES OF 20 CENTS TO 25 CENTS A SHARE ROBERT ALLISON CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN HOUSTON THAT WOULD BE A SHARP TURNAROUND FROM LAST YEAR'S SECOND QUARTER WHEN ANADARKO HAD A NET LOSS OF 77 MILLION OR 14 CENTS A SHARE ON REVENUE OF 696 MILLION THE PRIMARY CHANGE IS THE SHARP INCREASE IN NATURAL GAS PRICES THIS YEAR IF HIS GASPRICE FORECAST IS CORRECT THE COMPANY'S FULLYEAR EARNINGS WILL BE AT THE LOWER END OF ANALYSTS' RANGE OF 120 TO 140 A SHARE HE SAID A WINTER SURGE IN PRICES COULD PUSH EARNINGS INTO THE HIGHER END HE ADDED LAST YEAR ANADARKO HAD NET INCOME OF 273 MILLION OR 49 CENTS A SHARE ON REVENUE OF 3752 MILLION THE RESULTS INCLUDED A PRETAX CHARGE OF 21 MILLION 9306300130 930630 TUESDAY'S MARKETS STOCKS DROP AS INVESTORS TAKE PROFITS ECONOMIC DATA OFFER EXCUSE FOR SELLOFF DOLLAR FINISHES MIXED BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL PROFITTAKERS MOVED INTO THE STOCK MARKET AMID SOME UNEXPECTEDLY POOR ECONOMIC NEWS BOND PRICES WERE VIRTUALLY UNCHANGED AND THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE FELL 1135 POINTS TO 351885 STANDARD & POOR'S 500STOCK INDEX SLIPPED 116 TO 45069 AND THE NASDAQ COMPOSITE INDEX DECLINED 177 TO 70107 INVESTORS DROVE THE INDUSTRIAL AVERAGE DOWN NEARLY 25 POINTS BEFORE SOME LATE BUYING MODERATED THE DECLINE A BARRAGE OF DISAPPOINTING ECONOMIC NEWS GAVE INVESTORS AN EXCUSE TO TAKE PROFITS THE COMMERCE DEPARTMENT SAID ITS COMPOSITE INDEX OF LEADING INDICATORS SLID 03 IN MAY SLIGHTLY MORE THAN THE 01 DECLINE ECONOMISTS HAD FORECAST ALSO THE CONFERENCE BOARD'S INDEX OF CONSUMER CONFIDENCE DECLINED IN JUNE RATHER THAN INCHING HIGHER AS ECONOMISTS HAD EXPECTED OFFSETTING THE DOWNBEAT NEWS THE JOHNSON REDBOOK SERVICE A PRIVATE SURVEY RELEASED DATA SHOWING THAT RETAIL SALES ROSE 07 FOR THE FOUR WEEKS ENDED JUNE 26 THE REDBOOK SURVEY SUGGESTS THINGS AREN'T FALLING APART THE WAY THE OTHER NUMBERS INDICATE SAID JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ & CO THE RECENT BONDMARKET RALLY COOLED WITH PRICES DOWN FOR MOST OF THE DAY TODAY'S BEHAVIOR OF BONDS IS ONLY A PAUSE SAID MICKEY D LEVY CHIEF ECONOMIST AT CRT GOVERNMENT SECURITIES LONGTERM RATES WILL CONTINUE TO MOVE DOWN DURING THE SUMMER MR LEVY SEES LONGTERM RATES SINKING AS LOW AS 625 BECAUSE OF THE SLOWGROWTH LOWINFLATION ENVIRONMENT A FIRMING OF THE DOLLAR RECESSIONARY CONDITIONS THROUGHOUT MOST OF THE WORLD AND THE EXPECTED PASSAGE OF THE CLINTON DEFICITREDUCTION PACKAGE WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX DROPPED 054 TO 10634 IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 272987540 SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 970 ISSUES ROSE AND 979 FELL BOND PRICES WERE BARELY CHANGED THE TREASURY'S BENCHMARK 30YEAR ISSUE SLIPPED FRACTIONALLY TO YIELD 667 WHILE SHORTERMATURITY GOVERNMENT ISSUES ROSE MARGINALLY THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16885 MARKS AND 10650 YEN COMPARED WITH 16960 MARKS AND 10625 YEN MONDAY 9306300129 930630 COX CABLE INVESTS IN STARSIGHT ATLANTA COX CABLE COMMUNICATIONS A DIVISION OF COX ENTERPRISES INC SAID IT IS MAKING AN EQUITY INVESTMENT IN STARSIGHT TELECAST INC AN ONSCREEN INTERACTIVE TELEVISION GUIDE SERVICE COX WILL HOLD AN 84 EQUITY INTEREST AND DISTRIBUTE AND MARKET STARSIGHT TO 80 OF ITS 17 MILLIONCUSTOMER BASE STARSIGHT IS A PRIVATELY HELD COMPANY BASED IN FREMONT CALIF 9306300128 930630 ECONOMY SENATE TAX BILL DRAWS CRITICISM FROM PRESIDENT HIGHER CAPITALGAINS RATE ON WEALTHY TAXPAYERS IS ONE OF ITEMS CITED BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON SAID THE SENATE'S ATTEMPT TO RAISE THE CAPITALGAINS TAX RATE FOR THOSE WITH INCOMES ABOVE 250000 IS NOT WELLADVISED MR CLINTON IN A SPEECH TO THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS GAVE THE MOST COMPLETE LISTING OF HIS PRIORITIES SINCE THE SENATE PASSED ITS VERSION OF THE TAX BILL SIGNALING THE MEASURES HE IS LIKELY TO FIGHT FOR IN THE HOUSESENATE CONFERENCE AFTER WEEKS OF EMPHASIZING THE BILL'S DEFICITCUTTING FEATURES MR CLINTON SHIFTED GEARS AND EMPHASIZED SEVERAL OF THE INVESTMENT PROVISIONS ALL OF WHICH WERE PRIORITIES WHEN HIS BUDGET PACKAGE WAS UNVEILED IN FEBRUARY BUT WHICH LOST LUSTER WHEN THE SENATE FOCUSED ON SPENDING CUTS THE PRESIDENT FOR INSTANCE SAID HE AGREED WITH THE HOUSE DECISION TO INCREASE THE ANNUAL TAX WRITEOFF FOR EQUIPMENT TO 25000 FROM 10000 A MEASURE SUPPORTED BY MANY SMALL BUSINESSES THE SENATE RAISED THE WRITEOFF TO 20500 THE PRESIDENT SAID THAT IF THE WRITEOFF IS RAISED TO 25000 HUNDREDS OF THOUSANDS OF BUSINESSES IN THIS COUNTRY MIGHT BE ABLE TO HIRE ONE MORE PERSON MIGHT BE ABLE TO GET THEIR INCOMES UP BY BUYING ANOTHER PIECE OF EQUIPMENT HE ALSO SUPPORTED THE CHANGE IN THE ALTERNATIVEMINIMUMTAX CALCULATIONS A MOVE HE SAID IS SUPPORTED BY LARGE BUSINESSES AND WOULD ENCOURAGE PEOPLE TO INVEST IN MORE PLANT AND EQUIPMENT TO BECOME MORE PRODUCTIVE MOREOVER MR CLINTON ALSO ENDORSED A HOUSEPASSED PLAN TO CUT THE CAPITALGAINS TAX IN HALF FOR INVESTMENTS IN CERTAIN SMALL BUSINESSES A PROPOSAL THE SENATE REJECTED THIS WAS DESIGNED TO GET A BUNCH OF NEW VENTURE CAPITAL AND PRIVATE CAPITAL INTO THE REAL JOB GENERATORS OF THIS ECONOMY HE SAID THE HOUSE ACCEPTED MR CLINTON'S PROPOSAL TO RAISE THE TOP MARGINAL TAX RATE NOW AT 31 TO 396 FOR COUPLES AND INDIVIDUALS WITH TAXABLE INCOMES ABOVE 250000 AND TO LEAVE THE TOP CAPITALGAINS TAX RATE AT 28 THE SENATE WORRIED THAT THE BIG GAP BETWEEN THE TAX RATES ON CAPITALGAINS AND OTHER INCOME WOULD REVIVE THE TAXSHELTER INDUSTRY VOTED TO LIFT THE CAPITALGAINS TAX RATE TO 308 FOR THESE WELLOFF TAXPAYERS YESTERDAY PRESIDENT CLINTON ALSO PUSHED TO MAKE PERMANENT THE RESEARCHANDDEVELOPMENT TAX CREDIT THAT HAS ALREADY EXPIRED THE SENATE BILL EXTENDS IT TEMPORARILY IF THESE ITEMS ARE INCLUDED IN THE BUDGET BILL HOWEVER THE PRESIDENT WILL HAVE TO FIND WAYS TO PAY FOR THEM WHILE STICKING WITH HIS GOAL OF REDUCING THE DEFICIT BY 500 BILLION OVER FIVE YEARS MR CLINTON ALSO SUPPORTED THE CHANGES IN THE PASSIVE LOSS PROVISIONS ON REAL ESTATE AND THE EXTENSION OF THE TAX DEDUCTION THAT SELFEMPLOYED PEOPLE CAN TAKE FOR HEALTHINSURANCE PREMIUMS A MENTION THAT WON APPLAUSE FROM THE GROUP FURTHER MR CLINTON OFFERED A PASSIONATE PLEA FOR THE SOCALLED EMPOWERMENT ZONES ASSERTING THAT IT WOULD TEST BOTH DEMOCRATIC AND REPUBLICAN RHETORIC ABOUT USING THE PRIVATE SECTOR TO REVITALIZE THE DISTRESSED AREAS OF OUR COUNTRY BUT MUCH OF WHAT MR CLINTON LIKED WAS IN THE HOUSE VERSION OF THE BILL HE DIDN'T TALK SO GLOWINGLY OF THE SENATE'S WORK HE NOTED FOR INSTANCE THAT THE SENATE RAISED THE SIZE OF THE TAX WRITEOFFS FOR SMALLBUSINESS EQUIPMENT TO ONLY 20500 ELIMINATED THE LOWER SMALLBUSINESS CAPITALGAINS TAX AND MADE TEMPORARY THE RESEARCHANDDEVELOPMENT TAX CREDIT PERHAPS ACKNOWLEDGING THE BITTER FIGHT AHEAD OVER THE BALANCE BETWEEN TAXES AND INVESTMENTS THAT WILL APPEAR IN THE FINAL BILL PRESIDENT CLINTON RESTATED HIS BASIC GOALS FOR THE LEGISLATION WE RAISED TAX RATES HE SAID BUT WE TRIED TO FIND WAYS FOR PEOPLE WHO'VE BEEN SUCCESSFUL WHO HAVE MONEY TO LOWER THEIR TAXES BUT ONLY IF THEY INVESTED IN THINGS DESIGNED TO GROW THE ECONOMY CREATE JOBS AND EXPAND OPPORTUNITY FOR ALL AMERICANS 9306300127 930630 BUSINESS BRIEF AMOCO CORP CONCERN'S POLANDBASED UNIT SIGNS COALEXPLORATION PACT AMOCO POLAND LTD WARSAW A UNIT OF CHICAGOBASED OIL COMPANY AMOCO CORP SAID IT SIGNED AN AGREEMENT WITH POLAND'S MINISTRY OF ENVIRONMENTAL PROTECTION TO EXPLORE FOR COALBED METHANE IN SOUTH CENTRAL POLAND THE AGREEMENT INVOLVES DRILLING A MINIMUM OF 15 WELLS IN THE CONTRACT AREA DURING THE NEXT THREE YEARS EXPECTED TO COST ABOUT 10 MILLION AMOCO WILL EXPLORE FOR METHANE GAS TRAPPED IN COAL SEAMS ON A 120000ACRE TRACT IN THE UPPER SILESIAN COALPRODUCTION REGION AMOCO SAID IT WILL FUND ALL EXPLORATION COSTS AND THE POLISH GOVERNMENT WILL HAVE THE OPTION TO ACQUIRE AN INTEREST IN THE PROJECT IF COMMERCIAL PRODUCTION IS ESTABLISHED THE AGREEMENT IS CONTINGENT ON THE COUNTRY'S APPROVAL OF CERTAIN TAX AND FOREIGN EXCHANGE ISSUES 9306300126 930630 WHO'S NEWS JWP INC'S DWYER QUITS AS CHAIRMAN KOSNIK IS SUCCESSOR BY JYOTI THOTTAM STAFF REPORTER OF THE WALL STREET JOURNAL RYE BROOK NY JWP INC SAID ITS CHAIRMAN RESIGNED AND THE COMPANY GAVE ITS RECENTLY HIRED PRESIDENT THE RESPONSIBILITY OF RESTRUCTURING THE COMPANY'S 485 MILLION OF DEBT ANDREW T DWYER 44 YEARS OLD STEPPED DOWN AS CHAIRMAN OF THE TECHNICAL SERVICES COMPANY BUT WILL CONTINUE AS A DIRECTOR HE WILL BE SUCCEEDED BY EDWARD F KOSNIK 47 WHO WAS NAMED JWP PRESIDENT AND CHIEF EXECUTIVE OFFICER IN APRIL A SPOKESWOMAN FOR THE COMPANY SAID MR KOSNIK WAS NAMED CHAIRMAN FOR HIS VERY STRONG OPERATIONAL AND FINANCIAL SKILLS THE BOARD AND ANDY FELT THAT HE WAS THE BEST PERSON TO WORK THROUGH THIS SITUATION MR KOSNIK HAS BEEN WITH JWP SINCE LAST NOVEMBER WHEN HE WAS NAMED CHIEF FINANCIAL OFFICER BEFORE THAT HE WAS PRESIDENT AND CHIEF EXECUTIVE OF SPRAGUE TECHNOLOGIES INC AN ELECTRONICS COMPONENTS MAKER JWP MADE MAJOR ACQUISITIONS IN THE 1980S BOOSTING ANNUAL REVENUE TO ABOUT 4 BILLION BY MID1992 BY EXPANDING INTO INFORMATION SERVICES ENERGY AND ENVIRONMENTAL SERVICES AND ELECTRONIC SYSTEMS BUT THE STRATEGY BACKFIRED WHEN COMPUTER PRICE WARS AND A SLUMP IN COMMERCIAL CONSTRUCTION LEFT IT HEAVILY IN DEBT JWP HAS BEEN SELLING OFF THE ACQUISITIONS STEADILY SINCE LAST YEAR AND PLANS TO RETURN TO ITS 2 BILLION CORE ELECTRICAL AND MECHANICAL BUSINESS THE COMPANY HAS BEEN OUT OF COMPLIANCE WITH CERTAIN LOAN COVENANTS SINCE LAST NOVEMBER WHEN IT ANNOUNCED A THIRDQUARTER RESTRUCTURING CHARGE OF 135 MILLION JWP HAD A NET LOSS LAST YEAR OF ABOUT 500 MILLION JWP SAID IT IS NEGOTIATING A DEBT RESTRUCTURING WITH REPRESENTATIVES OF BANKS PARTICIPATING IN ITS REVOLVING CREDIT AGREEMENT AND HOLDERS OF SENIOR LONGTERM NOTES THE PLAN WOULD PROBABLY INVOLVE AN EXCHANGE OF A SUBSTANTIAL AMOUNT OF ITS DEBT FOR NEWLY ISSUED JWP EQUITY SECURITIES THE COMPANY SAID IF IMPLEMENTED THE RESTRUCTURING WOULD SUBSTANTIALLY DILUTE THE INTERESTS OF EXISTING JWP STOCKHOLDERS IT ADDED IF THE COMPANY CONVERTS ALL OF ITS DEBT TO EQUITY EXISTING SHAREHOLDERS WOULD BE LEFT WITH ONLY ABOUT 20 OF THE SHARES SAID JAMES G JOYCE AN ANALYST AT FIRST ALBANY CORP IN ALBANY NY BUT RESTRUCTURING THE DEBT IS PREFERABLE TO DECLARING BANKRUPTCY HE ADDED ANOTHER PROBLEM FOR JWP INVOLVES ALLEGATIONS MADE IN A SHAREHOLDER LAWSUIT CONFIRMED BY ITS FORMER PRESIDENT DAVID L SOKOL OF ACCOUNTING IMPROPRIETIES THE SPOKESWOMAN SAID JWP WHICH DENIES THE ALLEGATIONS HAS ANSWERED THE CHARGES AND AWAITS FURTHER COURT ACTION IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE JWP SHARES WERE QUOTED AT 150 UNCHANGED 9306300125 930630 MAVROULES GETS FINE AND PRISON SENTENCE FOR ACCEPTING GIFTS BOSTON FORMER US REP NICHOLAS MAVROULES WAS SENTENCED TO 15 MONTHS IN FEDERAL PRISON AND FINED 15000 FOR ACCEPTING ILLEGAL GIFTS AND FAILING TO REPORT THEM ON CONGRESSIONAL DISCLOSURE AND INCOME TAX FORMS MR MAVROULES WHO SERVED SEVEN TERMS IN CONGRESS PLEADED GUILTY IN APRIL TO 15 OF 17 COUNTS OF A FEDERAL INDICTMENT ADMITTING HE ACCEPTED THE FREE USE OF A LEASED CAR AND A LOWRENT BEACH HOUSE I CERTAINLY APOLOGIZE TO MY FAMILY AND THEY HAVE ENDURED ENORMOUS ENORMOUS PAIN I APOLOGIZE TO MY FRIENDS WHO HAVE BEEN LOYAL STRONG VERY STEADFAST MR MAVROULES TOLD THE JUDGE ADDING I TOTALLY ACCEPT RESPONSIBILITY FOR MY ACTIONS HE WAS ORDERED TO BEGIN HIS SENTENCE JULY 20 AT AN UNDISCLOSED PRISON THE TERM WAS THE MINIMUM ALLOWED UNDER FEDERAL GUIDELINES 9306300124 930630 LEISURE & ARTS THE GALLERY BIENNALE NEWS ON THE RIALTO BY FREDERIKA RANDALL VENICE IT MAY HAVE BEEN FUN FOR THEM THE WILLOWY WEARERS OF ARMANI THE SPEAKERS OF FOREIGN TONGUES BUT THE 45TH VENICE BIENNALE INTERNATIONAL ART EXPOSITION SEEMED TO PROVOKE THEMEPARK ANXIETY FOR MANY ITALIANS WHO ATTENDED THE PREVIEW AND INAUGURATION EARLIER THIS MONTH THEY TRAVELED ACROSS A COUNTRY STUNNED BY JUDICIAL SCOURGE AND ELECTORAL SHOCK TO TOUCH DOWN IN A HEADY FUN FAIR WHERE ARTISTS STROVE TO GIVE MEANING TO CURATOR ACHILLE BONITO OLIVA'S LEADING CONCEPT OF CULTURAL NOMADISM WITH COOLING ROWS OF LIVE GREENHOUSE CUCUMBERS OR TIGHTLY CROPPED SHOTS OF GENITALS SIGNED OLIVIERO TOSCANI OF BENETTON ALTHOUGH THERE WAS AN ATTRACTIVE VARIETY AMONG THE OFFICIAL NATIONAL ENTRIES AS WELL AS OTHER INSTALLATIONS AND PERFORMANCES THERE WAS LITTLE THAT SEEMED TO MATCH THE MOOD OF URGENCY THE VISITORS HAD BROUGHT WITH THEM HANS HAACKE'S PRIZEWINNING GERMAN ENTRY WAS AN EXCEPTION THAT PLEASED BOTH PUBLIC AND JURY AT THE PAVILION'S ENTRANCE A PHOTO MARKED BIENNALE DI VENEZIA 1934 SHOWED HITLER ESCORTED BY FASCIST OFFICIALS INSIDE THE WHITEWASHED HALL WAS BARE APART FROM THE WORD GERMANIA SPELLED OUT ACROSS THE WALL AND A RUBBLE OF BROKEN FLOOR TILES THAT PRODUCED A HAUNTING OTHERWORLDLY MUSIC OF CLANKS AND HOWLS WHEN WALKED UPON ON THE OTHER HAND IT WAS HARD TO HEAR MORE THAN A ONENOTE MESSAGE IN THE FRENCH NATIONAL EXHIBIT JEANPIERRE RAYNAUD'S ROOM TILED IN THOUSANDS OF BLACKANDWHITE SQUARES WITH A SKULL PATTERN AND THE HANGINGBED COMPOSITION BY SPAIN'S ANTONI TAPIES WINNER OF THE JURY'S ARTIST'S PRIZE ALONG WITH BRITAIN'S RICHARD HAMILTON SEEMED A BIT MORE LIFELESS THAN EXPECTED WHILE MANY SANK GRATEFULLY INTO THE GARDEN CHAIRS OF ISRAELI ARTIST AVITAL GEVA'S GREENHOUSE COOL WITH ARTIFICIAL RAINFALL AND LUSH GREEN VEGETABLES AND GRASSES FEW WERE READY TO ALLOW THIS GREEN AGE CANDIDATE INTO THE PANTHEON OF THE DUCHAMPIAN MACHINE AGE IT WAS A SHOW IN WHICH MACABRE AND SHOCK IMAGES OFTEN PREVAILED STARTING WITH THE APERTO 93 SECTION INTENDED FOR YOUNG ARTISTS AND FRESH IDEAS WHERE DAMIEN HIRST SAWED A COW IN HALF VERTICALLY AND SET IT AFLOAT IN FORMALDEHYDE AND ANDRES SERRANO THE NOTORIOUS CREATOR OF PISS CHRIST OFFERED CHILL PHOTOGRAPHS FROM THE MORGUE THESE COULD MAKE IT HARD TO FOCUS ON GENTLER IMPRESSIONS AS AN EXAMPLE LOUISE BOURGEOIS'S MYSTERIOUS BLACKSTONE AND WHITEGLOBED VENTOUSE AND HER CELL EYES AND MIRRORS TENDED TO BE OVERSHADOWED BY CRUELER OR MORE EXPLICIT BODY IMAGES SUCH AS HER ARCH OF HYSTERIA YET THE WHOLE SEEMED TO LACK INCISIVENESS ITS STRONG STATEMENTS FLATTENED AND REDUCED TO CARICATURE WHEN COMPARED TO THE STRONGER VISUALS OF THE WAR JUST ACROSS THE ADRIATIC AND OF BOMBINGS AT HOME AVAILABLE EVERY NIGHT ON TV SOME QUESTIONED WHETHER MR BONITO OLIVA'S POTPOURRI OF SCHOOLS AND CHOICES REPRESENTED DEMOCRATIC DIVERSITY OR CURATORIAL FAILURE AN UNWILLINGNESS TO ASSERT ANY AESTHETIC DIRECTION FOR THE VISUAL ARTS IN 1993 FOR THE FINANCIAL DAILY IL SOLE 24 ORE THE SHOW'S PLURALITY UNDERMINED ARTISTS BY FAILING TO ESTABLISH CRITICAL GUIDELINES THAT COULD HELP ARREST THE ART MARKET'S PLUNGE NEVERTHELESS MOST VISITORS MANAGED TO FIND SOMETHING OF INTEREST AMONG THE LONG LIST OF SIDE EXHIBITS AND MUSICAL FILM AND PERFORMANCE EVENTS ACCOMPANYING THE KICKOFF OF THE BIENNALE WHICH RUNS THROUGH OCT 10 ONE SHOW VISITORS WILL NOT WANT TO MISS IS REFIGURATION AT THE MUSEO CORRER 33 DRAMATIC PAINTINGS BY FRANCIS BACON INCLUDING EIGHT LARGE TRIPTYCHS DONE BETWEEN 1945 AND 1988 DIRECTED BY CURATOR DAVID SYLVESTER PETER GREENAWAY'S INSTALLATION WATCHING WATER IN PALAZZO FORTUNY FOCUSES ON THE FILMMAKER'S WATER FILMS OF WHICH DEATH IN THE SEINE MAY BE THE MOST INTERESTING MR GREENAWAY HAS SUBTLY APPROPRIATED FABRIC AND SET DESIGNER MARIANO FORTUNY'S HOUSE AND STUDIO BY INSTALLING WONDERFUL LIGHTING THAT MAKES THE BOHEMIAN ROOMS SPUTTER AND FLICKER LIKE MAGIC LANTERNS ROBERT WILSON WHO OFFERED A GRAVE IRONIC LECTURE RATHER MISLEADINGLY BILLED AS A PERFORMANCE DISAPPOINTED THE EVENINGGOWNED PORTION OF HIS AUDIENCE BUT CHARMED OTHERS AS HE TOLD HOW HIS THEATRICAL SENSIBILITY HAD BEEN SHAPED BY RAYMOND A DEAFMUTE BOY AND CHRISTOPHER A YOUTH WITH LEARNING DISABILITIES MR WILSON'S INSTALLATION MEMORY/LOSS IN THE GRANAI ON GIUDECCA ISLAND FEATURED A CLAY FLOOR THAT MANY COULD NOT TEAR THEIR BARE FEET AWAY FROM A NEARBY INSTALLATION CELEBRATES JOHN CAGE HIS LATE PROJECT WILD EDIBLE DRAWINGS CONSISTS OF ROUGH SEEDY SCRATCHY AND COMPLETELY RECYCLABLEBYEATING PAPERS MADE OF CATTAIL MILKWEED KUDZU JOE PYE WEED AND OTHER WILDPLANT FIBERS ASSEMBLED ACCORDING TO THE ALEATORY DICTATES OF THE ICHING A SERIES OF CONCERTS IN HONOR OF MR CAGE INCLUDES CAGE PERFORMANCE PIECES EXECUTED BY MARGARET LENG TAN ELSEWHERE ANDRES GARCIA CUBO DIRECTED THE INTRIGUING FLAMENCO Y KATHAK A DANCE PERFORMANCE ILLUSTRATING HOW FLAMENCO'S GESTURES MUSIC AND EVEN COSTUMES MIGRATED FROM NORTHERN INDIA THROUGH CENTRAL EUROPE TO ANDALUSIA AS THE BIENNALE SPUN ITS MANY OFTEN PRETENTIOUS WEBS THIS MAY HAVE BEEN THE TRUEST VERSION OF CULTURAL NOMADISM OFFERED HERE MS RANDALL IS A WRITER IN MILAN 9306300123 930630 NINE INSIDERS AT ELECTRONIC ARTS SLASH HOLDINGS NEAR STOCK'S RECORD HIGH BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NINE INSIDERS AT ELECTRONIC ARTS INC A LEADING DEVELOPER AND DISTRIBUTOR OF ENTERTAINMENT SOFTWARE HAVE SOLD SUBSTANTIAL AMOUNTS OF COMPANY STOCK IN RECENT MONTHS NEAR THE STOCK'S RECORD HIGH FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION SHOW THE NINE INSIDERS SOLD A TOTAL OF 252597 SHARES OR AN AVERAGE 20 OF THEIR HOLDINGS AT AN AVERAGE PRICE OF 31875 A SHARE DURING APRIL AND MAY SEC DATA SHOWS THE SALES BY INSIDERS AT THE SAN MATEO CALIF COMPANY DURING THE TWOMONTH PERIOD AMOUNT TO THREEFOURTHS THE NUMBER OF SHARES SOLD FOR ALL OF LAST YEAR IN OPENMARKET NONOPTIONRELATED ACTIVITY ACCORDING TO THE FILINGS LAST YEAR FOUR INSIDERS SOLD 337532 SHARES IN NONOPTIONRELATED ACTIVITY EARLY THIS MONTH TWO OF THE NINE INSIDERS SOLD AN ADDITIONAL COMBINED 22500 SHARES AT AN AVERAGE 37 A SHARE THE SEC FILINGS INDICATE SINCE THOSE LATEST SALES THE COMPANY'S STOCK HAS RETREATED IN OVERTHECOUNTER ACTIVITY CLOSING YESTERDAY AT 2975 DOWN 75 CENTS WHENEVER WE SEE MOUNTING INSIDER SALES INTO A RISING STOCK PRICE OUR LEVEL OF CONCERN GROWS SAID BOB GABELE PRESIDENT OF CDA/INVESTNET A FORT LAUDERDALE FLA COMPANY THAT TRACKS INSIDER ACTIVITY IT'S USUALLY AN INDICATION THAT THE STOCK PRICE IS GETTING PROGRESSIVELY AHEAD OF ITS FUNDAMENTALS DAVID COLEMAN AN ANALYST WHO TRACKS INSIDER BUYING AND SELLING FOR VICKERS STOCK RESEARCH CORP IN WASHINGTON DC SAID INSIDER DISPOSALS AT THE COMPANY ARE FLASHING A WARNING TO INVESTORS HE SAID THAT IF OPTIONRELATED SALES ARE INCLUDED IN OPENMARKET INSIDER ACTIVITY AT THE COMPANY THEN THE RATE OF SELLING BY ELECTRONIC ARTS INSIDERS HAS MORE THAN DOUBLED FROM LAST YEAR THE PRICE AT WHICH INSIDERS SELLING IS ALSO SOMETHING TO WATCH MR COLEMAN SAID MANY SOLD NEAR THE ALLTIME HIGH OF 3850 AND THE SHARES HAVE SINCE COME DOWN AT BEST THIS MEANS THE SHARES HAVE HIT A PLATEAU HE SAID ELECTRONIC ARTS HAS BEEN A HOT PERFORMER IN OVERTHECOUNTER ACTIVITY AS MARKET ATTENTION HAS FOCUSED ON THE EARNINGS POTENTIAL OF COMPANIES WITH A STRONG FOOTHOLD IN THE BURGEONING INTERACTIVE COMMUNICATIONS MARKET INDEED ANALYSTS SAY THE COMPANY HAS FOUND A SUCCESSFUL NICHE IN DEVELOPING AND MARKETING SOFTWARE FOR ACTIONORIENTED GAME CARTRIDGES SUCH AS NHL HOCKEY THAT ARE PLAYED ON A VARIETY OF HARDWARE PLATFORMS INCLUDING VIDEOGAME SYSTEMS MADE BY JAPAN'S SEGA ENTERPRISES INC AND NINTENDO LTD'S NINTENDO OF AMERICA UNIT SUCH PERCEPTIONS HAVE HELPED PUSH THE COMPANY'S PRICEEARNINGS RATIO ON THE BASIS OF TRAILING EARNINGS TO JUST UNDER 50 AT THE CLOSE OF TRADING YESTERDAY IT STOOD AT 48 THE STOCK ALSO IS CURRENTLY TRADING AT A LOFTY 30 TIMES 1994 ESTIMATES THE MULTIPLE IS HIGH BUT THE GROWTH PROSPECTS ARE THERE TO JUSTIFY THEM SAYS STAN MCKEE CHIEF FINANCIAL OFFICER OF ELECTRONIC ARTS IN A TELEPHONE INTERVIEW MR MCKEE SAID MOST OF THE INSIDER SALES WERE AIMED AT RAISING CASH TO PAY TAXES ON THE EXERCISE OF NONQUALIFIED OPTIONS LATE LAST YEAR HE SAID IT WASN'T UNUSUAL FOR EXECUTIVES AT SILICON VALLEY COMPANIES WHERE EXECUTIVE COMPENSATION IS TYPICALLY WRAPPED UP IN A PACKAGE OF STOCK GRANTS BONUSES AND BASE SALARY TO SELL OFF SOME OF THEIR HOLDINGS JUST TO BE ABLE TO DIVERSIFY ANALYSTS AT DONALDSON LUFKIN & JENRETTE DOWNGRADED THE STOCK EARLY THIS MONTH I THINK THEIR EARNINGS GROWTH HAS BEEN OUTSTANDING OVER THE PAST TWO YEARS SAID SCOTT M SMITH THE DLJ ANALYST WE RECENTLY HOWEVER LOWERED OUR RATING ON THE COMPANY FROM VERY ATTRACTIVE TO MODERATELY ATTRACTIVE BECAUSE OUR CONTACTS WITH RETAILERS INDICATED THAT SALES OF TWO OF THEIR TITLES WERE BELOW EXPECTATIONS THE TWO TITLES ARE BULLS VS BLAZERS A BASKETBALL GAME DESIGNED FOR THE SEGA GENESIS VIDEOGAME MACHINE AND STRIKE COMMANDER AN AIRCOMBAT GAME FOR USE ON PERSONAL COMPUTERS MR SMITH SAID HE REMAINS GENERALLY BULLISH ON THE COMPANY THE COMPANY HAS A BROAD ARRAY OF TITLES IT ALSO HAS A STRONG FRANCHISE PARTICULARLY IN SPORTS GAMES AND HAS TREMENDOUS TECHNOLOGY WE THINK THE KEY WILL BE HOW THE COMPANY'S NEW GAMES WILL SELL IN THE UPCOMING HOLIDAY SEASON HE SAID THE DLJ ANALYST SAID HE EXPECTS THE COMPANY TO REPORT A 46 RISE IN FISCAL FIRSTQUARTER NET INCOME TO 7 MILLION OR 14 CENTS A SHARE FROM 48 MILLION OR 10 CENTS A SHARE A YEAR EARLIER HE SAID HE EXPECTS REVENUE FOR THE QUARTER TO JUMP TO 79 MILLION FROM 501 MILLION BETTY LYTER AN ANALYST WITH SAN FRANCISCO'S MONTGOMERY SERCURITIES IS ALSO LOOKING FOR NET INCOME OF 7 MILLION BUT ON REVENUE OF 78 MILLION THERE'S CONTINUED LIKELIHOOD OF UPSIDE EARNINGS POTENTIAL DRIVEN BY THE STRONG FLOW OF NEW TITLES SHE SAID BUT I'D RATHER BUY THE STOCK BELOW 30 AND WATCH IT APPRECIATE WITH A PRICE TARGET OF 36 THAT PRICE TARGET COULD GO HIGHER AS EARNINGS EXPECTATIONS ARE EXCEEDED 9306300122 930630 MARKETING & MEDIA VIOLENCE ADVISORY SET FOR UNVEILING BY FOUR NETWORKS BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE FOUR MAJOR BROADCAST NETWORKS PRESSURED BY WASHINGTON TO CURB VIOLENT PROGRAMMING ARE EXPECTED TO ANNOUNCE A NEW AGREEMENT TODAY FOR ISSUING VIOLENCE ADVISORIES PRECEDING THEIR PROGRAMS VIOLENCE WARNINGS ALSO WILL BE INCREASED IN WRITTEN AND ONAIR PROMOTIONAL MATERIAL ACCORDING TO PEOPLE FAMILIAR WITH THE PACT WHICH IS EXPECTED TO BE ANNOUNCED IN WASHINGTON TODAY BUT THE NETWORKS' PLAN MAY STOP SHORT OF THE MORE EXPLICIT VIOLENCE RATINGS SYSTEM THAT SOME LAWMAKERS HAD ADVOCATED THE NETWORKS OWNED BY CAPITAL CITIES/ABC INC CBS INC GENERAL ELECTRIC CO AND NEWS CORP AS WELL AS THE HOLLYWOOD PRODUCTION COMMUNITY HAVE COME UNDER INCREASING PRESSURE FROM CONGRESS TO CUT BACK ON VIOLENT PROGRAMMING OR AT LEAST GIVE VIEWERS A WAY TO SCREEN IT OUT IF THEY CHOOSE THE BROADCASTERS HAVE GRADUALLY EMBRACED RACIER PROGRAMMING IN RECENT YEARS IN PART TO KEEP UP WITH THEIR RIVALS ON CABLE WHERE EVEN MORE EXPLICIT SCENES OF SEX AND VIOLENCE PLAY WITHOUT RAISING MUCH CRITICISM BUT AS CRITICISM IN WASHINGTON HAS MOUNTED THE NETWORKS HAVE BEGUN PUBLICLY BACKING OFF APPARENTLY IN THE HOPES OF PREEMPTING THE IMPOSITION OF LEGALLY MANDATED RESTRICTIONS THAT HAS LED TO SOMETIMES CONTRADICTORY STRATEGIES THE ABC NETWORK RECENTLY ANNOUNCED A DEAL FOR 10 FAMILYORIENTED MOVIES EVEN AS IT HAS PICKED UP A NEW SHOW FOR NEXT FALL NYPD BLUE WHICH HAS ALREADY STIRRED UP CONTROVERSY FOR ITS VIOLENT CONTENT EVEN BEFORE AIRING UNDER A BILL PASSED IN LATE 1990 THE FOUR NETWORKS WERE GIVEN A THREEYEAR ANTITRUST EXEMPTION TO HAMMER OUT A MUTUAL APPROACH TO THE ISSUE THE NEW AGREEMENT WILL BE ANNOUNCED TODAY AT A WASHINGTON NEWS CONFERENCE SPONSORED BY TWO OF THE HIGHERPROFILE TELEVISION CRITICS SEN PAUL SIMON D ILL AND REP EDWARD MARKEY D MASS 9306300121 930630 EXECUTIVE WOMEN MAKE MAJOR GAINS IN PAY AND STATUS BUT COMPENSATION STILL TRAILS THAT OF MEN BY ONETHIRD MANY HAVE HUSBANDS KIDS BY SUE SHELLENBARGER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK EXECUTIVE WOMEN IN LARGE COMPANIES HAVE MADE BIG GAINS IN PAY AND JOB STATUS IN THE PAST 10 YEARS AND THEY ARE FAR MORE LIKELY TODAY TO BE MARRIED AND HAVE CHILDREN ACCORDING TO A NEW SURVEY BY KORN/FERRY INTERNATIONAL AN EXECUTIVE SEARCH FIRM AND THE UNIVERSITY OF CALIFORNIA LOS ANGELES BUT MEN STILL OUTNUMBER WOMEN AT THE EXECUTIVE VICE PRESIDENT LEVEL BY NEARLY 3 TO 1 AND EXECUTIVE WOMEN'S AVERAGE COMPENSATION STILL LAGS BEHIND THAT OF MEN BY MORE THAN ONETHIRD ACCORDING TO THE SURVEY OF 439 TOPRANKING WOMEN AT THE NATION'S LARGEST INDUSTRIAL AND SERVICE COMPANIES ALSO 59 OF THE WOMEN SURVEYED REPORTED EXPERIENCING SEXUAL HARASSMENT AT SOME POINT IN THEIR CAREERS MORE THAN ONETHIRD CONFRONTED THE HARASSER BUT ONLY 14 REPORTED THE ALLEGED INCIDENT TO A SUPERVISOR OR FILED A LAWSUIT THE STUDY SHOWS A MARKED CHANGE IN WOMEN MANAGERS' PERSONAL AND FAMILY LIVES SINCE 1982 WHEN A WIDELY NOTED KORN/FERRY STUDY SHOWED THAT SENIOR WOMEN EXECUTIVES USUALLY FOUND IT NECESSARY TO PASS UP MARRIAGE AND CHILDREN IN THAT STUDY ONLY 49 OF TOP FEMALE EXECUTIVES SURVEYED WERE MARRIED AND ONLY 39 HAD CHILDREN THE 1992 SURVEY SHOWS THAT 69 ARE MARRIED TODAY AND 57 HAVE AT LEAST ONE CHILD CAREERS AND FAMILIES ARE NOT MUTUALLY EXCLUSIVE FOR TODAY'S SENIOR WOMEN EXECUTIVES SAID RICHARD M FERRY KORN/FERRY CHAIRMAN AND CHIEF EXECUTIVE THE SURVEY SUGGESTS WOMEN PAY A HIGH PRICE FOR COMBINING CAREER AND FAMILY HOWEVER WHEN CAREER AND PERSONAL OR FAMILY DUTIES CLASH THE WOMEN MANAGERS CHOOSE IN FAVOR OF THEIR CAREERS ABOUT 60 OF THE TIME LESS THAN HALF SAID THEY HAVE ADEQUATE TIME FOR SPOUSE OR CHILDREN AND 77 WANT TO RETIRE BEFORE AGE 65 COMPARED WITH 30 OF MEN THERE'S A TREMENDOUS AMOUNT OF BURNOUT AMONG HIGHRANKING WOMEN SAID CAROL SCOTT ACTING DEAN OF THE ANDERSON GRADUATE SCHOOL OF MANAGEMENT AT UCLA WHO DIRECTED THE STUDY MORE THAN 90 SAID THE GLASS CEILING IS STILL INTACT AND BEING A WOMAN WAS CITED BY MORE WOMEN THAN ANY OTHER ISSUE AS THE GREATEST SINGLE CAREER OBSTACLE THEY HAD TO OVERCOME MOST OF THE WOMEN SAID IT WILL TAKE ANOTHER DECADE TO ACHIEVE PARITY IN TOP CORPORATE JOBS WOMEN EXECUTIVES' AVERAGE TOTAL COMPENSATION ROSE TO 187000 IN 1992 FROM 92000 IN 1982 WITH MOST AT THE VICE PRESIDENT LEVEL AND ABOVE BUT WHILE WOMEN WORK JUST AS LONG AS THEIR MALE COUNTERPARTS ABOUT 56 HOURS A WEEK THEIR AVERAGE PAY IS ONLY TWOTHIRDS THE 289000 RECEIVED BY MEN BASED ON A COMPARABLE 1989 KORN/FERRY SURVEY 9306300120 930630 TECHNOLOGY WHIRLPOOL WINS PRIZE OF 30 MILLION TO BUILD EFFICIENT REFRIGERATOR BENTON HARBOR MICH WHIRLPOOL CORP CAPTURED THE 30 MILLION PRIZE IN A CONTESTSPONSORED BY 24 UTILITIES TO DEVELOP A SUPEREFFICIENT AND ENVIRONMENTALLY FRIENDLY REFRIGERATOR THE APPLIANCE MAKER SAID IT WILL USE THE MONEY FOR OUTLAYS IT MADE IN DEVELOPING THE REFRIGERATOR THE PRIZE ALSO WILL HELP PAY FOR THE MOREEXPENSIVE SPECIAL PARTS USED IN THE UNITS WHIRLPOOL SAID THE WINNERTAKEALL CONTEST CALLED FOR THE BEST DESIGN OF AN APPLIANCE THAT WOULD CONTAIN NO OZONEDEPLETING CHLOROFLUOROCARBONS KNOWN AS CFCS AND WOULD BE AT LEAST 25 MORE ENERGYEFFICIENT THAN CURRENT FEDERAL GUIDELINES REQUIRE BY ENCOURAGING ENERGY EFFICIENCY THE SPONSORING UTILITIES HOPE TO SLOW THE NEED FOR COSTLY NEW POWER PLANTS FOURTEEN COMPANIES ORIGINALLY JOINED THE COMPETITION A WHIRLPOOL SPOKESWOMAN SAID THE COMPANY'S CURRENT MODEL REFRIGERATORS USE ABOUT THE SAME ENERGY AS A 100WATT LIGHT BULB LEFT ON CONTINUOUSLY THE SUPEREFFICIENT VERSION USES ABOUT THE SAME POWER AS A 75WATT BULB SHE SAID THE UTILITYSPONSORED ENERGY REDUCTION PROGRAM RUNS FROM 1994 TO 1997 AND WHIRLPOOL WILL RECEIVE ITS PRIZE AS IT BRINGS THE REFRIGERATOR TO THE MARKET THE COMPANY SAID IT EXPECTS TO PRODUCE 250000 OF THE SPECIAL APPLIANCES WHICH WILL BE SOLD IN AREAS SERVED BY THE 24 UTILITIES THE FIRST A 22 CUBIC FOOT MODEL WILL GO ON SALE EARLY NEXT YEAR WHIRLPOOL SAID 9306300119 930630 INSITUFORM SEEKS NEW CEO MEMPHIS TENN INSITUFORM TECHNOLOGIES INC SAID IT IS LOOKING FOR A NEW CHIEF EXECUTIVE OFFICER AS PART OF AN INTERNATIONAL EXPANSION WILL C WILLIS JR 41 YEARS OLD IS THE CURRENT CHIEF EXECUTIVE AND WILL REMAIN IN THE POSITION UNTIL A NEW ONE IS SELECTED THE COMPANY SAID MR WILLIS SAID HE WAS HIRED THREE YEARS AGO TO EXPAND THE COMPANY AND NOTES THAT UNDER HIS DIRECTION THE COMPANY WHICH DEVELOPS SEWER TUNNEL AND PIPELINE REPAIR TECHNOLOGY ACQUIRED FIVE SMALLER CONCERNS NOW THAT WE'RE AN INTERNATIONAL COMPANY THE BOARD FELT THAT THEY NEED TO HAVE A CEO WITH INTERNATIONAL EXPERIENCE WHICH I DON'T HAVE HE SAID MR WILLIS SAYS HE HAS AGREED TO HELP WITH THE EXECUTIVE SEARCH WHICH HE ANTICIPATES WILL TAKE 30 TO 90 DAYS 9306300118 930630 INTERNATIONAL CHANGE LURES CHINESE IN US BACK HOME PROFESSIONALS SEE OPPORTUNITY IN A LAND LABORERS FLEE BY JAMES MCGREGOR STAFF REPORTER OF THE WALL STREET JOURNAL BEIJING AS BOATLOADS OF BEDRAGGLED CHINESE PEASANTS WASH UP ON US SHORES EMIGRANTS FROM AN EARLIER ERA ARE BOARDING PLANES BACK TO CHINA WHILE THEY'RE HEADING IN OPPOSITE DIRECTIONS BOTH GROUPS HAVE THE SAME GOAL REACHING THE LAND OF OPPORTUNITY PEASANTS FROM COASTAL FUJIAN PROVINCE SNEAK INTO THE US BECAUSE 12HOUR SWEATSHOP DAYS FOR 2 OR 3 AN HOUR CAN LEAD TO A BETTER LIFE CHINA'S ECONOMY IS SURGING BUT MANY OF CHINA'S 118 BILLION PEOPLE ARE MISSING THE BOOM LESS NOTICED IS THE MOVEMENT OF CHINESE PROFESSIONALS FROM THE US TO CHINA THESE ARE THE CHILDREN OF THE CULTURAL REVOLUTION WHO CAME TO AMERICA A DECADE AGO EXHAUSTED BY THE VIOLENCE AND CHAOS OF THAT 196676 SPASM OF MAOIST MADNESS THE NUMBER IS DIFFICULT TO DETERMINE THE CHINESE GOVERNMENT ESTIMATES THAT 70000 CHINESE WHO WENT TO THE US TO STUDY IN THE PAST DECADE HAVEN'T RETURNED US IMMIGRATION RECORDS ARRIVALS NOT DEPARTURES BUT WALK INTO ANY FANCY RESTAURANT HOTEL OR OFFICE BUILDING IN CANTON SHANGHAI BEIJING AND OTHER LARGE CITIES AND YOU'LL BUMP INTO THESE WELLTAILORED ENGLISHSPEAKERS WHO OFTEN CARRY THE PROTECTION OF A US PASSPORT THIS ISN'T AN IDEOLOGICAL CHOICE IT IS A CHOICE OF LIFESTYLE SAYS DAVID TU A 40YEAROLD SEATTLE PROPERTY DEVELOPER AND US CITIZEN WHO HAS RETURNED TO HIS NATIVE SHANGHAI DETERMINED TO BECOME A BILLIONAIRE AMERICA CAN PROVIDE A COMFORTABLE LIFE A NICE HOUSE AND CAR BUT IF YOU WANT AN EXCITING LIFE THEN COME BACK HERE OTHERS SAY THEY ARE MOTIVATED BY THE CHANCE TO CONTRIBUTE TO SOMETHING LARGER THAN THEIR OWN LIVELIHOOD IN THE US I HAD MONEY BUT I JUST FELT THAT LIFE WAS SORT OF EMPTY NOT BEING BACK HERE SAYS KE LIN A 38YEAROLD FORMER WALL STREET BROKER WHO RETURNED TO BEIJING LATE LAST YEAR HERE WE CAN WORK ON CHANGING A SOCIETY CHANGING A COUNTRY'S FUTURE MR TU AND MS KE SAY THEY MAY BE THE LEADING EDGE OF A WAVE THE REASON IS THAT TENS OF THOUSANDS OF CHINESE CITIZENS IN THE US ARE LIKELY TO SOON GET PERMANENT US RESIDENCE CERTIFICATES TO MANY THESE GREEN CARDS SYMBOLIZE POLITICAL PROTECTION BECAUSE THEY CAN BE USED TO QUICKLY GET TO THE US SHOULD SEVERE REPRESSION RETURN TO CHINA UNLESS PRESIDENT CLINTON BY TOMORROW CERTIFIES TO CONGRESS THAT CONDITIONS IN CHINA PERMIT THEIR SAFE RETURN CHINESE NATIONALS WHO WERE IN THE US BETWEEN JUNE 4 1989 AND APRIL 11 1990 CAN APPLY FOR GREEN CARDS THE STORIES OF MR TU AND MS KE SHOW HOW DRAMATICALLY CHINA HAS CHANGED IN THE PAST DECADE MS KE'S MOTHER DIVORCED MR XU IN 1962 SO THE FAMILY COULD AVOID POLITICAL PERSECUTION SHE REMARRIED IN 1966 TO LI FU A SENIOR PARTY OFFICIAL AND MARXIST SCHOLAR A YEAR LATER HE ENDED UP ON THE WRONG SIDE OF A FACTIONAL STRUGGLE AND WAS SENT TO JAIL FOR SEVEN YEARS AFTER DENG XIAOPING CAME TO POWER BOTH MS KE'S FATHER AND STEPFATHER WERE RELEASED AND REHABILITATED HER FATHER THROUGH SOME AMERICAN FRIENDS GOT MS KE A SCHOLARSHIP TO THE UNIVERSITY OF DENVER IN 1980 MS KE WENT ON TO GET A MASTERS IN FINANCE FROM BARUCH COLLEGE IN NEW YORK CITY WHILE IN THE US SHE MARRIED XIE GUOLI WHO WENT TO THE US IN 1985 TO STUDY ENGINEERING HIS US EDUCATION CAME AFTER SEVEN YEARS OF RURAL EXILE WORKING AS A PEASANT AFTER THE TIANANMEN MASSACRE IN 1989 MS KE THOUGHT SHE WOULD NEVER RETURN TO CHINA BUT HER HUSBAND PAID A VISIT TO RELATIVES IN FEBRUARY 1992 HE CAME BACK AND SAID THAT CHINA LOOKED LIKE THE LAND OF OPPORTUNITY SHE SAYS IN AUGUST SHE LEFT HER WALL STREET JOB AND CAME BACK SHE IS NOW DIRECTOR OF CORPORATE FINANCE FOR BEIJING INVESTMENT CONSULTANTS A FINANCIAL FIRM ESTABLISHED BY A DOZEN YOUNG ECONOMISTS ACCOUNTANTS AND ATTORNEYS WHO HAVE RETURNED AFTER STUDYING ABROAD MS KE IS NOW OVERSEEING THE UNDERWRITING OF SHARES FOR SEVERAL CHINESE COMPANIES PREPARING TO LIST ON THE HONG KONG STOCK EXCHANGE I'VE ALWAYS SAID THAT CHINA SHOULD HAVE A MARKET ECONOMY SAYS MS KE AND NOW THAT CHINA HAS A DRIVING FORCE IN THAT DIRECTION I WANT TO WORK HERE AND MAKE MY DREAM COME TRUE ANOTHER REASON FOR HER RETURN SAYS MS KE IS THAT SHE HAS A TWOYEAROLD DAUGHTER AND CONSIDERS AMERICA A DANGEROUS PLACE TO RAISE CHILDREN MS KE'S HUSBAND PLANS TO COME BACK ONCE HE SELLS THE FAMILY'S THREEBEDROOM HOUSE IN NEW YORK MS KE'S FATHER IS UNHAPPY OVER HER CHOICE HE THINKS THAT POSTDENG THERE IS A REAL DANGER OF CHINA HAVING MASS CHAOS SAYS MS KE HE TELLS ME THAT I HAVE TO HOLD ONTO MY GREEN CARD SO IF THERE IS A CIVIL WAR WE CAN GO BACK TO THE STATES THERE ARE SIMILARITIES IN DAVID TU'S CASE ONE DAY IN DECEMBER 1966 HE AND HIS SEVEN SIBLINGS CAME HOME TO DISCOVER THAT THEIR PARENTS HAD DISAPPEARED HIS MOTHER A MEDICAL DOCTOR AND HOSPITAL DIRECTOR AND FATHER A HIGHRANKING SHANGHAI CITY OFFICIAL SPENT SEVERAL YEARS LOCKED UP FOR BEING INSUFFICIENTLY LEFTIST MR TU AGE 13 WHEN THE SCHOOLS CLOSED IN 1966 BECAME A RED GUARD HE STILL HAS FOND MEMORIES OF LOOTING AND RANSACKING THE HOUSES OF CAPITALISTS AND OTHER BAD ELEMENTS INCLUDING EVENTUALLY THE MAYOR OF SHANGHAI WE HAD A GREAT TIME I WAS TOTALLY BRAINWASHED HE SAID WHEN HIS PARENTS WERE ARRESTED MR TU WAS SURE THE GOVERNMENT WAS RIGHT TO DO SO YOU FIGURED THAT YOUR PARENTS MUST BE DOING SOMETHING WRONG TO MAO AND THE PARTY SO THEY DESERVED IT HE SAYS AFTER ROAMING THE COUNTRY WITH OTHER RED GUARDS MR TU WAS SENT TO LIVE AND WORK WITH PEASANTS OUTSIDE SHANGHAI FOR MR TU THIS WASN'T RADICAL ENOUGH SO HE ARRANGED TO GO TO A COMMUNE IN A MINORITY AREA NEAR THE NORTH VIETNAM BORDER HE WANTED TO FIGHT US IMPERIALISTS IN VIETNAM BUT WASN'T ALLOWED IN 1981 WITH THE HELP OF HIS WIFE'S AUNT IN OREGON MR TU WENT TO THE US TO FINANCE HIS EDUCATION HE WORKED AS A STRAWBERRY PICKER AND A DISHWASHER BEFORE GETTING AN MBA FROM THE UNIVERSITY OF WASHINGTON IN 1983 FOR THE NEXT FEW YEARS HE HELPED US COMPANIES PREPARE FOR BUSINESS IN CHINA THEN BECAME A CONDOMINIUM DEVELOPER IN SEATTLE IN 1986 MR TU AND HIS SECOND WIFE QI XIAOZHONG A BEIJING NATIVE WHOM HE MET IN PORTLAND ORE STARTED A TRADING COMPANY THAT EXPORTED TELECOMMUNICATIONS PARTS TO CHINA AND IMPORTED PAPER TOILET SEAT COVERS AND CHRISTMAS LIGHTS TO THE US NOW THAT THEY'VE MOVED TO SHANGHAI MR TU AND HIS WIFE HAVE FOUR JOINTVENTURE COMPANIES UNDER A HOLDING COMPANY CALLED THE CENTREX GROUP IN BEIJING THEY MANUFACTURE PAGERS IN SHANGHAI THEY MAKE TELEPHONE SWITCHES INSTALL MICROWAVE COMMUNICATIONS SYSTEMS AND MAKE FIBER OPTIC CABLE CONNECTORS MR TU IS TALKING ABOUT TAKING CENTREX PUBLIC IN THEIR SMALL OFFICE IN A HOTEL SUITE THE WALLS OF WHICH ARE DECORATED WITH POSTERS OF AMERICAN SPORTS CARS MR TU AND MS QI SIT AT ADJOINING DESKS AS EMPLOYEES RUSH IN FROM NEXT DOOR WITH MESSAGES MR TU AND MS QI WORK THE PHONES CALLING OLD FRIENDS TO SEEK THEIR HELP MANY OF MS QI'S CLASSMATES AT BEIJING UNIVERSITY ARE NOW CENTRAL GOVERNMENT BUREAUCRATS MR TU'S OLD RED GUARD BUDDIES HOLD IMPORTANT POSTS IN SHANGHAI I DON'T WANT TO BE MEDIOCRE IN AMERICAN SOCIETY SAYS MR TU CHINA IS WHERE TAIWAN WAS BEFORE THE PEOPLE WHO WENT BACK TO TAIWAN ARE NOW BILLIONAIRES 9306300117 930630 BUSINESS BRIEF ORACLE CORP PROFIT MORE THAN DOUBLED IN FISCAL FOURTH QUARTER BOOSTED BY HIGHER LICENSE SALES AND IMPROVED MARGINS ORACLE CORP'S PROFIT MORE THAN DOUBLED IN ITS FOURTH QUARTER BEATING MOST ANALYSTS' EXPECTATIONS THE REDWOOD CITY CALIF SOFTWARE CONCERN POSTED NET INCOME OF 69 MILLION OR 47 CENTS A SHARE FOR THE QUARTER ENDED MAY 31 COMPARED WITH YEAREARLIER NET OF 29 MILLION OR 20 CENTS A SHARE ANALYSTS HAD BEEN EXPECTING PERSHARE EARNINGS OF ABOUT 40 CENTS ORACLE'S FOURTHQUARTER REVENUE ROSE 31 TO A RECORD 473 MILLION IT WAS AN OUTSTANDING QUARTER SAID TERRIE MURPHY ANALYST WITH SMITH BARNEY SHE SAID ORACLE IS BENEFITING FROM THE FACT THAT MANY COMPANIES ARE DOWNSIZING BY PUTTING THEIR DATABASE SYSTEMS ON WORKSTATIONS INSTEAD OF MINICOMPUTERS OR MAINFRAME COMPUTERS IN THE FOURTH QUARTER THE COMPANY WIDENED THE AVAILABILITY OF THE NEWEST VERSION OF ITS FLAGSHIP DATABASE MANAGEMENT PRODUCT ORACLE7 THE RESULTS WERE RELEASED AFTER THE CLOSE OF OVERTHECOUNTER TRADING YESTERDAY WHERE ORACLE FELL 2375 OR 49 TO 4625 9306300116 930630 SMALL BROKERS PAN SEC PLAN ON SETTLEMENTS BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AS THE SECURITIES AND EXCHANGE COMMISSION MOVES TO SHORTEN THE TIME FOR SETTLING STOCK TRANSACTIONS SOME BROKERS ARE COMPLAINING THAT IT WILL GIVE SHORT SHRIFT TO MR AND MRS JOHN Q PUBLIC AUNT MATILDA AND A HOST OF OTHER SMALL INVESTORS UNDER CURRENT RULES INVESTORS CAN PLACE AN ORDER TO BUY OR SELL STOCKS AND ENJOY A FULL FIVE DAYS TO DELIVER A CHECK OR THE SHARES TO A BROKER THE SEC IS CONSIDERING SHORTENING THE PERIOD TO THREE DAYS IN BROKER PARLANCE THAT'S CALLED TPLUS3 FOR TRADE DAY PLUS THREE THE COMMISSION PROPOSED THE CHANGE IN FEBRUARY AND IS COLLECTING COMMENTS THROUGH TODAY A VOTE ISN'T EXPECTED BEFORE FALL AT THE EARLIEST THOUGH APPROVAL SEEMS A CERTAINTY A SHORTER SETTLEMENT CYCLE WAS ONE OF THE MAJOR REFORMS PROPOSED AFTER THE 1987 STOCK MARKET CRASH WHEN PRECIPITOUS PRICE DROPS LEFT AMPLE ROOM FOR BUYERS TO RENEGE ON PURCHASE ORDERS AFTER BETTER PRICES WERE STRUCK A SHORTER SETTLEMENT PERIOD WOULD HELP PREVENT THAT PROPONENTS CONTEND THE PROPOSAL IS BACKED BY A VARIETY OF WALL STREET PLAYERS INCLUDING CHASE MANHATTAN CORP'S CHASE MANHATTAN BANK CITICORP'S CITIBANK CHARLES SCHWAB CORP'S CHARLES SCHWAB & CO AND PIPER JAFFRAY COS BUT IN THE SCORES OF COMMENT LETTERS RECEIVED BY THE SEC SMALL STOCKBROKERS ARE RATING TPLUS3 AN FMINUS AGAIN THE WASHINGTON BUREAUCRATS ARE MESSING WITH SOMETHING THAT ISN'T BROKEN WRITES ROBERT KAPLON PRESIDENT OF KENNETH JEROME & CO OF FLORHAM PARK NJ JAMES R MERICKA PRESIDENT OF A BROKERAGE FIRM BEARING HIS NAME MAILED A ONESENTENCE MISSIVE FROM CHAGRIN BOULEVARD IN BEACHWOOD OHIO WE ARE HAVING ENOUGH TROUBLE WITH TPLUS5 NOW AMONG THE SMALL BROKERS' CONCERNS ARE RETAIL CUSTOMERS WHO INSIST ON HOLDING ONTO STOCK CERTIFICATES LETTER WRITERS ACTUALLY MENTIONED AUNT MATILDA THE PUBLICS AND NEPHEW JIMMY AMONG OTHERS UNDER A SHORTER SETTLEMENT CYCLE SUCH CUSTOMERS WILL PROBABLY HAVE TO PLACE SELL ORDERS AT BROKERS' OFFICES CERTIFICATES IN HAND MY SPIEL IN THE FUTURE WILL BE COME ON DOWN TO THE OFFICE' SAYS BROKER SENNETT KIRK OF DENTON TEXAS WHO ESTIMATES THAT 75 TO 80 OF HIS CUSTOMERS HOLD THEIR STOCK IN CERTIFICATE FORM IN AN INTERVIEW MR KIRK SAYS HIS LETTER TO THE SEC WAS A FIRST FOR HIM THE SETTLEMENT CHANGE JUST SEEMED TO ME LIKE AN ABSOLUTELY IDIOTIC THING TO DO UNDER THE FIVEDAY SETTLEMENT CYCLE SMALL BROKERS SAY THEY CAN RELY SOMEWHAT ON THE US MAIL IN THREE DAYS THEY SAY FORGET IT AFTER 65 YEARS OF SERVING SMALL CLIENTS IN EASTERN WISCONSIN IT IS INCONCEIVABLE TO ME AS TO HOW WE COULD MAIL A TRADE CONFIRMATION TO A CUSTOMER AND HAVE THAT CUSTOMER MAIL BACK A CHECK TO US IN THREE BUSINESS DAYS WRITES KONRAD TESTWUIDE OF HC DENISON CO IN SHEBOYGAN WIS POSTAL SERVICE HAS GOTTEN SLOWER NOT FASTER IN RECENT YEARS INSTITUTIONAL HOLDERS AND EVEN RETAIL CUSTOMERS WITH MONEY MARKET ACCOUNTS AT THEIR BROKERS CAN SETTLE TRADES WITH ELECTRONIC TRANSFERS ACCORDING TO SMALL BROKERS BUT WHAT ABOUT THE FARMER IN NORTH DAKOTA WHO DOES FOUR TRADES A YEAR ASKS MICHAEL FLANNIGAN PRESIDENT OF PROTECTIVE GROUP SECURITIES CORP EDEN PRAIRIE MINN SEC OFFICIALS SAY THEY ARE TAKING NOTE OF ALL THE OPPOSITION BUT SUGGEST THAT BIGGER QUESTIONS ARE AT HAND I'M VERY SYMPATHETIC TO THE CONCERNS RAISED BY SOME RETAIL FIRMS BUT I'M ALSO VERY FOCUSED ON HOW MUCH RISK WE CAN TAKE OUT OF THE SYSTEM BY SHORTENING THE SETTLEMENT CYCLE SAYS SEC COMMISSIONER J CARTER BEESE JR ONE OF THE CLEAR LESSONS WE CAN LEARN FROM 1987 IS NOTHING GOOD CAN CAN HAPPEN BETWEEN TRADE DATE AND SETTLEMENT MARY SCHAPIRO ACTING SEC CHAIRWOMAN SAYS SHE WILL CONTINUE TO INSIST THAT SHAREHOLDERS BE ALLOWED TO MAINTAIN STOCK CERTIFICATES BUT SAYS HER MIND HASN'T BEEN CHANGED THAT THIS IS A VERY IMPORTANT RISKREDUCTION MEASURE COMMISSIONER RICHARD ROBERTS SAYS HE WANTS TO GUARD THE INDIVIDUAL INVESTOR'S ACCESS TO THE MARKET OUR SYSTEM IS A LITTLE DIFFERENT AND WHATEVER STEPS WE TAKE SHOULD BE TAKEN IN A MANNER THAT DOESN'T DISCOURAGE INDIVIDUAL PARTICIPATION MR ROBERTS SAYS NO ONE WISHES TO MAKE OUR SECURITIES MARKETPLACE A PLACE WHERE INSTITUTIONAL INVESTORS ONLY ARE WELCOME SOME LETTER WRITERS ARE EXPECTING THE MOST DIRE OF CONSEQUENCES IF TPLUS3 IS APPROVED IF YOUR AIM IS TO PUT BROKERS AND MARGIN CLERKS OUT OF BUSINESS WRITES STEPHEN MOLASKY OF CHICAGO CORP I THINK YOU SHOULD INCREASE YOUR BUDGET A FEW HUNDRED MILLION DOLLARS FOR RETRAINING AND FOCUS SOME OF THE PRESIDENT'S INVESTMENT DOLLARS OUR WAY I'D LIKE TO GO TO LAW SCHOOL 9306300115 930630 BANKS COULD BE PINCHED FOR DEPOSITS TO LEND AFTER CONSUMER EXODUS BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL BANKS HAVE SUFFERED AN EPIC TWOYEAR OUTFLOW IN CONSUMER DEPOSITS THAT COULD COME BACK TO HAUNT THEM IN YEARS TO COME AS LOAN DEMAND PICKS UP AS SAVERS HAVE YANKED MONEY OUT OF LOWYIELDING CERTIFICATES OF DEPOSIT IN SEARCH OF HIGHER RETURNS IN STOCK AND BOND MUTUAL FUNDS THE POOL OF CDS UNDER 100000 HAS SHRUNK 27 IN A LITTLE MORE THAN TWO YEARS TO 848 BILLION IN MARCH THAT OUTFLOW HAS PROVIDED PLENTY OF FIREPOWER FOR THE STOCK AND BOND MARKETS BUT WHERE DOES IT LEAVE THE BANKS WITH LOAN DEMAND WEAK BANKS HAVEN'T REALLY MISSED THE MONEY YET THEY HAVE DONE FINE BY KEEPING CD RATES LOW AND FUNNELING ASSETS INTO HIGHERYIELDING TREASURY DEBT BUT THE DAY MAY COME SKEPTICS SAY WHEN BANKS WANT TO INCREASE LOAN VOLUME AND IF DEPOSITS ARE STILL A TRICKLE THAT PLAN MAY BE FOILED OPTIMISTS SUCH AS JOHN MCCOY CHAIRMAN OF BANC ONE CORP SAY BANKS CAN GET CD MONEY BACK WHEN THEY NEED IT TO MAKE LOANS SIMPLY BY RAISING DEPOSIT RATES HE ALSO BELIEVES DEMAND FOR CDS WILL GET A BOOST WHEN THE STOCK MARKET TURNS AROUND AND THE LITTLE GUY GETS KILLED OTHERS DON'T TAKE THE PROBLEM SO LIGHTLY CD RUNOFF IS A PROBLEM FOR BANKS SAYS EDWARD FURASH A FINANCIALSERVICES MANAGEMENT CONSULTANT IN WASHINGTON DC BECAUSE THESE FUNDS ARE NOT AUTOMATICALLY GOING TO COME FLOWING BACK ONCE CONSUMERS HAVE TASTED THE HEADY WINE OF OTHER INVESTMENT ALTERNATIVES AND HE DOESN'T THINK A STOCKMARKET TUMBLE WOULD SEND MONEY CASCADING BACK INTO BANKS AS EVIDENCE HE NOTES THAT AFTER THE 1987 STOCK CRASH BANKS PICKED UP ONLY A LITTLE CONSUMER DEPOSIT MONEY THE REAL QUESTION IS IN A DIFFERENT RATE ENVIRONMENT WILL BANKS BE ABLE TO GET BACK THOSE CUSTOMERS WHO WENT TO MUTUAL FUNDS WHEN THEY WANT THEM SAYS RODGIN COHEN A LAWYER WHO SPECIALIZES IN BANK MERGERS AT SULLIVAN & CROMWELL THE REAL THREAT IN THE CD RUNOFF IS TO BANKS' CUSTOMER RELATIONSHIPS SAYS INVESTMENT BANKER PHILIP DUFF WHO RUNS THE FINANCIAL INSTITUTIONS GROUP AT MORGAN STANLEY GROUP INC THOSE THAT LOSE THE RELATIONSHIP BECAUSE THEIR CD RUNS OFF AND THAT INDIVIDUAL MOVES TO DREYFUS OR PUTNAM THAT'S A RELATIONSHIP THEY MAY HAVE LOST FOREVER A FEW EXPERTS SAY THE LOSS OF SMALLSAVER CDS HAS ALREADY HURT BANK PROFITS CDS ARE AN INCREDIBLY LUCRATIVE PRODUCT FOR A BANK SAYS AMY J ERRETT CHAIRMAN OF SPECTREM GROUP A SAN FRANCISCO CONSULTING FIRM MS ERRETT SAYS BANKS CAN EARN 20 PERCENTAGE POINTS MORE ANNUALLY THAN THE RATES THEY PAY ON CONSUMER CDS BY REINVESTING AT HIGHER RATES BY COMPARISON SHE SAYS BANKS TYPICALLY CAN ONLY MAKE 075 PERCENTAGE POINTS ANNUALLY BY SELLING OR MANAGING MUTUAL FUNDS GLOOMIER ANALYSTS LED BY GEORGE SALEM OF PRUDENTIALBACHE SECURITIES INC WARN THAT BANKS' LOSS OF CORE DEPOSITS CALLS INTO QUESTION THE VIABILITY OF THEIR BASIC BUSINESS THE BOTTOM LINE OF ALL THIS IS WHETHER BANK DEPOSITS ARE BECOMING ANACHRONISTIC SAYS MR SALEM IS THIS A COMPETITIVE VEHICLE TO ATTRACT SAVINGS AND INVESTMENT FROM THE AMERICAN PUBLIC MR SALEM NOTES THAT BANKS HAVE SUSTAINED A BIG LOSS OF MARKET SHARE IN CONSUMER DEPOSITS TO MUTUAL FUNDS IN THE PAST DECADE IN 1983 THE SUM OF BANK TIME DEPOSITS AND MUTUALFUND ASSETS WAS 176 TRILLION OF WHICH THE BANKS CONTROLLED 84 BY THE FIRST QUARTER OF THIS YEAR THE TOTAL PIE HAD GROWN TO 375 TRILLION BUT THE BANKS' SHARE HAD SHRUNK TO 54 THE BULK OF THE MARKETSHARE LOSS HAS OCCURRED SINCE 1988 IN THAT PERIOD BANK CONSUMER TIME DEPOSITS HAVE GROWN A MERE 34 TO 202 TRILLION THE GROWTH OF PASSBOOK AND BANK MONEY MARKET ACCOUNTS HAS SOFTENED THE IMPACT OF CD RUNOFF MEANWHILE MUTUALFUND ASSETS HAVE MORE THAN DOUBLED TO 173 TRILLION IN ONE SENSE BANK DEPOSITS START WITH A COMPETITIVE DISADVANTAGE AGAINST OTHER INVESTMENT ALTERNATIVES NAMELY THE COST OF FEDERAL DEPOSIT INSURANCE WHICH INSURES DEPOSITS UP TO 100000 AGAINST LOSS THAT CHARGE RANGES FROM AN ANNUAL 023 OF DEPOSITS FOR THE HEALTHIEST BANKS TO 031 FOR THE WEAKEST ADD THE COSTS OF MANY BANKS' BRANCH SYSTEMS AND THE RESULT IS A STRUCTURAL HANDICAP BANK MONEY FUNDS YIELDED AN AVERAGE OF 235 FOR THE WEEK ENDED JUNE 22 MUTUAL FUNDS' VERSION YIELDED 265 A SIMILAR DIFFERENTIAL PREVAILED BETWEEN A THREEMONTH BANK CD WHICH YIELDED 247 AND A THREEMONTH TREASURY BILL THEN YIELDING 314 IT HAS BEEN EVEN MORE DIFFICULT FOR BANK CDS TO COMPETE WITH STOCK AND BOND MUTUAL FUNDS DURING THE PAST FEW YEARS WHILE SHORTTERM INTEREST RATES HAVE MELTED DOWN FROM 8 OR 9 A FEW YEARS AGO TO LESS THAN 3 NOW STOCK AND BOND MUTUAL FUNDS HAVE PERFORMED SPECTACULARLY A TYPICAL STOCK INDEX FUND HAS RETURNED 137 ANNUALLY DURING THE PAST FIVE YEARS AND A BOND FUND 108 IF MUTUAL FUNDS HAVE INVADED THE BANKS' TURF HOW ABOUT THE REVERSE SOME BANKERS SAY THEY'VE BEEN MAKING GOOD MONEY SELLING OR MANAGING MUTUAL FUNDS THEMSELVES PAMELA FLAHERTY WHO HEADS CITICORP'S EASTERN BANK BRANCH REGION SAYS HER BANK WHICH HAS AGGRESSIVELY PROMOTED MUTUALFUND SALES THROUGH ITS BRANCHES MAY BE ABLE TO MAKE MORE ON SOME MUTUALFUND SALES THAN ON CDS A MUTUALFUND SALE MAY GENERATE A FEE UP FRONT AND A MUTUAL FUND ISN'T CARRIED AS A LIABILITY ON THE BALANCE SHEET AS A CD IS PETER HOLZER DIRECTOR OF CORPORATE PLANNING AT CHASE MANHATTAN CORP SAYS CHASE CAN ALSO MAKE JUST AS MUCH MONEY SELLING ITS OWN MUTUAL FUNDS WITH A SALES CHARGE AS IT USED TO MAKE BY ISSUING CDS CHASE WHICH HAS BEEN PROMOTING SOME OF ITS VISTA STOCK FUNDS AS TOP PERFORMERS DOESN'T RELY HEAVILY ON ITS OWN BRANCH SYSTEM TO MAKE SUCH SALES BUT OF COURSE BANKS DON'T TURN EVERY DEPARTING CD INTO A MUTUALFUND SALE MR SALEM POINTS OUT THAT IT'S HARD FOR MOST BANK BRANCH EMPLOYEES TO MASTER THE WIDER UNIVERSE OF MUTUAL FUNDS AND OTHER INVESTMENTS SOME BANKERS SAY THAT MUTUALFUND SALES AREN'T AS LUCRATIVE FOR BANKS AS CDS IF WE SELL A CD FOR THREE YEARS AT 5 WE CAN GO OUT AND MAKE A CAR LOAN AT 9 AND MAKE 3 PERCENTAGE POINTS PROFIT AFTER EXPENSES SAYS MR MCCOY OF BANC ONE THE ANNUAL FEE FOR MANAGING A STOCK OR BOND MUTUAL FUND HE SAYS IS ONLY 02 TO 06 SO TO THE DEGREE THAT CUSTOMERS OPT FOR A BOND FUND WITH A 02 FEE ISN'T CD RUNOFF A THREAT TO BANKS SAYS MR MCCOY THE ANSWER IS YES SEE RELATED STORY HEARD ON THE STREET BUT AT LEAST INVESTORS ARE RETURNING WSJ JUNE 30 1993 9306300114 930630 POLITICS & POLICY AMA LAVISHLY COURTS CONGRESSIONAL STAFFERS WHO WILL AFFECT OUTCOME OF CLINTON'S HEALTH PLAN BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WHITE SULPHUR SPRINGS WVA HERE AT THE GREENBRIER THE LATE DUKE OF WINDSOR TWIRLED HIS AMERICAN BRIDE ON THE BALLROOM FLOOR PRESIDENT DWIGHT EISENHOWER SWUNG HIS CLUBS ON THESE LUSH GOLF GREENS AND CONGRESS SO FANCIED THIS SPOT THAT AT THE HEIGHT OF THE COLD WAR IT ARRANGED TO ASSEMBLE IN THE EVENT OF NUCLEAR WAR IN A BOMB SHELTER BUILT SPECIALLY DOWN BELOW THIS PAST WEEKEND THE LIST OF EMINENT VISITORS TO THE WORLDFAMOUS MOUNTAINSIDE RESORT EXPANDED COURTESY OF THE AMERICAN MEDICAL ASSOCIATION TO INCLUDE A NUMBER OF CONGRESSIONAL STAFF AIDES WHO WILL HELP SHAPE THE LEGISLATIVE OUTCOME OF PRESIDENT CLINTON'S FORTHCOMING HEALTHCARE REFORM PACKAGE AMONG THEM WERE DAVID ABERNETHY STAFF DIRECTOR FOR THE HOUSE WAYS AND MEANS HEALTH SUBCOMMITTEE AND AIDES TO BOTH DEMOCRATIC AND REPUBLICAN LAWMAKERS THE EVENT WAS BILLED AS A CONGRESSIONAL STAFF SEMINAR BUT AS WITH MOST SUCH OUTINGS THE FORMAL MEETINGS WERE STRICTLY A MORNING AFFAIR AFTERNOONS THE AIDES AND THEIR GUESTS WERE ENCOURAGED TO SAMPLE THE GREENBRIER'S PLENTIFUL AMENITIES WHICH RANGE FROM HORSEBACK RIDING TO SWIMMING SHUFFLEBOARD TENNIS AND CROQUET WE FIGURE HALF A DAY IS ABOUT THE LIMIT FOR SERIOUS DISCUSSION EXPLAINS LEE STILLWELL THE AMA'S SENIOR VICE PRESIDENT FOR GOVERNMENT AND POLITICAL AFFAIRS INTEREST GROUPS OFTEN USE POSH GETAWAYS TO WOO SENATORS AND REPRESENTATIVES BUT THE LAVISHNESS OF THE GREENBRIER AS A SETTING TO COURT CONGRESSIONAL STAFF IS EXTRAVAGANT EVEN BY WASHINGTON'S SOMEWHAT JADED STANDARDS ITS USE IN THIS CASE POINTS UP NOT ONLY CONGRESSIONAL STAFFERS' IMPORTANCE IN AFFECTING LEGISLATION BUT ALSO THE ENORMOUS STAKES IN THE COMING HEALTHCARE DEBATE THE GREENBRIER REEKS OF A COZY WEALTHY FAMILIARITY WHICH PROMOTES GOOD LISTENING' ON THE PART OF SENIOR STAFFERS SAYS ELLEN MILLER EXECUTIVE DIRECTOR OF THE CENTER FOR RESPONSIVE POLITICS A NONPROFIT WATCHDOG GROUP HOW COULD THEY NOT BE FOREVER GRATEFUL TO THE AMA FOR SUCH A WEEKEND FOR ITS NINE SPECIAL GUESTS THE AMA PAID BOTH FOOD AND LODGING FOR AS MANY AS THREE NIGHTS IT DIDN'T PAY FOR TRAVEL COSTS TO THE RESORT WHICH IS A FOURHOUR DRIVE FROM WASHINGTON THOSE WHO SUPPED IN THE GREENBRIER'S PEACHCOLORED MAIN DINING ROOM SATURDAY NIGHT COULD SAMPLE DISHES SUCH AS ROAST TOMATO DIJON PORK LOIN WITH SMOKED FRUIT AND NUT COMPOTE THYME JUS BOURSIN POLENTA AND GAUFRETTES WHILE A PIANO AND VIOLIN DUO IN EVENING WEAR PLAYED AIRS FROM BIZET'S CARMEN THIS IS THE ENVIRONMENT THAT THE AMA WORKS IN ALL THE TIME M ROY SCHWARZ THE AMA'S SENIOR VICE PRESIDENT FOR MEDICAL EDUCATION AND SCIENCE CRACKS IN A SPEECH TO THE GROUP SO YOU'RE GETTING A TASTE OF THE LIFESTYLE WE LIVE EVERY DAY THE AMA WON'T SAY HOW MUCH IT SPENT TO ENTERTAIN ITS GUESTS EXCEPT THAT IT GOT A GROUP RATE BUT THE CHEAPEST ROOM AT THE GREENBRIER COSTS 424 A NIGHT INCLUDING TAXES SERVICE FEE BREAKFAST AND DINNER BUT NOT INCLUDING LIQUOR WHILE GREENS FEES RUN 75 AND TENNIS FEES 22 AN HOUR SO A CONGRESSIONAL STAFFER WHO STAYED THE FULL THREE DAYS RECEIVED AMENITIES THAT HAD HE OR SHE PAID HIS OWN WAY WOULD LIKELY HAVE TOTALED MORE THAN 1500 AND THAT IS ASSUMING THE AIDE STAYED IN THE VERY CHEAPEST ROOMS SKIPPED LUNCH CARRIED HIS OR HER OWN GOLF CLUBS AND WAS A TEETOTALER TO BOOT CONGRESSIONAL AIDES LIKE MEMBERS OF CONGRESS ARE PERMITTED TO ACCEPT FREE HOTEL LODGING FROM A LOBBY GROUP PROVIDED IT IS CONNECTED TO A SPEAKING ENGAGEMENT OR FACTFINDING TRIP BUT UNLIKE LAWMAKERS STAFF AIDES IN MOST CASES AREN'T REQUIRED TO DISCLOSE THESE ACTIVITIES UNLESS THEIR SALARY EXCEEDS ABOUT 80000 LEAVING THE VAST MAJORITY OF AIDES FREE FROM ANY DISCLOSURE REQUIREMENTS OF THE CONGRESSIONAL AIDES WHO WENT ON THE GREENBRIER TRIP ONLY MR ABERNETHY AND LAVARNE ADDISONBURTON A DEMOCRATIC SENIOR BUDGET ANALYST ON THE HOUSE BUDGET COMMITTEE EARN MORE THAN 80000 ACCORDING TO CONGRESSIONAL RECORDS MR STILLWELL INSISTS THAT THE WEEKEND IS AN OPPORTUNITY TO PROVIDE INFORMATION AND DATA AND TO ENJOY A FREEFLOW DISCUSSION BETWEEN CONGRESSIONAL STAFFERS AND AMA OFFICIALS WE HAVE FOUND IT'S BEST TO CHANGE THE SETTING ADMITTEDLY TO A MORE RELAXED ENVIRONMENT HE SAYS BECAUSE THE EVERYDAY DISTRACTIONS YOU HAVE IN YOUR ORDINARY ENVIRONMENT ARE COUNTERPRODUCTIVE DR SCHWARZ'S SATURDAY MORNING TALK TO THE GROUP RELATES IMPORTANT BREAKTHROUGHS IN GENE THERAPY AND THE CHALLENGE POSED BY THE RISING AIDS AND TUBERCULOSIS EPIDEMICS PERIODICALLY HE PAUSES TO MAKE A POLITICAL POINT COMPLAINING ABOUT THE CLINTON ADMINISTRATION'S ATTACK ON DRUGCOMPANY PROFITS AND ABOUT CUTS IN FEDERAL FUNDING FOR MEDICAL RESEARCH THEN COMES A DISCUSSION WITH THE CONGRESSIONAL STAFFERS ON HEALTH CARE REFORM WHICH THE AMA RULES OUT OF BOUNDS TO THE PRESS BY 1230 THE MEETINGS ARE OVER AND THE PLAYTIME BEGINS MR STILLWELL AND LARRY ROSENTHAL LEGISLATIVE DIRECTOR FOR DEMOCRATIC REP DALE KILDEE OF MICHIGAN HEAD FOR THE FIRST TEE MR ABERNETHY DONS A PAIR OF BLUE SWIMMING TRUNKS AND WANDERS THE PERIPHERY OF THE SWIMMING POOL WITH TWO SMALL CHILDREN IN TOW MS ADDISONBURTON AND DAVE MCINTYRE A LEGISLATIVE AIDE TO REPUBLICAN SEN JOHN MCCAIN OF ARIZONA HEAD FOR THE TENNIS COURTS THE OTHER ATTENDEES SIMILARLY SCATTER ANDREW PATZMAN A REPUBLICAN AIDE ON THE SENATE LABOR COMMITTEE GIOIA BONMARTINI A GOP AIDE ON THE SENATE GOVERNMENTAL AFFAIRS COMMITTEE REMMEL DICKINSON A LEGISLATIVE AIDE TO VIRGINIA REPUBLICAN SEN JOHN WARNER JULIE MILLIES LEGISLATIVE AIDE TO DEMOCRATIC REP BART STUPAK OF MICHIGAN AND STACEY WINDHAM LEGISLATIVE AIDE TO REPUBLICAN REP CARLOS MOORHEAD OF CALIFORNIA MOST OF THE CONGRESSIONAL STAFFERS DECLINE TO DISCUSS THEIR ATTENDANCE FOR THE RECORD ONE WHO DOES MR ABERNETHY HAS NO MISGIVINGS ABOUT ACCEPTING THE AMA'S GENEROSITY ANYBODY WHO WOULD EVER THINK OF ME AS SLAVISHLY DEVOTED TO THE AMA WOULD BE NUTS HE SAYS I CAME I LISTENED AND I ENJOYED MYSELF MR ABERNETHY'S BOSS DEMOCRATIC REP FORTNEY PETE STARK OF CALIFORNIA HAS SCRAPPED FREQUENTLY WITH THE AMA A GROUP HE ONCE CALLED GREEDY TROGLODYTES REP STARK DID HOWEVER ACCEPT 6000 IN CAMPAIGN CONTRIBUTIONS FROM THE AMA'S POLITICAL ACTION COMMITTEE DURING THE 19911992 ELECTION CYCLE PART OF THE AMA'S NEARLY 4 MILLION IN DIRECT AND INDIRECT PAC CONTRIBUTIONS TO CONGRESSIONAL CANDIDATES DURING THIS PERIOD ANOTHER ATTENDEE WILLING TO TALK ABOUT IT IS MR MCINTYRE SEN MCCAIN'S AIDE IN A LOT OF WAYS HE SAYS AS AN AMA OFFICIAL HERDS HIM INTO DINNER WE'RE ALL A SPECIAL INTEREST WHEN IT COMES TO THE HEALTHCARE SYSTEM 9306300113 930630 BUSINESS BRIEF NAVISTAR INTERNATIONAL CORP HOLDERS APPROVE PROGRAM FOR RETIREES REVERSE SPLIT SHAREHOLDERS OF NAVISTAR INTERNATIONAL CORP CHICAGO APPROVED A RETIREE HEALTHCARE AND LIFEINSURANCE PROGRAM EXPECTED TO REDUCE THE TRUCK MAKER'S LIABILITY FOR SUCH BENEFITS TO 1 BILLION FROM 26 BILLION THE PROGRAM EFFECTIVE TOMORROW WAS NEGOTIATED WITH THE UNITED AUTO WORKERS UNION REPRESENTING RETIREES AND THEIR SPOUSES SHAREHOLDERS ALSO APPROVED A 1FOR10 REVERSE STOCK SPLIT ALSO EFFECTIVE TOMORROW WHICH WILL PARE THE NUMBER OF COMMON SHARES OUTSTANDING TO ABOUT 514 MILLION JAMES C COTTING NAVISTAR'S CHAIRMAN AND CHIEF EXECUTIVE SAID HE EXPECTS THE REVERSE SPLIT WILL SUSTAIN INVESTOR INTEREST IN NAVISTAR BY PRODUCING A STOCK PRICE THAT IS CONSISTENT WITH MARKET EXPECTATIONS FOR A COMPANY OUR SIZE 9306300112 930630 SENATE BANKING PANEL APPROVES BILL TO AID LIMITEDPARTNERSHIP INVESTORS BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AFTER TWO YEARS OF TRYING THE SENATE BANKING COMMITTEE APPROVED LEGISLATION AIMED AT PROTECTING INVESTORS IN LIMITED PARTNERSHIPS PREVIOUS EFFORTS TO PASS THE PROTECTIONS WERE STYMIED BY SEN PHIL GRAMM R TEXAS WHO SAID THE MEASURE WOULD UNFAIRLY RESTRUCTURE EXISTING CONTRACTS BETWEEN GENERAL PARTNERS AND LIMITED PARTNERS PROPONENTS INCLUDING MANY OF THE 400PLUS LAWMAKERS WHO APPROVED SIMILAR LEGISLATION IN THE HOUSE IN MARCH CONTEND THAT SOME RECENT RESTRUCTURINGS OF LIMITED PARTNERSHIPS KNOWN AS ROLLUPS HAVE DEVALUED INVESTORS' STAKES AND ENRICHED GENERAL PARTNERS THE SENATE BILL WOULD REQUIRE SPONSORS OF LIMITED PARTNERSHIPS TO PROVIDE INVESTORS WITH FULL DISCLOSURE OF ANY RISKS ASSOCIATED WITH A RESTRUCTURING THE BILL ALSO WOULD REQUIRE SPONSORS TO DISCLOSE THE NAMES OF ALL LIMITED PARTNERS ENABLING THEM TO COMMUNICATE WITH ONE ANOTHER STOCK EXCHANGES WOULD BE PROHIBITED FROM LISTING ANY PARTNERSHIP THAT HADN'T MET THE DISCLOSURE REQUIREMENTS COMMITTEE APPROVAL IS A BIG ADVANCE FOR THE BILL ITS CHANCES FOR PASSAGE ON THE SENATE FLOOR ARE GOOD BUT IT STILL MUST BE RECONCILED WITH A FAR BROADER HOUSE VERSION AMONG THE TOUGHER PROVISIONS IN THE HOUSE MEASURE IS ONE THAT WOULD BLOCK ALL ROLLUPS OF LIMITED PARTNERSHIPS UNTIL NEW RULES CAN BE HAMMERED OUT BY THE SECURITIES AND EXCHANGE COMMISSION SEN GRAMM AGREED TO THE SENATE VERSION OF THE LEGISLATION ONLY AFTER HIS DEMOCRATIC COLLEAGUES ON THE BANKING COMMITTEE AGREED TO EXEMPT CERTAIN TRANSACTIONS FROM THE PROPOSED RESTRICTIONS AMONG OTHER THINGS THE SENATE BILL WOULD ALLOW SPONSORS OF LIMITED PARTNERSHIPS TO OFFER INVESTORS STOCK IN AN EXISTING PUBLICLY TRADED COMPANY IN EXCHANGE FOR THEIR PARTNERSHIP INTERESTS SUCH A TRANSACTION WOULD BE EXEMPT FROM THE LEGISLATION'S REQUIREMENTS THAT SPONSORS GIVE LIMITED PARTNERS FULL DISCLOSURE OF RISKS THE COMPROMISE WON BY SEN GRAMM WOULD ALSO DISALLOW ANY CASH SETTLEMENTS TO LIMITED PARTNERS WHO REJECT A RESTRUCTURING THAT IS APPROVED BY 75 OR MORE OF ALL LIMITED PARTNERS THE HOUSE VERSION OF THE BILL DOESN'T CONTAIN SUCH A MEASURE DESPITE THE COMPROMISE AND HIS RESULTING VOTE SEN GRAMM SAID HE ISN'T A FULLFLEDGED BACKER OF THE BILL IF I HAD BEEN WRITING THE BILL I WOULD HAVE HAD IT APPLY ONLY TO NEW LIMITED PARTNERSHIPS HE SAID THE PARADOX IS I'VE NEVER BEEN IN A GOOD LIMITED PARTNERSHIP THE BILL NOW GOES TO THE FULL SENATE AN EARLIER VERSION OF THE LEGISLATION ATTACHED AS AN AMENDMENT TO AN UNRELATED BILL WAS APPROVED BY 87 SENATORS BUT COULDN'T BE RECONCILED WITH THE HOUSE VERSION 9306300111 930630 WHO'S NEWS KNOWLEDGEWARE SAYS HESSINGER HARDING LEFT THE COMPANY ATLANTA KNOWLEDGEWARE INC A SOFTWARE MAKER SAID TWO EXECUTIVES LEFT THE COMPANY PAUL R HESSINGER SENIOR VICE PRESIDENT OF DEVELOPMENT AND RESEARCH AND JOHN HARDING VICE PRESIDENT OF PROFESSIONAL SERVICES DEPARTED FRIDAY A SPOKESWOMAN SAID THE MOVES WERE MUTUALLY AGREED UPON BY KNOWLEDGEWARE AND THE TWO MEN SHE DECLINED TO GIVE FURTHER DETAILS BUT ADDED THAT NEITHER POSITION WOULD BE FILLED MR HESSINGER AND MR HARDING WHO HAD BOTH BEEN WITH THE FIRM LESS THAN A YEAR WERE UNAVAILABLE FOR COMMENT THE MOVES FOLLOW AN ANNOUNCEMENT LATE LAST WEEK BY THE COMPANY THAT OPERATIONS WOULD BE SUSPENDED FROM JULY 1 THROUGH JULY 9 A SPOKESWOMAN SAID PAYROLL WOULD STILL BE MADE BUT ADDED THAT EMPLOYEES WOULD BE REQUIRED TO TAKE VACATIONS DURING THE PERIOD THE EXTENDED HOLIDAY AS THE SPOKESWOMAN CHARACTERIZED IT COMES AT THE END OF KNOWLEDGEWARE'S FISCAL YEAR TRADITIONALLY A SLOW PERIOD FOR THE COMPANY SHE ADDED IN MAY KNOWLEDGEWARE REPORTED A LOSS FOR ITS FISCAL THIRD QUARTER ENDED MARCH 31 OF 30 MILLION OR 234 A SHARE INCLUDING RESTRUCTURING CHARGES OF 22 MILLION THAT COMPARED WITH YEAREARLIER NET INCOME OF 15 MILLION OR 12 CENTS A SHARE REVENUE FELL 5 TO 258 MILLION FROM 272 MILLION THE COMPANY SAID AT THE TIME THAT NEW SOURCES OF REVENUE AND REDUCED OPERATING COSTS WOULD LEAD TO A RETURN TO PROFITABILITY IN THE FOURTH QUARTER OF 1993 9306300110 930630 LEISURE & ARTS BOOKSHELF ARMS FOR DRUGS COMING OUT OF COLD WAR BY ELLIOTT ABRAMS GEORGE SMILEY WAS LUCKY THE END OF THE COLD WAR CAME WHEN HE WAS OLD ENOUGH TO PACK IT IN AND TAKE HIS PENSION BUT JOHN LE CARRE HIS CREATOR SOLDIERS ON INTO THE NEW WORLD ORDER IT ISN'T EASY AS ONE CHARACTER IN THE NIGHT MANAGER KNOPF 429 PAGES 24 MR LE CARRE'S NEW NOVEL DESCRIBES THE OLD SPIES THEY ARE NOT BAD CHAPS REX MUSTN'T BE TOO CRITICAL JUST A BIT MAROONED NO MORE THATCHER NO MORE RUSSIAN BEAR TO FIGHT COUPLE OF YEARS AGO THEY WERE TOPNOTCH COLD WARRIORS BEST SEATS IN THE CLUB ALL THAT HARD TO STOP RUNNING ONCE YOU'VE BEEN WOUND UP LIKE THAT YOU KEEP GOING NATURAL THIS TIME MR LE CARRE VENTURES INTO THE SHADY WORLD OF ARMS DEALERS AND DRUG TRAFFICKERS WE MEET THE HERO IN THE BOOK'S OPENING LINES ON A SNOWSWEPT JANUARY EVENING OF 1991 JONATHAN PINE THE ENGLISH NIGHT MANAGER OF THE HOTEL MEISTER PALACE IN ZURICH FORSOOK HIS OFFICE BEHIND THE RECEPTION DESK AND IN THE GRIP OF FEELINGS HE HAD NOT KNOWN BEFORE TOOK UP HIS POSITION IN THE LOBBY AS A PRELUDE TO EXTENDING HIS HOTEL'S WELCOME TO A DISTINGUISHED LATE ARRIVAL IT IS A WONDERFUL BEGINNING PROMISING INTRIGUE AND QUICKLY DRAWING THE READER INTO THE NARRATIVE THE THREE OPENING CHAPTERS ARE BEAUTIFULLY DONE AND INTRODUCE US TO PINE AND HIS MILITARY PAST BY CHAPTER FOUR PINE'S RECRUITMENT FOR INTELLIGENCE ACTIVITIES IS UNDERWAY THE VILLAIN IS RICHARD ONSLOW ROPER THAT LATE ARRIVAL AT THE HOTEL A VASTLY RICH BRITISH TYCOON WHOSE LEGITIMATE OPERATIONS ARE A COVER FOR HIS GLOBAL ARMS DEALS OPERATING FROM A PRIVATE ISLAND IN THE BAHAMAS ROPER IS ABOUT TO START SUPPLYING ARMS TO THE COLOMBIAN CARTELS TAKING PAYMENT IN COCAINE ONE OF HIS CRONIES HAS KILLED A WOMAN PINE LOVED AS PINE IS RECRUITED INTO THE SERVICE THE FIGHT AGAINST ROPER BECOMES A FIVESTAR UNIMPEACHABLE CAUSE AFTER PINE STAGES A KIDNAPPING OF ROPER'S SON ONLY TO HEROICALLY SAVE HIM HE WINS THE DEALER'S GRATITUDE BECOMING HIS GUEST AND CONFIDANT INSIDE ROPER'S EMPIRE IN DREAMY VILLAS AND ON OVERSIZED YACHTS PINE STRUGGLES TO AVOID DETECTION AND HURRY HOME WITH ALL HIS INFORMATION TO THE DREARY OFFICES OF WHITEHALL WHERE THE ESPIOCRATS FIGHT FOR POWER THE CONTRAST IS STARK AND THE NARRATIVE INCREASINGLY COMPELLING YET MR LE CARRE USED TO DO MORE THAN PRODUCE THRILLERS HE WAS IN A LEAGUE ABOVE KEN FOLLETT OR ROBERT LUDLUM HE WROTE ABOUT THE GREAT GAME BETWEEN THE SOVIETS AND THE WEST AND ITS STAKES INFUSED HIS STORIES AND HIS CHARACTERS WITH A SPECIAL WEIGHT THAT COLD WAR GRAVITAS IS OF COURSE MISSING HERE ROPER IS INVOLVED IN MONEY LAUNDERING GOLD EMERALDS WOOD FROM THE RAIN FORESTS ARMS AND MORE ARMS AND NOW DRUGS BUT THIS IS CRIME NOT THE FATE OF NATIONS AND THE GAMES BEING PLAYED HERE ARE NECESSARILY LESS CONSEQUENTIAL THE FUTURE OF COLOMBIA MAY HANG IN THE BALANCE BUT NOT THE FATE OF THE WEST MOREOVER MR LE CARRE KNEW BOTH SIDES IN THE COLD WAR SPY GAME INTIMATELY AND SOME OF HIS SOVIET CHARACTERS WERE AS DIMENSIONAL AS HIS BRITS HE DOES NOT KNOW THE ARMS AND DRUG DEALERS THIS WAY AND HAS WISELY LEFT THEM OFFSTAGE EXCEPT FOR ROPER A CHARACTER TOO FLAT TO BE A TRULY APPALLING VILLAIN HE IS LESS A FIEND THAN A CYNIC WORLD'S RUN BY FEAR YOU SEE HE EXPLAINS TO PINE CAN'T SELL PIPE DREAMS CAN'T RULE WITH CHARITY NO GOOD AT ALL NOT IN THE REAL WORLD IF A BUNCH OF CHAPS WANT TO MAKE WAR THEY'RE NOT GOING TO LISTEN TO A LOT OF WETEARED ABOLITIONISTS IF THEY DON'T DOESN'T MATTER WHETHER THEY'VE GOT CROSSBOWS OR STINGERS FACT OF LIFE SORRY IF IT BOTHERS YOU AS IF TO FILL THE GAP MR LE CARRE'S PORTRAYAL OF THE BRITISH AND AMERICAN ESTABLISHMENTS IS GRIMMER THAN EVER THE RIVALRY BETWEEN THE DRUG ENFORCEMENT ADMINISTRATION AND THE CENTRAL INTELLIGENCE AGENCY IS FEROCIOUS AND THE BATTLES AMONG THE BRITISH INTELLIGENCE AGENCIES ARE VICIOUS NOHOLDSBARRED AFFAIRS THAT INCLUDE BRIBERY AND MURDER THE LATTER ARE FOUGHT OUT IN A DECADENT LONDON WHERE DICKY ROPER'S MORALS ARE PREVALENT ROPER'S MONEY HAS BOUGHT HIM THE HELP OF SOME OF ENGLAND'S OLDEST AND BEST NAMES AND FOR ONE OF THE HONEST SPIES IT WAS AS IF THE VERY PAGEANTRY OF ENGLAND WAS DYING BEFORE HIS EYES ANOTHER SPY RECALLS THAT ENTERING HIS CLUB HE WOULD SPOT EMINENT MERCHANT BANKERS OR STOCKBROKERS OF HIS ACQUAINTANCE AND INSTEAD OF FLAPPING A HAND AT THEM IN CHEERY GREETING WOULD STUDY THEM FROM UNDER LOWERED BROWS ACROSS THE DINING ROOM ASKING IN HIS MIND ARE YOU ANOTHER OF THEM ARE YOU ARE YOU EVEN SO THERE ARE GOOD GUYS IN BRITISH INTELLIGENCE AND IN THE CIA AS THE STRUGGLE BETWEEN PINE AND ROPER IS MIRRORED IN THE BUREAUCRATIC WARS SOME OF THE SPIES SHOW PANACHE INTEGRITY AND DEDICATION WHICH MAKES FOR CHEERING READING ESPECIALLY GIVEN THE RATHER PAT FACEOFF BETWEEN PINE AND ROPER ABOARD A 250FOOT YACHT NOT SURPRISINGLY THE MOST INTERESTING SCENES ARE OF THE SPIES AND THEIR MASTERS CAN THE MEN WHO STOPPED THE KGB STOP THE OTHER BAD GUYS TOO MR LE CARRE HAS A BIT OF TROUBLE ADJUSTING TO THE NEW ENEMY BUT LIKE HIS SPIES HE PULLS IT OFF IN THE END MR ABRAMS WAS ASSISTANT SECRETARY OF STATE FOR INTERAMERICAN AFFAIRS IN THE REAGAN ADMINISTRATION 9306300109 930630 TECHNOLOGY RULES ARE SET FOR GRANTING BENEFITS ON AIDS VIRUS WASHINGTON THE SOCIAL SECURITY ADMINISTRATION ANNOUNCED RULES DESIGNED TO SPEED UP THE GRANTING OF DISABILITY BENEFITS TO PEOPLE INFECTED WITH THE VIRUS THAT CAUSES AIDS THE RULES ARE UPDATES OF INTERIM REGULATIONS ISSUED BY THE BUSH ADMINISTRATION IN DECEMBER 1991 THEY WERE DRAFTED BEFORE THAT ADMINISTRATION LEFT OFFICE BUT WERE HELD UNTIL CLINTON OFFICIALS COULD REVIEW THEM AS WITH THE INTERIM REGULATIONS THE NEW RULES LIST AIDSRELATED AILMENTS THAT AUTOMATICALLY QUALIFY A PERSON FOR DISABILITY PAYMENTS THE LIST INCLUDES SEVERAL GYNECOLOGICAL CONDITIONS AND SERIOUS INFECTIONS SUCH AS TUBERCULOSIS THE RULES ALSO ADD A NEW CATEGORY THAT QUALIFIES PEOPLE WHO HAVE FUNCTIONAL LIMITATIONS FROM THE HUMAN IMMUNODEFICIENCY VIRUS THAT RESTRICT THEIR ROUTINE ACTIVITIES OF DAILY LIVING OR WORK 9306300108 930630 BUSINESS BRIEF CANANDAIGUA WINE CO ACQUISITION OF BARTON INC IS COMPLETED FOR CASH STOCK CANANDAIGUA WINE CO CANANDAIGUA NY SAID IT COMPLETED THE PURCHASE OF ALL OF THE OUTSTANDING SHARES OF BARTON INC A MANUFACTURER AND DISTRIBUTOR OF ALCOHOLIC BEVERAGES A COMPANY SPOKESMAN SAID CANANDAIGUA PAID 655 MILLION IN CASH AND ONE MILLION COMMON UNREGISTERED CLASS A SHARES WHEN THE TRANSACTION CLOSED THE SPOKESMAN ALSO SAID CANANDAIGUA WILL MAKE PAYMENTS UNTIL NOV 30 1996 AMOUNTING TO 45 MILLION PROVIDED THE NEWLY ACQUIRED COMPANY MEETS CERTAIN PERFORMANCE GOALS THE SPOKESMAN WOULDN'T COMMENT ON THESE GOALS BUT SAID THE CURRENT MANAGEMENT TEAM WILL BE RETAINED IN A PRESS RELEASE CANANDAIGUA SAID THE ACQUISITION WAS FINANCED WITH A CREDIT FACILITY ARRANGED THROUGH CHASE MANHATTAN BANK 9306300107 930630 LAW JUSTICES' SHIFTING VIEWS MARK 199293 HIGHCOURT TERM RUTH GINSBURG THE SWING VOTE OF THE FUTURE BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ONE REASON PRESIDENT CLINTON CHOSE RUTH BADER GINSBURG FOR THE SUPREME COURT WAS HIS HOPE THAT IN SENSITIVE CASES SHE WOULD FORM ALLIANCES WITH THE COURT'S TROIKA OF MODERATE CONSERVATIVES BUT AS THE 199293 TERM CLATTERED TO A CLOSE THIS WEEK THE TROIKA TREMBLED IN THE SESSION'S MOST STRIKING DEVELOPMENT JUSTICE DAVID H SOUTER MIGRATED TO THE LEFT WRITING EMOTIONAL DISSENTS ON THE RIGHTS OF DISCRIMINATION VICTIMS AND THE MENTALLY RETARDED JUSTICE SANDRA DAY O'CONNOR MAINTAINED HER CAUTIOUS STYLE BUT ON SOME TOPICS SUCH AS THE DEATH PENALTY SHE APPEARED TO DRIFT IN A LIBERAL DIRECTION TOO THE TRIO'S THIRD MEMBER JUSTICE ANTHONY KENNEDY MEANWHILE RETURNED TO THE CONSERVATIVE FOLD IN CASES ON ABORTION VOTING AND CHURCHSTATE RELATIONS IF THESE PATTERNS PERSIST JUDGE GINSBURG COULD DO MORE THAN MODERATE WHAT HAD BEEN WIDELY PERCEIVED AS A SOLIDLY CONSERVATIVE COURT INSTEAD BY REPLACING THE USUALLY CONSERVATIVE BYRON WHITE WHO RETIRED THIS WEEK SHE COULD BECOME A TRUE SWING VOTE ON A COURT OTHERWISE SPLIT 44 ON SOME OF THE MOST CONTENTIOUS SOCIAL ISSUES OF THE DAY THE COURT TO BE SURE ISN'T RETURNING TO THE FREEWHEELING LIBERALISM OF THE 1960S AND EARLY 1970S BUT SUDDENLY IT APPEARS THAT THINGS COULD GET A BIT MORE UNPREDICTABLE THAN MOST PEOPLE EXPECTED WHEN MR CLINTON PICKED JUDGE GINSBURG THIS MONTH THERE ARE THESE QUESTIONS TO CONTEMPLATE IN ANTICIPATION OF HER CONFIRMATION HEARINGS WHICH BEGIN JULY 20 WILL THE WOMEN'SRIGHTS PIONEER REINFORCE JUSTICE SOUTER'S EMERGING LIBERAL STREAK MAKING POSSIBLE A MODERATETOLIBERAL BLOC THAT ALSO INCLUDES JUSTICES O'CONNOR HARRY BLACKMUN AND JOHN PAUL STEVENS OR WILL JUDGE GINSBURG KNOWN FOR HER DISPASSIONATE APPROACH ON THE FEDERAL APPELLATE BENCH HERE BEHAVE MORE LIKE JUSTICE KENNEDY WHO RESISTS THE ABSOLUTIST THEORIES OF JUSTICE ANTONIN SCALIA BUT LEANS TOWARD THE SAME CONSERVATIVE RESULTS THE ANSWERS WON'T BECOME CLEAR UNTIL JUDGE GINSBURG JOINS THE HIGH COURT ASSUMING THAT HER CONFIRMATION GOES AS SMOOTHLY AS EXPECTED IN THE MEANTIME THOUGH A REASSESSMENT OF THE INCUMBENT JUSTICES IS IN ORDER THE CRITICAL MISTAKE MANY COURT WATCHERS MADE AFTER LAST TERM WAS READING TOO MUCH INTO THE O'CONNORKENNEDYSOUTER ALIGNMENT IN DECISIONS THAT PRESERVED A LIMITED CONSTITUTIONAL RIGHT TO ABORTION AND PREVENTED MORE RELIGIOUS INFLUENCE IN PUBLIC SCHOOLS THEIRS WASN'T A CONCORD BASED ON A COHERENT PHILOSOPHY RATHER THE THREE REPUBLICANAPPOINTED MEMBERS WERE MERELY MAKING IT CLEAR THAT THEY WOULDN'T COMMIT THEMSELVES TO JUSTICE SCALIA'S VISION OF CURBING JUDICIAL AUTHORITY AND SOME CONSTITUTIONAL RIGHTS THIS TERM AS LAST THE ONLY ENTHUSIASTIC ADHERENT TO THE SCALIA AGENDA WAS JUSTICE CLARENCE THOMAS ALTHOUGH CHIEF JUSTICE WILLIAM REHNQUIST TYPICALLY VOTED FOR THE SAME RESULTS JUSTICE SOUTER IN HIS THIRD TERM ASSERTED INCREASING INDEPENDENCE NOT AS AN ADVOCATE OF CHANGE BUT AS A DEFENDER OFTEN IN DISSENT OF LIBERAL LEGAL IDEAS THAT HE IS HESITANT TO OVERTURN JUDGES OUGHT TO FOLLOW PRECEDENT HE ARGUES UNLESS THERE IS AN IRRESISTIBLE REASON TO DO OTHERWISE IF CHANGE IS ANYTHING MORE THAN INCREMENTAL IN THIS VIEW THE PUBLIC WILL LOSE WHATEVER FAITH IT HAS LEFT THAT THE JUDICIARY OPERATES SEPARATELY FROM THE HURLYBURLY OF ELECTIVE POLITICS THIS THINKING BEGAN TO EMERGE FROM JUSTICE SOUTER'S OFTENBAROQUE PROSE LAST TERM WHAT WAS NEW THIS SESSION WERE THE FLASHES OF PASSION ONE EXAMPLE CAME MONDAY IN A DISSENT FROM A RULING THAT SAID STATE OFFICIALS MAY BE VIOLATING THE CONSTITUTION WHEN THEY PURPOSELY SHAPE CONGRESSIONAL DISTRICTS SO THAT MINORITIES WILL ENJOY VOTING MAJORITIES AS LONG AS RACIAL BLOC VOTING TAKES PLACE JUSTICE SOUTER ASSERTED LEGISLATORS WILL HAVE TO TAKE RACE INTO ACCOUNT IN REDISTRICTING LAST WEEK HE DISSENTED FROM A RULING THAT MADE IT TOUGHER FOR WORKERS TO WIN JOBDISCRIMINATION SUITS THE DECISION SAID THAT EVEN IF AN EMPLOYER LIES ABOUT WHY A WORKER WAS TREATED UNFAVORABLY THAT ALONE DOESN'T ENTITLE THE WORKER TO VICTORY JUSTICE SOUTER ACCUSED THE MAJORITY OF BEING DRIVEN BY CONCERN FOR EMPLOYERS WHO ARE TOO ASHAMED TO BE HONEST IN COURT AT THE EXPENSE OF VICTIMS OF DISCRIMINATION WHO DO NOT HAPPEN TO HAVE DIRECT EVIDENCE OF DISCRIMINATORY INTENT HE AGAIN CONDEMNED THE COURT LAST WEEK FOR A SEPARATE DECISION UPHOLDING A STATE'S AUTHORITY IN INVOLUNTARY CIVIL COMMITMENT PROCEEDINGS TO GIVE MORE PROTECTION TO THE MENTALLY ILL THAN THE RETARDED JUSTICE KENNEDY EXCORIATED BY CONSERVATIVES FOR HIS ROLE IN RELIGION AND ABORTION CASES IN THE 199192 TERM HEADED BACK TO THE RIGHT THIS SESSION HE BROKE WITH JUSTICE SOUTER IN THE VOTING JOBDISCRIMINATION AND RETARDEDRIGHTS CASES JUSTICE KENNEDY ALSO VOTED WITH THE MAJORITY THIS MONTH IN A 54 RULING THAT SAID GOVERNMENT MAY PAY FOR SIGNLANGUAGE INTERPRETERS FOR DEAF STUDENTS WHO ATTEND PAROCHIAL SCHOOLS AND IN JANUARY HE VOTED WITH A SEPARATE 54 MAJORITY THAT SAID ABORTION CLINICS MAY NOT USE A RECONSTRUCTIONERA CIVILRIGHTS LAW TO SEEK COURT ORDERS CONTROLLING MILITANT PROTESTERS IN ANOTHER ONE OF LAST WEEK'S DECISIONS JUSTICE KENNEDY WROTE FOR A FIVEMEMBER MAJORITY THAT REJECTED A TEXAS DEATHROW INMATE'S APPEAL THAT THE JURY IN HIS CASE HADN'T BEEN GIVEN ENOUGH LEEWAY TO CONSIDER THAT HE WAS ONLY 19 YEARS OLD WHEN HE COMMITTED MURDER THIS PROVOKED AN ANGRY LECTURE FROM JUSTICE O'CONNOR WHO WAS JOINED BY JUSTICES SOUTER BLACKMUN AND STEVENS YOUTH SHE WROTE IS MORE THAN A CHRONOLOGICAL FACT THE EMOTIONAL AND MENTAL IMMATURITY OF YOUNG PEOPLE MAY CAUSE THEM TO RESPOND TO EVENTS IN WAYS THAT AN ADULT WOULD NOT IF THIS TERM'S FERMENT FORESHADOWS THINGS TO COME JUSTICE WHITE'S DEPARTURE COULD LEAVE THE CURRENT JUSTICES EVENLY DIVIDED ON MANY CONTROVERSIAL MATTERS HE WAS IN THE NARROW MAJORITIES IN THE DISPUTE ON PUBLIC AID FOR PAROCHIALSCHOOL STUDENTS AND THE TEXAS DEATHPENALTY APPEAL SPECULATION CAN BE PERILOUS BUT JUDGE GINSBURG MIGHT HAVE VOTED DIFFERENTLY AND CHANGED THE RESULTS A GINSBURGFORWHITE SWAP MIGHT AFFECT ABORTION RULINGS JUSTICE WHITE HAS BEEN AN UNWAVERING FOE OF CONSTITUTIONAL PROTECTION OF ABORTION JUDGE GINSBURG SUPPORTS ABORTION RIGHTS ALTHOUGH HER VIEWS ARE MARKED BY NUANCES CASES LIKELY TO COME TO THE COURT IN THE NEXT FEW YEARS WILL INVOLVE WHETHER STATE ABORTION RESTRICTIONS WHEN EXAMINED IN PRACTICE RATHER THAN IN THE ABSTRACT CREATE AN IMPERMISSIBLE UNDUE BURDEN ON WOMEN THE COURT COULD ALSO BE SPLIT ON WHETHER TO LIMIT FURTHER THE REACH OF JOBDISCRIMINATION STATUTES ON THE ONE HAND AND RACIALPREFERENCE LAWS ON THE OTHER LOOKING A LITTLE FURTHER INTO THE FUTURE THE JUSTICES ARE LIKELY BE PRESSED FROM THE RIGHT TO OVERHAUL CHURCHSTATE DOCTRINE TO ALLOW MORE PUBLIC INVOLVEMENT WITH RELIGION FROM THE LEFT WILL ALMOST CERTAINLY COME A CHALLENGE TO A 1986 DECISION WRITTEN BY JUSTICE WHITE THAT UPHELD A STATE BAN ON PRIVATE HOMOSEXUAL CONDUCT BY CONSENTING ADULTS IN ALL OF THESE AREAS JUDGE GINSBURG MAY HAVE THE CHANCE TO TIP THE BALANCE SEE RELATED ARTICLE RULINGS INCLUDE SOME VICTORIES FOR COMPANIES WSJ JUNE 30 1993 9306300106 930630 HEARD ON THE STREET BUT AT LEAST INVESTORS ARE RETURNING BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PITY THE POOR BANKS LOAN DEMAND REMAINS SLUGGISH CONSUMER DEPOSITS ARE EBBING AND INVESTORS BAILED OUT OF BANK STOCKS IN APRIL ON FEARS THAT EARNINGS COULDN'T GET ANY BETTER BUT SOME INVESTORS AND ANALYSTS ARE SAYING THE FEARS HAVE BEEN OVERBLOWN AND NOW ARE STEPPING BACK INTO BANK SHARES WITH MANY COMPANIES IN OTHER INDUSTRIES WARNING OF DISAPPOINTING SECONDQUARTER EARNINGS BANKS ARE ABOUT TO POST IMPRESSIVE GAINS THE BULLS SAY SO THE BANK STOCKS ARE ATTRACTIVE BY COMPARISON IT LOOKS LIKE THE CORRECTION IS OVER AND THE NEXT MOVE WILL BE ON THE UPSIDE SAYS ANTHONY HITSCHLER PRESIDENT OF BRANDYWINE ASSET MANAGEMENT WHICH HAS BEEN BUYING BANK SHARES DURING THEIR RECENT SETBACK WITH MANY TRIEDANDTRUE BIG STOCKS UNDER A BIG CLOUD WHETHER IT'S WALMART STORES OR MERCK MORE AND MORE MONEY IS ASKING WHERE TO GO HE SAYS DEMONSTRATED EARNINGS ARE HARD TO FIND ANY FLUFF BUILT INTO THE STOCKS HAS BEEN WRUNG OUT BY THE DEPARTURE OF THE MOMENTUM INVESTORS WHO MOVE QUICKLY IN AND OUT OF VOLATILE STOCKS THEY APPARENTLY DUMPED BANK SHARES IN APRIL AND MAY THE BULLS ARGUE AFTER RISING 15 THROUGH MIDAPRIL A KEEFE BRUYETTE & WOODS INDEX OF 24 BANK STOCKS GAVE AWAY ITS GAINS AND MORE BUT ON JUNE 7 BANK STOCKS BEGAN RECOVERING FOR THE YEAR THE INDEX IS UP 78 THROUGH MONDAY'S CLOSE ACCORDING TO KEEFE COMPARED WITH A 37 RISE FOR THE STANDARD & POOR'S 500 STOCK INDEX THE GROUP STILL LOOKS GOOD BY COMPARISON TO WHAT'S AVAILABLE OUTSIDE THE BANKING INDUSTRY SAYS JUDAH KRAUSHAAR BANKING ANALYST AT MERRILL LYNCH IF THERE WAS A FEAR FACTOR IT'S NOT GOING TO BE APPARENT ONCE THE SECOND QUARTER COMES IN SALOMON BROTHERS IS LOOKING FOR A 20 AVERAGE INCREASE IN SECONDQUARTER PERSHARE EARNINGS FOR THE 55 BANKS IT COVERS DRIVEN BY SHARPLY NARROWER RESERVES FOR BAD LOANS AND CONTINUED WIDE MARGINS BETWEEN BORROWING AND LENDING RATES SOME BANKS MIGHT NOT HAVE TO SET ASIDE ANY RESERVES AND EVEN RECAPTURE PROVISIONS THAT HAVE BEEN CHARGED OFF ACCORDING TO FIRST CALL EARNINGS ESTIMATES HAVE BEEN ON THE RISE ALMOST ACROSS THE BOARD WHILE THE SLUGGISH ECONOMY IS BAD FOR SOME COMPANIES IT ALLOWS BANKS TO KEEP THEIR PROFIT MARGINS WIDE MOREOVER THE RECENT DECLINE IN INTEREST RATES SHOULD HELP BANKS' BULGING PORTFOLIOS OF BONDS AND THE RECENT INFLATION SCARE WHICH HURT BANK STOCKS BECAUSE OF CONCERNS THAT THE FEDERAL RESERVE MIGHT HAVE TO RAISE SHORTTERM INTEREST RATES APPEARS TO BE OVER JUST YESTERDAY FEDERAL RESERVE GOVERNOR LAWRENCE LINDSEY SAID THAT OVERWHELMINGLY BANKS ARE IN PRETTY GOOD SHAPE THERE IS STILL A HIGH LIKELIHOOD OF IMPROVING EARNINGS WITHOUT TOPLINE REVENUE GROWTH SAYS DIANE GLOSSMAN OF SALOMON BROTHERS IF THE ECONOMY PICKS UP EVEN BETTER SOME BELIEVE BANK STOCKS ARE CHEAP BIG BANKS TRADE AT ABOUT 10 TIMES ESTIMATED 1993 EARNINGS COMPARED WITH ABOUT 17 TIMES EARNINGS FOR THE S&P 500 WHILE IT WILL BE A LONG TIME IF EVER BEFORE BANKS TRADE AT THE MARKET MULTIPLE THE DISCOUNT IS JUST TOO GREAT SAID BYRON WIEN INVESTMENT STRATEGIST AT MORGAN STANLEY BANKS WILL SHOW A CONSISTENT PATTERN OF IMPROVING EARNINGS THROUGH THE CYCLE MR WIEN CONTINUES TO OVERWEIGHT MORGAN STANLEY'S MODEL PORTFOLIO WITH BANKING COMPANIES WHICH MAKE UP 5 OF THE OVERALL STOCK MARKET AT 9 OF THE PORTFOLIO JUNE WAS A LOUSY MONTH FOR STOCKS AND BANKS DID WELL THAT TELLS YOU SOMETHING HE SAYS MR HITSCHLER OF BRANDYWINE TOOK ADVANTAGE OF THE RECENT FALLOFF IN BANK STOCKS TO INCREASE THE FIRM'S EXPOSURE TO THE BANKING INDUSTRY TO 10 FROM 8 PRIOR TO THE ROUT BRANDYWINE WHICH HAS 18 BILLION IN EQUITY UNDER MANAGEMENT RECENTLY PURCHASED SHARES OF CONTINENTAL BANK FIRST CHICAGO AND CHASE MANHATTAN MR HITSCHLER ALSO LIKES BANK OF NEW YORK AND BANKERS TRUST NEW YORK CHASE HAS BEGUN TO REBOUND AFTER ENDURING A NASTY SETBACK AFTER RISING TO MORE THAN 37 IN MIDAPRIL THE STOCK SANK BELOW 29 AFTER A FILING OF 22 MILLION NEW SHARES BUT CHASE INDICATED TO INVESTORS AT A ROAD SHOW FOR ITS RECENTLY COMPLETED STOCK OFFERING THAT ITS QUARTERLY LOANLOSS PROVISION WILL PROBABLY BE 10 TO 15 LOWER THAN THE 250 MILLIONAQUARTER IT PREDICTED IN APRIL TRADING AT 96 TIMES 1993 ESTIMATED EARNINGS AND 56 OF THE S&P 500 RATIO ITS SHARES ARE CONSIDERED CHEAP YESTERDAY CHASE FELL 5/8 TO 31 7/8 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE MARKET NEEDS BANK STOCKS YOU HAVE TO HAVE SOMETHING TO BE EXCITED ABOUT SAYS JOHN NEFF PORTFOLIO MANAGER OF THE WINDSOR FUND WHO HOLDS 14 OF THE FUND IN BANK SHARES HE ADDED TO HIS HOLDING THREE OR FOUR WEEKS AGO AND FAVORS NAMES SUCH AS CITICORP NOW AT 29 3/4 BANKERS TRUST TRADING AT 73 1/4 AND BANKAMERICA CURRENTLY AT 44 1/2 ONE OF THE BIGGEST FEARS ABOUT BANK EARNINGS IS DISAPPEARING PROFIT MARGINS AS THE GAP SHRINKS BETWEEN BORROWING AND LENDING RATES YES PROFIT MARGINS ARE PROBABLY PEAKING SOME BULLS CONCEDE BUT ACCORDING TO KEEFE BRUYETTE & WOODS THE AVERAGE NET INTEREST MARGIN THE PROFIT MARGIN BETWEEN BANKS' BORROWING COSTS AND LENDING RATES OF THE TOP 125 BANKS ACTUALLY WIDENED TO 473 PERCENTAGE POINTS IN THE FIRST QUARTER UP FROM 467 PERCENTAGE POINTS AT THE END OF 1992 BANKS HAVE BEEN TELLING WALL STREET THE SECONDQUARTER MARGINS WILL BE ABOUT THE SAME BUT EVEN IF THEY SHRINK THEY'RE STILL COMING OFF AN HISTORICALLY WIDE BASE THE THREEPERCENTAGEPOINT MARGIN BETWEEN THE PRIME LENDING RATE AND THE FEDERAL FUNDS RATE COMPARES WITH A 170PERCENTAGEPOINT AVERAGE FROM 1983 TO 1990 ACCORDING TO MOODY'S INVESTORS SERVICE MOREOVER MANY BANKS HAVE HEDGED THEIR INTEREST RATE RISK AND LOCKED IN THEIR NET INTEREST INCOME FOR 1993 EARNINGS ARE NOT AS SENSITIVE TO INTEREST RATES AS 10 OR 15 YEARS AGO BUT INVESTORS ARE TREATING THEM AS SUCH SAYS MS GLOSSMAN OF SALOMON WHO LIKES CITICORP FIRST UNION FIRST OF AMERICA AND CHASE AMONG OTHERS MOREOVER THE COMPOSITION OF BANKS' MARGINS IS CHANGING IN 1982 55 OF BANKS' NET INTEREST INCOME CAME FROM COMMERCIAL LOANS WHILE 45 CAME FROM HIGHERYIELDING CONSUMER LOANS NOW AROUND 60 OF INTEREST INCOME COMES FROM CONSUMER LENDING ACCORDING TO A STUDY BY FIRST CORP THAT'S GOOD NEWS FOR THE INDUSTRY SINCE THESE LOANS ARE HIGHERYIELDING REQUIRE LESS CAPITAL AND OFTEN COME WITH HEFTY FEE INCOME TO BE SURE THE BULK OF THE BANKSTOCK BULL RIDE WHICH BEGAN IN OCTOBER 1990 IS PROBABLY COMING TO AN END NO LONGER CAN INVESTORS THROW DARTS AT A PAGE OF BANK STOCKS AND EXPECT TO EARN DOUBLEDIGIT RETURNS DESPITE CONSOLIDATION THE REVENUE PIE HAS STOPPED EXPANDING WHICH MEANS BANKS WILL BE FEEDING OFF EACH OTHER SOME ON WALL STREET SUCH AS GEORGE SALEM OF PRUDENTIAL SECURITIES BELIEVE IT'S TIME TO BAIL OUT BECAUSE THE INDUSTRY ISN'T COMPETITIVE WITH THE REST OF THE FINANCIAL SERVICES BUSINESS BUT FOR SOME ON WALL STREET THAT MEANS SELECTING THE HUNTERS RATHER THAN THE HUNTED MERRILL'S MR KRAUSHAAR RECOMMENDS INVESTORS BUY BANKS WITH CONSISTENT REVENUE GROWTH AND COST CONTAINMENT PROFITABLE BUSINESS NICHES AND STRONG MARKET SHARE PENETRATION HE LIKES MELLON BANK BANKAMERICA NATIONAL CITY AND FLEET FINANCIAL GROUP AND THE TAKEOVER GAME WILL CONTINUE AS BANKS SEARCH FOR LOST REVENUE THROUGH ACQUISITIONS ONE KEY QUESTION FOR THE SECOND HALF OF 1993 AND 1994 IS WHETHER LOAN DEMAND WILL EVER TURN AROUND EACH TIME LOAN GROWTH PICKS UP IT APPEARS TO SPUTTER A HOPEFUL SIGN COMES FROM KEEFE BRUYETTE WHICH RECENTLY SURVEYED 125 BANKS AND FOUND THAT MORE THAN 50 WERE EXPECTING MODEST LOAN GROWTH IN THE SECOND QUARTER COMPARED WITH THE FIRST WHILE ONLY 17 WERE LOOKING FOR DECLINES MR HITSCHLER BELIEVES THAT A THIRD LEG OF THE BANKSTOCK RALLY WILL BE FUELED BY A PICKUP IN LOAN ACTIVITY IT'S JUST THE BEGINNING HE SAYS EARNINGS SHOULD CONTINUE FOR WHO KNOWS HOW LONG SCRATCHING YOUR HEAD ABOUT WHY MONEY MANAGER MICHAEL STEINHARDT JUST BOUGHT A UNION NJ DAIRY TUSCAN DAIRY FARMS PUZZLE NO MORE PEOPLE WHO KNOW MR STEINHARDT SAY HE HAS A REAL SOFT SPOT FOR INVESTMENTS WITH LEGS SO TO SPEAK AT HIS FARM IN BEDFORD NY STEINHARDT HAS ACCUMLATED A COLLECTION OF BOTH DOMESTIC AND WILD CREATURES FROM DUCKS AND PIGS TO ZEBRAS AND LLAMAS IF YOU HAVE TO BE AN ANIMAL IN CAPTIVITY IT'S NOT A BAD WAY TO GO SAYS A FRIEND OF MR STEINHARDT'S WHO SAYS THE GROUNDS WHERE THE ANIMALS ARE KEPT ARE HUGE MR STEINHARDT APPARENTLY VISITS HIS FOURLEGGED FRIENDS OFTEN AND KNOWS MOST OF THEM BY NAME YOU SHOULD SEE IT HE CALLS THEM BY NAME AND THEY COME UP TO HIM MAYBE THEY ARE HOPING FOR SOME INVESTMENT TIPS SEE RELATED STORY BANKS COULD BE PINCHED FOR DEPOSITS TO LEND AFTER CONSUMER EXODUS WSJ JUNE 30 1993 9306300105 930630 LETTERS TO THE EDITOR LIGHTING THE WAY TO OFFICE EFFICIENCY IN REGARD TO EDITH WEINER'S JUNE 14 MANAGER'S JOURNAL THE DOLLARS AND SCENTS OF OFFICE BIOLOGY I FEEL THAT READERS WERE LEFT WITH THE IMPRESSION THAT ENERGYEFFICIENT LIGHTING NECESSARILY REDUCES WORKER PRODUCTIVITY SOUTHERN CALIFORNIA EDISON SCE HAS FOUND THAT APPROPRIATE ENERGYEFFICIENT LIGHTING WHEN INSTALLED AND OPERATED PROPERLY HANCE WORKER PRODUCTIVITY LOWER ELECTRIC BILLS CONSERVE NATURAL RESOURCES AND REDUCE AIR POLLUTION IN SCE'S SAN DIMAS FACILITY FOR INSTANCE EXISTING LIGHTING WAS REDUCED FROM 25 WATTS PER SQUARE FOOT TO 09 WATTS PER SQUARE FOOT A 64 LIGHTINGPOWER DENSITY IMPROVEMENT BY STUDYING THE BUILDING AND THE TYPE OF TASKS REQUIRED WE WERE ABLE TO OBTAIN THE SAME OR BETTER QUALITY OF LIGHT ON WORK SURFACES USING FAR LESS ENERGY SCE HAS FOUND THAT SUCCESSFUL ENERGYEFFICIENT LIGHTING STRATEGIES INVARIABLY INCLUDE TASKORIENTED ANALYSES KEEPING THE FOCUS ON HUMANRESOURCE NEEDS AND PRODUCTIVITY AS WELL AS ENERGY SAVINGS